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Oct 10, 2011

PROGNOSIS * Canada - "By 2020, it will be crazy. Don't expect to get anywhere near a city,"

The effect of congestion on extended supply chains

Rexdale,ONT,CAN -Trucks News, by Lou Smyrlis -Oct 7, 2011: -- North American shippers have enjoyed a 30-year run of declining logistics costs but that is about to change, according to George Stalk, senior advisor with Boston Consulting Group, and lingering unwillingness to deal with a crumbling infrastructure is to blame...  While higher oil prices is a clearly visible factor creating upward pressure on logistics costs, less obvious, but critically important nonetheless, is the effect of congestion on extended supply chains, Stalk told...  He painted a future scenario where gridlock rules everywhere. North American ports, many of which flirted with capacity prior to the recession, will once again be pushing the limits of their capabilities. And they will have a tough time growing beyond their current footprint due to public opposition to further industrial growth on waterfronts...  He painted a future scenario where gridlock rules everywhere. North American ports, many of which flirted with capacity prior to the recession, will once again be pushing the limits of their capabilities. And they will have a tough time growing beyond their current footprint due to public opposition to further industrial growth on waterfronts...

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