USA: Jones Lang LaSalle Announces Fourth Annual Seaport Report

Competition for market share of inbound shipping remains fierce among U.S. ports, especially as the east coast gears up for an expanded Panama Canal and trade flows continue to shift among developed and emerging countries, according to Jones Lang LaSalle’s fourth annual seaport report.

As reported in the firm’s earlier studies, commercial real estate surrounding major U.S. seaports continues to outperform the broader industrial market. The report, which analyzes the health of major domestic container seaports and their surrounding real estate, also reveals that:

-Exports are creating inland development opportunities – U.S. exports are now creating back-haul opportunities and are driving new connections between domestic maritime ports, inland destinations and their surrounding distribution real estate markets

-Investment is pouring into ports – At least $13 billion of public investment is earmarked for port development in the next decade

-Limited options are available for large space users – Only 20 blocks of space are available for users requiring 250,000 SF within five miles of a major U.S. port

Developers, investment interests and supply chain executives remain optimistic about our nation’s seaports,” said John Carver, Head of Jones Lang LaSalle’s Ports Airports and Global Infrastructure (PAGI) group. “Influenced by an evolving maritime logistics industry, global and trade transformations such as the extension of the Panama Canal and growth of U.S. exports, they see a bright long-term future. Capital is being poured into seaport infrastructure from both the private and public sectors, responding to increased demand for port-centric warehouse and distribution space.”

Success for some ports is detailed in the Jones Lang LaSalle Port Index, which ranks ports on terminal operating and real estate market factors.* This year’s Index, for the first time in its 4 year history, has rated the Port of New York and New Jersey at the top of the list, followed closely by the ports of Los Angeles and Long Beach.

These three major seaports profit from several factors: first, they support vast local population centers; second, infill vacancy around the ports themselves remains tight and new development is prized; and lastly they are connected to less land-constrained, adjacent markets that facilitate ‘big-box’ logistics space,” said Aaron Ahlburn, Head of Industrial Research for Jones Lang LaSalle Americas.

Ports like Seattle, with strong demographics and a sizeable consumer base within a 24-hour trucking window have remained high on the Index. Similarly, others that are competitive shipping destinations, such as Houston, Miami and Baltimore, are moving to re-establish more solid industrial leasing and investment conditions. Ports that may not benefit from immediate large populations such as Hampton Roads, Jacksonville, Savannah and Charleston remain important throughput hubs to move goods and materials into other parts of the country.

East Coast ports such as Savannah, Charleston, Jacksonville and Baltimore have higher vacancy rates in their surrounding port markets, but have experienced the fastest growth in occupancy over the last 18 months. “We expect development to remain cautious as these markets continue to strengthen over the coming quarters,” said Ahlburn.

Many port markets that experienced significant ‘big box’ development prior to the downturn have not yet been able to burn off their excess construction. Houston, Charleston, Savannah and Jacksonville all have double-digit vacancy rates.

But there are fewer than 10 existing warehouse or distribution facilities of more than 500,000 square feet within a 15-mile radius surrounding the major seaports, according to the report, and fewer than 60 blocks greater than 250,000 square feet. For large users in markets such as Southern California or the Northeast, that means transporting cargo to inland destinations (inland ports) or bidding against other tenants for space.

This not only provides opportunities to develop smaller distribution centers or redevelop old or obsolete product, but also to evaluate supply chain requirements, adapt potential transportation routes, and assess competitive drayage options,” concluded Carver.

Press Release, October 12, 2012

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3rd International Congress Hydraulic Engineering Structures and Dredging

Russia’s leading maritime industry Media Group PortNews (www.portnews.ru) holds a traditional annual Congress “Hydraulic Engineering Structures and Dredging” in Moscow. 

The two-day Congress includes the 7th International Forum of Dredging Companies and the 3rd Technical Conference “Modern Solutions for Hydraulic Engineering”.

Infrastructure development is among the real sources of Russia’s economy growth. Construction of port facilities and new hydraulic engineering structures on the country’s inland waterways constitute an essential part of all infrastructure projects. It is important to take into account the best international practices to implement these projects effectively.

The program of the Congress will be devoted to the latest technologies for dredging and hydraulic engineering works. Speakers and delegates will refer to real projects to discuss specifics features of dredging works, as well as dedicated fleet and equipment involved.

To learn more about event, please, contact the organizing committee: snitko@portnews.ru

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