Growth of California Ports: Growth of California Ports: Opportunities and ChallengesOpportunities and Challenges

Presented by:Presented by:

California Marine and Intermodal California Marine and Intermodal Transportation System Advisory Transportation System Advisory

Council (CALMITSAC)Council (CALMITSAC)

Overview of CALMITSACOverview of CALMITSAC

Regional affiliate of the national MTS advisory Regional affiliate of the national MTS advisory council established by Secretary Mineta.council established by Secretary Mineta.

Over 30 members representing industry, Over 30 members representing industry, government, and academia.government, and academia.

Mission: Mission: To foster development of a Marine To foster development of a Marine Transportation System in California that is Transportation System in California that is safe, secure, efficient, environmentally sound, safe, secure, efficient, environmentally sound, and capable of expanding to meet the and capable of expanding to meet the demands of the global economy. demands of the global economy.

CALMITSAC MembershipCALMITSAC MembershipU.S. Department of TransportationU.S. Department of TransportationU.S. Environmental Protection AgencyU.S. Environmental Protection AgencyCalifornia Senate Subcommittee on California Ports and Goods MovementCalifornia Senate Subcommittee on California Ports and Goods MovementCaltransCaltransCalifornia Business, Transportation and Housing AgencyCalifornia Business, Transportation and Housing AgencyCalifornia Environmental Protection AgencyCalifornia Environmental Protection AgencyCalifornia State Lands CommissionCalifornia State Lands CommissionCalifornia Highway Patrol California Highway Patrol California State University, Long Beach - Center for International Trade and California State University, Long Beach - Center for International Trade and TransportationTransportationCalifornia Manufacturers and Technology AssociationCalifornia Manufacturers and Technology AssociationCalifornia Chamber of CommerceCalifornia Chamber of CommerceInfrastructure Delivery CouncilInfrastructure Delivery CouncilConsulting Engineers and Land Surveyors of CaliforniaConsulting Engineers and Land Surveyors of CaliforniaOcean Carriers Equipment Management AssociationOcean Carriers Equipment Management AssociationCalifornia Short Line Railroad AssociationCalifornia Short Line Railroad Association

Membership (continued)Membership (continued)California Maritime Academy California Maritime Academy California Association of Port Authorities California Association of Port Authorities Pacific Merchant Shipping AssociationPacific Merchant Shipping AssociationPacific Maritime AssociationPacific Maritime AssociationCalifornia Maritime Infrastructure AuthorityCalifornia Maritime Infrastructure AuthorityMarine Exchange of Southern CaliforniaMarine Exchange of Southern CaliforniaMarine Exchange San Francisco Bay RegionMarine Exchange San Francisco Bay RegionMarine Transportation System National Advisory CouncilMarine Transportation System National Advisory CouncilMETRANS Transportation Center, USC-CSULBMETRANS Transportation Center, USC-CSULBSouthern California Marine Transportation System National Advisory Southern California Marine Transportation System National Advisory CouncilCouncilCalifornia Marine Affairs and Navigation ConferenceCalifornia Marine Affairs and Navigation ConferenceInternational Longshore and Warehouse UnionInternational Longshore and Warehouse UnionThe Waterfront CoalitionThe Waterfront CoalitionNational Industrial Transportation LeagueNational Industrial Transportation LeagueThe Burlington Northern and Santa Fe Railway Co. The Burlington Northern and Santa Fe Railway Co. Union Pacific RailroadUnion Pacific RailroadPacific Coast CouncilPacific Coast Council

AB 2043 (Lowenthal) AB 2043 (Lowenthal) Requested CALMITSAC to:Requested CALMITSAC to:

Submit a report to the Legislature, Submit a report to the Legislature, including recommendations on including recommendations on methods to better manage the methods to better manage the growth of ports and address the growth of ports and address the environmental impacts of moving environmental impacts of moving goods through those ports.goods through those ports.

CALMITSAC Interim Report TopicsCALMITSAC Interim Report Topics

Public health issuesPublic health issues

Port infrastructurePort infrastructure

Environmental enhancements Environmental enhancements

Port and maritime securityPort and maritime security

FundingFunding

Project delivery Project delivery

Economic effects of goods movementEconomic effects of goods movement

Role of California universitiesRole of California universities

Economic Imperative: Improving Job Economic Imperative: Improving Job OpportunitiesOpportunities

High wages for California workers ($45K High wages for California workers ($45K per year average)per year average)

Trade jobs – one of every seven in Trade jobs – one of every seven in CaliforniaCalifornia

California Trade – 40% of the national totalCalifornia Trade – 40% of the national total

2002 trade disruption cost 2002 trade disruption cost

$7+ billion nationally$7+ billion nationally

Atlantic SeaboardTrade value: $34.3B

Jobs: 265,600

SouthwestTrade value: $97.9B

Jobs: 1,003,600

South CentralTrade value: $12.1B

Jobs: 141,000

SoutheastTrade value: $15.9B

Jobs: 191,500

Great LakesTrade value: $25.0B

Jobs: 283,500

Great PlainsTrade value: $8.6B

Jobs: 111,300

NorthwestTrade value: $2.2B

Jobs: 24,000

Source: OnTrac Trade Impact Study © 2001 OnTrac All Rights Reserved.

Impact of International Trade Through California PortsImpact of International Trade Through California Ports

Public Health Imperative: Reducing Public Health Imperative: Reducing Port-Related Air PollutionPort-Related Air Pollution

Majority of emissions are from mobile Majority of emissions are from mobile sources, including ships. sources, including ships.

Goods movement is a key contributor to air Goods movement is a key contributor to air pollution and disease.pollution and disease.

Diesel PM: a toxic air contaminant Diesel PM: a toxic air contaminant

Without new control strategies,Without new control strategies,

more cargo means more more cargo means more

pollution. pollution.

Environmental Enhancements Environmental Enhancements

The Ports of Long Beach and Los Angeles The Ports of Long Beach and Los Angeles Clean Air Action PlanClean Air Action Plan

The Port of Oakland’s Vision 2000 Maritime The Port of Oakland’s Vision 2000 Maritime Development Program Development Program

The State Goods Movement Action Plan and The State Goods Movement Action Plan and the California Air Resources Board Emission the California Air Resources Board Emission Reduction PlanReduction Plan

Cleaner Fuel Options Being Pursued for Cleaner Fuel Options Being Pursued for Harbor Craft and Oceangoing Ships Harbor Craft and Oceangoing Ships

CARB Diesel:Harbor craft• ~10-25% PM Redn.• ~6% NOx Reduction• Greater use of add- on controls

Marine Distillate:Ships at Dockside (auxiliary engines)• ~60% PM Reduction• ~6-10% NOx Redn.• ~90% SOx Reduction

Lower Sulfur Marine Bunker Fuel (SECA): Oceangoing ships at sea (main engines)• ~20% PM Reduction• ~40% SOx Reduction

Pursue a Short Sea Shipping Pursue a Short Sea Shipping System on the West CoastSystem on the West Coast

Ships and barges are Ships and barges are roll-on roll-off. Any trailer roll-on roll-off. Any trailer can be diverted.can be diverted.

Truck trips can be Truck trips can be eliminated between eliminated between Northern and Southern Northern and Southern California at start-up. California at start-up.

Emission reductionsEmission reductions

The system will use The system will use clean diesel or LNG in clean diesel or LNG in the trucks, ships, and the trucks, ships, and tugs tugs

Reduces congestion, Reduces congestion, increases safety, increases safety, reduces truck accidents, reduces truck accidents, and saves lives. and saves lives.

Northern Barge Feeder Operation

•Improved operations in the Port of Oakland

•Reduced Emissions

•Removes truck trips between service ports

Southern Barge Feeder Operation•Improved operations in the Ports of Los Angeles and Long Beach

•Reduced Emissions

•Removes truck trips between service ports

Cleaner Trucks and Cleaner Trucks and Reduced Truck TripsReduced Truck Trips

Increase turnover of truck fleetIncrease turnover of truck fleet

Clean fuelsClean fuels

On-dock and near-dock railOn-dock and near-dock rail

Virtual container yardVirtual container yard

Shuttle trainsShuttle trains

Extended gate hoursExtended gate hours

Cargo Growth and Competition from Cargo Growth and Competition from Other West Coast GatewaysOther West Coast Gateways

Ports of Los Angeles, Long Beach, Ports of Los Angeles, Long Beach, and Oaklandand Oakland

Ports of Seattle, Tacoma, and PortlandPorts of Seattle, Tacoma, and Portland

Ports of Mexico and Canada (e.g., Ports of Mexico and Canada (e.g., Punta Colonet, Prince Rupert)Punta Colonet, Prince Rupert)

The Panama CanalThe Panama Canal

Container Traffic at California Ports Container Traffic at California Ports 1984-2005 1984-2005 (Millions of TEUs)(Millions of TEUs)

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5 Long Beach

Los Angeles

Oakland

““Can’t divert our way out”Can’t divert our way out”Cargo Projections in Millions of TEUsCargo Projections in Millions of TEUs

San Pedro San Pedro Bay PortsBay Ports

Port of Port of OaklandOakland

2005 actual2005 actual 14.214.2 2.22.2

20102010 19.719.7 2.72.7

20202020 36.036.0 4.24.2

20302030 42.542.5 6.56.5

Waterfront Coalition Waterfront Coalition White Paper May 2005White Paper May 2005

““Regardless of efforts to develop Regardless of efforts to develop alternative West Coast gateways, alternative West Coast gateways, Los Angeles and Long Beach will Los Angeles and Long Beach will remain the primary entry points for remain the primary entry points for eastbound imports into the U.S.” eastbound imports into the U.S.”

Major Port Infrastructure With Major Port Infrastructure With Underutilized CapacityUnderutilized Capacity

  

11 ports statewide (Major stresses at 3 largest 11 ports statewide (Major stresses at 3 largest ports: Oakland, LA, Long Beach)ports: Oakland, LA, Long Beach)

Statewide perspective is essential Statewide perspective is essential 

Putting interlocking pieces of Putting interlocking pieces of the puzzle together in one planthe puzzle together in one plan

On- and Off-Port On- and Off-Port Infrastructure Improvements:Infrastructure Improvements:

$17.7 billion in Needed Projects$17.7 billion in Needed Projects  

San Pedro Bay Ports AreaSan Pedro Bay Ports Area

Port of Oakland Area Port of Oakland Area

California’s Smaller PortsCalifornia’s Smaller Ports

Operational and Productivity Operational and Productivity EnhancementsEnhancements

Automatic tracking systems/RFID and Automatic tracking systems/RFID and GPS technologiesGPS technologies

Uniform measures of productivityUniform measures of productivity

Expand extended hours Expand extended hours

Chassis poolsChassis pools

Spread out vessel sailingsSpread out vessel sailings

Port and Maritime Security Port and Maritime Security Systems offer improved security:Systems offer improved security:

Perimeter securityPerimeter securitySurveillanceSurveillanceRadiation portalsRadiation portalsGamma ray scanning (VACIS)Gamma ray scanning (VACIS)

But:But:Shortage of federal fundingShortage of federal fundingLack of systems standardization and integration (e.g., Lack of systems standardization and integration (e.g., e-seals radio frequency)e-seals radio frequency)Need rapid implementation of Automated Secure Need rapid implementation of Automated Secure Vessel Tracking System (ASVTS)Vessel Tracking System (ASVTS)Need survey of vulnerabilitiesNeed survey of vulnerabilities

Funding LimitationsFunding LimitationsCrisisCrisis  

Highway gas taxHighway gas taxSAFETEA-LUSAFETEA-LUState diversion of transportation dollarsState diversion of transportation dollarsFederal non-responsivenessFederal non-responsiveness

OpportunityOpportunityState Strategic Growth Plan: General Obligation bonds for infrastructure and State Strategic Growth Plan: General Obligation bonds for infrastructure and environmentenvironmentCoalition Building: Public-Private PartnershipsCoalition Building: Public-Private Partnerships

– The Waterfront Coalition The Waterfront Coalition

– West Coast Corridor CoalitionWest Coast Corridor Coalition

    

SB 1266SB 1266

California Transportation Commission will California Transportation Commission will refer to State Goods Movement Action refer to State Goods Movement Action Plan, CALMITSAC report, and regional Plan, CALMITSAC report, and regional plans for advice about which projects to plans for advice about which projects to fund.fund.

Consensus and project readiness will be Consensus and project readiness will be critical.critical.

Project Delivery and Options for Project Delivery and Options for Project Ownership and Operation Project Ownership and Operation

Design-build procurementDesign-build procurement

Design sequencingDesign sequencing

Private ownership/leasesPrivate ownership/leases

The Role of Academic Institutions The Role of Academic Institutions in Statewide Goods Movement in Statewide Goods Movement

Acquire and distribute goods movement Acquire and distribute goods movement informationinformation

Train the leaders of the futureTrain the leaders of the future

Develop and apply new goods Develop and apply new goods movement, security and environmental movement, security and environmental technologytechnology

Mobilizing for ActionMobilizing for Action

Build consensus for a unified messageBuild consensus for a unified message

Involve key decision makers and allocate Involve key decision makers and allocate resourcesresources

Assess capacities and potential for expanded Assess capacities and potential for expanded utilization of existing facilitiesutilization of existing facilities

Harness new technologies from California, Harness new technologies from California, U.S., and abroadU.S., and abroad

Form public-private partnershipsForm public-private partnerships

Timeline for CompletionTimeline for Completion

October 1, 2006: Updated Project ListingOctober 1, 2006: Updated Project Listing

December 1, 2006: Draft Final ReportDecember 1, 2006: Draft Final Report

February 1, 2007: Final ReportFebruary 1, 2007: Final Report

Committed Sponsors To DateCommitted Sponsors To Date

U.S. Maritime AdministrationU.S. Maritime AdministrationPacific Maritime AssociationPacific Maritime AssociationMarine Exchange of Southern CaliforniaMarine Exchange of Southern CaliforniaPort of Long BeachPort of Long BeachPort of Los AngelesPort of Los AngelesBNSF RailwayBNSF RailwayUnion Pacific Railroad Union Pacific Railroad Pacific Coast CouncilPacific Coast CouncilCalifornia Short Line Railroad AssociationCalifornia Short Line Railroad AssociationCalifornia Maritime AcademyCalifornia Maritime AcademyCalifornia State University, Long Beach – Center for California State University, Long Beach – Center for International Trade and TransportationInternational Trade and TransportationMETRANS Transportation Center, USC-CSULBMETRANS Transportation Center, USC-CSULB

Contact Information Contact Information

Gill Hicks: Gill Hicks: hicks@polb.comhicks@polb.com

Norman-Fassler Katz: Norman-Fassler Katz: norman.fassler-katz@sen.ca.govnorman.fassler-katz@sen.ca.gov

Bill Lyte: Bill Lyte: BillLyte@KennedyJenks.comBillLyte@KennedyJenks.com

Tom O’Brien: Tom O’Brien: tobrien@csulb.edutobrien@csulb.edu