Thursday, November 3, 2011

Changing of the Guard

In the late 1990s, as I sat down at a desk in the Business Department of the Long Beach Press-Telegram as a new reporter, I was immediately asked which beat I wanted to cover: aerospace or the ports.

Despite a fascination with planes and aviation since a child, I chose the ports. I figured that it would be a great learning experience on something I knew nothing about.

Flash forward more than a dozen years, and I can say with some certainty that I still don't know enough about the maritime industry. But good fortune and hard work have allowed me to spend these years covering an industry that I have come to love – mainly because there is something new to learn just about every day.

During this time, thanks to many of you, I have managed to offer news on this industry that I sincerely hope has been helpful and informative.

And yet, just like that first day as a reporter when I chose to hitch my career to the maritime industry, I have now decided to move into another field that I am sure will be another great learning experience.

So, the journalism part of my career comes to an end as yet another door opens.

Just over two years ago, we started the PMM Online newsletter with the idea of providing each of you with West Coast maritime news that was both substantive and also offered important background and context. I think we succeeded beyond our expectations.

And that success will continue. Veteran maritime reporter Mark Nero will take the helm of PMM Online starting next week. Mark is a great reporter, a good friend, and best of all, a member of that every shrinking clan of reporters who genuinely love covering the maritime industry.

For my part, I will look at my time with the PMM family as a tremendous learning experience – and an opportunity that has afforded me the chance to work with some of the best and the brightest people around.

And while my path may no longer go in the same direction as PMM’s, I am proud to say we all travelled together for a while. I can only hope that somewhere in the distance, our paths may intersect again.

Thank you to everyone, both in the industry and at PMM. It was quite a run.

Los Angeles City Hall Forms Export Council

With the goal of making it easier for Los Angeles region firms to export goods and services, Los Angeles Mayor Antonio Villaraigosa announced Monday the formation of the Los Angeles Regional Export Council (LARExC).

The council is a collaboration between City Hall, the Los Angeles World Airports, the Port of Los Angeles, the Los Angeles Area Chamber of Commerce, the Centers for International Trade Development, the USC Center for International Business Education and Research and the UCLA Center for International Business Education and Research.

The LARExC will start by creating a website to serve as a single entry point for firms seeking assistance to sell goods and service abroad.

"We in Los Angeles are not waiting for Washington to create jobs," Villaraigosa said.
"We are launching the Los Angeles Regional Export Council to help local businesses find the export assistance they need to grow their businesses and create new jobs."

The LARExC website will serve as a one-stop regional export web resource to connect small- and medium-sized businesses with the appropriate export services. The council's main focus will be on existing exporters or firms that have the ability to start exporting, in about a dozen key growth industries ranging from apparel to green products to food products.

"As we continue to face a weak economy, regional leaders have to leverage their key assets and develop strategies to better engage in the global marketplace if they want to succeed in creating jobs in the short term and transform their economies for the long term," said Amy Liu, Co-Director and Senior Fellow, the Metropolitan Policy Program at the Brookings Institution, who Villaraigosa praised for inspiring the idea of the LARExC.

"This economic initiative will put Los Angeles and Southern California on that path to a more prosperous future."

The LARExC will also work with area trade groups to offer local businesses training in the nuances and advantages of free trade agreements.

Protesters Occupy, Shut Down Oakland Port

Thousands of "Occupy Oakland" protesters marched into the Port of Oakland Wednesday night, effectively shutting down evening operations at the port.

The protest at the port was part of a day-long "general strike" called by the Occupy Oakland protesters in response to the police handling of protests last week that led to the serious injury by law enforcement officers of protester Scott Olsen.

The Occupy movement began in New York City almost two months ago, drawing thousands of angry protesters claiming that one percent of the population controls a disproportionate amount of the nation's wealth and power. The movement has since spread to nearly two-dozen United States cities and other cities abroad.

On Monday, members of the International Longshore and Warehouse Union offered their support to the Occupy Oakland protesters. However, ILWU members are not allowed to call a strike in support of actions such as the Occupy protests. ILWU officials said several dozen dockers did not show up for work at the port Wednesday, representing about 10 percent of the approximately 300-member strong workforce called for on Wednesday.

Protesters began arriving at the port in the early morning Wednesday and quickly overwhelmed gates and entrances throughout the port. The protesters, estimated by police to number about 3,000, stayed at the port for four to five hours before returning to Frank Ogawa Plaza in downtown Oakland.

Port officials on Thursday morning reported that operations at the port were returning to normal, but the situation remained "fluid."

Despite the relatively short duration of the protests on Wednesday, the first Occupy efforts directed at the port, port officials warned that such shutdowns could have dire economic consequences.

"Continued disruptions will begin to lead to re-routing of cargo and permanent loss of jobs, a situation that would only exacerbate the on-going economic challenges of our region," the port said.

WTC Owners Seek to Break Long Beach Port Deadline on HQ Purchase

With the clock ticking on the Port of Long Beach's purchase agreement to buy the World Trade Center in downtown Long Beach as a new headquarters, the current owners of the building are seeking to break the port governing board's deadlock on the $130 million deal.

Legacy Partners, the current owners of the 27-story office building, have taken advantage of an extension in the 60-day agreement to extend the deadline to Nov. 15. The previous deadline had been set to end the agreement earlier this week.

Legacy has also taken steps to break the 2-2 deadlock on the five-member port board due to one commissioner's recusal on the vote.

The port has been seeking to replace its circa-1959 headquarters building – determined to be seismically unfit – for nearly a decade. The WTC is one of several properties that port management have considered over the past year as a possible location to move the more than 450-member port staff.

The port had planned to internally fund and build a $220 million state-of-the-art "green" headquarters in the port, but Long Beach Mayor Bob Foster shot the plan down last year as too expensive, despite no planned expenditures of taxpayer funds. Since the mayor's decision, the port has been looking to lease or purchase a nearby office building to house the port staff.

In preparation to purchase the WTC, the port entered into a 60-day due diligence agreement with Legacy on Sept. 12.

Despite approving the 60-day agreement, the two freshmen commissioners on the port board – Rich Dines and Doug Drummond – have since blocked moving forward with the purchase. Commissioners Thomas Fields and Nick Sramek have voted to move forward with the purchase, but Commission president Susan Wise has been forced by the City Attorney to recuse herself from the vote because she subleases an office space in the WTC from her husband. This has left the port board in a 2-2 deadlock over the purchase of the WTC.

Dines and Drummond have said that they would prefer the port to purchase land and build a new headquarters building in downtown. The only properties offered up that meet these criteria are owned by Skip Keesel, a prominent Long Beach attorney and a major supporter of Mayor Foster.

Dines and Drummond, who were appointed to the port board by Mayor Foster earlier this year, have both indicated that they support a new direction for the port that places more emphasis on following the direction of City Hall. Technically the port functions as a semi-autonomous department of the city, though recent moves by Mayor Foster have sought to reign in that autonomy.

Legacy asked City Attorney Robert Shannon to reconsider his opinion that Commissioner Wise must recuse herself from voting on the WTC deal, but earlier this week Shannon declined to change his opinion or extend the deadline.

Legacy has also asked the state Fair Political Practices Commission – which operates as the final voice in government conflict of interest situations – to assess the situation with Commissioner Wise. The group has requested a speedy hearing from the FPPC.

Commissioners Dines and Wise are out of the country on a trade mission and are not expected to return to the US until Monday at the earliest. However, if neither can make it to the Monday board meeting, it would leave the possibility of a three-member quorum vote on the issue, with the already stated positions of the remaining commissioners giving a 2-1 edge in favor of purchasing the WTC.

If no vote is taken Monday, the final full meeting within the deadline period would be Nov. 14.

Tuesday, November 1, 2011

Oakland Council Must Revote on Port Board Appointments

File this under "Oops."

A recent Oakland City Council vote approving the appointment of Jakada Imani and Victor Uno to the Port of Oakland Harbor Commission will have to be retaken on the advice of the City Attorney for potentially violating the state's open meeting laws.

The vote, which occurred earlier this month, approved replacing commissioner Margaret Gordon with Imani and approved reappointing Uno to the port governing board.

However, the vote took place during a crowded and confusing council meeting, where more than 60 members of the public had signed up to speak. Council members, who had already given preliminary approval to the appointments during two previous public meetings, took the Imani/Uno vote before allowing the registered members of the public to speak – an apparent violation of the state's open meeting laws.

Following the meeting, a Council subcommittee asked City Attorney Barbara Parker to evaluate whether the process regarding the vote was properly handled by the council. Parker later notified Oakland Mayor Jean Quan in a memo that the council vote on the commissioners was invalid.

"Given the confusion in the chamber and timing of the vote, we conclude that public speakers on both sides of the issue were not given a clear opportunity to speak before the Council voted on the item as required by the Sunshine Ordinance and Brown Act," Parker said in the memo.

"It is of the utmost importance that citizens have a voice in the business conducted on their behalf by the Council. To fully comply with the requirement that the public has a meaningful opportunity to address the Council before it takes action, this item must be re-noticed to “cure and correct."

Mayor Quan has drawn heat from the public and many members of the city council over her plans to replace Gordon, a noted environmental and community activist, on the port board. In addition, Quan has taken criticism for the way she handled the appointment of Imani over Gordon – reportedly notifying Gordon of her decision via email and refusing to talk to Gordon supporters regarding the decision.

For her part, Quan has denied any improper treatment of Gordon.

APL/APL Logistics Assisting With Thailand Flood Relief

APL and APL Logistics, the shipping and logistics arms of Singapore-based NOL Group, announced a three prong effort on Monday to assist victims of devastating flooding in Thailand. The two NOL Group subsidiaries added that they are maintaining full operations in Thailand despite the fact that large swaths of the country remain underwater.

Torrential rain has caused Thailand’s worst flooding in a half century. Nearly 400 people have died during the crisis. A third of the country’s provinces have been inundated.

"We are doing everything we can to provide uninterrupted service in a time of need," APL Thailand Managing Director Watana Kitikongnopakorn said. "At the same time we are providing resources to help the country overcome this crisis."

The APL/APL Logistics three-pronged contribution to flood relief includes: free containerized transport of relief supplies and rescue boats to outlying Thai provinces, a rescue paddle boat, and a 40-foot container for a barrier to hold back flood waters; $20,000 to the Red Cross in Thailand; and, more than $6,000 from APL/APL Logistics employees to relief agencies.

APL Thailand said it would remain in contact with emergency response officials to determine if further support is needed.

APL and APL Logistics said their Thailand offices and facilities remain operational. Both have developed contingency plans should flooding become widespread in Bangkok. According to the firm, APL service at Laem Chabang Port and at its Lat Krabang container depot near Bangkok remains uninterrupted.

APL is still accepting inbound bookings at Laem Chabang and Lat Krabang. APL and APL Logistics are urging customers to clear cargo directly at Laem Chabang Port to avoid potential flooding risks in Bangkok. APL said there are no restrictions on outbound bookings.

APL Logistics said it is taking preventive measures at its warehousing facilities to protect customers’ goods and to limit damage from the flood, which has broken down supply chains across the inundated country. APL Logistics added that it is working closely with customers to execute contingency plans.

Construction to Start on New 144-Car Washington State Ferry

Construction will begin early next year on a new 144-car ferry for the Washington State Ferries, following the State's signing of a contract change order with Vigor Industrial and its US Fab shipbuilding division to begin construction.

“This has been a momentous week for Washington state and our ferry system,” said Gov. Christine Gregoire. “We have just taken delivery of the last of three new 64-car ferries, the Kennewick, and now we begin construction on a new 144-car ferry – an important action that helps ensure we have modern vessels to continue giving our passengers safe and reliable service.”

Work on this first vessel will create an estimated 200 family-wage jobs at Vigor and 350 jobs at subcontractors, vendors and other shipyards in the region.

The new ferry is scheduled to take about 27 months to complete. Cost of construction is $115 million and the total cost of the vessel is $147 million, which includes owner-furnished equipment, construction management and contingencies.

The design of the ferry is based on the 130-car Issaquah class, which has proven to be the most versatile vessel in the state fleet. Benefits of the new 144-car ferry will include increased passenger comfort, improved safety systems, better access for customers with disabilities and reduced operating costs.

“This construction is a vital part of our vessel-renewal program and will allow us to retire the 55-year-old ferry Evergreen State,” says state Transportation Secretary Paula Hammond. “But this is the last boat we have funding for and we don’t have the money needed just to operate our ferry system at the current level. We are on the brink of a crisis.”

WSF has a contract with Vigor for design and construction of up to three 144-car ferries, but it is contingent on available funding.

“We’re eager to get started building this new ferry with our two dozen subcontractors and suppliers around the region,” says Kevin Quigley, president of Vigor’s US Fab division. “We look forward to putting local, skilled shipbuilding trades to work producing another new ferry for the citizens of Washington State.”

Washington State Ferries operates the largest ferry fleet in the United States. Twenty-two ferries cross Puget Sound and its inland waterways, carrying more than 22 million passengers a year.