Governor Greg Abbott wants to clear the logistics logjam and wants container ships to come to Houston, Texas. This is his latest attempt to show that Texas is a business-friendly state.
With more than 100 cargo ships off the coast of California, Abbott said he has the solution to fix this problem.
On a November 1 tweet, Governor Abbott said:
“Texas ports are open & ready to help fix America’s supply chain backlog. We can get goods out faster & at a lower cost than California due to our centralized location.”
Recently, Governor Abbott tweeted a message to shippers.
The governor said to Fox Business:
"In just two weeks, those ships could go through the Panama Canal and go to the Houston port and Freeport port in the state of Texas and unload and be back in Asia before they would even be unloaded in California."
A recent ad said “Escape California. Everyone is doing it.”
Abbott’s plan gets support from a Houston school
The program director of supply chain and logistics technology in the College of Technology at the University of Houston, Margaret Kidd, said Gov. Abbott's plan was a "very classic economic messaging, and it was very timely."
"I applaud Gov. Abbott's message yesterday," Kidd said. "Texas is open for business. We have a very competitive advantage with the size of our state, the access to rail and highways, and the connectivity to the entire country."
In the future, this may give companies some more thought on where they plan to do business.
"We are seeing a record number of major corporations relocate to Texas and, at the end of the day, we should ask, 'Does Silicone Valley end at social media?' and 'Does Texas begin the future leading industrial innovation?'"
Why Governor Abbott’s plan may not work
The Port of Los Angeles spokesman Phillip Sanfield stated that about 40% of the nation’s imports go through Los Angeles. This is considered to be the gateway to and from Asia. They manufacture a majority of products and goods in Aisa.
Sanfield said logistically, Los Angeles is better suited to handle the deliveries because of the infrastructure required. The water depth and cranes to handle the large containers are already in place.
Additionally, Sanfield said ships will not be able to get through the Panama Canal.
He said in an email:
“There are ships that call LA/LB that are so big that they would not fit through the Panama Canal.”
Do you think Governor Abbott has a good idea to fix the backlog issue?