Growth of California Ports: Growth of California Ports: Opportunities and ChallengesOpportunities and Challenges

Presented by:Presented by:California Marine and Intermodal California Marine and Intermodal Transportation System Advisory Transportation System Advisory

Council (CALMITSAC)Council (CALMITSAC)

Overview of CALMITSACOverview of CALMITSAC

Regional affiliate of the national MTS advisory Regional affiliate of the national MTS advisory council established by Secretary council established by Secretary MinetaMineta..Over 30 members representing industry, Over 30 members representing industry, government, and academia.government, and academia.Mission: Mission: To foster development of a Marine To foster development of a Marine Transportation System in California that is Transportation System in California that is safe, secure, efficient, environmentally sound, safe, secure, efficient, environmentally sound, and capable of expanding to meet the and capable of expanding to meet the demands of the global economy. demands of the global economy.

CALMITSAC MembershipCALMITSAC MembershipU.S. Department of TransportationU.S. Department of TransportationU.S. Environmental Protection AgencyU.S. Environmental Protection AgencyCalifornia Senate Subcommittee on California Ports and Goods California Senate Subcommittee on California Ports and Goods MovementMovementCaltransCaltransCalifornia Business, Transportation and Housing AgencyCalifornia Business, Transportation and Housing AgencyCalifornia Environmental Protection AgencyCalifornia Environmental Protection AgencyCalifornia State Lands CommissionCalifornia State Lands CommissionCalifornia Highway Patrol California Highway Patrol California State University, Long Beach California State University, Long Beach -- Center for International Center for International Trade and TransportationTrade and TransportationCalifornia Manufacturers and Technology AssociationCalifornia Manufacturers and Technology AssociationCalifornia Chamber of CommerceCalifornia Chamber of CommerceInfrastructure Delivery CouncilInfrastructure Delivery CouncilConsulting Engineers and Land Surveyors of CaliforniaConsulting Engineers and Land Surveyors of CaliforniaOcean Carriers Equipment Management AssociationOcean Carriers Equipment Management AssociationCalifornia Short Line Railroad AssociationCalifornia Short Line Railroad Association

Membership (continued)Membership (continued)California Maritime Academy California Maritime Academy California Association of Port Authorities California Association of Port Authorities Pacific Merchant Shipping AssociationPacific Merchant Shipping AssociationPacific Maritime AssociationPacific Maritime AssociationCalifornia Maritime Infrastructure AuthorityCalifornia Maritime Infrastructure AuthorityMarine Exchange of Southern CaliforniaMarine Exchange of Southern CaliforniaMarine Exchange San Francisco Bay RegionMarine Exchange San Francisco Bay RegionMarine Transportation System National Advisory CouncilMarine Transportation System National Advisory CouncilMETRANS Transportation Center, USCMETRANS Transportation Center, USC--CSULBCSULBSouthern California Marine Transportation System National AdvisoSouthern California Marine Transportation System National Advisory ry CouncilCouncilCalifornia Marine Affairs and Navigation ConferenceCalifornia Marine Affairs and Navigation ConferenceInternational Longshore and Warehouse UnionInternational Longshore and Warehouse UnionThe Waterfront CoalitionThe Waterfront CoalitionNational Industrial Transportation LeagueNational Industrial Transportation LeagueThe Burlington Northern and Santa Fe Railway Co. The Burlington Northern and Santa Fe Railway Co. Union Pacific RailroadUnion Pacific RailroadPacific Coast CouncilPacific Coast Council

AB 2043 (Lowenthal) AB 2043 (Lowenthal) Requested CALMITSAC to:Requested CALMITSAC to:

Submit a report to the Legislature, Submit a report to the Legislature, including recommendations on methods including recommendations on methods to better manage the growth of ports and to better manage the growth of ports and address the environmental impacts of address the environmental impacts of moving goods through those ports.moving goods through those ports.Schedule: Interim report 1/1/06; Draft Schedule: Interim report 1/1/06; Draft Final 12/1/06; Final 2/1/07Final 12/1/06; Final 2/1/07

CALMITSAC Interim Report TopicsCALMITSAC Interim Report Topics

Public health issuesPublic health issuesPort infrastructurePort infrastructureEnvironmental enhancements Environmental enhancements Port and maritime securityPort and maritime securityFundingFundingProject delivery Project delivery Economic effects of goods movementEconomic effects of goods movementRole of California universitiesRole of California universities

Economic Imperative: Improving Job Economic Imperative: Improving Job OpportunitiesOpportunities

High wages for California workers ($45K High wages for California workers ($45K per year average)per year average)Trade jobs Trade jobs –– one of every seven in one of every seven in CaliforniaCaliforniaCalifornia Trade California Trade –– 40% of the national total40% of the national total2002 trade disruption cost 2002 trade disruption cost $7+ billion nationally$7+ billion nationally

Atlantic SeaboardTrade value: $34.3B

Jobs: 265,600

SouthwestTrade value: $97.9B

Jobs: 1,003,600

South CentralTrade value: $12.1B

Jobs: 141,000

SoutheastTrade value: $15.9B

Jobs: 191,500

Great LakesTrade value: $25.0B

Jobs: 283,500

Great PlainsTrade value: $8.6B

Jobs: 111,300

NorthwestTrade value: $2.2B

Jobs: 24,000

Source: OnTrac Trade Impact Study © 2001 OnTrac All Rights Reserved.

Impact of International Trade Through California PortsImpact of International Trade Through California Ports

Public Health Imperative: Reducing Public Health Imperative: Reducing PortPort--Related Air PollutionRelated Air Pollution

Majority of emissions are from mobile Majority of emissions are from mobile sources, including ships. sources, including ships. Goods movement is a key contributor Goods movement is a key contributor to air pollution and disease.to air pollution and disease.Diesel PM: a toxic air contaminant Diesel PM: a toxic air contaminant Without new control strategies,Without new control strategies,more cargo means more more cargo means more pollution. pollution.

Environmental Enhancements Environmental Enhancements

The Ports of Long Beach and Los Angeles The Ports of Long Beach and Los Angeles Clean Air Action PlanClean Air Action PlanThe Port of OaklandThe Port of Oakland’’s Vision 2000 Maritime s Vision 2000 Maritime Development Program Development Program The State Goods Movement Action Plan and The State Goods Movement Action Plan and the California Air Resources Board Emission the California Air Resources Board Emission Reduction PlanReduction Plan

Cleaner Trucks and Cleaner Trucks and Reduced Truck TripsReduced Truck Trips

Increase turnover of truck fleetIncrease turnover of truck fleetClean fuelsClean fuelsOnOn--dock and neardock and near--dock raildock railVirtual container yardVirtual container yardShuttle trainsShuttle trainsExtended gate hoursExtended gate hours

Cargo Growth and Competition from Cargo Growth and Competition from Other West Coast GatewaysOther West Coast Gateways

Ports of Los Angeles, Long Beach, and Ports of Los Angeles, Long Beach, and OaklandOaklandPorts of Seattle, Tacoma, and PortlandPorts of Seattle, Tacoma, and PortlandPorts of Mexico and Canada (e.g., Ports of Mexico and Canada (e.g., Punta Colonet, Prince Rupert)Punta Colonet, Prince Rupert)The Panama CanalThe Panama Canal

Container Traffic at California Ports Container Traffic at California Ports 19841984--2005 2005 (Millions of TEUs)(Millions of TEUs)

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

Long Beach

Los Angeles

Oakland

““CanCan’’t divert our way outt divert our way out””Cargo Projections in Millions of TEUsCargo Projections in Millions of TEUs

6.56.542.542.520302030

4.24.236.036.020202020

2.72.719.719.720102010

2.22.214.214.22005 actual2005 actual

Port of Port of OaklandOakland

San Pedro San Pedro Bay PortsBay Ports

Waterfront Coalition Waterfront Coalition White Paper May 2005White Paper May 2005

““Regardless of efforts to develop Regardless of efforts to develop alternative West Coast gateways, alternative West Coast gateways, Los Angeles and Long Beach will Los Angeles and Long Beach will remain the primary entry points for remain the primary entry points for eastbound imports into the U.S.eastbound imports into the U.S.””

Major Port Infrastructure With Major Port Infrastructure With Underutilized CapacityUnderutilized Capacity

11 ports statewide (Major stresses at 3 largest 11 ports statewide (Major stresses at 3 largest ports: Oakland, LA, Long Beach)ports: Oakland, LA, Long Beach)

Statewide perspective is essentialStatewide perspective is essential

Putting interlocking pieces of Putting interlocking pieces of the puzzle together in one planthe puzzle together in one plan

OnOn-- and Offand Off--Port Port Infrastructure Improvements:Infrastructure Improvements:

$17.7 billion in Needed Projects$17.7 billion in Needed Projects

San Pedro Bay Ports AreaSan Pedro Bay Ports AreaPort of Oakland Area Port of Oakland Area CaliforniaCalifornia’’s Smaller Portss Smaller Ports

Operational and Productivity Operational and Productivity EnhancementsEnhancements

Automatic tracking systems/RFID and Automatic tracking systems/RFID and GPS technologiesGPS technologiesUniform measures of productivityUniform measures of productivityExpand extended hours Expand extended hours Chassis poolsChassis poolsSpread out vessel sailingsSpread out vessel sailings

Port and Maritime Security Port and Maritime Security Systems offer improved security:Systems offer improved security:

Perimeter securityPerimeter securitySurveillanceSurveillanceRadiation portalsRadiation portalsGamma ray scanning (VACIS)Gamma ray scanning (VACIS)

But:But:Shortage of federal fundingShortage of federal fundingLack of systems standardization and integration (e.g., Lack of systems standardization and integration (e.g., ee--seals radio frequency)seals radio frequency)Need rapid implementation of Automated Secure Need rapid implementation of Automated Secure Vessel Tracking System (ASVTS)Vessel Tracking System (ASVTS)Need survey of vulnerabilitiesNeed survey of vulnerabilities

Funding LimitationsFunding Limitations

CrisisCrisisHighway gas taxHighway gas taxSAFETEASAFETEA--LULUState diversion of transportation dollarsState diversion of transportation dollarsFederal nonFederal non--responsivenessresponsiveness

OpportunityOpportunityState Strategic Growth Plan: General Obligation State Strategic Growth Plan: General Obligation bonds for infrastructure and environmentbonds for infrastructure and environmentCoalition Building: PublicCoalition Building: Public--Private PartnershipsPrivate Partnerships

–– The Waterfront Coalition The Waterfront Coalition

–– West Coast Corridor CoalitionWest Coast Corridor Coalition

SB 1266SB 1266

California Transportation Commission will California Transportation Commission will refer to State Goods Movement Action refer to State Goods Movement Action Plan, CALMITSAC report, and regional Plan, CALMITSAC report, and regional plans for advice about which projects to plans for advice about which projects to fund.fund.Consensus and project readiness will be Consensus and project readiness will be critical.critical.

Project Delivery and Options for Project Delivery and Options for Project Ownership and Operation Project Ownership and Operation

DesignDesign--build procurementbuild procurementDesign sequencingDesign sequencingPrivate ownership/leasesPrivate ownership/leases

The Role of Academic Institutions The Role of Academic Institutions in Statewide Goods Movement in Statewide Goods Movement

Acquire and distribute goods movement Acquire and distribute goods movement informationinformationTrain the leaders of the futureTrain the leaders of the futureDevelop and apply new goods Develop and apply new goods movement, security and environmental movement, security and environmental technologytechnology

Mobilizing for ActionMobilizing for ActionBuild consensus for a unified messageBuild consensus for a unified message

Involve key decision makers and allocate Involve key decision makers and allocate resourcesresources

Assess capacities and potential for expanded Assess capacities and potential for expanded utilization of existing facilitiesutilization of existing facilities

Harness new technologies from California, Harness new technologies from California, U.S., and abroadU.S., and abroad

Form publicForm public--private partnershipsprivate partnerships

Timeline for CompletionTimeline for Completion

October 1, 2006: Updated Project ListingOctober 1, 2006: Updated Project ListingDecember 1, 2006: Draft Final ReportDecember 1, 2006: Draft Final ReportFebruary 1, 2007: Final ReportFebruary 1, 2007: Final Report

Committed Sponsors To DateCommitted Sponsors To DateU.S. Maritime AdministrationU.S. Maritime AdministrationPacific Maritime AssociationPacific Maritime AssociationMarine Exchange of Southern CaliforniaMarine Exchange of Southern CaliforniaPort of Long BeachPort of Long BeachPort of Los AngelesPort of Los AngelesBNSF RailwayBNSF RailwayUnion Pacific Railroad Union Pacific Railroad Pacific Coast CouncilPacific Coast CouncilCalifornia Short Line Railroad AssociationCalifornia Short Line Railroad AssociationCalifornia Maritime AcademyCalifornia Maritime AcademyCalifornia State University, Long Beach California State University, Long Beach –– Center for Center for International Trade and TransportationInternational Trade and TransportationMETRANS Transportation Center, USCMETRANS Transportation Center, USC--CSULBCSULB

Contact Information Contact Information

Gill Hicks: Gill Hicks: hicks@polb.comhicks@polb.comNormanNorman--Fassler Katz: Fassler Katz: norman.fasslernorman.fassler--katz@sen.ca.govkatz@sen.ca.govBill Lyte: Bill Lyte: BillLyte@KennedyJenks.comBillLyte@KennedyJenks.comTom OTom O’’Brien: Brien: tobrien@csulb.edutobrien@csulb.edu

Interim Report available at: Interim Report available at: www.cunninghamreport.com/3136CALMITSAC.pdfwww.cunninghamreport.com/3136CALMITSAC.pdf