Southern California Industrial Real Estate Professionals understand the importance of the Ports of Los Angeles and Long Beach import volumes being major contributors for warehouse demand across the region. Good news! The ports keep raising the bar on their competitors.

Raising the Bar! - WCL Consulting

Ports of Los Angeles & Long Beach Container Volume 2016 Breaks Records

Record container volumes returned to the LA/LB ports in 2016. The 2016 volumes were within 99% of the highest combined volumes which was in 2006. The Port of LA recorded it largest volume in history in 2016.

Digitization Project – to speed information flows and improve handling efficiencies

In addition to record container volumes, the Ports of Los Angeles & Long Beach are working on a digitization project that is expected to enhance the domestic ports’ global competitiveness through improved operating efficiency and faster cargo flow. The ports are working in partnership with the U.S. Department of Commerce and USC Marshall School of Business to implement the Port Community IT System.

At present, the ports include 14 port terminals and 11 different operating systems. Each system essentially operates independently, impeding communication along the supply chain. A standards-based cloud infrastructure will enable data sharing between all stakeholders. With greater transparency, port operators, can receive cargo details weeks, rather than days, in advance, and plan for a smoother arrival which will ease port congestion. Truckers, retailers and train operators will have the same access to pre-arrival shipping and customs data. The real-time monitoring of product flow is expected to cut costs for the millions of products that come through the ports.

Currently ports such as the Port of New York & New Jersey provide post-arrival cargo information-sharing. As globalized trade expands and mega-vessels become commonplace, pre-arrival IT systems will help avoid port and cargo disruptions. It is the first domestic initiative of its kind.

The Port of Los Angeles has launched an initial $1.3 million pilot project with GE Transportation, APM Terminals, Maersk Line, and Mediterranean Shipping Co. The two three month program will unfold this year and then expand to the entire Los Angeles operation, followed by the Port of Long Beach.

Digital Transformation Chart

With their Digitization Project, the Ports of Los Angeles & Long Beach are clearly focused on strengthening their Value Proposition. Are you comfortable with your firm’s Value Proposition? Are you able to fend off commoditization arguments with tenants? We have some innovative strategies which we would like to discuss with you. Contact Us for a consultation