The Longshoremen’s work slowdown that snarled West Coast ports for nine months is over, leaving behind bitter memories and billions in economic damage. But global trends foreshadowing that port disruption remain.
Big container ships are coming to state ports and they are behemoths. Stand one upright and it would be taller than the Empire State Building.
A decade ago, the world’s largest container ship sailing into the ports of Seattle and Tacoma carried 9,600 20-foot containers – enough to hold 1.3 million color TVs or 50 million cellphones. Today’s ships carry nearly 20,000 containers.
The widening of the Panama Canal will make these mammoth vessels even more attractive to shippers looking to save fuel and cut costs. But their massive size requires deeper moorages and docks capable of unloading containers quicker. That means automation. Ports must install larger cranes and state-of-the art computerized cargo handling systems.
Today’s benchmark is the world’s most efficient port in the United Arab Emirates, which moves an average of 138 containers per ship, per hour. Comparatively, the Port of Los Angeles moves 80 per hour. The difference is port officials at Jebel Ali invested heavily in automation and technology to serve the megaships, including a new $850 million container terminal.
The ports of Tacoma and Seattle are the third-largest container gateway in North America. Martin Associates estimates the two ports’ marine cargo operations supported more than 48,000 jobs in 2013, generating nearly $4.3 billion in economic activity. If the farmers and manufacturers who ship products through those ports are factored in, port activities impact 443,000 jobs in our state.
For them to compete in the years ahead, our Legislature authorized the ports of Seattle and Tacoma to form a port development authority. The authority will allow them to rebuild docks and invest in advanced technology.
Other states have formed those development authorities. The Georgia Ports Authority, which owns and operates the Port of Savannah, is spending $1.5 billion over the next decade to install taller cranes, add storage capacity and invest in a cutting-edge computer system that connects trucks with containers much quicker.
Georgia is spending another $120 million on road improvements near the port. Washington needs to make the same type of investments.
While much of the focus is on container traffic, there is another subtle shift occurring. There is an increase in shipments of bulk cargos – wheat, potash, coal and petroleum products – where the competition even pits smaller Washington ports such as Vancouver, Longview and Bellingham against nearby British Columbia.
Greater amounts of cleaner American coal will be coming through Washington. They will be shipped either from Vancouver, B.C., or loaded on ships at Cherry Point or Longview.
Port activities generate 194,000 jobs in our state. Whether we enhance or lose those jobs depends on how we prepare.
The big ships are coming. The question is, will they dock in Seattle or Tacoma or head north to Canada or pass us by sailing through the Panama Canal to U.S. ports on the Gulf of Mexico and the Atlantic seaboard?
Don C. Brunell is a business analyst, writer and columnist. He can be contacted at theBrunells@msn.com.