Oakland Port Head: Growth is the Theme in 2017

By Mark Edward Nero

Analysts are projecting three-to-four percent cargo volume growth for West Coast ports in 2017, but the Port of Oakland plans to outperform that prediction, the port’s executive director said during his annual State of the Port speech on Jan. 12.

Executive Director Chris Lytle spoke to an invited audience of about 250 people during his annual address in Jack London Square. The audience included Oakland Mayor Libby Schaaf.

It was a year ago that the Port of Oakland faced the bankruptcy of its second-largest marine terminal tenant, Ports America. Now, Lytle said, Oakland faces a new year fortified by record earnings and cargo volume over the last 12 months.

“I have to tell you, this feels a whole lot better,” Lytle said. “We’re on a bit of a roll.”

He then rattled off record-breaking performances at the port during the past year, including loaded containerized cargo volume at the port, as well as an all-time high of $338 million in operating revenue for fiscal year 2016.

Lytle also said the port reported a 98 percent drop in truck diesel emissions, improving air quality in nearby neighborhoods.

The port’s progress is gratifying, given where it began 2016, Lytle said. A year ago, Ports America, Oakland’s second-largest terminal operator, declared bankruptcy and departed. The port responded by consolidating container business into four remaining terminals. The move resulted in Oakland retaining all of the bankrupt terminal’s cargo, and actually growing loaded container volume 7.6 percent. “We’re healthy, and we want to keep it that way,” Lytle said.

There’s still work to do if Oakland wants to grow its influence as a global trade gateway, he said. Operating performance improved in 2016, he said, but has to get better. He also said Oakland needs to increase its containerized import volume to match strong export growth.

“Our marine terminals are investing, modernizing, improving,” he said. “We’ve done a very good job in preparing for the future.”

Lytle said continued growth would be the port’s theme in 2017.

A groundbreaking is likely in February on a 300,000-square-foot Cool Port, a cold storage and transfer facility that could process up to 30,000 containers of beef and pork annually.

Oakland Port Exec Touts Location Advantages

By Mark Edward Nero

The Port of Oakland’s location may be its biggest advantage and is also key to its future, Executive Director Chris Lytle told more than 140 customers during a recent speech to the Council of Supply Chain Management Professionals.

In his remarks, Lytle said geography will be a differentiator as Oakland competes with other ports for business over the next decade, specifically the port’s nearness to California’s Central Valley, a large, flat valley encompassing about 450 miles in the middle of the state.

“The Port of Oakland’s proximity to the Central Valley makes us a vital link in the global agricultural supply chain,” said Port of Oakland Executive Director, Chris Lytle. “For our customers—that means greater reliability and reduced travel times through Oakland.”

Lytle predicted importers will find Oakland’s location increasingly attractive as the economies of the greater Bay Area, Northern California and even Nevada continue to blossom. More than 80 percent of the port’s inbound cargo volume goes to those areas.

Oakland’s proximity to major California growing centers will continue to benefit agricultural exporters, Lytle said, pointing out that the port is already a preferred outlet to Asia for Central Valley fruits and nuts, Salinas Valley greens, and wines from California’s northern half.

Soon, Lytle, said, more of the food chain will find its way through Oakland, as the port is working on a 400,000 square foot “Cool Port” cold storage facility for refrigerated export commodities that is expected to strengthen Oakland’s role as a meat and poultry gateway.

The port’s planned Seaport Logistics Center will provide customers with an entirely self-contained “one stop” facility for warehousing and distribution. The main advantage of the Logistics Center’s location, according to the port, is that it will be built adjacent to marine terminals and railyards, thereby speeding up overall goods movement in Oakland.

Oakland Port Director Gets New Contract

By Mark Edward Nero

The Port of Oakland Commission has awarded Executive Director Chris Lytle a new three-year contract, the port announced June 27. Commissioners unanimously approved the new deal at a meeting last week.

The agreement means the longtime industry veteran will remain at the helm in Oakland through at least July 2019.

“Chris Lytle has transformed the Port of Oakland and raised its visibility as a center for trade, transportation and economic vitality,” Board of Port Commissioners President Earl Hamlin said. “We look forward to three more years of progress together.”

Lytle will continue to manage three primary businesses: the seaport, Oakland International Airport and a commercial real estate portfolio. All three have achieved milestones under Lytle in 2016, including an export rebound at the Port of Oakland, along with the first three visits of the 1,300-foot-long, 18,000-TEU CMA CGM Benjamin Franklin, the largest cargo ship to ever visit the US.

“It has been gratifying to work with the staff and Board at the Port of Oakland,” Lytle said in a statement. “We’ve achieved a great deal together and it’s my honor to continue working toward our common goals.”

Lytle joined the Port of Oakland in 2013 after serving as executive director at the Port of Long Beach since 2011. He had originally joined Long Beach in 2006 as a managing director.

Prior to that, he worked as a shipping industry executive with CMA CGM, P&O Ports, APM Terminals and Sea-Land Service.

Oakland Port Moving Toward Saturday Operations

By Mark Edward Nero

The Port of Oakland wants to operate on Saturdays, but has a couple of concerns about potential weekend gate openings, the port’s executive director revealed in a recent letter to the Federal Maritime Commission.

In the letter, sent Aug. 18 by port Executive Director Chris Lytle to Federal Maritime Commission Secretary Karen Gregory, Lytle said opening terminal gates on Saturdays could ease congestion and improve efficiency in Oakland.

Lytle’s letter was in response to plans by Oakland marine terminal operators to open their gates on Saturdays. The proposal, currently under review by the Oakland Board of Port Commissioners, could ease weekday terminal crowding by adding a sixth day of work.

Oakland terminals are already open on weekends for vessel operations, but rarely for other activities.

The new arrangement would open terminals every Saturday for full operations, including gate entry. This would enable harbor truckers to pick-up containerized imports for delivery, drop-off exports or return empty containers.

In his letter, Lytle said there are two caveats to Saturday operations, one being a resolution to a current labor shortage that has slowed vessel loading operations for several months; and the other being that any fee to fund Saturday operations must be reasonable and used exclusively for those operations.

The port, which itself doesn’t operate marine terminals, has said it favors Saturday hours as part of a broader plan developed to speed up cargo delivery. That plan includes offsite locations to collect empty containers and a common pool of container chassis for harbor truckers.

A labor shortage that has reduced productivity this summer is being addressed, the Port said. It added, however, that more dockworkers are needed to ensure Saturday operations are successful.

If Saturday gate hours were put into place, their effectiveness would be reviewed after one year of operation, according to the port.

Oakland Port Head Calls for Industry Change

By Mark Edward Nero

Disruptions from waterfront labor negotiations have waned, but don’t expect a return to business as usual at West Coast ports, the Port of Oakland’s executive director said during a March 4 meeting of the Waterfront Coalition in Long Beach, Calif.

“The old methods won’t work any longer,” Port of Oakland executive director Chris Lytle told the Coalition, which is based in Washington, DC and consists of business interests representing shippers, transportation providers and other stakeholders within the transportation supply chain.

“We can’t go back to the way it was; that’s not acceptable,” Lytle said during a 90-minute roundtable discussion that also included the heads of the Los Angeles and Long Beach seaports. “We have to do a better job for our customers if we want to hold onto our market share.”

Lytle also addressed the aftermath of nine months of labor-management disputes on the waterfront. The longshore contract impasse ended Feb. 20 with a new five-year contract for 29 ports along the US West Coast.

Ports are currently digging out from a cargo backlog, and during the roundtable, Lytle called for a number of improvements to reshape his industry as recovery from the labor dispute gets underway.

His suggestions included reduced transaction times for harbor truck drivers, who sometimes spend more than two hours inside marine terminals picking up cargo; better measurement of terminal operating performance; and a new labor-management relationship.

“We need a new mindset for negotiating,” Lytle said. “What we just went through was the worst experience in my professional career. I don't want to go through that again.”

Lytle also said there’s an opportunity for ports to play a greater role in labor relations by working with labor and management for greater collaboration. Although ports don’t hire longshore labor – terminal operators and shipping lines in the Pacific Maritime Association do -- Lytle said the port will meet with local labor officials and encourage them to take part in talks with shippers who rely on the Port of Oakland to move their cargo.

Better understanding of shipper needs can lead to better outcomes in future bargaining,” he said.

The port will also work with leasing companies to improve the availability of truck chassis’ used to haul cargo containers, he added, indicating that the Port of Oakland will work toward a common pool of the trailers to prevent shortages from recurring.

Interim Director Named at Port of Long Beach

The Long Beach Board of Harbor Commissioners announced on June 7 that Al Moro, the port’s Chief  Harbor Engineer would be the interim executive director, filling in for Chris Lytle, who announced on May 23 that he was leaving the Port of Long Beach to head the Port of Oakland.

“We have unanimously selected Al Moro as our interim executive director,” Board of Harbor Commissioners President Susan Anderson Wise said. “He is highly respected by all of the commissioners, very well regarded in our industry and well-liked by the port staff.”

Moro, who joined the port in 1997 as a civil engineer, currently oversees all administrative and technical activities for its engineering programs, including nearly $4 billion in capital improvement projects.

As chief harbor engineer, Moro has overseen all administrative and technical activities for the port’s four engineering divisions, including construction management. He supervised 135 engineers, surveyors, technicians, and support staff, and managed the port’s extensive capital improvement program, including the replacement of the Gerald Desmond Bridge.

Moro’s appointment goes into effect following a formal vote on June 17, said Wise.

“I am honored to have been selected by the Board of Harbor Commissioners to serve as interim director,” Moro commented. “A major goal of mine will be to provide stability and continuity during the transition. It’s important that we continue to move forward with all of our projects.”

Moro has said he would not be a candidate for the permanent position.

Lytle is expected to remain at Long Beach until mid-July and is scheduled to begin his new job in Oakland shortly thereafter. His imminent departure means that the Port of Long Beach will have five upper management vacancies to fill. In addition to the executive director’s job, the positions of Deputy Executive Director/Chief Operating Officer, Managing Director of Trade Development and Port Operations, and Director of Communications, are all currently vacant. Also, Long Beach’s Managing Director of Environmental Affairs & Planning, Robert Kanter, is retiring after 23 years with the Port of Long Beach.

 

 

POLB Head Resigning to Lead Port of Oakland

After less than two years as executive director of the Port of Long Beach, Chris Lytle is leaving to take on the same role at the Port of Oakland.

In doing so, Lytle will leave the second busiest seaport in North America to take the helm of the California’s third-busiest port, which is still in the process of recovering from a scandal involving its previous executive and maritime directors.

“The future of the Port of Oakland is bright, and I am excited to be a part of the team as we work to realize its tremendous potential,” Lytle said in a statement released by the port. “My family and I are also really looking forward to living and working in the Oakland area once again.”

Lytle was previously based in Oakland from 1992-1995 as an executive with Sea-Land Service Inc.

He has held the Port of Long Beach’s executive director position since November 2011, taking over the role upon the retirement of longtime director Dick Steinke. Lytle first joined the Port of Long Beach in 2006 as a managing director, and was promoted to Deputy Executive Director and Chief Operating Officer in 2008.

Lytle is expected to remain at Long Beach until mid-July and is scheduled to begin his new job in Oakland shortly thereafter. The Long Beach Board of Harbor Commissioners is expected to name an interim executive director sometime in June.

Prior to his Long Beach tenure, Lytle was Vice President of West Coast Operations for the French-based shipping line CMA CGM. He also previously held executive positions at P&O Ports North America and Denmark-based APM (Maersk) Terminals. He holds an MBA from the University of Puget Sound and a Bachelor’s Degree in Business Administration from Central Washington University.

“My time here in Long Beach has been wonderful and I have been very privileged to work with a talented, dedicated staff and the best customers of any seaport in the world,” Lytle said May 23. “I will miss the Port of Long Beach, but look forward to exciting new career challenges in Oakland.”

Among the challenges awaiting him in Oakland will be helping the port continue its recovery from a financial scandal involving the port’s previous executive director, Omar Benjamin and maritime director, James Kwon. In 2012, the two were found to have spent $4,500 entertaining shipping executives at strip club in Houston, Texas 2008 during a business conference.

Kwon resigned effective at the end of 2012, while Benjamin was forced into retirement in November of the same year. Another port executive, Deborah Ale Flint, has been serving as interim port director since October 2012. She is expected to continue in a senior executive position after Lytle comes aboard, according to the Port of Oakland.

MSC Buys Stake in POLB Terminal

Mediterranean Shipping Co. has decided to buy a stake in the leasehold for the marine terminal operations at Pier T, the Port of Long Beach’s largest container terminal, port Executive Director Chris Lytle announced during his annual “State of the Port” address Jan. 31.

“I am proud to announce that the Mediterranean Shipping Company, the second-largest shipping line in the world, has increased its investment in the Port of Long Beach by partnering with Total Terminal International at Pier T. This essentially doubles their stake here at Long Beach,” he said. “MSC already has an interest in Pier A, but this decision makes Long Beach the carrier’s West Coast hub, ensuring it will move more cargo through our port.”

Port of Long Beach is MSC’s biggest West Coast hub of operations, and Pier T is the port’s largest container terminal. The decision by Mediterranean to increase its investments at the terminal is the second such move by a leading shipping company in recent months.

The port announced in December that CMA CGM, the world’s third-largest ocean carrier, had purchased a stake in Pier J in Long Beach.

“For those of you who have been keeping tally, yes, that’s right: two of the world’s top three ocean carriers are now here in Long Beach,” Lytle said during his speech, which took place in front of hundreds at the Long Beach Convention Center’s Grand Ballroom, which seats up to 2,100.

The Swiss-based MSC and CMA CGM, of France, have been coming to the Port for years, but their direct investments mean Long Beach will be their exclusive gateway in Southern California, bringing more trade. MSC and CMA CGM operate some of the biggest containerized cargo ships in the trans-Pacific trade. The MSC Beatrice, for example, is among the latest generation of larger, greener ships. The MSC Beatrice can carry 13,798 container units – more than 70 percent more than the typical “megaship” of a few years ago.

Also during his address, Lytle touched on various other topics, including the port’s ongoing 10-year, $4.5 billion rebuilding and modernization program, which focuses on bringing cleaner and more efficient facilities to the port. Components include major waterfront improvements at Middle Harbor and Pier G and a $1 billion project to replace the aging Gerald Desmond Bridge.

“Ports in Canada, Mexico and right here in the US – on both coasts – all want a greater share of our business. To stay competitive and keep jobs here, we must continue to improve our facilities,” he said. “We are committed to ensuring that the hundreds of thousands of trade-related jobs that depend on our success stay right here in Southern California.”

POLB Schedules Annual ‘State of the Port’ Address

Port of Long Beach Executive Director Chris Lytle is scheduled to deliver his 2013 “State of the Port” address Thurs. Jan. 31. The event is scheduled for 11:30 am to 1:30 pm at the Long Beach Convention Center’s Grand Ballroom.

This will be the second State of the Port address for Lytle, who assumed the port’s top post from the retiring Dick Steinke in late 2011, just as Long Beach embarked on a $4.5 billion capital improvement program, the largest in the nation.

Lytle’s expected to give an update on the progress of construction projects, including the redevelopment of Middle Harbor and the construction of a new modern span to replace the aging Gerald Desmond Bridge. The two projects alone are expected to generate about 4,000 construction jobs, according to the port.

Despite the slow economic recovery, Long Beach saw year-over-year increases in the number of loaded inbound and outbound containers its terminals shipped in 2012. The 3.06 million loaded inbound containers the port saw represented a 1.2 percent increase from calendar year 2011, and the 1.54 million loaded outbound containers sent overseas was a 2.2 percent increase from the previous year.

The overall volume was dragged down, however, by a decline in the number of empty TEUs imported and exported. POLB terminals shipped 1.44 million such containers between last January and December, a 5.6 percent drop from calendar year 2011.

Port of Long Beach Confirms New Executive Director

As expected, the Port of Long Beach has officially confirmed Chris Lytle as its new executive director. The port’s Board of Harbor Commissioners voted 4-0 on Nov. 14 to appoint Lytle to the position.

He replaces Dick Steinke, who announced his retirement in April after having been executive director since 1997.

“I’m excited about the opportunity to move things forward,” Lytle said after being confirmed. “I think we have the opportunity now to take a little bit different look, a fresh look at a couple things. Not that we’re going to do anything drastically different than what Dick has established.”

Lytle, who’s held the position of deputy executive director since 2008, joined the port as a managing director in 2006. He holds a master’s degree in business administration from the University of Puget Sound and a bachelor’s degree in business administration from Central Washington University.

He’s a former vice president with the French shipping line CMA CGM and also previously held executive-level positions with P&O Ports North America, Sea-Land Service Inc. and APM Terminals.

Harbor Commission President Susan E. Anderson Wise said that Lytle was chosen after an extensive, nationwide search and that his experience in both the public and private sectors is what made him the ideal choice.

Steinke, who originally planned to retire in September, has agreed to stay on until the end of the year.

Port of Long Beach Picks New Executive Director

The Long Beach Board of Harbor Commissioners has chosen Chris Lytle to succeed Dick Steinke as the port’s executive director. The board confirmed Nov. 7 that it would vote to approve Lytle during its next business meeting, currently scheduled for Nov. 14.

Lytle, who’s held the position of deputy executive director since 2008, joined the port as a managing director in 2006. He holds a master’s degree in business administration from the University of Puget Sound and a bachelor’s degree in business administration from Central Washington University.

He’s a former vice president with the French shipping line CMA CGM and also previously held executive-level positions with P&O Ports North America, Sea-Land Service Inc. and APM Terminals.

Harbor Commission President Susan E. Anderson Wise said that Lytle was chosen after an extensive, nationwide search and that his extensive public and private experience make him the ideal choice.

“On the private side, he’s operated shipping terminals around the world and fully understands the unique issues facing public ports in California,” she said. “And while he understands the industry, he’s also very open to new ideas and innovations.”

Steinke, who announced his retirement in April, joined the port in 1990 and had been executive director since 1997.