Digital Edition

December 10 2018

Issue link: https://jocdigital.uberflip.com/i/1057592

Contents of this Issue

Navigation

Page 13 of 63

14 The Journal of Commerce | December 10 2018 www.joc.com International Maritime AT THE CENTER of New York and New Jersey's push to boost container- on-barge use, Red Hook Terminals is looking to position itself as the hub of a low-cost, efficient regional barge service that can replace trucked con- tainers, especially in and out of the vast New York consumer market. The port's smallest terminal — with cargo growth that outstripped the port as a whole last year but lags it slightly this year, according to Red Hook Terminals — believes barges can help alleviate the expected pres- sure on the port's four main, New Jersey-based terminals and area high- ways, as port cargo volumes and area congestion increase. Authorities say trucks carry about 90 percent of the cargo entering or leaving New York City, and the port's annual cargo volume is expected to increase by more than 50 percent by 2026. And while the New Jersey ter- minals are about 10 miles outside the city, Red Hook is the only terminal at its center — a location from which some shippers, among them Heine- ken, already are reaping the benefits. "When you start looking at the future of the port and the future of the region, congestion is going to be a major disruptor to economic growth if there is not another way of bringing goods in and out of the city other than truck," said Michael T. Stamatis, president and CEO of Red Hook Ter- minals, which operates that Brooklyn terminal. Stamatis recently signed a five-year lease on the terminal, with an option to extend it by five years. More use of barges, he said, "has to happen because it's just not sustainable to move 90 percent of the goods into the city by truck." Although the concept has been discussed, and pursued, for years, its progress has been slow. Barges carried only a tiny proportion — measured in the tens of thousands — of the 4.8 million loaded TEU handled by the port in 2017. Yet last month's creation of a coalition of port stakeholders by the Port Authority of New York and New Jersey and New York City government officials to explore and promote barge use — known as the North Atlantic Marine Highway Alliance — has put new scrutiny on the strategy. So too did the July announcement by New York City officials that barges would play a key part in a $100 million plan to reduce truck traffic by pursuing other ways to move freight in and out of the city. Stamatis said a barge carrying several hundred containers could be moved in less than a day from discharge at a New Jersey terminal to Red Hook, with actual travel time on the water of about two hours. That would cost about $2,500 to $3,000 for a barge that could hold 400 containers — less than $10 each — with a truck fee on top to move each container to its destination in New York, Stamatis said. By comparison, moving a con- tainer by truck from the Port of New York and New Jersey to Sunset Park, Brooklyn, would cost about $750 to $800, with the trip taking between one hour and 2 1/2 hours, depending on the traffic, said Tom Adamski, agent for First Coast Logistics. He estimated that trucking the container from Red Hook to Sunset Park could cost $250 to $400. The 80-acre Red Hook terminal, with a 5,500-foot berth and a 42-foot depth, currently takes vessels of up to 4,000 TEU, but could take larger ships, Stamatis said. The terminal, with an annual capacity of 200,000 TEU, handled 110,000 TEU in 2017, a 9 percent increase from 2016, and is on track for a 3 to 5 percent increase this year, Stamatis said. The terminal is host to two services, a CMA CGM global service that calls in Europe, Australia, and New Zealand; and a Seaboard Marine service that sails to and from South America, the Carib- bean, and Central America. In 2016, Red Hook began putting together a cross-harbor barge service linking its terminal with Port Newark NY barge hub? Red Hook touts container barges as a means to ease road congestion By Hugh R. Morley "Congestion is going to be a major disruptor to economic growth if there is not another way of bringing goods in and out of the city other than truck." The Red Hook terminal, with an annual capacity of 200,000 TEU, handled 110,000 TEU in 2017, a 9 percent increase from 2016. Shutterstock.com Importing & Exporting | Ports | Carriers | Breakbulk | Global Logistics

Articles in this issue

Links on this page

Archives of this issue

view archives of Digital Edition - December 10 2018