California Gov.-elect Newsom attended Andres Manuel Lopez Obrador’s inauguration and the trip came after recent news that NAFTA will likely be replaced by the USMCA (US-Mexico-Canada Agreement). The agreement was signed by leaders of Canada, Mexico, on the US September, however it still requires legislative approval. The next California Governor has a lot at stake and is developing his own relationship with Mexico's President. There is good reason for Governor-Elect Newsome to be developing his own relationship with Mexico.
By Lois Yates|2019-06-14T11:03:09-07:00November 28th, 2018|
Much has been written about the impact of e-commerce on real estate demand and “last mile” delivery. Contrary to what we hear about struggling malls and massive retail closures, the demand for real estate to feed the growing e-commerce demand, especially in urban areas, is increasing. It is all about the need to have warehouse space strategically located near the consumer. And now the same thing is happening as production moves closer to the customer.
GLDPartners Ports and Terminals Practice Leader Brendan Dugan led a strategic visioning session this week on the topic of inland ports at the TIACA/Multimodal meeting in Toronto this week. Entitled “Are Inland Ports in North America Overhyped or Are They the Next Big Thing?”, Brendan oversaw an in-depth conversation with experts representing the rail, investor/developer, logistics terminal operator, seaport perspective
As systemic driver shortages and electronic logging data requirements result in the tightening of trucking supply and therefore trucking price increases, domestic and international cargo owners are starting to look more closely at rail options. This is the case not only for shipments travelling more than 500 miles, but even for shorter distances where rail was once viewed as uncompetitive. Except in high density, long haul rail corridors, ex. Los Angeles to Chicago, there are both opportunities and challenges that require intense logistics management in order to create rail competitiveness, particularly along shorter distances and in less dense corridors.
As the problems associated with trucking persist in the US and become more challenging for shippers, we're confident that expanded rail route/products will be offered to meet the need. In California for example, with the added complication of the State's increasing focus on environmental stewardship and reduction in greenhouse gases, we foresee expanded opportunities for market-to-seaport rail logistics. Our 2,000 acre Mid-California International Trade District project is designed to act as an inland port asset to seaports in Los Angeles - handling inbound cargo for inbound distribution and industrial supply chains, and outbound cargo from the massive agribusiness base and from manufacturing. We believe that there are similar opportunities in other strategic settings.
Common wisdom holds that the container shipping revolution was launched in 1956 when industry pioneer Malcolm Maclean decided to ship domestic trailers from Houston to Port Newark aboard the Ideal X, a converted tanker vessel. The modern US interstate highway system was in its infancy at the time, and trucking delays led this industry innovator to create a more cost-and time efficient “mousetrap”.
In the intervening 62 years both the US interstate highway system and the container shipping industry have arguably both become victims of their own success, particularly when it comes to “last mile” delivery of international and domestic cargo between metropolitan areas and load center ports along the increasingly congested I-95 and I-5 corridors on the East and West coasts of the US.
In Merced, California, GLDPartners has been exploring proactive opportunities to reduce emissions impacts from the Mid California Industrial Trade District (MCITD) and the California AutoTech Testing and Development Center (CATDC) while enhancing competitiveness. The team has had many discussions with strategic public and private sector partners moving forward. Examples include the Port of Los Angeles and how the next wave of goods movement technology might support inland distribution, including hydrogen and electric, and automobile companies and their suppliers to ascertain future automobile charging and fueling requirements.