Marine transport: back on an even keel.

AuthorTyson, Ray
PositionAlaskan shipping industry

MARINE TRANSPORT Back On An Even Keel

JUDGING FROM THE VOLUME of northbound cargo moved by the state's three major ocean carriers last year, it's safe to say the recession is over and Alaska's economy is on the rebound. But what about 1990 and beyond

Like much of Alaska's air cargo and trucking industries, Alaska's water carriers rode high on the wake of the Exxon Valdez oil spill and the millions of dollars the cleanup effort pumped into the state's economy. So matching 1989's performance rate will be difficult this year for Sea-Land Services Inc., Totem Ocean Trailer Express (Tote) and Crowley Maritime's Alaska Hydro-Train.

Cargo statistics provided by the three carriers indicate volumes in 1989 grew by 10 to 15 percent over the previous year, with about half of the increase attributed to the Exxon Valdez oil spill cleanup and about half to natural growth following three years of economic recession.

Removing increases attributed to the spill, carriers are projecting about a 5 percent natural growth rate for 1990. "Somewhere toward the end of 1988, the recession hit bottom," says Ev Trout, vice president of sales and operations for Tote.

Adds Jack Sutherland, vice president and general manager of Sea-Land's Alaska Division, "We had a significant upswing in the size and strength of the marketplace in the fourth quarter of 1988, and it was pretty much across the board, particularly in staple goods. People who had been positioning themselves for major capital purchases came into the marketplace. We saw a strong movement in automobiles as well as some appliance merchandise. Also, the exodus of people from the Anchorage bowl had pretty much stopped, which brought back the market a little bit."

Alaska Hydro-Train, which moves a lot of heavy cargo by barge to Whittier for distribution to Railbelt communities, saw its tonnage grow by about 10 percent last year. "There definitely has been an assortment of materials going to the North Slope," says Michael Evans, the company's regional sales manager for Alaska. "In 1989, we saw more building materials move to Alaska, which indicates more construction."

More freight passed through the Port of Anchorage in 1989 than any other time since construction of the Trans-Alaska Pipeline in the mid-1970s. The an overall 21 percent increase over 1988. Petroleum alone increased by 38 percent and general cargo by 12 percent. Revenues jumped 11 percent to a little more than $4 million.

Sea-Land, with about 42...

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