Leveraging niche potential

In the case presented here, Mother Nature dealt a harsh hand to the ports in the US Gulf through a series of hurricanes.

Mobile, Alabama, re-invented itself as a port with specialisations that include imports of steel ingot, much of which is destined for a Thyssen Krupp rolling mill that opened in December, 2010. In mid March, a 94,000 tonne shipment of ingots came into Mobile.

The port’s unique attributes – supporting its better known coal exports – have enabled new logistics patterns; the impacts of the Panama Canal on trade patterns for bulk and for the box trades will be dramatic; ports need to think them through very carefully.

John Corley, vice president in the Ports & Maritime Group at CH2M Hill, highlights the idea that ports can develop and expand their niches, even in the context of larger trends. He gives the example of Gulfport, Mississippi which could benefit from increased Asian cargo flows after the opening of the widened Panama Canal. However, the lack of funding for deepening creates a paradox, with Mr Corley saying: “Water depth is a big challenge- along with intermodal access to the rail network.” CH2M Hill did the engineering work on the APM Terminal at Portsmouth, Virginia.

The port has already developed a niche in the garment trades, where Crowley runs a service from Honduras. Rather than joining the superport club, Gulfport – also known as a gateway for refrigerated fruit from Central America – is aiming to attract an Asian carrier catering to the non-vessel owning common carriers, where multiple services share space on a vessel.

Gulfport is blessed with good connections to the interstate highway network, and to the big “Class 1” railroads through a link with Kansas City Southern and CSX.

Mr Corley describes a project, using Federal CBDG funds for restoration from Hurricane Katrina, where the terminal operation will be made hurricane-resistant, by raising it to a height of 25 feet above sea-level. Previous storm surges, even during the disasters of 2005, have not reached this height.

Because the yard area will be raised, “the operation is going to be dense, with an opportunity for potential automation to maximise efficiency within the smallest footprint possible”, says Mr Corley. The CH2M Hill consultant adds that the terminal, to be completed in 2016, could be attractive for a private operator, or possibly a steamship line, should the port choose to go that route.”