ALASKA / HAWAII\\\ >> 18


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Department of Transportation. Along with our partners in the public and private sector, our focus is on adding value with the new terminal’s larger, more efficient footprint. The design is in keeping with the goals to provide for a more effective and


sustainable supply


chain,” he said. Construction is also on the


agenda at DHX-Dependable Hawaiian Express, which is planning a new, 76,000-sq. ft. warehouse and distribution center on Oahu, not far from the Port facility in Honolulu. “The facility we’re building will increase our long- term public warehousing capacities greatly, as well as improve our freight handling efficiencies and provide adequate parking for our equipment. It will make us more efficient and allow us to make other improvements in


terms of software and


our abilities/capacities that weren’t feasible given our current limitations in terms of warehousing and material handling at the current facility,” said Dechter. “ The company is also


deploying inventory control and e-fulfillment systems that will interface with customers’ existing systems. As a result, Dechter said, “A mainland company will be able to stock key items on multiple Islands, and when they receive an order, have it delivered the same or next day--as opposed to shipping it via ocean or perhaps air.”


Encouraging signs in Alaska


Alaska’s economy experienced a substantial downturn, but encouraging signs are evident.


“Alaska is


three years into a recession; and after a pretty steep decline, we are beginning to see improvements in freight volumes related to energy development,” said Alex McKallor, executive vice president and COO of Lynden. “Other industries such as retail, seafood and construction remain flat, so growth is really concentrated in energy-focused areas like Cook Inlet and Prudhoe Bay.” A new development for


A Lynden Transport truck hauls freight to a remote site on the North Slope of Alaska. (Lynden photo.)


Arctic shipping came this year with the expansion of barge service by Lynden’s Alaska Marine Lines. The shipping company will add North Slope villages and other locations to its many northern ports of call, which include hubs such as Nome and more than 65 villages along the coast of Western Alaska. “Our Arctic expansion,


like our past service improvements, is customer driven,” said McKallor. “These communities wanted to have reliable, cost-effective transportation, and Lynden’s ability to seamlessly weave our marine, highway and air capabilities together to improve their service is very compelling. Adding the Arctic to our marine service also completed our vision of providing statewide marine, highway and air service. “Although


the Arctic


remains a very challenging operating environment, with very narrow windows for marine navigation, we are prepared to support the needs of our customers as things change. Despite the current economic challenges in Alaska, we see a promising future in the Arctic and Alaska,” he said. Still, Alaska shipping faces


a major physical and financial challenge in the years ahead, in the form of needed rehabilitation of the Port of Alaska. The port is currently in the midst of a multi-year modernization comprising a dock extension, shoreside stabilization, dredging and construction of a petroleum and cement terminal, according to external affairs director Jim Jager. A recently revised estimate


that the project could cost up to $2 billion has led to a


PHH-JOC.5horizrev1217.indd 1 12/31/17 1:02 PM Serving Hawaii Is Our Business


Pasha Hawaii’s dynamic shipping network and knowledgeable professionals are here to serve your supply chain needs. Pasha offers the broadest range of container and roll-on/roll-off services between Hawaii and the Mainland, with connections to comprehensive intermodal services nationwide. Find out more at pashahawaii.com.


delay in final decision making on financing, amid concerns that needed tariffs would create painful


price increases for


Alaska consumers. Whatever the condition of


the state economy, air cargo operations are expanding vigorously in


Alaska, where


the major airport wants to strengthen its role as global air cargo hub, and the leading carrier is becoming an important player in the overall cargo market. The world’s fiſth busiest air


cargo airport, Anchorage saw cargo volume grow 2.5% last year, reaching 2.8 million metric tons.


“In 2018 the airport secured


new air cargo airlines, and that helps grow our cargo numbers,” reported Jim Szczesniak, airport manager. “We are also seeing a lot of growth using Anchorage


Issue 3 2019 - FBJNA


to connect Latin America and Asia. The perishables market between those two regions is really exploding and Anchorage is strategically located between those markets.” Anchorage already benefits


from a 16-year-old law that exempts


it from federal


restrictions on cargo transfers by foreign carriers. Alone among U.S. airports, Anchorage offers those cargo operators the ability to freely transfer cargo to their own or other companies’ planes for delivery to domestic locations. To build on that advantage,


ANC airport officials this fall released a request for ideas for building a Quick Cargo Center with facilities to support efficient cargo exchange. “Just as passengers use terminals to wait for their connecting flight, ANC envisions the Quick Cargo Center being a temporary


storage facility for cargo that arrives on one flight and needs to wait for a connection to another flight,” the request indicated. Alaska Airlines, meanwhile, has been juggling its traditional service to communities in the state with a growing national cargo presence. “At this point, we really have two separate networks carrier.


as Our a Seattle


combination hub


connects with the state of Alaska freighter aircraſt, and our continental U.S. network of belly cargo utilizes hubs up and down the West Coast,” observed Jason Berry, managing director, cargo. “Given our unique ability


to serve the state of Alaska, we transport perishable and time-sensitive products year-round. If you look at our footprint in the state, we support 19 communities from


An Alaska Marine Lines barge, with rail cars loaded below the stacks of containers and freight, sails near Valdez, Alaska. (Lynden photo.)


19


Barrow to Ketchikan, oſten by flying in critical and perishable products.” Berry continued: “We


invested in our fleet by completing delivery of


three


new 737-700 freighter aircraſt to support the state of Alaska market, replacing five 737-400 Combi aircraſt. This boosted our capacity in Alaska by 20 percent and has allowed us to become the largest scheduled cargo carrier in Alaska. Thanks to better fuel efficiency, we were also able to reduce costs to those shipping in Alaska.” Nationwide, Alaska’s cargo has


capacity been greatly


increased by the recent acquisition of Virgin America, along with 72 Airbus planes with cargo space unused by its former owner. That increased the airline’s total cargo liſt by 40 percent. Alaska Air also sees promise


in Hawaii, where carriers are


switching to narrow-


body flights that serve more destinations directly, Berry said. “Capacity, as a result, is being reduced across the industry. So, where we were considered a backup/overflow carrier, we are now capturing more business that would traditionally have gone on freighter or widebody flights. With more West Coast to Hawaii routes than any other carrier, we continue to see growth opportunities in the Hawaii market.”


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