Navigating through the logistics maze
The logistics maze: exact pathways of future intermodal movements are never clear
In the logistics business, you can’t always believe the plans and projects that are announced through press releases and conferences, which are, in turn, dutifully reported in the trade press and through news sites.
Planners and port operators expect a flood of East Coast business with the widened Panama Canal coming on-line four years out, but logistics currents are tricky and shoals are many.
Environmental considerations sometimes trump the potential for economic gains. Quite simply, it’s easier to expand an existing facility than it is to break new ground, especially in un-developed areas. The Ports of North Carolina announced that plans to build a container mega-port near the mouth of the Cape Fear River had been postponed indefinitely; local opposition was overwhelming. Likewise, recessions can do funny things. South of Cape Fear, near the South Carolina/Georgia border, another container-port project is treading water, as planners try to fine-tune their assessments of likely demand.
Particularly in depressed areas, job creation and economic vibrancy is paramount. In the very congested and populated Northeast, the Commonwealth of Pennsylvania has re-opened a bidding process for development of the Southport Marine Terminal - at the site of an old naval facility (not so coincidentally served by a trio of major railroads, and highways). Sensibly, the state will be laying the groundwork for a private entrant that will actually run the terminal.
The exact pathways for future intermodal movements is never clear; Southport, if it gets built, will serve a regional area - with bigger ships capable of transits through the widened Canal. Seaports all hope for the coveted status of a massive hub, yet perhaps they should look inward. The CN Railroad, with hubs in Vancouver and Prince Rupert, BC is working cooperatively with Memphis, Tennessee - better known as the hub for Fedex, but actually a huge center for rail (with five big Class 1 railroads) and truck (with multiple highways) moves. CN is now fine-tuning its interfaces with ports to improve cargo throughputs.
Port planners and crystal ball-gazers have many commonalities. It’s necessary to look well beyond the headlines, perhaps borrowing from the toolkits of logisticians.
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