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.”

West Sacramento Port Seeks Business Partners

The Port of West Sacramento, which has been operated by the City of West Sacramento since 2006, says it’s looking to transition to a landlord operating model that reduces cargo facility operating costs and cargo-market risks and increases the value of underused facilities and properties.

In a Request for Interest (RFI) released Feb. 1, the port revealed it’s looking to identify potential business partners to lease or operate the port’s cargo facilities and to lease, purchase or develop port-owned real estate.

The RFI, which can be found at portofwestsac.com, was released as part of a new business plan being implemented by the port.

“We’re looking for ways to ensure that the port is financially self-sufficient while remaining a long-term economic and community asset to the City of West Sacramento and greater Sacramento region,” said Port Commission Chair Mike McGowan.

Statements of interest are due by 5 pm local time on Fri., Feb. 15. They can be mailed to Port of West Sacramento, 1110 West Capitol Avenue, West Sacramento, California 95691 USA, Attention: Rick Toft.

Email responses are encouraged by the port however, and can be sent to rickt@cityofwestsacramento.org.

All responses are to be evaluated by port and City of West Sacramento staff and the Port Commission. Potential next steps include moving ahead with a formal request for proposal process, entering directly into negotiations with one or more of the potential partners, or taking no further action.

The inland Port of West Sacramento is located within the City of West Sacramento, directly across the Sacramento River from downtown Sacramento and 79 nautical miles from San Francisco. The port opened in 1963.

Additional information on the RFI can be obtained by contacting Rick Toft at (916) 617-4565 or rickt@cityofwestsacramento.org.

Murray Morgan Bridge Reopens

After undergoing a $57 million renovation, the Murray Morgan Bridge, which connects the Port of Tacoma with the city’s downtown, has fully reopened, just in time for its 100th anniversary.

The drawbridge, which originally opened in February 1913, was reopened to vehicular traffic at noon on Feb. 1. It had closed in October 2007 after state inspectors found rusted steel and failing machinery they deemed unsafe and declared it too dangerous for traffic.

Since then, a $57 million restoration was paid for by a combination of state and federal funds. Among the improvements is the addition of new motors, cables and controls to the apparatus that raises the center section to allow tall boats into and out of the Thea Foss Waterway.

Additionally, the bridge itself has been narrowed from four lanes to two and two of the former lanes have been converted to bicycle and pedestrian paths. An under-construction elevator is expected to provide access from Dock Street below to the bridge.

Environmental improvements include a new drainage system that routes runoff from the bridge to a rain garden on the Tideflat side of the structure.

A formal dedication ceremony is scheduled for Feb. 15; work on the bridge is expected to continue through February.

LA Port Subject of New Children’s Book

The Port of Los Angeles’ environmental programs and green technologies are the focus of a new children’s book, “A Cleaner Port. A Brighter Future. The Greening of the Port of Los Angeles.”

The book, written by Robyn C. Friend and Judith Love Cohen, is the sixth in a series of environmental children’s books dedicated to teaching youth about the importance of environmental conservation and preservation. It provides elementary school-aged readers an easy-to-follow story about ports and their purposes.

In the book, the authors explain how the Port of Los Angeles is using cleaner, greener ways to move cargo. Readers can learn about the Port of Los Angeles’ environmental efforts – from cleaner trucks to shoreside power for idling ships to trash skimmer boats – and how those efforts help reduce air and water pollution.

The book features colorful, original illustrations, lesson plans, fun facts and a glossary of environmental and port terms.

“It’s never too early to start educating children about the importance of preserving the environment,” port Executive Director Geraldine Knatz said. “Our story is an example of how industrial operations can transform in the modern era.”

The authors and illustrator David Katz will be on hand for an open-to-the-public book signing at Williams Bookstore in San Pedro from 5 pm to 8 pm Thurs., Feb. 7.

“A Cleaner Port. A Brighter Future. The Greening of the Port of Los Angeles.” is available for purchase through Barnes & Noble and Amazon.com, and the port is also donating copies to local schools and libraries.

Lack of Transport Infrastructure a Growth Obstacle: Report

Deficiency in transport and communications infrastructure is one of several supply chain barriers that act as obstacles for speeding up global economic growth, according to a recently released report by the World Economic Forum.

The report, entitled “Enabling Trade: Valuing Growth Opportunities,” was prepared by the World Economic Forum in collaboration with Bain & Co. a Boston-based global management consulting firm.

The report was made public Jan. 23 at the opening of the 11th annual World Economic Forum in Davos, Switzerland. The forum is a gathering of the world’s political and business leadership.

The report highlights a variety of identified supply chain barriers – ranging from poor physical and technical infrastructure to border controls, customs paperwork, lack of coordination between national agencies and regulations favoring local products over imported ones.

“This report makes clear that transportation infrastructure investment can have a very positive and immediate impact on trade growth and economic and social development, particularly in emerging market areas,” noted APM Terminals CEO Kim Fejfer, who took part in the forum, which was held Jan. 23 to 27.

AP Moller-Maersk, the parent company of APM Terminals, is an active participant in the World Economic Forum group that prepared the report.

The WEF study estimates that global trade would increase by an estimated $1.6 trillion, or 15 percent, while global GDP would rise by $2.6 trillion, or roughly five percent, if every country improved two key supply chain barriers just halfway to the world’s best practices: improving inadequate infrastructure and adopting modern communications technology such as electronic freight releases, and by streamlining and simplifying border administration procedures.

“Addressing infrastructure requirements to facilitate global market access is a relatively straightforward process when strong local partnerships can be forged,” Fejfer said. “We share a common interest in creating modern port and inland transportation facilities so local communities can benefit from trade-driven development.”

The study’s authors examined the effects of trade barriers by contacting about 90 internationally active companies representing combined annual revenue of $800 billion. Of these companies, 35 provided input, with 21 of these participating in preparing 18 case studies representative of major industries, barriers and supply chain functions.

The telecom and transport infrastructure components were defined by the report’s authors as the availability and quality of transport infrastructure; the availability and quality of transport services; and the availability and use of information and communication technologies.

Increased operational costs, increased demands on investment and working capital, and cargo delivery delays were found to be the consequences of inadequate infrastructure, discouraging individual company trade growth and participation.

The report’s executive summary can be read or downloaded at:

http://www3.weforum.org/docs/WEF_SCT_EnablingTrade_ExecutiveSummary_2013.pdf. The full report is at:

http://www3.weforum.org/docs/WEF_SCT_EnablingTrade_Report_2013.pdf.