Jones Lang LaSalle: Port, Airport and Global Infrastructure Outlook
The recession has taken its toll on global ports and surrounding real estate, but Jones Lang LaSalle predicts industry growth in the coming years.
6/22/2010
"Between 2007 and 2009 the nation's top 13 ports witnessed an 18.5 percent decline in total volume as both domestic and foreign consumption waned," said John Carver, head of the Ports Airports and Global Infrastructure group at Jones Lang LaSalle. "Fortunately, transpacific U.S. bound trade from Asia started to recover in the second half of 2009 and has started to show a positive impact on West Coast ports, with traffic up 14.8 percent year-over-year."
The report also includes Jones Lang LaSalle's new Port Index, which judges American port markets on performance of both the port and its effect on the surrounding real estate market. Los Angeles and Long Beach lead the Index, followed by New York and New Jersey and Savannah.
World container port handling is predicted to expand 6 percent annually beginning in 2011, according to a report by Drewry Shipping Consultants. Brazil is banking on its ports with its Pac 2 Program, a $526 billion government investment. Southeast Asia will also spend more on infrastructure, likely investing approximately $32 billion over the next four years, according to KPMG.
Port-area real estate demand in the United States has not yet recovered, the report finds.
"Asking rents declined by an average 7.1 percent with the largest losses in the markets surrounding the ports of Los Angeles, Long Beach, and Charleston," said Craig Meyer, managing director and head of Jones Lang LaSalle's Americas Industrial Services team. "It's no surprise that these three ports, along with Virginia and Tacoma, posted the highest year-over-year losses from 2008 in total container volumes, demonstrating the integral relationship between port through traffic and industrial vacancy rates."
But the expansion of the Panama Canal is bringing optimism to the sector. Los Angeles-Long Beach has begun a $40 million dredging project to accommodate post-Panamax ships. Meyer expects smaller ports to benefit, too, such as Gulfport, Mobile, Port Manatee, and Philadelphia.
Project Announcements
ValorFlex Packaging Plans Bowling Green, Kentucky, Production Operations
06/30/2025
Neuro.io Plans Terrebonne Parish, Louisiana, Operations
06/30/2025
Germany-Based MTU Maintenance Expands Fort Worth, Texas, MRO Operations
06/30/2025
Cascade Die Casting Group Expands High Point, North Carolina, Manufacturing Operations
06/30/2025
BuildOps Plans Raleigh, North Carolina, Operations
06/30/2025
Point Blank Enterprises Plans Wakulla County, Florida, Operations
06/30/2025
Most Read
-
20th Annual Area Development Gold and Silver Shovel Awards
Q2 2025
-
First Person: Joe Capes, CEO, LiquidStack
Q2 2025
-
The Legal Limits of DEI in Incentives Agreements, Hiring, and Contracting
Q2 2025
-
From Silicon to Server: Mapping the Data Center Supply Chain
Q2 2025
-
39th Annual Corporate & 21st Annual Consultants Surveys: What Business Leaders and Consultants Are Saying About Site Selection
Q1 2025
-
Rethinking Life Sciences Site Selection in a Resilient and Dynamic Market
Q2 2025
-
Top States for Doing Business in 2024: A Continued Legacy of Excellence
Q3 2024