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THE
US gulf port of Houston is looking to transform
itself from a regional port that primarily
serves its immediate hinterland to one serving
the wider Midwest market, particularly now
as more shipping lines and shippers are
realising the benefits of shipping through
the port.
Port of Houston Authority vice president,
Ricky Kunz, told HKSG Group Media that a number of shipping lines
are now in discussions with the port about
adding direct calls at Houston this year,
particularly on the growing Asia-US All
Water trade lane.
"On March 16, 2012, the Port of
Houston Authority announced a new all-water
service connecting Asia and Houston via
the Panama Canal introduced by COSCO Container
Lines Americas, Inc. The Gulf of Mexico
Express service, designated as GME, brings
significant new business to Houston as demand
for direct services have grown as a result
of a strong regional economy and a fast-growing
population."
The expansion of the Panama Canal, which
is due for completion in 2014, is also expected
to bring more cargo to the port, opening
up the way for larger vessels from Asia
to more easily transit the canal and call
direct to Houston...
The fact that shipping lines will be
able to deploy larger vessels to call at
the port will also help to reduce shipping
costs for lines that will be able to enjoy
the advantage of economies of scale.
While Mr Kunz was careful to note that
the opening of the new, expanded canal would
not suddenly create a landfall of Asian
volumes for the port, he did say that inevitably
some cargo would drift to the gulf port.
"We will enjoy some [cargo], there
is no question about it. We're already getting
it. The east coast will get some, everybody
is going to benefit. But it is important
to remember that this is not suddenly going
to generate new cargo and it is not our
intention to go and pilfer that freight.
"We will just let it do that naturally.
Cargo is like water rolling down a mountain.
It is going to fall down the path of least
resistance and cost. If we're the winner,
it will move to us," he said.
Major beneficial cargo owners too are
seeing the benefits, with a number of key
shippers establishing distribution centres
in and around the Houston area.
So what is it that is bringing more attention
to the port?
Among a number of key factors the vice
president pointed out to us, is the potential
for cost savings for customers looking to
ship via Houston.
Mr Kunz said that a primary goal of the
port is to ensure freight is moved in the
most cost effective manner.
On top of the focus on cost, which of
course is hugely important in this difficult
economic environment today, the port boasts
other attractive features as well for customers
in Asia and beyond.
Blessed with a growing population in
its home state of Texas, a comparatively
robust local economy, "excellent highways"
and an increasing number of rail connections
linking the port to the wider United States,
Houston has enjoyed healthy growth in recent
years in relation to many of its peers.
This link to the wider US market, particularly
for shipments from Asia, pits the Port of
Houston up against ports on both the east
and west coasts of the country, in addition
to the Port of Vancouver across the border,
which also claims to offer competitive connections
to key cities in that Midwest catchment
area.
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