Expanded Panama Canal among challenges for Washington ports | BRUNELL

The $5.4 billion spent to expand the Panama Canal is paying off for East Coast and Gulf of Mexico seaports; however, it is putting more pressure on the Northwest to remain competitive.

The enlarged waterway opened in June 2016 allowing much larger container ships and tankers to transit between the Atlantic and Pacific oceans.

Ships carrying up to 14,800 containers can now bypass Washington ports. Shippers have a cost-effective alternative to reach Midwestern markets from Southern and Eastern states.

Our traditional advantage of shorter Pacific crossing times to Asia is being challenged by Canadians as well. Even though Prince Rupert, the deepest natural seaport in the Northwest, is 1,000 miles by road north of Seattle, it is 68 hours closer to Shanghai by boat than Los Angeles.

The older canal could accommodate ships with 5,000 containers but it was a bottleneck causing up to 30-hour delays. On any given day, there were as many as 150 ships waiting in line to make the 48-mile journey. No more.

Recently, the Wall Street Journal reported an increase of 23 percent in tonnage over the last 16 months. By late September, the 2,000th ship too large for the old locks passed through the Canal.

“It’s an unprecedented increase and demand is driven by the expanded East Coast and U.S. Gulf ports that have been preparing for the new locks,” Manuel Benitez, the Panama Canal Authority’s deputy administrator, told WSJ.

The added canal capacity opened new markets for petroleum shipments, particularly Liquified Natural Gas processed in Texas and Louisiana. LNG exports were minuscule before the new locks opened, but today it accounts for 10 percent of the entire canal cargo. It is mostly exported to South Korea, China and Japan.

Container and shipments of oil, gasoline and LNG accounted for 90 percent of the total Panama Canal cargo between October 2016 and April 2017.

The Washington Public Ports Association (WPPA) concluded that much of the cargo received in our state’s ports is discretionary and can move through alternative gateways. Transportation time and shipment costs matter more in today’s highly competitive global market.

The trend has not been good for Washington.

In 2014, ocean-going cargo containers grew by 11 percent at Prince Rupert, B.C., as shipping companies continue to seek the fastest route to move goods to and from Asia. By contrast, cargo volume at the Port of Seattle dropped 26 percent from 2010 to 2013 while the Port of Tacoma’s volume remained unchanged. The Marine Cargo Forecast for this year is substantially lower in our state.

The Federal Maritime Commission reports that roughly 87 percent of the containers received in Prince Rupert were hauled by rail to the U.S., mostly to Midwest states.

As more and more bulk cargo, such as wheat, coal, potash and refined petroleum, is shipped overseas, those products are leaving the docks in British Columbia, not Washington.

Canada has no Harbor Maintenance Tax, which is assessed on ocean-going imports that land in U.S. ports. It pays for maintenance dredging of harbors and waterways, but needs to be changed to make American ports more competitive.

The stakes are growing each day. Washington can’t afford to lose market share internationally. We have more than 25,000 maritime related jobs with a $4.6 billion a year in economic impacts.

Finally, while other states are taking advantage of the surge in LNG production exports, Washington is not. We must recognize that investments in safe petroleum facilities are not automatically bad and put off limits.

Washington’s elected officials must find ways to upgrade our state’s harbors, docks and roadways, streamline project permitting, and look at other ways to encourage trade.

Don C. Brunell is a business analyst, writer and columnist. He retired as president of the Association of Washington Business, the state’s oldest and largest business organization, and now lives in Vancouver. He can be contacted at theBrunells@msn.com.


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website https://www.kentreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in Opinion

Robert Whale can be reached at robert.whale@soundpublishing.com.
Grappling with the finality of an oncologist’s statement | Whale’s Tales

Perhaps my brain injected a bit of humor to cover the shock. But I felt the gut punch.

Cartoon by Frank Shiers
Legislature back in session next week | Cartoon

State lawmakers return Jan. 8 to Olympia.

Cartoon by Frank Shiers
Santa doesn’t drive a Kia | Cartoon

Cartoon by Frank Shiers.

Cartoon by Frank Shiers
Salute to veterans | Cartoon by Frank Shiers

On Veterans Day, honor those who served your country.

File photo
Why you should vote in the upcoming election | Guest column

When I ask my students when the next election is, frequently they will say “November 2024” or whichever presidential year is coming up next.

Robert Whale can be reached at rwhale@soundpublishing.com.
Here’s a column for anyone who loves their dog | Whale’s Tales

It is plain to me in looking at dogs small and large that a decent share of them are exemplars of love on Earth, innocents who love unconditionally and love their chow.

Robert Whale can be reached at rwhale@soundpublishing.com.
Please protect your children from BS spreaders | Whale’s Tales

Among the most useful things I studied in college were debate, and… Continue reading

Email editor@kentreporter.com.
It’s time to change Kent’s City Council elections to districts | Guest column

If you were asked who your city councilmembers are, would you have an answer?

Don C. Brunell is a business analyst, writer and columnist. He is a former president of the Association of Washington Business, the state’s oldest and largest business organization, and lives in Vancouver. Contact thebrunells@msn.com.
Dear government: Hold your horses when regulating trucks | Brunell

Next to gasoline and diesel, natural gas also has the greatest number of refueling stations.

Cartoon by Frank Shiers
Mariners get red hot | Cartoon

Cartoon by Frank Shiers