Tuesday, December 20, 2016

Port of LA Receives Clean Terminal Equipment Grants

By Mark Edward Nero

The Port of Los Angeles said Dec. 16 that it has secured a $5.8 million state grant to purchase and test a new fleet of 25 zero and near-zero emission yard tractors at the Everport marine container terminal.

The grant is also expected to fund a companion project to equip 100 more drayage trucks with smart technology aimed at reducing emissions by streamlining their time on the road and improving the flow of containers to and from the port complex.

The POLA was awarded the grant by the California Energy Commission, which supports freight transportation projects at California seaports under its Alternative and Renewable Fuel and Vehicle Technology Program, whose purpose is to advance commercialization of clean fuels and technologies that cut greenhouse gas (GHG) emissions, reduce petroleum use and improve the health and quality of life of communities disproportionately burdened by environmental pollution.

The port is partnering with Everport Terminal Services to test 25 off-road tractors powered by either electricity or liquefied natural gas by incorporating them into the daily operations of the 205-acre marine container terminal.

Over the next three years, the port says it and its partners will demonstrate the new yard equipment and smart technology and track their operational efficiency, viability, reduction of GHG emissions and other key pollutants, and fuel savings.

Results are expected in 2018.

Other partners in the zero and near-zero-emissions yard tractor project, which will receive more than $4.8 million of the CEC funding, are:

• BYD Motors Inc., which is providing four new electrified yard tractors and retrofitting an existing electric tractor built by Balqon Corp.;

• Capacity Trucks, providing 20 near-zero emission yard tractors with LNG-powered engines manufactured by Cummins Westport Inc.; • Harbor Diesel and Equipment Inc., an authorized Capacity Trucks dealer, and.;

• Clean Energy Fuels Corp., providing renewable natural gas and mobile fueling equipment.

The remainder of the grant, almost $1 million, is to support ongoing large-scale testing of smart technology known as FRATIS, the port says.

FRATIS is a sophisticated intelligent transportation system that analyzes data from multiple sources to come up with the most efficient schedule, route and container information for drivers, dispatchers and cargo owners.

Specific technologies that are being tested include: real-time traffic information being obtained from the California Department of Transportation and the Los Angeles County Metropolitan Transportation Authority; automated ETA messaging to the terminals one day in advance of truck arrival; and deployment of an algorithm which would optimize drayage throughout the day and region.

The system is designed to reduce travel times inside and outside the terminals, which in turn would reduce congestion, emissions and fuel consumption. The demonstration phase of the existing project involves 200 trucks and several trucking companies, and is expected to commence in early 2017.

Seattle-Tacoma Ports Record Biggest November Volumes in 5 Years

By Mark Edward Nero

Import and export volumes at the Seattle-Tacoma port complex last month were the strongest for a November in the last five years, according to newly-released data.

Full imports and exports for November reflect a continued solid peak season at the Northwest Seaport Alliance, with 28 percent and 23 percent increases, respectively, compared with November 2015, according to data.

The Northwest Seaport Alliance, which is the name for the joint operating agreement between the Seattle and Tacoma ports, said the ports had four more international vessel calls in November than it did in October, and three more than it did last November.

The top import commodities moving through the gateway include furniture, apparel, toys/games and footwear, while the top export commodities include hay, forest products, apples and potatoes.

Year to date, laden imports are up six percent to 1,268,049 TEUs, and full exports increased 14 percent to 897,785 TEUs. The year’s total container volumes are up almost two percent through November to 3,299,538 TEUs.

Year to date domestic volumes however, have been down as Alaska struggles with a decrease in oil- and gas-related project activity due to low commodity prices. November’s overall domestic volume showed an increase due to additional sailing, compared to the prior year.

In other cargo news: Seattle-Tacoma breakbulk cargo is down 24 percent year to date to 165,836 metric tons as the global downturn in agricultural, mining and construction equipment, and a strong US dollar impact volumes.

Also, log exports declined 36 percent year to date to 150,962 metric tons due to decreased demand in China and competition from New Zealand. Additionally, vehicle shipping fell 10 percent to 151,985 units for the month because of what the Seaport Alliance said were production issues as well as supply chain shifts.

POLB Releases On-Dock Rail Proposal Draft Report

By Mark Edward Nero

On Dec. 15, the Port of Long Beach released a draft environmental study on a proposal to redevelop a rail yard to allow for the assembly of longer trains within the harbor. The study analyzes the impacts of the proposed development and mitigation measures that would address those impacts.

The proposed Pier B On-Dock Rail Support Facility would shift more cargo at Long Beach to on-dock rail, where containers are placed directly on trains at marine terminals. The port says no trucks would visit the facility.

The rail yard would be operated by Pacific Harbor Line, a switching railroad that has converted its fleet to clean diesel locomotives that reduce air pollution and save fuel.

“The proposed development would enhance the efficiency of goods movement at the Port of Long Beach,” Interim POLB CEO Duane Kenagy said. “This project is vital to our efforts to modernize the port and continue to lead the way in environmental sustainability.” The port’s Draft Environmental Impact Report on the on-dock rail facility is available at www.polb.com/ceqa

Comments on the DEIR are being accepted through Feb. 13, 2017, and can be mailed to Heather Tomley, Director of Environmental Planning, 4801 Airport Plaza Drive, Long Beach, CA 90815 or emailed to heather.tomley@polb.com

Two public hearings will be held in January to offer the public an opportunity to comment in person on the document:

6 p.m. Wednesday, Jan. 11, at Silverado Park, 1545 W. 31st St., Long Beach, CA 90810; and 6 p.m. Wednesday, Jan. 18, at the Port of Long Beach Interim Administrative Offices, 4801 Airport Plaza Drive, Long Beach, CA 90815.

More information at the proposed project and draft EIR is available at www.polb.com/PierB

Port of Oakland Exec to Head Bay Planning Coalition

By Mark Edward Nero

A Port of Oakland planning and environmental expert has been chosen as the next president of the Bay Planning Coalition. The trade group’s 36-member Board of Directors selected Richard Sinkoff to a two-year term in early December.

Sinkoff is Director of Environmental Programs and Planning at the Port of Oakland. In his new role with the Planning Coalition, he’ll lead a 200-member alliance that’s considered the voice of the working waterfront on San Francisco Bay.

It includes port authorities, dredgers, private industry and public agencies and supports policies that link Bay Area economic growth to maritime activity, goods movement and environmental protection.

“San Francisco Bay is at the heart of our economy, our environment and our region’s exceptional quality of life,” Sinkoff said in a statement. “I’m honored to lead an industrial organization that keeps all of those responsibilities in sharp perspective.”

At the port, Sinkoff manages a team responsible for implementing policies that make trade and transportation compatible with environmental sustainability. In October, he announced findings showing that the Port of Oakland has reduced diesel emissions 76 percent since 2005.

Friday, December 16, 2016

Maritime Commission Approves Major New Carrier Alliance

By Mark Edward Nero

On Dec. 14, the Federal Maritime Commission announced that it has concluded its review of the proposed “THE Alliance” and is allowing it to go into effect as of Dec. 19.

The so-called “THE Alliance” is comprised of five different container shipping companies: Hapag-Lloyd; K Line; MOL; NYK; and Yang Ming. THE is an acronym for Transport High Efficiency.
Under the terms of the deal, “THE Alliance” members are permitted to share vessels, charter and exchange space on each other’s ships and enter cooperative working arrangements.

The scope of the agreement applies only to trade lanes between the United States and other nations. Cargo moved by carriers in “THE Alliance” that does not originate or terminate in the United States isn’t covered by this agreement.

Attorneys for “THE Alliance” submitted the application to establish the agreement to US authorities on Nov. 4, after which the Maritime Commission made no requests for additional information, thereby clearing the way for the agreement to come into force within the initial 45-day review period.
The Commission said its members’ vote to allow the agreement to become effective followed “a period of substantive and constructive discussion” with the parties.

“I am very cognizant of the concerns industry stakeholders had regarding provisions in this agreement, particularly those related to information sharing and joint procurement,” Federal Maritime Commission Chairman Mario Cordero said. “This office will continue to carefully focus on the impacts of the carrier alliance restructuring that is taking place in the shipping industry.”

POLB Monthly Container Volumes Drop Steeply

By Mark Edward Nero

The Port of Long Beach says shifting alliance routes and the Hanjin bankruptcy continued to affect its container volumes last month, resulting in container traffic being 13.8 percent lower than during the same month last year.

A total of 534,308 TEUs moved through the harbor last month. Of that amount, 270,610 were imports, which was a drop of 11.8 percent from November 2015’s imports. Exports declined 3.1 percent to 120,897 TEUs last month, while empty TEUs numbered 142,801, 24.2 percent off.

Through the first 11 months of 2016, Long Beach has moved 6.22 million TEUs, which is 5.6 percent behind the same point last year and far behind the adjoining Port of Los Angeles’ 8.0 million TEUs during the same 11-month time period.

The late-2016 numbers are a sharp contrast from when the port experienced its second-best November ever in 2015. Last November was part of a six-month run of gains, at the end of which Long Beach ended the year above seven million TEUs for only the third time in its history.

This year, however, the port has faced challenges as ocean carriers have merged, reorganized into new alliances and realigned routes. Additionally, a major customer, Hanjin Shipping, declared bankruptcy at the end of August.

Hanjin represented 12.3 percent of Long Beach’s containerized volume and held a 54 percent stake in Total Terminals International, the operator of Pier T, one of the port’s largest, most modern terminals.

Despite the declines, however, Long Beach remains the second-busiest North American seaport, behind the Port of LA. The latest monthly Long Beach cargo numbers and more detailed cargo numbers are available at www.polb.com/stats.

Bollinger Delivers Alaska Cutter to USCG

By Mark Edward Nero

Bollinger Shipyards has delivered the USCGC John McCormick, a Fast Response Cutter (FRC) to the US Coast Guard. The FRC will be stationed in the 17th Coast Guard District in Ketchikan, Alaska and will assist in defending US interests in the Alaskan maritime region.

The 154-foot patrol craft is the 21st vessel in the Coast Guard’s Sentinel-class FRC program, and the first FRC to be stationed at Ketchikan, Alaska. Previous cutters have been stationed in the 7th Coast Guard District in Florida or San Juan, Puerto Rico, and two have been stationed in the 5th Coast Guard District in Cape May, NJ.

To build the John McCormick, Louisiana-based Bollinger used an in-service parent craft design based on the Damen Stan Patrol Boat 4708. It has a flank speed of 28 knots, state of the art command, control, communications and computer technology and a stern launch system for the vessel’s 26-foot cutter boat.

The vessel is named after Coast Guard hero John McCormick, who was awarded the Gold Lifesaving Medal on November 7, 1938 for his heroic action in affecting the rescue of Surfman Richard O. Bracken in treacherous conditions in the outer breaks on Clatsop Spit, near the mouth of the Columbia River.

The Coast Guard took delivery on Dec. 13 in Key West, Florida and is scheduled to commission the vessel in Ketchikan, Alaska in April, 2017.

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