2005 Annual Forum View AbstractNorth American Containerport Capacity Michael Maloni, Eric Jackson, Black School of Business, Penn State Erie Motivation With marine container volumes increasing 7% each year, most major U.S. ports are currently operating near full capacity. The U.S. Chamber of Commerce predicts that port volumes will at least double by 2020 with some ports experiencing triple (East Coast) and quadruple (West Coast) growth. The ultimate consequences could be severe as insufficient port capacity will drive up transportation costs, trigger shipping delays, and force higher inventory levels. Adding port capacity is extremely difficult. Capacity builds require significant capital and time, and regardless, most ports have little if no room left to augment space. So, capacity improvements must occur primarily through enhancements to limited existing port facilities and labor. Furthermore, port capacity is heavily influenced by many different stakeholders, most of which engage in limited collaborative planning with the ports. Research Objectives Despite the significance and urgency of the problem, very little research exists relative to port capacity. This research project seeks to fill this void by assessing current and future port capacity problems including: - Timing of potential capacity problems by geographic region
- Key drivers of the capacity problems
- Port strategies to address capacity issues including required stakeholder support
Methodology This project will first review relevant logistics and operations literature to identify research gaps. A survey of the leadership of major U.S. and Canadian container ports will then be used to collect container capacity and volume forecasts as well as opinions about capacity drivers and growth plans. Analysis of the collected survey data will involve fundamental statistical validation and summarization of the survey constructs. Potential Findings This project will generate several key outputs with importance to industry and academia. The primary output will be forecasts of port capacity issues, thus validating the significance of the problem and subsequently motivating industry stakeholders to take action. The project should also produce valuable insight for port growth planning and strategy by identifying key capacity factors and necessary stakeholder participation. Finally, the project is expected to yield several additional research streams as details of capacity problems and related drivers are isolated. Related Links |