“ “ Congestion Challenges: Congestion Challenges: Are We Doing Enough?” Are We Doing Enough?” International Cargo Handling International Cargo Handling Coordination Association (ICHCA) Coordination Association (ICHCA) Conference Conference Richard D. Steinke Richard D. Steinke Executive Director, Port of Long Beach Executive Director, Port of Long Beach
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“Congestion Challenges: Are We Doing Enough?” International Cargo Handling Coordination Association (ICHCA) Conference Richard D. Steinke Executive Director,
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““Congestion Challenges: Are Congestion Challenges: Are We Doing Enough?”We Doing Enough?”International Cargo Handling Coordination International Cargo Handling Coordination Association (ICHCA) ConferenceAssociation (ICHCA) Conference
Richard D. SteinkeRichard D. SteinkeExecutive Director, Port of Long BeachExecutive Director, Port of Long Beach
Business, Environmental and Community friendly Port of Long
Beach
Shaping a Vibrant Community
The Port of Long Beach
Port of Long Beach
• Port opened in 1911
• 2nd busiest U.S. seaport
• 16th busiest in the world
Who We Are
• More than $140 billion a year in cargo shipped through L.B.
• Leading imports include computers, autos, clothing, toys, shoes, handbags, furniture
• Leading exports include raw materials such as petroleum coke, waste paper, plastics, chemicals
International Trade
Infrastructure Challenges
•Trade may triple or quadruple in the next two decades
•Goods movement is dependent on infrastructure … particularly in a Just-In-Time environment.
•Demand exceeding available capacity causes delays
Why Should We Care About Congestion
• Delays increase costs and negatively impact the environment and the economy:– Missed cutoff times.– Additional inventory/fleet size required.– Staffing is not optimized if freight is
delayed.– Congestion causes more emissions.– Community opposition to projects
stiffens.– Adverse economic impact, nationwide.
Atlantic SeaboardTrade value: $25.9B
Jobs: 275,300
SouthwestTrade value: $82.0B
Jobs: 1,114,700
South CentralTrade value: $32.5B
Jobs: 435,700
SoutheastTrade value: $37.7B
Jobs: 498,900
Great LakesTrade value: $53.7B
Jobs: 681,800
Great PlainsTrade value: $19.3B
Jobs: 243,200
NorthwestTrade value: $3.2B
Jobs: 39,900
Source: BST Associates, 2007
Trade Impact Through POLB/POLA
Total Impacts:
Trade: $256 billion
Jobs: 3.3 million
Containers at California Ports (Millions of TEUs)
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5 Long Beach
Los Angeles
Oakland
Cargo Forecasts (millions of TEUs)
Divert Cargo? Punta Colonet? Prince Rupert? Panama Canal?
POLB/POLA Oakland
2007 15.7 2.4
2010 19.7 2.7
2020 36.7 4.2
2030 42.7 6.5
Primary Gateway for Imports
“Regardless of efforts to develop alternative West Coast
gateways, Los Angeles and Long Beach will remain the
primary entry points for eastbound imports into the
U.S.”-- Waterfront Coalition white paper, 2005
Causes of Port Congestion 2004
• 24% increase from 2003 to 2004 in POLB containers (2% at POLA)
• Rail labor & equipment shortages– 68% increase from 2003 to 2004 in on-
dock rail at POLB. (10% at POLA)
• PMA under-estimated volume and productivity growth
• Labor allocated to terminal & rail operations before vessels.
Remedies to Port Congestion 2005
• PMA/ILWU added labor – Added 5,000 casuals– Promoted 1,750 casuals to registered status– Improved forecast of labor needs.
• Technology Implementation– Optical Character Recognition (OCR)– Radio Frequency Identification (RFID) – Faster Transactions
• Rail Improvements– Added labor & equipment– Increased On-Dock rail use (now 24% of total
throughput, up from 16% in 2003)
POLB Terminal Capacity
• Existing “footprint” allows for a doubling of throughput – Dependent upon
* Assumes 26,620 feet wharf length, 49 weekly services (out * Assumes 26,620 feet wharf length, 49 weekly services (out of 108 for San Pedro Bay), 1,326 net acres, 33/hr crane of 108 for San Pedro Bay), 1,326 net acres, 33/hr crane productivity, no constraints re: channel depth, bridge height productivity, no constraints re: channel depth, bridge height or # of cranes.or # of cranes.