Port of Long Beach predicts “modest growth” in 2017

The Port of Long Beach expects “modest growth” in 2017 after experiencing a 5.8% decline in overall container cargo in 2016, according to interim Chief Executive Duane Kenagy. Kenagy told 300 participants at the ‘State of the Port’ event that the Port of Long Beach’s fundamentals remain strong and that the Port remains on track for continued growth in 2017 and onwards. In an interview, Kenagy told AJOT that the new automated Long Beach Container Terminal has been operational for almost a year and will be a major draw for ocean carriers as the larger 18,000 TEU (20 ft. containers) begin to arrive. Kenagy is hopeful that the plans for a new on-dock rail facility at Pier B will substantially increase the Port’s ability to consolidate on-dock rail moves, reduce truck traffic, and speed container rail deliveries to customers in the Midwest and at other destinations. Kenagy also told AJOT that, “Community organizations will be the major beneficiaries of the new on-dock rail project because it will lessen truck traffic and emissions.” Kenagy said the Port will continue to be fiscally prudent in its operations and expects that its $4 billion capital investment will generate major improvements and revenues in the future and, “our continued high bond rating backs that up.” Board of Harbor Commissioners President Lori Ann Guzmán set the stage for the State of the Port address, laying out the Port’s goals in 2017 for increasing sustainability, financial strength and market share. She said the Port successfully weathered the dislocation caused by the Hanjin bankruptcy in 2016 and by finding an alternative in Mediterranean Shipping as a replacement tenant for Hanjin at the Ports Pier T terminal: “This reflects our ability to adapt and we also recognize Mediterranean Shipping contribution.”