West Coast Ports By ARNOLD DAVIS |
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ON TRACK FOR GROWTH
For the nation’s beleaguered
ports, it’s now full speed ahead. Demand for port services has never been
greater as volume and throughput continue to increase. Ports on North America’s
West coast particularly are balancing throughput capacity with a general but
growing lack of spare rail cars and available trucks. The trucking and rail
companies that serve the ports have been short of capacity and are making little
progress in changing their position. This shortage of equipment predictably will
worsen port bottlenecks as shippers have to wait for trailers, drivers and rail
cars. Commenting to the media on the shortage, Scott Arves, president of
transportation at Schneider National Inc, said that his company is rejecting
about five percent of new customer orders because of lack of drivers. "It’s the
worst imbalance I’ve seen in my 25 years."
From the port’s perspective, however, congestion is seen
primarily as an infrastructure challenge. Speaking from the Port of Long
Beach, Art Wong, said, "There are only so many ships terminals can handle
and only so many roads you can build. Trade flows are growing faster than we can
build infrastructure." Clearly, as international trade continues to expand, West
Coast ports are being asked to accommodate an increasing number of ships and to
extend gate hours to move ships in and out of the ports at a faster rate.
As long as capacity is the principal factor dominating the
direction of port improvements, West Coast ports are defining their success in
customer service, technology improvements and infrastructure connectivity. Many
are breaking records for containerized and bulk cargo. Typical comments coming
from the West coast emphasize a port’s relationship between infrastructure and
service. "Shippers and carriers have turned to Seattle because we have ample
capacity on our marine terminals as well as on our local roadways and on the
mainline railroads that move cargo to the rest of the country," said Port of
Seattle CEO M. R. Dinsmore. He was quick to add, "The growth on
international trade through the port is vital to the regional economy. Marine
cargo moving through the port generated nearly 20,000 jobs and more than $1
billion in payroll. I think we’re well positioned to grow our cargo volumes and
increase our value to the regional economy." As Seattle’s record cargo volumes
are driving demand for more container terminal space, the port recently
re-commissioned Terminal 25 and adjacent acreage to be used as for international
container movements. Cargo volume at the port was expected to reach 172 million
containers by year’s end.
In addition to its ongoing expansion plans, Seattle and five
other Washington State ports private companies and security coalitions received
more than $7 million in port security grant funding from the federal Department
of Homeland Security. The money is earmarked for 23 projects including access
controls, lighting, gates and fencing, and new equipment. For the ports of
Everett, Longview, Olympia, Tacoma, Seattle, and
Vancouver, the funding also will enable non operational mandates such as
security drills, recovery exercises, and operational communications.
This increase in activity is being recognized by shippers and
carriers as more are taking advantage of port enhancements. At the Port of
Tacoma, for example, Yang Ming Transport recently signed a long term lease
to become the port’s first single terminal user when Tacoma completes its
refurbishing of Terminal 7-D by mid year. "We chose the Port of Tacoma for its
ideal location as the gateway to the Pacific Northwest," said C.C. Wu, president
of Yang Ming America Corporation. "With direct access to an on-dock intermodal
network, increased terminal productivity and berthing specifications well suited
for our vessels, the port offered the right opportunity for Yang Ming to develop
a dedicated terminal to service our customers in the Pacific Northwest trade
lane…" Through vessel-sharing agreements with "K" Line, Yang Ming has operated
at the port almost a decade. In its current budget, the port estimates that its
expanded container facilities will generate a 19 percent increase over the
record volumes realized in 2004.
The Port of Vancouver, WA, made similar news with the
year-end announcement of a public/private partnership that won over Quadra
Mining. After a three year absence from the port, the company has decided to
reconvene movements of copper concentrate through the port. The mineral is
shipped to the port’s renovated Kinder Morgan facility from Nevada by rail and
truck and then loaded onto carriers bound for Japan and China.
In addition to the Kinder Morgan facility, Vancouver recently
restored Terminals 2 and 3 with over 100 acres of newly paved and lighted cargo
storage yards and access to rail. These break bulk terminals handle pulp,
lumber, plywood, steel and project cargo. According to a report released by
Larry Paulson, executive director at the Port of Vancouver, these improvements
are only part of a 2005 budget of more than $15 million for marine and
industrial expan-sion. Said Paulson, "For 2005, the port will significantly
invest in capital assets to accommodate the growth of port maritime and to
promote expansion of port industrial business."
The Port of Longview ended the year with the
completion of its $21 million Industrial Rail Corridor. "This project is a
milestone for the future development and diversity of our port," commented Larry
Larson, commissioner at the Port of Longview. "It improves the connection
between the railroad and our port’s marine terminals and industrial property."
The new rail corridor extends from the main line of the Burlington
Northern/Santa Fe Pacific railroads into the port’s industrial park and marine
terminals and opens a direct rail connection that avoids the previous circuitous
route across three at-grade crossings.
During the first meeting of the Port of Kalama Board
of Commissioners, Fred Swanstrom was elected to serve as president for 2005.
Also elected was Milford Westin, to serve as vice presi-dent and Jim Lucas, as
secretary.
Further up the coast, the Port of Vancouver, BC
experienced dramatic growth. With more than 15 consecutive years of increased
container traffic, the port has embarked on an expansion program that includes
partnership with the provincial and federal governments and railways. "The
impressive growth the Port of Vancouver is experiencing underscores the urgent
need to work together and plan for critical investments in our transportation
gateway," said Captain Gordon Houston, president and CEO, Vancouver Port
Authority. "It’s our job to make sure that the goods shipped in and out of the
Port of Vancouver move to market quickly, efficiently and reliably."
In that regard, the port last year opened the Axis Container
Hub, a new facility centrally located between the Port of Vancouver’s three
major deep sea terminals. It was the first phase of the port’s $35 million long
term plan to increase capacity while getting trucks off the road. In addition to
freeing valuable acreage alongside deep sea terminals, the hub puts importers
and exporters at one more centralized facility so containers are emptied and
then refilled at the same location. Vancouver is Canada’s largest and most
diversified West Coast port, trading C$29 billion in goods with more than 90
trading economies each year.
In close proximity to the Port of Vancouver, at least in
Canadian terms, is Port North Fraser, a major transporta-tion link for
the forest and construction supply industry. In addition to a bustling tug and
barge operation, the port’s access to Canada’s highway and rail networks has
provided the region with an economical means to move products it Canadian
markets and internationally as an important feeder port to Vancouver. Although
small by most international measures of volume, the centrally-located port
handles over 15 million tones of inbound and outbound cargo, including logs,
lumber, wood by-products, iron steel and general cargo. Port North Fraser is a
fully self-integrated transportation hub that has learned to manage the delicate
balance between the region’s economic needs with environmental values. It also
has grown in its importance as an important warehousing and regional
distribution center for Western Canada.
Nearly 1,000 miles south of Vancouver, BC, the Port of San
Francisco last year became the first seaport on the U.S. West Coast to
install Radiation Portal Monitors (RPM) to screen all import cargo. According to
Monique Moyer, executive director of the Port of San Francisco, the port was
chosen "as an urban port with a wide array of industries and activities which
makes this effort an incredible challenge…" The radiation portal is a detection
device that provides Customs and Border Protection with a passive, non-intrusive
means to screen containerized and breakbulk cargo, trucks, trains and other
carriers for the presence of nuclear and radiological materials.
In the San Francisco installation, trucks drive through the
RPM portal as they drive exit the terminal, a process that only takes a few
seconds. If the signal turns green, the truck proceeds out of the terminal. If
the signal remains red, a Customs agent directs the truck to a secondary RPM
that is located out of the flow of traffic and further tests are administered.
Nearby, at the Port of Oakland, Phase II of a program
titled SynchroMet that integrates ocean carriers with motor carriers through a
virtual container yard to perform mutually beneficial street turns, to reduce
costs and ease port congestion. "SynchroMet provides the Port of Oakland with a
tool to alleviate congestion. The use of SynchroMet will reduce Port truck
traffic and public road congestion, a benefit to our West Oakland neighbors and
Bay Area commuters," said Jerry A. Bridges, maritime director for the Port of
Oakland. "The Port of Oakland and SynchroNet Marine are partnering directly with
local stakeholders to understand and facilitate sustainable solutions to the
issues currently faced."
In Phase I of the SynchroMet program, carriers were provided
equipment visibility and opportunities for collaboration that reduced road and
gate congestion at local marine and rail terminal facilities. Endorsed by the
Northern California Intermodal Motor Carrier Conference, SynchroMet has shown it
can reduce empty truck miles and reduce diesel emissions affecting the local
environment. SynchroMet also enables users to track street-turned containers by
individual unit number as it provides confirmation of a street-turn event to
terminal operators and ocean carriers. It also provides motor carriers with a
one-stop-shop for information on port and terminal operations, customer service,
and contact information with links to ocean carrier and leasing company web
sites.
The
Port of Oakland also formed an alliance between Northwest Container Services,
Inc. (NWCS) and the City of Shafter (COS), which resulted in improving the
movement of goods in California. NWCS will be serving the California Integrated
Logistics Center (CILC) located in and developed by the City of Shafter. The
CILC combines an Inland Intermodal Center (IIC) with dedicated rail logistics
serving international marine terminals at the Port of Oakland. According to
Wilson Lacy, director of Maritime at the port, said, "This alliance is another
example of how public/private partnerships can provide innovative solutions to
freight transportation issues." Oakland’s other neighbor, the
Port of Sacramento,
is one of the state’s smallest ports, but it too is beginning to benefit from
the growth of West Coast cargo. Although its 30-foot deep shipping channel is
too shallow for most modern vessels, it primarily handles breakbulk commodities
and has begun to entertain the idea of barging cargo from the Port of Oakland to
better balance the overflow. Although the economic feasibility of container
barge feeders and rail line shuttles has not yet been fully determined, as a
satellite of the Port to Oakland, Sacramento would help the state maintain its
flow of intermodal commerce.
Intermodal also is booming at the Port of Stockton
where the Stockton Public Railroad has been increasing the number of railcar
moves by the thousands each year since 2001. Key to this growth is the port’s
immediate access to two transcontinental railroads complemented by two loop
railroads, one of which is on-dock for accommodating unit trains for export of
coal, petroleum coke, and ores. It also enables consolidation of rail shipments
of inbound and outbound steel coils.
At the Port of San Diego, security technology has
received the most recent attention. One of its tenants, Crossflo Systems, Inc.,
recently announced the first commercialized use of a data-sharing platform that
enables the Unified Port of San Diego, Los Angeles Port Police and the Los
Angeles County Sheriff to share data with the San Diego Harbor Police
Department. The Crossflo security initiative provides a framework for
representing different types of law enforcement and security databases and is
considered one of the most comprehensive and effective new tools in homeland
security. The priorities established by the Port of San Diego are being used as
a template for other West Coast ports. San Diego also has become on of the
nation’s leading ports for the processing of automobiles and other vehicles.
Since it opened its vehicle processing center in 1990, the port has processed
over 2 million vehicles and now processes more than 300,000 vehicles annually.
Of course, no summary of West Coast Ports would be complete
without mention of the country’s two largest port operations, the Port of
Long Beach and the Port of Los Angeles. Throughout the past year, a
surge in cargo and a shortage of longshore workers slowed vessel movements
almost to a trickle as dozens of vessels were forced to wait at anchor for days
for an opportunity to reach a berth. The congestion reached an embarrassing
level in the fall as close to 50 vessels were at anchor with nearly the same
number berthed but idle, waiting to be handled. As finger pointing and the
absence of culpability were replaced by teamwork and partnership, the ports
gradually gained back control over their operations. Finally, late in the year,
longshore workers were able to clear the seemingly endless bottleneck of vessels
and container volume and the ports dropped back to their "normal" operations
with fewer than a dozen vessels at anchor.
To reduce the probability of a return engagement of the
vessel bottleneck dilemma, the Port of Long Beach initiated a
new roadway construction project that will help to ease traffic congestion along
Ocean Boulevard on Terminal Island. The $34 million project began early this
year and is projected to be completed in 2007. When completed, motorists using
Ocean Boulevard will be able to travel non-stop east and west on a new elevated
roadway over the intersections with the Terminal Island Freeway and Henry Ford
Avenue. Traffic signals at these intersections, to a measurable degree, helped
to contribute to the port’s chronic congestion.
Richard Steinke, executive director of the Port of Long
Beach, addressed the LB Chamber of Commerce on January 14th, with a "State of
the Port" review. Cargo volumes continue to increase through Southern California
ports. With 8,000+ TEU container vessels calling the San Pedro Ports with more
frequency, terminal efficiency will be the key to keeping the Port Complex the
vital cog in the goods movement system. Steinke discussed his view on what needs
to happen to move increasing volumes while mitigating impacts of cargo growth to
the community and environment.
Appointed to his current position in December 1997. Richard
Steinke has successfully directed the redevelopment of the 500-acre, former Long
Beach Naval Complex on Terminal Island into shipping terminals. He led
negotiations that culminated in a 25-year lease with Hanjin, under which the
South Korea shipping company pays the port a minimum $40 million a year, or a
minimum total of $1 billion over the life of the lease.
Also under Steinke’s direction, the port launched a
decade-long $1.9 billion capital improvement program to create new and more
efficient shipping terminals and redevelop existing ones to handle a projected
doubling in cargo. Since Steinke was named executive director, port container
cargo volume has increased by one-third.
For the 2001-2002 year, Steinke was chairman of the American
Association of Port Authorities, an alliance of more than 150 port authorities
in the United States, Canada, the Caribbean and Latin America. He is a member of
the AAPA’s executive committee as the representative for South Pacific ports. He
is currently the president of the California Association of Port Authorities.
Steinke is a member of the board of directors of the Alameda Corridor
Transportation Authority, Intermodal Container Transfer Facility Joint Powers
Authority, Harbor Association of Industry and Commerce, St. Mary Medical Center
in Long Beach, and a member of the Red Cross CEO Advisory Committee.
Prior to joining the port in 1990, Steinke served five years
as airport property officer at Stapleton International Airport in his native
Denver, Colorado. A graduate of Chadron State College in Nebraska, he has done
post-graduate work at the University of Colorado.
The Port of Los Angeles, in addition to its many
accomplishments, was singled out by an industry group as the top seaport in
North America. Selected over other West Coast ports and the Port of New York and
New Jersey, Los Angeles ranked higher in attributes including service,
reliability, cost, convenience, and, yes, ease of access, among others. "It is
truly an honor to receive this prestigious award," said Larry Keller, executive
director of the port. "The port is committed to listening and responding to our
customers and this award says loud and clear that the industry appreciates the
work of the people of Los Angeles." {}