A New Freight Route

The PCIP project will establish a new freight route between Asia and the Heartland of the United States.

Why do we need a new freight route? Additional U.S. port capacity is needed to meet the rising demand of import and export container cargo moving through the U.S. and global supply chain.

Why build a new gateway to inland U.S.A?

  • Growth in Trans-Pacific containerized trade is principally driven by US population growth and consumer demand. Since 2008, Transpacific containerized trade volumes between Asia and the U.S. have grown by up to 70%.

    Projected growth in imports demonstrates that container throughput will likely exceed existing US Pacific Coast port capacity in the near future.

    See data on global containerized trade volumes.

  • As global trade expands, the ports have struggled to keep up with the growing demand. The existing infrastructure and facilities are strained, resulting in congestion and delays in cargo handling.

    The location of US ports in urban areas creates land-side congestion which hinders the export stream for US products.

    The diversion of freight through the Panama Canal raises concerns around water levels and cost. Use of the Suez Canal or the Atlantic raises concerns about length of transit and reliability.

    Read more on the canal alternatives

  • About 75% of US agricultural exports are shipped by ocean, including approximately 28% in containerized agricultural products. East Asia is United States’ largest destination for American agricultural goods, with a 31% share of the U.S. ag. export market.

    Highway congestion encountered accessing the ports is costly for shippers. Expected growth in population and economic activities in the coming years means that the highway system in and around the ports is likely to become more congested which not only affects timely access to terminals, but also increases shippers’ transportation costs. By alleviating port congestion, agricultural shippers’ transportation costs will be reduced, making exports more economical.

    As demand for U.S. exports is highly price sensitive, American agricultural businesses risk losing their largest international markets if transportation costs are not reduced.

    Read more on the plight of agricultural shippers.

The PCIP adds 1.2 million TEUs of effective annual throughput capacity to the West Coast.

  • The PCIP will be in a natural deep-draft port with a short 6-mile trip to open ocean, ensuring rapid freight flows.

  • The PCIP’s rural situation mitigates concerns around land-side congestion. Containerized freight will seamlessly move in-and-out by rail.

  • The PCIP’s connection to the Class I railroad network offers an efficient route to growing inland destinations, especially in the Midwest.

To enhance outbound freight flows, the PCIP will work closely with inland port operators to develop a streamlined route for exports from the U.S. Midwest, mountain and western states.