A new weekly cargo container service from Asia is now docking at the Port of Philadelphia, a.k.a. PhilaPort, raising expectations that trade between Pennsylvania and the world’s largest and most populous continent will significantly increase.
“The port is an economic driver, not only in Philadelphia, but across the Commonwealth,” said Gov. Tom Wolf during an Aug. 18 press conference marking the arrival of the Wan Hai Lines Ltd. vessel to PhilaPort. “Today’s maiden call marks a new chapter for PhilaPort and our Commonwealth [that] will bring a big boost to the port and our economy here in Pennsylvania.”
Since 2016, Gov. Wolf has approved investments of more than $539 million in PhilaPort’s infrastructure, warehousing and equipment, according to his office, and since implementing the infrastructure improvement plan, the port has seen record-breaking cargo volumes, nearly 60 percent container growth, and created thousands of new jobs.
The Wan Hai 315 vessel arrived at PhilaPort’s Packer Avenue Marine Terminal on Aug. 18 and was welcomed by international dignitaries, elected officials, supply chain professionals, and port officials, among others.
“The arrival of Wan Hai Lines’ Asia-America 9 (AA9) Service gives shippers a better alternative for trading with Asia. More broadly, it will help alleviate U.S. East Coast port congestion,” said Jeff Theobald, executive director and CEO of PhilaPort, the authority that manages the Commonwealth’s marine terminals along the Delaware River.
The weekly container service will make stops at Haiphong, Vietnam; Shekou (Shenzhen), Shanghai, and Qingdao, China; Kaohsiung, Taiwan; and Balboa, Panama on its way to the Packer Avenue Marine Terminal at PhilaPort, which Sean Mahoney, director of marketing at the port, said “sits at a unique nexus not found anywhere else on the U.S. East Coast.”
“It’s a port that has capacity to grow along with deep water, three class I railroads, a direct connection to I-95, and is surrounded by one of the fastest growing industrial warehouse markets in North America,” Mahoney said.
That kind of access is a huge cargo bonus, according to export development officials, who have reported that Pennsylvania-manufactured goods and farm products have been in need of more efficient routes to China, which is the state’s largest overseas export market. In 2021, Pennsylvania exports to China were valued at $3.4 billion, which surpassed totals of $2.9 billion and $2.6 billion in 2020 and 2019, respectively.
Taiwan, which the Pennsylvania Manufacturers’ Association says is also an important market for Pennsylvania cargoes, received $335 million in state-exported goods during 2020, and two-way trade between Pennsylvania and Taiwan is now over $1 billion.
The same is true for Vietnam, which has received increased exports from Pennsylvania, as well, rising from $85 million in 2019 to $109 million in 2020, and up to $113 million in 2021.
“Today, shippers only care about speed to markets. They are motivated to find better alternatives to what they are experiencing today,” said Tom Holt, Jr., owner of Holt Logistics Corp., which provides freight transportation and logistics services and operates the Packer Avenue Marine Terminal. “This new service gives shippers a product that is unheard of in these times.”
PhilaPort stakeholders also heralded the state’s investments in the port, calling them good public policy because they leverage private, port-related spending, including new warehousing, trucks, chassis, transfer facilities, and distribution centers.
“Where we are today is only a whisper of where we can be 10 years from now,” added PhilaPort Chairman Jerry Sweeney. “Wan Hai Lines’ maiden call announces the next chapter of the Port of Philadelphia’s historic upward trajectory.”
Among other speakers during the press conference were Philadelphia Mayor Jim Kenney; Wan Hai Lines Vice Chairman Randy Chen; Deputy Director of the Taipei Economic and Cultural Office Rita P. Chen; and Joseph V. Martella, U.S. Customs and Border Protection Area Port Director for PhilaPort.
“Thank you to the port’s leadership and staff for your hard work and dedication to making PhilaPort a leader in shipping, and to Wan Hai Lines for recognizing the potential that exists here in Philadelphia for new container service,” Wolf concluded during his remarks. “It’s an honor to be here with everyone today to mark this important milestone and I look forward to your upcoming successes.”