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Infrastructure spending to fall in 2009
Federal stimulus funds won’t be enough to raise the level of infrastructure spending in 2009, according to the U.S. Infrastructure Market Analysis for the second quarter of 2009, prepared by IHS Global Insight’s construction division.

Infrastructure spending in the U.S. is expected to decline 4.3 percent this year with the infrastructure sector falling victim to large state government deficits and funding shortfalls to cities and towns, the report said.

If there is a lack of infrastructure spending in the power segment on several new oil refineries and pipeline construction, total infrastructure construction would slip 6.8 percent in 2009, the report said. Otherwise, the power market would the only non-declining infrastructure sub-sector.

IHS Global Insight said it expects infrastructure spending to decline 1.6 percent in 2010 with growth of 2.4 percent in 2011 as tax receipts improve for state governments, and the federal stimulus package, totaling approximately $120 billion for infrastructure, is fully implemented.

Pacer initiates service through Ports America Puerta México inland port
Ports America announced Pacer International is a customer of its Puerta México intermodal facility, an inland port located in the industrial zone of Toluca, 65 kilometers west of México City.

In May, Pacer initiated six-day-per-week direct rail service to and from the terminal in Toluca to handle shipments, including automotive and third-party domestic traffic (FAK) northbound and southbound. The new service parallels Pacer’s existing PacerMex ramp points throughout its U.S. and Eastern Canada network and provides through non-stop, in-bond service.

“Pacer is excited to combine the productivity, security and professionalism of the new Ports America facility with Pacer’s already extensive service network in Mexico,” said

Michael E. Uremovich, chairman and CEO for Pacer.

“Together we are creating an even better product for customers looking to maximize security, high-quality service, and the cost-effective trans-border movement of freight into and out of Mexico from the U.S. and Canada,” he said.

Stephen Edwards, Ports America president and CEO, commented on some of the facility’s advantages.

“The Puerta Mexico terminal offers multi-modal terminal services and on-site customs and bonded warehousing facilities to ocean carriers, railroads, intermodal and other logistics service providers with its on-dock direct access to rail line “N” of Kansas City Southern de México (KCSM),” Edwards said. “Puerta México is quickly becoming the terminal of first choice for service to and from the central valley, the ports of Lázaro Cárdenas and Manzanillo, and Laredo at the U.S. border. It is helping to lower logistics costs, thereby lowering prices and bringing greater choices to consumers.”

Ports America said the estimated capacity of its intermodal facility exceeds 150,000 containers and 2 million tons of cargo per year on more than 130 acres. In addition to storage, cross-dock and transloading, the company said the terminal would be a vehicle distribution center.

Domestic container traffic climbed in Q2
Domestic container traffic was up 0.9 percent in the second quarter of this year. With 53-foot equipment jumping 5 percent,
representing 95 percent of all domestic container loads, the Intermodal Association of North America reported.

The Mountain Central region posted the largest jump at 17 percent, and the Midwest region the largest domestic container region increased 4 percent, IANA reported.

Year-over-year total intermodal volume dropped 18.7 percent.

International container volume, which accounted for more than half of all intermodal shipments, fell for the ninth-consecutive
quarter at a double-digit pace in every region, with Western Canada seeing the smallest decrease in volume, while the Northwest
experienced the largest, IANA said.

Trailer declines accelerated during the quarter as domestic freight continued its migration to containers, IANA said; dropping 26.9 percent compared to -20.6 percent in the first quarter of this year.

Trailer volume has fallen 16 of the last 18 quarters, interrupted only by a brief period of growth in mid-2008, IANA reported. All trailer sizes, including the standard 53-foot length, fell during the quarter, with total quarterly trailer volume falling below 400,000 loads for the first time since IANA started reporting in 1996.

The volume of business through Intermodal Marketing Companies shrunk by nearly half, with IMC intermodal volume performance increasing 7.3 percent from the first quarter, IANA said.

CSAV secures $145 mil capital increase on road to $710 mil
Chile’s shipping group, CSAV, announced in July it secured the completion of a $145m capital increase thanks to a group of German ship owners, as the liner continues towards its $710 million re-capitalization strategy.

“CSAV has achieved great success in its capitalization process, with current shareholders demonstrating great confidence in the company by underwriting 100 percent of this capital increase, the company said in a statement.

The successful completion of this first stage of the capitalization process represents an important step forward towards the consolidation of CSAV as a first-class partner for our customers and suppliers,” the company said.

In This Issue

Up Front

News, Trends & Analysis
New Items

The outlook is improving

Supply Chain
Federal chassis rules: Are you ready?

Working with the public sector

How will your company deal with Sarbanes-Oxley

Features
Gateway at a glance Southern California

Six case studies in green

Ports & infrastructure
Nowhere near a Peak Season this year

Port Products
Green port product review

Commentary
Sustainable: The new buzz word

On the Horizon
Expect to see more LNG fuel stations in the future

Casualties