Pacific Maritime Association

29 T H E Y E A R I N R E V I E W 29 P A C I F I C M A R I T I M E A S S O C I A T I O N T H E Y E A R I N R E V I E W 29 P A C I F I C M A R I T I M E A S S O C I A T I O N of these ships, so too have many other ports. East Coast and Gulf ports are investing now to handle post-Panamax vessels by 2015; some are already marketing themselves to shippers worldwide. Also, to accom- modate the mega-vessels, West Coast terminals must continue to install cranes that are high enough to handle these larger ships that are expected to increasingly dominate the Asia/North America trade routes. The West Coast must also continue to modernize terminal operations and improve intermodal connections outside the gates, just as other North American ports are doing. Canadian officials, for example, market their closer proximity to Asia, quick turn- around times at the terminal and direct rail connections to Chicago as less expensive and faster options for discretionary cargo bound for Midwest and East Coast markets. To respond, West Coast terminals must continue to automate in order to efficiently handle larger vessels, a pro- jected cargo surge and the competitive realities of the wider Panama Canal. The widely anticipated opening of the expanded Canal in 2015 is likely to place the most compet- itive pressure on the Los Angeles/ Long Beach port complex. Given these and other competitive trends, the West Coast ports must intensify their focus on ter- minal productivity and customer service in 2014 and beyond. As the Journal of Commerce reported in a story on the Port of Long Beach in October of 2013, "productivity, rather than loyalty to a particular port or terminal operator, drives the maritime industry today." A Powerful Opportunity in 2014 Proving the West Coast ports' reliability is crucial. The upcoming 2014 contract negotiations between the ILWU and PMA present an enormous opportunity to demonstrate a joint com- mitment to effective, productive terminal operations; reaching a new contract without waterfront disruption would send a powerful statement to shippers around the world that the ILWU and PMA intend to earn their business. In contrast, disruptions of any kind would be extremely costly to the long-term prosperity of West Coast ports. And the negative effect of lost market share would reverberate far beyond the terminal gates: West Coast ports support more than 9 million U.S. jobs. Locally, the ports are an important driver of economic development and job creation, from Southern Cali- fornia to the Pacific Northwest. Overcoming competitive hurdles to growth is not just a mandate for the PMA and ILWU; a large base of stakeholders will benefit from our collective ability to reverse the market share decline. Ultimately, the more we can work and turn a ship quickly – each and every day – the more competitive West Coast ports will be. And when it comes to the outcome, the eco- nomic stakes couldn't be higher.

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