SPECIAL ADVERTISING SECTION

CALIFORNIA GATEWAY

By Nicole Rollender

A pivotal hub in global trade , California boasts 12 deep-sea ports , 15 major airports and an extensive network of railways and highways . This robust infrastructure supports a diverse array of industries — from technology to manufacturing to agriculture — and underpins the Golden State ’ s prominence as the fifth-largest economy in the world . More federal funding will further bolster the state ’ s ability to facilitate container trade .

“ California ’ s ports have always played , and will continue to play , an integral role in supply chain strategy for any shipper transiting the Pacific ,” said Daniel Crosby , director of business transformation and development at third-party logistics provider PCC Logistics .

“ The efficiency of our ports , terminals and logistics providers enables shippers to have the highest confidence levels in the care of their freight ,” Crosby added . As the nation ’ s second-largest seaport , the Port of Long Beach handles $ 200 billion in trade annually and supports 2.6 million US jobs , including 575,000 in Southern California . In 2022 , the port handled more than 9.1 million container units , marking its secondbusiest year ever .

“ Along with being the leading gateway for trans-Pacific trade with the shortest distance to Asia , the port is a highly attractive option for shippers due to its stable and highly skilled longshore workforce , modern infrastructure and rail connectivity ,” said Port of Long Beach CEO Mario Cordero .

Southern California is home to a major West Coast rail hub servicing the Port of Long Beach , the Port of Los Angeles , and the two largest Class I railroads in

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North America : BNSF Railway and Union Pacific Railroad . The area is also aided by numerous intermodal facilities , freight corridors and access roads . The extensive rail network connects efficiently with major nationwide destinations .

“ Typically , up to one-third of the cargo arriving at Southern California ports moves directly onto rail , serving major destinations like Chicago , Atlanta and Memphis ,” said Sue Coffey , vice president of commercial operations at The Pacific Companies . “ Another one-third is distributed and consumed locally thanks to California ’ s large population , with the rest handled by companies in the Inland

Empire for further distribution . This reach and efficiency make the area a key hub for regional and national supply chains .”

Recent federal initiatives aim to further augment infrastructure at the region ’ s ports . The Bipartisan Infrastructure Law — announced in 2021 by the Biden administration — aims to drive significant investment in transportation , with California slated to receive approximately $ 28.2 billion within the next five years to improve its roads , bridges , roadway safety and other major projects .

“ All improvements to physical infrastructure are a win for everybody ,” Crosby said . “ Safety is paramount in all of our operations , and having improved roads and bridges puts less stress on our well-maintained equipment , enabling us to encounter less downtime of assets and lower repair costs . That enables us to keep our pricing competitive , our customer service levels met and our communities safe .”

Investing for growth and green

Over the next decade , the Port of Long Beach plans to invest more than $ 2.3 billion in capital improvements to increase capacity , reliability ,

“ California ’ s ports have always played , and will continue to play , an integral role in supply chain strategy for any shipper transiting the Pacific .”

competitiveness and sustainability . A significant portion of these funds is earmarked for on-dock rail projects , designed to boost efficiency and velocity while also improving air quality .

One of the most significant of these projects is the $ 1.6 billion Pier B On- Dock Rail Support Facility , also known as “ America ’ s Green Gateway .” Aiming to shift cargo movement from trucks to trains , the project will speed up freight transport and reduce environmental impact . Set for completion in 2032 , the facility will double the rail yard from 82 acres to 171 acres and triple annual on-dock rail capacity from 1.5 million TEUs to 4.7 million TEUs .

September 23 , 2024 | Journal of Commerce 49