I recently had the pleasure of moderating a panel of port leaders from the Port of New York and New Jersey at the New Jersey Transaction Conference in Atlantic City. The topic of our discussion was "What's Next for our Regional Ports, Freight, and Intermodal?" Are our region's ports prepared for the next decade? How are they modernizing facilities and managing assets? With the widening of the Panama Canal, the New York Harbor's recent dredging, and the raising of the Bayonne Bridge–how will mega ships impact the ability to deliver increased freight?
Solutions for the Effects Additional Freight Has on Local Roadway Networks and Transportation Systems
Although there was a ton of great information provided by the panelists, my takeaway was "collaboration." The amount of collaboration, communication, and information sharing that is happening in the ports and intermodal industry today in the Port of New York and New Jersey is completely unprecedented. From terminal operators to beneficial cargo owners and stakeholders within the port, the traditional territorial and competitive silos are breaking down–probably because they have to. Port leaders recognize that in order to be in a position to handle denser freight activity as a result of Neo-Panamax vessels, they need to create a more seamless process of ship-to-truck/rail transfers. This requires the cooperation of everyone involved in the supply chain, and because of collaboration facilitated by the Council on Port Performance, it's happening.
How Will Ports Prepare to Unload Mega Ships and Move Freight Onto Its Final Destination?
In an effort to improve the process and meet productivity goals, one terminal has been testing a truck gate appointment system. Traditionally truckers show up at a gate whenever they can or want to, which leads to unmanageable peak traffic loads and major backups. Similar to the way you would make a doctor's appointment, the idea behind a gate appointment system is that it will assist in spreading the peak volumes more evenly across a 12-hour work day, preventing trucks from arriving at the same time and avoiding serious congestion problems. Global Container Terminal (GCT) in Bayonne, New Jersey, is currently piloting such a system–making it the first terminal on the East Coast to require appointments, at this point only between the hours of 6:00 – 9:00 a.m.
Resistance to Change
On paper, it might seem like common sense to use a system such as this. However, this industry tends to be resistant to change. Similar appointment systems were tested in other ports over the years and didn't have much success. The trucking community has concerns about missing appointments due to traffic or other matters that are out of their control. To address this, the pilot system at GCT has allocated a half-hour grace period before and after a scheduled pickup time. The pilot is only active during the first three hours of the work day. So far, the system has worked well and is a step in the right direction. The system cuts in half the time that it takes a truck to deliver and/or receive a shipment and leave the port. Often, truck drivers are paid by the move. When wait times are reduced, drivers can make more moves and, in return, make more money.
Benefits Along the Entire Port Logistic Supply Chain
Though it may seem that the appointment system is mostly advantageous for the trucking industry, there are additional benefits throughout the logistic supply chain. In addition to providing a huge aid to the truckers' time and efforts, the appointment system also supports the terminal in managing its labor, infrastructure, and equipment, and provides better predictability for beneficial cargo owners on when the freight will arrive. After spending a recent morning with five industry leaders from the Port of New York and New Jersey singing the praises of this pilot program, I am convinced that collaboration is the linchpin to achieving improved port productivity, and that the appointment system will expand to all terminals in the Port of New York and New Jersey within the next couple years.