By Mark Edward Nero
New cargo business could be coming to the Port of Long Beach’s largest terminal soon after the port’s harbor board approved an agreement to replace a vessel operator that declared bankruptcy four months ago.
On Dec. 22, the Long Beach Board of Harbor Commissioners okayed the move by a subsidiary of vessel operator Mediterranean Shipping Co. to take over sole control of the long-term lease of the port’s 381-acre Pier T container terminal.
MSC previously held a minority stake in the lease for Pier T, which is the terminal where over a quarter of the port’s container cargo is moved.
The port says the new agreement with MSC subsidiary Terminal Investment Ltd. (TIL) also guarantees the accelerated installation of ship-to-shore cranes capable of handling the world’s biggest container ships.
TIL takes control of Pier T from Hanjin Shipping, the South Korean ocean carrier that declared bankruptcy on Aug. 31. In 2015, Hanjin accounted for about 12 percent of the containers that moved through Long Beach.
The deal comes at a crucial time, Harbor Commission President Lori Ann Guzmán said.
“With all of the changes that have taken place in the shipping industry in recent years, certainty is very important,” she remarked. “Although we regret the loss of a long-term partner in Hanjin Shipping, we look forward to the opportunities that Terminal Investment Limited, Mediterranean Shipping Company, Hyundai Merchant Marine and their ‘2M Alliance’ partners will bring to Long Beach.”
Earlier this month, Terminal Investment Limited announced that it had signed an agreement to purchase Hanjin Shipping’s stake in the terminal operator at Pier T.
The new pact also requires installation of two new cranes capable of handling container ships with capacities of 20,000 twenty-foot equivalent units within three years.
Tuesday, December 27, 2016
NW Seaport Alliance to Bid on Navy Ship Berthing
By Mark Edward Nero
On Dec. 19, the Northwest Seaport Alliance held a special meeting to approve a plan under which the Alliance would join Foss Maritime in an effort to win a contract to berth the USNS Bob Hope at a North Harbor terminal. Should Foss and the NWSA be successful in winning the bid, the ship would berth at the Port of Seattle’s Terminal 5. The Navy plans to run the ship on shore power while at berth, according to the Alliance.
The 951-foot long USNS Bob Hope, which has a beam of 106 feet and a maximum draft of 34 feet and 10 inches, is the first ship in the US Navy's first class of large, medium-speed, roll-on/roll-off ships (LMSR), and is part of the Navy's Military Sealift Command (MSC).
The primary mission of such ships is to transport shore-based equipment and supplies in support of military and humanitarian operations. They participate in recovery efforts in the event of a widespread natural disaster.
The vessels are operated by 30 civilian mariners who work for a private company under contract to MSC, and up to 50 embarked military personnel who monitor and maintain the equipment being transported.
The ships are maintained in reduced operational status, which means they’re operationally ready in four days. The Seaport Alliance, which is the name of the maritime operating agreement between the Seattle and Tacoma seaports, has said that this type of interim use for Terminal 5 is part of a plan to diversify cargo and maximize terminal use.
A contract to berth the vessel could bring in about $500,000 annually, according to Alliance staff. But it would in no way, the Alliance has said, interfere with a current terminal modernization plan.
On Dec. 19, the Northwest Seaport Alliance held a special meeting to approve a plan under which the Alliance would join Foss Maritime in an effort to win a contract to berth the USNS Bob Hope at a North Harbor terminal. Should Foss and the NWSA be successful in winning the bid, the ship would berth at the Port of Seattle’s Terminal 5. The Navy plans to run the ship on shore power while at berth, according to the Alliance.
The 951-foot long USNS Bob Hope, which has a beam of 106 feet and a maximum draft of 34 feet and 10 inches, is the first ship in the US Navy's first class of large, medium-speed, roll-on/roll-off ships (LMSR), and is part of the Navy's Military Sealift Command (MSC).
The primary mission of such ships is to transport shore-based equipment and supplies in support of military and humanitarian operations. They participate in recovery efforts in the event of a widespread natural disaster.
The vessels are operated by 30 civilian mariners who work for a private company under contract to MSC, and up to 50 embarked military personnel who monitor and maintain the equipment being transported.
The ships are maintained in reduced operational status, which means they’re operationally ready in four days. The Seaport Alliance, which is the name of the maritime operating agreement between the Seattle and Tacoma seaports, has said that this type of interim use for Terminal 5 is part of a plan to diversify cargo and maximize terminal use.
A contract to berth the vessel could bring in about $500,000 annually, according to Alliance staff. But it would in no way, the Alliance has said, interfere with a current terminal modernization plan.
Oakland Monthly Container Volumes Up Slightly
By Mark Edward Nero
Although an 11.5 percent increase in full container imports was a boon for the Port of Oakland last month, it was offset by a nearly 24 percent drop in empty exports, resulting in just a 2.3 percent rise in overall cargo volumes compared to the same month last year.
Data shows that November’s 11.5 percent containerized export volume increase was the third straight month of double-digit growth and the 10th time exports have risen this year.
The port has said that exports are surging despite a strengthening dollar that makes American products more expensive overseas. Strong Asian demand for California farm products, wine and other beverages is spurring the rally, according to the port.
“If you listen to conventional wisdom, exports should be facing headwinds,” Maritime Director John Driscoll said. “But the clamor overseas for high-quality American commodities hasn’t peaked, so our volumes keep climbing.”
The port said it shipped 85,915 TEUs last month, which is its second-highest total of 2016, after October’s 89,400 units.
Through 11 months of this year Oakland export volume is up 10.3 percent, while containerized imports are up 4.5 percent and total loaded container volume has increased 7.4 percent.
Port data shows that exports have accounted for 52 percent of its loaded cargo volume in 2016, while imports account for the other 48 percent. The port’s complete 2016 TEU volumes data can be seen at http://www.portofoakland.com/port/seaport/facts-and-figures/
Although an 11.5 percent increase in full container imports was a boon for the Port of Oakland last month, it was offset by a nearly 24 percent drop in empty exports, resulting in just a 2.3 percent rise in overall cargo volumes compared to the same month last year.
Data shows that November’s 11.5 percent containerized export volume increase was the third straight month of double-digit growth and the 10th time exports have risen this year.
The port has said that exports are surging despite a strengthening dollar that makes American products more expensive overseas. Strong Asian demand for California farm products, wine and other beverages is spurring the rally, according to the port.
“If you listen to conventional wisdom, exports should be facing headwinds,” Maritime Director John Driscoll said. “But the clamor overseas for high-quality American commodities hasn’t peaked, so our volumes keep climbing.”
The port said it shipped 85,915 TEUs last month, which is its second-highest total of 2016, after October’s 89,400 units.
Through 11 months of this year Oakland export volume is up 10.3 percent, while containerized imports are up 4.5 percent and total loaded container volume has increased 7.4 percent.
Port data shows that exports have accounted for 52 percent of its loaded cargo volume in 2016, while imports account for the other 48 percent. The port’s complete 2016 TEU volumes data can be seen at http://www.portofoakland.com/port/seaport/facts-and-figures/
POLA Names New Deputy Police Chief
By Mark Edward Nero
The Port of Los Angeles has appointed Michael Graychik as its deputy chief of police. Graychik was sworn in to his new position at the Dec. 15 Los Angeles Board of Harbor Commissioners meeting.
In his new role, Graychik is to oversee emergency management, marine and patrol, and support service operations at the Los Angeles Port Police. He will also serve as a member of the Port Police executive team and report to Port Police Chief Tom Gazsi.
Graychik has more than 35 years of law enforcement experience, having started his career as an officer at Los Angeles World Airports. In 1986 he transferred to the Port of Los Angeles and has held numerous positions during his three decades of service at the port.
He fills the position that became vacant when Gazsi was promoted from deputy chief to Port Police Chief in December 2015. Gazsi’s promotion came as a result of then-Chief Ronald Boyd being indicted in April 2015 on federal tax evasion charges. Boyd pleaded guilty in February 2016.
The Port of Los Angeles has appointed Michael Graychik as its deputy chief of police. Graychik was sworn in to his new position at the Dec. 15 Los Angeles Board of Harbor Commissioners meeting.
In his new role, Graychik is to oversee emergency management, marine and patrol, and support service operations at the Los Angeles Port Police. He will also serve as a member of the Port Police executive team and report to Port Police Chief Tom Gazsi.
Graychik has more than 35 years of law enforcement experience, having started his career as an officer at Los Angeles World Airports. In 1986 he transferred to the Port of Los Angeles and has held numerous positions during his three decades of service at the port.
He fills the position that became vacant when Gazsi was promoted from deputy chief to Port Police Chief in December 2015. Gazsi’s promotion came as a result of then-Chief Ronald Boyd being indicted in April 2015 on federal tax evasion charges. Boyd pleaded guilty in February 2016.
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.
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.
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
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
