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Rail News Home Intermodal

10/27/2008



Rail News: Intermodal

West Coast port volume drop likely to worsen in next decade, study says


Cargo volumes at West Coast ports will continue to decline because of higher intermodal transportation costs. That’s the latest forecast in a study conducted by Drewry Shipping Consultants, a United Kingdom-based maritime advisory firm.

The U.S. Pacific Coast will lose its leadership position in the import cargo market because it’s cheaper to transport goods via Gulf Coast and East Coast ports, according to the study.

The "complacency of inland transport providers," especially U.S. railroads, is driving the shift, the study claims. Although railroads continue to invest in infrastructure, the nation’s rail system is faced with a tightening market and rising demand.

"Railroads have chosen to up their prices rather than invest in significantly more capacity, in the mistaken belief that they had a captive market," said Drewry Supply Chain Advisors’ Philip Damas in a statement.

The West Coast cargo decline likely will intensify during the next decade, with intermodal costs continuing to rise and all-water costs continuing to fall, the study predicts.


Contact Progressive Railroading editorial staff.

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