April Industry Luncheon - CRSOA
Transcript of April Industry Luncheon - CRSOA
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CRSOA February Industry LuncheonFebruary 2018
Industry Luncheon
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TODAY’S PROGRAM
Featured Presentation: Port of Portland
Randy Fischer, Marine Marketing
Guest Speakers
USCG Industry Brief
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MEMBER OF THE MONTH
Kent CashPort of Vancouver USA
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Sector Columbia RiverMSU Portland, OregonUSCG Industry Brief
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Marine Business Future Plans
Randy FischerMarine Marketing
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We’ve Had Some Rough Roads…
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Terminal 6 Overall Business Strategy
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www.advisian.com
Port of Portland T-6 Business Strategy
Consultant Business Study Findings
Nolan Gimpel, Project Manager, Advisian
January 10, 2018
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Industry Leader Committee
Chair (1) – Linda Pearce, Port Commissioner
Ports (2) – Keith Leavitt, Port of Portland– Gary Neal, Port of Morrow
Exporters (3) – Stu Follen, SL Follen – Kit LaBelle, Hampton Lumber – Amer Badawi, Columbia Grain
Importers (4) – John Ducker, Columbia Sportswear – Patricia Villalonga (Bob Wilkerson),
The Kroger Group– Kevin Koronko, Dr Martens – Neil Salstrom, Toyo Tanso
Service Providers (7) – Del Allen, Allports– Brenda Barnes, George S. Bush – Jonathan Berndt (Brian Flood), Expeditors – Don Karls, Burlington Northern Santa Fe – Ken Norwood, Union Pacific – Greg Zanavich, Tidewater – Jana Jarvis, Oregon Trucking Associations
Labor (2) – Mike Stanton, ILWU Local 8– Bob Carroll (Diana Winther), IBEW Local
48 Carriers (2)
– Guy Stephenson, Westwood – Tom Yu, former Hanjin Shipping
Ex Officio (2): Sen. Bill Hansell and Rep. David Gomberg
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Task 1 – Industry Analysis• Carrier market in a state of flux• Excess capacity driving down rates• Ships increasing in size• Reduced competition in the market
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Task 4 – Operating Models
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Operating
Control
Ris
k/R
ewar
d Semi-Operation
Concession
Landlord
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Task 6 – Financial Analysis
Terminal 6 Volumes vs. Breakeven (thousands of vessel moves)
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Consultant Findings and Conclusions
• Port must focus on a variety of options for shippers at Terminal 6.• “Mixed-use” of the terminal will improve financial performance.
– But losses are likely unavoidable if box volumes remain low.• Container volume/scale the key to profitability.• Prices must be set at “sustainable” levels and match expense growth.
– Prices failed to keep pace with expenses from 2002 – 2009.• Productivity must meet or exceed coastwide standards.
– Especially important in low volume situations.
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Consultant Findings and Conclusions (continued)
• Recovery of weekly transpacific service is key to serving shippers.• Success is a high bar.• Alignment needed on many levels for success:
– Container volumes and pricing goals are met.– Productivity goals are met.– Alternative uses are achieved and they contribute to supporting the
overall Terminal 6 facility.– Container footprint and costs are reduced.– Regional shippers and others support the direct call.
• The reason to pursue this line of business is to fulfill the Port’s mission of providing access for regional importers and exporters.
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Auto Imports and Exports Auto
Imports
Intermodal Yard
Container Capabilities
Multi-Use Facility
Berth 601 Berth 603Berth 604
Berth 605
Berth 607
Port of Portland Terminal 6
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Intermodal Train Loading
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Containers for SWIRE Vessel Loading
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Trucks for SWIRE Vessel Loading
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Next Up -Terminal 2 • 52 Acres Overall• Covered storage (7 acres)• Open storage area (27.5 acres)• 8,800 feet of rail track• Low dock
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THANK YOU!
ANNUAL MEMBERSHIP MEETING IMMEDIATELY FOLLOWING THE INDUSTRY LUNCHEON
Columbia River Steamship Operators’ Association, Inc.200 SW Market Street, Suite 190
Portland, Oregon [email protected]
www.crsoa.net
Kate Mickelson | Executive [email protected] 503.505.3008
Hannah Milnes | Director of Member [email protected] 971.280.3905