International Transportation Service Inc. will soon vacate its TransBay Container Terminal at the Port of Oakland, and Ports America will move into the space. The transfer, to take place at the end of August, was approved last week by the Oakland port commission. ITS has operated the 49-acre TransBay terminal at berths 25-26 since 1986 and expanded into a portion of the adjacent berth 24 in 2008. Berth 24 was subsequently included in the berth 20-24 concession and lease agreement that the port entered into with Ports America in 2009. Since that date, ITS has continued to use a portion of berth 24 under a license agreement with Ports America that will expire on August 31. Rather than operating exclusively on berths 25-26, ITS has opted to turn the TransBay space over to Ports America - thereby reducing the total number of container terminals at the Port of Oakland and giving Ports America a 210-acre terminal, which will be the largest container terminal at the port.
Port of Oakland officials say that carriers currently calling at the TransBay Container Terminal, including "K" Line, Cosco, Hanjin and Yang Ming, will continue to call at the Ports America Terminal. Ports America also will do its best to use many of the ITS employees, port officials said. The transfer of the terminal from ITS to Ports America was applauded by a representative from the ILWU Marine Clerks and from a trucking company that said the combined terminals will result in a single terminal gate and a more efficient flow of cargo.
The transfer of the TransBay Container Terminal from ITS to Ports America may save the Port of Oakland as much as $323,000. In 2009, Ports America asked port officials to remove three cranes from berths 20-21 because the cranes were old and lacked sufficient height and outreach to service present-day containerships. Ports America has waived that requirement now that the company will take over berths 25-26. Port officials say they would have spent $323,000 to demolish the cranes that will now remain on the docks.
The California Air Resources Board is considering changes to its drayage truck regulation which would give some truck owners at least three extra years, depending on engine model year, to operate trucks retrofitted with Level 3 diesel particulate filters. The proposed changes would still require all pre-2007 trucks to have Level 3 diesel particulate filters by the end of 2012, but truck owners would not need to further upgrade until at least 2017 - as opposed to the current 2014 deadline. Changes in the drayage truck regulation also would give CARB the ability to cite non-compliant trucks that participate in dray-offs outside of port terminals. In addition, standards will be set for trucks first entering port service. The changes in the drayage truck regulation are expected to be considered by the CARB board in September and are designed to synchronize regulations for drayage trucks and other trucks and buses in the state. The regulation specific to drayage trucks is proposed to sunset on Jan. 1, 2017.
San Diego port commissioners have established a Marine Terminal Impact Improvement Fund to address truck traffic and pay for other effects of cargo operations on communities adjacent to the Tenth Avenue and National City marine terminals. One-half of one percent of the gross revenues earned from the two terminals - amounting to about $113,000 this year - along with $500,000 shaved from an existing capital development project will be transferred to the fund. Revenues from the fund will help pay for construction of freeway access projects to reduce the effects of port-generated truck traffic on neighboring streets. Funds also will be used for a park in National City and development of the National City Aquatic and Outdoor Education Center.
San Diego's decision to establish the Marine Terminal Impact Improvement Fund was prompted by legislation introduced earlier this year by California Senator Denise Moreno Ducheny. Senate Bill 1039 would have compelled the port to "include funding for cooperative infrastructure and capital projects" to mitigate the port's impacts on National City and the Barrio Logan community in San Diego. After Ducheny received a barrage of letters in opposition to her bill from port tenants, unions, the San Diego Convention and Visitors Bureau and several cities, she sat down with Port Commission Chairman Robert Valderrama to discuss alternatives. The idea for the Marine Terminal Impact Improvement Fund was drafted by Valderrama and other commissioners, together with port tenants and staff. As a result, Ducheny has withdrawn her bill that passed the state Senate but never made its way to the Assembly.
In the meantime, Los Angeles harbor commissioners are still working out details on the formation of a nonprofit organization to operate a Port Community Mitigation Trust Fund. The nonprofit group would oversee the grant selection and grant-making process for disbursement of port funds for various community projects designed to mitigate the impact of port operations and growth. Although the concept of the mitigation fund and nonprofit group was approved in April 2008, the nonprofit has yet to be formed. Following two and a half hours of legal haggling last week to discuss how and when funds would be disbursed to the nonprofit and how the port would ensure that the funds were spent in accordance with state tideland's laws, the board decided to continue the discussion at its Aug. 5 meeting.
The Port of Los Angeles will soon receive $1.2 million in EPA grant funds for the installation of a portable shore power system for five American President Line container ships. The liquefied natural gas generator system, known as a Flex-Grid System, was developed by Clean Air Logix of Oakland and provides electricity to ocean-going vessels equipped with alternative maritime power capabilities. The portable system is considered "bridge technology" which allows ships to use generator-provided electricity until grid-based shore power is available. The system will allow APL's ships to use shore power 18 months before grid-based power is installed at APL's terminal and will result in an early reduction of more than eight tons of particulate matter and seven tons of nitrogen oxide - in addition to a savings of 366,000 gallons of marine grade diesel fuel oil. After the APL terminal receives grid-based power, the Flex-Grid system can be transferred to other terminals. The EPA grant will cover about a third of the cost of the $3.6 million system.
In addition, the Port of Los Angeles is scheduled to receive $731,298 from the EPA to purchase and test an EcoCrane - a project on EPA's emerging technologies list. The EcoCrane, produced by EcoPower Hybrid Systems, replaces a conventional 685-horsepower diesel engine on a rubber tired gantry crane with a downsized 100-horsepower diesel engine that charges a battery pack. The battery pack drives an electric motor that handles both the propulsion and lifting of the rubber tired gantry. Because the downsized engine runs only periodically to maintain the battery's charge, the system is expected to reduce emissions of diesel particulate matter by 85 percent and greenhouse gas emissions by 70 percent. Port officials say their tests at the West Basin Container Terminal will verify the projected emissions reductions for EPA. If the 12-month test is successful, the port will require terminals to use EcoCrane replacement engines when it renews future leases.
In anticipation of an $8 million grant from the U.S. Maritime Administration, Port of Oakland commissioners have given Moffatt & Nichol engineers the green light to continue design on the port's shore power project. Port officials said last week that MARAD has approved an $8.5 million grant, of which $7.85 million is available for electrical infrastructure. Moffatt and Nichol engineers were hired by the port last November to design off-terminal electrical infrastructure and limited on-terminal infrastructure. Yet when the port later learned that it was not awarded two federal grants for the shore power project, Moffatt & Nichol was directed to stop work. Now that port officials are confident that "the check is in the mail," they have directed Moffatt & Nichol to resume work. The engineers will be paid from the unspent funds from the 2009 contract.
Port of Oakland commissioners have agreed to a three-month extension of the time period for exclusive negotiations with AMB Property Corporation and California Capital Group for the long-term lease and redevelopment of the former Oakland Army Base. The negotiations have been continuing since August of last year and were scheduled to conclude on Aug. 1. Speakers at last week's Port of Oakland commission meeting applauded the board's decision to extend the negotiations through Nov. 1, saying that redevelopment of a 168-acre portion of the base will result in much needed jobs for Oakland area residents. The port expects to spend up to $475,000 in additional legal fees to complete the negotiations.
At the same time, Port of Oakland commissioners agreed to spend as much as $1.65 million over the next three years to complete remediation of hazardous materials at the former Oakland Army Base. Up to $750,000 will be paid to Ninyo & Moore Geotechnical and Environmental Sciences Consultants, and up to $900,000 will be paid to BASELINE Environmental Consultants. The funds will be used to manage soil and groundwater investigations and to oversee remediation activities. Some of the funds may be reimbursed by the City of Oakland.
Although redevelopment of the Oakland Army Base may cost as much as $575 million, Port of Oakland officials say the redeveloped site will allow the port to compete more aggressively with other West Coast ports. The model for the redevelopment, which has been endorsed by proposed developer AMB Property Corporation and the port, will include an on-site rail terminal adjacent to intermodal transfer facilities. The goal is to bring containerized cargo into Oakland and immediately transfer it into larger domestic rail containers. Port officials say the concept will allow ocean carriers to keep their containers within the port and will give carriers an incentive for making Oakland a first port-of-call. Port officials project that the Oakland Army Base development could result in 25 percent container growth at the port - or an extra 500,000 TEUs by 2020.
Port of Long Beach commissioners have formally agreed to transfer $12.4 million to the City of Long Beach tidelands fund on Oct. 1 and to transfer an estimated $12 million additional to the fund after the port's 2010 fiscal year income statements are audited. The action follows a tentative agreement reached by a committee of the board two weeks ago. In taking the action, some commissioners questioned whether the decision to make a second transfer could be rescinded if the city requests more for police and fire protection than is currently in the port's budget. The port anticipates that it will be asked for $22 million this year for police and fire protection - but has been told that the amount could be increased
In the meantime, Long Beach City Council members are looking for ways to get more money from the Port of Long Beach, more quickly. After harbor commissioners decided to postpone a second transfer of funds to the city's tidelands fund until after the port concludes an audit of its 2010 income statements, some council members threatened to take the issue to Long Beach voters in a form of a charter amendment. The charter now says that the City Council may ask the port to transfer up to 10 percent of its net revenues to the tidelands fund after an audit is complete. Some City Council members want most of the transfer to take place on Oct. 1 of each year - before the previous fiscal year statements can be audited. (The port's fiscal year runs from Oct. 1 - Sept. 30.) Some council members also want the port to base the 10 percent transfer on its gross revenues - thereby ignoring previous transfers when calculating each new transfer. The issue is expected to be discussed at a meeting of the Long Beach City Council Charter Amendment Committee on Tuesday, July 27. Details
Negotiators representing employers at the Port of Los Angeles and Port of Long Beach have condemned negotiators for the ILWU Office Clerical Unit for the "defiant stance" they are taking during slow-moving labor negotiations that are now entering their fourth week. In a statement issued late last week, the employer representative said, "The OCU's defiant stance is guided by self-interest, not the welfare of the wider harbor community." Even though the two sides have ironed out minor details of 14 separate contracts with terminals at the two ports, they have yet to resolve major issues of dispute.
Employer representatives at the bargaining table with ILWU clerical workers say most agreements reached during the past week "represent compromises from the employers' original contract demands." Conversely, "The OCU has refused to make any movement on any of the employers' key issues," they say. The key issues include the ILWU's demand for employers to hire union "casual" workers anytime a union employee retires, resigns or is absent; the ILWU's opposition to the use of electronic technology, such as on-line bookings; and the ILWU's demand for a 32 percent increase in wages and benefits. Cargo operations at the two ports have not been impacted by the talks, which have been ongoing since the employers' contracts with the Office Clerical Unit of the ILWU Local 63 expired on June 30.
The Port of Seattle and Port of Tacoma issued separate progress reports last week documenting achievements they made during 2009 in reducing air pollution at their ports. The reports highlighted programs the ports have implemented in response to the Northwest Ports Clean Air Strategy - a set of goals adopted by both Puget Sound ports and Port Metro Vancouver, B.C. The Port of Seattle reported that during 2009, 63 percent of vessels calling at the port used clean fuels while at berth or plugged into shore power, in accordance with 2010 goals. In addition, more than 77 percent of the drayage trucks calling the port in 2009 met 1994 or newer model year emissions standards. Since then, more than 200 of the oldest and dirtiest trucks in Seattle's drayage fleet have been replaced.
At the Port of Tacoma, officials report that half of the ships calling the port last year met 2010 goals by using distillate fuel while at berth. Seventy percent of cargo-handling equipment met 2010 goals by running on ultra-low sulfur diesel or biodiesel fuel - up from 47 percent of the equipment that used clean fuels in 2008. Plus, ninety percent of the drayage trucks serving the port complied with the 2010 goal of meeting 1994 or newer model year emission standards. Eighty six percent of the trucks calling Tacoma met similar goals in 2008.
The Port of Seattle's online drayage truck registry is now live. Beginning Jan. 1, 2011, truckers who serve Seattle cargo terminals must be registered and display a Green Gateway sticker on their trucks for terminal access. The Green Gateway sticker will identify the truck as model year 1994 or newer. Older trucks will be banned from the terminals beginning next year. Truckers with model year 1994 or newer trucks are encouraged to register their vehicles free of charge.
The CMA CGM Rabelais made its first call to the Port of Seattle last week and shattered all previous cargo records when it discharged and loaded 4,300 containers. The 6,500 TEU ship connects Seattle to ports in Japan, Hong Kong, China, Malaysia, the Suez Canal and the U.S. East Coast. It is one of seven CMA CGM ships calling Seattle that recently replaced smaller 5100 TEU vessels in response to growing market demand.
In the meantime, APL has introduced a new peak season service to Seattle. The P1A service is scheduled to call Seattle every other Thursday through October with a capacity of approximately 2,300 inbound and outbound container lifts. The service connects Seattle to Hong Kong, China and Korea.
The Port of Tacoma is looking for a new Chief Commercial Officer. The executive level position will report directly to CEO John Wolfe and will oversee business development, security, maintenance and terminal operations and assist with strategic planning. Applicants must have at least seven years executive level management experience in a commercial capacity with an ocean shipping company and/or port authority. Candidates also must have experience in managing multiple departments and working with labor unions. Fondness of rain is helpful. Details
After a five-year break to identify disposal sites for dredged soils, the Port of Los Angeles has begun the final phase of its 13-year, $370 million Main Channel Deepening Project. Last week, a barge containing 4,000 tons of boulders and fill material began to discharge its payload at a containment area west of the Angel's Gate opening in the Los Angeles breakwater. The clean dredge material will be used to expand the port's outer harbor shallow water habitat by an additional 50 acres. Port of Los Angeles officials say the completion of the final phase of the project will span three years, and will allow the port to remain competitive with Gulf and East Coast ports that will soon be able to accommodate larger ships due to the 2014 expansion of the Panama Canal.
The Los Angeles port board is expected to vote Wednesday on whether or not to proceed with proposed plans by Gambol Industries for redeveloping the former Southwest Marine shipyard site as a new ship, barge and yacht building and maintenance facility. Although the plan has drawn some support from the community and unions, the port has expressed concerns about the viability of the plan and whether or not it would delay dredging of the port's main channel.
Majestic Realty senior vice president Fran Inman has been appointed by Gov. Arnold Schwarzenegger to the California Transportation Commission. The immediate past chair of the Los Angeles Area Chamber of Commerce board, Inman has been long involved in California trade and transportation issues. Before joining Majestic - one of the largest commercial real estate development firms in Southern California - in 1996, she was principal of Inman and Associates, vice president of Management Resources, and a broker for Bishop Hawk.
Joel Valenzuela is the new Director of Maritime Operations at the Port of San Diego. Valenzuela, who has been with the port for 15 years, replaces Leonard Fabor, who resigned from the job in December 2009. Valenzuela was previously department manager of Maritime Industry and Trade Relations.
The California Air Resources Board has named Stanley Young as its new communications director. He has been with CARB since 2008 and been serving as acting communications director since April. Before joining CARB, he worked as a special contractor to the agency from 2007 to 2008.
Joseph Lyou will take over as president and CEO of the Coalition for Clean Air starting in September. He will replace Martin Schlageter who has been serving as interim executive director for the organization until a new chief executive could be found. Lyou comes to the CAA from the California Environmental Rights Alliance, where he was the executive director and founder. He is also the governor's appointee to the South Coast Air Quality Management District board. Lyou earned his doctorate from UC Santa Cruz in 1990.
The Port of Long Beach has retained its Harbor Cub Golf Trophy, with a one-stroke win over the Port of Los Angeles. The two ports compete annually in the golf tournament sponsored by the Harbor Association of Industry and Commerce.
-- The Cunningham Report
