FISCAL YEAR 2017 STRATEGIC PLAN

Transcription

1 FISCAL YEAR 2017 STRATEGIC PLAN

2 Fiscal Year 2017 Strategic Plan LONG BEACH BOARD OF HARBOR COMMISSIONERS Lori Ann Guzmán President Lou Anne Bynum Vice President Tracy J. Egoscue Secretary Doug Drummond Commissioner Rich Dines Commissioner Duane Kenagy, P.E. Interim Chief Executive 1 2

3 Contents Introduction Vision, Mission, and Value Proposition Core Values Strategic Planning Process Strategic Goals and Six-Month Strategic Objectives Financial Strength Ten-Year Capital Plan Diverse Workforce Green Port of the Future Market Share Growth Conclusion 3 4

4 Introduction The Port of Long Beach is one of the most successful seaports in the world. In order to remain successful in a competitive and rapidly changing global economy, we are committed to being proactive in our preparations for future challenges, and to strategically managing our resources in order to achieve our vision. Achieving our strategic goals in these areas will not be easy. However, focusing our efforts and resources on these priorities will allow us to proactively address our major challenges and balance our role as a facilitator of international trade with our strong commitment to environmental stewardship, safety and security, and community partnership. The Port s strategic plan will serve as our roadmap as we journey into the future. Our Vision The Port of Long Beach will be the global leader in operational excellence and environmental stewardship. Mission The Port of Long Beach is an international gateway for the reliable, efficient and sustainable movement of goods for the benefit of our local and global economies. Value Proposition Customers choose the Port of Long Beach because we are the greenest, most reliable, and most cost-effective gateway for the movement of goods to America s major consumer markets. 5 6

5 Core Values This update of the Port of Long Beach Strategic Plan reinforces the importance of our vision, mission and core values, but it also underscores the need for dynamic planning for the future. Our strategy remains to increase the Port s economic benefits while minimizing the negative environmental impacts of Port operations. Our progress since 2005 demonstrates how much can be achieved in both areas. Going forward, our strategy remains to improve in all areas and document our progress by achieving our specific, measurable, attainable, robust and timely strategic objectives. This will ensure that we continue to take our considerable responsibilities to heart, and that we hold ourselves, as well as our partners, accountable to our numerous and diverse stakeholders. The Port of Long Beach values... Visionary Leadership Innovation Diversity Honesty and Integrity Superior Customer Service Teamwork Healthy and Prosperous Communities 7 8

6 Strategic Goals The Port has established five near-term strategic goals that it will strive to achieve in the coming years. These goals define our priorities as we carry out our mission and allow us to focus our resources in a way that moves us closer to our vision for the future. The Port is committed to achieving the following three-year strategic goals: Enhance Short-Term and Long-Term Financial Strength Achieve Key Milestones of the Ten-Year Capital Plan Attract, Develop and Retain a High-Performing, Diverse Workforce Develop the Green Port of the Future Roadmap Achieve Sustained Market Share Growth 9 10

7 Strategic Goals and Objectives Strategic Goal: Enhance Short-Term and Long-Term Financial Strength The Fiscal Year (FY) 2017 budget projects moderate revenue growth when compared with the FY 2016 forecast, as Phase 1 of the Middle Harbor Redevelopment is operational. The proposed budget also includes a $17.8 million Tidelands Transfer, calculated at 5 percent of the estimated FY 2016 gross operating revenue. The Port in FY 2017 will continue to effectively manage the $892.6 million debt portfolio anticipated to be in place at the beginning of the fiscal year, with $88.2 million in scheduled principal and interest payments. It is projected that $200 million in new debt will be issued in FY 2017 in order to support the continuation of the Port s capital program. Strategic Objectives: 1. Present to the Board of Harbor Commissioners (BHC) for consideration a strategic State and Federal Grants Plan. 2. Present to the BHC for direction an updated Ten-Year Cash Flow Forecast that ensures long-term financial sustainability. 3. Prepare an approximately $200 million bond offering that reflects an optimal structure and cost of borrowing, while maintaining our AA bond rating. 4. Support the city s Enterprise Resource Planning System (ERPS) implementation milestones, ensuring that Port needs are addressed. 5. Develop a Five-Year Information Technology Strategic Plan and present to the BHC for action. 6. Propose to the BHC for action a balanced and sustainable FY 2018 budget. 7. Complete three container terminal Five-Year Rent re-negotiations and amend or adjust other agreements, as necessary.

8 Strategic Goals and Objectives Strategic Goal: Achieve Key Milestones of the Ten-Year Capital Plan The Port will continue to modernize and upgrade its facilities and infrastructure in FY The Port s capital program will focus on increasing cargo-handling efficiency with new technology and sustainable infrastructure while building on its commitment to the environment and the community. The significant $500 million investment in FY 2017 demonstrates the Port s continued commitment to its leadership role in an increasingly competitive market. Some of the ongoing major capital projects that will continue for the upcoming year include the Gerald Desmond Bridge Replacement Project; Middle Harbor (Piers D/E/F) Project; Dredging Projects; Sewer, Street, Water, and Storm Water Capital Improvement Program; Port Wide Rail Program; and Fire Safety/Security Projects. Strategic Objectives: 1. Update the progress, budget, and schedule performance for the Gerald Desmond Bridge Replacement Project and report the results to the BHC. 2. Release the draft Pier B Rail Yard Enivornmental Impact Report (EIR). 3. Bring the Pier G double-track contract amendment to the BHC for action. 4. Present the terminal redevelopment process to the BHC for discussion. 5. Review Capital Program Prioritization and present the analysis and recommendations to the BHC for action

9 Strategic Goals and Objectives Strategic Goal: Attract, Develop and Retain a High-Performing, Diverse Workforce Port employees are fundamental to the organization s ongoing success, and the foundation of that success is the recruitment and retention of a high-performing workforce, including effective performance management. The Port is also committed to a diverse and inclusive culture, one that values differences and similarities and helps employees maximize their full potential. Strategic Objectives: 1. Present to the BHC for action a succession planning process. 2. Report to the BHC on Port of Long Beach high school and college internships. 3. Assess and report to the BHC ongoing progress for diversity hiring. 4. Develop a policy to ensure Port of Long Beach diversity in hiring and present to the BHC for action. 5. Update the BHC on succession planning

10 Strategic Goals and Objectives Strategic Goal: Develop the Green Port of the Future Roadmap Maintaining our position as the Green Port, on the cutting-edge of efficient, sustainable and environmentally sensitive port operations, is essential. The Port is investing more than $4 billion over a decade to build a modern, clean, and efficient gateway capable of handling the next generation of cargo vessels. The goal of a zero-emissions port will require significant investments in electrifying our operations, and the Port s Energy Initiative will help ensure a stable, resilient and sustainable electrical supply for our customers. Beyond the docks we are improving velocity throughout the supply chain by collaborating with all industry partners to improve operations through technology and infrastructure investments. Strategic Objectives: 1. Present recommendations on supply chain initiatives to the BHC for action. 2. Present to the BHC consideration of a plan to move forward on Energy Initiative, including Phase I pilot projects. 3. Present to the BHC for consideration a Clean Air Action Plan (CAAP) 3.0 roadmap. 4. Present a Short Haul Rail update to the BHC. 5. Present an Informational Portal update to the BHC. 6. Commence the Port Master Plan (PMP) update process

11 Strategic Goals and Objectives Strategic Goal: Achieve Sustained Market Share Growth The Port s commercial success provides numerous economic benefits to the city, the region, the state and the entire country. Our primary challenge is to remain competitive by meeting our commercial customer needs. The Port s objective is to identify new business opportunities while retaining the Port s current business with success measured by gains in revenue, volume and market share. In FY 2017, the Port will continue to aggressively pursue these opportunities to more proactively and effectively engage regional and national stakeholders and in doing so, increase Port business and revenue. Strategic Objectives: 1. Identify three new business development strategic initiatives per major business line. 2. Review and assess commercial strategies of competitors and report to the Management Team. 3. Coordinate and align commercial strategies with marine terminal operators and ocean carriers and report the results to the Management Team

12 Conclusion As the Port of Long Beach implements this ambitious Strategic Plan, it is important to remember that we are building upon one of the most respected gateways in the world. We are recognized as a leader in environmental stewardship, goods movement innovation and strong community support. But in the midst of a dramatically changing industry, we cannot be complacent, and this plan provides a solid path to maintain our reputation as the seaport of choice. We don t chart our future in years, but in decades. Our Green Port Policy has been in place for ten years and is a model for ports around the world. Our ten-year capital program is already paying dividends, as Middle Harbor attracts trade partners to the most modern terminal in the country. This long-term planning approach allows us to be flexible, responsive, and efficient even in the midst of industry challenges. We look forward to carrying out this plan with the diligent guidance of our Board and renowned expertise of our staff. Lori Ann Guzmán President, Long Beach Board of Harbor Commissioners 21 22

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