Extraordinary import volume bolsters east coast demand.

With a $1.8 billion capacity upgrade project underway at Port Newark/Elizabeth, the Port Authority of New York and New Jersey is working hard to support industrial real estate development in the region--and with good reason.

A recent Cushman & Wakefield study showed that during 2004, the major California ports imported more than $204 billion in goods while New York/New Jersey port districts imported almost $60 billion. Much of the volume increase in recent years reflects expanded sourcing from Asia, especially China.

In fact, China today holds a full 11 percent market share, by value, of imports into the United States. The extraordinary volume on the West Coast has created congestion and delays, prompting many importers to consider alternative strategies. Already, overseas companies are diverting more and more goods to the East Coast from overloaded West Coast ports. Viable long-term solutions include increased all-water service to the East Coast from Asia via the Panama and Suez canals.

Today, the New York/New Jersey region is the second largest in terms of China-based imports, including apparel and textiles, machinery, electronics, and furniture. Recognizing that demand will continue to escalate significantly in the near-term, the Port Authority is working to encourage the creation of new distribution infrastructure to complement the port improvements. The agency recently designated 14 area sites, including a number of Brownfields locations, as "Portfields."

These properties, intended for port-related uses, have attracted significant developer interest. One of the most notable projects is Catellus Development Corporation's Port Reading Business Park in Carteret and Woodbridge. The firm is completing construction of a 360,000-square-foot building on the 25-acre Carteret portion of the property and has approvals in place to build up to 3.25 million square feet on 290 adjacent acres in Woodbridge. As leasing agent for the property, we have seen significant levels of interest from users who will benefit from the park's port proximity.

Area towns are taking charge as well. Some local communities are creating redevelopment zones and appointing designated developers.

Ultimately, New Jersey is well positioned to continue its evolution as the East Coast's leading port hub. In 2004, container volume at Port Newark/Elizabeth grew more than 10 percent, and the value of total cargo in the port has increased nearly 22 percent since 2003. The current Port Authority project is anticipated to double the port's capacity by 2020. We are entering an unprecedented time of growth and prosperity in the region.