The Impact of Capacity Investment at Major West Coast Ports and Terminals that Connect to the Movement of Containerized Agricultural Exports - Focusing on the Ports of Los Angeles, Long Beach, Oakland, and Seattle-Tacoma (Northwest Seaport Alliance)

Abstract

What is the Issue?

West Coast ports are vital conduits for U.S. containerized agricultural exports, yet they face significant infrastructure challenges that can hinder efficient cargo handling. This report examines recent investments and future needs at the Ports of Oakland, Northwest Seaport Alliance (Seattle-Tacoma), Los Angeles, and Long Beach, with a focus on potential improvements benefiting containerized agricultural exports.

These ports grapple with a complex web of issues, including aging facilities, congestion, space constraints, and stringent environmental regulations. They must also navigate competitive pressures, labor relations, funding limitations, and the need to adopt new technologies. The interplay of these factors creates a challenging environment for maintaining and enhancing port infrastructure to support agricultural exports.

How Was the Study Conducted?

The study employed a comprehensive approach, combining analysis of public documents with publicly shared stakeholder input. We examined port budgets, reports, and data, while also participating in industry events and advisory committee meetings. The public insights of port officials, agricultural exporters, drayage-trucking providers, chassis providers, and various other stakeholders in the supply chain were considered.

A key component of the study was the review of federal and state infrastructure grant programs and awards, and their impact on port development. The authors also scrutinized port strategic plans to understand future priorities. This multifaceted approach provided a robust examination of container flows, recent infrastructure initiatives, and their potential impact on agricultural exports.

What Did the Study Find?

Containerized agricultural exports continue to be a significant portion of outbound cargo at West Coast ports, despite fluctuations in overall volumes.

Recent infrastructure investments have largely focused on modernizing terminals, improving on-dock rail systems, upgrading roadways, and implementing environmental initiatives. However, the pace of improvements still lags behind the growing needs of these ports and their stakeholders.

Federal support grant programs, such as the Port Infrastructure Development Program, are providing crucial funding support. Additionally, California and Washington have bolstered their state-level support for port infrastructure projects and improvements.

The strategic priorities of these West Coast ports encompass a range of initiatives. These include developing off-dock chassis facilities and expanding on-dock rail, enhancing refrigerated container infrastructure, and investing in trans-loading facilities. Ports are also focusing on zero-emission truck technology, exploring inland port development, improving terminal access, and upgrading digital infrastructure.

Based on these findings, the study recommends a multi-pronged approach to future infrastructure investment. Key areas for focus include strengthening reefer and trans-loading capabilities, particularly at Oakland and NWSA ports, and exploring innovative uses of available space, such as Oakland's Howard Terminal. The study also emphasizes the need for a comprehensive strategy to support zero-emission truck adoption and the build out of the critically needed supporting ZEV infrastructure.

Other important recommendations include pursuing viable inland port projects, improving port access roads, investing in and further developing data sharing platforms, and when needed supporting flexible solutions like "pop-up" container yards and extended gate hours. The study also highlights the need to upgrade roads and highways to accommodate heavier zero-emission trucks.

In conclusion, while recent investments have enhanced West Coast port infrastructure, continued federal and state funding support is crucial to address remaining needs and boost the competitiveness of U.S. agricultural exports. Priority should be given to projects that directly benefit agricultural shippers, such as reefer and trans-load facilities. Moreover, addressing challenges like zero-emission truck adoption will require ongoing collaboration between ports, shippers, and policymakers. This coordinated effort is essential to ensure that West Coast ports can effectively support the growing demands of containerized agricultural exports in an increasingly competitive global market.

Keywords: Port Infrastructure, Agriculture Exports, Logistics, Supply Chain, Marine Terminals, Trucking