World Trade - February 2009 - (Page 26)

SUPPLY CHAIN to a drop-off in ‘green’ initiatives undertaken by the also shorter than from the West Coast to the Midwest. White says the Baltimore region has another advan- transportation and maritime sectors, but that hasn’t tage—it’s the fourth largest consumer market in the U.S. been the case. In fact, port executives say green initiatives are key to sustainable growth and development. and one of the most afﬂuent. Last April, Maryland Governor Martin O’Malley and Not only are the ports expecting big things from the Panama Canal expansion, the increase in business other ofﬁcials broke ground on the Masonville Cove will also beneﬁt other supply chain service providers. Environmental Center. The center is part of a $153 “The Panama Canal expansion will deﬁnitely beneﬁt million restoration project that will transform one of East Coast ports, and this will in turn beneﬁt Pitt Ohio Baltimore Harbor’s most contaminated sites into an Express in the years to come,” says Geoffrey Muessig, area that will beneﬁt wildlife, local residents, and the CMO and Executive Vice President of the Pittsburgh, port industry. Already, about 30,000 tons of trash and debris have been removed, with about 10,000 addiPA-based LTL carrier (www.pittohio.com). In the meantime, Pitt Ohio is staying focused on the tional tons yet to be cleared. Some of the debris dates fundamentals, says Muessig. “What we’re doing on a back to more than a century to the Great Baltimore day-to-day basis is managing our operating costs as Fire of 1904. The debris ranges from nearly 200,000 gallons of petroleum-tainted water, closely as possible. That’s the ﬁrst to timber and concrete rubble. piece of our strategy. And in contrast There are also 25 abandoned vesto many other carriers out there, “The carriers that sels located in the water at the site, we’re not taking on a defensive poswhich was the former home of Kurt ture; we’re trying to grow the entercan ﬁnd ways to Iron and Metal and Maryland Shipprise by succession.” building and Drydock Company. “We have a truckload division, diversify their “Our Governor is very proECM Transport, and we think service offerings environment,” says White. “He’s there’s great potential to grow that urging us to move forward on a business,” Muessig says. “ECM have the best program to install solar panels on Transport specializes in regional some of our sheds. We have a lot of truckload, which is a nice complechance of lasting sheds on our terminals, probably ment to our regional mid-Atlantic about 2 million square feet of roof LTL service.” this out.” space.” Pitt Ohio is also one of the six For its part, the Port Authority founding members of the Reliance of New York and New Jersey has Network, launched last March, which also includes Averitt Express, Canadian Freight- announced a goal to achieve carbon-neutral operaways/Epic Express, DATS, Land Air Express, and tions at its facilities by 2010, says Bill Nurthen, GenLakeville Motor Express. The grouping provides seam- eral Manager, Program Support and Performance less, nationwide, LTL, truckload, and supply chain Management. Moreover, the Port aims to reduce its greenhouse gas emissions by 80 percent by 2050. freight services. “We’re also looking at developing a less-than-con- “We’re on track to meet that goal,” reports Nurthen. tainer (LCL) service out of the mid-Atlantic ports, and Some of the measures the Port is taking include the we’re partnering with Averitt Express on their LCL installation of shore-power for vessels as well as a service out of Asia,” explains Muessig. Last July, Averitt fuel-switching initiative for ocean-going vessels. Port rolled out the ﬁrst phase of its Asia-Memphis Express officials are also looking to reduce greenhouse gas with an LCL service focused on freight originating in emissions from cargo handling equipment and rail Shanghai and Shenzhen. In November, the service was switching locomotives. This past summer, the Virginia Port Authority (VPA) expanded with the addition of two new origin points, Hong Kong and South China (Shenzhen/Yantian port). obtained federal funds to help purchase three hybrid yard switchers for on-dock rail operations at Norfolk More origin ports will be added in the future. Muessig says that the longer the recession lasts, the International Terminals. The switchers will reduce higher the likelihood that more trucking companies will nitrogen oxide and particulate matter emissions at the go out of business. However, “The carriers that can ﬁnd terminals by 80 percent to 90 percent, and cut annual ways to diversify their service offerings have the best fuel costs by $143,000, according to the VPA. One of the three hybrid yard switchers has already chance of lasting this out,” he advises. Providing value to the customer is also very important, he adds. “Ninety- been put into operation, while the remaining two will be nine percent of our shipments are delivered intact, with- delivered soon, says Harris. So far, the one unit has really out any damages, shortages, or overages. We also have a paid off. “The old model that it replaced burned about 120 gallons of fuel a day,” Harris says, while the new unit 97 percent plus on-time delivery record.” uses about the same amount of fuel over 8 days. WT Green is a good thing, even in a down economy For reprints of this article, please contact Cindy Williams at williamsc@bnpmedia.com or 610-436-4220 ext. 8516. There has been some worry, especially among environmentalists, that the slowing economy would correlate 26 WORLD TRADE FEBRUARY 2009 http://www.pittohio.com

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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