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When you’re
the undisputed, number one port location on the east coast, most
folks believe being on top of the heap will simply go on
forever. The container freight operations in Newark and
Elizabeth clearly are number one in terms of number of ships and
container volume, and have been for some time.
Several
recent decisions might change that in the future, however, a
troubling prospect for
New Jersey
and its economy. Panama’s recent decision to widen the Panama
Canal, while clearly good news for shippers and ports up and
down the east coast, could be bad news for New Jersey because
there are lots of wonderful container ports along the coast to
the south of Newark and Elizabeth. And some of these ports are
undergoing massive expansion in what looks like an attempt to
topple
New
Jersey’s enviable, number one spot.
Consider
only the following. America’s oldest waterway – the James River
in Virginia – may soon see cargo containers being barged from
Norfolk
to Richmond, enabling importers and exporters to leapfrog
congested roadways. The 100 mile water route between these two
cities ultimately could prove to be an insurmountable advantage
for Virginia as ports and shippers vie for the fastest and most
efficient route to “the heartland” in the Midwest.
The
expansion of the
Panama
Canal
could also lead shipping lines to shift more of their cargo to
east coast ports completely by ship, a so-called “all water
route,” rather than dropping it off on the west coast and
sending it across the country by truck or train. Meanwhile,
more big ships are expected to arrive on the east coast through
the
Suez Canal in Egypt. Accordingly, there could soon be a massive
influx of new cargo from both directions into
New Jersey,
Virginia and other east coast ports.
Two other
developments in
Virginia
are worthy of closer scrutiny as well. The Army Corps of
Engineers recently approved a massive new 580 acre island
expansion and container terminal for Norfolk’s Craney Island,
using dredged materials from the harbor to create the enlarged
island. The project – expected to cost $2.4 billion for both
the expansion and the terminal – could double the capacity of
the
Virginia
Port
Authority to handle shipments.
Has anyone ever suggested investing anywhere near that amount of
money to preserve
New
Jersey’s enviable, number one position? Incidentally, Virginia
is only 600 container ships annually behind us. Using the
latest statistics available, our ports handled 2,331 container
ships, while Virginia’s handled 1,717, so the gap is clearly
narrowing.
Further
proof of efforts to undermine New Jersey’s shipping operations
can also be seen by looking at what is being called, “The
Heartland Corridor Project.” The effort involves renovating 28
railroad tunnels – 23 in
West
Virginia
– four in Virginia and one in Kentucky – enabling them to
accommodate double-stacked trains. When completed, the project
will reduce travel time between Virginia’s ports and Chicago by
twelve hours, an efficiency gain that’s expected to spur lots of
new traffic.
The
Virginia Port Authority says it believes the more efficient
route to the Midwest will help the local port better compete
with the
Port
of
New York
and
New Jersey.
Prior to “The Heartland Project” shipments through the
New Jersey
ports held a time advantage to get to the Midwest, taking two
days rather than 2.5 days from
Norfolk.
With “The Heartland Project” the travel time would be equal.
Using rail
to transfer cargo to the
Midwest
has other advantages as well. It is estimated that it will take
150,000 trucks off
Virginia’s
roads annually,
thereby freeing up capacity on the Old Dominion’s existing
interstate highways for passenger vehicles eliminating or
reducing the need for further expansion. Talk about a “win-win”
situation. And the renovation of the 28 tunnels is expected to
accommodate the double-stacked trains by 2010!
I hate to
be accused of being “Johnny One Note,” but I remember when they
built Ford cars in Mahwah and most east coast freight came
through Manhattan or Brooklyn. Nothing lasts forever.
Unfortunately, without quick and decisive action on the part of
New York and New Jersey, we could all be wondering in the very
near future what happened to our container freight success story
and its vital contribution to the Garden State’s economy, a
nightmare to even contemplate.
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