Top 25 North American Ports

Special Report

COMMENTARY

By Michael Leue

The continued growth of SPB— and the inter-related rail and logistics systems— are vital to a healthy US supply chain.

The first-quarter surge of cargo flowing into West Coast ports has prompted a key realization: the rail system serving the massive number of exports and imports that come through Southern California has expanded and modernized enough to keep current supply chains functioning, at least for now.

The ports of Long Beach and Los Angeles, known as the San Pedro Bay( SPB) Ports, have invested $ 10 billion, including $ 4 billion on port rail, and have expanded their infrastructure to support intermodal cargo with efficient connectivity to the US heartland. A vital component of this effort is the Alameda Corridor, a $ 2 billion investment by SPB Ports to mitigate the impact on local communities and improve the efficiency of rail operations.

Import volumes at SPB Ports have grown 3 % annually since 2000, doubling over 24 years. During that same period, rail volumes increased 2.5 % annually; in 2024, rail handled 60 % of SPB imports( 28 % on-dock and 32 % off-dock).

That rail volume is greater than the total at any other US port, a significant component of the supply chain. In 2024, we saw that SPB handled record cargo and ships were processed without delay. Throughout the 2024 surge, SPB proved itself to be a reliable gateway with available capacity and minimal risk.

Rail dwell times at SPB Port terminals were carefully monitored and managed, peaking for two months at a nine-day average.

And the ports’ commitment is not waning. To handle forecast cargo demand, they are investing $ 2.5 billion more in moving cargo efficiently by rail, including the Pier B On-dock Rail Support Facility and several on-dock modernization projects. Despite a looming tariff-related downturn, now is not the time to delay investments. Past downturns, such as the 2009 global recession, seemed insurmountable at the time. But long-term and consistent investments proved prudent as evidenced by the uninterrupted flow of cargo from the recent surge in shipments.

The ports’ intermodal rail improvements, totaling $ 3 billion, initiated on-dock rail and expanded infrastructure to support intermodal cargo with efficient connectivity inland. The Alameda Corridor was built to handle volumes forecast to double in the next 20 to 30 years. Western railroads have made comparable investments in the transcontinental railway, and they are enhancing the supply chain with a much broader network of intermodal distribution points west of the Mississippi River.

These advances, when combined with enhanced logistics technology, aimed to

The LA-Long Beach port complex( pictured) has invested $ 4 billion to expand its rail infrastructure. The Image Party / Shutterstock. com

26 Journal of Commerce | June 2, 2025 www. joc. com