Port of Los Angeles America’s Port 2013 Harbor Transportation Club June 20, 2013 Kathryn McDermott
Battle for Discretionary Cargo Prince Rupert Sea/Tac Eastern Canada NY/NJ OAK Norfolk LA/LB Savannah Jacksonville Depth 50’ or greater Mobile Houston Depth 45’ or less Lazaro Cardenas
Panama/ Suez Canals • Panama Canal • Opens 2015 • Tolls will increase – today $85/TEU, could be over $100/TEU after opening • Line haul cost savings will be the key • Who sees that savings? • Are East Coast Ports ready? • Suez Canal • Handle much larger ships • Going to USEC via stops in MED • Better cost utilization • However, need more ships in the rotation 4
So Wha hat Are We Doing ng To S St ay C Com pet it ive ve? 5
Capital I mprovement Program $450 $399.0 $400 $350 $305.0 Capital Expenditures $300 (in millions $) $236.0 $233.1 $250 $179.6 $200 $142.8 $150 $87.9 $96.0 $102.5 $96.6 $100 $50 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Estimated) (Proposed) Fiscal Year Actual Estimated Proposed
Key Upcoming Projects Cargo Terminals & Rail: 8 9 1. TRAPAC : backland and on-dock rail 2. Yang Ming : new wharf and additional rail 3. China Shipping : backland and wharf 1 2 extension 7 4. Evergreen : upgraded wharf 5 3 5. YTI : upgraded wharf and additional rail 6. APL : new wharf and backland 4 7. Ports America: short-term permit 8. I CTF: modernization 6 9. BNSF/ SCI G: new rail yard 10. Dredging: main channel dredged to -53’ Roadway I nfrastructure: 10 A. South Wilmington grade separation B. C Street interchange C. Vincent Thomas/Harbor Blvd interchange
Alternative Maritime Power • Providing ships with shore power • Program commenced at POLA in 2004 • 10 berths have infrastructure in place
Bigger Ships • LA/ LB & West Coast • Largest ship 13,000TEU • Avg. size from Asia at POLA is 7200TEU • Will see increase this year and in 2014 – around 10% • Newest Ships • Still going Asia to Europe • 18,000TEU will be loading cargo July 1, 2013! • New orders for 18,400TEU • Cascade effect • New markets 9
Customer I nitiatives • Requesting terminal expansion • Raising cranes • Alternative fuel yard equipment • Automation 10
Wha hat Are Our ur Adva vant nt ages?
Los Angeles Offers One of the Most Extensive Transportation Networks in the World LA/ LB ports are the • largest container-shipping facilities in the U.S. • LA’s Alameda Corridor is London Chicago the busiest intermodal rail Tokyo yard in the nation: 100 L.A. Shanghai trains per day to 13 U.S. Mexico markets City Best rail connectivity • Santiago Sydney • LA/ LB is ‘big ship ready’ LAX is the 1 3 th busiest Ground airport in the w orld transportation netw ork is far- reaching L.A. port com plex handles 4 4 % of all L.A.’s rail yards m ove containerized im ports goods efficiently from 12 into the U.S. W est to East Coast
Competitive Service Times
Extensive Rail Network Connecting U.S. New York Chicago Columbus SLC Omaha Denver St. Louis KC Memphis LA Atlanta Dallas El Paso San Antonio New Orleans Houston
2012 San Pedro Bay Ports I ntermodal and Local Cargo Flow (I mport and Export Loads and Empties) * 64% Local * ~ includes 30% of trans-loaded cargo, San Pedro Bay Cargo Terminals Transit Which is trucked/ railed domestically National Shipments/Direct Intermodal Container Vessel On-Dock Rail 25% Near/ 11% Off-Dock Rail Long-Haul <1% Truck 15
I ntermodal / Transload • Both So. Cal Ports depend on intermodal • Trans loading allows for late decisions on cargo • Better utilization of equipment • 5 international containers = 3 domestic 53’ containers • 14.5 million TEU in 2012 25% via on dock rail 11% via off dock rail 30% t t rans loaded 34% L Loc ocal
Port of Los Angeles Advantages • Spending $1 million a day on improvements • 53’ deep draft - 50+ berths and 75 gantry cranes • 8 large containers facilities totaling 1628 acres, 7 of which have on- dock rail • Over 100 trains into and out of San Pedro Bay per day • 1 billion square feet of warehousing within 80 miles from the Port • Over 11,000 drayage trucks that are model year 2007 or newer • Workforce of over 18,000 long shore personnel • Customer Outreach/Promotion • Trade Connect Program/LARExC
Truck Program • POLA investment: $50 million • Since 2008 – 90% reduction in truck emissions • Current fleet: 11,500 meeting 2007 emission standards • Supreme Court ruling - City will not enforce the following: • Truck routes • Placards • Driver hiring 18
Truck Driver I mproved Efficiency • MTO/ LMC/ Ports – turn time improvement team • Data collection and sharing the results • Improved PierPass gate schedule communication • Discussion over consistent fifth gate, lunch hour relief, flex gates, gates following stop work meetings • Discussion regarding appointments, 6pm queue, and peak mitigation fee pricing • Appointment system • Ports of LA/ LB – chassis operations committee 19
2013 and Beyond • Current YTD – POLA down 7.52% • SP Bay is up on .7% in May, YTD 2.5% • Vessel upsizing taking place now • SP Bay end the year 3% higher than last year 20
Thank you 21
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