Asian cargo pushing GC ports’ growth

Gulf Coast ports are expecting growth in cargo volumes throughout 2020, especially from Asia, after its double-digit volume eclipsed East and West coasts’ numbers in 2019. The Port of Houston will be focused on securing funds to speed up its channel-widening project for vessels greater than 1,100 feet (about 9,500 TEU). The Port of New Orleans is expanding its container terminal, and the Port of Mobile, Ala., is planning additional yard space and looking for funds to complete a planned $400M dredging project. The drive for these projects was highlighted in the rising Gulf Coast cargo volumes, which leapt 13.2 percent to 2.72M loaded TEU across the Gulf Coast in the first nine months of 2019. That compared with increases of just 0.8 percent on the West Coast, and 3.7 percent for the East Coast. Gulf Coast cargo growth was propelled in part by the rising volume of resin exports from regional resin manufacturing and Asian services/imports coming to the coast. Asian imports through Gulf Coast ports increased 17 percent. Although starting from a smaller base, the growth in Asian imports handled by GC ports outpaced that of ports on the East Coast, which saw imports from Asia rise 6.4 percent; and a 1.5 percent decline in West Coast numbers. A recent consultant’s report predicted New Orleans should be ready to handle cargo volumes up to 250,000 TEU over five years. To cope with increases, New Orleans is halfway through a $110M expansion of its Napoleon Avenue Container Terminal, and expects to take delivery of four new cranes by year’s end to handle vessels up to 9,000 TEU. The port has a capacity of 840,000 TEU and space to increase to 1.5 million TEU. The port also plans to complete a site selection process in this year for a second container downriver. The Port of Mobile, Ala., is focused on expanding it container terminal, APM Terminals Mobile; and in February, expects the extension of a dock from 2,000 feet to 2,400 feet, allowing two post-Panamax vessels on site at the same time. The U.S. Army Corps of Engineers OK’d a plan to dredge the Mobile channel to 50 feet, enabling vessels up to 14,000 TEU to call on the port. The $400M million project, expected to take three to four years, could begin this year if the port authority is able to secure another $250M still needed. The Alabama state legislature approved $150M for dredging. (Source: Journal of Commerce Annual Review and Outlook 01/06/20) https://www.joc.com/port-news/us-ports/aro-2020-shifting-asia-volumes-drive-us-gulf-coast-port-infrastructure-developments_20200102.html?_hsenc=p2ANqtz-9IkPUb9alyYVFP2fiQiEBxB2e4KXAF8QEHgxCPHX8Dvc_kmF6v7ktg3LXrqUNmeC2rs0VXuOn9yUq2sq_8b2wt2t4wNg&_hsmi=82962926.