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Tuesday, November 8, 2016
Operators of the nation’s ports on the West Coast taking steps to improve infrastructure and operations
Operators of the nation’s ports on the West Coast are taking steps to improve infrastructure and operations, but there is room for improvement in the wake of a 2014-2015 labor slowdown, according to a U.S. government report.The U.S. Government Accountability Office (GAO) noted that all major West Coast ports have either planned or completed infrastructure projects and implemented operational changes, although some additional changes need to be made. In response to the disruption that was resolved in February 2015, port stakeholders told the GAO that efforts to address volume-processing issues at the ports still can be “hampered by competing priorities and limited data.”Additionally, 13 of 21 industry groups representing major shippers told the GAO that some of their members are diverting their shipments, modifying supply chains or making alternative shipping plans after the labor issues backed up shipping operations. All 13 also reported increased costs or a decline in revenues, the GAO reported.The report also noted that the U.S. Dept. of Transportation (DOT) is increasing its multi-modal freight-related activities even though gaps remain about the information the agency receives on supply chains covering domestic goods for export and international trade for imports. The GAO report recommends that DOT identify the information it seeks as well as suggest possible sources, in addition to outlining how the information will be used.Meat processors and other companies that depend on smooth operations at West Coast ports also have urged the Pacific Maritime Association, which operates the ports, and the International Longshore and Warehouse Union to begin negotiations well before the current contract expires in 2018.