Port of Los Angeles. America s Port. Distribution Management Association January 2016

Transcription

1 Port of Los Angeles America s Port Distribution Management Association January

2 Port of Los Angeles at a Glance Founded in 1907 Non-taxpayer supported Business port model 4,300 acres land (1,740 ha) 3,200 acres water (1,295 ha) 270 berths and 27 cargo terminals 8 container terminals 88 cranes Harbor Department Administration Bldg. Downtown Los Angeles City Hall 2

3 San Pedro Bay Port Complex TRAPAC 185 acres YM WBCT 186 acres CS WBCT 136 acres Cruise EVERPORT 205 acres PASHA YTI 185 acres Peel off yard Future Maritime Support EMS 292 acres SSA APM TERMINALS 393 acres CUT 91 acres 3

4 Diversified Port Containers Break bulk (autos, fruit, cement, steel) Liquid bulk (crude, refined products) Cruise Rail Fishing Commercial Recreation/Marinas 4

5 Vision: Mission: We are America s Port - the nation s #1 container port and the global model for sustainability, security, and social responsibility. We deliver value to our customers by providing superior infrastructure and promoting efficient operations that grow our port as North America s preferred gateway. STRATEGIC OBJECTIVE 1 STRATEGIC OBJECTIVE 2 World-Class Infrastructure that Promotes Growth Initiative 1 Develop a Capital Improvement Program (CIP) that improves the port s operational strength and financial sustainability. Initiative 2 Deliver terminal and infrastructure projects on time and within budget. Initiative 3 Optimize maintenance to extend infrastructure life and utility. Back to Basics Priority Outcome: Prosperous City An Efficient, Secure and Environmentally Sustainable Supply Chain Initiative 1 Facilitate supply chain efficiencies and terminal velocity with supply chain partners. Initiative 2 Implement security and public safety strategies that support goods movement and mitigate risk. Initiative 3 Continue environmental stewardship through implementation of programs with clear and measurable standards. Back to Basics Priority Outcomes: Livable City, Prosperous City, Safe City STRATEGIC OBJECTIVE 3 STRATEGIC OBJECTIVE 4 Improved Financial Performance of Port Assets Initiative 1 Increase cargo revenue by attracting new volumes and establishing long-term volume commitments. Initiative 2 Increase the utilization of port facilities. Initiative 3 Ensure that port properties are revenue efficient and reflect current land values and market-based compensation. Back to Basics Priority Outcomes: Prosperous City, Well-run City Strong Relationships with Stakeholders Initiative 1 Enhance a world-class customer service delivery product. Initiative 2 Attract visitors to the LA Waterfront of Wilmington and San Pedro. Initiative 3 Make the Harbor Department the employer of choice by providing opportunities for professional development and promoting excellence. Back to Basics Priority Outcome: Engaged City 5

6 Economic Impact San Pedro Bay Ports Cargo Value (import/export): $409.8 billion (CY 2014) Employment (Direct City of Los Angeles Harbor Department) 994 authorized positions at the Port (FY 2014) $446.9 million in Operating Revenues (FY 14/15 unaudited) Employment (Related) 3.1 million jobs throughout the U.S. 1.2 million jobs throughout California 1 million jobs throughout the Southern California Region State and Local Tax Revenue: Value of Trade to the Economy: (import and export trade) $6 billion throughout California $23 billion throughout the U.S. $63 billion throughout California $290 billion throughout the U.S. 6

7 Port of Los Angeles Advantages 7

8 Global & US Port Rankings Top Container Ports (in millions of TEUs ) Global (2014) North America (2014) 1. Shanghai, China Singapore Shenzhen, China Hong Kong Ningbo, China Busan, South Korea Qingdao Guangzhou, China Dubai, Arab Emirate Los Angeles/LGB Los Angeles 8.3 (+6%) 2. Long Beach NY/NJ Tacoma/Seattle Savannah Vancouver Oakland Norfolk Manzanillo Houston , , , , , , , , , Port of Los Angeles 8

9 Top Trading Partners & Commodities TOP 5 TRADING PARTNERS In Cargo Value, CY China/Hong Kong $142 billion 2. Japan $39 billion 3. South Korea $16 billion 4. Taiwan $13 billion 5. Vietnam $13 billion IMPORTS Containerized, CY Furniture 439,306 TEUs 2. Auto Parts 208,390 TEUs 3. Footwear 165,566 TEUs 4. Plastic Prod. 155,616 TEUs 5. Apparel 146,968 TEUs EXPORTS Containerized, CY Wastepaper 325,030 TEUs 2. Animal Feeds 181,352 TEUs 3. General Cargo 75,717 TEUs 4. Cotton 59,798 TEUs 5. Soybeans 55,477 TEUs 9

10 Port of Los Angeles Facilities TRAPAC Land area: 185 acres (75 ha) Total berth length: 5,400 (1,646 M) Berths: 4 Water depth: ( M) Cranes: 10 Post-Panamax cranes. Gate: 17 lanes On-dock-rail: By 2016 (8 tracks = 20,600 (6,278 M) Reefer plugs: 685 YUSEN TERMINALS Land area: 185 acres (75 ha) Total berth length: 5,800 (1,768 M) Berths: 3 Water depth: 45 (13.7 M) Cranes: 10 Post-Panamax cranes. Gate: 30 lanes On-dock-rail: 4 tracks = 8,531 (2,600 m) Reefer plugs: 406 YANG MING TERMINAL (WBCT) EVERPORT TERMINAL Land area: 186 acres (75 ha) Land area: 205 acres (82 ha) Total berth length: 2,500 (762 M) Total berth length: 5,800 (1,768 M) Berths: 2 Berths: 3 Water depth: 45 (13.7 M) Water depth: 45 (13.7 M) Cranes: 5 Post-Panamax cranes Cranes: 8 Post-Panamax cranes. Gate: 30 lanes On-dock-rail: 4 tracks = 9,300 (2,834 M) On-dock rail: 3 tracks = 8,920 (2,718 M) Reefer plugs: 560 Reefer plugs: 376 CHINA SHIPPING (WBCT) Land area: 132 acres (53.4 ha) Berth length: 2,500 (762 M) Berths: 2 Water depth: 53 (16.1 M) Cranes: 8 Super post-panamax cranes. Gate: share with YML On-dock-rail: Shared with YML Reefer plugs: 204 EMS Land area: 292 acres (118 ha) Total berth length: 4,000 (1219 M) Berths: 3 Water depth: 50 (15.2 M) Cranes: 16 Post-Panamax cranes. Gate: 23 entry/exit On-dock-rail: 8 tracks = 20,415 (6,222 M) Reefer plugs: 706 CALIFORNIA UNITED TERMINALS Land area: 91 acres (36.8 ha) Total berth length: 2,000 (610 M) Berths: 2 Water depth: 55 (16.8 M) Cranes: 5 Post-Panamax cranes. Gate: 13 lanes Reefer plugs: 500 dedicated at APMT On-dock-rail: At APMT APM TERMINALS Land area: 393 acres (159 ha) Total berth length: 5,300 (1615 M) Berths: 4 Water depth: 55 (16.8 M) Cranes: 14 Post-Panamax cranes. Gates: 40 lanes On-dock-rail: 12 tracks = 29,004 (8,840 M) Reefer plugs: 2,400 10

11 On-Dock & Near-Dock Rail Capacity 113 Miles of Rail on Port Property More than 100 Trains into and out of San Pedro Bay 5.3 million TEUs in 2013 San Pedro Bay (On & Near Dock) Alameda Corridor ($2.4 billion) Port of LA Near Dock/On-Dock Rail: 1986 SPRR/UPRR ICTF 1997 Terminal Island Container Transfer Facility and APL 1999 West Basin Container Terminal 2002 APM Terminals 2016 New On-Dock Rail for TraPac 11

12 Port of Los Angeles Key Projects Year Capital Improvement Projects: $2.6 billion ( ) Cargo Terminals & Rail: 1. APMT: On-dock rail optimization & crane enhancements 2. TRAPAC: backland automation, and on-dock rail, Yang Ming: wharf and additional rail 4. China Shipping: backland and wharf extension, completed 5. Evergreen: upgraded wharf 6. YTI: upgraded wharf and additional rail, EMS: new wharf and backland 8. ICTF: modernization 9. BNSF/SCIG: new rail yard, Pier A Rail yard replacement: new storage tracks, completed Roadway Infrastructure: A. C Street interchange B. Vincent Thomas/Harbor Blvd interchange

13 Key Drivers Impacting Ocean Shipping Industry Macro-Environment remains challenging Prospect of continued slow growth globally but higher growth in parts of Asia & Middle East Structural Over-Supply continues, will be the case for many years Longer Term pressure on rates & profitability Industry structure coalescing around large/expanded Alliances Complexity increases dramatically as a consequence Barriers to consolidation remain Fuel cost relief temporary Focus remains on reducing operating cost Drive to reduce fuel consumption continues Factors that will result in the Liner shipping sector struggling with profitability pressures for many years to come Near-term fuel cost reductions will positively impact results but beyond the short-term carriers have to find new means maximizing asset utilization and reducing cost These dynamics are structural not just the effects of a cycle!

14 Creation of Mega Shipping Alliances G6 Ocean 3 CKYHE 2M 14

15 Industry Changes Port of Los Angeles Average Ship size increased to 6,874 TEUs from 5,408 TEUs 238 Less Ship Calls (Jan/Aug 2014 versus 2015) 15

16 M/V Benjamin Franklin 18,000 TEUS Length: 1,300 feet Taller than Empire State Building Height: 197 feet 20-floor building Width: 177 feet 12 lane wide Freeway When all 18,000 containers carry shoes only, it would transport 111 million pairs. 3 pair of shoes for every Californian. 16

17 (Boxes/hour) Supply Chain Impacts Larger sized container ships and mega shipping alliances o Cargo discharged at a much faster rate o Cargo stowage inadequacies o The secondary conveyance couldn t keep up Shipping Lines divesture in truck chassis Truck driver shortages Trucker hours of service ILWU/PMA contract Berth Productivity 0 Jan-14 Apr- 14 Jul-14 Oct-14 Jan-15 Apr- 15 Jul-15 Oct-15 Boxes/hour 17

18 Operational Efficiency Solutions PMA/ILWU contract ratified May 22, 2015 Interoperable Chassis Pool (DCLI, Flexivan, Trac) Rolled out on February 1, Smarter cargo stowage at port of origin for easier terminal sorting/rail dispatching Peel-off programs o Cargomatic Freight Advance Transportation Information System (FRATIS) Short haul rail/truck service to the Inland Empire Street Turn Technology o Quick180 PierPass (TMF) Better communications technology 18

19 Supply Chain Optimization Working groups Peak Season 2015 Container Terminal Optimization o Drayage o Chassis KPI and Data Solutions Intermodal Rail Off-dock solutions Working group participants Supply chain stakeholders (Cargo owners, terminals, shipping lines, drayage, rail carriers, ILWU, Chassis providers and Customs brokers) 19

20 Container Terminal Optimization Working Group Five Priorities Cargo Forecasting Truck Driver Turn-Time Chassis Dwell Time Terminal Appointment System Visibility to gate queue via single website 20

21 KPI and Data Solutions Working Group Themes Visibility of container availability Visibility of chassis availability Reduce duplicate efforts (single source) Exception reporting Accurate vessel berth information Accurate and common definitions Information can lead to reduced costs 21

22 Bottom Line.. There is a need for a greater level of engagement between the shipper community, the carriers (at an alliance level) at a more senior level (decision makers) targeted at bringing about a mindset shift related to the industry s service delivery The carriers will need to continue to focus on finding means of reducing their costs, but need to focus on landside initiatives that not only reduce cost but positively impact the flow/fluidity through their terminals As a result of the more complex operating environment that the evolving Container Shipping landscape has produced, solutions will require greater collaboration and the engagement of Shippers, Railroads, Port Authorities and others in the supply chain to help the industry find a better path

23 Conclusion Decades long infrastructure development strategy o 1,000 new container terminal acres o 8 large containers facilities totaling 1,628 acres o 53 deep draft berths and 88 gantry cranes Spending about $1 million a day on improvements Over 100 trains into and out of San Pedro Bay per day 1 billion sq. ft. of DC capacity within 80 miles from the Port Over 11,000 drayage trucks that are model year 2007 or newer Workforce of over 18,000 longshore personnel Create an efficiency model with shared stakeholder gains THE PORT OF LOS ANGELES THE RIGHT PARTNER FOR YOUR BUSINESS! 23

24 Thank You! Port of Los Angeles 425 South Palos Verdes Street, CA Phone: (310)