CSULB CITT 2010 Panama Canal Expansion Video


Uploaded by AMPCENTER on 23.10.2010

Transcript:
[ MUSIC ]
>> THE YEAR THE WORLD CHANGED WAS 1914.
IT WAS THE BEGINNING OF WORLD WAR I.
BUT WHILE MOST OF EUROPE WAS CONCERNED AND CONSUMED
BY THE GREAT WAR, ANOTHER EARTH SHATTERING EVENT OCCURRED FAR
SOUTH AND WEST OF THE CONTINENT IN CONFLICT.
THE PANAMA CANAL OPENED ITS LOCKS IN AUGUST OF 1914.
FOR THE FIRST TIME, AN ALL WATER CHANNEL BISECTED THE WESTERN
HEMISPHERE, A DREAM OF MORE
THAN 400 YEARS FINALLY HAVE BEEN REALIZED.
[BACKGROUND MUSIC] IN 1502, ON HIS FOURTH VOYAGE
TO THE NEW WORLD, CHRISTOPHER COLUMBUS SAILED FURIOUSLY
AND OBSESSIVELY ALONG THE ATLANTIC COAST
OF THE PANAMANIAN ISTHMUS SEARCHING IN VANE
FOR A CENTRAL CONVENIENT WATERWAY
TO THE OTHER SIDE OF THE GLOBE.
FAILING THIS MISSION, COLUMBUS SETTLED
FOR BEING THE FIRST EUROPEAN TO CONDUCT WORLD TRADE IN PANAMA.
HE EXCHANGED A FEW TRINKETS
FOR SEVERAL SOLID GOLD CHEST PLATE SHIELDS WORN
BY THE NATIVE PEOPLE.
IN THE FOLLOWING DECADE,
CONQUISTADOR VASCO BALBOA WAS STANDING ON A SUMMIT
IN THE PANAMANIAN HILLS WHEN HE BECAME THE FIRST EUROPEAN
TO VIEW BOTH THE ATLANTIC AND PACIFIC OCEANS AT THE SAME TIME.
EMOTIONALLY OVERWHELMED, BALBOA FELL TO HIS KNEES WEEPING
AND PRAYING IN TRIUMPHANT JOY.
DURING THE GOLD RUSH OF 1849, THOUSANDS OF 49ERS JOURNEYED
BY BOAT FROM THE AMERICAN EAST COAST TO PANAMA
AND THEN CROSSED THE ISTHMUS
TO BOARD SHIPS BOUND FOR SAN FRANCISCO.
BECAUSE THE MIDDLE AND WESTERN PORTIONS
OF THE AMERICAN FRONTIER WERE STILL LARGELY UNSETTLED
AND OFTEN HAZARDOUS, THE RACE
TO THE CALIFORNIA GOLD FIELDS WENT FASTEST THROUGH PANAMA.
IN RESPONSE TO PROSPECTOR DEMAND, A RAILROAD WAS BUILT
TO CROSS THE TREACHEROUS ISTHMUS IN THE 1850S.
BY MID 1881, A FRENCH COMPANY BEGAN SUPERVISING A TRAGICALLY
ILL-FATED PANAMA CANAL ENGINEERING EFFORT.
THE PROJECT STALLED AFTER ENDURING 8 DEVASTATING YEARS
OF TROPICAL DISEASES AND VARIOUS OTHER DISASTERS.
ALL FUNDS WERE TOTALLY SPENT BY 1889.
DURING CONSTRUCTION, AT LEAST 20,000 WORKERS WERE KILLED
BY A COMBINATION OF MOSQUITO-BORNE MALARIA
AND YELLOW FEVER, INTENSE RAINSTORMS, MAJOR MUDSLIDES
AND INDUSTRIAL ACCIDENTS.
FOR MANY YEARS, AMERICAN POLITICIANS HAD SOUGHT US
AUTHORITY OVER ANY POTENTIAL CANAL
WHICH WOULD TRANSECT CENTRAL AMERICA.
THE MONROE DOCTRINE WAS OFTEN CITED WHENEVER AMERICAN
DOMINANCE IN THE REGION WAS DISCUSSED OR ASSERTED.
UNCLE SAM'S MACHINATIONS CULMINATED IN 1903
WHEN PRESIDENT THEODORE ROOSEVELT USE GUNBOAT DIPLOMACY
AGAINST COLOMBIA WHILE SUPPORTING A PANAMANIAN
SEPARATIST MOVEMENT.
ROOSEVELT'S SUCCESSFUL STRATEGY ULTIMATELY INVOLVED PURCHASING
AMERICAN CONTROL
OF THE ABANDONED FRENCH CONSTRUCTION VENTURE.
SADLY, ANOTHER 5600 LABORERS PERISHED
BY THE TIME THE CANAL WAS COMPLETED
UNDER AMERICAN SUPERVISION IN 1914.
>> THE CANAL BECOMES AN EXTENSION,
SO THINKING ABOUT THE CANAL BECOMES AN EXTENSION
OF THE MANIFEST DESTINY ARGUMENT,
THAT IF THE UNITED STATES WAS DESTINED TO REACH THE PACIFIC
AND THEN IT DID, IF THE UNITED STATES WAS BASED IN PART
ON A GROWING SENSE OF ITSELF AS A MARITIME POWER AND IT WAS,
THEN HOW WAS-- WERE THE ATLANTIC AND THE PACIFIC
AND THE CARIBBEAN AND THE GULF OF MEXICO
AND THESE OTHER AMERICAN RELATED WATERS
TO BE CONNECTED WITH EACH OTHER.
SO REALLY THE CANAL IS--
THE CANAL IS VERY DEEP IDEA IN AMERICAN CONSCIOUSNESS,
THIS LINKING OF THE WATERS, POWERFUL THE WAY
THAT THE LINKING OF THE CONTINENT IN OCTOBER 1869 WAS
BY THE RAILROAD WHEN THE RAILROADS WERE COMPLETED.
[ BACKGROUND MUSIC ]
>> TODAY, THE TRADE WINDS BILLOWING
THROUGH PANAMA ARE ONCE AGAIN BLOWING SIDE BY SIDE
WITH THE WINDS OF CHANGE.
THIS TIME, THE PANAMANIAN PEOPLE ARE
IN CHARGE OF THEIR OWN DESTINY.
THEY HAVE VOTED OVERWHELMINGLY TO EXPAND THE CANAL.
THIS PROJECT WILL COST AN ESTIMATED 5
AND A QUARTER BILLION DOLLARS IN THE PROCESS
OF CONSTRUCTING A MUCH LARGER THIRD SET OF LOCKS.
THE NEW LOCKS WILL SIGNIFICANTLY INCREASE THE SIZE OF SHIPS
THAT CAN TRAVERSE THE CANAL.
CURRENT PANAMAX SHIPS, MEANING THE MAXIMUM SIZE SHIPS
THAT CAN TRANSIT THROUGH PANAMA ARE LIMITED TO FEWER
THAN 4,500 TEUS OR ROUGHLY 2,250 40-FOOT LONG CONTAINERS.
AFTER THE CANAL'S EXPANSION, SUPER SHIPS CARRYING 12,000 TEUS
OR 6,000 40-FOOT CONTAINERS WILL BE ABLE TO TRANSIT THE CANAL.
THE REPERCUSSIONS OF A LARGER PANAMA CANAL ARE ENORMOUS,
NOT ONLY FOR PANAMA BUT FOR MOST PORTS IN THE WESTERN HEMISPHERE.
NEW POSSIBILITIES EXIST IN THIS LATEST METAPHORICAL GOLD RUSH.
WHEN THE CANAL EXPANSION OPENS FOR BUSINESS
IN THE CENTENNIAL ANNIVERSARY OF 2014,
MUCH ABOUT GLOBAL LOGISTICS WILL HAVE CHANGED.
>> IF YOU THINK ABOUT IT OVER A LONGER TERM, 40 YEARS AGO,
TRADE WAS REALLY CONCENTRATED DOWN THE EAST COAST PORTS.
AND SO WHAT HAPPENED IN A RELATIVELY SHORT PERIOD OF TIME,
THAT TRADE SHIFTED TO THE WEST COAST PORTS WITH THE OPENING
UP OF THE ASIAN COUNTRIES YOU GOT THE TREMENDOUS GROWTH.
NOW, PEOPLE ON THE GULF AND PEOPLE
ON EAST COAST PORTS WANT A LITTLE BIT OF THE ACTION
AND THE WAY THEY CAN GET THAT ACTION IS IN FACT
IF THE CANAL IS WIDENED.
[ BACKGROUND MUSIC ]
>> FOR MORE THAN 3 DECADES, SOUTHERN CALIFORNIA BENEFITED
FROM EXPONENTIAL GROWTH IN TRANSPACIFIC TRADE.
A MASSIVE LOCAL CONSUMER MARKET ENCOURAGED INCOMING CARGO
TRAFFIC, WHICH LED TO BOTH HARBOR
AND WAREHOUSE FACILITIES EXPANSION.
THESE DEVELOPMENTS RESULTED IN THE SAN PEDRO BAY EMERGING
AS A CARGO DESTINATION OF CHOICE.
LARGE VESSELS WITH HUGE LOADS COULD DOCK IN THE DEEP WATER
OF LOS ANGELES AND LONG BEACH PORTS,
WHILE GIGANTIC CRANES RAPIDLY MOVE THEIR CONTAINERS
ON TO INTERMODAL TRUCKS AND TRAINS.
WELL DEVELOPED RAIL ACCESS FROM THE HARBOR TO THE INTERIOR MEANT
THAT FREIGHT BOUND FOR THE MIDWEST WAS TRANSPORTED
ON DOUBLE STACK TRAINS FOR THE LONG JOURNEY ACROSS THE COUNTRY.
AFTER BECOMING THE BIGGEST
AND THE BEST-EQUIPPED HARBOR COMPLEX, WITH THE CAPACITY
AND THE INFRASTRUCTURE TO MOVE GOODS ON TO MAJOR RAIL SYSTEMS,
THE SAN PEDRO BAY SETTLED INTO A PERIOD OF HEGEMONY.
HOWEVER, EVEN WITHOUT THE EXPANSION OF THE PANAMA CANAL,
NEW TRENDS ARE EMERGING THAT THREATENED
TO SIPHON AWAY SIGNIFICANT CARGO TRAFFIC
FROM THE POWERHOUSE PORTS OF LOS ANGELES AND LONG BEACH.
IN THE CANADIAN NORTHWEST,
THE PORT OF PRINCE RUPERT HAS BEEN EXPANDING ITS HANDLING
CAPACITY AND ENJOYS AN ADVANTAGE
BY BEING 700 NAUTICAL MILES CLOSER TO ASIA.
THIS CLOSER PROXIMITY REDUCES OCEAN SHIPPING TIME
BY A COUPLE OF DAYS.
PRINCE RUPERT IS SERVED BY AN EXPRESS CANADIAN RAIL SYSTEM
WHICH CAN DELIVER GOODS TO A CENTRAL POINT NORTH
OF THE US BORDER WITH A DIRECT RAIL SHOT
TO CHICAGO AND MEMPHIS.
THE CANADIAN GOVERNMENT IS FULLY BACKING
AND PROMOTING PRINCE RUPERT AS PART OF AN ASIA PACIFIC GATEWAY
AND CORRIDOR INITIATIVE.
THIS EFFORT SEEKS TO ATTRACT AS MUCH CARGO AS POSSIBLE
FOR THE EXPANDING CANADIAN FACILITIES.
>> THE PORTS OF SEATTLE AND TACOMA ARE ALSO CLOSER TO ASIA
AND ALSO DESIRE TO TAKE A LARGER SHARE OF THE CARGO
FROM THE FAR EAST THAT'S DESTINED FOR DELIVERY
BY RAIL TO THE MIDWEST.
INVESTMENTS OF NEARLY A BILLION DOLLARS HAVE OCCURRED
OVER THE PAST 15 YEARS TO IMPROVE THE SEATTLE
AND TACOMA PORT INFRASTRUCTURES.
MEXICO HAS BEEN DISCUSSED
AS A PACIFIC COAST COMPETITOR IN THE FUTURE.
AMONG THE PLANS AND DEVELOPMENT IS ONE TO UTILIZE THE PORT
OF LAZARO CARDENAS IN CONNECTION WITH AN EXPRESS RAIL NETWORK
TO TRANSPORT CONTAINERS DIRECTLY FROM MEXICO TO KANSAS CITY.
>> WE KNOW THAT MOST BIG SHIPPERS WILL LOOK
AT ALTERNATIVES.
THEY WENT TO THE FOUR CORNERS APPROACH
IN THE MID 2000S LOOKING AT A PACIFIC NORTHWEST,
A PACIFIC SOUTHWEST, A GULF AND THE EAST COAST PORT TO TRY
TO BALANCE THEIR CARGO FLOWS AND NOT JUST BE IN ONE PORT.
>> THE EXPANSION OF THE PANAMA CANAL WILL ALLOW SHIPS
TO TAKE [BACKGROUND MUSIC] SIGNIFICANTLY LARGER LOADS
FROM EAST ASIA TO US GULF PORTS AND PORTS
ON THE EASTERN SEABOARD.
GULF PORTS IN HOUSTON, NEW ORLEANS, MOBILE,
AND TAMPA NOW MAY LOOK MORE ATTRACTIVE TO SHIPPERS
WHO DESIRE MULTIPLE REGIONAL CONCENTRATIONS
OF WAREHOUSING ARRANGEMENTS.
IN THE SOUTH ATLANTIC SECTOR,
HANJIN SHIPPING IS CONSTRUCTING A FACILITY IN JACKSONVILLE,
FLORIDA WHICH IS SCHEDULED TO OPEN IN 2013.
PORT COMPLEXES IN SAVANNAH, GEORGIA, CHARLESTON,
SOUTH CAROLINA AND NORFOLK, VIRGINIA PRESENT POSSIBILITIES
FOR EXPANDED OR ADDITIONAL ALL WATER ROUTES
FROM EAST ASIA TO THE EAST COAST.
OF THESE, VIRGINIA IS BEST EQUIPPED
TO SERVICE THE LARGER SHIPS.
OCEAN ROUTES THAT KEEP CONTAINERS ON VESSELS
FOR THE ENTIRE JOURNEY REQUIRE MORE TIME
BUT CAN SAVE HANDLING COST COMPARED TO SAIL
AND RAIL COMBINATION ROUTES.
COST REDUCTIONS CAN AMOUNT TO AS MUCH
AS 1000 DOLLARS PER CONTAINER IF PATIENT SHIPPERS CAN AFFORD
TO WAIT FOR LONGER DELIVERY TIMEFRAMES.
THE PORT AUTHORITY OF NEW YORK
AND NEW JERSEY IS ALSO ANTICIPATING RECEIVING MORE
CONTAINER SHIPS DIRECTLY FROM CHINA VIA THE PANAMA CANAL.
A PROBLEM IN NEW YORK IS THE BAYONNE BRIDGE
WHICH LIMITS THE HEIGHT OF VESSELS HEADING
FOR CONTAINER TERMINALS IN NEW JERSEY.
EFFORTS ARE UNDERWAY TO DEEPEN THE CHANNEL
AND TO RESOLVE THE BRIDGE DILEMMA.
>> SO, THE WHOLE IDEA OF PUTTING THE DISCUSSION
AROUND THE PANAMA CANAL
IN A GLOBAL CONTEXT CAN VERY EASILY BE APPLIED
TO A REGIONAL SCENARIO FOR THE EAST COAST IN THE UNITED STATES,
THE ABILITY TO TAKE ON LARGER VESSELS, LONGER BERTH,
STEEPER DRAFTS [PHONETIC], CAPACITY OF CRANES AND SUCH,
IT'S GOING TO RESONATE ACROSS THE ENTIRE SUPPLY CHAIN
AND HAVE A PARTICULAR IMPACT NOT ONLY ON THE EAST COAST
OF THE UNITED STATES BUT THE GULF AS WELL.
[ BACKGROUND MUSIC ]
>> LARGE SHIPPERS WHO SEEK REGIONAL DIVERSIFICATION
FOR WAREHOUSING MAY DECIDE TO INVEST
IN SEVERAL POINTS OF DISEMBARKATION.
THIS STRATEGY ENCOURAGES COMPETITION,
LOWERS COSTS OVERALL, SPREADS RISKS AND PROVIDES INSURANCE
AGAINST ANY MEGA-PORT ACQUIRING A CONTROLLING MONOPOLY
ON GOODS MOVEMENT.
RAIL DEVELOPMENT IS CRITICAL FOR ANY PORT TO GROW
AND TO DISTRIBUTE DISCRETIONARY CARGO MORE
THAN 400 MILES FROM THE WATERFRONT.
WARREN BUFFETT'S BERKSHIRE HATHAWAY GROUP OWNS THE
BURLINGTON NORTHERN SANTA FE RAILROAD KNOWN AS BNSF.
BOTH UNION PACIFIC AND BNSF HAVE A LARGE STAKE
IN THE WEST COAST INTERMODAL SYSTEM
FOR INLAND CARGO DELIVERY.
BNSF CLAIMS INTERMODAL TRAINS FROM THE WEST COAST CAN CUT
AS MANY AS 9 DAYS OFF DELIVERY TIME TO THE EAST COAST COMPARED
TO ALL WATER PANAMA CANAL ROUTES.
>> JUST BECAUSE THE CANAL GETS EXPANDED DOESN'T CHANGE THE FACT
THAT THE SHORTEST AND FASTEST SHIPPING ROUTES BETWEEN ASIA
AND THE UNITED STATES IS BY THE WEST COAST.
THAT'S AN UNDISPUTABLE FACT.
AND AS SUCH, THE VAST MAJORITY OF FREIGHT THAT MOVES
BETWEEN ASIA AND THE UNITED STATES HAS ALWAYS MOVED
TO THE WEST COAST AND IT WILL ALWAYS MOVE TO THE WEST COAST.
NOW, IT IS A FACT ALSO THAT THERE HAS BEEN A LITTLE BIT
OF A SHEER SHIFT FROM THE WEST COAST TO THE EAST COAST
OVER ROUGHLY THE LAST DECADE OR SO.
BUT THAT HASN'T REALLY OCCURRED
BECAUSE OF THE MARKET FUNDAMENTALS
WHICH POTENTIALLY COULD BE AFFECTED
BY THE EXPANSION OF THE CANAL.
THE SHORT-- AGAIN, THE SHORTEST ROUTE
AND THE FASTEST ROUTE WILL ALWAYS BE
BY THE WEST COAST DESPITE WHAT HAPPENS WITH THE CANAL.
[ BACKGROUND MUSIC ]
>> EASTERN RAIL NETWORKS LACK THE INFRASTRUCTURE
TO DELIVER FREIGHT ON A MASSIVE SCALE
TO POINTS WEST, NORTH AND SOUTH.
HOWEVER, SOME OF THE RECENT TRANSPORTATION INVESTMENT
GENERATING ECONOMIC RECOVERY GRANT KNOWN
AS STIMULUS TIGER GRANTS HAVE PLANTED THE SEEDS
FOR MORE INTERMODAL RAIL DEVELOPMENT IN THE EAST.
THE RECIPIENTS OF THESE GRANTS NOW SEEK TO INCREASE THE NUMBER
OF DOUBLE STACK TRAINS PASSING THROUGH AREAS
SUCH US GULF PORT MISSISSIPPI AND THE REGIONAL RAIL HUBS
OF MEMPHIS, TENNESSEE AND BIRMINGHAM, ALABAMA.
ONE OF THE LARGEST TIGER GRANTS WAS AWARDED
TO THE NATIONAL GATEWAY FREIGHT RAIL CORRIDOR AFFECTING THE
STATES OF OHIO, PENNSYLVANIA, WEST VIRGINIA AND MARYLAND.
A SEPARATE PUBLIC-PRIVATE PARTNERSHIP PROJECT KNOWN
AS THE HEARTLAND CORRIDOR HAS BEEN BURROWING
OUT THE EXISTING TUNNELS OF VIRGINIA, WEST VIRGINIA
AND KENTUCKY ALONG THE NORFOLK SOUTHERN RAILROAD LINE.
THE TUNNELS ARE NOW TALL ENOUGH
TO ENABLE DOUBLE STACK CONTAINERS TO TRAVEL ON RAIL
FROM THE INTERMODAL PORT OF VIRGINIA THROUGH THE HEART
OF THE CENTRAL APPALACHIAN MOUNTAINS
TO A DESTINATION POINT IN COLUMBUS, OHIO.
A NEW EXTENSION FOR THE LINE HAS BEEN APPROVED
TO CONTINUE THE DOUBLE STACK CLEARANCE
DOWN STATE TO CINCINNATI.
BEYOND NEW RAILROAD DEVELOPMENT, THERE ARE OTHER ISSUES
THAT THREATEN THE STATUS QUO IN GOODS MOVEMENT.
A GROWING TREND IS THE TRANSLOADING MARKET
WHICH COULD PUSH MORE DELIVERIES TO SPECIALIZED FACILITIES
THAT ARE NOT LIMITED TO THE USUAL ONE SIZE FITS ALL SCHEME.
TRANSLOADING INVOLVES SHIFTING GOODS
FROM JUST ARRIVED STANDARD 40-FOOT INTERNATIONAL CONTAINERS
TO MIXED CARGO 53-FOOT DOMESTIC CONTAINERS.
IN PANAMA, CANAL AUTHORITIES HAVE PLEDGED
TO STAY COMPETITIVE REGARDING CONTAINER FEES.
THE CONSTRUCTION BOND TO EXPAND THE CANAL WILL REQUIRE AN ANNUAL
THREE AND A HALF PERCENT INCREASE
IN CONTAINER FEES FOR 20 YEARS.
PANAMA IS BETTING THESE INCREASES WILL NOT DISCOURAGE
TRAFFIC NOR OUTPACE POTENTIAL FEE INCREASES
FROM WEST COAST COMPETITORS WHO MUST CONTEND
WITH ENVIRONMENTAL MITIGATION COSTS,
COMMUNITY CONGESTION CONSIDERATIONS
AND INFRASTRUCTURE IMPROVEMENT EXPENSES.
BECAUSE OF THESE AND OTHER ISSUES,
PANAMA AND THE EAST COAST PORTS WILL TRY TO CAPITALIZE
ON A PERCEPTION BY SOME SHIPPERS
THAT WEST COAST PORTS ARE NOT BUSINESS FRIENDLY.
TO THEIR CREDIT, THE PORTS OF LOS ANGELES
AND LONG BEACH HAVE ADAPTED
TO CALIFORNIA'S MOST STRINGENT EMISSIONS REGULATIONS
IN THE NATION.
THROUGH BOTH POLITICAL AND ECONOMIC NECESSITY,
THESE TWIN HARBOR GIANTS HAVE LED THE FIGHT
WITHIN THE INDUSTRY FOR CLEANER AIR AND GREENER PORTS.
IN THE FUTURE, IF POTENTIAL FEDERAL MANDATES
SUCH AS THE PROPOSED AMERICAN POWER ACT BEGIN
TO IMPOSE CARBON CAPS, FEES AND EMISSIONS CONTROLS,
THE CUTTING EDGE WORK DONE BY LA AND LONG BEACH WILL BE REQUIRED
OF OTHER US PORTS, ADDING COSTS AND COMPLICATIONS
FOR THOSE COMPETITORS.
YET ANOTHER CONCERN THAT COULD TILT THE BALANCE
OF GLOBAL LOGISTICS IS THE DRIFT OF LARGE-SCALE MANUFACTURING
TO LOCATIONS SUCH AS INDIA AND LATIN AMERICA.
ALTHOUGH CHINA AND OTHER NATIONS
IN EAST ASIA MAINTAIN A CLEAR ADVANTAGE IN TECHNOLOGY,
FACILITIES AND SUPPLIER NETWORKS,
OTHER REGIONS COULD EVENTUALLY START TO CATCH UP.
GOODS FROM INDIA AND SOUTH ASIA CAN TRAVEL VERY EFFICIENTLY
THROUGH THE SUEZ CANAL FOR DELIVERY
TO THE EASTERN SEABOARD.
PRODUCTS ORIGINATING FROM LATIN AMERICA CAN USE THE PANAMA CANAL
WHILE NAVIGATING ROUTES BOTH EAST AND WEST.
THE HARBOR COMPLEX AT HALIFAX,
NOVA SCOTIA IS THE CLOSEST NORTH AMERICAN PORT TO THE SUEZ CANAL.
FROM NOVA SCOTIA, THE EXPRESS RAIL NETWORK ACROSS CANADA
AND INTO THE MIDWEST IS BEING USED FOR DELIVERING GOODS
TO AMERICA'S HEARTLAND.
>> BUT AS THINGS GET A LITTLE BETTER,
SERVICE BECOMES PREDICTABLE AND RELIABLE,
MEANING THAT YOU CAN MEASURE THE TIME WITH A STOPWATCH
FROM SOUTH ASIA THROUGH THE PANAMA CANAL
UP TO JACKSONVILLE, LET'S SAY.
AS ALL OF THOSE THINGS IMPROVE AND BECOME MORE PREDICTABLE,
THE MORE COMPETITIVE THOSE EAST COAST PORTS ARE GOING TO BE
TO THE DETRIMENT OF THE WEST COAST.
[ BACKGROUND MUSIC ]
>> STAKEHOLDERS IN THE PORTS OF LOS ANGELES
AND LONG BEACH HAVE MUCH TO PONDER BETWEEN NOW AND 2014.
HOLDING ON TO DISCRETIONARY CARGO
AND THEREBY MAINTAINING THE ASSOCIATED JOBS
AND ECONOMIC BENEFITS WILL REQUIRE A CONCERTED EFFORT
IN VIEW OF THE NEW AND IMPROVED LOCKS IN PANAMA.
DECISIONS ARE BEING MADE RIGHT NOW BY SHIPPERS
AND THEY ARE CONSIDERING ALL OF THEIR OPTIONS.
ITEMS SUCH AS CAPACITY, EFFICIENCY, RELIABILITY,
FLEXIBILITY AND COST WILL ADD UP TO THE SUM TOTAL
OF WHERE THE EMPLOYMENT WILL RESIDE
AND WHERE THE GROWTH WILL OCCUR IN THE FUTURE.
THE QUESTION IS WHETHER THE SUN WILL START TO SET
ON THE SOUTHERN CALIFORNIA GOODS MOVEMENT INDUSTRY
OR WILL THE CHALLENGES
OF NEW COMPETITION CONCEIVE A NEW SUNRISE
FOR THE WESTERN WATERFRONT. 348 00:17:46,100 [ MUSIC ]