Competition of Ports with the Panama Canal

Competition of inter feelings with the Panama canaliseStrategies for sometime(a) appearancesLen EdwardsTowards the end of next year, the Panama Canal will open a third set of locks allowing larger ships to transfer the canal. These super ships called venture-Panamax ships will before long have easier access to the manners on the east coast, reducing the travel multiplication for cargo from Asia. This has resulted in aggressive port expansion to concord these giants. some(prenominal) ports have the available inhabit for expansion to handle the influx of containers without some modifications of their operations. However, many cured ports desire an expansion although they ar limited on room for expansion. How can these cramped ports debate with larger ports in attracting change magnitude cargo volumes in the near future?The first option for little ports with limited space is utilizing an off enter kind argona cognize as a planet pole. It is interesting to note that planet terminal is only one of many terms describing the operation off-dock sorting areas in that location seems to be no consensus on the terminology resulting in a all-inclusive range of terms including dry ports, landlocked terminals, inland ports, inland hubs, inland logistics centers, and inland freight villages (Rodrigue Notteboom, n.d., para. 4). The satellite terminal uses dedicated trail swear out form the dock to a secondary sorting facility come along inland. The advantage to this form is the ability to handle the increased volume of container from Post Panamax ships at ports with limited land for storage of the containers, in effect change magnitude the ports throughput in crowded urban environments. The containers are loaded onto waiting stipulate shuttles without sorting by destination. The train then carried the containers to a secondary sorting yard where the containers undergo further transferring to other trains by destination. Additionally the satellit e terminals can service the trucking industry. Trucks deliver container to the satellite facility to be loaded on a rail car for delivery to the dock or a terminus inland. The synergy between the port and the satellite terminal creates a new type of maritime / land interface, which fundamentally results in a regionalized port (Rodrigue, n.d., para. 3). This type of operation is under the exploit of development at the carriage of Baltimore. The rail company CSX, in hopes to attract more ships to the port, is considering a satellite facility 15 miles for the port. The rail simple eye offers to deliver cheaper rates to transportation companies using the port and the devoted rail line.Another area for older ports to focus on is unexampledization of the actual infrastructure. Besides the amount of containers the port handles, focus should shift to offering narrow facilities at the ports, securing an advantage over larger ports. An example of this at the Port of Philadelphia is war ehousing. In 2011 Philadelphia completed a warehouse for storing refrigerated freight, the 686,000-squarefoot edifice, the largest refrigerated building in North America. The idea was to link the world-class produce commercialise with the premier perishables port in the United States. (OBrien, 2013, para 17). Additionally, the ports looking to compete with larger ports must look at improving the infrastructure pitiful freight off the pier in an efficient and cost-competitive manner. The Port of Miami attacked this conundrum in three ways. First, they secured funding to improve rail lines serving the port, which include the rebuilding of rail bridges linking the port to the rail yard. There are plans to construct three tracks capable of holding trains a half-mile long. Furthermore, the port invested in a new tunnel linking the port to the nearby interstate, while as well as upgrading surrounding roadways, offering the ability for trucks entering and leaving the port to avoid the congested downtown streets, the only other access to the port. The final blame of the project involved dredging the channel to a depth of 50 feet to accommodate Post-Panamax ships. With Miamis three-pronged attack tunnel, rail, and dredging the port claims it will be able to contain inroads into some of the markets that Savannah now dominates (Whitefield, 2012, para. 33). Moreover, Baltimore requires a redesign of the rail system leaving the port. The only rail tunnel leaving the port is one hundred thirty years old, lacking in the proper diameter to handle the modern double stack trains or tri-level auto racks. Without railroad redesign in Baltimore, its estimated that Maryland might even lose up to 50 percentage of its container traffic to a port like Norfolk, Va. the other East shore port able to handle the larger ships costing our region hundreds of jobs and tens of millions in economic activity and tax revenue (Sadowski, 2012, para. 8).One last resource for crowded p orts to compete besides the pervious mentioned options is entering strategic alliances with major(ip) transportation system companies via a dedicated terminal. This alliance benefits both the ports and the maritime shipping company, this relationship requires a long-term agreement. For the shipping company it secures a port in a profitable location without having to compete with other shipping companies. As for the ports, the shipping company considers the port part of their supply chain, order a majority of their ship to call upon the port even if in that location are ports closer or ports containing better facilities. For port authorities, dedicated terminals countenance the development of port facilities allowing them to push for more funding it is also a useful strategy if there is competition between port terminals (Lun, Lai, Cheng, 2010, p. 182). The Port of Philadelphia remains proactive on attracting ships to their port they have agents stationed across the world. Lik ewise, the Port of Baltimore in the late 1990s attempted to attract two major shipping companies by offering lower dock rates and upgrading facilities some the port. Unfortunately, for Baltimore the shipping companies rejected their offer. Although, this reinforces the lengths that port will go to attract a dedicated shipping company.In conclusion, with the completion of the Panama Canal upgrades in brief to be completed, the ports operating on the east coast now face a rush to prepare. The larger ports fare well in this situation, having the room for expansion and up to date infrastructure. The older ports in urban environments scramble to prepare a system to handle the increased demand. There are a few options to aid these ports, depending on the amount of funding available. or so ports like Baltimore are looking to move the sorting of containers to off-site location, depending on rail transportation to deliver the containers. On the other hand, some port authorities are improv ing the needed infrastructure to allow quick movements of rail and trucks to and from the facility. Lastly, many ports are securing deals with shipping companies to lure them to make the older ports their main stops in America. This report discussed issues with east coast ports although these strategies are not limited to that area. They are easily applied to struggling ports across the globe.ReferencesLun, Y.H., Lai, K., Cheng, T.C. (2010).Shipping and logistics management. London, England Springer.OBrien, D. (2013, Summer). daddys Homeport The Port Of Philadelphia.Catalyst Magazine. Retrieved from http//http//digital.graphcompubs.com/article/Pennsylvanias+Homeport+The+Port+Of+Philadelphia+/1445490/0/article.htmlRodrigue, J.P., Notteboom, T. (n.d.).Inland Ports/Dry Ports. Retrieved August 6, 2014, from https//people.hofstra.edu/geotrans/eng/ch4en/appl4en/ch4a4en.htmlRodrigue, J.P. (n.d.).The insertion of a Satellite Terminal in Port Operations. Retrieved August9, 2014, from http //people.hofstra.edu/geotrans/eng/ch4en/conc4en/agileport.htmlSadowski, J.T. (2012, October 24). The port Baltimores access to opportunity.The Baltimore Sun. Retrieved from http//articles.baltimoresun.com/2012-10-24/news/bs-ed-port-20121024_1_port-expansion-cargo-activity-intermodal-facilityWhitefield, M. (2012, November 18). Competition heats up as U.S. ports prepare for Panama Canal expansion.Miami Herald, p.para. 33. Retrieved from http//www.miamiherald.com/2012/11/18/3104323/competition-heats-up-as-us-ports.html