Reada also: AFA Sponsors New Bill To Reduce Airport Truck Congestion

Airports have long benefited from federal funding support for normal operations. Still, now, with an abundance of funding for capital improvement projects, airports will be busy with improvement projects of all types. More than $300 million was recently awarded to support projects throughout the U.S. Examples of upcoming projects planned for 2024 launches follow.

The Salt Lake City International Airport will be expanded as part of an Airport Redevelopment Program. While phase I is complete and phases II and III are underway, a massive phase IV is still waiting to launch. Projects with a cumulative cost projection of $683 million are still in the design phase. The Federal Aviation Administration has provided another $29 million to support this last development phase. One construction project will add a 300,000-square-foot concourse expansion. The new construction will include upgrades for all three levels of the concourse. The ground floor will have additional space for airport operations, storage and support services. The second level will be devoted primarily to passenger circulation and amenities. A total of 16 new gates and an additional 40,000 square feet of food and retail space will be added. Level 3 will provide dedicated public space, an outdoor deck for relaxation, and large electrical and telecommunications rooms. Also included will be utility upgrades, paving and repair work, and limited demolition services.

City officials are discussing plans to upgrade and expand Area 4 of the Barbara Jordan terminal at the Austin Bergstrom International Airport in Texas. The estimated cost for the planned expansions falls somewhere between $200 million and $375 million. The project is still in its planning phase and a solicitation for the required design work is scheduled for this year. Construction solicitations will follow as soon as the design is finalized. This effort will include reconfiguring and modernizing the terminal and redesigning the area where planes park to receive passengers and baggage. There will not be an increase in the number of gates, but ADA accessibility and security will be upgraded. A $14 million grant from the Federal Aviation Administration will be consolidated with other funding.

Officials at the St. Louis Lambert International Airport in Missouri will partner with airlines to fund a $331.6 million upgrading initiative. The projects that will be launched are part of a larger master plan that outlines approximately $3 billion in improvements. A new central utility plan is needed, and the design phase for that effort will begin this year. Upgrades are also planned for the airport’s mechanical and electrical systems, water main pumps, air conditioning and power distribution systems. The design and construction of the utility plant has been tagged with a cost estimate of $175 million. Another project being designed currently will relocate the airfield’s maintenance campus. The current campus is in a flood-prone area and cannot be used to store modern airfield equipment. Relocating the campus will cost $85 million. The design of a new de-icing pad will start mid-2024 and that effort currently has a cost projection of $53.2 million. 

The air traffic control tower at Tulsa International Airport in Oklahoma is nearing the end of its useful life, and a replacement project is planned. A new control tower and terminal radar approach control facility will be constructed at approximately $102 million. The project received funding for the design phase and is slated for this year. The new facility will meet current design and code standards, eliminate line-of-sight issues, provide space to accommodate all needed personnel in one place, and update all communication equipment. 

Officials at the Presque Isle International Airport in Maine will oversee a project to replace the passenger terminal. The planned $30 million construction project will deliver a 22,000-square-foot, two-story structure. A construction solicitation was slated for release early this year, and construction is scheduled to begin in June. The security and bag checking areas will be expanded and a new fire alarm system will be installed. The current terminal lacks a fire FAA-compliant system, which will be addressed. Other upgrades will include constructing a new airport ramp, expanding the rental car space, and installing universal electric vehicle chargers. There are also plans to relocate the airport’s museum to the new building. 

The Kahului Airport on the Hawaiian island of Maui received a $22 million grant from the Federal Aviation Administration that will be used to support a $62.3 million TSA security checkpoint project. A construction solicitation for the work was set for release near the end of last year. The new south checkpoint waiting lobby, screening lanes and TSA support spaces will be moved to the second floor of the new screening facility. The ground level will be designed to provide office spaces and tenant retail. A pedestrian bridge will connect the south checkpoint to a passenger hold room. This effort will significantly benefit the Kahului Airport, the second busiest airport in Hawaii. 

Airport upgrade activities in 2024 will be significant and demand for experienced contractors will be high. Airline travel is not only getting back to normal, but it is projected to represent significant increases.

Author Bio

Mary Scott Nabers is president/CEO of Strategic Partnerships, Inc., a full-service business development firm specializing in procurement consulting, government affairs, research, and public-private partnerships. She founded SPI after co-founding Gemini Global Group and, before that, serving as a statewide office holder in Texas.

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Last week, President Joe Biden signed the Federal Aviation Administration (FAA) Reauthorization Act, which earmarks $105 billion over four years to enhance air traffic control, airport operations, and infrastructure. This initiative aims to address constraints that have hindered traffic development, bolster system safety, and better prepare for future disruptions while accommodating growth.

Related Article: AFA Sponsors New Bill To Reduce Airport Truck Congestion

The package includes $19.35 billion for airport infrastructure improvement grants, with a portion dedicated to enhancing airfreight capabilities. “This is a major step forward in addressing the cargo congestion problem that has existed for quite some time at many airports across the country,” said Bob Imbriani, President of the Airforwarders Association (AfA).

During the pandemic, freight forwarders often faced long wait times at airports, sometimes up to seven hours. Despite normalized volumes, reports indicate that wait times still average around 2.5 hours. “This legislation is music to our ears,” said Brandon Fried, the AfA’s Executive Director.

In previous funding rounds, airlines received $25 billion of the $115 billion they requested from Washington, with no mention of cargo. Recognizing the need for dedicated advocacy, the AfA and the National Customs Brokers and Forwarders Association of America (NCBFAA) surveyed over 400 stakeholders in the air cargo sector, producing a 65-page white paper that successfully garnered Congressional support.

The legislation mandates the General Accountability Office to conduct a comprehensive assessment of U.S. air cargo operations over the next year. Although the exact allocation for air cargo improvements is not yet clear, estimates suggest $4 billion to $6 billion may be required, according to airport consultants involved in the project. Challenges vary by airport, including outdated road systems, labor issues, and antiquated technology.

A key objective of the legislation is to alleviate the overburdened air traffic control system. Last summer, IATA noted that U.S. airlines had to reduce schedules by 10% due to a shortage of traffic controllers. Airlines for America reported in January that the number of controllers was 3,000 short of FAA targets, 10% lower than in 2012.

Recruiting more traffic controllers could lift flight restrictions at airports like Washington National and improve aviation safety—a growing concern following recent incidents and near-misses, as well as quality issues at Boeing. The legislation also calls for advanced airport surface technology to prevent collisions.

Additionally, the legislation permits Boeing to extend production of its B767 freighter for another five years, potentially increasing demand for the aircraft in the near future.

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Red also: Louis Region Poised To Join One Of The World’s Most Comprehensive Port Networks

Released on May 15 during the annual Freight Summit at FreightWeekSTL 2024, the Priority Projects List is curated by the Freight Development Committee of the St. Louis Regional Freightway. This committee includes representatives from the Illinois and Missouri Departments of Transportation (IDOT and MoDOT), the East-West Gateway Council of Governments, various transportation modes, the manufacturing and logistics sectors, and academia.     

Among the completed projects are the $222 million replacement of the Merchants Bridge and the $278 million improvement of Interstate 270 from James S. McDonnell Boulevard to Bellefontaine Road. These projects were among the highest priorities since 2016.

Kirk Brown, Region Five Engineer for IDOT, highlighted key projects such as the $496 million Chain of Rocks Bridge and improvements to Illinois Route 3. Tom Evers, Assistant District Engineer for MoDOT, discussed the recently completed I-270 North Project and upcoming projects including the I-70 improvements between Wentzville and Warrenton, slated to start in early 2025.

The largest project on the list is the new terminal at St. Louis Lambert International Airport, a $2.8 billion investment. The collaborative efforts between IDOT, MoDOT, and other regional partners are crucial for advancing these projects, according to Mary Lamie, who leads the St. Louis Regional Freightway.

Lamie noted the region’s strong aerospace sector and its significant contributions to the national supply chain. Future investments will also support the region’s top ranking as the most efficient inland port in the nation, enhancing access to barge terminals and industrial parks.

The St. Louis Regional Freightway was established in 2014 by Bi-State Development to support freight movement and infrastructure projects in the region. The Priority Projects List is an annual tool used to advocate for critical infrastructure improvements, reflecting unanimous support from the Freight Development Committee.

For more information and detailed fact sheets on the 2025 Priority Projects, visit freightweekstl.com.  Comments on the list can be submitted by email to MCLamie@TheFreightway.com until August 1.

 Link to List

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Read also: Setting Cargo Records At Port Hueneme

Taking place on May 2, 2024, at the FATHOMWERX lab within the Port of Hueneme, the 11th annual World Trade Week event attracted nearly 100 participants from around the world with vested interests in global trade.

Drew Rodriguez, serving as this year’s emcee, guided the proceedings, while Celina Zacarias, President of the Oxnard Harbor District, emphasized the significance of international trade to both the port and the broader region. Zacarias highlighted the Port of Hueneme’s pivotal role in facilitating global trade and its commitment to leveraging technology for enhanced efficiency and sustainability.

Kristin Decas, CEO & Port Director, provided a comprehensive overview of port operations, emphasizing recent developments and strategic partnerships aimed at fostering economic growth and environmental stewardship. Notably, Decas underscored the importance of international collaboration, citing recent initiatives focused on green corridors and decarbonization.

Representatives from global trade partners, including Mexico, Lithuania, Hong Kong, and the United Kingdom, shared insights into their respective trade ecosystems and opportunities for investment and collaboration. Ambassador Ricardo Santana highlighted the growing trade partnership between Mexico and California, while Mantas Zamzickas emphasized the burgeoning collaboration between the Port of Hueneme and the Port of Klaipeda in Lithuania.

Keynote speaker Caroline Kaufman, Industries Team Lead at the International Trade Administration, highlighted the Department of Commerce’s commitment to strengthening supply chains and promoting economic competitiveness. Kaufman emphasized the crucial role of ports like the Port of Hueneme in facilitating seamless trade operations.

A panel discussion moderated by Simona Racek focused on the integration of AI in international trade operations. Panelists, including Todd Smith, Vincent Iacopella, and Ray Bowman, shared insights into how AI technologies are transforming trade practices and enhancing efficiency.

The event concluded with the presentation of special awards by the Oxnard Harbor District Board of Commissioners, recognizing companies that have made significant contributions to exports through the Port of Hueneme.

Overall, the Port of Hueneme’s World Trade Week event served as a platform for meaningful dialogue and collaboration, underscoring the importance of embracing innovation and technology in navigating the complexities of global trade.

The post Navigating Global Trade Trends: Port of Hueneme Showcases Supply Chain Innovations and AI Advancements during World Trade Week appeared first on Global Trade Magazine.

The dominance of these ports, which handle 86% of U.S. import traffic, underscores the resilience of the world’s largest economy. Despite a slight dip from February’s growth rate of 26.5%, March’s 19.2% increase in inbound containers reaffirms the ongoing strength of economic momentum.

McCown emphasized the sustained growth trajectory, pointing out that the trailing three-month figure shows a substantial 17.8% increase compared to the previous year. This growth, unaffected by the timing impact of events like the Chinese New Year, reflects underlying economic vitality, with comparisons now less influenced by pandemic-related disruptions.

In March, total import volumes reached nearly 1.82 million TEU (twenty-foot equivalent units), marking the first turnaround in seven months for ports on the east and Gulf coasts. These ports outpaced their Pacific coast counterparts, growing at a rate of 21.9% compared to 16.2% growth on the west coast.

Leading the pack, Los Angeles retained its position as the country’s primary import gateway, handling just under 380,000 TEU with growth slightly below the market average at 18.6%. New York & New Jersey followed closely, experiencing a growth of 19.6%, while Long Beach, although third in volume, exhibited the slowest growth among the top ten ports at 8.4%. Notably, Oakland emerged as the fastest-growing port, with volumes soaring by 38.4% year-on-year.

In addition to the surge in imports, U.S. exports continued their upward trajectory, growing by 7.6% year-on-year to reach 930,500 TEU. Los Angeles surpassed Houston as the leading export port, with a substantial 47.3% year-on-year increase.

However, the performance across ports varied, with some witnessing declines or stagnation in export volumes. Despite Houston’s strong growth, Long Beach experienced a significant decline of 21.3% compared to March 2023, while Norfolk and Charleston remained relatively flat.

Analyzing the data over a five-year period, McCown highlighted the disparity among ports, with Houston exhibiting the strongest growth since pre-pandemic levels in March 2019, while Seattle/Tacoma lagged behind with negative growth rates.

The surge in inbound containers and the upward trajectory of exports underscore the resilience and vitality of the U.S. economy in 2024, reflecting positive trends in global trade and commerce.

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“Collapse of the Francis Scott Key Bridge in Baltimore is a stark reminder of the fragility of our infrastructure and the critical need for resilience in the face of unexpected events.” said Christian Roeloffs, cofounder and CEO of Container xChange, an online global container logistics platform, based in Hamburg, Germany.

“As we navigate the aftermath, we are reminded that the container logistics industry centers around the critical need for robust risk management and resilience in supply chain operations. It highlights the importance of contingency planning, diversified routing options, and the integration of real-time tracking and analytics to mitigate the impacts of unforeseen events. This incident serves as a reminder that infrastructure vulnerabilities can lead to disruptions, and being prepared with flexible, adaptive strategies is essential for maintaining continuity in the face of challenges.” Roeloffs added.

While the full extent of the impact is yet to be determined, the collision is likely to have far-reaching consequences for the Port of Baltimore and its role in the regional and national economy.

The container vessel “DALI,” was operated by Synergy Group and time-chartered by Maersk. Maersk has confirmed that no crew or personnel were onboard the vessel at the time of the incident.

Areas of Implications to look for in the coming weeks:

• Supply Chain Disruptions: The collapse of the Francis Scott Key Bridge could significantly disrupt the flow of goods in and out of the Port of Baltimore, particularly automobiles and crude oil. The port is a crucial gateway for specialized cargo and bulk handling, serving as a key link in many supply chains. Delays in cargo movement could lead to inventory shortages, affecting businesses that rely on timely deliveries, like the automotive industry which requires assemblies coming from different parts of the world.
• Transportation Costs: Companies should prepare to face higher transportation costs as they are forced to seek alternative routes to bypass the affected area. These additional costs could result in increased prices for goods, impacting both businesses and consumers.
• Regional Impact: The Port of Baltimore is a vital economic hub for the region, supporting thousands of jobs and businesses. The disruption caused by the bridge collapse could have a ripple effect on the local economy, leading to job losses, reduced business activity, and potentially lower consumer spending.
• Consumer Impact: End consumers could potentially experience delays and price increases for certain products as a result of the bridge collapse, as it could take weeks, if not months, to resume operations at the port. Products that rely on timely delivery, such as perishable goods or time-sensitive materials, could be particularly affected.

 Impact on Container Movement

The collapse of the Francis Scott Key Bridge has led to the suspension of traffic at the Port of Baltimore, a key gateway for container shipping. With more than 40 ships remaining inside the port and at least 30 others signalling their destination as Baltimore, the incident has disrupted the movement of containers. As Baltimore is one of the smallest container ports on the Northeastern seaboard, handling 265,000 containers in the fourth quarter of last year, the flow of containers may be redirected to larger ports such as the Port of New York and New Jersey. This redirection could result in increased congestion and delays at these ports, affecting the timely delivery of goods and potentially leading to inventory shortages.

Impact on Port Operations

The harbor is one of the busiest in the country and an important hub for shipping on the US east coast, especially in transporting road vehicles. It also handles farming, construction machinery, and coal, according to a Maryland government website. Port traffic was suspended until further notice following the bridge collapse.

The Port of Baltimore serves as a vital link for raw materials and manufactured goods, facilitating trade into and out of Maryland, the mid-Atlantic region, and the Midwest United States. It ranks at or near the top of all U.S. ports in handling farm and construction machinery, automobiles, imported forest products, imported sugar, imported gypsum, and exported coal. The port’s infrastructure, including a 50-foot-deep channel and large cranes, allows it to accommodate massive containerships, such as the Evergreen Ever Max, which arrived at Seagirt Marine Terminal in mid-August 2023.

While the magnitude of the impact is yet to be determined, the disruption in traffic and operations at the port could lead to significant economic losses. The port generates nearly $3.3 billion in total personal income and supports over 15,000 direct jobs, with an additional 139,000 jobs connected to port work. The suspension of port activities could result in financial hardships for businesses and individuals dependent on port-related activities.

The post Baltimore Bridge Collapse: Significant Impact on Local Port and Economy, Limited Effect on US Economy Overall appeared first on Global Trade Magazine.

November 2023 U.S. container import volumes decreased 9.0% from October 2023 to 2,099,408 twenty-foot equivalent units (TEUs) (see Figure 1). Versus November 2022, TEU volume was higher by 7.4%, and up 10.4% from pre-pandemic November 2019. The growth in import volume over the first eleven months of 2023 is within 4.0% of the same period in 2019.

Figure 1. U.S. Container Import Volume Year-over-Year Comparison

“November has traditionally been a weaker month than October and while the decline is steep, it is consistent with other years’ performance,” said Chris Jones, EVP Industry at Descartes. “The impact of the drought in Panama is finally hitting as volumes at the Gulf Coast ports (see Figure 2) and, in particular, the port of Houston(-26.7%) are considerably lower than the overall decline. East Coast ports experienced a significant decrease as well.”

Figure 2: U.S. Gulf Coast Container Imports for 2023

The November report is Descartes’ twenty-eighth installment since beginning its analysis in August 2021. To read past reports, learn more about the key economic and logistics factors driving the global shipping crisis, and review strategies to help address it in the near-, short- and long-term, visit Descartes’ Global Shipping Resource Center.

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The Wall Street Journal held its annual “US Airport Rankings” and the 2023 edition has arrived. The Journal examines the nation’s 50 busiest airports using metrics such as value, convenience, and reliability among others. In total, roughly 30 factors are evaluated per airport and then complemented with traveler survey input. Once the numbers are tabulated the airports are then divided into large and midsize categories. 

Phoenix (PHX)

This year’s number one large airport is Phoenix Sky Harbor International Airport. Flight delays are few, the weather is nearly always great, and perhaps best of all, Sky Harbor is easy to get to. But in addition to favorable weather and first-class infrastructure, it also helps that Sky Harbor is home to American and Southwest Airlines which carry up to 75% of the airport’s passengers. These two airlines score well in reliability and the average taxi-out time (from when a plane leaves the gate to takeoff) is under 15 minutes. Some of the Journal’s worst-rated airports featured taxi-out times north of 26 minutes. 

Sky Harbor’s overall score was 63.4 and Minneapolis-St. Paul International Airport came in a close second at 63.2. There was no airport on the list that scored a perfect 100. The fact that 63.4 was the top score in the large airport category shows how entangled and complicated it can be running a 24-hour business where users seek ease of use, reliability, and great customer service. 

San Jose (SJC)

San Jose Mineta International Airport took home the crown in the midsize category. The Northern California airport scored 71.2 and lived up to its tagline – Fly Simple. SJC boasts best-in-industry on-time performance, expedited security lines, as well as short walks to nearly everything a traveler could ask for within the airport.   

Last year’s midsize winner, Sacramento (SMF), finished a close third with 70.0 points while San Antonio surprised the group finishing second with a score of 70.4. 

Northeast Woes

The two worst-performing large airports were Newark Liberty International Airport (EWR) and John F. Kennedy International Airport (JFK) out of New York. Departure delays and weak infrastructure unable to handle heavy arrivals dragged the two to dismal rankings – 43.6 for JFK and 37.6 for EWR. JFK is in the midst of significant upgrades while Newark is hoping its newly redesigned Terminal A will help to ameliorate some of the more persistent issues. The greater New York/New Jersey area certainly deserves better.   

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SC Ports President and CEO Barbara Melvin emphasized the importance of extending economic benefits beyond daily operations and directly into the community. This substantial donation aims to support the Lowcountry Food Bank’s mission in combating hunger and making a direct, positive impact on thousands of people in need.

The Lowcountry Food Bank, which distributed 33 million meals to over 200,000 residents in the previous year, plays a vital role in ensuring equitable access to healthy food for the community. SC Ports’ ongoing support aligns with the organization’s commitment to providing relief to the most vulnerable residents facing economic hardships.

This marks the fourth consecutive year that SC Ports has contributed to the Lowcountry Food Bank, showcasing the company’s dedication to fostering community well-being during the holiday season and beyond.

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In contrast, loaded import volumes at Port Houston for October experienced a 4% decrease compared to the previous year, contributing to a 7% year-to-date decline. However, when compared to pre-pandemic levels, total container imports have surged by 32% through October, showcasing a substantial recovery. The total container volumes for the first ten months of the year reached 3,201,958 TEUs, a marginal 4% decrease from last year’s record volumes.

Port Houston remains committed to operational efficiency, focusing on the Bayport and Barbours Cut Container Terminals. The recent completion of Wharf 6 at Port Houston’s Bayport Container Terminal, equipped with advanced Neo-Panamax ship-to-shore cranes, signals the port’s dedication to enhancing terminal capacity. The addition of berths aims to facilitate smoother operations for both import and export customers relying on Port Houston’s container terminals.

Roger Guenther, Executive Director at Port Houston, expressed excitement about the completion of the new wharf, highlighting it as a significant infrastructure investment reflecting the port’s commitment to creating a reliable and efficient terminal environment. The commissioning of Bayport Wharf 7 is scheduled for 2025, aligning with the completion of the reconstruction of Barbours Cut Wharves 5 and 6 in the same year. Additionally, channel expansions for safe navigation of Neo-Panamax ships are expected to be completed in 2024 for Bayport and in 2026 for Barbours Cut.

Despite a 7% year-to-date decrease in total tonnage compared to 2022, at 42,421,735 short tons, the port has seen a notable increase in auto import units, up by 50% in October 2023 compared to the same month in 2022. The port continues to adapt and invest in infrastructure to support its role as a crucial gateway for both imports and exports.

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