Panama Canal and Gulf State Port Authority Sign Partnership

The Panama Canal Authority has signed a first-ever partnership agreement with a Gulf State port authority as part of an effort to attract transpacific cargo to an all-water Asia-to-Gulf/East Coast route through an expanded canal which is set for completion in 2014.

Panama Canal Authority (PCA) Administrator/CEO Alberto Alemán Zubieta and Mississippi State Port Authority at Gulfport (MSPA) Executive Director/CEO Donald Allee announced the partnership by signing a five-year memorandum of understanding that will allow for joint marketing ventures, information sharing and technological exchange.

“Today’s MOU signing represents a great opportunity for Panama and Mississippi to build upon our existing offerings and trade relationship through a mutually beneficial alliance,” said PCA's Alemán Zubieta. “One of the primary tenets of the ACP is to continually look for creative approaches to boost trade flows and provide safe, reliable and efficient service to the international maritime community. This agreement is one way that we can help achieve this goal.”

The MSPA is an Enterprise Agency of the State of Mississippi and is responsible for the daily operations of the Port of Gulfport. Part of the mission of both the ACP and the Port is to further increase capacity and foster business development. In 2009, Panama was Mississippi ’s third largest trading partner, in terms of exports, after Canada and Mexico.

“For four decades, the Mississippi State Port Authority has focused on growth prospects in the Western Hemisphere, but the expanded Panama Canal will afford the Port of Gulfport new opportunities to be more competitive in shipping between North America and both Asia and the West Coast of South America,” said MSPA's Allee. “This agreement between the MSPA and the ACP will provide a framework for our two entities to work together to pursue new business opportunities that will result from an expanded Panama Canal.”

The Panama Canal is currently undergoing a $5.25 billion expansion project, which will double the waterway’s capacity and build a new lane of traffic through the construction of a new set of locks. Scheduled for completion in 2014, the expansion will allow more ships and the passage of longer and wider vessels through the Canal.
The canal is one of the major threats to West Coast discretionary cargo – that cargo which does not stay in West Coast port areas and heads mainly via rail to the Midwest or Eastern United States. In the Southern California ports of Long Beach and Los Angeles, nearly 50 percent of all cargo moving through the two ports each year is discretionary.

Vancouver USA Attracts Major Bulk Firm, Finalizes Steel Plant Deal

The Washington state Port of Vancouver has revealed that it is working on a deal with global mining firm BHP Billiton to develop a major new bulk export facility at the port.

The announcement came as Gov. Chris Gregoire visited the port on Wednesday and touted recent efforts by port officials to boost local jobs creation.

Port officials said a tentative agreement with the Melbourne, Australia-based BHP would see the development of a 30-acre to 40-acre potash fertilizer export facility at the port's 218-acre Terminal 5. The port, which has yet to determine the financial aspects of the plan, hopes to have the deal finalized and a lease agreement with BHP in place by early 2012. If completed as expected sometime in 2014, the facility would open in 2015, more than doubling the port's annual cargo tonnage.

During her visit, Gov. Gregoire also praised Tuesday's unanimous decision by the port's Board of Commissioners to sell 20 acres of port property to a Eugene, Ore.-based firm who wants to build a steel fabrication plant on the parcel.

The $5 million sale of surplus port property to private manufacturer Farwest Steel ran counter to normal port policy to lease port parcels, but commissioners said 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.

Farwest plans to spend between $20 million and $30 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 late 2011 or early 2012.

Under the terms of the deal, the port can purchase back the 20-acre parcel is 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.

Los Angeles Port to Revisit Battleship Museum Plan

The last of three San Pedro neighborhood councils has unanimously voted to support a historical group's plan to bring the World War II battleship USS Iowa to the Port of Los Angeles.

The San Pedro Northwest Neighborhood Council voted Monday to support the USS Iowa plan being floated by the non-profit Pacific Battleship Center.

The Navy continues to maintain the vessel in an "on hold" status as part of a government program that donates vessels to museum groups.

The USS Iowa, which saw service in World War II, Korea, and served again as part of the US Navy's "big stick" policy from 1984 to 1989, is the last remaining battleship in the world that has not been permanently placed as a floating museum.

Earlier this year, port officials rejected PBC's proposal to bring the battleship to San Pedro because it could complicate and interfere with an ongoing development of the port's public waterfront area. The port also rejected seven port-area locations identified by PBC as possible berths for the nearly 900-foot-long warship.

Port officials at the time also determined that the Navy had essentially promised the battleship to group trying to locate it in Vallejo near San Francisco.

In May, the Navy determined that the Vallejo proposal fell short and reopened bids to obtain the USS Iowa.

Los Angeles port officials, who still express reservations about site and funding issues, said last week they would revisit the proposal and conduct a cost benefit analysis. The analysis is expected to take several months.

PBC in the past has pointed to the nearly $500 million economic boost the city of San Diego has experienced since the aircraft carrier USS Midway opened on the city's waterfront as a floating carrier and naval aviation museum in 2004.

Approval of a 10-year lease from the port is needed before PBC can submit an application to the Navy to receive the USS Iowa. The Navy deadline is November 24.

Washington State Names 10 Finalists in Export-Boosting Fund Competition

The Washington State Community Economic Revitalization Board, or CERB, has selected 10 finalist projects that will compete for $3 million in loans and grants as part of Gov. Christine Gregoire's state export initiative.

Each of the finalists will receive a formal Request for Proposal from the new Export Assistance Program, a key component of the state export-boosting plan that seeks to meet President Barack Obama's call to double national export levels in five years.
All 10 finalists were selected from a field of 31 applicants by a review panel of CERB members and experts in the promotion of state exports. CERB is looking to boost programs that can achieve substantial, profitable results.

Completed RFP's are due by Aug. 23, 2010 and CERB is expected to make a final determination by September 2010.

The 10 projects selected to submit a full proposal for further consideration are:

City of Bellevue – $157,000 – Asia Target Markets Trade Development: Trade Promotion Strategy for China, Korea, and Japan using Search Engine Optimization and Social Media Platforms;

City of Bellevue – $70,000 – Insights on India: Educational Materials and Case Studies on Culture, Communications, Management and Negotiations related to Doing Business from Washington State with Companies in India;

Clark College/Association of Washington Business Institute – $840,750 – Exports Zone Resource Center/Green Building Material Manufacturing Pilot Program;

Highline Community College – $413,360 – T.R.A.D.E. Training-Ready to Advance Development of Exports: A Business Export Readiness Model;

Port of Clarkston – $100,000 – Snake River Boat Builders Export Program;

Tacoma Community College – $298,857 – Technical Assistance with Global Exporting: Creation of a Professional-Level Instructional Certificate Program in Global Exporting;

University of Washington – $1,560,000 – Building Export Competence in Washington State Businesses;

Washington State University/Small Business Development Centers – $1,291,097 – SBDC New-to-Export Initiative;

Western Washington University – $585,726 – Jump Start Washington Exports (JustWaEx);

World Trade Center Tacoma/Tacoma Community College – $248,000 – Export China Initiative.

tags: Washington state, exports

NRF: National Retail Cargo Volumes Up 15% in 2010, Peak Month May Have Been July

Import cargo volumes at the nation's major retail container ports, which suffered through historic downturns last year, are expected to increase by 15 percent in 2010, according to a National Retail Federation report released Thursday.

“We aren’t back to where we were two years ago and consumers aren’t convinced that the recession is over quite yet, but 2010 is clearly going to finish better than last year,” said NRF Vice President for Supply Chain and Customs Policy Jonathan Gold in the trade group's monthly Global Port Tracker report. “In the meantime, retailers are monitoring demand very closely and hoping to see increases in employment and other areas that will boost consumer confidence. Cargo numbers this summer are showing unusually high percentage increases, but that appears to be an indication of shortages in shipping capacity earlier in the year rather than sales expectations.”

Compiled in conjunction with consulting and research firm Hackett Associates, the NRF monthly report also predicted that based on summer container volumes the traditional September/October peak shipping season could already be in full swing several months early.

“There are indications that the shipping season may have peaked earlier than normal as the rush to re-stock inventories earlier in the year intersects with a combination of increased shipping capacity, consumer confidence levels not seen since August 2009 and the slowing growth of consumer spending,” said Hackett Associates founder Ben Hackett said. “The traditional peak season may be melting away.”

The large double-digit increases in June and July, said the report, appear to be the result of backlogs built up due to the lack of shipping capacity earlier in the year after ship owners took vessels out of service during the recession and were slow to return them as the economy began to pick up. With many retailers appearing to bring merchandise in early to avoid any further bottlenecks, July is likely to be the peak shipping month for 2010 rather than the traditional rush of holiday season merchandise in October.

The Global Port Tracker monthly report covers the U.S. ports of Long Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston and Savannah on the East Coast, and Houston on the Gulf Coast.

Crowley Takes Home Green Award From SoCal Ports

Crowley Maritime Corporation has been recognized by the ports of Long Beach and Los Angeles for the company's efforts to significantly reduce carbon emissions within the two Southern California ports.

Crowley officials were presented with the "Significant Early Action to Reduce Emissions Award" at the third annual San Pedro Bay Ports Clean Air Action Plan Air Quality luncheon held recently in Long Beach.

The Early Action Award is given to companies who have made great strides to reduce pollutant emissions at both ports. Nominations were reviewed by port officials, as well as representatives from several governmental agencies, including the South Coast Air Quality Management District, California Air Resources Board and the U.S. Environmental Protection Agency.

In naming the Jacksonville-based Crowley as this year's award winner, port officials cited the company's proactive initiative to conduct an extensive engine re-powering of its Harbor Class tugs that provide ship assist and tanker escort services in the Ports of Los Angeles and Long Beach.

"Over the past several years, the company has been involved in several emissions and energy-saving initiatives in this region, including the installation of shore-side power and four tug engine repowers," said Crowley's director of engineering Bill Metcalf, who accepted the award on behalf of the company. "Those initiatives will reduce carbon dioxide emissions by more than 486,180 pounds, particulate matter emissions by 3.24-tons and mono-nitrogen oxides by 109.52-tons this year alone."

The Crowley tugs Admiral, Leader, Scout and Master were reintroduced to the fleet earlier this year following the installation of Tier II compliant engines. The project was partially funded by the Port of Los Angeles Air Quality Mitigation Incentive Program. The Crowley upgrades were completed nearly three years ahead of a regulatory deadline mandating Tier II emissions compliance.

Crowley also began using a ship-to-shore power system last year for its Long Beach and Los Angeles tugboats. Previously, the tugs tied up at the dock needed to run their generators to provide electrical power. By pulling power from shore-side sources, the tug generators could be shut off while at dock, significantly reducing diesel emissions.

Long Beach Approves $1.1B Bridge Replacement

After more than a decade of planning, wishing and hoping, the governing board for the Port of Long Beach on Monday approved a $1.13 billion plan to replace the aging Gerald Desmond Bridge.

Described as one of the port-area's most critical infrastructure needs, the new bridge will be taller, wider and safer than the current bridge.

The 156-foot-tall Gerald Desmond Bridge, which is named after a former City official, links the port-area Terminal Island to Long Beach proper. The 40-year-old steel and concrete structure is a main egress point for trucks into the port. Upwards of 60,000 vehicles a day cross it's five-lane, 1,200-foot-long span over the port's main channel.

According to port officials, more than 15 percent of the nation's seaborne cargo moves over the bridge each year.

Port commissioners on Monday lauded the effort of port staff to get the project going before unanimously voting to approve the final environmental impact documents that were the last impediment to starting construction.

When opened in 1968, the Gerald Desmond Bridge was estimated to have a 50 year life span in terms of both capacity and engineering.

However, by the 1980s as containers volumes exploded at the port, and the adjacent Port of Los Angeles, the bridge became stretched well beyond its original capacity. It also began to deteriorate rapidly.

Concrete falls off the underside of the bridge at such a regular pace that port officials, first in 2001 and then again in 2004, were forced to install two nets, referred to by locals as a diaper, to catch the wayward missiles – some the size of baseballs.

In late-2003, the California Department of Transportation, or Caltrans, found the bridge to be in such poor shape that it rated the bridge in the agency's "to be replaced" category – the same rating given the Minneapolis roadway bridge which collapsed in 2007. Despite state and local officials’ claims the bridge remains safe for traffic, the Caltrans rating for the Gerald Desmond Bridge has fallen even further since 2003. A recent $1 million upgrade raised the Caltrans rating of the existing bridge's road deck from "critical condition" to "satisfactory," despite the ongoing issue of concrete falling from the underside.

The new bridge, which has yet to be given an official name though suggestions of keeping the same name have been floated, will be built just south of the current bridge. When the new bridge – which will feature a cable-stayed design – is completed, the old bridge will be demolished.

The new bridge would also feature three traffic lanes plus an emergency lane in both directions, compared to the two lanes in each direction on the existing bridge. The span of the new bridge would also offer a 200-foot mean high water level clearance underneath, as opposed to the 156-foot MHWL clearance of the existing bridge, to allow for the newest generation of cargo ships to pass underneath.

The replacement bridge will be funded by a combination of federal and state funds, with the port providing between 10 percent and 15 percent of the total cost in what port officials call "matching funds."

Of the total $1.13 billion in estimated costs for the replacement project, about $900 million from various sources have been earmarked, including: about $570 million from federal sources, $250 million in state funding, $29 million from Los Angeles County sources, and $55 million from port funds. According to port documents, just under $200 million in federal funds have yet to be identified.

Barring any legal actions against the project, preliminary work on the new bridge could begin within a few months, though an actual ground breaking on construction could be more than a year away. Construction is expected to take at least six years.