Post by T Bond on Aug 2, 2013 8:36:35 GMT -5
Computer problems at N.J. port a boon to Virginia
By Michael Welles Shapiro, mwshapiro@dailypress.com | 757-247-4744 Daily Press
August 1, 2013
The Port of Virginia is getting a cargo boost at the expense of a huge container terminal in New Jersey, which is struggling with a new software system.
An official at Virginia International Terminals, the state-formed port management company, and a local trucking company executive said both rail and truck traffic are surging as a direct result of New York's headache — an unexpected boon at a time when Hampton Roads is already seeing cargo on the rise.
"The trucking community has absolutely seen an increase in diversion freight from the Northeast," said Ed O'Callaghan, who leads the Tidewater Motor Truck Association.
"I can say for a fact we've gotten some rail diversions in excess of 1,000 containers," said Tom Capozzi, a top sales executive at VIT, who's slated to become chief commercial officer under a restructured Virginia Port Authority.
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Maher Terminals, the largest container terminal at the Port of New York and New Jersey, has had problems with a new terminal operating software system designed by Navis and put in place in early June.
Maher and Oakland, Calif.,-based Navis, which designs systems used at ports across the globe, said in a joint statement on June 20 that with new systems "there is always a risk of initial declines in productivity as new operating procedures and processes are streamlined into the operation."
The companies predicted a "return to the exceptional service levels upon which the reputation of Maher Terminals has been built."
But in the meantime, shippers are looking elsewhere, and especially at Hampton Roads, to move their goods.
Hapag-Lloyd, a German steamship line, urged its rail and local cargo customers on July 26 to seek out alternative ports, noting that the Navis problem was compounded by a labor shortage at the piers "due to summer vacations" and a "shortage of trucking power."
"In efforts to minimize commercial exposure to NY/NJ and restore our service to our customers, we strongly suggest rerouting cargo whenever possible," the steamship line wrote in a letter to its clients.
Specifically the company said:
•Cargo headed to or from Europe should be routed through Hampton Roads, Montreal or Halifax in Nova Scotia;
•Cargo headed to or from India or Southeast Asia should be routed through Hampton Roads or Halifax;
•Cargo headed to or from Latin America should be routed through Hampton Roads, Baltimore or Savannah.
O'Callaghan said the diversions have already brought more business to Virginia.
"In fact, I had three trucks in Pennsylvania last night loading refrigerated products that normally go from Pennsylvania through New York," he said. "But now they're diverting their exports through Norfolk."
Navis systems use ID numbers on containers to streamline the movements of truckers, straddle carriers and marine operations workers at busy container yards.
The company is moving ahead with a plan to better automate operations at Norfolk International Terminals.
Capozzi said officials at Virginia's ports are hoping to learn lessons from Maher Terminals' flawed rollout to avoid suffering a similar fate.
"We're watching it very closely because we're getting ready to implement Navis here," he said.
The Port of Virginia has seen its container traffic increase by 10 percent in the last 12-month period, according to Russell Held, VPA's deputy executive director of development.
That compares to a 1.5 percent decrease at the Port of New Jersey and New York, the busiest container terminal complex on the East Coast.
The New York-area ports were already hammered in November when Hurricane Sandy shut down facilities and led to diversions of cargo, some of which moved through Virginia.
About 6,500 containers were diverted through Hampton Roads, according to one VPA estimate, and about 3,500 vehicles were brought through state-run terminals in Newport News and Portsmouth.
By Michael Welles Shapiro, mwshapiro@dailypress.com | 757-247-4744 Daily Press
August 1, 2013
The Port of Virginia is getting a cargo boost at the expense of a huge container terminal in New Jersey, which is struggling with a new software system.
An official at Virginia International Terminals, the state-formed port management company, and a local trucking company executive said both rail and truck traffic are surging as a direct result of New York's headache — an unexpected boon at a time when Hampton Roads is already seeing cargo on the rise.
"The trucking community has absolutely seen an increase in diversion freight from the Northeast," said Ed O'Callaghan, who leads the Tidewater Motor Truck Association.
"I can say for a fact we've gotten some rail diversions in excess of 1,000 containers," said Tom Capozzi, a top sales executive at VIT, who's slated to become chief commercial officer under a restructured Virginia Port Authority.
View/Submit Comments for this story
Maher Terminals, the largest container terminal at the Port of New York and New Jersey, has had problems with a new terminal operating software system designed by Navis and put in place in early June.
Maher and Oakland, Calif.,-based Navis, which designs systems used at ports across the globe, said in a joint statement on June 20 that with new systems "there is always a risk of initial declines in productivity as new operating procedures and processes are streamlined into the operation."
The companies predicted a "return to the exceptional service levels upon which the reputation of Maher Terminals has been built."
But in the meantime, shippers are looking elsewhere, and especially at Hampton Roads, to move their goods.
Hapag-Lloyd, a German steamship line, urged its rail and local cargo customers on July 26 to seek out alternative ports, noting that the Navis problem was compounded by a labor shortage at the piers "due to summer vacations" and a "shortage of trucking power."
"In efforts to minimize commercial exposure to NY/NJ and restore our service to our customers, we strongly suggest rerouting cargo whenever possible," the steamship line wrote in a letter to its clients.
Specifically the company said:
•Cargo headed to or from Europe should be routed through Hampton Roads, Montreal or Halifax in Nova Scotia;
•Cargo headed to or from India or Southeast Asia should be routed through Hampton Roads or Halifax;
•Cargo headed to or from Latin America should be routed through Hampton Roads, Baltimore or Savannah.
O'Callaghan said the diversions have already brought more business to Virginia.
"In fact, I had three trucks in Pennsylvania last night loading refrigerated products that normally go from Pennsylvania through New York," he said. "But now they're diverting their exports through Norfolk."
Navis systems use ID numbers on containers to streamline the movements of truckers, straddle carriers and marine operations workers at busy container yards.
The company is moving ahead with a plan to better automate operations at Norfolk International Terminals.
Capozzi said officials at Virginia's ports are hoping to learn lessons from Maher Terminals' flawed rollout to avoid suffering a similar fate.
"We're watching it very closely because we're getting ready to implement Navis here," he said.
The Port of Virginia has seen its container traffic increase by 10 percent in the last 12-month period, according to Russell Held, VPA's deputy executive director of development.
That compares to a 1.5 percent decrease at the Port of New Jersey and New York, the busiest container terminal complex on the East Coast.
The New York-area ports were already hammered in November when Hurricane Sandy shut down facilities and led to diversions of cargo, some of which moved through Virginia.
About 6,500 containers were diverted through Hampton Roads, according to one VPA estimate, and about 3,500 vehicles were brought through state-run terminals in Newport News and Portsmouth.
