The traditional economic development war between states may take a new twist. Historically, states battled to lure businesses away from each other, promising generous tax breaks, low-interest loans, and customized job training. Very soon, the battle will shift to harbors and ports as cities and states dredge channels, raise bridges, expand terminals, add rails, and expand highways.
What’s shifting the battle from industrial parks to seaports? Technological change and its countless consequences. First, ships are getting bigger, and that’s a plus because experts say it costs less to transport goods by ships than by trains or trucks. Well, if that’s true, why do ships bringing goods from Asia unload in Los Angeles and Long Beach instead of Savannah or Newark? The Panama Canal isn’t wide or deep enough for these ships, but not for long!
The Panama Canal is expanding, and that, according to some experts, will make it cheaper to ship goods directly to east coast ports. (That, plus the truck traffic congesting west coast highways and unmet demand for new warehouses there.) Other experts argue that the picture isn’t so clear, pointing to major structural impediments at east coast ports and Congress’ reluctance to fund major harbor improvements.
Source: “The Battle of the Ports,” Planning, May/June 2011, available in the Connecticut Legislative Library
