After a period of less than one year since General Electric Company (NYSE:GE) Transportation and Los Angeles Port launched a digital solution aimed at ensuring the efficient flow of cargo through the biggest container port in the United States, the two entities have agreed to expand the program. The expansion will now see shipping lines and container terminals at the port included in the digitization program.

As a result of the success achieved during the pilot phase, the new commercial agreements signed between General Electric Transportation and Los Angeles Port will be worth approximately $12 million. Cargo importers, over 15,000 truck providers and around nine million shipping containers will be supported by the agreements. The extension of the relationship will see the project run for another five years at the minimum. The city council of Los Angeles will review the agreement.

Digital shipping solution

According to the executive director of Los Angeles Port, Gene Seroka, the digital shipping solution being offered by General Electric Transportation is critical to the success of the facility as container volumes have reached record highs. The General Electric portal will assist in the port’s long term growth and will also send a message to customers and stakeholders that the facility takes the responsibility of finding new ways of achieving optimization and efficiencies seriously.

Initial results from the pilot reveal that efficiency gains ranging between 8% and 12% are anticipated at the LA port. Users of the port have been surveyed and most have commended the improvements that have been made with some in agreement that the GE portal has made a difference and that the data is easy to access as well as easy to understand.

Positive feedback

“This project has been a home run. The Port of Los Angeles has transformed data into information that can be utilized by stakeholders to optimize their goods movement processes,” said an executive at APM Terminals, John Ochs.

According to the same survey, users also expressed support for the integration of more shipping lines and terminals into the solution.

On Monday shares of General Electric Company fell by 0.24% to close the day at $24.49.