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For the Port of Long Beach, a major element of the solution is on-dock rail, which enables it to move more cargo, more quickly and with fewer emissions. Transporting cargo in ways that produce fewer emissions not only helps the environment, but it also improves the quality of life for those living near ports and roadways, says Doug Thiessen, ports and maritime leader in the western U.S. with HDR, an architecture and engineering firm. For most longer distances, rail is also more cost effective. INVESTMENTS NEEDED Fully leveraging rail will require continued investment. Many on-dock intermodal rail yards were built when double stack trains were 7,500 to 8,000 feet long. Today, railroads can operate trains twice that length. “Many ports’ intermodal rail yards are undersized and need additional and longer tracks, plus the capacity to manage and operate these railcars and additional locomotives,” Thiessen says. Power switches, signals, and other types of equipment are also being designed to accommodate bigger trains. Along with capital projects, investing in technology, such as automation and networking, is also critical. A March 2024 report from the U.S. Government Accountability Office (GAO) examined
he United States is home to more than 300 ports. In 2022, these ports handled nearly 43% of U.S.
the use of process automation systems and automated cargo handling equipment at the 10 largest U.S. ports ( see charts, next page ). While all have adopted some of these systems, foreign ports have generally adopted more automation technologies. A mix of reasons accounts for the generally lower investment at U.S. ports, says Josh Brogan, partner in the strategic operations practice of Kearney, a global management consulting firm. They can include labor agreements and laws that may date back centuries. The GAO report cites the generally larger volumes of cargo handled at foreign ports, which lowers the bar to achieving a return on any capital investments. Shipment type is another factor. Foreign ports tend to have higher numbers of transshipments moving from one ship to another, rather than to rail or truck. That may make these ports more conducive to automation, as their operations are less complex than those at ports that move containers between different transportation modes. CHANGES IN FUNDING Funding for investments is also often challenging. “Through USDOT’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) and Mega grant programs, our freight system and supply chain infrastructure have made many needed improvements over the past few years that America’s ports can be proud of and are grateful for,” says Cary S. Davis, president and CEO of the American Association of Port Authorities. However, every port has unique needs and geographic constraints, and the grants tend to be over subscribed. “As we near the end of the Infrastructure Investment and Jobs Act authorizations, there’s no question that our ports would benefit from a more robust long- term commitment from our federal government partners to help finance upgrades for years to come,” Davis says. Despite the challenges, many U.S. ports are making investments in multiple areas, including port-rail projects. The following projects are scheduled to come
international trade by value, worth more than $2.28 trillion, the Bureau of Transportation Statistics reports. Waterborne vessels are the leading mode of transportation when it comes to product trade between the United States and other countries. Once goods arrive at the ports, most need to move to markets farther inland. Rail can move many types of cargo quickly, efficiently, and with fewer emissions than most over-the- road options. Around half of rail intermodal volume consists of imports or exports, according to the Association of American Railroads. The benefits of rail and intermodal are gaining more importance as cargo volumes at many ports increase. For example, the number of twenty-foot equivalent units (TEUs) moving through the Port of Long Beach and the Port of Los Angeles is projected to swell to 41 million by 2040, up from 16.6 million in 2023, says Mario Cordero, chief executive officer with the Port of Long Beach. “A reality for many port authorities is limited land,” Cordero says. “The question becomes, how do you get more productivity out of what you have?”
The Georgia Ports Authority’s Mason Mega Rail Terminal at the Port of Savannah is the largest on-terminal intermodal facility in North America. Cargo moves from vessel to rail in 24 hours.
28 Inbound Logistics • October 2024
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