Transcript Document

“Congestion Challenges: Are
We Doing Enough?”
International Cargo Handling Coordination
Association (ICHCA) Conference
Richard D. Steinke
Executive Director, Port of Long Beach
Shaping a Vibrant Community
Business, Environmental and Community
friendly Port of Long Beach
The Port of Long Beach
Port of
Long
Beach
Who We Are
• Port opened in
1911
• 2nd busiest
U.S. seaport
• 16th busiest in
the world
International Trade
• More than $140 billion
a year in cargo
shipped through L.B.
• Leading imports
include computers,
autos, clothing, toys,
shoes, handbags,
furniture
• Leading exports
include raw materials
such as petroleum
coke, waste paper,
plastics, chemicals
Infrastructure Challenges
•Trade may triple or
quadruple in the next
two decades
•Goods movement is
dependent on
infrastructure …
particularly in a Just-InTime environment.
•Demand exceeding
available capacity
causes delays
Why Should We Care About Congestion
• Delays increase costs and negatively
impact the environment and the
economy:
–
–
–
–
–
–
Missed cutoff times.
Additional inventory/fleet size required.
Staffing is not optimized if freight is delayed.
Congestion causes more emissions.
Community opposition to projects stiffens.
Adverse economic impact, nationwide.
Trade Impact Through POLB/POLA
Northwest
Trade value: $3.2B
Jobs: 39,900
Great Plains
Trade value: $19.3B Great Lakes
Jobs: 243,200 Trade value: $53.7B
Jobs: 681,800
Atlantic Seaboard
Trade value: $25.9B
Jobs: 275,300
Southwest
Trade value: $82.0B
Jobs: 1,114,700
South Central
Trade value: $32.5B
Jobs: 435,700
Source: BST Associates, 2007
Southeast
Trade value: $37.7B
Jobs: 498,900
Total Impacts:
Trade: $256 billion
Jobs: 3.3 million
Containers at California Ports (Millions of TEUs)
9.5
Long Beach
8.5
Los Angeles
7.5
Oakland
6.5
5.5
4.5
3.5
2.5
1.5
06
20
04
20
02
20
00
20
98
19
96
19
94
19
92
19
90
19
88
19
86
19
19
84
0.5
Cargo Forecasts (millions of TEUs)
POLB/POLA
Oakland
2007
15.7
2.4
2010
19.7
2.7
2020
36.7
4.2
2030
42.7
6.5
Divert Cargo? Punta Colonet? Prince Rupert? Panama Canal?
Primary Gateway for Imports
“Regardless of efforts to develop
alternative West Coast gateways,
Los Angeles and Long Beach will
remain the primary entry points for
eastbound imports into the U.S.”
-- Waterfront Coalition white paper, 2005
Causes of Port Congestion 2004
• 24% increase from 2003 to 2004 in
POLB containers (2% at POLA)
• Rail labor & equipment shortages
– 68% increase from 2003 to 2004 in on-dock
rail at POLB. (10% at POLA)
• PMA under-estimated volume and
productivity growth
• Labor allocated to terminal & rail
operations before vessels.
Remedies to Port Congestion 2005
• PMA/ILWU added labor
– Added 5,000 casuals
– Promoted 1,750 casuals to registered status
– Improved forecast of labor needs.
• Technology Implementation
– Optical Character Recognition (OCR)
– Radio Frequency Identification (RFID)
– Faster Transactions
• Rail Improvements
– Added labor & equipment
– Increased On-Dock rail use (now 24% of total
throughput, up from 16% in 2003)
POLB Terminal Capacity
• Existing “footprint” allows
for a doubling of throughput
– Dependent upon
technology and business
practices changes
• “Right sizing” terminals
(e.g., Middle Harbor project)
• Sensitive to environmental
& community needs
POLB Terminal Productivity
TEUs
CY 2007
Actual
Demand
7,312,465
2020
Capacity
20,665,000 *
Gross Acres
1,314
1,882
TEUs/acre/yr
5,565
10,980
* Assumes 26,620 feet wharf length, 49 weekly services (out of 108
for San Pedro Bay), 1,326 net acres, 33/hr crane productivity, no
constraints re: channel depth, bridge height or # of cranes.
Highway and Rail Infrastructure Projects
• Alameda Corridor (completed)
• PierPass (Implemented)
• Gerald Desmond Bridge
Replacement
• I-110 Connectors
• SR-47 Expressway
• On-Dock Rail Improvements
• I-710 Corridor Improvements
Alameda Corridor Freight Railway
• 22-Mile 40 m.p.h.
Rail Corridor
• Consolidates Four
Branch Lines
(10 m.p.h.)
• Reduces Conflicts at
200 Grade Crossings
• 10-Mile Trench
• $2.4 billion
• Completed in 2002
PierPASS Off-Peak Truck Gates
Week
Peak % Peak
OffEnding trucks
Peak
7/24/05 64,794
85% 11,294
2/10/08 46,942
61%
29,437
% OffPeak
15%
Total
76,088
39%
76,379
Peak = Weekdays 8:00 a.m. to 6:00 p.m.
Source: Port of Long Beach
Gerald Desmond Bridge
• Insufficient capacity
•Existing five lanes
•New bridge – six lanes
with shoulders
• Insufficient vertical
clearance
•Existing: 156 feet
•New bridge: 200 feet
• Estimated cost: $851
million
Main Roadway into Port
Interstate (710) freeway under congested conditions and
during 2002 shut down of West Coast ports.
Lockout disrupted $6.28 billion in trade at POLA/POLB
I-710 Corridor Improvements
• EIR/EIS and preliminary engineering
underway
• Advanced container movement
technologies
• I-710 improvement concepts include:
• 10 mixed flow lanes (5 in each direction)
• 4 exclusive truck lanes (2 in each
direction)
• Minimize residential displacement
Economy, Environment, Security Impacted
• Congestion, delays,
accidents and
transportation costs
are increasing.
• Goods movement
facilities have not
kept up with growth.
• Communities calling
for slow or no
growth.
Funding Constraints
• Limitations of existing grant & loan programs
– Federal transportation reauthorization in 2009
– State funds including Proposition 1B general
obligation bonds
– County local funds
– Port funds
• Also required: user fees for specific projects -with firewalls, sunset provisions, etc.; i.e.,
Public-Private Partnerships
Federal SAFETEA-LU: Not Enough
• Gerald Desmond Bridge
– $100 million
• I-710 Freeway
– $9.5 million
– $10 million SR-47 design
• Port of L.A.
– VT Bridge study plus I-110/SR
47/Harbor Blvd. Interchange:
$5.6 million
State Transportation Bonds Include:
• $2 billion for trade corridors
infrastructure
• $1 billion for trade-related
emissions reductions
• $100 million for port security
Project-Specific Fees
• Alameda Corridor (pays debt service
on revenue bonds)
– $18.67/loaded TEU
– $4.73/empty TEU
– $9.45/other rail car
• Clean trucks fee
– $35/loaded TEU (starting October 1, 2008)
– on dock rail exempt
• Infrastructure cargo fee for port area
highway and railroad projects
– $15/loaded TEU (starting January 1, 2009)
Public-Private Partnerships
• Consensus on what to build, funding
shares, method of payment (industry buyin essential)
• Legal authority
• Stable revenue stream
• Funding firewalls and sunset clauses
• Appropriate allocation of risk
• Cost and schedule control
• Clear decision making authority
Summary and Conclusions
• Terminal and highway/rail projects must
advance in lockstep with Clean Air Action Plan
(CAAP).
• Terminal productivity must increase if
capacity forecasts are to be realized.
• Federal transportation reauthorization in 2009
must provide additional funding for freight.
• Timely delivery of state Prop. 1B projects.
• Port infrastructure cargo fee and clean truck
fees must be implemented.
Thank You