Real Estate Forum - July/August 2010

signed Memorandums of Understanding
with the Panama Canal Authority, or
APC. In these doucments, an “alliance of
cooperation for information sharing,
aimed at genearting new business by
promoting all water routes between Asia
and the North American East Coast” was
established between US ports and the
APC. Meanwhile, several Gulf Coast
ports, including Jaxport and Mobile, AL,
have been some of the most recent to
jump on board with this trend, singing
MOUs. In response, six West Coast ports
banded together, along with BNFS
Raiway Co. and Union Pacific Railroad,
at the World Shipping Summit to form
the US West Coast Collaboration.
Together, the ports and railroad compa-
nies pledged a commitment to each
other to remain the number one Asian
cargo gateway through increased port
and rail infrastructure as well as through
the support of a national goods move-
ment plan that would bolster America’s
role in global trade. As the three coasts
battle for increased market share, future
agreements and incentives similar to the
MOUs and USWCC are expected.

labor

funding
location
transportation warehousing

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Shipping companies are doing their
long-range planning now and they can-
not bank on the Port Authority figuring
out what to do about the Bayonne
Bridge, says Rob Kossar, Jones Lang
LaSalle’s managing director and indus-
trial lead for New York and New Jersey.
“If some solution is not determined and
embarked on within the next 12 months,
then we’ve missed the window for sure,”
he relates. To that end, Milanaik, who is
also serving as NAIOP New Jersey’s presi-
dent, believes the Port Authority needs
to send a clear message to the shippers
that there is a plan in place. “They need
to say, ‘here is the solution’ and ‘here is
when it will be completed.’ ”
To date, the Port Authority has shelled
out close to $830 million on infrastructure
improvements around its seaports, accord-
ing to a recent report from JLL. But this is
still far less than Virginia, which topped
the list at $2.5 billion, followed by Long
Beach, CA at $2.2 billion and Savannah at
$1.2 billion. Even the Port of Philadelphia—
which has grown more than 20% in each
of the past three years—is poised to chip
away at the Garden State’s seaport traffic.
In May, Hyundai Motor Co. decided to
consolidate operations from Newark and
Baltimore to Philadelphia to import and
process 150,000 Hyundai and Kia vehicles
annually through the Packer Avenue
Marine Terminal.

But don’t count New Jersey out just yet. As part of its recent initiative to position the port for future economic growth, the agency has been busy snapping up waterfront property, including the 98-acre Global Terminal on the Port Jersey peninsula in Jersey City and Bayonne. Coupled with the Authority’s previous transaction in 2007 to change the use of the adjacent Northeast

In addition to a reliable electric infrastructure, I T professionals, facilities engineers and corporate real estate executives can partner with us to maximize electric reliability and redundancy and more rapidly locate facilities in areas where PSE&G already has the infrastructure in place to handle large loads. This can make locating your mission critical facilities faster, more efficient and cost effective.