John Pistole, Administrator of the US Transportation Security Administration, visited the Port of Long Beach last week to view the latest iteration of TWIC card readers now being tested at several port terminals.
The Transportation Worker Identification Card, or TWIC, is a national identification system that requires transportation workers, including those in the maritime industry, to pass background checks before accessing port facilities. All workers requiring regular access to port facilities, such as dockers or drayage truck drivers, are required to have them. According to the TSA's latest statistics, just over 1.6 million TWIC cards have been issued since 2006 with about 150,000 applications currently pending.
At facilities where readers are not installed, TWIC cards are visually checked. In the case of a question being raised, information from the card can be input electronically and checked for validity online with the TSA. The readers would accomplish the same task, but each card would be checked against TSA records each time the card is swiped.
Pistole, along with other federal officials, visited the port's Pier A facility, one of five Long Beach terminals with the under-development readers installed. Long Beach is one of the few port complexes in the U.S. selected to participate in the long-term pilot project to develop the readers. The TSA first put out a call for the development of the readers in May, 2008, and several versions have been developed under the pilot program.
During a meeting at the Port's Command and Control Center hosted by Port of Long Beach Director of Security Cosmo Perrone, Pistole commended the partnership and cooperation he witnessed during his visit and reminded all present "we are all in this together."
Tuesday, December 7, 2010
Vancouver USA Named Top Washington State Port
The Port of Vancouver USA has been named top dog among Washington state's nearly 70 ports by the Washington Public Ports Association.
In naming the Vancouver USA port as the 2010 Port of the Year, the WPPA cited the port for creating transportation connections including the June 2010, completion of a state-of-the-art unit train facility at the port's recently developed Terminal 5. The $14 million project, part of the ongoing West Vancouver Freight Access rail improvement project, was completed on time and on budget.
The annual award, meant to honor leadership and innovation in economic development efforts, also acknowledged the port's role as a sponsor in the recently completed Lower Columbia Channel Deepening Project.
"The Port of Vancouver was presented this award because of their tremendous recent success in bringing jobs and investment to Clark County. They are a shining example of how to spur job-creation, and they have been recognized by their peers for their hard work," said WPPA Executive Director Eric Johnson.
The WPPA noted that the port's investments to date are attracting almost $400 million in private investment and the anticipated creation of between 1,000 and 2,000 new, permanent jobs and nearly 4,000 construction jobs.
"A prospective major tenant at the Port of Vancouver said they were drawn to the port because of the capability and professionalism of its staff and by the significant investment the port had made in rail infrastructure," said Port of Vancouver Commission President Jerry Oliver. "The Port of the Year award is a reflection on the staff and the economic vitality they bring to Vancouver."
In naming the Vancouver USA port as the 2010 Port of the Year, the WPPA cited the port for creating transportation connections including the June 2010, completion of a state-of-the-art unit train facility at the port's recently developed Terminal 5. The $14 million project, part of the ongoing West Vancouver Freight Access rail improvement project, was completed on time and on budget.
The annual award, meant to honor leadership and innovation in economic development efforts, also acknowledged the port's role as a sponsor in the recently completed Lower Columbia Channel Deepening Project.
"The Port of Vancouver was presented this award because of their tremendous recent success in bringing jobs and investment to Clark County. They are a shining example of how to spur job-creation, and they have been recognized by their peers for their hard work," said WPPA Executive Director Eric Johnson.
The WPPA noted that the port's investments to date are attracting almost $400 million in private investment and the anticipated creation of between 1,000 and 2,000 new, permanent jobs and nearly 4,000 construction jobs.
"A prospective major tenant at the Port of Vancouver said they were drawn to the port because of the capability and professionalism of its staff and by the significant investment the port had made in rail infrastructure," said Port of Vancouver Commission President Jerry Oliver. "The Port of the Year award is a reflection on the staff and the economic vitality they bring to Vancouver."
Researchers to Study Impacts of Columbia Snake River Closures
Washington State University researchers plan to use a three-month shut down of navigation locks on the Columbia and Snake rivers this winter to study the economic role the rivers' barge traffic plays in regional goods movement.
The Army Corps of Engineers plans to shut down the rivers Dec. 10 to replace gates at three sets of locks, including those at the Dalles and the John Jay dams on the Columbia, and gates at the Lower Monumental dam on the Snake. The Army Corps is scheduling to have the locks replaced and the rivers reopened by March 18, 2011.
While each of the locks is typically shuttered for routine maintenance for two to three weeks a year, the three-month shutdown will be the longest.
According to industry statistics, more than 8 million tons of cargo, worth up to $2 billion, move on barges over the two waterways, including nearly 40 percent of the regional wheat exports.
Agriculture exporters have been moving up or delaying shipments to prepare for the
The Port of Portland announced recently that it plans to offer incentives to shippers currently exporting through Portland to truck goods during the river closures to Portland, instead of heading to Tacoma or Seattle.
As one part of their study, researchers plan to look at how the higher cost of truck and rail shipping may impact the prices of commodities normally shipped via the rivers. The WSU team also hopes that the research may be useful to other river shipping routes that face similar disruptions, such as the Mississippi.
The Army Corps of Engineers plans to shut down the rivers Dec. 10 to replace gates at three sets of locks, including those at the Dalles and the John Jay dams on the Columbia, and gates at the Lower Monumental dam on the Snake. The Army Corps is scheduling to have the locks replaced and the rivers reopened by March 18, 2011.
While each of the locks is typically shuttered for routine maintenance for two to three weeks a year, the three-month shutdown will be the longest.
According to industry statistics, more than 8 million tons of cargo, worth up to $2 billion, move on barges over the two waterways, including nearly 40 percent of the regional wheat exports.
Agriculture exporters have been moving up or delaying shipments to prepare for the
The Port of Portland announced recently that it plans to offer incentives to shippers currently exporting through Portland to truck goods during the river closures to Portland, instead of heading to Tacoma or Seattle.
As one part of their study, researchers plan to look at how the higher cost of truck and rail shipping may impact the prices of commodities normally shipped via the rivers. The WSU team also hopes that the research may be useful to other river shipping routes that face similar disruptions, such as the Mississippi.
Long Beach Port Signs Info Exchange Agreement With Panama Canal
The Port of Long Beach and the Panama Canal Authority on Dec. 7 signed a memorandum of understanding covering a series of efforts to promote more trade between Long Beach and countries in the East Coast of South America and the Caribbean, via the Panama Canal.
The MOU calls for the port and Canal Authority to exchange ideas on dredging technology, engineering, environmental practices, and marketing.
“Latin America is a relatively small but an emerging trade partner for our region,” said Port of Long Beach Executive Director Richard Steinke. “This partnership will help increase our reach to this market as it expands.”
Panama Canal Authority Administrator/CEO Alberto Alemán Zubieta noted that Long Beach is a key logistics leader and the Canal Authority looks “forward to promoting the Canal to increase international trade among Long Beach, Latin America and the Caribbean."
Long Beach Harbor Commissioner Mario Cordero said that the MOU helps expands an international network of maritime entities dedicated to pursuing green, sustainable developments.
“The Port of Long Beach is dedicated to growing that network and has signed similar agreements with several ports in China, Europe and Mexico,” said Cordero.
While trade with Latin America accounts for a small percentage of the port's annual trade volume, port officials hope to tap into emerging manufacturing markets to boost future trade. The Canal is undergoing an expansion project expected to be completed by 2014, which will allow larger ships to transit through.
The MOU calls for the port and Canal Authority to exchange ideas on dredging technology, engineering, environmental practices, and marketing.
“Latin America is a relatively small but an emerging trade partner for our region,” said Port of Long Beach Executive Director Richard Steinke. “This partnership will help increase our reach to this market as it expands.”
Panama Canal Authority Administrator/CEO Alberto Alemán Zubieta noted that Long Beach is a key logistics leader and the Canal Authority looks “forward to promoting the Canal to increase international trade among Long Beach, Latin America and the Caribbean."
Long Beach Harbor Commissioner Mario Cordero said that the MOU helps expands an international network of maritime entities dedicated to pursuing green, sustainable developments.
“The Port of Long Beach is dedicated to growing that network and has signed similar agreements with several ports in China, Europe and Mexico,” said Cordero.
While trade with Latin America accounts for a small percentage of the port's annual trade volume, port officials hope to tap into emerging manufacturing markets to boost future trade. The Canal is undergoing an expansion project expected to be completed by 2014, which will allow larger ships to transit through.
Thursday, December 2, 2010
Carrier Trade Group Suggests Increased Transpac Rates
Citing cooling end-of-the-year cargo volumes and rising operational costs, the Transpacific Stabilization Agreement trade group has recommended voluntary rate increases on upcoming contracts – most taking effect May 1, 2011 – of $400 per forty-foot-container unit bound for United States West Coast ports and $600 per FEU for all other cargo.
In addition, the TSA is recommending that its 15 transpacific ocean-carrier members seek "full recovery of costs for other equipment sizes and improved collection of floating bunker and inland fuel charges as well as Panama Canal, Alameda Corridor and other fixed accessorial charges."
The TSA also recommended adjustments to store-door delivery rates as warranted, "to levels that adequately compensate carriers for rising costs in providing those services," according to a TSA statement.
Finally, the TSA recommended a peak season surcharge of $400 per FEU, effective from June 15, 2011 through November 30, 2011, with those dates subject to adjustment based on changing market conditions.
By law, the TSA cannot impose rate increases, only suggest them to its members. In practice, though, TSA recommendations are nearly universally adopted by member carriers.
The TSA said in a statement that despite two early quarters of growth in 2010, a transpacific peak season that cooled as early as July has left the transpacific trade lanes lagging relative to other Asia container markets, while operating costs continue to rise.
The TSA members noted a dramatic trade-wide improvement in the supply-demand situation for freight shippers during 2010. Asia-US cargo growth for the year has been surprisingly strong, and is forecast to settle near 12 percent by year end. According to industry analysts AXS Alphaliner, transpacific capacity grew by 18.6 percent in the November 2009 to November 2010 period. The first three quarters of 2010 saw 15 new and restored services enter the trade to meet demand, in part the result of improved rate levels. These included three new operators.
TSA members are also forecasting 6 percent to 9 percent cargo growth from Asia to the US in 2011. According to the TSA, meeting that demand and covering contingencies for a possible stronger recovery will require sustained revenue improvement.
“The transpacific market is clearly returning to some kind of ‘normality’, with the US and Asian economies still closely linked and imports from Asia still vital to US consumers and businesses,” TSA chairman and Hanjin Shipping Co. Ltd. CEO Y.M. Kim said.
However, Kim cautioned that added revenue is also necessary to support the service levels customers have come to expect in this trade. “Maintaining a stable infrastructure for the movement of goods is no less important today than in past years, and that will take sustained levels of carrier investment over time.”
The TSA carriers acknowledged that the financial picture has improved significantly this year, as the world economy has started to recover from the global financial crisis that began in earnest in 2008 and hit the industry hard in 2009. However, according to TSA, further revenue recovery is needed to restore financial stability.
“Carriers have experienced solid revenue growth across their entire networks in 2010, but two strong quarters in the transpacific – a highly competitive freight market with very thin margins – still do not fully offset two years of heavy losses,” Kim explained. “We said last year that we would not seek to recover all our losses in one year.
TSA Executive Administrator Brian M. Conrad said that a number of operating costs have continued to rise steadily, including labor, container handling, inland transport, and both purchase and leasing of container equipment during the persistent global shortage. Appreciation of some Asian currencies has effectively increased local currency costs relative to US dollar-denominated freight rates. Conrad said individual lines would be discussing with customers in greater detail the background to their revenue and cost recovery objectives as contract negotiations move forward.
In addition, the TSA is recommending that its 15 transpacific ocean-carrier members seek "full recovery of costs for other equipment sizes and improved collection of floating bunker and inland fuel charges as well as Panama Canal, Alameda Corridor and other fixed accessorial charges."
The TSA also recommended adjustments to store-door delivery rates as warranted, "to levels that adequately compensate carriers for rising costs in providing those services," according to a TSA statement.
Finally, the TSA recommended a peak season surcharge of $400 per FEU, effective from June 15, 2011 through November 30, 2011, with those dates subject to adjustment based on changing market conditions.
By law, the TSA cannot impose rate increases, only suggest them to its members. In practice, though, TSA recommendations are nearly universally adopted by member carriers.
The TSA said in a statement that despite two early quarters of growth in 2010, a transpacific peak season that cooled as early as July has left the transpacific trade lanes lagging relative to other Asia container markets, while operating costs continue to rise.
The TSA members noted a dramatic trade-wide improvement in the supply-demand situation for freight shippers during 2010. Asia-US cargo growth for the year has been surprisingly strong, and is forecast to settle near 12 percent by year end. According to industry analysts AXS Alphaliner, transpacific capacity grew by 18.6 percent in the November 2009 to November 2010 period. The first three quarters of 2010 saw 15 new and restored services enter the trade to meet demand, in part the result of improved rate levels. These included three new operators.
TSA members are also forecasting 6 percent to 9 percent cargo growth from Asia to the US in 2011. According to the TSA, meeting that demand and covering contingencies for a possible stronger recovery will require sustained revenue improvement.
“The transpacific market is clearly returning to some kind of ‘normality’, with the US and Asian economies still closely linked and imports from Asia still vital to US consumers and businesses,” TSA chairman and Hanjin Shipping Co. Ltd. CEO Y.M. Kim said.
However, Kim cautioned that added revenue is also necessary to support the service levels customers have come to expect in this trade. “Maintaining a stable infrastructure for the movement of goods is no less important today than in past years, and that will take sustained levels of carrier investment over time.”
The TSA carriers acknowledged that the financial picture has improved significantly this year, as the world economy has started to recover from the global financial crisis that began in earnest in 2008 and hit the industry hard in 2009. However, according to TSA, further revenue recovery is needed to restore financial stability.
“Carriers have experienced solid revenue growth across their entire networks in 2010, but two strong quarters in the transpacific – a highly competitive freight market with very thin margins – still do not fully offset two years of heavy losses,” Kim explained. “We said last year that we would not seek to recover all our losses in one year.
TSA Executive Administrator Brian M. Conrad said that a number of operating costs have continued to rise steadily, including labor, container handling, inland transport, and both purchase and leasing of container equipment during the persistent global shortage. Appreciation of some Asian currencies has effectively increased local currency costs relative to US dollar-denominated freight rates. Conrad said individual lines would be discussing with customers in greater detail the background to their revenue and cost recovery objectives as contract negotiations move forward.
Seattle Port Adopts $500 Million Budget for 2011
The governing board for the Port of Seattle on Monday approved a 2011 budget that includes just over $385 million in capital development and the retention of the $73.5 million in tax levy revenue paid to the port by area property owners.
"Generating jobs, protecting our environment, and holding taxes flat – those are our priorities and they are reflected in this budget," said Commission President Bill Bryant in a port statement.
Due to the port's austerity measures – including more than $28 million in 2009 budgeted cuts – and increased cargo volumes, the port is forecast to end 2010 in the black with a net income of $53 million.
Despite this, port CEO Tay Yoshitani said "We also expect costs to increase next year – particularly in employee benefits, deferred maintenance at existing facilities, and certain initiatives focused on maintaining our competitiveness and positioning the Port for future growth. We must continue to manage our budgets diligently and effectively."
The 2011 budget calls for no increase of the tax levy on local property owners over 2010 levels. However, the budget calls for the revenue level to remain constant, not the tax levy rate. If property values decline, levy rates to property owners would have to be increased to maintain the $73.5 million total public contribution to the port authority's finances.
The port authority's total 2011 operating revenues are budgeted at $498.5 million, a $21.7 million or 4.6 percent increase from the 2010 budget. Operating expenses are budgeted at $282.8 million, a $20.0 million or 7.6 percent increase compared to the 2010 budget. Excluding several extraordinary items, which according to the port authority include a capital policy change, the Port Centennial, deferred maintenance, new rental car facilities, regulatory requirements, and spending requested by airlines, the baseline increase is $8.0 million or 3.0 percent over the 2010 budget. Net Operating Income before Depreciation is $215.7 million, a $1.8 million or 0.8 percent increase over 2010.
The port authority oversees the Port of Seattle, Seattle-Tacoma International Airport, and various real estate interests.
The seaport expects growth from container volumes, crane rental and lease revenues to increase 2011 operating revenue by about 5 percent compared to the 2010 budget. Container volumes are expected to increase about 12 percent compared to initial 2010 budgeted volume, but, according to port officials, that increase will be slightly offset by a decrease in cruise ship revenue – the current schedule for 2011 cruise ship calls forecasts a 6 percent decline in passenger numbers. Critical 2011 port initiatives identified in the 2011 budget include developing a stewardship plan for key division assets, implementing a Green Gateway strategy, and developing near- and long-term strategies for increasing revenues.
Operating revenues from the Seaport Division are budgeted at $99.0 million. Total operating expenses including corporate costs are $47.1 million. Net operating income before depreciation is budgeted at $51.9 million.
The port’s Real Estate Division operating revenue is expected to grow by about 3 percent compared to 2010 budget levels. Revenue from the Bell Harbor International Conference Center is projected to increase by more than 15 percent as more events are scheduled there and at the Smith Cove Cruise Terminal. A continuing soft real estate market, according to port officials, could mean higher vacancies at the port's commercial properties and marinas. Key focus areas for the Real Estate Division cited in the 2011 budget will be to "closely manage costs, catch up on maintenance of properties, and manage retained sections of the Eastside Rail Corridor."
The Real Estate Division's operating revenues are budgeted at $30.7 million and total operating expenses including corporate costs are $36.1 million. Net operating income before depreciation is minus $5.4 million.
At Sea-Tac Airport, passenger levels dropped significantly less than at other major airports. Through June of 2010, domestic enplanements are down 1.3 percent over last year, but international enplanements are up 4.9 percent, for a net decline of 0.7 percent from 2009. The domestic airline industry is expected to be profitable in 2010 – Alaska Air Group reported record earnings for the second quarter – but it is not yet clear when airlines will see passenger volumes growing enough to increase capacity. For the remainder of 2010, the port authority expects no increase in passenger levels. For 2011 port authority officials forecast a modest increase of 1.0 percent. The Aviation Division business strategy for 2011 will concentrate on non-airline revenues and managing airline costs, according to the 2011 budget executive summary.
Operating revenues for the Aviation Division are budgeted at $367.8 million. Revenues from airlines are $216.4 million, non-airline revenues are $143.0 million, and revenue from Fuel Hydrant is budgeted at $8.4 million. Total operating expenses are budgeted at $197.9 million. Net operating income before depreciation is budgeted at $169.9 million.
"Generating jobs, protecting our environment, and holding taxes flat – those are our priorities and they are reflected in this budget," said Commission President Bill Bryant in a port statement.
Due to the port's austerity measures – including more than $28 million in 2009 budgeted cuts – and increased cargo volumes, the port is forecast to end 2010 in the black with a net income of $53 million.
Despite this, port CEO Tay Yoshitani said "We also expect costs to increase next year – particularly in employee benefits, deferred maintenance at existing facilities, and certain initiatives focused on maintaining our competitiveness and positioning the Port for future growth. We must continue to manage our budgets diligently and effectively."
The 2011 budget calls for no increase of the tax levy on local property owners over 2010 levels. However, the budget calls for the revenue level to remain constant, not the tax levy rate. If property values decline, levy rates to property owners would have to be increased to maintain the $73.5 million total public contribution to the port authority's finances.
The port authority's total 2011 operating revenues are budgeted at $498.5 million, a $21.7 million or 4.6 percent increase from the 2010 budget. Operating expenses are budgeted at $282.8 million, a $20.0 million or 7.6 percent increase compared to the 2010 budget. Excluding several extraordinary items, which according to the port authority include a capital policy change, the Port Centennial, deferred maintenance, new rental car facilities, regulatory requirements, and spending requested by airlines, the baseline increase is $8.0 million or 3.0 percent over the 2010 budget. Net Operating Income before Depreciation is $215.7 million, a $1.8 million or 0.8 percent increase over 2010.
The port authority oversees the Port of Seattle, Seattle-Tacoma International Airport, and various real estate interests.
The seaport expects growth from container volumes, crane rental and lease revenues to increase 2011 operating revenue by about 5 percent compared to the 2010 budget. Container volumes are expected to increase about 12 percent compared to initial 2010 budgeted volume, but, according to port officials, that increase will be slightly offset by a decrease in cruise ship revenue – the current schedule for 2011 cruise ship calls forecasts a 6 percent decline in passenger numbers. Critical 2011 port initiatives identified in the 2011 budget include developing a stewardship plan for key division assets, implementing a Green Gateway strategy, and developing near- and long-term strategies for increasing revenues.
Operating revenues from the Seaport Division are budgeted at $99.0 million. Total operating expenses including corporate costs are $47.1 million. Net operating income before depreciation is budgeted at $51.9 million.
The port’s Real Estate Division operating revenue is expected to grow by about 3 percent compared to 2010 budget levels. Revenue from the Bell Harbor International Conference Center is projected to increase by more than 15 percent as more events are scheduled there and at the Smith Cove Cruise Terminal. A continuing soft real estate market, according to port officials, could mean higher vacancies at the port's commercial properties and marinas. Key focus areas for the Real Estate Division cited in the 2011 budget will be to "closely manage costs, catch up on maintenance of properties, and manage retained sections of the Eastside Rail Corridor."
The Real Estate Division's operating revenues are budgeted at $30.7 million and total operating expenses including corporate costs are $36.1 million. Net operating income before depreciation is minus $5.4 million.
At Sea-Tac Airport, passenger levels dropped significantly less than at other major airports. Through June of 2010, domestic enplanements are down 1.3 percent over last year, but international enplanements are up 4.9 percent, for a net decline of 0.7 percent from 2009. The domestic airline industry is expected to be profitable in 2010 – Alaska Air Group reported record earnings for the second quarter – but it is not yet clear when airlines will see passenger volumes growing enough to increase capacity. For the remainder of 2010, the port authority expects no increase in passenger levels. For 2011 port authority officials forecast a modest increase of 1.0 percent. The Aviation Division business strategy for 2011 will concentrate on non-airline revenues and managing airline costs, according to the 2011 budget executive summary.
Operating revenues for the Aviation Division are budgeted at $367.8 million. Revenues from airlines are $216.4 million, non-airline revenues are $143.0 million, and revenue from Fuel Hydrant is budgeted at $8.4 million. Total operating expenses are budgeted at $197.9 million. Net operating income before depreciation is budgeted at $169.9 million.
Oakland Port Signs Cold Supply Chain Development Agreement With Chinese Firm
The Port of Oakland, one of the leading export ports for US agriculture products, has signed an agreement with China Merchants Holdings International to strategically market and develop supply chain solutions for US exports, particularly agricultural commodities and perishable products.
Officially signed in a ceremony at China Merchants’ Hong Kong headquarters earlier this month, the agreement will focus on enhancing warehousing and logistics facilities and creating seamless cold chain services for US companies exporting their perishable products to China.
According to port officials, the agreement is part of the port's effort to "aggressively coordinating its activities" with the federal National Export Initiative. The NEI was signed by President Barack Obama in March and seeks to double US exports by 2015.
The first activity of the Oakland/China Merchants partnership was the Cold Chain and Logistics Seminar held shortly after the signing of the agreement earlier this month in Chengdu, in central China. The seminar focused on the demand for US products in the emerging markets of western China. Leading ocean carriers and logistics providers attending the event discussed distribution challenges in China's inland regions and offered case studies. The seminar was co-sponsored by the Port of Oakland, the US Foreign Agriculture Service, and the California Agriculture Export Council.
China Merchants is a public port operator in China with a network of ports in China's coastal regions, including the Bohai region, Yangtze River Delta, Xiamen Bay Economic Zone, Pearl River Delta, and the Southwest region. In the first six months of 2009, China Merchants handled almost 25 million TEUs at its ports, terminals and logistics facilities throughout China.
“The form and scale of this partnership is a first for the US port industry,” said Omar Benjamin, Port of Oakland Executive Director. “China is a significant and rapidly growing market for US food and agriculture products, but the lack of cold chain services is inhibiting the export potential. Our initiatives will help make it easier, safer and faster to export US commodities from California and distribute them throughout China.”
China Merchants recently formed a joint venture – China Merchants Americold Logistics – in partnership with US -based Americold, one of the largest cold chain providers in North America. According to Oakland port officials, this venture seeks to solidify the joint venture entity as China’s premier third-party temperature-controlled logistics provider, operating an integrated platform across 15 cities in China.
Officially signed in a ceremony at China Merchants’ Hong Kong headquarters earlier this month, the agreement will focus on enhancing warehousing and logistics facilities and creating seamless cold chain services for US companies exporting their perishable products to China.
According to port officials, the agreement is part of the port's effort to "aggressively coordinating its activities" with the federal National Export Initiative. The NEI was signed by President Barack Obama in March and seeks to double US exports by 2015.
The first activity of the Oakland/China Merchants partnership was the Cold Chain and Logistics Seminar held shortly after the signing of the agreement earlier this month in Chengdu, in central China. The seminar focused on the demand for US products in the emerging markets of western China. Leading ocean carriers and logistics providers attending the event discussed distribution challenges in China's inland regions and offered case studies. The seminar was co-sponsored by the Port of Oakland, the US Foreign Agriculture Service, and the California Agriculture Export Council.
China Merchants is a public port operator in China with a network of ports in China's coastal regions, including the Bohai region, Yangtze River Delta, Xiamen Bay Economic Zone, Pearl River Delta, and the Southwest region. In the first six months of 2009, China Merchants handled almost 25 million TEUs at its ports, terminals and logistics facilities throughout China.
“The form and scale of this partnership is a first for the US port industry,” said Omar Benjamin, Port of Oakland Executive Director. “China is a significant and rapidly growing market for US food and agriculture products, but the lack of cold chain services is inhibiting the export potential. Our initiatives will help make it easier, safer and faster to export US commodities from California and distribute them throughout China.”
China Merchants recently formed a joint venture – China Merchants Americold Logistics – in partnership with US -based Americold, one of the largest cold chain providers in North America. According to Oakland port officials, this venture seeks to solidify the joint venture entity as China’s premier third-party temperature-controlled logistics provider, operating an integrated platform across 15 cities in China.
FMC Commissioner Hopefuls Face Senate Committee
The US Senate Committee on Commerce, Science, and Transportation on Monday held a hearing to consider the nomination of Port of Long Beach Harbor Commissioner Mario Cordero and the re-nomination of current FMC Commissioner Rebecca Dye as Commissioners at the Federal Maritime Commission.
The FMC is an independent regulatory agency of the United States government charged with the administration of the regulatory provisions of federal shipping laws and responsible for the regulation of ocean-borne transportation in the foreign commerce of the US
President Barack Obama re-nominated Commissioner Dye for a third term as a Federal Maritime Commissioner, and announced the nomination of Cordero, in September.
Commissioner Dye was first nominated to the five-seat FMC board in 2002 by President George W. Bush and confirmed by the United States Senate in November 2002. She was nominated to her second term, which expires on June 30, 2010, by President Bush in July 2005, and confirmed by the Senate later the same month.
Prior to joining the FMC, Commissioner Dye was Counsel to the Transportation and Infrastructure Committee of the US House of Representatives from 1995 until 2002.
“If confirmed by the Senate, I will be fair-minded and objective in executing the Commission’s statutory directives," Commissioner Dye testified on Monday. "I will do all I can to guarantee that all entities regulated by the Commission are provided with a fair market environment in which to operate. I will also work to eliminate unfair shipping practices by foreign governments, and protect cruise ship passengers against undue financial risk.”
First time FMC nominee Cordero is an attorney currently serving his second six-year term as a Port of Long Beach harbor commissioner. The harbor commission sets policy and provides oversight for the operation and maintenance of the port. During his tenure on the port board, Cordero has been involved in the harbor commission's approval of numerous environmental remediation programs designed by port staff to cut harmful pollution generated by port activities.
“I am eager to put my experience to work on behalf of the Federal Maritime Commission," Cordero told the Senate Committee on Monday. "The Commission’s work is vital in assisting the economic recovery by facilitating international trade through the nation’s ports, as well as supporting increases in the efficiency and sustainability of shipping and port operations.”
Ironically, Cordero, now nominated to a position setting national maritime policy, has been a staunch defender during his tenure on the Long Beach port board of local government rights superseding federal interstate commerce laws such as those administered by the FMC.
The next steps for Dye and Cordero are consideration for approval by the Committee and if approved, then a vote by the full Senate.
The FMC is an independent regulatory agency of the United States government charged with the administration of the regulatory provisions of federal shipping laws and responsible for the regulation of ocean-borne transportation in the foreign commerce of the US
President Barack Obama re-nominated Commissioner Dye for a third term as a Federal Maritime Commissioner, and announced the nomination of Cordero, in September.
Commissioner Dye was first nominated to the five-seat FMC board in 2002 by President George W. Bush and confirmed by the United States Senate in November 2002. She was nominated to her second term, which expires on June 30, 2010, by President Bush in July 2005, and confirmed by the Senate later the same month.
Prior to joining the FMC, Commissioner Dye was Counsel to the Transportation and Infrastructure Committee of the US House of Representatives from 1995 until 2002.
“If confirmed by the Senate, I will be fair-minded and objective in executing the Commission’s statutory directives," Commissioner Dye testified on Monday. "I will do all I can to guarantee that all entities regulated by the Commission are provided with a fair market environment in which to operate. I will also work to eliminate unfair shipping practices by foreign governments, and protect cruise ship passengers against undue financial risk.”
First time FMC nominee Cordero is an attorney currently serving his second six-year term as a Port of Long Beach harbor commissioner. The harbor commission sets policy and provides oversight for the operation and maintenance of the port. During his tenure on the port board, Cordero has been involved in the harbor commission's approval of numerous environmental remediation programs designed by port staff to cut harmful pollution generated by port activities.
“I am eager to put my experience to work on behalf of the Federal Maritime Commission," Cordero told the Senate Committee on Monday. "The Commission’s work is vital in assisting the economic recovery by facilitating international trade through the nation’s ports, as well as supporting increases in the efficiency and sustainability of shipping and port operations.”
Ironically, Cordero, now nominated to a position setting national maritime policy, has been a staunch defender during his tenure on the Long Beach port board of local government rights superseding federal interstate commerce laws such as those administered by the FMC.
The next steps for Dye and Cordero are consideration for approval by the Committee and if approved, then a vote by the full Senate.
