Increased Port Traffic Projected

[IMGCAP(1)]NEWARK-Cargo volume at the Port of New York and New Jersey reported flat growth in container activity in 2008, for the first time in 15 years. During 2008, total container traffic in the port was 5.27 million loaded and empty TEUs–20-foot equivalent units–compared to 5.30 million in 2007. The Authority says it expects this decreased activity to continue throughout 2009 as the full effect of the economic downturn is realized.

Over the long term, however, the Authority is projecting cargo growth at the port, and is making investments in express rail and other infrastructure to support this growth. “Despite the challenging economic environment, the Port Authority’s port facilities continue to outperform other major ports in North America, with container volume at the top 10 ports in North America declining by an average of 5% in 2008,” says Scott K. Perkins, managing director of corporate services at NAI Hanson. In addition, the Port Authority reports that its $246-million investment this year is helping to support more than 230,000 jobs.

One of the biggest challenges the port faces in the coming years is its inability to accommodate larger container ships, particularly those that will enter through the Panama Canal in 2014 when its expansion is complete. The Bayonne Bridge, which stands 151 feet over the Kill Van Kull tidal straight at its highest point, is too low to accommodate these ships. “In addition to dredging the waters to a 50-foot depth, the Port of New York and New Jersey announced last year that the raising or replacing of the Bayonne Bridge could be upwards of $2 billion,” Perkins tells GlobeSt.com. “The bridge is the largest obstacle facing growth in the port,” says Richard Larrabee, the Port Authority’s port commerce director. The Authority expects to complete a study by next summer on how to deal with the issue. Perkins tells GlobeSt.com that some of the preliminary discussions have involved replacing the bridge with a tunnel under the Kill Van Kull.