Selling Port of LA short

By Patrick Burnson, Executive Editor
August 08, 2011 - LM Editorial

Shippers concerned about the viability of the Port of Los Angeles in the 21st Century are advised to read two compelling arguments recently posted on mainstream political sites.

Joel Kotkin, a Distinguished Presidential Fellow at Chapman University in Orange County and an adjunct fellow with the Legatum Institute in London, writes in City Journal that time may be running out for LA.

In “Lost Angeles: The City of Angeles Goes To Hell,” he notes that business-strangling regulations proliferate, thereby posing a severe threat to the ongoing dominance of the city-run port:

“Many of these originate with the environmental movement, which [Mayor] Villaraigosa and other Democrats count on for political support and media validation. The city has tried repeatedly to control emissions at the port from ships and trucks, for example. Also harmful are various labor-friendly regulations, such as the city’s effort to expand unions’ presence from the docks to the entire network of trucks serving the port—essentially forcing out independent carriers, many of them Latino entrepreneurs, in favor of larger firms using Teamster drivers.”

John R. McLaurin, President of the Pacific Merchant Shipping Association, writes in a similar vein about the state in general for Fox & Hounds Daily. In his opinion piece, “Lt. Governor’s Proposal – It’s time to move forward,” he observes that because of California’s inability to build major infrastructure projects, California’s role as a gateway for trade is threatened as alternative gateways are being developed throughout North America:

“Nowhere is this more self-evident than in Southern California where it took over 15 years from inception to completion just to finalize an environmental review and associated permits to modernize an existing marine terminal.  While regulators were dickering, during that same time period cargo terminals were conceived, planned, permitted, constructed and operational in States like Florida, Texas, Washington, Alabama, Virginia and in British Columbia, Canada.  Expansion of the Panama Canal went from concept to a massive multi-billion dollar project on the verge of completion.”

Readers of LM are all too aware of this ongoing threat, and will be making their future shipping and sourcing decisions accordingly.



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

Disruptions at West Coast ports, which were resolved at the end of February, may have distorted the numbers

Growth firmly remains in the cards for both the manufacturing and non-manufacturing sectors in 2015. That was the main takeaway from the December 2014 Semiannual Economic Forecast from the Institute for Supply Management (ISM), which, in many ways, picked up where its companion Spring 2014 report published last April left off.

First quarter revenue of $1.776 billion was down 4.8 percent annually but up 4.6 percent in constant currency. And adjusted EBITDA at $51 million saw an 18.6 percent annual gain, with a 23.3 percent increase in constant currency.

Heading into 2015, the intermodal sector was faced with the same challenges it had exiting 2014, namely the West Coast port labor disruption and harsh winter weather. But even with these obstacles volumes still managed to show overall growth on an annual basis, according to the most recent edition of the Intermodal Market Trends & Statistics Report from the Intermodal Association of North America (IANA).

Forget cost cutting. Innovation and sustainability are the most important factors in business today. The companies that get it right can still win in a flat economy, says ISM CEO Tom Derry.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

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