Port of Baltimore
Background information
The port of Baltimore is a highly valued asset operating in the maritime industry in Maryland. Baltimore is a public marine facility operating in the secondary sector. It is a significant anchor that facilitates imports and exports into the nation (Maryland Government, 2020). The growing market has seen its activities and accommodation for more operations increase. Its prime location, between the three branches of river Patapsco, enables it to serve a broader market.
The port serves the market in the United States and international operations of importation and exportation. China is the leading market due to its exportation of steel and machinery into Maryland (Lemke, 2010). The main products that form the most extensive revenue base are the motor vehicle importation form the United States. In the year 2018, the port received approximately 36.7 million tons of imports and exports. In this case, the company employs workers to handle daily activities and continuous functioning and creates over 435,000 jobs in Maryland. However, the ports came under the national government commerce department in late 2006 during its renaming of the port after Helen Delich Bentley. It means that there is an enormous opportunity for development that has not yet commenced.
Port’s strategic goals
The strategic location of the port provides an excellent opportunity for growth and expansion. More so, there is an increasing trend of importation and exportation activities in Maryland as an international business grows. One of the primary strategic goals of the port’s management is to increase its operations and capacity to accommodate the rising demand (Port of Baltimore, 2019). It features growing the volume of the containers, automobiles, and cruise by an annual growth rate of 3% per year. The cruise department involves increasing accommodation and the number of international cruise ships that access the port. The new cargoes will have special handling and storage capacity that allows the port to receive large volumes of imported products. Further, safety and efficient navigation channels are priority concerns that will facilitate brand recognition. In this case, the port ought to increase its infrastructure and terminals to increase cargo capacities.
Strengths of the port
The port of Baltimore is in a strategic location in the mid-Atlantic hat interconnects Maryland nation to the international market. The incredible access to the sea supports a deep channel model that facilitates the shipping of large cargos. Moreover, the port’s bay covers a vast area that is geographically appealing to expansion opportunities and infrastructure. A more comprehensive service base can ensure the port handle many ships and cruise from many regions without traffic congestion. Further, the port has a localized advantage due to the existing local road network and local industries. It enables it to facilitate the flow of products in and out of the port within a specific period.
Weaknesses of the port
The port has a huge limitation in capacity and revenue generation, which consists of only 27,000 kilotons of cargo per year. In comparison to other ports, Norfolk port handles approximately 102,000 tons, while New York port handles 58,000 tons of cargo per year. However, the Baltimore port has an immense geographical advantage and market opportunity. The primary concern is the lack of adequate funding as well as management since the government is redundant on its developmental plans. Furthermore, the slow developmental process is due to the lack of a sophisticated strategy that details the benefits of the port (Niland, 2018).
Metrics that the port utilize
Baltimore port utilizes top management analysis as the critical metric in evaluating its performance. The management is the focal point to all operations and forms a significant reliable input in its progress and performance (Shetty and Dwarakish, 2018). Moreover, understanding the qualitative level of various activities is key to a milestone in determining the performance of the port. The quantitative measures of performance are vessels stay at port, rate of loading, inland transport system capacity, and quality storage. The safety, efficiency, and delivery of goods and services depend on the five significant metrics in the list above (Shin et al. 2019). In this case, the management should ensure the effective execution of every activity accordingly.
Implemented improvement initiatives and innovations
Public investment is the primary determiner for cost-effectiveness in the marine industry. In Maryland, the government has a significant concern on the available infrastructure, such as roads and railways. These initiatives enhance easy logistics, which results in a reduction in costs and a more effortless movement of goods. Further, the Baltimore port has had significant investments in rail lines, channels, berths, and terminals to increase the container volume (Port of Baltimore, 2019). The latest innovation includes containerized cargo that seeks to increase the capacity of the port in terms of transportation and delivery. Indeed, the port has a rising trend in cargo volumes and the widening of the market.
Improvement initiatives and innovations Baltimore should consider
In the marine industry, exports and imports are huge avenues to increase revenues and operations. Therefore, attracting more exporters and importers is a prime goal for every port organization. Cost reduction initiative is an imperative move that can attract a large number of clients. Further, it should target particular exports, such as motorized vehicles and coal, which create significant national benefits. The Baltimore port has a considerable advantage due to the large population residing in its locality. In this case, it should focus on improving the local industries through the outsourcing of tasks and acquiring adequate labor from the people.
The next step to improve the port
The next cause of action is growing eh operations by increasing the volume of cargoes, international cruise, and containers. These strategies will help break the bulk and enhance massive recognition in the global market. The port management should implement an aggressive marketing approach and economic incentives. However, it should ensure that the quality is high and attractive as it explores expansion opportunities. The further action plan consists of terminal developments and aggressive rates. In this case, it can articulate the capacity of the port to the market and acquire substantial reviews.
Data analysis
The port of Baltimore has enormous opportunities for expansion and increasing the level of operations in the harbor. As per the history, trend, the container volumes increase slowly form the year 2010 to the year 2018. However, projections indicate a steady rise in the container volume and activities after the implementation of the 3% growth strategy. Further, there is an increase in the exports and imports due to the aggressive development plans. The figure below shows the historical trend of imports and exports and implied projections after developmental changes.
Figure 1: Source US DOT Freight analysis framework
Comparison of the supply chain
The port’s container volume is growing yet at a slower rate in comparison to New York and New Jersey ports. In general, the United States reports a tremendous increase in container volume at all ports. Further, the government initiates considerable funding to the commerce sector per year to enhance levels of imports and exports.
However, the Baltimore port is dragging behind in terms of total exports and imports handled each year.
A significant lack of substantial expansion projects indicates poor management and utilization of funds. The New York and New Jersey ports have a container expansion project to reach 12 million to 17 million units, unlike the Baltimore port that still handles less than ten million units. However, the Baltimore port has a significant advantage due to geographic status. In conclusion, an aggressive expansion project and exports and imports increase will facilitate the enlargement of the port value.