Port of Los Angeles. America s Port Harbor Transportation Club June 20, 2013 Kathryn McDermott
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1 Port of Los Angeles America s Port 2013 Harbor Transportation Club June 20, 2013 Kathryn McDermott
2
3 Sea/Tac Battle for Discretionary Cargo Prince Rupert Eastern Canada NY/NJ OAK Norfolk LA/LB Savannah Depth 50 or greater Depth 45 or less Houston Mobile Jacksonville Lazaro Cardenas
4 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
5 So What Are We Doing To Stay Competitive? 5
6 Capital Improvement Program Capital Expenditures (in millions $) $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $87.9 $96.0 $102.5 $ (Actual) 2006 (Actual) 2007 (Actual) 2008 (Actual) $ (Actual) $ (Actual) $ (Actual) $ (Actual) $ (Estimated) $ (Proposed) Fiscal Year Actual Estimated Proposed
7 Key Upcoming Projects 8 9 Cargo Terminals & Rail: 1. TRAPAC : backland and on-dock rail 2. Yang Ming: new wharf and additional rail China Shipping: backland and wharf extension Evergreen: upgraded wharf 5. YTI: upgraded wharf and additional rail 4 6. APL: new wharf and backland 7. Ports America: short-term permit 6 8. ICTF: modernization 9. BNSF/SCIG: new rail yard 10. Dredging: main channel dredged to Roadway Infrastructure: A. South Wilmington grade separation B. C Street interchange C. Vincent Thomas/Harbor Blvd interchange
8 Alternative Maritime Power Providing ships with shore power Program commenced at POLA in berths have infrastructure in place
9 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 Bigger Ships 9
10 Customer Initiatives Requesting terminal expansion Raising cranes Alternative fuel yard equipment Automation 10
11 What Are Our Advantages?
12 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 the busiest intermodal rail yard in the nation: 100 trains per day to 13 U.S. markets Shanghai Tokyo L.A. Chicago Mexico City London Best rail connectivity LA/LB is big ship ready Sydney Santiago LAX is the 13th busiest airport in the world Ground transportation network is farreaching L.A. port complex handles 44% of all containerized imports into the U.S. 12 L.A. s rail yards move goods efficiently from West to East Coast
13 Competitive Service Times
14 Extensive Rail Network Connecting U.S. SLC Denver Omaha Chicago Columbus New York KC St. Louis LA Dallas Memphis Atlanta El Paso San Antonio Houston New Orleans
15 2012 San Pedro Bay Ports Intermodal and Local Cargo Flow (Import and Export Loads and Empties) Container Vessel San Pedro Bay Cargo Terminals 64% 25% 11% * *~ includes 30% of trans-loaded cargo, Which is trucked/railed domestically National Shipments/Direct Intermodal Local Transit On-Dock Rail Near/ Off-Dock Rail <1% Long-Haul Truck 15
16 Intermodal / 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 % via on dock rail 11% via off dock rail 30% trans loaded 34% Local
17 Port of Los Angeles Advantages Spending $1 million a day on improvements 53 deep draft berths and 75 gantry cranes 8 large containers facilities totaling 1628 acres, 7 of which have ondock 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
18 Truck Program POLA investment: $50 million Since % 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
19 Truck Driver Improved 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
20 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
21 Thank you 21
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