Expansion projects for two major East Coasts ports may give a lift to railway shipping in that part of the world, according to an analyst.
The Port of Virginia is in the middle of a $375m endeavor that involves 30 semi-automated container stacks and 60 new rail-mounted gantry cranes (RMG).
The project, set for completion by mid-2020, is expected to increase throughput capacity by 46% to 1.3 million teu per year.
"We're 40% of the way through construction and are seeing good flow at the gates," Virginia Port Authority chief executive John Reinhart said.
The port in February capped a $320m project at South Norfolk International Terminals that involved adding 13 container stacks to 15 existing ones and building two new RMGs.
This expansion doubled throughput to 1.2 million container lifts per year.
"The $700m investment being made in the Port of Virginia puts it in the best position to become the US East Coast's premiere port and a major hub for ultra-large container vessels," Reinhart said.
At the same time, Canada's Port of Halifax is carrying out a $35m dredging and port expansion project that will allow the inlet to accommodate larger ships and higher volumes.
It is scheduled for a spring 2020 completion.
CSX, Norfolk Southern are in luck
Investments in East Coast ports may boost demand for intermodal service for railway carriers Jacksonville-based CSX Corp and Virginia's Norfolk Southern, says Deutsche Bank analyst Amit Mehrotra.
These upgrade may also benefit Montreal's Canadian National Railway while hurting Union Pacific Corp of Nebraska and BNSF Railway of Texas, he said.
"We continue to observe a wave of investment into East Coast ports as they look to grow market share and support larger containerships," he wrote in a note to analysts.
