colliers north american port analysis

7/31/2019 Colliers North American Port Analysis

1/13www.colliers.com/reseArcH |

North AmericAN Port ANAlysis | white paper | august 2012colliers international | white PAPer

Key Takeaways

The expansion o the Panama Canal to accommodate vessels capable o carrying up to

12,500 containers will alter global trade routes, and is already promoting the advance-

ment o the science o logistics.

Four East Coast ports will be ready to handle post-Panamax ships by 2015: Baltimore (2013)

Miami (2014), New York (2015) and Norolk (ready).

Four West Coast ports are already post-Panamax ready: Los Angeles, Long Beach, Oak

land and Seattle.

China holds great inuence in global port activity. Six o the worlds 10 busiest containe

ports are in China. None are located in North America.

Weve identied ve key risks to North American Ports:

Overheated port competition

Environmental inaction

Labor strikes

Slowing global GDP

State budget crises

We present our Colliers 2012 Port Awards, which take a lighthearted look at the outstand

traits o some o North Americas top ports.

august 2012

North American Port AnalysiprepAring for tHe first post-pAnAmAx DecADe

K.c. conwAY Executive Managing Director, Market Analytics | USA

colliers 2012port AwArDs

> Houston: The Irreplaceable Port

> Los Angeles/Long Beach:

A Colossus among Giants

> Savannah: Success with Less

> Charleston: Getting er Done

> Virginia: 50 Feet before 50 Feet

Was Cool

> Baltimore: The Delicate Touch

> Miami: Cruising to Success

> New York & New Jersey:

Jumping Hurdles in a

New York Minute

> Jacksonville: The Comeback Kid

> Mobile: The Up-and-Comer

Read more on page 10.



North AmericAN Port ANAlysis | white paper | august 2012

euro Fears and post-panamax prepIn our last U.S. Port Analysis we detailed the two most pressing issues conronting coastal

port authorities at the onset o 2012:

Inrastructure improvements needed to handle the larger ships which will soon pass

through an expanded Panama Canal

The threat o a slowing European economy on U.S. port activity

Since that report, a number o U.S. ports have risen to the challenge and accelerated port

dredging and crane acquisition projects. Additionally, the worlds largest 12,500 twenty-oot

equivalent unit (TEU) containerships have started making calls on North American ports. But

while some ports build inrastructure, the completion date or the Panama Canal lock expansi

has been postponed to the rst hal o 2015. And Europe, which is the largest trading partne

both the U.S. and China, has seen continued economic slowing. This report will examine how

these and other global challenges have aected the health o North American ports.

eastern port traFFic growth will accelerate

The expansion o the Panama Canal will alter global trade routes and is already promoting the

advancement o the science o logistics. The expansion will impact more than just shipping

companies: Retail supply chains, manuacturers and commodity traders will each eel the e-

ects o new access to eastern ports. Growth in East and Gul Coast port trafc will be ueled

by new manuacturing operations rom Airbus (Mobile), Boeing (Charleston) and Caterpillar

(Athens, Georgia), and a new commitment rom Disney to exclusively use the port o Jackson

ville or all imports bound to the Magic Kingdom. As Chinas economic growth slows and Ameican manuacturing grows in the right-to-work states o the Southeast, Midwest and Gul Coa

port volume growth trends will shit in new ways. Data rom the Port Import/Export Reportin

Service (PIERS) shows that, or the rst time since World War II, the East Coast surpassed th

West in container trafc growth. Eastern ports saw trafc grow by 5.5 percent in Q1 2012 ov

the same quarter in 2011, as compared with 3.0 percent in the western ports. Eastern trafc

growth will accelerate urther ater the 2015 Panama Canal expansion is complete.

u.s. will need to step up port inFrastructure spending

According to a recent U.S. Army Corps o Engineers report (U.S. Port and Inland Waterways M

ernization: Preparing for Post-Panamax Vessels)post-Panamax vessels will make up 62 percen

o total container ship capacity by 2030. North American ports will need to spend billions in oder to participate in this global trade opportunity. But the U.S. may be lagging behindthe nat

ranks 23rd globally in inrastructure competitiveness, according to the World Economic Forum

Photo Credit: AP Moller Maersk

pre-pAnAmAx locK tHresHolDs

post-pAnAmAx locK tHresHolDs

304.8 m (1,000)

18.3 m (60)

427 m (1,400)

55 m (180)

12.8 m (42)

32.3 m (106)

33.5 m (110)

15.2 m (50)

12.4 m (39.5)

294.1 m (965)

49 m (160)

366 m (1,200)

draft

draft

> 14 m

5th Generation

12.8-14 m

4th Generation

1990-2000

11.6-12.8 m

3rd Generation

1971-1990

10 m< 9 m

2nd Generation

1970-19801st Generation

Pre-1970

SeaLevel1020304050




north american port readiness and rankingsThe western ports o Los Angeles, Long Beach, Oakland and Seattle are post-Panamax ready.

Four East Coast ports will be post-Panamax ready in time or the 2015 Panama Canal expansi

Norolk is currently post-Panamax ready

Baltimore will be post-Panamax ready by the end o 2012

Miami will be post-Panamax ready by 2015, with dredging approved and super post-Pa

max cranes ordered

New York will be post-Panamax ready by the end o 2015, with unding now approved t

raise the Bayonne Bridge in 2012

nortH AmericAn post-pAnAmAx reADY ports

pp-paaa

sau/id

2012 teU

(e. 000)2011 teU gba ra

LA/Long Beach Currently Ready 14,000 14,000 6th

New York/NJ2015 Bayonne

Bridge5,600 5,500 20th

Oakland Currently Ready 2,400 2,350 < top 50

Seattle Currently Ready 2,100 2,000 < top 50

Houston 2013 Dredging 2,100 1,900 < top 50Norolk Currently Ready 1,900 1,900 < top 50

Miami2015 Dredging/

Cranes950 900 < top 100

Baltimore 2013 Cranes 650 630 < top 100

A port is considered post-Panamax ready when it has met three key criteria.

Channel depth o 50 eet with sufcient channel width and turning basin size

Cranes capable o loading and unloading pots-Panamax ships

Docks engineered to handle the new bigger cranes

A smAll gUiDe to lArge crAnesThe typical Panamax crane in use at

most U.S. ports today wont have the

capacity required to deal with post-

Panamax vessels.

A Panamax crane can load and unload a

container ship capable o passing through the

Panama Canal today.

A post-Panamax crane can load a ship 18 contain-

ers wide, which is too big to pass through thePanama Canal.

The Super post-Panamax is the largest crane inuse today and can unload containers rom vessels

with a width o 22 or more containers. Baltimoreand Miami are each adding such cranes.

*Based on 8 wheels per corner at 1.00m spacingSource: liebherr.com

tYpicAl feeDer pAnAmAx crAne

B ouah 30.00 40.00

D l Hh 24.00 30.00

swl caay 40/50t s 65t t

H sd 50 125 /

ty sd 150 180 /

tav sd 45 /

wh lad * 30 45t p m

tYpicAl post-pAnAmAx crAne

B ouah 40.00 46.00

D l Hh 30.00 35.00

swl caay 40/50t s 65t t

H sd 60 150 /

ty sd 180 210 /

tav sd 45 /

wh lad * 40 55t p m

tYpicAl sUper post pAnAmAx/megAmAx

B ouah 46.00 69.00

D l Hh 35.00 49.00

swl caay 65t t - 80t tad

H sd 70 175 /

ty sd 210 240 /

tav sd 45 /

wh lad * 60 80t p m

Source: American Association o Port Authorities, Colliers International




china ports lead in global traFFic VolumeChina, Korea and the Netherlands not only surpass the U.S. in post-

Panamax readiness, they lead in terms o container trafc as well.

The top seventy primary container ports in North America handle

approximately 45 million TEUs per year, which is the equivalent o

35% o Chinas 130 million annual TEUs. Six o the worlds ten

busiest container ports are in China, according to data rom the

American Association o Port Authorities. The other top global

ports are ound in Singapore, South Korea, United Arab Emirates

and the Netherlands.

In order or the U.S. to crack the global top ten, one would have to

combine the ports o Los Angeles and Long Beach, which would

result in 14 million TEUs. This level o trafc is unmatched in North

America. In act, combining all Canada and Mexicos port TEUs would

only equal 8.7 million, 62 percent o the trafc o

Los Angeles and Long Beach.

u.s. tops north american port rankings

All but our o North Americas top twenty ports as ranked by container

trafc are in the U.S. The remaining two are in Canada and Mexico.

Los Angeles and Long Beach are the busiest North American

container ports, ollowed by New York/New Jersey, Savannah andVancouver. Thirteen o the top twenty North American ports handle

more than one million annual TEUs.

The top 50 U.S. ports handle 32.5 million TEUs

Canadas leading 5 ports handle 4.8 million TEUs

Mexicos top 10 ports handle 4.2 million TEUs

O Canadas 5 largest ports, Vancouver handles the most container

trafc with 2.5 million TEUs in 2011. Port o Manzanillo handles the

most container trafc in Mexico, with 1.75 million TEUs. Los Angeles/

Long Beach and New York/New Jersey are the busiest containerports in the U.S., with annual TEUs o 14 million and 5.5 million

respectively.

top 20 nortH AmericAn contAiner ports

n. Aa p2012 teU(e. 000)

2011teU

2010teU

ra(20teU

Los Angeles, CA 8,000 7,900 7,800 1

Long Beach , CA 6,000 6,100 6,300 2

New York/NJ 5,600 5,500 5,300 3

Savannah, GA 3,000 2,900 2,900 4

Canada Vancouver 2,600 2,500 5

Oakland, CA 2,400 2,350 2,330 6

Seattle, WA 2,100 2,000 2,150 7Houston, TX 2,100 1,900 1,812 89

Norolk, VA 1,950 1,900 1,895 89

Mexico Manzanillo 1,800 1,750 1,700 10

Tacoma, WA 1,500 1,500 1,455 11

Canada Montreal 1,400 1,300 12

Charleston, SC 1,350 1,300 1,147 13

Jacksonville, FL 950 900 827 14

Miami, FL 950 900 847 15

Baltimore, MD 650 632 16

Canada PrinceRupert

500 410 17

Portland, OR 210 200 181 18

Mobile, AL 190 170 145 19

Tampa, FL(a bulk cargo port)

45 40 44 20

suba 43,295 42,152 36,833

% n.A teU 96% 94%




Florida will beneFit From canal expansionIt may seem surprising that no port in Florida handles more than one million TEUs, but por

in the Sunshine State oten avor bulk cargo and cruise ships over container trafc. In act,

Tampa is the largest ertilizer export port in the world; Miami leads in cruise ships, handling

35 percent o all global cruise ship trafc. Florida also has the most ports o any U.S. coast

state, which helps to keep cargo more widely dispersed. We expect Floridas trafc to be-

come more ocused on three ports ater 2015 when upgrades in Miami, Tampa and Jackson

ville have made these ports post-Panamax ready.

Seattle/Tacoma, WA2011 TEUs: 3,500

Annual TEU % Chang2007 2011

2

2011 Total TEU's2011 Total TEUs

14,00

7,00

1,40

000's

Portland, OR2011 TEUs: 200

Oakland, CA2011 TEUs: 2,350

Los Angeles/Long Beach, CA2011 TEUs: 14,000

Houston, TX2011 TEUs: 1,900

Tampa, FL2011 TEUs: 40

Miami, FL2011 TEUs: 900

Jacksonville, FL2011 TEUs: 900

Savannah, GA2011 TEUs: 2,900

Norfolk, Virginia2011 TEUs: 1,850

New York/NJ2011 TEUs: 5,500

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

LosAng

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NewYo

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Savannah,

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Housto

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Mexic

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2011 YTD 2010 2009 2008 2007

mAjor U.s. port citY contAiner trAffic

top n. AmericAn ports: rAnKeD BY 2011 contAiner VolUme (teUs)

15 ports on two coAsts

While largely avoring bulk cargo and

cruise ships, expect Floridas trafc to

become more ocused on three post-

Panamax ports: Miami, Tampa, and

Jacksonville




the age oF intermodalismThe past ty-ve years have seen intermodalism transormed rom

a theory into a high tech global phenomenon. Intermodalism

describes the system o standardized cargo containers which move

seamlessly between dierent modes o transport around the world.

It began with the maiden voyage o the Ideal X rom Newark to

Houston in 1956 with ty-eight metal containers on board, and

reached its latest milestone in March with the call o the MSC Fabiola,

the largest container vessel now serving U.S.-Asia trade with a

capacity o 12,500 TEUs, at the Port o Long Beach.

No longer can a shipping company, manuacturer, or retailer think o

the various modes o transportation in isolation. They are

interconnected in a global supply chain. But while intermodalism has

matured, there are still challenges on the horizon, including the threat

rom volatile energy prices, congestion at key inland intermodal

points such as Chicago, and the lost efciencies which occur when

empty containers are transported back to their port o origin. A new

report rom the Department o Agriculture is helping shippers to

address this problem.

shippers will realize new eFFiciencies

thanks to oscar report

For the rst time, shippers have access to weekly data about thesurpluses and shortages o TEU maritime containers at 18 inland

U.S. intermodal load points. The U.S. Department o Agriculture

introduced the Ocean Shipping Container Availability Report (OSCAR)in

July. OSCARhelps distributors, retailers, and others to better manage

transportation costs and increase match-back shipments. This

process reduces shipping costs by matching an emptied import

container with goods or materials or the return trip to its port o

origin. OSCARprovides shippers with three weeks o uture

estimates and projections o inventory o dry, high cube and

rerigerated containers.

The Intermodal Rail Yard in Chicago is the largest in the U.S.

the rest oF the port story inVolVes air, truck & raThe arrival o cargo at a North American coast is just one leg o its

trip. The entire journey rom port to consumer as well as the pro-

cess o matching the empty containers with cargo or the return tr

is all part o what the late Paul Harvey might have called the rest

the story. And that story is changing.

Historically, trucks have been the preerred mode o transporting

containerized goods inland rom North American ports; rail was th

means by which commodities owed outward. However, volatile

prices, shortages o qualied truck drivers, highway trafc conges

tion and the speed and reliability o rail and air cargo have increase

their appeal as an inland transport option.

The primary consideration or retailers and manuacturers is no lo

ger solely the cost o shipping. Conronted with increasing time pre

sures, they now must strike a balance between cost and speed.

Clothiers, or example, cant put the back-to-school season on hold

when cargo is held up at a choke pointt in the supply chain. When

timing is o the essence, retailers employ air cargo to have invento

on hand when they need it.

Retailers and manuacturers are remaking their entire supply chain

looking or hidden opportunity in the more than three thousand U.S

intermodal acilities. Many retailers are spending almost as much

capital on new distribution centers and logistics technology as they

are in new store openings. Distribution centers are appearing in

places some might call o-the-beaten-path. Ashley Furniture, or

example, rustrated with reight train delays in Chicago and seeing

the export opportunities developing along the Mid-Atlantic and

Southeast coast, has announced it will build a 3.3 million square o

manuacturing and warehouse acility in North Carolina.

trAnsportAtion

logistics

Truck Rail Seaport/Ship Air Freight

Retailer ConsumerManuacturer WarehouserSupplier




deFining the epicenters oF intermodalismGetting a handle on such a vast interconnected network can be a challenge. To visualize th

American intermodal network, weve chosen to ocus on the routes o the seven Class I No

American railroads in conjunction with the eighteen designated load points identied in

OSCAR, along with three other metros that we believe deserve attention.

These twenty-one hubs are the nodes o connection between the key elements o commer

connecting imported and exported goods with populations o consumers, raw materials, lab

and the capital o banks and nancial markets that lubricate the wheels o commerce.

The eighteen OSCAR markets that make up the majority o our list have all the pieces need

to assemble the logistics puzzle. They include the port markets that process 75 percent o

all North American containers, the primary intersecting points or all seven Class-1 railroad

(excepting Atlanta and Indianapolis) and nancially important MSAs located in all but two o

the Federal Reserves districts.

oscAr report coVerAge

r msA

West Coast Long Beach, CA

Oakland, CA

Seattle, WA

Tacoma, WA

East Coast New York

Norolk, VA

Charleston, SC

Savannah, GA

Gul Coast Houston, TX

New Orleans, LA

Inland Chicago, IL

Cincinnati, OH

Columbus, OH

Dallas, TX

Denver, CO

Kansas City, MO

Memphis, TN

Minneapolis, MN

OSCAROmissions

AtlantaFlorida/Jacksonville

Indianapolis

tHe oscAr goes to 18 Us mArKetswitH tHe logistics DAtA

These twenty-one markets will be

the leading intermodal and logistics

centers or North American retailers and

manuacturers in the rst post-Panamax

decade beginning in 2015. They are the

epicenters o intermodalism in North

America.

AmericAn AssociAtion of rAilroADs mAp of clAss i rAilroADs




port & intermodal

risk assessment

With the expansion o the Panama Canal,

technological advances in logistics and

new efciencies in supply-chain manage-

ment, the opportunities ahead or shippers,

manuacturers, retailers, and industrial real

estate investors are many. Yet there are

also some risks on the horizon. We have

identied ve risks, based on the current

state o the industry.

risk: p c c u- i m F

The global intermodal system is a complex

network that operates most efciently when

all nodes operate on an equal ooting without

articial incentives. The system comes into

risk when nodes compete in destructive

ways. Its as though a persons arm were to

ght their leg or supremacy o the body:

even i one succeeds over the other, the en-

tire body is worse o.

Ports are now attempting to unairly direct

container cargo trafc to their ports over

others. Some ports in Canada and Mexico

have steered container trafc bound or U.S.

destinations into their ports; rom there, the

cargo enters the U.S. via rail, avoiding U.S.

port taxes which support harbor mainte-

nance. In Florida, business and political lead-

ers are engaged in a statewide campaign to

have all goods which are consumed in Flori-

da enter the state through a Florida port.

Florida hopes to capture some o the con-

tainer trafcand the tax revenue and jobs

that come with itrom ports in Georgia,

South Carolina and Virginia.

The growth in global trade has create ef-

ciencies o scale that have steadily reduced

shipping costs or decades, despite increased

costs o uel, labor, environmental compli-

ance and terminal ees. Fity years ago, the

cost o ocean shipping was approximately 15

percent o the value o shipped goods; in2012, its less than 1 percent.

Harbor maintenance ees and taxes pay not

just or port dredging and security, but also

maintenance o the inland waterways that

connect Canada and Mexico to the U.S. Only

government leadership can prevent anti-

competitive practices that distort the markand threaten these efciencies, by ensurin

air approach to port maintenance, unding

and cargo ees.

risk: ev i

Most port authorities understand the enviro

mental dangers o diesel emissions rom

ships, trucks and gantry cranes, as well as

impact o improper port dredging and are e

gaged in nding solutions. Baltimore is rec

nized as The Green Port or the steps it h

taken to lessen its impact on the Chesapeak

Bay. Los Angeles, Long Beach and Housto

lead the continent in their unding o enviro

mental upgrades. The electrication o Mi-

amis cranes will eliminate one entire sourc

o that ports diesel emissions.

But in a time o constricting government bu

gets, there is a great risk o inaction. Incen-

tives and nancing mechanisms are requir

or port authorities to maintain momentum

environmental progress. Whats more, somenvironmental initiatives such as the electr

cation o gantry cranes and automation o

port acilities ace resistance rom organize

labor.

risk: l s c h p

av

Strikes can greatly disrupt container trafc

North America. In its Q2 earnings release

the Canadian Pacic Railway blamed a nin

day strike or an almost twenty percent drin second-quarter prots. But this would b

minor compared with the impact o a

potential International Longshoremens

Association (ILA) strike at U.S. ports

ollowing the October 1st expiration o its

existing labor agreement. The timing o su

a strike would hit retailers just as they are




importing goods or the holiday shopping season. The ILA is concerned with loss o jobs toport automation and the transer o ownership o intermodal equipment. Port authorities an

multinational shipping companies have turned to leasing companies to help upgrade acilitie

and nance post-Panamax port equipment. The ILA ears that these new private owners w

employ non-union labor, or turn to other labor unions such as electrical workers or new

electric gantry cranes. This issue was central to a pair o recent ILA showdowns at grain

terminals in Washington State and Oregon. The question remains whether the U.S. is

entering a new phase o ILA activism.

risk: s g gdp

Chinas slowing GDP growth and Europes debt crisis each threaten global trade. For port

authorities, this could mean a dramatic drop in ees collected to maintain and upgrade their

ports. Chinas ve primary ports originate approximately orty-ve percent o all the worlds

container cargo; Europe is the largest trading partner to both the U.S. and China. A mere v

percent drop in global container trafc would mean the loss in trafc o the equivalent o al

the containers handled annually in Los Angeles and Long Beach.

risk: s b c

Hal o the top ten U.S. container ports are located within states ranked in the bottom ten o

scal soundness in Forbes annual ranking o state debt and scal conditions. Only one top-

twenty portNorolkis in a state with a high ranking. Chicago, the most vital intermodal

metropolitan area in North America, is located within Illinois, the most scally distressed st

in the U.S. Chicagos most pressing intermodal congestion issue is the act that passenger

rail trafc must share lines with trains that move reight. The cost to cure Chicagos congestion problem would be $3 billion. It is unlikely that Chicago could soon expect this kind o ex

penditure rom a state operating a $500 million annual decit. The U.S. state scal crisis is

material risk to vital U.S. ports such as LA/Long Beach and New York, and pivotal inland in

termodal centers like Chicago.

post-panamax world will require intelligent leadership

Once its expansion is complete, the Panama Canal will accommodate container vessels 160

percent larger than todays Panamax ships, orever altering global trade routes. Many ports

North America are rapidly preparing or this coming change, but no single continent contro

all o the resources, acilities or technology that determine the ow o global container traf

The uture well-being o global trade resides in successul global collaboration.

The twenty-one markets identied in this report will be the North American centers o ab-

sorption and construction or modern distribution acilities in the rst post-Panamax decad

The successul prosperity o these and all global logistical epicenters rests in great part on

telligent government leadership to mitigate the many risks.

port & intermodal

risk assessment

(cu)


10/13www.colliers.com/reseArcH | p


houston:The Irreplaceable porT

The Houston Port Authority was the rst to introduce double-stacking rail cargo, and the

to receive certain ISO certications or environmental management and security. It was als

a leader in the creation o oreign trade zones. Thus, it came as no surprise that Containeris

tion Internationalnamed Houston the Port Authority o the Year in 2011. The Port o Housto

handles seventy percent o all the containerized cargo in the U.S. Gul o Mexico and is vita

the nations petrochemical industry. Unlike key East and West Coast ports, there are no alt

natives to the Port o Houston. New Orleans and Tampa might possibly handle Houstons ve

sel trafc, but those ports lack the energy, security, and inland inrastructure that make Hou

ton a one-o-a-kind.

los angeles/long beach: a colossus among gIanTs

The ports o Los Angeles and Long Beach are the big boys in all that is containerization in

North America. Since 2000, they have ranked as the busiest container ports in North Ame

ca. In 2006, the port authority surpassed 8.5 million TEUs, a rst or any North American

port. The MSC Fabiola, the largest container vessel in operation today, made call in March

2012 on the port o LA/Long Beach loaded with 12,000 containers. As the ports director

said last March: Few ports can handle these giant ships, but Los Angeles / Long Beach is

big-ship ready.

saVannah: success wITh less

I you are a shipping company, retailer, or agricultural products exporter along the East Coa

Georgia Port Authority is on your mind. The Port o Savannah has become the third-busies

container port in North America while having a channel depth o just orty-two eet, the shalowest o North Americas top 15 ports. Savannah has seen less ederal and state unding

than other ports along the East Coast, yet the Georgia Port Authority has taken the lead on

the East Coast in post-Panamax planning. This past spring, the Port o Savannah received

Corps o Engineers approval to dredge to orty-seven eet while other ports along the East

Coast were still struggling to complete their dredging impact studies. The ports Center or

novation and Logistics is unmatched along the East Coast. There is no better model or su

cess with less than the Port o Savannah.

charleston: geTTIng er Done

The port o Charleston started late in obtaining approvals to increase its channel depth to

eet. It was also slow in getting its state legislature to appropriate the unds required to be-come post-Panamax ready. But despite the slow start, Charleston got the job done in 2012

like no other port in the past decade. The port and Corps o Engineers recently announced

that they had shaved our years o the anticipated dredging approval process and the Sout

Carolina legislature appropriated a record $180 million to und the needed port upgrades. T

port will now be post-Panamax ready between 2015 and 2017. In a time o Washington bu

reaucracy and state budget decits, these accomplishments deserve special recognition or

getting er done.

PORT OF HOUSTON AUTHORITY

colliers recognizes the bestin north american ports

We think its not enough to judge ports

by mere trafc alone. Thats why

weve chosen to conclude our as-

sessment with a look at a ew o the

great achievements and distinguishing

eatures in ten o North Americas top

seventy ports.




colliers recognizes the best in north american ports ()

Virginia: 50 FeeT beFore 50 FeeT was cool

As o today there is just one East Coast port with a ty-oot channel depth that is post-

Panamax ready: the Port o Virginia, which has become a leading ocean container terminal

complex. Although its annual TEU guresapproximately 2 millionrank it eighth among U.

ports, it was ranked rst or competitiveness by Site Selection magazine in 2011. The Port o

Virginia is an East Coast sleeper that will likely be a rst port-o-call or post-Panamax

container vessels in 2015. Companies are already recognizing the Port o Virginias

competitiveness: Ace Hardware recently selected the Hampton Roads area or its East Coas

import re-distribution center.

baltimore: The DelIcaTe Touch

The Port o Baltimore has managed to become one o Americas top teen container ports

while maintaining the delicate ecological balance o a wetland habitat or many Chesapeake

Bay species.

The Port o Baltimore also demonstrated its delicate engineering touch when it maneuvered

our new Super post- Panamax cranes under the Chesapeake Bay Bridge in June. The new

cranes, along with the deepening and reconstruction o the Seabirth Marine Terminal, give B

timore the distinction o being one o only two post-Panamax ready ports along the East Coa

in 2012. The port has a ty-oot-deep channel and now seven Super post-Panamax crane

miami:cruIsIng To success

The Port o Miami has long been regarded as Americas cruise port. From Carnival, Disne

Norwegian, Royal Caribbean, or one o eight other existing and newly expanding cruise line

there is hardly an international cruise operator that does not make Miami a primary port o

call. Over 4.5 million cruise passengers ow through its terminals annually, a gure which

has grown by a third over the past decade in spite o the recession. Miami is now using cru

ship success as a launching pad or its cargo ambitions. Dredging and Super post-Panama

crane upgrades are underway. These post-Panamax readiness projects have already resul

in a joint Memorandum o Understanding designed to promote new business growth betwe

the Port o Miami and the Panama Canal Authority. Miami, along with Port Everglades, is ad

vancing capabilities to capitalize on the boom in trafc soon to ow through the expanded

Panama Canal locks. The Port o Miami is no longer just your grandparents vacation port call. It is now cruising to become a primary container port as well.





new york & new Jersey: JumpIng hurDles In a new York mInuTe

Until recently it appeared as though New York would not be post-Panamax ready in 2015

The bridges current 151-oot air drat prohibits some post-Panamax ships rom passing u

derneath on their way to our o the ports biggest container terminals.

The port authority will raise the air drat sixty-one eet by liting the our-lane highway

across the bridge. But rst, the U.S. Coast Guard and other agencies must complete a stu

the projects impact on the environment and on the bridges historic structure. It appeare

as though the cost and engineering challenges required to raise the Bayonne Bridge wou

cause the authority to miss the ast-approaching 2015 deadline. However, in what elt to

some like a New York minute, the timing challenges were hurdled. On July 18th, the New

York Port Authority announced that the $1 billion project had been moved up by six month

and had been placed on President Obamas list o projects or expedited review. It now a

pears certain that the Bayonne Bridge will have enough clearance by the all o 2015 to

handle post-Panamax ships.

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13/13



JacksonVille: The comeback kID

Florida has more port acilities and miles o waterways than any other U.S. coastal state.

a result, capital resources or dredging, cranes, and upgrade projects have oten been spre

thin. Florida allocated a disproportionate share o state unding to the ports o Miami and

Tampa or post-Panamax readiness, at the expense o the states teen other ports. But

while the port o Jacksonville has been overlooked in the unding process, north Floridas o

deep-water port is in the process o making a comeback.

The Disney Resorts decision to bring most goods destined or its Central Florida properties

through Jacksonville was made possible thanks to the quality o Jacksonvilles port acilitie

However, we do worry that the state-wide push to bring Florida-bound cargo into the state

via a Florida port could have unintended consequences: Alabama, Louisiana, South Carolin

Georgia and Virginia port authorities may see a material impact on container trafc, and re

spond with their own campaigns and tax incentives. What seems to one state like a bene

strategy to boost port trafc may place manuacturers, retailers and shippers in the midst o

an economic port development war.

mobile: The up-anD-comer

Many are surprised to learn that post-Panamax vessels have started to call on the Port o

Mobile. The MSC Laura docked there in June, the rst post-Panamax vessel in the Mediter

ranean Shipping Companys eet to provide new weekly direct service rom the North Euro

pean ports o Antwerp, Felixstowe, Bremerhaven and Le Havre. Airbus recently announce

plan to build a $600 million assembly plant in Mobile will urther bolster the ports up-and-

comer status. The Port o Mobile has already seen an almost 30 percent growth in contain

trafc; and with Airbus planning to begin production there in 2015, Mobile is the up-and-

comer port to monitor.

t a h c iaa l & taa su

u a a yu, a v: ../uda

colliers internAtionAl

601 Union Street, Suite 4800Seattle, WA 98101

+1 206 695 4200

Copyright 2012 Colliers International.

The inormation contained herein has been obtained

rom sources deemed reliable. While every reasonable

eort has been made to ensure its accuracy, we

cannot guarantee it. No responsibility is assumed or

any inaccuracies. Readers are encouraged to consult

their proessional advisors prior to acting on any o the

material contained in this report.

for more informAtion:K.C. Conway, Executive ManagingDirector | Market Analytics+1 678 458 [email protected]

James CookDirector o Research | USA+1 602 633 [email protected]

contriBUtors:

Aaron Finkelstein, Communications Manager | USA

Zach Kroupa, Sr. Graphic Designer | USA

Cli Plank, National Director | GIS & Mapping

522 ofces in62 countries on

6 continentsUnited States: 147

Canada: 37Latin America: 19

Asia Pacic: 201

EMEA: 118

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