Intermodal Briefs: POLB, Port NOLA, Georgia Ports, Ports of Indiana

“Looking ahead, I anticipate a moderate increase in cargo as we move into summer and we recapture business by delivering the top-notch customer service that makes us the Port of Choice,” POLB CEO Mario Cordero reported June 13. (POLB Photograph)

Cargo was down in May at California’s Port of Long Beach (POLB) due to “[s]hifting trade routes and canceled voyages.” Also, intermodal rail volumes at the Port of New Orleans (Port NOLA) rose more than 15% year-to-date, when comparing January through May; Georgia Ports Authority (GPA) in May logged a 22% increase in container volume over the same month last year; and Ports of Indiana seeks to develop multiple international container terminals in the state.

POLB

Dockworkers and terminal operators at POLB moved 695,937 TEUs (Twenty-Foot Equivalent Units) in May, an 8.2% drop-off from the same month last year, the Port reported June 13.  Imports were down 4.5% to 345,271 TEUs; exports decreased 21.1% to 100,885 TEUs; and empty containers moving through the Port fell 7% to 249,782 TEUs. POLB attributed the cargo decline to “[s]hifting trade routes and canceled voyages.”

In comparison, in April, the Port marked its eighth consecutive month of year-over-year cargo growth. 

Through the first five months of 2024, the Port noted that it has moved 3,449,181 TEUs, and is still up 10% from the same period in 2023.

“I am confident we will see additional cargo as we work with industry partners to rebuild our market share in this increasingly competitive environment,” POLB CEO Mario Cordero said. “Looking ahead, I anticipate a moderate increase in cargo as we move into summer and we recapture business by delivering the top-notch customer service that makes us the Port of Choice.”

“Our longshore labor, facilities and industry partners are ready for cargo growth as we head into the shipping season for back-to-school and beyond, thanks to our ability to move goods reliably, quickly and sustainably,” added Long Beach Harbor Commission President Bobby Olvera Jr. “Over the long term, the San Pedro Bay ports complex will continue to be a strategic and sustainable gateway for trans-Pacific trade.”

The Port of Los Angeles experienced a similar cargo decline in May; it processed 752,893 TEUs, which was down 3% from May 2023. Overall cargo volume, however, remains 18% ahead of 2023 after five months, it noted.

Separately, the Los Angeles Harbor Commission on June 6 signed off on a $2.6 billion Fiscal Year 2024/25 budget for the City of Los Angeles Harbor Department that it said will support the “community investment, decarbonization of port-related operations, workforce development, and cargo infrastructure modernization” priorities of the Port of Los Angeles.

Port NOLA

Port NOLA and Class III New Orleans Public Belt Railroad (NOPB) on June 13 reported that intermodal rail volumes were up more than 15% YTD, when comparing January through May. (Port NOLA acquired NOPB in 2018; rail represents approximately 33% of their consolidated annual revenue.)

Port NOLA’s Mississippi River Intermodal Terminal—located within the Napoleon Avenue Container Terminal complex—offers on-dock access to all six Class I railroads via the NOPB. CN, for example, offers regular intermodal service to and from Memphis, Chicago, and Detroit, as well as Toronto and Montreal, while Canadian Pacific Kansas City offers service to and from the Dallas/Fort Worth market, which is utilized by retail importers as an alternate cost-competitive option as well as a way for ocean carriers to reposition empty equipment into the NOLA region to meet export demand.

“Port NOLA is building momentum as the Gulf’s Gateway to middle America,” said Ronald Wendel Jr., who recently took over as Port NOLA Acting President and CEO and Acting CEO of NOPB, following Brandy D. Christian’s announcement that she would step down from the leadership roles to become CEO of Patriot Rail. “Our ability to provide innovative supply chain solutions for shippers looking to diversify their trade lanes is undeniable. We are on track to grow this service even more while simultaneously continuing to provide efficient and reliable options for moving freight by river, rail, and road.”

In a related development, Port NOLA experienced record container growth during the third quarter of FY 2024, moving a total of 133,845 TEUs, which represents a 19% increase year-over-year. Also, the Louisiana Legislature recently committed $230.5 million to Port NOLA for its Louisiana International Terminal , St. Bernard Transportation Corridor, and St. Claude Bridge projects.

GPA

GPA on June 13 reported handling 490,330 TEUs in May, up 22% or nearly 90,000 TEUs from the same month last year, and up 11% from April 2024.

“Major retail customers tell Georgia Ports they have increased their orders to rebuild inventories and to meet rising consumer demand,” GPA President and CEO Griff Lynch said. “Additionally, we’ve seen an increase in trade among Tier 1 suppliers for the new Hyundai Meta Plant, which also added to our May container volumes.”

While there have been reports of congestion at Southeast U.S. ports, Lynch said there is no congestion in Savannah. He added that GPA is benefiting from “source shifting,” as more manufacturers establish production facilities in Southeast Asian locations that favor delivery via Savannah.

According to GPA, the Port of Savannah has achieved an increase in container trade for every month of Calendar Year 2024, compared with 2023.

Lynch said June is also expected to be “strongly in positive territory,” with more than 320,000 TEUs of import cargo destined for Savannah currently on the water.

In intermodal cargo, the CSX-served Appalachian Regional Port achieved a record May, with the inland rail terminal moving 3,600 containers, according to GPA. Forty-foot boxes moved by rail at the Port of Savannah’s Garden City Terminal reached 44,000 last month, up 2%, or 900 containers; CSX and Norfolk Southern serve that terminal.

For the calendar year to date, GPA has handled 2.2 million TEUs in total cargo, up 12.7% from the same period in 2023.

Further Reading:

• For GPA, Auto Volumes Up 44% in April
• For GPA, Container Volume Down in December, ‘Renewed Strength’ Expected in 2024
• GPA Approves $127MM for Blue Ridge Connector
• GPA Prepares for the Future, Adds Inland Rail Connectivity
• CSX, GPA Launch ‘Carolina Connector’ Service
• Georgia Ports Advances Inland Rail Hub Plan

Ports of Indiana

The Ports of Indiana Commission on June 13 reported approving Resolution 24-01 (see above) to launch “The Indiana Container Initiative” in support of developing multiple international container terminals within the state of Indiana.

“As a statewide port authority, Ports of Indiana operates multiple facilities on the Ohio River and Lake Michigan, but the state’s ports do not currently handle container shipments,” the Ports of Indiana said. “The new initiative is designed to increase the organization’s efforts to pursue the development of international container facilities within Indiana’s ports and other locations throughout Indiana.”

The resolution authorizes and directs the Ports of Indiana to do the following:

• Pursue the development of international container terminals at appropriate locations within Ports of Indiana’s facilities and other Indiana locations.
• Pursue the regulatory approvals necessary to establish container facilities along Lake Michigan, the Ohio River, and at appropriate strategic inland locations throughout Indiana.
• Make investments and seek additional funding sources, whether through federal grants, public/private partnerships, or any other funding that may be available.
• Explore international best practices “for leveraging governmental assistance and legislative actions that can promote, incentivize, and advance global container shipments, and remove bureaucratic impediments for developing and operating container facilities.”
• Engage in partnerships, trade missions, international agreements, and collaborations to establish new global container shipping opportunities for Indiana.

“Containers are a high-value and fast-growing cargo for ports around the world and we see ‘The Indiana Container Initiative’ as a key driver for elevating Indiana’s role as a hub for global trade,” Ports of Indiana CEO Jody Peacock said. “Establishing new container facilities at the ‘Crossroads of America’ can create both economic and public benefits by reducing shipping costs, creating access to world markets, and establishing green shipping corridors that decarbonize supply chains.”

Ports of Indiana operates 2,800 acres of multimodal facilities with connections to ocean vessels via the Great Lakes, barge traffic on the Ohio River, and rail carriers; among the railroads directly serving the Ports of Indiana are Evansville Western Railway, CSX, Louisville & Indiana Rail Road, and Norfolk Southern.

Separately, the Ports of Indiana-Burns Harbor last month kicked off the construction season with more than $77 million in projects under way.