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Port Uses Expand Beyond Shipping
Ports around the U.S. are seeing an expansion of activities linked to other vessel types and marine operations, says Cushman & Wakefield’s Logistics & Industrial team in its latest outlook report for this industrial sector. This expansion beyond shipping creates opportunities for ports and waterfront property developers alike.
For example, Volkswagen recently announced it would build a new auto processing and distribution center in Baltimore. The 166,000-square-foot facility at Tradepoint Atlantic will be constructed under a 20-year build-to-suit lease.
When it opens next year, the Baltimore facility will shift vehicle imports for Mid-Atlantic Volkswagen dealers away from the Port of Davisville in Rhode Island, which will continue to receive shipments bound for the Northeast.
Elsewhere, the growth in crude oil and LNG exports from the Gulf Coast means construction of new and highly capital-intensive specialized facilities. Cushman & Wakefield reports that new developments are planned or underway in locations near New Orleans, Houston and Corpus Christi.
In the realm of alternative energy, “offshore wind use of waterfront facilities appears to be finally gaining traction,” says Cushman & Wakefield. This means activity in locations ranging from New Bedford, MA to the 90-acre former Bayshore Concrete Products site at Cape Charles VA.
“As wind arrays take off in newly-defined federal waters along the East Coast, a network of multiple ports may emerge to support the industry,” Cushman & Wakefield reports.
The advent of alternate uses for port locations is one of several trends identified by Cushman & Wakefield in its 2019 North American Ports Outlook. Others include consolidation in the shipping industry, the rise and fall of rates, the ongoing trade tensions between the U.S. and China, and the increase in vessel sizes.
Pictured: A shipment of cars at the Port of Baltimore.
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
