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Running Competitiveness Aground
· Sunday, January 15, 2012
CHARLESTON, S.C. -- Thanks to globalization, and to containerized shipping that began in 1956 and makes globalization work, commodities swiftly move vast distances around the planet. Wal-Mart alone imports 400,000 containers a year. Trade flows can, however, be deflected or even defeated by a distance of just five feet. Herewith a story of the high costs of a few feet and of too many years required for our nation's increasingly sluggish public processes to move.
This city's port, the East Coast's fourth busiest (1.38 million shipping containers a year), is 45 feet deep. But in two years the Panama Canal will open a larger set of locks capable of handling ships 50 percent wider and with deeper drafts than today's "Panamax" ships -- the largest that can currently transit the canal.
The first container ship reached Charleston in 1966, carrying 600 containers. Today the port receives ships carrying more than 9,000. By 2014 there will be 1,200 "post-Panamax" ships -- marvels of naval architecture, floating mountains -- built for commerce after the canal widening. They will carry up to 18,000 containers. The widening, says Jim Newsome, CEO of the South Carolina State Ports Authority, will be "the biggest game-changer in the history of containerization."
Charleston could be out of the game, with huge anti-competitive consequences for the burgeoning manufacturing and exporting industries of the Southeast -- BMW, Michelin, General Electric (turbines) and others in South Carolina alone. By 2014, two-thirds of the world's container capacity will be carried by ships bigger than the unwidened canal could handle. Some things are moving rapidly.
There are four southeastern ports along 400 miles of Atlantic coast -- Wilmington, N.C., Charleston, Savannah and Jacksonville -- but none is 50 feet deep. The Army Corps of Engineers, which must do the dredging, says, on the basis of preliminary studies of other harbors, that the harbor in Charleston "would probably be the cheapest South Atlantic harbor to deepen to 50 feet."
Determining the feasibility of such projects typically takes five to eight years even if expedited (10 years or longer if not). Perhaps Congress could require globalization to pause while America studies things. Or perhaps post-Panamax vessels will be willing to loiter offshore a decade or so.
The federal government would pay $120 million, South Carolina $180 million. The $300 million -- a sum equal to a rounding error on the General Motors bailout -- would be quickly recouped as the deepened port delivered more than $100 million in net benefits annually. Today, 70 percent of imports from Asia arrive at West Coast ports and are distributed inland by truck and rail. But shipping is the cheapest transportation per mile and will become cheaper with post-Panamax ships, including those coming here.
Newsome says the study for deepening Savannah's harbor was made in 1999. It is 2012 and studies for the environmental impact statement are not finished. When they are, the project will take five years to construct. "But before that," he says laconically, "they're going to be sued by groups concerned about the environmental impact." A Newsome axiom -- that institutions become risk averse as they get challenged -- is increasingly pertinent as America changes from a nation that celebrated getting things done to a nation that celebrates people and groups who prevent things from being done.
Newsome says that because of labor costs -- in constructing and crewing ships -- America has essentially no deep-sea shipping industry. This is a facet of the de-industrialization of the nation. But the nation is currently enjoying a renewed export boom, which accelerates the need for deep harbors.
The huge project of widening the Panama Canal began in 2006; it will be completed in eight years. Newsome, who is unstinting in his praise of the Army Corps, knows it must comply with ever-thickening layers of laws. But even if we stipulate that all these laws are wonderful, we should also stipulate that surely things would move faster if the nation faced an emergency. Such as economic enfeeblement.
The Empire State Building was built in 14 months during the Depression, the Pentagon in 16 in wartime. The aircraft carrier Yorktown, which earned 11 battle stars in the Pacific and now is anchored here, was built in less than 17 months, back when America was serious about moving forward. Is it necessary to take eight years -- just two years less than it took to build the Panama Canal with yellow fever and without computers -- to deepen this harbor five feet?
(c) 2012, Washington Post Writers Group
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mmccrindle
There is now two Americas.
The left has gone off the deep end and there is no compromising with them. The proponants of socialism, climate change, unions, green energy and big government nanny state that would dictate every facet of your life see some kind of utopia being the ultimate goal that simply cannot and has never worked in history. The only faith these people have is that the government will take care of everything. They are delusional.
The conservatives still cling to what liberties are still there but seem to have been losing ground at an alarming rate. They have faith that the founding fathers actually knew what they were doing and that freedom coupled with a free market system is by far the best system ever devised by man. They have faith that mother nature (ie. GOD) has the capacity to cleanse the earth as evidenced by 'miraculous' recoveries after natural events such as volcanos, natural oil spills and the like. They have faith in true scientific studies such as ice core soundings which shows the cyclical nature of climate temperatures going back in time in hundreds of thousands of years. They have faith in the Bible which instructs us to use all our natural resourses to their fullest. They have faith in mankind guided by their God.
I happen to be a conservative and refuse to fall for the left's message.
It may very well be the time that the two Americas split.
Let the left have their utopia.
Let us conservatives have ours.
I refuse to allow myself and loved ones to be dragged into a flawed and doomed ideology.
Posted January 15, 2012 at 7:47:02 AM
mmccrindle
The wing-nut lefties don't give a crap about our nations welfare in regards to commerse so long as their welfare checks keep coming.
P.S. Barak Husain Obama or Barry Soetoro (which ever name you know him by) is a traitor to this country and will destroy it given more time.
Posted January 15, 2012 at 7:56:02 AM
ct-tom
So, what about any of this is surprising? Depressingly: Nothing.
We may be doomed whether or not BO gets re-elected. Who can undo all of this mess? Is there even a will to undo it?
Posted January 15, 2012 at 9:30:42 AM
Jeremy
Will writes, "...as America changes from a nation that celebrated getting things done to a nation that celebrates people and groups who prevent things from being done."
Unfortunately, Mr. Will got the tense wrong. This change has already occurred, as you will discover if you spend a few minutes at just about any high school in the country.
Posted January 15, 2012 at 1:32:16 PM
mmccrindle
Let's play blame the lefties game!!
Answer the following with either lefty or righty:
1-Has made it almost impossible to start up any private business because of laws, regulations, fees or new BS in the Frank-Dodd act?
2-Wastes millions of tax payer money on 'green' start-up companies which were green lighted in question no. 1.
3-Grew the Fed gov't. to be the biggest and most bloated monstosity in our history then just announced a combining of agencies to make it look like he's concerned about gov't spending. (but is actually a very sneaky way to placate his unions)?
4-Believes late term abortions are just dandy but is appalled by the death penalty?
5-Would rather people starve than to possibly harm the habitat of the desert chub (little fish 'bout an inch long and isn't on anything's food chain)?
6-Thinks the private sector is doing just fine but the public sector (gov't union workers) are in need of more and more and more assistance. (Sen. Reid, your table is ready...)
7-Has broken virtually all campaign promises?
(ok,ok trick question...'Both' is correct ans.)
8-Resorts to either emotions or the race card on all political arguements.
9-Is trying to bankrupt this nation?
10-Keeps minorities as dumb and ignorant as possible by creating the wellfare state and letting the Dept. of Education dream up more ways to dumb down ciriculim, thereby keeping them voting for their masters.
11-Keep on re-inventing socialism and forcing it upon us even though it's never worked, will never work but they're going to do it anyway else they'd be outta work?
.......ok, ok I'll stop.
Posted January 15, 2012 at 4:02:23 PM
India
Great article, Mr. Will.
Posted January 15, 2012 at 6:26:01 PM
rspellmann
McCrindle cracks me up. *nodding and grinning* And, makes me impatient to vote!
We home schooled, thereby avoiding the dumbing down in education, and I now have five good voters lined up along side me (with McCrindle).
Posted January 15, 2012 at 10:53:09 PM
A.R. Nash
Cultures, societies, and nations are established by leaders, -men who get things done and know how to crack the whip when needed, but in time the institutions they establish are entrusted with so much authority that the strong leader is eclipsed and unnecessary.
The wheels of the bureaucracy become the new power and those wheels turn very slowly because there is no strong leader cracking any whip behind them. So it is today.
The nation is not ruled by Congress or the Constitution, it is ruled by regulations that were created by bureaucrats with nothing better to do than to dream-up regulations for everything. Their very existence is the result of the luxury of affluence and the audacity to borrow money like there's no tomorrow.
Well, the result may be that there IS no tomorrow. At least not one that we'll want to live in. And all too possibly, it may come as it almost did in 2008, all of a sudden and with no one ready. Next time a financial crisis hits, our Congress and Fed will be out of bullets. What then?
A new dark ages doesn't seem as inconceivable as it was a few years ago, but it can't be predicted or precluded because we are in uncharted territory. When one equal party is hopelessly addicted to unlimited spending, and it's opponent isn't all the bothered about it, then continued addiction is the only realistic prognosis.
We are truly on our own now because our own government is the cause of the problem and not the solution. It will all boil down to a numbers game as to what path we'll take going forward. And it could be determined by a single precinct in a single state resulting in a single elected representative who'll provide a voting majority for one of the parties. But without a clean sweep of the Congress & White House, crap like the Reid/Pelosis HealthCare bill will not be repealed unless we are saved by at least one vote in the Supreme Court.
Posted January 16, 2012 at 5:42:01 AM
JTG
As they did with the Dodd-Frank bill, the democrats wrote in provisions where certain elements could not have legal challenge. How this happened or how this could happen is disturbing. Are the liberals the only jerks that can write this into a bill? Apparently, they try anything at least once to see if it sticks.
Posted January 16, 2012 at 1:09:17 PM
E Will
Maybe BHO can delay the problem by putting a Commerce czar in charge of ship building.
Posted January 16, 2012 at 3:56:28 PM