Northwest Ports
and the Gateway Initiatives
Anne V. Goodchild
Assistant Professor
Department of Civil and Environmental Engineering
University of Washington
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Research
• Port elasticity study with Dr. Leachman
• Impact of Port of Prince Rupert on
regional trade
• Transportation resilience
– Analysis of past disruptions at PR
• Transloading and warehousing
• Cross border research
• Clean Trucks Program
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Diversity in West Coast Ports
• Growth pattern
• Discretionary cargo
• Approach to drayage truck emissions
• Congestion
• Landside infrastructure
– Port access
– Urban region
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West Coast Container Volumes
9,000,000
8,000,000
7,000,000
Fraser
Prince Rupert
Vancouver (BC)
Anchorage
5,000,000
Long Beach
Los Angeles
Oakland
Portland(OR)
4,000,000
3,000,000
Seattle
Tacoma
2,000,000
1,000,000
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
-
1990
TEU
6,000,000
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Discretionary Cargo
• The cargo that doesn’t have to go through a particular
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•
•
port
The cargo that is transloaded
Importing via the East Coast is getting more competitive
Some companies have recently moved to a 4-5 port
strategy
– In this case consolidation-deconsolidation is less effective
• With a one port strategy consolidation-deconsolidation is
•
•
getting more competitive
$30 would remove transload volume in the Pacific
Northwest
$30 would have very little impact on Southern California
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• The line to Prince
Rupert is a spur line
• No alternative routes
• Required switching
activities in Prince
George
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Reliability Threats
Highway 16 west at Shames Flats and 3 to 4 km west of Shames Flats has opened to single lane
alternating traffic as of noon June 10, 2007CN workers begin the long task of rebuilding the rail line
between Terrace and Prince Rupert now that the Skeena has started to recede.
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Service Interruption Duration and Delay by Year
Duration
6000.00
30
5000.00
25
4000.00
20
3000.00
15
2000.00
10
89
86
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19
83
80
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77
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19
74
71
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68
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65
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19
62
59
19
56
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53
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50
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47
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44
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19
41
38
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35
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19
32
29
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26
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23
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19
19
19
20
0.00
17
0
14
1000.00
11
5
Delay (train*day)
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Duration (days)
Delay (4 trains/day)
Year
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Distribution Centers
• About 33% of Port of Seattle traffic use a
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warehouse in the Green River Valley (2005)
18% of 2007 Port of Seattle traffic is transloaded
Provide capability to use consolidationdeconsolidation strategy
Provide economic benefit to importers from
inventory management and transportation cost
Provide regional economic benefit
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Unique elements of NW Ports
• More price sensitive
• More discretionary cargo
• Less transloading
• Relatively weak local demand
• Regional/International competition
• Regional/International cooperation
• Servicing Alaska trade
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Canada’s gateway and trade
corridor initiative
• Canada’s strategy has resulted in heavy
investment in a “new” port
– Not all cargo needs to move through a congested
region
– Has capacity
• Consolidation activities in Vancouver
• Separation of rehandled/local cargo from
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discretionary cargo
Primarily serving midwest markets
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• Currently PR serving
US midwest
– Imports
– Exports
• SE Alaska continues
to be served by
Washington ports
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US Policy
• Growing consensus for a national freight program
• National Surface Transportation Policy and Revenue
•
Study Commission, AASHTO, ARTBA, NRC, ATA, AAPA,
US Chamber, GAO
GAO recommends “a national strategy to transform
the federal government’s involvement in freight
transportation projects. This strategy should include
defining federal and nonfederal stakeholder roles and
using new and existing federal funding sources and
mechanisms to support a targeted, efficient, and
sustainable federal role.”
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Policy Suggestions
• National strategy for planning & investment
• Merit-based criteria for prioritizing projects
• Predictable, dedicated, sustained funding for
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•
freight infrastructure
Partnership with the private sector to anticipate
and meet the needs of system users
New user fees
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Growing Coalition
• Coalition for America’s Gateways and Trade Corridors
National Freight Mobility Infrastructure Act
– Creates National Freight Mobility Infrastructure Fund
• Merit-based distribution criteria
• Multi-modal eligibility
• National in focus
– Creates New Funding Mechanism
• 1% tax of the cost of transportation of ALL goods (domestic
and international; all modes)
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CAGTC Participants
Coalition for America's Gateways and Trade Corridors
Washington State DOT/ Port of Tacoma
California Air Resources Board
Association of American State and Highway Transportation Officials
ITS America
National Railroad Construction and Maintenance Association
National Industrial Transportation League
Association of American Port Authorities
Agriculture Transportation Coalition
West Coast Corridor Coalition
Mississippi Valley Freight Coalition
National Association of Manufacturers
American Association of Port Authorities
Waterfront Coalition
American Road & Transportation Builders Association
American Public Transportation Association
Owner-Operator Independent Drivers Association
Association of American Railroads
AAA
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Discussion
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Average Annual Delay (container hours per through container)
Container hours delay per
container through
18.00
16.00
14.00
12.00
10.00
7 days a week operation
8.00
5 days a week operation
6.00
4.00
2.00
1,000,000
2,000,000
4,000,000
TEU throughput
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Open Questions
• Being closer to Asia is a significant asset
• Significant economic activity will occur in
Prince Rupert
• Transit of containers between Canada and
the US is not a deterrent
• Container management
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Prince Rupert Container Terminal
Performance to 11-March-08
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19 Vessel Calls
All vessels arrived & departed on schedule
Off loading/loading 22 containers/hour
35,600 TEUs handled
36.5% Backhaul - fully laden containers (less
than Seattle, Tacoma, and Vancouver)
Maximum Dwell Time: 2 Days
100% of containers scanned for radiation
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Container Management
• Containers imported into Canada must leave the country
•
within 30 days
They can only be used for one repositioning move
– This may favor the delivery of containers to the US, where laws
are less restrictive
• Most shipping lines are under contract to balance east
and westbound moves and are subject to penalties if
they are not
– Unless export potential is exploited, it will be expensive for
shippers to return the containers to Prince Rupert, impacting the
total cost
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Transloading
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Prince Rupert Terminals
CONTAINER
TERMINAL
Phase 1 & 2
WATER DEPTH
Inner Harbour:
35 - 44 metres
Wharf: 18.7 metres
CONTAINER
TERMINAL 2
Grain Terminal
Coal/Sulphur/Wood
Pellet Terminal
Ridley
Island
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1st CN Container Train Departure Nov. 1 2007
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Demand
• Shipping lines will decide whether or not to use Prince
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Rupert
They will choose to use it if meets their needs to control
cost while maintaining service quality and reliability
There is a complex web of relationships and economics
that drive these decisions
Demand for shipping line services is driven by shipper
demands, and is a function of cost
Shippers will find it more attractive to use Prince Rupert
if they can finance the cost of the return trip with
exports
They will choose to service Prince Rupert first if import
demand is of high volume and high priority
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Reliability
• Lean supply chains are a source of
competitive advantage
• Increased length, frequency of disruption
• Shippers are looking for reliability
(uncertainty is the enemy of logistics)
• e.g.
– Port of Seattle 2005 volume increase
– Walmart moves to a 5 port US import strategy
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Prince Rupert Advantage –
Hong Kong
Prince Rupert
Vancouver
Seattle
Los Angeles
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Prince Rupert Advantage
– Kobe
Prince Rupert
Vancouver
Seattle
Los Angeles
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30
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Prince Rupert Container
Terminal
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100% Radiation Scanning
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Prince
Rupert
Prince
George
Edmonton – 39 hrs
Saskatoon – 47 hrs
Calgary
Winnipeg – 61 hrs
Vancouver – 61 hrs
Halifax
Halifax
Montreal – 115 hrs
Toronto – 108 hrs
Chicago – 99 hrs
Memphis Competition
UP/Los Angeles – 112 hrs
UP/Seattle – 120 hrs
BNSF/Los Angeles – 130 hrs
Memphis – 117 hrs
New Orleans
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Export/Backhaul Opportunities
forest products
recycled paper
Alaska and BC seafood
soybean
cotton
beef
special agricultural
products
- pulses, grains, oilseeds
malt, cubes, pellets, hay
pork
bottled water
milk
poultry
Leather/ hides
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Port of Prince Rupert –
Export Backhaul Opportunities
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Alaska and local Seafood (est. 75,000 – 100,000 TEUs per annum)
Pork (est. 100,000 – 160,000 TEUs per annum)
Beef (est. 40,000 – 80,000 TEUs per annum)
Forest Products (est. 120,000+ TEUs per annum)
Special Agricultural Products (est. 60,000 – 100,000 TEUs per annum)
– Pulses
- Grains and Oilseeds
– Malt
- Cubes, Pellets, Hay
Other (originating in Chicago-Memphis area)
– Cotton (est. 160,000 - 180,000 TEUs per annum)
– Recycled paper (est. 40,000 - 100,000 TEUs per annum)
– Soybeans (est. 130,000 to 170,000 TEUs per annum)
Petrochemicals/plastics (to be determined)
Developmental (to be determined)
– Log and modular home manufacture
– Bottled water
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Port of Prince Rupert –
Sample Initiatives to Stimulate Export
Traffic
• Prince George Inland Port
– 120,000 TEU’s of forest products annually
• Grand Prairie Intermodal Container Facility
– $2.5 million of land donated by Alberta Gov’t.
• Access improvements to CN Intermodal in Saskatoon
– $20 million from the APCGI.
• Access improvements to CPR Intermodal in Edmonton
– $75 million from the APCGI.
• CN Edmonton Grain Distribution Centre
– $4 million facility opened Nov. 16, 2006
– Handling high-value specialty crops
• Gap Analysis-identified Opportunities
– Container Services: refrigeration, stuffing, storage & repair
– Bonded warehousing
– Ridley Island Logistics Park
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PR—Prince George,
British Columbia
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International Intermodal Freight
• West Coast handles the vast majority of
Asian imports
• Moved via landbridge to midwest and East
Coast (double stack trains)
• Rapid growth in container volumes as
Asian imports have grown
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Port of Seattle
• 4 container terminals, 25 cranes
• Natural deep water harbor
• 4 RR routes to inland markets (2 major RR hubs
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within 1 mile)
10 container berths up to 50 ft (15 m)
Vessel calls: 1,221 (2007)
TEUs (2007): 1,973,504
Containerized metric tons (2007): 14,584,816
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Port of Tacoma
• 5 container terminals
• 4 dockside intermodal rail yards
• Upland infrastructure with road network &
easy access to interstate system
• Natural deep water port
• Available land for expansion
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Port of Vancouver
• TEUs (2007): 2,307,289 (increase to 4
million by 2012)
• Million tons/cargo (2007): 82.7
• 17 bulk terminals, 25 marine cargo
terminals
• Linked to 3 RR with double stack capacity
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Prince Rupert Port
• > 98% marine to rail intermodal
• Annual capacity: 500,000 TEUs
• 360 metre container quay
• 18.7 metre berth depth
• 3 Ultra Post Panamax Cranes
• 7 working tracks (5,500m), 6 storage
tracks (6,100m)
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Leachman
• For direct inland movement of marine
boxes, the break point in declared value at
which it is cheaper to import via the West
Coast instead of all-water movement to
Eastern markets fell from $46 to $40 per
cubic foot.
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Average Interruption Duration
1.00
0.90
0.80
Days/Year
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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