A major breakthrough toward a more sustainable cargo network has been announced by the Port of Stockton.
By Patrick Burnson
Published: February, 2012
A major breakthrough toward a more sustainable cargo network has been announced by the Port of Stockton.
Two years ago, the U.S. Department of Transportation announced the award of a $30 million TIGER grant for the ports of Oakland, Stockton and West Sacramento to develop the infrastructure necessary to establish a container-on-barge service between the Central Valley and the San Francisco Bay area. Now the Port of Stockton is making ready to take advantage of this development.
The port has selected Savage Companies to manage the M-580 Marine Highway Corridor between the Port of Stockton and Port of Oakland. Savage will immediately begin marketing the M-580 Marine Highway to potential customers of the container-on-barge service, and operations are scheduled to commence during the first quarter 2012.
"We are very pleased to have selected Savage to manage our Marine Highway program," said Port of Stockton Port Director Richard Aschieris. "The strength of their proposal combined with their existing supply chain capabilities insures the Northern California Marine Highway will offer efficient and extensive services to anyone shipping by container in our region and beyond."
The Port of Stockton received $13 million of the grant to support the purchase of two 140-ton mobile harbor cranes and to make the necessary improvements at the port to support the project. The port has purchased the two cranes with a scheduled delivery later this month. In addition to the cranes, the port has purchased two barges to be dedicated to the project. The barges are scheduled soon to undergo modifications in order to handle containers.
Spokesmen noted that the M-580 Marine Highway will help to reduce congestion along the I-580/I-5 corridors and the improve air quality and public safety in the region.
The Port of Stockton also sponsored the Association of Pacific Ports 2012 Winter Conference in Hawaii last month. Port Commissioner Elizabeth Blanchard was among the officers and directors, as were Executive Director Mike Giari and Commissioner Dick Dodge from the Port of Redwood City.
Redwood City Port Tenant Receives Geothermal Grant
More port news includes the announcement from the Port of Redwood City that port tenant Potter Drilling has received one of 32 grants issued by the U.S. Department of Energy for projects to accelerate the development of promising geothermal energy technologies and help diversify America’s sources of clean, renewable energy.
Thirty-two innovative projects in 14 states will develop and test new ways to locate geothermal resources and improve resource characterization, drilling and reservoir engineering techniques, which will enable geothermal energy sources to help reduce the nation’s reliance on fossil fuels.
Funded through Department of Energy’s Office of Energy Efficiency and Renewable Energy, these advances will play an important role in achieving the national goal of generating 80 percent of U.S. electricity from clean energy sources by 2035.
California Exporters Finish Strong in 2011
California’s exporters turned in another strong performance in November, marking the 25th consecutive month in which the state’s merchandise export trade increased on a year-over-year basis.
The value of goods shipped abroad by California businesses in November reached $14.07 billion, a nominal gain of 12.7 percent over the $12.49 billion reported in November 2010, according to an analysis by Beacon Economics of foreign trade data released in January by the U.S. Commerce Department.
Total U.S. merchandise exports were up 12.1 percent over the same period. California’s exports of manufactured goods edged up 9.6 percent to $8.57 billion, while non-manufactured exports—chiefly raw materials and agricultural products—were up 16.3 percent to $2.14 billion. Re-exports, meanwhile, rose by 18.7 percent to $3.36 billion.
"Even in inflation-adjusted terms, 2011 will easily turn out to be the best year ever for California’s export trade," said Jock O’Connell, Beacon Economics’ international trade adviser.
Through November, the state’s merchandise export trade for 2011 amounts to $145.81 billion. The best previous year was 2008, when exports through the first 11 months totaled $141.26 billion (in 2011 dollars).
Overall, the California economy is showing strong signs of turning the economic corner. Beacon Economics’ Founding Partner Christopher Thornberg said job growth, consumer spending, non-residential construction and industrial vacancies have all showed signs of strong improvement in recent months. "Much of the momentum behind California’s economy can be traced back to the state’s resurgent export sectors," Thornberg said.
While Beacon Economics expects the state’s export trade to continue expanding in 2012, it warns that the pace of growth will likely slow. "The near-term outlook has some risks," O’Connell said. "Europe is flirting with recession, and the dollar has gained 10 percent in value since August as a result, reducing a portion of the newfound competitiveness of U.S. products."
"Fortunately, our two biggest foreign markets, Mexico and Canada, remain on more solid economic footing," he said.
