Port also continues robust capital programs By Peter A. Buxbaum, AJOT The year 2011 set records at the port of New York and New Jersey, a testament to an improved economic picture in the region and the competitiveness of the port itself. Cargo volume exceeded any previous year at the port and the number of containers handled by the on-dock rail system ExpressRail also set a record. Cargo volume at the Port of New York and New Jersey surpassed the previous record set in 2007 before the start of the global economic downturn. A total of 5.5 million TEUs were handled at the port in 2011, representing a 3.9 percent increase over 2010. Containerized imports rose 4 percent to 1.56 million TEUs while loaded exports increased 6.6 percent to 918,316 in 2011. In 2010, the port handled 5.2 million TEUs, up 16 percent over 2009. The Port of New York and New Jersey remains the largest and busiest on the east coast and the third largest in the country behind Los Angeles and Long Beach, supporting over 270,000 jobs and $4.2 billion in economic activity. With the steady rise in cargo volume, the Port Authority’s Board is continuing to invest in several critical port projects. Most major ports in the United States reported either stable cargo volumes or declines during 2011, according to Rick Larrabee, director of port commerce at the Port Authority. “Our market share continues to increase,” he said. “It is a sign the economy in the region is coming back. But I also believe that New York is benefiting from some of the ship lines moving to larger ships and making fewer port calls.” The port continues to benefit from the growth of all-water services that transit the Suez Canal from Asia to North America. “The all-water service provides the beneficial cargo owners with value and we are competing well against the west coast,” said Larrabee. Cargo from China still predominates among Asian cargo arriving in New York, although that trade did not grow in 2011. “China remained relatively flat last year in terms of our trade,” said Larrabee. “We did see increases as some manufacturing shifted to Vietnam, Malaysia, and India. Trade with India was up 10 percent last year and we expect to that trend continuing. The Suez route provides significant advantages to that trade.” The outlook for 2012 continues to spell growth for the port, according to Larrabee. “We are still looking at a three percent to four percent increase this year,” he said. “We are anticipating the second half to be better than the first first. Cargo was up only one percent during the first quarter of this year. I can’t completely explain that, but some ports were down during the same period. The economy is still a little shaky.” The port’s on-dock rail system—known as ExpressRail—also set a new record in 2011, handling 422,144 containers, or 12 percent more than in 2010. The rail business was also up during the first quarter of this year, by 8.7 percent. “It’s another good indicator,” said Larrabee. “We’re still seeing the trend of rail being a popular way to move cargo. Landside transportation costs are increasing, making rail a more attractive alternatives. We also believe that when larger ships call on the port they will be carrying a higher percentage of rail cargo.” Chicago is the predominant rail market for the port of New York and New Jersey, attracting 50 percent of the discretionary rail cargo. Pittsburgh and Buffalo are among the shortest hauls serviced by ExpressRail. “Those distances are currently the shortest viable for rail,” said Larrabee. “We believe that in the near future there may be opportunities for even shorter hauls, assuming we can find locations where volumes are significant.” The Port Authority continues to build rail capacity. The port’s current capacity totals 1.1 million lifts per year. “Last year we handled 420,000 containers,” said Larrabee. “We still have room to grow. From an environmental standpoint and a cost standpoint, rail can present a better option for many shippers.” Improving access to rail