1-16-15

Real Estate Journal — New Jersey — January 16 - 29, 2015 — 15B

www.marejournal.com

M id A tlantic

N ew J ersey Public and private sector leaders discuss the potential, the future and the challenges NAIOP New Jersey: Transportation and logistics key to growing State’s GDP

N

At the same time, the ship- ping industry “continues to evolve,” he said, specifically pointing to larger ships, more competition from other ports, and moderating cargo growth. “The challenges are to meet that competition, control costs, deal with environmental issues, increase port productivity,” and more. Key Port Authority proj- ects to meet those challenges include raising the Bayonne Bridge to admit those larger vessels, deepening the harbor, New Jersey Marine Terminal roadway improvements, and rail investments, Larrabee

explained.

into the equation given the amount of product that arrives from off-shore, and “we need to make sure cargo continues to flow through the port to sustain that growth,” said John Nardi of the New York Shipping As- sociation. And despite the challenges and issues, “this remains a top tier logistics market,” said John Galiher of Preferred Freezer Services. For his company’s business, “food imports and ex- ports are going up. The port is getting busier because we have something – a market – to sell.” Key to that is proximity, and

as one example, Galiher pointed to Goya Foods which could have moved its distribution opera- tions anywhere. The final desti- nationwas Jersey City, because Goya “knows where it needs to be – in the middle of the mar- ket,” he said. Companies need to be closer to their markets.” HowNewJersey’s logistics fu- ture plays out depends on “how developers speculate to meet that demand.” If that demand is met, and if the infrastructure is- sues are successfullymet, “New Jersey has a bright future for transportation and logistics,” Landsburg concluded. n

EWARK,NJ —Trans- portation remains key to New Jersey’s econ-

Logistics Trends Moderating a panel discus- sion on logistics trends, Anne Strauss-Wieder of A. Strauss- Wieder Inc. cited online order- ing, ordering by phone and free shipping for their impact on a logistics business that “came roaring back in 2014.” Empha- sizing the need for infrastruc- ture to support the increased speed to market, “we are a magic gateway in the heart of a big consumer area,” she said. “Everything is pointing in the right direction.” The port, once again, factors

omy, and while the outlook is strong, difficult challenges need to be successfully met to ensure the state’s economic future. That was the overview from public and private sector leaders at NAIOPNewJersey ’sAnnu- al Transportation and Logistics Update, held at theRenaissance Newark Airport Hotel. While noting that transporta- tion and logistics are “a prime factor in growing New Jersey’s GDP,” Maggie Moran of For- ward New Jersey kicked off the Transportation Outlook panel with the first key issue: “The truth about our aging bridges is that some are in worse shape than the fatal Minnesota bridge collapse in 2007 – and 8.2 mil- lion cars and trucks a day travel on those roads and bridges,” Moran said. She noted, as well, that the disastrous Minnesota event came after that state’s governor had twice vetoed a gas tax increase. An increase in New Jersey’s gas tax has, of course, been an issue on the table in terms of providing funding for the Transportation Trust Fund. Es- tablished to provide funding for road and bridge improvements statewide, “the fund will be out of money in seven months,” Moran said. “The gas tax is an investment – an investment that we will get a return on. Re-emphasizing the impor- tance of the infrastructure to the economy, “there is a con- stant need to invest,” agreed Rick Hammer , assistant com- missioner of the New Jersey DOT. “Maintenance needs to continue to grow, and it has been a struggle to keep up,” he said, noting that the resulting congestion costs New Jersey’s average driver 52 hours and $1,500 per year. Hammer outlinedkey projects statewide aimed at rectifying New Jersey’s infrastructure challenges, key among them being the $1.2 billion upgrade of the Pulaski Skyway, and replac- ing the Wittpenn Bridge over the Hackensack River. The port remains a key factor in New Jersey’s transportation and logistics picture, of course, with RichardLarrabee , direc- tor of port commerce with the Port Authority of New York & New Jersey, noting that “90 percent of New Jersey’s trade is carried by water. The port is an economic engine.”

287,000 SF 1,300,000 SF TO NJ TPKE EXIT 8A NEW CONSTRUCTION

Lease with the

Market Leader

Heller Industrial Parks - 205 Mill Road, Edison NJ 08837 (732) 287-4880

Made with FlippingBook - Online catalogs