Panama Canal preparations under full sail

The Panama Canal expansion - expected to be complete by 2014 - has seaports throughout the hemisphere readying for a new competitive landscape. For most, that means offering value-added services designed to move inbound goods faster than ever before. Here’s where the preparations currently stand.
image

The Expansion of the Panama Canal (Third Set of Locks Project) is a project, proposed by the Panama Canal Authority (ACP), that will double the capacity of the Panama Canal by 2014 by allowing more and larger ships to transit.

By Patrick Burnson, Executive Editor
February 24, 2011 - LM Editorial

Anderson adds that the Ports of Los Angeles and Long Beach need to act quickly before ports elsewhere use the current reputation of the southern California ports to shift the focus of Asian import trade from the West Coast to other ports in the U.S., Mexico, and Canada. “Although West Coast ports handled nearly 70 percent of the traffic coming from Asia until recently, the reanalysis away from Southern California ports will gain because of the widening of the Panama Canal,” adds Anderson.

At the same time, say many analysts, a new parity is emerging among all North American ports—an unforeseen consequence of new investment in infrastructure and services.

Cross-cultural agreements
By all observation, the West Coast ports and their service stakeholders have been on the same page when it comes to enhancing services. At the Port of Oakland, for example, the focus has been on enhancing warehousing and logistics facilities and creating seamless cold chain services for U.S. companies exporting their perishable products to China.

“China is a significant and rapidly growing market for U.S. food and agriculture products, but the lack of cold chain services is inhibiting the export potential,” says Omar Benjamin, the port’s executive director. “Our initiatives will help make it easier, safer, and faster to export U.S. commodities from California and distribute them throughout China.”

Late last year, Oakland and China Merchants Holdings International Company Limited (CMHI) entered into an agreement to strategically market and develop supply chain solutions for U.S. exports, particularly agricultural commodities and perishable products. CMHI is a leading public port operator in China with a strategic network of ports in China’s coastal regions. “The form and scale of this partnership is a first for the U.S. port industry,” says Benjamin.

Oakland’s Pacific Rim neighbor in the far reaches of British Columbia has a similar strategic service agreement, signed by Canada’s Prince Rupert Port Authority (PRPA) and Maher Terminals Holding Corp. recently.

Their “Level of Service Agreement” is designed to promote and better measure improvements in port performance and to enhance Prince Rupert’s role as a preferred gateway on the West Coast for Central Canada and U.S. Midwest markets. It establishes performance targets, customer service measures, and productivity indicators to improve the flow of containers through the Prince Rupert gateway, including specific times for unloading and loading containers between vessels and rail cars, dwell times at the terminal, and Canadian National (CN) transit times to markets in Canada and the U.S.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA