by guesty » July 5, 2024, 4:04 pm
Call me a pessimist, but I see lots of negatives that they will have to overcome. First, it can only offer seasonal service for international cargo. Second, only small, more expensive to run feeder vessels will be able to transit the seaway. Third, in this world of deregulated transportation, railroads and truckers are free to cut their rates to maintain their market share out of east coast ports. Fourth, even with the congestion they sometimes suffer, railroads and truckers can still get a container from Europe to Chicago several days faster than a feeder ship transferring containers and then sailing up the Seaway can.
Don't forget that Chicago spent $15 million in the late 1970's on a container port (Iroquois Landing) that failed to attract any substantial container business. That's $65 million in today's dollars. The recent article on the news page didn't seem to mention the level of investment
I can see some niche containerized traffic using the Great Lakes, but will it be profitable enough to support the investments? Time will tell. But it's hard to compete against ports that have 50 foot or more water depth to the docks and giant automated cranes, for general international container traffic. As for domestic traffic, its hard to compete with truckers in regards to rates and transit times.
I do wish them luck, but I think they have an uphill battle.
Call me a pessimist, but I see lots of negatives that they will have to overcome. First, it can only offer seasonal service for international cargo. Second, only small, more expensive to run feeder vessels will be able to transit the seaway. Third, in this world of deregulated transportation, railroads and truckers are free to cut their rates to maintain their market share out of east coast ports. Fourth, even with the congestion they sometimes suffer, railroads and truckers can still get a container from Europe to Chicago several days faster than a feeder ship transferring containers and then sailing up the Seaway can.
Don't forget that Chicago spent $15 million in the late 1970's on a container port (Iroquois Landing) that failed to attract any substantial container business. That's $65 million in today's dollars. The recent article on the news page didn't seem to mention the level of investment
I can see some niche containerized traffic using the Great Lakes, but will it be profitable enough to support the investments? Time will tell. But it's hard to compete against ports that have 50 foot or more water depth to the docks and giant automated cranes, for general international container traffic. As for domestic traffic, its hard to compete with truckers in regards to rates and transit times.
I do wish them luck, but I think they have an uphill battle.