The Port of Los Angeles handled a total of 7.94 million twenty-foot equivalent unit containers in 2011, compared to 7.83 TEUs the year before, an increase of about 1.39 percent, according to newly-released data.
The most significant gain came in exports, which rose to 2.10 million in 2011, a 14.5 percent increase over the 1.84 million shipped in 2010. Total year-over-year imports grew 2.3 percent to 4.06 million in 2011 versus 3.97 million the year prior.
“It’s an example of how our port is prepared to handle a shift in global trade patterns,” port Executive Director Geraldine Knatz said of the export numbers, which set a record for the second consecutive year.
December was a particularly strong month for the port, as volumes showed gains in all categories. Total December volumes, including empties, increased six percent to 649,468 TEUs compared to December 2010’s 612,651 TEUs.
Also, exports increased 9.2 percent to 176,530 TEUs compared to the previous December’s 161,625 TEUs. Additionally, imports increased 6.4 percent to 318,355 TEUs compared to December 2010’s 299,304 TEUs.
“We’re fortunate to have stronger year-over-year results in 2011 but we are not resting on our laurels,” LA Mayor Antonio Villaraigosa said in a statement announcing the numbers. “We are investing $1.5 billion in capital improvements over the next five years. We’re going to create more than 20,000 construction jobs and keep infrastructure at the Port of Los Angeles unparalleled.”
The Port of Los Angeles is the busiest port in North America, just ahead of the adjoining Port of Long Beach. LA’s slight gain in total volume last year was in contrast to Long Beach, which earlier this week reported moving a total of 6.1 million TEUs in 2011, a 3.2 percent drop compared to 2010.
That decline, however, is being attributed to Long Beach’s loss of California United Terminals, which vacated one of the POLB’s seven container terminals and moved to the Port of LA in late 2010. Prior to the move, CUT had accounted for about a tenth of Long Beach’s overall container traffic.
When Long Beach’s annual numbers are adjusted for CUT’s departure, however, the remaining six container terminals actually saw a volume gain of 8.1 percent in 2011, with imports up 10.1 percent and exports climbing 7.8 percent.
Long Beach is currently in the process of finalizing a huge 40-year, $4.6 billion deal with Orient Overseas Container Line for OOCL to occupy the former CUT site and adjacent land, which is currently leased by the Long Beach Container Terminal company and is undergoing renovation as part of the port’s Middle Harbor project.
About $1.2 billion in upgrades to the 300 acre project, located at piers D, E and F, are expected to be complete around the end of the decade.
Showing posts with label California United Terminals. Show all posts
Showing posts with label California United Terminals. Show all posts
Friday, January 20, 2012
Tuesday, January 17, 2012
Long Beach Cargo Volumes Drop in 2011
Shipping terminals at the Port of Long Beach moved a total of 6.1 million twenty-foot equivalent containers in 2011, a 3.2 percent drop compared to 2010. Also, imports were down a reported 3.3 percent and exports dropped 3.6 percent, according to the port.
The decline, however, is being attributed to Long Beach’s loss of California United Terminals, which vacated one of the POLB’s seven container terminals in late 2010. CUT, which had accounted for about a tenth of the port’s overall container traffic, now leases about 100 acres of the 512-acre APM Terminals facility at the Port of Los Angeles.
When Long Beach’s annual numbers are adjusted for CUT’s departure, the remaining six container terminals actually saw a volume gain of 8.1 percent in 2011, with imports up 10.1 percent and exports climbing 7.8 percent.
For the month of December, the port moved 509,944 TEUs, a 2.6 percent decrease compared to the same period a year ago. Imports were down 3.2 percent to 248,609 TEUs and exports were down 8.4 percent to 129,229 TEUs.
But again, when adjusted for CUT’s departure, overall container traffic at the remaining Long Beach terminals was up 1.7 percent in December 2011 compared with the same month the year before. Imports were up 1.8 percent; exports, however, declined 4.5 percent.
CUT left Long Beach in part due to concerns over the port’s Middle Harbor Project, which is an effort to combine the land the California United terminal leased with another facility in order to create a larger, more modern and streamlined facility.
The port says the project will double the facility’s capacity while reducing related pollution by half. Middle Harbor is part of more than $4 billion in capital improvement projects planned for the POLB in the coming decade.
The decline, however, is being attributed to Long Beach’s loss of California United Terminals, which vacated one of the POLB’s seven container terminals in late 2010. CUT, which had accounted for about a tenth of the port’s overall container traffic, now leases about 100 acres of the 512-acre APM Terminals facility at the Port of Los Angeles.
When Long Beach’s annual numbers are adjusted for CUT’s departure, the remaining six container terminals actually saw a volume gain of 8.1 percent in 2011, with imports up 10.1 percent and exports climbing 7.8 percent.
For the month of December, the port moved 509,944 TEUs, a 2.6 percent decrease compared to the same period a year ago. Imports were down 3.2 percent to 248,609 TEUs and exports were down 8.4 percent to 129,229 TEUs.
But again, when adjusted for CUT’s departure, overall container traffic at the remaining Long Beach terminals was up 1.7 percent in December 2011 compared with the same month the year before. Imports were up 1.8 percent; exports, however, declined 4.5 percent.
CUT left Long Beach in part due to concerns over the port’s Middle Harbor Project, which is an effort to combine the land the California United terminal leased with another facility in order to create a larger, more modern and streamlined facility.
The port says the project will double the facility’s capacity while reducing related pollution by half. Middle Harbor is part of more than $4 billion in capital improvement projects planned for the POLB in the coming decade.
Thursday, December 15, 2011
Hyundai Merchant Marine to Partner with LA Port on New Mega Terminal
California United Terminals has reached an agreement to help build and occupy Pier 500, a 200-acre terminal planned for the southeastern edge of the Port of Los Angeles. Hyundai Merchant Marine, which owns California United and imports and exports goods to and from South Korea, announced the deal Dec. 13 in conjunction with the City of Los Angeles after Hyundai officials met with LA Mayor Antonio Villaraigosa.
“Partnerships like this are what we need to support local businesses, create new jobs, and retain the Port of Los Angeles’ title as the nation's number one shipping container port,” Villaraigosa said. “I am proud of the fact that Hyundai Merchant Marine has confidence in our relationship and our port.”
Pier 500 would cost more than $1 billion to complete and consist of a peninsula atop material along the south side of Pier 400. It would include automated devices to handle containers, as well as an on-dock rail system for trains to be loaded.
Even with a contract in place, however, the Pier 500 project still has to undergo the lengthy permitting and environmental review processes. It’s expected to take up to 10 years before the project is built and operational.
Currently, California United subleases 98 acres from APM Terminals at Pier 400, which is on Terminal Island, the area that connects the LA and Long Beach harbors. Before that, Hyundai was a tenant at the Port of Long Beach, but left in the last year after failing to reach an agreement with another tenant, OOCL, regarding the sharing of the terminal that will result from the under-construction Middle Harbor project.
“Partnerships like this are what we need to support local businesses, create new jobs, and retain the Port of Los Angeles’ title as the nation's number one shipping container port,” Villaraigosa said. “I am proud of the fact that Hyundai Merchant Marine has confidence in our relationship and our port.”
Pier 500 would cost more than $1 billion to complete and consist of a peninsula atop material along the south side of Pier 400. It would include automated devices to handle containers, as well as an on-dock rail system for trains to be loaded.
Even with a contract in place, however, the Pier 500 project still has to undergo the lengthy permitting and environmental review processes. It’s expected to take up to 10 years before the project is built and operational.
Currently, California United subleases 98 acres from APM Terminals at Pier 400, which is on Terminal Island, the area that connects the LA and Long Beach harbors. Before that, Hyundai was a tenant at the Port of Long Beach, but left in the last year after failing to reach an agreement with another tenant, OOCL, regarding the sharing of the terminal that will result from the under-construction Middle Harbor project.
Tuesday, January 4, 2011
Cal United Officially Shutters Long Beach Terminal
California United Terminals, one of the keystone tenants at the Port of Long Beach, California for 30 years, officially shuttered its 130-acre Pier E facility over New Year's weekend.
CUT, a subsidiary of Hyundai Merchant Marine, is now operating out of 98 acres of land subleased from APM Terminals in the Port of Los Angeles. CUT began operations at the new facility in Los Angeles on December 5, 2010, just two weeks prior to the final vessel call at the Long Beach facility. The CUT terminal in Long Beach, which opened in 1979, was servicing calls mainly from Hyundai as well as carriers APL and MOL.
In August, 2010 CUT announced its intention to relocate to the Port of Los Angeles by the end of 2010. CUT officials said at the time that the Long Beach facility was no longer a good fit based on construction schedules, land configuration and berthing space limitations.
Port of Long Beach officials estimate that the departure of CUT will cost the port about 385,000 twenty-foot-equivalent units, or TEUs, a year – roughly 7.6 percent of the port's total TEUs handled in 2009. According to port officials, negotiations are under way with at least one current tenant at Long Beach to possibly backfill into at least some of the vacated CUT location.
"The timing of this departure allows us to entertain a variety of leasing opportunities that may ultimately result in a more effective use of this property," said Port of Long Beach Deputy Executive Director Chris Lytle last year.
Lytle said demand for terminal space in Long Beach remains high and that new cargo coming to Long Beach will quickly offset the loss of Hyundai’s trade volume.
"New vessels have or will shortly begin calling at the Port of Long Beach, with an additional 1 million or more TEUs a year," said Lytle in August. "At SSA’s Pier A facility alone, the recent addition of two services will result in an additional 550,000 TEUs. Matson’s new China service will add about 234,000 TEU a year."
Lytle also said at the time that the departure of CUT would not impact the Long Beach port's ongoing Middle Harbor Redevelopment Project, which is centered on the shuttered CUT location.
In August 2010, the Port of Los Angeles governing commission approved an amendment to their lease with APM Terminals Pacific that provides for a CUT sublease of APM property located on the Los Angeles port's Pier 400. The nearly 500-acre APM facility on Pier 400 is home to shipping giant Maersk.
Ironically, Maersk was also a defector from Long Beach, moving to the then-recently completed Pier 400 in the early 2000s and taking with it nearly a quarter of Long Beach's annual container traffic. Surprising most in the industry at the time, Long Beach port officials were able to make up the loss in about 18 months with new tenants and expanded operations by existing tenants.
CUT, a subsidiary of Hyundai Merchant Marine, is now operating out of 98 acres of land subleased from APM Terminals in the Port of Los Angeles. CUT began operations at the new facility in Los Angeles on December 5, 2010, just two weeks prior to the final vessel call at the Long Beach facility. The CUT terminal in Long Beach, which opened in 1979, was servicing calls mainly from Hyundai as well as carriers APL and MOL.
In August, 2010 CUT announced its intention to relocate to the Port of Los Angeles by the end of 2010. CUT officials said at the time that the Long Beach facility was no longer a good fit based on construction schedules, land configuration and berthing space limitations.
Port of Long Beach officials estimate that the departure of CUT will cost the port about 385,000 twenty-foot-equivalent units, or TEUs, a year – roughly 7.6 percent of the port's total TEUs handled in 2009. According to port officials, negotiations are under way with at least one current tenant at Long Beach to possibly backfill into at least some of the vacated CUT location.
"The timing of this departure allows us to entertain a variety of leasing opportunities that may ultimately result in a more effective use of this property," said Port of Long Beach Deputy Executive Director Chris Lytle last year.
Lytle said demand for terminal space in Long Beach remains high and that new cargo coming to Long Beach will quickly offset the loss of Hyundai’s trade volume.
"New vessels have or will shortly begin calling at the Port of Long Beach, with an additional 1 million or more TEUs a year," said Lytle in August. "At SSA’s Pier A facility alone, the recent addition of two services will result in an additional 550,000 TEUs. Matson’s new China service will add about 234,000 TEU a year."
Lytle also said at the time that the departure of CUT would not impact the Long Beach port's ongoing Middle Harbor Redevelopment Project, which is centered on the shuttered CUT location.
In August 2010, the Port of Los Angeles governing commission approved an amendment to their lease with APM Terminals Pacific that provides for a CUT sublease of APM property located on the Los Angeles port's Pier 400. The nearly 500-acre APM facility on Pier 400 is home to shipping giant Maersk.
Ironically, Maersk was also a defector from Long Beach, moving to the then-recently completed Pier 400 in the early 2000s and taking with it nearly a quarter of Long Beach's annual container traffic. Surprising most in the industry at the time, Long Beach port officials were able to make up the loss in about 18 months with new tenants and expanded operations by existing tenants.
Tuesday, September 14, 2010
Long Beach Port Approves New Lease for Departing Tenant
The governing board for the Port of Long Beach on Monday approved a short-term lease with California United Terminals that set terms for the terminal operator to vacate its Long Beach Pier D and E terminal by the end of the year.
CUT, a subsidiary of Hyundai Merchant Marine, had been envisioned as the major tenant for a reconfigured Pier D and E being developed by the port, but in July CUT announced it would be leaving Long Beach to take space at the neighboring Port of Los Angeles' APM terminal.
Last year, CUT's lease was shifted to a month-to-month basis when their regular lease expired.
The short-term lease approved on Monday will replace the month-to-month lease and run through December 31, 2010 with a base rent paid to the port of $8.5 million. While CUT will remain responsible under the new terms for the security and maintenance of the entire 154-acre parcel, the short-term lease rent is based on the 120-acre contatiner terminal portion of the property.
The port has the discretion to extend the new lease past the December 31 date on a monthly basis at a minimum rent rate of $2 million per month.
The new lease also set terms for repairs to the terminal that must be performed by CUT no later than Nov. 30, 2010, and specifies the removal of all CUT equipment, including gantry cranes, by the end of the new lease term.
CUT first signed on with the Port of Long Beach in 1979.
CUT, a subsidiary of Hyundai Merchant Marine, had been envisioned as the major tenant for a reconfigured Pier D and E being developed by the port, but in July CUT announced it would be leaving Long Beach to take space at the neighboring Port of Los Angeles' APM terminal.
Last year, CUT's lease was shifted to a month-to-month basis when their regular lease expired.
The short-term lease approved on Monday will replace the month-to-month lease and run through December 31, 2010 with a base rent paid to the port of $8.5 million. While CUT will remain responsible under the new terms for the security and maintenance of the entire 154-acre parcel, the short-term lease rent is based on the 120-acre contatiner terminal portion of the property.
The port has the discretion to extend the new lease past the December 31 date on a monthly basis at a minimum rent rate of $2 million per month.
The new lease also set terms for repairs to the terminal that must be performed by CUT no later than Nov. 30, 2010, and specifies the removal of all CUT equipment, including gantry cranes, by the end of the new lease term.
CUT first signed on with the Port of Long Beach in 1979.
Friday, August 6, 2010
CUT to Move From Long Beach to Los Angeles
As first reported in PMM Online yesterday, California United Terminals will be moving from their home of more than 30 years at the Port of Long Beach to the neighboring Port of Los Angeles sometime around the end of the year.
On Thursday, the Port of Los Angeles governing commission approved an amendment to their lease with APM Terminals Pacific that provides for a CUT sublease of up to 200 acres on the APM property located on the Los Angeles port's Pier 400. According to port documents, the new Los Angeles facility for CUT, though physically on Pier 400, will be known as Pier 500.
The future Los Angeles CUT facility will be located on portions of the nearly 500-acre APM facility on Pier 400 which is home to Maersk. Ironically, Maersk was also a defector from Long Beach, moving to the then-recently completed Pier 400 in the early 2000s.
The current 130-acre CUT terminal in Long Beach is the epicenter of the Long Beach port's ongoing Middle Harbor Redevelopment Project and according to port officials, the CUT operators felt that the facility was no longer a good fit based on construction schedules, land configuration and berthing space limitations.
The CUT terminal in Long Beach, which opened in 1979, currently services calls mainly from Hyundai Merchant Marine as well as APL and MOL. The terminal handled just under 390,000 TEUs last year.
The move came as no surprise to Long Beach officials, who report that they have already been talking with potential replacement customers for the departing CUT.
"The departure of Hyundai Merchant Marine will not impact construction of the Middle Harbor Project," said Port of Long Beach Deputy Executive Director Chris Lytle.
"The Middle Harbor Redevelopment Project was designed to modernize and upgrade aging port infrastructure, regardless of the shipping company leasing the facilities. In fact, the timing of this departure allows us to entertain a variety of leasing opportunities that may ultimately result in a more effective use of this property and shorter construction times."
Lytle said demand for terminal space in Long Beach remains high and that new cargo coming to Long Beach will offset the loss of Hyundai’s trade volume.
"New vessels have or will shortly begin calling at the Port of Long Beach, with an additional 1 million or more TEU’s a year," said Lytle. "At SSA’s Pier A facility alone, the recent addition of two services will result in an additional 550,000 TEUs. Matson’s new China service will add about 234,000 TEU a year."
On Thursday, the Port of Los Angeles governing commission approved an amendment to their lease with APM Terminals Pacific that provides for a CUT sublease of up to 200 acres on the APM property located on the Los Angeles port's Pier 400. According to port documents, the new Los Angeles facility for CUT, though physically on Pier 400, will be known as Pier 500.
The future Los Angeles CUT facility will be located on portions of the nearly 500-acre APM facility on Pier 400 which is home to Maersk. Ironically, Maersk was also a defector from Long Beach, moving to the then-recently completed Pier 400 in the early 2000s.
The current 130-acre CUT terminal in Long Beach is the epicenter of the Long Beach port's ongoing Middle Harbor Redevelopment Project and according to port officials, the CUT operators felt that the facility was no longer a good fit based on construction schedules, land configuration and berthing space limitations.
The CUT terminal in Long Beach, which opened in 1979, currently services calls mainly from Hyundai Merchant Marine as well as APL and MOL. The terminal handled just under 390,000 TEUs last year.
The move came as no surprise to Long Beach officials, who report that they have already been talking with potential replacement customers for the departing CUT.
"The departure of Hyundai Merchant Marine will not impact construction of the Middle Harbor Project," said Port of Long Beach Deputy Executive Director Chris Lytle.
"The Middle Harbor Redevelopment Project was designed to modernize and upgrade aging port infrastructure, regardless of the shipping company leasing the facilities. In fact, the timing of this departure allows us to entertain a variety of leasing opportunities that may ultimately result in a more effective use of this property and shorter construction times."
Lytle said demand for terminal space in Long Beach remains high and that new cargo coming to Long Beach will offset the loss of Hyundai’s trade volume.
"New vessels have or will shortly begin calling at the Port of Long Beach, with an additional 1 million or more TEU’s a year," said Lytle. "At SSA’s Pier A facility alone, the recent addition of two services will result in an additional 550,000 TEUs. Matson’s new China service will add about 234,000 TEU a year."
