Ties That Bind - Bay Area Council Economic Institute

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52 Ties That Bind those totals reveals slight growth in imports from Taiwan over the 2001–05 period, from 12,000 to 14,000 FEU; a steady decline in imports from Hong Kong, from 23,000 to 17,000 FEU; and more than a tripling of imports from mainland China, from 55,000 to 188,000 FEU. Cargo from the PRC to the Bay Area has grown by an average 36% annually since 2002, with the most dramatic growth in 2004 (44.7%) and 2005 (39.6%). Port Trading Volume Trading Partners Number of containers shipped in and out of Oakland Port by year. Millions of containers 2.5 2.0 1.5 1.0 0.5 1.64 Year ’01 1.7 ’02 1.9 ’03 2 ’04 2.27 ’05 Oakland port’s top five trading partners by weight for imports and exports. Millions of metric tons 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 South Taiwan Korea Thailand .63 .69 .35 These numbers reflect both the longer-term migration of manufacturing operations in Taiwan and Hong Kong to the PRC and, more recently, the rapid expansion of China’s trade since it joined the World Trade Organization in December 2001. Japan 1.5 China 3.6 Source: Port of Oakland The Bay Area region’s top 10 containerized imports from greater China in 2005 included: PRC Hong Kong Taiwan Furniture/parts Apparel Computers Electronics Electronics Resins Computers Computers Electronics Toys Toys Auto parts Plastic products Footwear Hardware/nuts/bolts Tools Books/printed materials Furniture/parts Piece goods Furniture/parts Plastic products Mixed retail goods Plastic products Mixed retail goods Tires/tubes Paper products Glass/fiberglass products Sporting goods Foodstuffs Bicycles/parts
Bay Area-China Trade: Behind the Numbers These products tend to reflect local demand, since most import cargo bound for interior points in the U.S. has historically moved through Southern California or the Pacific Northwest. Since 2004, however, freight shippers have increasingly demanded—and shipping lines have increasingly offered—first vessel calls at the Port of Oakland in order to avoid port, rail and highway congestion at Southern California gateways. A number of large retailers—Home Depot, Target, Walgreen’s, Williams-Sonoma, Gap and Dollar Tree Stores—as well as third-party logistics providers, distribution center developers and specialty importers have opened inland warehouse facilities to receive import cargo; inspect, test, assemble, package, label and tag specific items for retail sale; and re-load domestic containers with regional shipments ordered by specific stores. Marine containers are then returned to the Port of Oakland, either empty or with backhaul loads of agricultural and other products for export or local Bay Area delivery. New distribution center development has tended to concentrate along the I-80/I-50 corridor to Sacramento, Placerville and Sparks, NV, and at the I-580/I-5 juncture in the Stockton-Tracy- Modesto-Lathrop area, near the Union Pacific and Burlington Northern transcontinental rail ramps. Grubb & Ellis Co. reported that a dramatic 3.7 million square feet of industrial property was leased during 2005 along I-80/I-50, more than 2.6 million square feet of that in warehouse/distribution facilities. Industrial vacancy rates overall fell from 16.5% to 14.3%, and unemployment in affected counties fell to an average 4.6%. The San Joaquin Partnership, a publicprivate economic development corporation, added 857,000 square feet of new and expanded warehouse/distribution space in San Joaquin County during 2005, on top of 3.3 million square feet in 2004. China-related import distribution has contributed to this growth. The Port of Oakland has seen import container volumes grow steadily since 2001, from 243,000 to 418,000 FEUs. Port container volumes in 2005 were up nearly 11% over 2004 totals, but imports were up 20.3% while exports grew by only 4.1%. Oakland’s share of West Coast cargo in 2005 approached 12%, as shipping lines diversified to other ports in order to avoid congestion at Los Angeles and Long Beach, which dominate West Coast trade. That trend has eased somewhat as Southern California terminals have improved productivity and extended gate hours under the “PierPass” offpeak incentive program, but inland rail congestion delays out of Los Angeles and Long Beach, particularly along southern U.S. routes and to Chicago, remain a problem. Exports Are Also Growing, but More Slowly Export statistics provide a less clear picture of Bay Area-China trade, since the Port of Oakland and Northern California are historically an export gateway to Asia for the entire U.S. Containerized exports to mainland China via Northern California nearly doubled from 52,000 FEU in 2002 to 102,000 FEU in 2005. During that same period, exports to Taiwan increased from 39,000 to 51,000 FEU, and exports to Hong Kong declined from 35,000 FEU to 27,000 FEU. Among non-containerized bulk shipments, exports to the PRC from 2001 to 2005—mainly scrap metal, petroleum and chemicals—grew from 611,000 to 723,000 metric tons. During 53
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The Bay Area Economic Forum wishes
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Bay Area Economic Forum 201 Califor
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Table of Contents Introduction ....
Page 9 and 10: Introduction About This Report The
Page 11 and 12: Introduction dollar-denominated ass
Page 13 and 14: Introduction practices of their sup
Page 15 and 16: Executive Summary The San Francisco
Page 17 and 18: Executive Summary As Silicon Valley
Page 19 and 20: Executive Summary 8. Establish regi
Page 21 and 22: 1 A Rich History of Work and Reward
Page 23 and 24: A Rich History of Work and Reward m
Page 25 and 26: A Rich History of Work and Reward t
Page 27 and 28: A Rich History of Work and Reward T
Page 29 and 30: 2 New Networks Emerge The Bay Area
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Page 33 and 34: New Networks Emerge nomic Law; the
Page 35 and 36: New Networks Emerge and academics f
Page 37 and 38: New Networks Emerge schools on the
Page 39 and 40: New Networks Emerge Hong Kong and T
Page 41 and 42: New Networks Emerge financing—ban
Page 43 and 44: New Networks Emerge Since the mid-1
Page 45 and 46: New Networks Emerge (R&D) innovatio
Page 47 and 48: Hong Kong Seeks Its Role New Networ
Page 49 and 50: New Networks Emerge In recent years
Page 51 and 52: New Networks Emerge savings rates a
Page 53 and 54: New Networks Emerge Two, featuring
Page 55 and 56: New Networks Emerge All of the abov
Page 57 and 58: 3 Bay Area-China Trade: Behind the
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Bay Area-China Trade: Behind the Nu
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4 Investment: Building Global Busin
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Investment: Building Global Busines
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5 Building Bridges, Leveraging Asse
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Building Bridges, Leveraging Assets
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Building Bridges, Leveraging Assets
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Acknowledgments This report was co-
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Walter Reichert Hewlett-Packard Co.
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Sources Introduction American Chamb
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Sources Hicks, John D. “The Ameri
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Financial Services Sources “A Gre
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Sources Schmitt, Kellie, “Lost Ho
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Sources “China-Based Worksoft Cre
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Sources Guerin, Didier, “Human Ca
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Sources Cooper, Chris, Ken DeWoskin
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Sources Liou, Fu Tai, “How Taiwan
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Ties That Bind - Bay Area Council Economic Institute

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