World Trade - February 2009 - (Page 24)

SUPPLY CHAIN Port of New York/New Jersey will continue to grow in the future. “Maybe not at the double-digit pace as it has in the past,” says the Port of New York/New Jersey’s Zantal, “but it will deﬁnitely grow and we have to be prepared to meet that growth.” Indeed, when the expansion of the Panama Canal is completed in 2014, it’s likely that the worst of the global economic crisis will have run its course. Good timing, to say the least. “The Panama Canal expansion is a bright spot,” remarks Zantal. “It will deﬁnitely have a positive impact on the Port of New York/New Jersey. We’ve already been seeing larger vessels transiting the Suez Canal, but certainly when the Panama Canal project is completed, we’ll see even more all-water services.” Once the project is completed, post-Panamax container ships (those handling up to 12,000 TEUs) will be able to transit the Canal. Currently, only container ships that can hold up to about 5,000 TEUs can make it through. The Port of Virginia is well positioned to handle the anticipated increase in all-water service from Asia that will come with the Canal expansion, says Harris. The Port has some of the deepest water on the East Coast, which is needed to accommodate the larger container 24 WORLD TRADE FEBRUARY 2009 ships. “In addition to our 50-foot channels, we don’t have any overhead obstructions, such as bridges,” he says. The Port also has federal authorization to dredge to 55 feet if necessary, according to Harris. Norfolk Southern Railway’s Heartland Corridor project will also boost the Port’s service offerings when it’s completed in 2010. The project will expedite doublestack freight trains from Norfolk, Virginia to Columbus, Ohio (Rickenbacker Intermodal Terminal), and on to Chicago—vital markets for the Port of Virginia. “We’ve got the crane infrastructure, dock infrastructure, the depth, and rail infrastructure,” sums up Harris. “All of these things will help us to capture more cargo from the Panama Canal while also helping us to grow our Suez Canal trafﬁc,” he says. At the Port of Baltimore, Evergreen provides direct all-water service from the Far East. However, there are high expectations in Baltimore, too, about the Canal expansion. “It costs about $2000 to move a container discharged on the West Coast to the East Coast,” says White. “Once the Canal is widened and made deeper, an 8,000-TEU ship can move all-water to Baltimore, then it’s a local truck move of about $125 to $150.” He adds that the transit time from the East Coast to Midwest is

Table of Contents Feed for the Digital Edition of World Trade - February 2009

World Trade - February 2009 Contents Taking Stock in America Confronting Corruption in Latin America Supply Chain Watch Tradewinds Where's the Goods? Where's the Money? Hope on the Horizon Managing Fleets in Turbulent Times The Impact of China's Economic Slowdown on U.S. Supply Chains The Fuel Volatile Supply Chain Getting the Most from On-the-Fly Transactions Managing Supply Chain Risk by Managing China Sourcing Capacity OECD Global Economic Outlook for 2009 'Natural' Agricultural Monopolies No More

World Trade - February 2009

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