China, Iraq lead project-cargo rebound.(Project Cargo)

China and Iraq are leading the slow-but-steady rebound of project-cargo transportation, which is still recovering from the market implosion that followed the Sept. 11 terrorist attacks.

Security risks and poor infrastructure have plagued imports into Iraq since the U.S. occupation began last year. Much of the project-cargo movement bound for Iraq has been relegated to the air, either to Baghdad Airport or to nearby Kuwait, where cargo is then trucked to Iraqi sites as contractors scramble to restore basic services such as electricity and running water to the war-torn nation.

China continues to dominate world trade with its seemingly endless hunger for construction and industrial components and equipment, but is beginning to source from within.

"We are still not at the levels we were seeing before Sept. 11," said Jerry Nagel, president of Rickmers America. "Still, demand is improving daily."

Bigger and stronger project-cargo vessels are allowing movement of entire …