Obstacle Course

The unpredictable implementation of tariffs and the ongoing conflict between the U.S. and Iran have changed the state of the global economy and affected everything from the price of gasoline at the pump to the cost of a new car. Trade patterns for international shippers and the negative impacts of these issues have been felt at American seaports. However, it's not all doom and gloom, and ports have demonstrated resilience in navigating the geopolitical obstacle course.

The Port of Long Beach, for example, is moving forward with an ambitious multibillion dollar plan to build the "Port of the Future." The key to its dream of a major intermodal development is a tried-and-true one – the railway.

"To build the Port of the Future and double our annual cargo volumes to 20 million containers by 2050," says Dr. Noel Hacegaba, CEO of the Port of Long Beach, "rail must be part of the conversation. We're coming off a record 2025 with 9.9 million TEUs (20-foot equivalent units), and in August we handled 920,000 TEUs. That's our busiest August ever and the fifth busiest month in the port's 150-year history."

But to double cargo volumes, rail must play a dominant role since it would take too long and cost too much to double the port's real estate. "That means we have to densify, electrify and modernize," Hacegaba explains. "The Port of the Future has to be faster, reliable and zero emissions, so we're making a strategic decision to push more intermodal rail moves."

This story was originally published by The Maritime Executive. Read the full story at The Maritime Executive →