Hunts Point Terminal Market: the Demand for Waterborne Transportation As a Part of the Outbound-Distribution System
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Hunts Point Terminal Market: The Demand for Waterborne Transportation as a Part of the Outbound-Distribution System Final Report July 2017 Report Number 17-10 NYSERDA’s Promise to New Yorkers: NYSERDA provides resources, expertise, and objective information so New Yorkers can make confident, informed energy decisions. Mission Statement: Advance innovative energy solutions in ways that improve New York’s economy and environment. Vision Statement: Serve as a catalyst – advancing energy innovation, technology, and investment; transforming New York’s economy; and empowering people to choose clean and efficient energy as part of their everyday lives. Cover Image: Source Map Data Google, Google Earth Pro Hunts Point Terminal Market: The Demand for Waterborne Transportation as a Part of the Outbound-Distribution System Final Report Prepared for: New York State Energy Research and Development Authority Albany, NY Joseph Tario, Project Manager and New York State Department of Transportation Robert Ancar, Project Manager Prepared by: The State University of New York Maritime College Shmuel Yahalom, Ph.D. Captain Eric Johansson Changqian Guan, Ph.D. and The City College of New York Camille Kamga, Ph.D. NYSERDA Report 17-10 NYSERDA Agreement 46851 July 2017 Notice This report was prepared by The State University of New York, Maritime College (SUNY Maritime) and The City College of New York of the Region 2 University Transportation Research Center (UTRC) in the course of performing work contracted for and sponsored by the New York State Energy Research and Development Authority (NYSERDA) and the New York State Department of Transportation (DOT), hereafter the Sponsors. 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Information contained in this document, such as Web page addresses, are current at the time of publication. ii Key Words Hunts Point Terminal Market, outbound-waterborne transportation, produce market, wholesale-produce market, retail-produce market, food distribution, produce distribution supply chain Abstract The goal of the study is to explore an alternative to the primary use of trucks for outbound delivery or pickup of food products in the New York Metropolitan Area from Hunts Point Terminal Market (HPTM). The alternative proposed is the use of waterborne transportation, e.g., barges or freight ferries, as part of the food outbound-distribution system. The study’s objective is to quantify the potential demand for waterborne services from which vehicle mile savings will be determined. The waterborne vessel will be loaded with food products at HPTM and moved (self-propelled or pulled) to a strategically located predetermined site in the New York Metropolitan Area. Customers will pick up their preordered food products from this site. After the waterborne vessel is discharged, it will travel back to HPTM for the next day’s operations. Findings: An outbound, waterborne-transportation system moving produce from HPTM to its consumers will significantly reduce the surface transportation traffic and emissions in New York State east of the Hudson River. However, to obtain a reliable outbound, waterborne-operation system, a few major challenges a need to be overcome, such as trust between wholesalers, scale of produce delivered, schedule, and local delivery. Other challenges include community objections, service quality and customer relations, and the loss of toll revenues for City agencies. iii Acknowledgements The research team would like to acknowledge the efforts of many people who provided vital assistance in the completion of this project. First, thanks to Mrs. Anita Yahalom for her diligent and dedicated work in reviewing the research project and providing editorial comments and guidance. In addition, thanks to project managers Joseph Tario of NYSERDA and Robert Ancar of DOT for their guidance over the course of the project and to Mayra Gordon, CEO of HPTM, for her assistance and support. The researchers also extend their thanks to Beth Rooney from the Port Commerce Department of Port Authority of New York & New Jersey and Andrew Genn of New York City Economic Development Corporation (NYCEDC) for their exceptionally helpful review, comments, and suggestions. Thanks also to Susan McSherry and others at New York City Department of Transportion (NYCDOT) for their advice and support. We are also grateful to MetroFreight , a Volvo Research Educational Foundations Center of Excellence consortium led by the Metrans Transportation Center at the University of Southern California. The consortium includes the University of California Long Beach, The City College of New York, French Institute of Science and Technology for Transport, Spatial Planning, Development and Networks (IFSTTAR) at University of Paris-Est, and The Korea Transport Institute in Seoul. iv Table of Contents Notice ........................................................................................................................................ ii Key Words ................................................................................................................................iii Abstract ....................................................................................................................................iii Acknowledgements .................................................................................................................iv List of Figures .........................................................................................................................vii List of Tables ...........................................................................................................................vii List of Boxes ..........................................................................................................................v iii Acronyms and Abbreviations ...............................................................................................v iii Summary ............................................................................................................................... S-1 1 Background ....................................................................................................................... 1 1.1 Problem Statement ...................................................................................................... 9 2 Literature Review .............................................................................................................12 2.1 General .......................................................................................................................12 2.2 Hunts Point Terminal Market (HPTM) .........................................................................13 2.2.1 A profile of some HPTM wholesalers ...................................................................13 2.2.1.1 A&J Produce Corp and Katzman Produce ..........................................................14 2.2.2 A profile of supply chain time operation................................................................14 2.3 Other U.S. Wholesale Produce Markets ......................................................................15 2.4 Global Wholesale Produce Markets ............................................................................16 3 Research Methodology ....................................................................................................18 4 Food Distribution .............................................................................................................19 5 Produce Handling ............................................................................................................23 5.1 Packing .......................................................................................................................23 6 Retailers Demand Requirements and Scheduling .........................................................27 6.1 Retailers Delivery Scheduling .....................................................................................27 6.2 Third-Party Broker.......................................................................................................28