The Port of Oakland reached an all-time high for container volume at the end of 2016. Growth continues to soar at the port, and loaded containers account for 52 percent of all volume. Check out what enabled the Port of Oakland to set the record and how other West Coast ports can recover and do the same.
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Situation: West Coast Ports Are Recovering from the Recession
Image via Flickr by Ingrid Taylar
The Port of Oakland services about 20 miles of waterfront in Oakland, California. It also oversees container volume at the Oakland International Airport and the Oakland Seaport. Thanks to recent improvements and innovations, the port has broken its record for container volume in a single year. It handled 1.83 million containers. That’s 1 million containers more than the port’s previous record in 2013. The containers were 20-foot equivalent units.
Fees paid by Oakland’s marine terminal tenants are calculated based on container volume. The increase in volume means the port has increased its profits, despite consolidating five terminals to four in 2016. One of the Port of Oakland’s biggest losses was the bankruptcy of Ports of America and MSC subsidiary TIL. They filed for bankruptcy and shifted volume to the Port of Los Angeles, Long Beach, and Tacoma. Despite this loss, the Port of Oakland still appears to have recovered.
Approach: Improve the Port of Oakland’s Infrastructure
Container volume has been down at ports around the world for the past decade. The Port of Oakland’s dedication to improvement is the reason why it has been able to recover more quickly than other West Coast ports. Executives at the Port of Oakland have big plans for 2017 to drive more cargo volume to the port and build on the previous year’s momentum.
The Port of Oakland has scheduled the following construction projects:
- Expand warehousing space by 250,000 square feet.
- Build a Seaport Logistics Complex spanning 440,000 square feet.
- Build a Cool Port refrigerated warehouse that measures 283,000 square feet and can accommodate an additional 30,000 chilled containers.
- Operate six new cranes that are 26 feet higher than standard cranes and can help with unloading bigger ships.
Impact and Advantage
Like most other West Coast ports, the Port of Oakland had a hard time navigating labor disputes and slow economic growth in the U.S. between 2008 and 2015. Even though the port closed Oakland’s Outer Harbor last year, lost a few major tenants, and consolidated its terminals, the port is now thriving and handling more container volume than ever before. Executives are hopeful that this trend will continue in 2017.
The new cranes at the Port of Oakland will enable the port to receive larger ships and further increase its cargo volume. Ports that do not have large cranes yet will continue to lose customers, as larger container ships are a growing trend because of the increased capacity. Executives at the Port of Oakland plan to stay ahead of the trend to draw in new customers and continue to grow. Ports that aim to increase container volume like the Port of Oakland need to build larger cranes, too.[/show_to]
