The Massachusetts Port Authority last week hosted a meeting on the impending expiration of the Vessel Sharing Agreement (VSA) and its potential impacts on the Port of Boston. Over 150 port users gathered at the Exchange Conference Center on Boston’s Fish Pier to hear from port officials and industry specialists. Massport updated port users on the maritime industry, the status of the VSA and the actions Massport has taken to attract and maintain all water service to the port.

The VSA, an alliance made up of several shipping companies including Maersk Sealand will expire as an entity on July 3, 2000. As one of two major steamship carriers currently serving the Port of Boston with weekly calls, the VSA partners include: P&O Nedlloyd, OOCL and Hapag-LLoyd. Although the VSA has been calling the Port of Boston since 1987, Massport along with other East Coast ports remain uncertain about what US ports the VSA partners will include in final vessel schedules after July.

As continued mergers, acquisitions and space sharing partnerships in the shipping industry accelerate, the Port of Boston is challenged to compete at a time when a reduced number of larger ships are attempting to serve the US market through fewer ports.

Massport Executive Director and CEO Virginia Buckingham and Port Director Mike Leone stressed their strong commitment to maintaining all water service to the port.

"We are committed to protecting and maintaining service levels that keep New England companies competitive with other regions of the country," said Buckingham. "To accomplish this, we are leaving no stone unturned in our efforts to encourage additional direct service to Boston."

Massport has embarked on an aggressive marketing campaign to attract new service from each of the VSA partners as well other shipping lines.

"The Port of Boston is a world-class port," said Leone. "The capital investments and operational improvements here have been significant. The Port of Boston has never been better equipped to handle the needs of its users and our productivity levels prove it."

Joining Massport officials in a panel discussion were: William Coffey, maritime consultant and president of R.K. Johns and Associates Inc., of NY, Ross Pope, president of the Boston Shipping Association and Joanne McDevitt, president of the Boston Propeller Club.

The Port of Boston is also served with direct weekly calls from Europe by Mediterranean Shipping Company, by SPM Marine which operates a weekly feeder vessel from Halifax and by Columbia Coastal Transport of NJ with barge service two times per week.

Following the meeting, several port customers expressed interest in working with Massport or with shipping group advocates to attract direct calls to Boston. Additionally, Columbia Coastal Transport announced that it would increase its twice weekly service to the Port of Boston if necessary.

With investments of over $100 million dollars in recent years to upgrade its port facilities, Massport is experiencing a rebirth in its container operations, auto processing operations and its cruise industry. Consolidation of it marine terminals, harbor dredging, new cranes, handling equipment, expanded space, warehousing and computerized truck processing facilities have all contributed to significant gains in the port.

Last month Massport reported 1999 container tonnage had grown nearly 8% with export tonnage alone climbing almost 14%. Automobile imports hit close to 84,000 last year, representing a 250% increase since 1995 when less than 24,000 were imported.

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