PORT BUSINESS MODELS
The Pacific Coast needs a new type of port business model Advancing the case for a lifecycle, service-oriented port on the West Coast By Darryl Anderson, Phil Davies and Hanh Le-Griffin
P orts on the U.S. Pacific Coast — Los Angeles, Long Beach, Oakland, Seattle, and Tacoma — remain central to global trade. Their scale and efficiency have made them highly successful. However, that success has also created limits. Land is heavily used. Communities expect stronger environmental performance. Compliance costs are rising. Labor arrangements are complex. Global trade volatility adds further pressure. These ports are well suited to con- tainer and bulk cargo. They are less suited to space-intensive and project- based activities such as vessel retrofits, modular industrial assembly, and large decarbonization projects. Canadian Pacific ports face similar constraints. This points to a shared problem. The Pacific Coast port sys- tem does not have enough specialized facilities designed for lifecycle servi- ces, modular cargo, and industrial transition. Policy evolution and strategic direction The 2022 Canada Marine Act Review concluded that Canadian Port Authorities play a much larger strategic role than originally envisioned and need updated governance, stronger federal coordination, and expanded financial tools to meet growing infra- structure demands. It also emphasized embedding climate action, Indigenous participation, and supply chain resili- ence more directly into the national port system while modernizing rather than fundamentally restructuring the existing legislative framework.
This article proposes a complementary Pacific Coast port model. The focus shifts from scale to service and from volume to specialization.
• A replacement for major gateways • A traditional logistics-only facility • Its value comes from specialized, high-value services and long-term industrial integration. A lifecycle-oriented port would be designed as a place where vessels and industrial assets stay for extended work, not simply move through. Marine services would include vessel retrofits, electrification, hybrid propul- sion upgrades, and long-term main- tenance. Target fleets would include ferries, harbor craft, offshore service vessels, and government ships. As regu- lations tighten and operating costs rise, operators will need space and skilled labor to modernize fleets. A specialized port can provide that capacity. The port would also handle mod- ular and project-based cargo. Instead of focusing on standardized, high- volume freight, it would support the assembly and staging of large indus- trial components. This is important for offshore renewable energy, hydrogen, and industrial electrification projects. These projects require laydown space and heavy-lift capacity. Gateway ports often lack this flexibility. Decarbonization would be built into the port’s design and operations. Facilities would support new fuels, emissions-reduction systems, and the safe modification or retirement of car- bon-intensive assets. Environmental performance would be part of the
In the United States, port governance is decentralized. It is shaped by local politics, fragmented funding, and the absence of a national port strategy tied directly to industrial policy. Federal funding under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) is driv- ing clean energy and manufacturing growth. Port infrastructure, however, has not kept pace with the lifecycle needs of these sectors. A complementary port platform for industrial transition This article proposes a complement- ary Pacific Coast port model. The focus shifts from scale to service and from volume to specialization. Vision: A Pacific Coast hub for life- cycle marine services, modular project cargo, and industrial decarbonization. The goal is to support energy tran- sition, strengthen regional supply chains, and improve economic and environmental resilience. What it is: • A lifecycle- and service-oriented port • A modular project cargo and indus- trial staging hub • A circular economy and asset retire- ment center • A complementary part of the exist- ing Pacific Coast port system What it is not: • A high-volume container or bulk port
March 2026 — PACIFIC PORTS — 23
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