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California needs to expand its seaports, airports and other shipping infrastructure to avoid missing much of an expected boom in international trade with Asia, according to a report released on Wednesday.
Because of rising overseas trade with Asian countries, freight and products flowing through California's ports may triple in weight by 2020, according to San Francisco's Public Policy Institute of California.
"Without more and better capacity, the state's infrastructure probably can't handle the growing demand - in effect, curbing growth," said Jon Haveman, an institute research fellow.
Additionally, the dollar value of exports shipped through the state may nearly triple and the dollar value of imports coming into California may nearly double through 2020, according to the institute.
But those expected gains will depend on improving the efficiency and increasing the capacity of California's ports, roads and railways, the institute said.
The institute's noted California's airports have already lost business in recent years as shippers looked for less congested runways and cargo facilities.
While the dollar value of trade through California's airports rose through the late 1990s, their share of US trade fell to 21 percent in 2002 from 38 percent in 1995, with half of the decline the result of shippers' taking their business elsewhere, the institute report said.

Copyright Reuters, 2004

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