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Released May 24, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite varying levels of shipping containers moving through cargo ports across the U.S., expansion projects at the nation's docks are heating up. Industrial Info is tracking $13.25 billion in active projects at U.S. cargo ports that fall within Industrial Info's assessment of having a high or medium probability of moving forward as planned, more than half of which is attributed to expansion projects.
The ports of Los Angeles and Long Beach, which handle about 40% of all cargo containers entering the U.S., saw their April container activity drop 22% and 20% year-over-year, respectively, due to a variety of factors. Still, Industrial Info is tracking $1.1 billion in active projects at the two ports, including the multi-phase construction of Long Beach's new Pier B On-Dock Rail Support Facility, which is intended to double the port's capacity to handle cargo by train.
The first rail work is expected to kick off later this year, with the entire facility completed by 2032. The $200 million Phase 1 involves the initial rail work on the first arrival, departure, and storage tracks; construction on a related $95 million Phase 1A to relocate utilities already is underway. The $300 million Phase 2 entails constructing new track, among other work, and the $300 million Phase 3 involves constructing additional track on the west side of the port. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to see related project reports.
One of the major factors that contributed to the decrease in April container activity at the two major ports is prolonged labor negotiations between the Pacific Maritime Association (PMA) and International Longshore and Warehouse Union (ILWU); the contract lapsed in June 2022. The ILWU represents dockworkers primarily on the West Coast, Hawaii and in British Columbia, Canada, and the PMA represents shipping companies and port terminal operators. In February, the two parties released a statement saying negotiations on a new collective bargaining agreement were still ongoing, despite reaching a "tentative agreement on certain key issues."
"A cooling global economy, warehouses laden with aging inventory and prolonged West Coast labor negotiations have all contributed to a slowdown in trade," said Gene Seroka, executive director of the Port of Los Angeles, in a press release. "If economic conditions improve and we get a labor deal in place, that will help improve volume the second half of the year." Meanwhile, the Port of Long Beach pointed to additional reasons for its dip in container activity, saying in a press release that consumers continue to limit their purchases and, more importantly, shippers continue to move trade away from the West Coast to seaports on the East and Gulf coasts.
One of the Gulf Coast ports benefiting from the issues on the West Coast is the Georgia Port Authority's (GPA) Port of Savannah, which, according to the GPA, is the closest and fastest port (by rail) to major cities such as Atlanta, Georgia; Birmingham, Alabama; Charlotte, North Carolina; Memphis, Tennessee; and Orlando, Florida. The Port of Savannah handled record cargo volumes of 3.8 million twenty-foot equivalent units (TEUs) for the fiscal year from July 2022 to February 2023; in comparison, volumes dropped 43% year-over-year at the Port of Los Angeles in February.
Industrial Info is tracking a $200 million Phase 2 expansion of the Port of Savannah's Garden City Terminal West, which kicked off last year. The project entails constructing 100 new acres of container storage, with an in/out gate complex, which will add 1 million TEUs of annual capacity. Also underway is the construction and installation of seven new refrigerated container racks. Subscribers can see reports on the Garden City terminal and rack expansion projects.
Another expansion project is underway at Alabama's deepwater Port of Mobile. The $365.7 million deepening and widening project involves enlarging the existing 45-foot-deep and 400-foot-wide channel to 50 and 500 feet, respectively. When complete, the project would allow the channel to handle Neo-Panamax ships that carry up to 14,000 TEUs. Subscribers can click here for more information.
Another Gulf Coast port, Port Houston, is home to a $1 billion project to expand the Houston Ship Channel. Last month, the port announced it completed the project's first segment. For more information on the project and the port's other capital-spending plans, see Industrial Info's April 21, 2023, article - Port Houston's Ship Channel Expansion Project Ramps Up.
Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active U.S. cargo port projects that fall within Industrial Info's assessment of having a high or medium probability of moving forward as planned.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The ports of Los Angeles and Long Beach, which handle about 40% of all cargo containers entering the U.S., saw their April container activity drop 22% and 20% year-over-year, respectively, due to a variety of factors. Still, Industrial Info is tracking $1.1 billion in active projects at the two ports, including the multi-phase construction of Long Beach's new Pier B On-Dock Rail Support Facility, which is intended to double the port's capacity to handle cargo by train.
The first rail work is expected to kick off later this year, with the entire facility completed by 2032. The $200 million Phase 1 involves the initial rail work on the first arrival, departure, and storage tracks; construction on a related $95 million Phase 1A to relocate utilities already is underway. The $300 million Phase 2 entails constructing new track, among other work, and the $300 million Phase 3 involves constructing additional track on the west side of the port. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to see related project reports.
One of the major factors that contributed to the decrease in April container activity at the two major ports is prolonged labor negotiations between the Pacific Maritime Association (PMA) and International Longshore and Warehouse Union (ILWU); the contract lapsed in June 2022. The ILWU represents dockworkers primarily on the West Coast, Hawaii and in British Columbia, Canada, and the PMA represents shipping companies and port terminal operators. In February, the two parties released a statement saying negotiations on a new collective bargaining agreement were still ongoing, despite reaching a "tentative agreement on certain key issues."
"A cooling global economy, warehouses laden with aging inventory and prolonged West Coast labor negotiations have all contributed to a slowdown in trade," said Gene Seroka, executive director of the Port of Los Angeles, in a press release. "If economic conditions improve and we get a labor deal in place, that will help improve volume the second half of the year." Meanwhile, the Port of Long Beach pointed to additional reasons for its dip in container activity, saying in a press release that consumers continue to limit their purchases and, more importantly, shippers continue to move trade away from the West Coast to seaports on the East and Gulf coasts.
One of the Gulf Coast ports benefiting from the issues on the West Coast is the Georgia Port Authority's (GPA) Port of Savannah, which, according to the GPA, is the closest and fastest port (by rail) to major cities such as Atlanta, Georgia; Birmingham, Alabama; Charlotte, North Carolina; Memphis, Tennessee; and Orlando, Florida. The Port of Savannah handled record cargo volumes of 3.8 million twenty-foot equivalent units (TEUs) for the fiscal year from July 2022 to February 2023; in comparison, volumes dropped 43% year-over-year at the Port of Los Angeles in February.
Industrial Info is tracking a $200 million Phase 2 expansion of the Port of Savannah's Garden City Terminal West, which kicked off last year. The project entails constructing 100 new acres of container storage, with an in/out gate complex, which will add 1 million TEUs of annual capacity. Also underway is the construction and installation of seven new refrigerated container racks. Subscribers can see reports on the Garden City terminal and rack expansion projects.
Another expansion project is underway at Alabama's deepwater Port of Mobile. The $365.7 million deepening and widening project involves enlarging the existing 45-foot-deep and 400-foot-wide channel to 50 and 500 feet, respectively. When complete, the project would allow the channel to handle Neo-Panamax ships that carry up to 14,000 TEUs. Subscribers can click here for more information.
Another Gulf Coast port, Port Houston, is home to a $1 billion project to expand the Houston Ship Channel. Last month, the port announced it completed the project's first segment. For more information on the project and the port's other capital-spending plans, see Industrial Info's April 21, 2023, article - Port Houston's Ship Channel Expansion Project Ramps Up.
Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active U.S. cargo port projects that fall within Industrial Info's assessment of having a high or medium probability of moving forward as planned.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
