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Good news, bad news - California ports and carriers rise to the challenge.

Florida Shipper

| September 06, 2005 | COPYRIGHT 2005 Commonwealth Business Media. (Hide copyright information)Copyright

BYLINE: Rick Eyerdam

At Port Manatee, Port Canaveral and the Port of Tampa, bad news about congestion and supply-chain back-ups afflicting the U.S. West Coast container terminals and cargo railroads sounds like a blessing as enthusiastic port supporters stoke their hopes for a container terminal.They cannot help but view the MOL and TraPac deal recently concluded at the Port of Jacksonville as a sign that other Florida ports without established container terminals have an improved chance to capitalize as long as container handling demand exceeds supply.Stan Payne, chief executive officer of the Canaveral Port Authority, has gone public with his port's cargo quest, telling the local newspaper that it is going "big-game hunting.""I'm psyched. We're going to do this," he said. "Yes, there are challenges. We've got to go after the big entities. We're starting to get interest. It's very exciting."MOL made it clear that it is building a major container terminal at Dames Point by 2007 because it does not have confidence that all the links in the West Coast supply chain will meet the test of seasonal stress and the escalating growth of Asian exports.At the Port of Miami's first Summit on Aug. 24, business leaders were told that all U.S. container ports will experience at least 6 percent annual growth in demand from shippers for containerized cargo. That means a 100 percent increase in cargo demand in 25 years. Because there are few options for expansion at existing ports, costly and innovative strategies must be planned, Summit attendees were told. And some of the short-term solutions are already being tested in California, where recent shipping news is far better than expected six months ago. The consensus is that the U.S. West Coast has made the proper adjustments for a peak season free from serious congestion problems for the western railroads and the major ports. While that news is an inspiration for stressed container terminals, it is putting a damper on the container dreamers among Florida ports.LA and Long Beach lead The Port of Los Angeles handled 7.3 million TEUs last year, while the neighboring Port of Long Beach handled 5.8 million. Together, the two California ports accounted for about a third of all containerized cargo shipments in the U.S.Instead of turmoil at the key West Coast ports, shippers continue to support the extended-gates program in Los Angeles-Long Beach, with off-peak traffic …

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