On the only sunny day in Seattle last month, the 10th Annual Pacific Maritime Magazine Quick and Dirty Boatbuilding (QDB) competition attracted a throng of winter-weary Seattleites, cheerfully blinking at the sun and squinting, believing that spring had finally arrived.
Along the cruise pier overlooking the Bell Harbor Marina, ten teams of boatbuilders sawed and bent and stitched and hammered and glued, hoping to build the boat that would capture the coveted Marty Johnson Memorial Fastest Boat trophy, the equally coveted Pacific Maritime Magazine Dirtiest Boat trophy or the ever elusive Best Student Team trophy.
Student teams included Highline and Chief Sealth High Schools, the Bellevue College Engineering Club and Seattle Maritime Academy.
The commercial teams competing this year included a group of US Coast Guardsmen from Sector Seattle, teams from Art Anderson Associates Naval Architects, Pacific Aluminum, Vigor Shipyards (Formerly Todd Pacific Shipyards), a single builder from naval architecture firm Guido Perla and Associates and another single builder, Bill Forslund, Sales Manager of Fishermen’s News and FOGHORN Magazine and experienced kayaker. Forslund is experienced in two senses of the term. He has years of experience on the water in vessels as large as a container ship and as small as a one-man kayak. Forslund is also experienced in QDB, as he had competed in two previous races – his first with the editor of Pacific Maritime Magazine, which ended predictably with his team coming in last, and last year, rid of his former teammate and with a sleek PVC kayak that “could have won.” Forslund and his naval architect, Walt Forslund, redesigned the vessel for 2011 and Bill was confident that this was his year.
In the suspenseful 1953 film The Wages of Fear, a group of men is hired in a poor South American village to drive several rickety trucks loaded with nitroglycerin over a treacherous mountain route. A similar white-knuckle experience was to be had dockside, as teams embarked in their vessels. Some stayed bone dry, some took on water – not much, but enough to be a concern to the occupants, and one boat simply didn’t have the freeboard to remain afloat. The valiant Seattle Maritime Academy team swamped their boat at the dock, climbed out of the frigid marina and tried again, swamping the boat a second time, and earning cheers from the crowd.
While SMA didn’t win a trophy, their can-do attitude was inspiring.
After the first heat, Bill Forslund’s new PVC kayak, QDB Torpedo of Truth, seemed to be the boat to beat, but a rogue wave in the second heat capsized the vessel.
While bobbing in the water after his capsize, Forslund was visibly conflicted – torn between sabotaging the other racers or swimming to a beer proffered by well-wishers on shore. True to form, Forslund swam to shore.
The winner of the race was Courtney Bradbury, of naval architecture firm Guido Perla & Associates. Mr. Bradbury had been browbeaten into entering the race by Mr. Forslund during the Philips Publishing Group Bering Sea Fisheries Conference. We suspect Mr. Forslund regrets that decision, but we congratulate him on a race well run.
Tuesday, June 7, 2011
NOL Nails Down Loans for 14 New Vessels
Ocean carrier Neptune Orient Lines Ltd. has finalized $1.1 billion in loan agreements with financial institutions to cover the purchase of 14 on-order container vessels.
The Singapore-based parent of APL said in a statement Thursday to the Singapore Exchange that the recently secured financing covers the purchase of a dozen 8,400-TEU vessels which were ordered in December, as well as two 10,700-TEU vessels the carrier ordered in 2007.
The vessels are scheduled to be delivered in 2013 and 2014 for service with APL.
The most recent orders reflect the publicly-stated efforts of NOL, the seventh-largest shipping line in the world, to take advantage of vessel construction prices that have dropped significantly since the global economic meltdown that began in 2008.
Details of the loan terms, and the financial institutions involved, were not released.
The Singapore-based parent of APL said in a statement Thursday to the Singapore Exchange that the recently secured financing covers the purchase of a dozen 8,400-TEU vessels which were ordered in December, as well as two 10,700-TEU vessels the carrier ordered in 2007.
The vessels are scheduled to be delivered in 2013 and 2014 for service with APL.
The most recent orders reflect the publicly-stated efforts of NOL, the seventh-largest shipping line in the world, to take advantage of vessel construction prices that have dropped significantly since the global economic meltdown that began in 2008.
Details of the loan terms, and the financial institutions involved, were not released.
California Bill Seeking to Ban Independent Truck Operators Shelved
A California Legislature bill seeking to make all drayage drivers in the state employees of the trucking firms they work for and which would effectively ban independent owner operators from working in the state's ports has been shelved--mostly likely for the rest of the year.
Assembly Bill 950, introduced by Speaker of the Assembly John Perez (D-Los Angeles) in February, would dictate that "for purposes of state employment law (including workers' compensation, occupational safety and health, and retaliation or discrimination) a drayage truck operator is an employee of the entity or person who arranges for or engages the services of the operator."
The bill, if passed, could affect the majority of the more than 15,000 drayage drivers in the state who currently work as independent owner operators.
Labeled the Truck Driver Employment and Public Safety Act, AB950 cleared the California State Assembly’s Labor and Employment Committee in early May, but was ordered to the Assembly inactive file on June 2 at the request of Assembly member Charles Calderon (D-City of Industry).
The move indicates that the bill is unlikely to be taken up during the current legislative session and is not likely to be revisited until at least early next year.
The decision to move the bill to the inactive rolls comes after discussions between the California Trucking Association and Perez.
The discussions allowed the CTA to express the industry belief that the bill, if passed, would be economically punitive to the state's transportation industry. The CTA also put forward a plan to have representatives of the trucking industry meet in the coming months with Perez to further discuss the alleged misclassification issues in the drayage industry.
CTA executive director of external affairs Michael Shaw pointed out that in addition to criteria at the federal level used to determine worker classification, most notably through the Internal Revenue Service, a slew of California agencies have varied criteria for determining worker classification--many of which do not correlate to each other. A proper test for determining classification, Shaw said, is one of the things that needs to be discussed with Perez.
Shaw was also able to point out to Perez that shortly before leaving his role as state Attorney General last year, Governor Jerry Brown conducted an investigation of alleged misclassification by trucking firms in the ports of Long beach and Los Angeles. The investigation found only five violators, most very small operations, among the several hundred trucking firms servicing the two ports.
The bill by Perez, a union organizer and cousin of Los Angeles Mayor Antonio Villaraigosa, mirrors an ongoing tactic being pushed by the International Brotherhood of Teamsters that attacks independent owner operators’ status as a "misclassification." Under current law, per-load independent owner operators cannot be unionized, only per-hour employees.
Teamsters president James Hoffa has repeatedly stated that a primary organizing goal of the Teamsters is to unionize the nation's drayage drivers. Hoffa worked closely with Villaraigosa to develop "employee-only" language in the Port of Los Angeles Clean Truck Program – language that remains in litigation.
More than 30 labor, environmental, and “social justice” groups, including the Teamsters, have signed onto the bill as supporters.
"The indisputable reality is that port drivers misclassified as "independent contractors" do exactly the same work as the much smaller group of port drivers who some trucking companies have hired as 'employees,'" the California Teamsters Public Affairs Council wrote in its statement to the bill.
Two-dozen industry groups, representing the vast majority of the intermodal industry in the state and including several groups representing drayage drivers such as the CTA, have tendered their opposition to the bill.
"Rather than address potential misclassification, this bill reaches too far in eliminating a class of drivers and small businesses that represent the dominant model for the drayage industry," the California Trucking Association said in its opposition statement to the bill.
Assembly Bill 950, introduced by Speaker of the Assembly John Perez (D-Los Angeles) in February, would dictate that "for purposes of state employment law (including workers' compensation, occupational safety and health, and retaliation or discrimination) a drayage truck operator is an employee of the entity or person who arranges for or engages the services of the operator."
The bill, if passed, could affect the majority of the more than 15,000 drayage drivers in the state who currently work as independent owner operators.
Labeled the Truck Driver Employment and Public Safety Act, AB950 cleared the California State Assembly’s Labor and Employment Committee in early May, but was ordered to the Assembly inactive file on June 2 at the request of Assembly member Charles Calderon (D-City of Industry).
The move indicates that the bill is unlikely to be taken up during the current legislative session and is not likely to be revisited until at least early next year.
The decision to move the bill to the inactive rolls comes after discussions between the California Trucking Association and Perez.
The discussions allowed the CTA to express the industry belief that the bill, if passed, would be economically punitive to the state's transportation industry. The CTA also put forward a plan to have representatives of the trucking industry meet in the coming months with Perez to further discuss the alleged misclassification issues in the drayage industry.
CTA executive director of external affairs Michael Shaw pointed out that in addition to criteria at the federal level used to determine worker classification, most notably through the Internal Revenue Service, a slew of California agencies have varied criteria for determining worker classification--many of which do not correlate to each other. A proper test for determining classification, Shaw said, is one of the things that needs to be discussed with Perez.
Shaw was also able to point out to Perez that shortly before leaving his role as state Attorney General last year, Governor Jerry Brown conducted an investigation of alleged misclassification by trucking firms in the ports of Long beach and Los Angeles. The investigation found only five violators, most very small operations, among the several hundred trucking firms servicing the two ports.
The bill by Perez, a union organizer and cousin of Los Angeles Mayor Antonio Villaraigosa, mirrors an ongoing tactic being pushed by the International Brotherhood of Teamsters that attacks independent owner operators’ status as a "misclassification." Under current law, per-load independent owner operators cannot be unionized, only per-hour employees.
Teamsters president James Hoffa has repeatedly stated that a primary organizing goal of the Teamsters is to unionize the nation's drayage drivers. Hoffa worked closely with Villaraigosa to develop "employee-only" language in the Port of Los Angeles Clean Truck Program – language that remains in litigation.
More than 30 labor, environmental, and “social justice” groups, including the Teamsters, have signed onto the bill as supporters.
"The indisputable reality is that port drivers misclassified as "independent contractors" do exactly the same work as the much smaller group of port drivers who some trucking companies have hired as 'employees,'" the California Teamsters Public Affairs Council wrote in its statement to the bill.
Two-dozen industry groups, representing the vast majority of the intermodal industry in the state and including several groups representing drayage drivers such as the CTA, have tendered their opposition to the bill.
"Rather than address potential misclassification, this bill reaches too far in eliminating a class of drivers and small businesses that represent the dominant model for the drayage industry," the California Trucking Association said in its opposition statement to the bill.
Oakland Port Receives $18M in Maintenance Dredging Funds
The Port of Oakland’s self-titled 50-Foot Harbor Deepening Project, aimed at maintaining the depth of the port's waterways to accommodate the largest classes of container vessels, is set to receive $18 million in operations and maintenance from the US Army Corps of Engineers’ fiscal year 2011 work plan.
The funding for the project, which the port considers vital to maintain its competitiveness, will come from the federal Harbor Maintenance Fund. The fund is financed through a federal tax on imported containers.
The current port waterway depths of 50 feet were accomplished through a decade-long $433 million project that was completed in 2009. The new funds will be used to counter the natural silting of the port waterways and maintain the 50-foot depths.
Work on maintaining the 50-foot depths at the port will begin later this year.
"We greatly appreciate that Congresswoman Barbara Lee and the entire Bay Area Congressional Delegation stepped up and helped the Port achieve this critical funding to keep the Oakland harbor navigable and safe for the efficient flow of commerce,” Oakland Board of Port Commissioners President James Head said.
In a statement, port officials also pointed out that dredging offers environmental benefits via habitat and wetland restoration. As an example, port officials cited the Hamilton Wetland Restoration Project, which received dredged material from the Oakland harbor deepening project. The restoration project, according to the port, has helped with flood damage reduction and ecosystem restoration.
Port officials also said that deeper waterways allow for larger vessels.
"Larger ships carry more containers providing an important reduction in fuel use and air emissions per transported container," a port statement said.
The funding for the project, which the port considers vital to maintain its competitiveness, will come from the federal Harbor Maintenance Fund. The fund is financed through a federal tax on imported containers.
The current port waterway depths of 50 feet were accomplished through a decade-long $433 million project that was completed in 2009. The new funds will be used to counter the natural silting of the port waterways and maintain the 50-foot depths.
Work on maintaining the 50-foot depths at the port will begin later this year.
"We greatly appreciate that Congresswoman Barbara Lee and the entire Bay Area Congressional Delegation stepped up and helped the Port achieve this critical funding to keep the Oakland harbor navigable and safe for the efficient flow of commerce,” Oakland Board of Port Commissioners President James Head said.
In a statement, port officials also pointed out that dredging offers environmental benefits via habitat and wetland restoration. As an example, port officials cited the Hamilton Wetland Restoration Project, which received dredged material from the Oakland harbor deepening project. The restoration project, according to the port, has helped with flood damage reduction and ecosystem restoration.
Port officials also said that deeper waterways allow for larger vessels.
"Larger ships carry more containers providing an important reduction in fuel use and air emissions per transported container," a port statement said.
Vancouver USA Port Sells Port Parcel to Steel Manufacturer
The Washington state Port of Vancouver announced Monday that it has completed the sale of 20 acres of surplus port land to Farwest Steel Corporation for construction of a steel fabrication plant.
The closing price for the parcel was just under $5.1 million.
Under the terms of an agreement with the port signed back in June 2010, Farwest agreed to close on the property by February 6 of this year. The agreement allowed for an additional 98-day window to complete the $5 million transaction, albeit at a added cost of $500 per day in non-refundable penalties. The added fees, however, will be applied to the sale price of the property. In February, the Eugene-Ore.-based Farwest asked port officials for more time to finalize the purchase of the property, which the port granted.
The sale of surplus port property to Farwest ran counter to the normal port policy which typical sees the port lease port parcels, but port commissioners have said that the economy outweighed such concerns. Farwest has said that the proposed plant would initially employ 100 workers with the potential to employ as many as 228 workers with an average salary of just over $40,000, plus benefits.
“This is a good day for the port and our community,” Port of Vancouver Commission President Brian Wolfe said. “Selling property is not something the port does often or without careful consideration, but we are confident that the sale to Farwest is the right thing to do and will result in good-paying jobs for Clark County residents both in the short-term and in the long-term.”
Farwest operates several facilities in Oregon, Washington, California, Idaho and Utah and plans to consolidate some of their distribution, processing and fabrication operations in Vancouver. Approximately 100 jobs at other Farwest locations will be relocated to the Vancouver port.
Farwest has said it plans to spend up to $40 million to develop the plant. Farwest officials said the firm plans to take advantage of the port's rail access and the new facility, when completed, is expected to receive 200 to 300 rail cars a year. The proposed 300,000 square foot facility, which in addition to manufacturing would also include distribution and office space, could be built and operational by early 2012. Construction is slated to begin next month.
Under the terms of the deal, the port can purchase back the 20-acre parcel if Farwest does not begin construction of the plant within 12 months, maintain 100 workers at the facility, keep the property in industrial use, or halts activity on the site.
The closing price for the parcel was just under $5.1 million.
Under the terms of an agreement with the port signed back in June 2010, Farwest agreed to close on the property by February 6 of this year. The agreement allowed for an additional 98-day window to complete the $5 million transaction, albeit at a added cost of $500 per day in non-refundable penalties. The added fees, however, will be applied to the sale price of the property. In February, the Eugene-Ore.-based Farwest asked port officials for more time to finalize the purchase of the property, which the port granted.
The sale of surplus port property to Farwest ran counter to the normal port policy which typical sees the port lease port parcels, but port commissioners have said that the economy outweighed such concerns. Farwest has said that the proposed plant would initially employ 100 workers with the potential to employ as many as 228 workers with an average salary of just over $40,000, plus benefits.
“This is a good day for the port and our community,” Port of Vancouver Commission President Brian Wolfe said. “Selling property is not something the port does often or without careful consideration, but we are confident that the sale to Farwest is the right thing to do and will result in good-paying jobs for Clark County residents both in the short-term and in the long-term.”
Farwest operates several facilities in Oregon, Washington, California, Idaho and Utah and plans to consolidate some of their distribution, processing and fabrication operations in Vancouver. Approximately 100 jobs at other Farwest locations will be relocated to the Vancouver port.
Farwest has said it plans to spend up to $40 million to develop the plant. Farwest officials said the firm plans to take advantage of the port's rail access and the new facility, when completed, is expected to receive 200 to 300 rail cars a year. The proposed 300,000 square foot facility, which in addition to manufacturing would also include distribution and office space, could be built and operational by early 2012. Construction is slated to begin next month.
Under the terms of the deal, the port can purchase back the 20-acre parcel if Farwest does not begin construction of the plant within 12 months, maintain 100 workers at the facility, keep the property in industrial use, or halts activity on the site.
Friday, June 3, 2011
The Marine Exchange of Alaska: Alaska’s Maritime Safety Net
By Ed Page
At times an evening swapping sea stories can lead to good outcomes. Such was the case in the fall of 2000 when Coast Guard Captain Ed Page, Paul Fuhs and Jeff Thompson met in Anchorage. After sharing stories on Alaska maritime casualties, the three decided to start a marine exchange that would build and operate a vessel tracking safety net for Alaska. All three had worked in the Alaska maritime community, knew the challenges of operating in the Last Frontier and saw the need for such a capability. Ten years later, the non-profit Marine Exchange of Alaska (MXAK), launched at the dawn of the 21st century, is operating one of the largest vessel tracking networks in the world, providing information on vessels sailing the waters of our nation’s largest maritime state that boasts a staggering 34,000 miles of coastline and more than 40 ports.
Mission
The core business of a marine exchange is collecting and “exchanging” maritime information to aid safe, secure, efficient and environmentally sound maritime operations. While many of the marine exchanges in other ports and regions of the US have operated for more than 100 years by visually sighting vessels and exchanging information via phone and radios, the brokering of maritime information has become more sophisticated with the advent of radars, the internet, satellite transponders and AIS (Automatic Identification System). Due to the enormity of Alaska’s maritime regions, only through applying emerging technologies could a marine exchange cover the entire state and offshore waters.
In reflecting on the startup, Ed Page noted, “Throughout my 30 year Coast Guard career I was exposed to several marine exchanges and was impressed with their wealth of knowledge of regional maritime operations. I found them to be an invaluable asset.” While assigned as the Captain of the Port in Los Angeles and Long Beach, Page partnered with the Marine Exchange of LA/LB in establishing the first joint industry and Coast Guard Vessel Traffic Center. He became intrigued with the idea of developing a marine exchange for Alaska.
“The only way we could make a marine exchange work up here was to use satellite transponders, AIS and the Internet” remarks Board President Paul Fuhs, former Mayor of Dutch Harbor. Fuhs was a diver who met Page in the 80’s when he was hired by the Coast Guard to detonate shipwrecks in the Aleutians to burn off the fuel oil before it affected the environment. Fuhs added, “Soon after we opened the doors, in addition to Page, we hired two retired Coast Guardsmen, Paul Webb and Bill Benning, who worked in search and rescue and communications in Alaska. They helped build the Alaska vessel tracking system and safety net.”
To conduct field tests of tracking systems in the most challenging marine environment Page and Benning chartered a fishing boat in the Aleutians and installed various tracking systems. “Bill Benning’s communications expertise, savvy and tireless work ethic was pivotal in developing MXAK’s vessel tracking network.” Says Fuhs.
Membership and Funding
MXAK’s Board of Directors is comprised of Alaska Marine Lines, Crowley Maritime, Totem Ocean Trailer Express, Port of Juneau and Alaska’s three pilot associations, all of whom embraced the vision and provided the initial funding along with the State of Alaska. Federal and state legislators, mayors of Alaska communities, Alaska Governor Sean Parnell and Admiral Papp, the Commandant of the Coast Guard, have all visited MXAK and applaud the progress in maritime safety attained from the federal/state and industry partnership that has supported the development, operation and maintenance of the system. Today, with funding provided by the marine industry, Coast Guard and State of Alaska the Marine Exchange operates 80 AIS (Automatic Identification System) receiving sites throughout Alaska, from above the Arctic Circle, west to Adak and south to Ketchikan providing vessel-tracking coverage for more than 200,000 square miles of Alaska waters.
Vessel Tracking Applications
The operation of the vessel tracking system benefits both government and the marine industry.
Safety: The system’s ability to locate vessels in distress and vessels that may be able to provide assistance is routinely tapped into by the Coast Guard, who has real time access to vessel tracking information obtained by MXAK’s system.
Efficiency: The ability to ensure the timely dispatch of pilots, tugs, line handlers, shore gangs, truckers and Coast Guard vessel escorts when vessels arrive at various locations.
Environmental Protection: The effective deployment of response vessels and the validation of compliance with environmental protective measures (speed restrictions in whale areas, offshore discharge of sewage, compliance with Areas To Be Avoided, Risk Assessments and fisheries management) is enhanced by vessel tracking.
Security: The monitoring of shipping, dispatch of Coast Guard vessels and response to security incidents are also all aided by vessel tracking.
Building and Maintaining the Expansive AIS Network
Executive Director Page is proud of the accomplishments achieved by his crew of 14. “We have a team of adventurous men who think nothing of packing a sleeping bag, bear protection and tools and heading off to remote areas of Alaska on a boat, helicopter or float plane to build an AIS site,” he says. “We’ve installed AIS receiver sites at abandoned lighthouses, fish hatcheries, tug offices, port offices, schools, mountain tops, fish processing facilities and pilot stations throughout Alaska.”
While Page may be running the show, he’s also one of the crew, boarding helicopters, sailing on boats and even kayaking to remote islands to lend a hand digging foundations for solar panels and wind turbines, hauling concrete and batteries and building structures needed to support the AIS sites.
MXAK processes, displays and disseminates data received from AIS, satellite transponders and fishing vessel VMS sensors, via a secure, password protected web site, with users restricted in what they are authorized to view. The data can also be accessed on iPhones and iPads.
Maritime Advocacy
In addition to vessel tracking, MXAK has been an advocate for the Alaska maritime community and saved the industry millions by convincing TSA to establish mobile enrollment TWIC centers in Alaska, working with the Coast Guard in exempting small ports and facilities from security regulations and in allowing for less burdensome security measures for lower risk ports and facilities. Presently, MXAK is leading an effort to develop and implement more cost effective Alternative Planning Criteria (APC) for addressing Coast Guard required Vessel Response Plans for tankers and in the near future, non-tank vessels. The APC focuses on resources and procedures that will prevent oil spills in lieu of procuring large caches of offshore oil recovery equipment that in most cases is ineffective in Alaska’s offshore waters.
Coast Guard Recognition
17th District Commander Admiral Christopher Colvin recognized the Marine Exchanges’ accomplishments when he presented the Coast Guard’s Meritorious Public Service Commendation to the organization. The citation in part read “Since 2000, the Marine Exchange of Alaska has played a key and leading role for Maritime Domain Awareness throughout Alaska by adapting available, and in some cases leading edge, technology to provide critical maritime information to both commercial and government users at unprecedented levels.”
Future
Last year the MXAK crew logged more than 3,000 miles in their 32-foot landing craft Cleat and 200,000 miles on aircraft in the process of installing and servicing their sites in Alaska. With the federal budget challenges, the Coast Guard is not receiving the funds needed to build the AIS and Rescue 21 systems Alaska needs to effectively carry out the service’s safety, environmental protection and security missions. Due to the high cost of building these networks in Alaska, the safety net provided for mariners sailing in the lower 48 won’t be built in Alaska for many years, if ever. On this issue Page says, “We’re looking at expanding our AIS network to fill in gapped areas, develop the capability to send weather and safety messages over AIS and incorporate Rescue 21 Digital Selective Calling VHF radio transceivers throughout Alaska – technology that will benefit the Coast Guard, the State of Alaska and the marine industry. And, with the Arctic oil development and maritime operations heating up, we’re expanding our capabilities up there too”.
If MXAK’s accomplishments made over the last 10 years are any indication of the future, one can expect MXAK staff should have no trouble completing this challenging worklist as well.
For more on the Marine Exchange of Alaska check out their web site at www.mxak.org.
Los Angeles Port Approves $977M Budget
The five-member governing board for the Port of Los Angeles on Thursday adopted a $977 million 2011-2012 fiscal year budget, a 7.4 percent or $67 million increase from 2010-2011 FY budget.
The budget increase, according to port officials, reflects higher total receipts from both operations and grants activity, which in turn allowed greater appropriations for both operations and capital projects in comparison to the current fiscal year budget.
“Local, national and global economies have regained stability and forward momentum,” Los Angeles Harbor Commission President Cindy Miscikowski said. “This year’s port-approved budget strikes the right balance between ensuring competitiveness and financial strength, but with a disciplined use of resources to achieve these objectives.”
“Our budget plan supports the long-term vision for the Port, with priorities based on collaborative input from our divisions and board members,” Port Executive Director Geraldine Knatz said. “Together, we have developed a fiscally responsible plan that will establish and maintain competitive operations, build stronger customer and community relationships, and enhance our organization’s financial strength for the future.”
During the 2010-2011 FY, the port remained the Western Hemisphere's busiest container port, posting a 16 percent increase in containerized cargo.
The port’s 2011-2012 FY budget projects operating revenues of $405.4 million, close to 2010-2011 FY levels. The new budget also projects a $23.2 million, or 2.3 percent decrease, in total estimated expenditures from the current fiscal year.
With a port goal of maintaining competitive operations, the new budget sets a capital budget of $291 million, including $10.7 million in terminal improvements at the TraPac Container Terminal and $5.6 million at the Berth 301-306 APL facility. Another $45 million in the capital budget is allocated for L.A. Waterfront project construction, and $44 million for surface transportation infrastructure to improve goods movement for both commercial and noncommercial users of port-owned and non-port-owned roads.
The new budget also projects the port spending approximately $7.2 million environmental efforts related to the port's Clean Air Action Plan, including $2.7 million for the Clean Truck Program, $2.5 million for the Vessel Speed Reduction Program, $1.5 million for the Technology Advancement Program, and $500,000 for the TraPac AMP ship-to-shore power demonstration project.
The port board also approved $24 million to enhance port security and protection, including projects for Port Police surveillance, threat detection, and criminal activity detection, deterrence and apprehension.
The budget increase, according to port officials, reflects higher total receipts from both operations and grants activity, which in turn allowed greater appropriations for both operations and capital projects in comparison to the current fiscal year budget.
“Local, national and global economies have regained stability and forward momentum,” Los Angeles Harbor Commission President Cindy Miscikowski said. “This year’s port-approved budget strikes the right balance between ensuring competitiveness and financial strength, but with a disciplined use of resources to achieve these objectives.”
“Our budget plan supports the long-term vision for the Port, with priorities based on collaborative input from our divisions and board members,” Port Executive Director Geraldine Knatz said. “Together, we have developed a fiscally responsible plan that will establish and maintain competitive operations, build stronger customer and community relationships, and enhance our organization’s financial strength for the future.”
During the 2010-2011 FY, the port remained the Western Hemisphere's busiest container port, posting a 16 percent increase in containerized cargo.
The port’s 2011-2012 FY budget projects operating revenues of $405.4 million, close to 2010-2011 FY levels. The new budget also projects a $23.2 million, or 2.3 percent decrease, in total estimated expenditures from the current fiscal year.
With a port goal of maintaining competitive operations, the new budget sets a capital budget of $291 million, including $10.7 million in terminal improvements at the TraPac Container Terminal and $5.6 million at the Berth 301-306 APL facility. Another $45 million in the capital budget is allocated for L.A. Waterfront project construction, and $44 million for surface transportation infrastructure to improve goods movement for both commercial and noncommercial users of port-owned and non-port-owned roads.
The new budget also projects the port spending approximately $7.2 million environmental efforts related to the port's Clean Air Action Plan, including $2.7 million for the Clean Truck Program, $2.5 million for the Vessel Speed Reduction Program, $1.5 million for the Technology Advancement Program, and $500,000 for the TraPac AMP ship-to-shore power demonstration project.
The port board also approved $24 million to enhance port security and protection, including projects for Port Police surveillance, threat detection, and criminal activity detection, deterrence and apprehension.
Sappio to Leave APL After Nearly 30 Years
Singapore-based ocean carrier APL said Thursday that Bob Sappio, head of the shipping line’s PanAmerican Trades, will leave the company August 1.
Sappio, a 29-year veteran of the carrier, has been the head of APL’s Trans-Pacific Trade since 2003.
According to Ron Widdows, CEO of APL-parent Neptune Orient Lines, Sappio played a key role in establishing APL as a leader in the transpacific and in building the APL brand reputation for high-quality service in the industry.
“I’ve devoted my entire career to APL – a company I have tremendous affection and respect for,” Sappio said. “But family priorities are most important, and I’ve made the decision to stay closer to home and remain in California where my family has established deep roots.”
According to APL, during his tenure Sappio guided the carrier to a top transpacific market share position, worked closely with key multinational customers and was APL’s representative to carrier groups such as the Transpacific Stabilization Agreement. In 2010, Sappio represented the industry at congressional hearings in Washington, D.C., on container shipping.
“Bob’s contributions working closely with me on issues not only of importance to our company, but the industry and our customers, were invaluable,” Widdows said, adding that Sappio has left a lasting imprint on the firm.
NOL Executive Director Ng Yat Chung, who will take over as CEO when Widdows retires from his position at the end of 2011, also praised Sappio's contributions to the firm.
Sappio will be replaced by 22-year APL veteran Steve Schollaert, currently APL’s Executive Vice President of Intermodal Strategy and former head of its Asia-Europe Trade.
Schollaert, who has a background in operations and was also responsible for APL’s terminals, will be based in Phoenix and report to Liner Trade Management Senior Vice President Dave Appleton.
Sappio, a 29-year veteran of the carrier, has been the head of APL’s Trans-Pacific Trade since 2003.
According to Ron Widdows, CEO of APL-parent Neptune Orient Lines, Sappio played a key role in establishing APL as a leader in the transpacific and in building the APL brand reputation for high-quality service in the industry.
“I’ve devoted my entire career to APL – a company I have tremendous affection and respect for,” Sappio said. “But family priorities are most important, and I’ve made the decision to stay closer to home and remain in California where my family has established deep roots.”
According to APL, during his tenure Sappio guided the carrier to a top transpacific market share position, worked closely with key multinational customers and was APL’s representative to carrier groups such as the Transpacific Stabilization Agreement. In 2010, Sappio represented the industry at congressional hearings in Washington, D.C., on container shipping.
“Bob’s contributions working closely with me on issues not only of importance to our company, but the industry and our customers, were invaluable,” Widdows said, adding that Sappio has left a lasting imprint on the firm.
NOL Executive Director Ng Yat Chung, who will take over as CEO when Widdows retires from his position at the end of 2011, also praised Sappio's contributions to the firm.
Sappio will be replaced by 22-year APL veteran Steve Schollaert, currently APL’s Executive Vice President of Intermodal Strategy and former head of its Asia-Europe Trade.
Schollaert, who has a background in operations and was also responsible for APL’s terminals, will be based in Phoenix and report to Liner Trade Management Senior Vice President Dave Appleton.
DGX Increases West Coast to Latin/South America Offerings
Rancho Dominguez, Calif.-based NVOCC Dependable Global Express, which operates under the name DGX, announced Wednesday that it plans to increase its less-than-container-load all-water service to a weekly schedule from Los Angeles directly to Valparaiso, Chile.
DGX has also begun a new bi-weekly ocean LCL service from Los Angeles to the Caribbean and northern South America utilizing Colon, Panama as its hub.
The Chile service offers arrival in Valparaiso 18 days after departure from Los Angeles with direct steaming down the west coast of South America.
"We are one of the very few logistics companies providing all water LCL service to Chile from the West Coast. We believe DGX offers the best value because of this direct, all water route." DGX Latin American Tradelane Manager Antonio Bellido said.
DGX is offering LCL service to the Caribbean with the firm's new bi-weekly sailings from Los Angeles to Colon, Panama.
Bellido said that the 9-day all water service to Colon with transshipment to any island in the Caribbean, reduces delivery time compared to utilizing the traditional Miami-to-Latin America gateway.
"We are the only direct service for LCL cargo into the Caribbean from the West Coast," Bellido said.
Beelindo said the Valparaiso service cut off time for cargo is Friday with sailings on the following Wednesday; for the Caribbean cut off time is Tuesday with ship's departure on Friday.
DGX is the international sea division of the Dependable Companies, a group of corporations providing air, ocean and surface domestic and global transportation. Other companies include DHX-Dependable Hawaiian Express, one of the largest freight forwarders serving Hawaii and Guam; Dependable AirCargo Express, which provides air service to U.S. and international destinations; Dependable Highway Express, an LTL and trailer load trucking company; Dependable Distribution Centers, a public warehousing company managing more than 2 million square feet of warehousing space; and, Dependable Logistics Solution.
DGX has also begun a new bi-weekly ocean LCL service from Los Angeles to the Caribbean and northern South America utilizing Colon, Panama as its hub.
The Chile service offers arrival in Valparaiso 18 days after departure from Los Angeles with direct steaming down the west coast of South America.
"We are one of the very few logistics companies providing all water LCL service to Chile from the West Coast. We believe DGX offers the best value because of this direct, all water route." DGX Latin American Tradelane Manager Antonio Bellido said.
DGX is offering LCL service to the Caribbean with the firm's new bi-weekly sailings from Los Angeles to Colon, Panama.
Bellido said that the 9-day all water service to Colon with transshipment to any island in the Caribbean, reduces delivery time compared to utilizing the traditional Miami-to-Latin America gateway.
"We are the only direct service for LCL cargo into the Caribbean from the West Coast," Bellido said.
Beelindo said the Valparaiso service cut off time for cargo is Friday with sailings on the following Wednesday; for the Caribbean cut off time is Tuesday with ship's departure on Friday.
DGX is the international sea division of the Dependable Companies, a group of corporations providing air, ocean and surface domestic and global transportation. Other companies include DHX-Dependable Hawaiian Express, one of the largest freight forwarders serving Hawaii and Guam; Dependable AirCargo Express, which provides air service to U.S. and international destinations; Dependable Highway Express, an LTL and trailer load trucking company; Dependable Distribution Centers, a public warehousing company managing more than 2 million square feet of warehousing space; and, Dependable Logistics Solution.
CBP Seizes Karaoke Machines In LA/LB With Bogus Memory Chips
Members of the United States Customs and Border Protection assigned to the Long Beach/Los Angeles port complex discovered and seized 1,932 karaoke machines worth nearly $1 million loaded with counterfeit memory chips.
CBP officers seized the karaoke machines on May 16, after CBP import specialists confirmed with the trademark holder that the memory cards bearing the SD (San Disk) logo were counterfeit. The shipment, with an estimated domestic value of $852,368 and an estimated manufacturer’s suggested retail price of $964,068, arrived via a cargo container originating in China. The karaoke machines were destroyed after San Disk confirmed the chips were counterfeit.
It is routine for CBP, citing privacy reasons, to not identify the specific terminal or facility within the port complex where a seizure occurs.
“CBP enforcement actions at Los Angeles/Long Beach seaport continue to yield outstanding results. We have an ongoing commitment that is focused towards intercepting shipments containing merchandise in violation of protected trademarks before they reach the consumer,” CBP Acting Director of Los Angeles Field Operations Carlos Martel said in a statement.
The importation of merchandise with counterfeit trademarks is prohibited, said the CBP statement. Importers violating these laws may be subject to civil penalties and/or criminal prosecution. CBP said it maintains "a vigilant stance in intercepting illegal shipments that introduce infringing merchandise into the country."
CBP’s strategic approach to intellectual property rights enforcement is multi-layered and includes seizing fake goods at ports of entry, pushing the border outward through audits of infringing importers and cooperation with international trading partners, and partnering with industry and other government agencies to enhance these efforts.
In fiscal year 2010, CBP at the Long Beach/Los Angeles port complex set a record-breaking pace with 863 trade seizures with an aggregate domestic value exceeding $34 million. This is a 42 percent increase in the number of seizures from fiscal year 2009.
CBP officers seized the karaoke machines on May 16, after CBP import specialists confirmed with the trademark holder that the memory cards bearing the SD (San Disk) logo were counterfeit. The shipment, with an estimated domestic value of $852,368 and an estimated manufacturer’s suggested retail price of $964,068, arrived via a cargo container originating in China. The karaoke machines were destroyed after San Disk confirmed the chips were counterfeit.
It is routine for CBP, citing privacy reasons, to not identify the specific terminal or facility within the port complex where a seizure occurs.
“CBP enforcement actions at Los Angeles/Long Beach seaport continue to yield outstanding results. We have an ongoing commitment that is focused towards intercepting shipments containing merchandise in violation of protected trademarks before they reach the consumer,” CBP Acting Director of Los Angeles Field Operations Carlos Martel said in a statement.
The importation of merchandise with counterfeit trademarks is prohibited, said the CBP statement. Importers violating these laws may be subject to civil penalties and/or criminal prosecution. CBP said it maintains "a vigilant stance in intercepting illegal shipments that introduce infringing merchandise into the country."
CBP’s strategic approach to intellectual property rights enforcement is multi-layered and includes seizing fake goods at ports of entry, pushing the border outward through audits of infringing importers and cooperation with international trading partners, and partnering with industry and other government agencies to enhance these efforts.
In fiscal year 2010, CBP at the Long Beach/Los Angeles port complex set a record-breaking pace with 863 trade seizures with an aggregate domestic value exceeding $34 million. This is a 42 percent increase in the number of seizures from fiscal year 2009.
