THE recent news of Geneva-based carrier MSC taking a long-term lease with Hanjin's Total Terminals International at Long Beach's Pier T could affect container volumes at Port of Oakland.
Oakland's terminal operator, Ports America, signed a 50-year concession and lease agreement in a joint venture with Terminal Investments Ltd in 2009 to operate at the Outer Harbour Terminal, a company affiliated with MSC.
However, this US$2.5 billion deal was based upon Ports America's expectation of MSC as a long-term anchor partner using Oakland as a primary West Coast gateway for intermodal cargo. The carrier would avoid congestion and reduce sailing time from Asia by a day going to the more northerly California port. But with its switch to Port of Long Beach, the volumes two million TEU growth expected appears unlikely.
The Oakland terminal handled 385,000 TEU during 2012 which was up from 250,000 TEU before Ports America took over management supported by MSC input, its third largest carrier in 2012 increasing throughput by six per cent year on year to 140,000 TEU.
Previously, MSC were unable to make Long Beach an alternative due to vessel size restrictions at the Gerald Desmond Bridge and Pier A terminal's limited on-dock rail capacity which led to higher trucking fees to shuttle intermodal containers downtown, according to Ports America business plan leaked in an email.
Now the MSC has made calls by its 13,000-TEU vessels at Pier T, the terminal hopes to increase volume by 50 per cent from its trade, said Total Terminals.
This will help to win back trade it lost when China Shipping departed from neighbouring Port of Los Angeles which would significantly boost Long Beach's turnover at seven million TEU annually from 2012's 6.05 million TEU.
Despite citing its main driver growth as Mac's business a recent statement said that MSC container volumes should not be negatively impacted by its recent launch at Port of Long Beach.
Ports of America officials declined to comment on the carrier's strategy at Long Beach or its commitment to Oakland, but did say its largest customer in 2012 was Taiwanese carrier Yang Ming.
PORTS
07 March 2013 - 20:40
MSC move to Long Beach puts Oakland's container throughput at risk
THE recent news of Geneva-based carrier MSC taking a long-term lease with Hanjin's Total Terminals International at Long Beach's Pier T...
PORTS
07 March 2013 - 20:40
MSC move to Long Beach puts Oakland's container throughput at risk
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