BY TONY WEST/The Philly Public Record
– The sun is shining again on the Delaware River over a fleet of rising commerce scattered from Tioga in Port Richmond down to Wilmington. The Great Recession is over, at least at sea. And that’s good news for Philadelphia, which has always lived off the sea, Bob Palaima reports. Palaima’s company, Delaware River Stevedores, is the largest employer of unionized longshoremen in our ports. It operates Tioga Terminal which brings in an array of products, from perishables likes fruit, cocoa and cattle to steel and plywood, delicate machinery and equipment.But when international trade is down – as it was, sharply, during the recession – then port economies are down. That fact hit Philadelphia hard in 2008. But Palaima says our ports have recovered nicely from the recession and are ready to leap ahead.
“After the Great Recession, volumes were down. But this past winter, we’ve seen an uptick in key commodities,” commented Palaima. “We live on hope, keeping our noses to the grindstone.” DRS’ biggest hit this year has been Fibria Celulose. This huge Brazilian eucalyptus harvester can raise vast tropical tree plantations at a rate competitive with Northeastern USA’s traditional suppliers in Canada. It beats the market for low-cost paper. Remember the last time you applied paper to your body? It will not be replaced by the internet. It’s a global growth industry.
Fibria Celulose is now shipping into North America via Philadelphia, at DRS’ Tioga facility. And it looks like an early hit. Volume is up and DRS is retooling Tioga to handle it. Much of that facility is set up to handle fruit, which is seasonal. But wood pulp is steady year-round business. But port business doesn’t rely on home runs like Fibria Celulose. A rising tide lifts all boats, and Palaima says the tide of commerce is rising in Philadelphia. That’s a good sign – even before Panamax.
“Panamax” is shipping slang for the widening of the Panama Canal, not far from finished now, which is guaranteed to change the face of world commerce for a century. When the newer, wider and deeper canal is opened sometime in 2016, huge merchant vessels from the Orient will soon be prowling the Eastern Seaboard looking to discharge their cargo. If they can do it here, we’ll get the business. If they can’t, they’ll dock at New York, Baltimore or Norfolk instead – to our loss. It looks like they’ll be able to by 2016, says Palaima. The Panama Canal enlargement has fallen behind schedule. That’s bad news for world trade but good news for Philadelphia marketers, because it guarantees they will be able to deliver on 2014 promises 0ur port will be ready by then. Steel is popping, says Palaima. That means construction is popping in the eastern USA. It’s a leading sign of corporate investment and a good omen for the Delaware Valley’s economy.
“We are shaking off the doldrums of the recent past but we have now notched solid victories,” Palaima asserts. Ports, by their nature depend, on the global economy. Many Americans imagine our nation’s economic problems since 2008 are caused by local misfortunes. But a shipping pro like Palaima knows better: His industry is utterly dependent on international realities. What he needs from his local community and its elected officials is a hard-nosed, practical commitment to follow through on developing the Port, Pennsylvania’s greatest transportation asset.
Palaima is pleased with the bipartisan commitment that has delivered federal and state bucks to complete 60% of the channel-deepening project. The end is in sight. Although rival ports still try to divert funding from the Delaware occasionally, they probably can’t stop it now (a very-real prospect as late as 2011). “I’m optimistic about the money to finish the project,” Palaima said. “We have a good bipartisan relationship with our House and Senate delegations.” The Delaware River ports have six Senators, which helps. And Philadelphia has a flexible, versatile stevedore workforce that can quickly be brought up to speed on tomorrow’s novel cargos. That’s what a port needs to beat the competition. Palaima knows Philadelphia will be at the table when the Panamax buffet opens its doors. That’s good for us, very good.
Source: http://www.phillyrecord.com/2014/06/port-tioga-terminal-operator-sees-boom-period-for-delaware-r/
