Issue 459 May 17, 2004

NY-NJ Freight Volume Grows, but not Port Footprint

Trade statistics for 2003 indicate that the Port of New York and New Jersey, the largest on North America's East Coast, saw a record 8 percent annual increase in container volume from the previous year. The hike is the largest in ten years of steady increases in shipments, from 2 million "twenty foot equivalent" units in 1994, to 4 million in 2003. The port moves over $100 billion in cargo annually.  

  The numbers are especially impressive given that large construction projects, such as improved rail facilities and upgrades to Howland Hook are presently underway. The numbers also indicate that upgrades on Staten Island and in Bayonne and other local sites are smart investments since demand for freight movement in our region is likely to steadily increase for years to come.

   While increased shipping is economically beneficial, the data indicates that freight coming through the Port of NY/NJ may be disproportionately spilling onto the region's roads. The numbers show that on-dock intermodal rail activity in 2003 grew by only 1.1 percent. In other words, expanded trade may be taking a toll on the region’s roads as increased truck traffic.

   Port officials have recognized the problem, and are presently working to invest more in connecting barge and rail facilities. By 2020, they aim to double rail’s share of container volume to 25 percent of total movement and to have 20 percent shipped by barge, a drastic increase from the 2 percent now shipped on regional waterways. Rick Larrabee, Port Authority's director of port commerce, told the Journal of Commerce recently that increased pressure to reduce truck traffic jams and environmental opposition made increased rail and barge shipping an obvious choice, "Our goal is to have on-dock rail at all our facilities," he said.

  Other good news is that the Port Authority is making improvements to the ports without significantly expanding their footprints. A few years ago, agency officials were saying that existing port facilities needed an additional 1,200 acres to meet demand. But more stacking of containers, increase rail facilities into port sites, and technological improvements are allowing the port to grow up, rather than out.
  It should be noted that one of the goals of the Comprehensive Port Improvement Plan (CPIP), a massive regional port planning study presently underway, is to "encourage the transfer of landside cargo from truck to railroad, barge and possibly coastal shipping." This 60 year "green port" plan will likely further the port’s reliance on freight rail and inland and coastal barges.
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