Cargo growth , bigger ships and a new plan
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NORTHEAST TRADE AND LOGISTICS
competing ports in our range ,” Mahoney said . “ And when we see the increased costs in competing ports , we feel that we have a better value position — not just on cost , but also speed to market and efficiencies .”
The World Bank recently recognized PhilaPort as the most productive port in the US and the most productive container port in North America . Known for its efficiency and ability to quickly unload ships , PhilaPort has experienced container growth of 74 % since 2015 , moving 18 million tons of cargo per year .
PhilaPort recently released Destination 2040 , its 15-year plan , which highlights strategic initiatives shaping the port ’ s future and reinforces its commitment to growth , sustainability and prosperity .
More than $ 2 billion in projects and initiatives are identified , including the construction of 550,000 square feet of new warehouse space and the creation of an additional 9,000 direct jobs and 10,000 indirect jobs . A few port goals are to acquire new land , diversify its commodities portfolio , engage with local communities and partner with industry participants to enhance the port ’ s potential .
“ We ’ re hitting records month over month right now just on the container side ,” Mahoney said . “ If we stick to that , I predict we ’ ll be over 800,000 TEUs this year in Philadelphia . Destination 2040 is going to [ allow us to ] have the capacity to reach 3 million TEUs .”
Across the Northeast , cargo volumes are up , creating opportunities and challenges as ports work to accommodate the increase . Proposed expansion projects at several major East Coast ports have led to a more efficient and reliable supply chain ; however , competition has also intensified .
“ The workers in Philadelphia , including [ marine terminal ] operator Holt [ Logistics ], have done a wonderful job keeping up with the increased volumes . We , as Port Authority , need to implement the plan of acquiring new land , adjacent lands , densifying the existing terminals and building new berths for the future . That ’ s what Destination 2040 is all about ,” Mahoney said .
Over the last two years , PhilaPort has received $ 470 million in federal and state grants to expand the berths of Packer Avenue Marine Terminal and Southport Auto Terminal , including a recently announced $ 217 million federal grant . These investments will increase breakbulk volumes by an estimated 20 %, generating $ 2.84 billion in new business revenue and $ 170 million in state and local tax revenue .
“ It ’ s significant , and that ’ s not even calculating some of the downstream effects of businesses wanting to relocate in the commonwealth of Pennsylvania as a result of better connectivity and more DC growth in the in the area ,” Mahoney added .
To address the recent increase in container volumes , PhilaPort has instituted several measures to keep up with the flow of traffic . On the tech side , this includes installation of cameras and a variety of monitoring systems to track truck volumes headed to the port . This helps to avoid delays and limits interruptions .
Port operations in the US and across
Cargo growth , bigger ships and a new plan
On pace to set new cargo records in containers and automobiles , PhilaPort also intends to maintain its strong breakbulk performance . Having received the port ’ s largest ship earlier this year , the new port strategic plan ( PSP ) — Destination 2040 — arrives at an opportune time .
“ We have achieved 74 % growth in containers since 2015 ,” said PhilaPort CEO Jeff Theobald , adding that the port has reached a CAGR of 8 % in total over the last decade .
PhilaPort will handle over 800,000 TEUs this year , including over 300,000 automobiles , surpassing last year ’ s total . Based on current cargo projections , 2024 ’ s overall cargo is likely to be more than last year ’ s total of almost 7 million tons .
Theobald cited the March arrival of the 16,000-TEU CMA CGM Marco Polo as a success story for the infrastructure improvements the port has already made .
“ The Marco Polo made a lot of people take notice that we can handle the biggest ships that come to US East Coast ports , and handle them well ,” Theobald said . The Marco Polo is part of an Asia – US East Coast service that includes ports in China , Vietnam , Singapore and Sri Lanka .
“ As cargo volumes continue to increase , the port must build the necessary capacity to accommodate the next several decades of growth ,” said Sean Mahoney , PhilaPort ’ s senior director of marketing .
Destination 2040 is a comprehensive roadmap that charts the course for the port ’ s future over the next 15 years . It sets a goal of 3 million TEUs by the year 2040 and is a testament to the shared vision and commitment to continue making PhilaPort a world-class port — reaffirming the port ’ s commitment to growth , sustainability and prosperity for the region .
Both ambitious and achievable , the PSP is the culmination of a phased process conducted over a two-year period to develop an actionable , holistic framework to guide the future of the port ’ s infrastructure development . The PSP will be utilized to support PhilaPort ’ s capital planning process submitted annually to the Commonwealth . n
32 Journal of Commerce | November 4 , 2024 www . joc . com