June 16, 2004June 16, 2004 FHWA Talking Freight SeminarFHWA Talking Freight Seminar

Programming for Trade GrowthProgramming for Trade Growth

Louis RubensteinLouis RubensteinPort Traffic EngineerPort Traffic Engineer

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OutlineOutline

1.1. Growth TrendsGrowth Trends2.2. Container Shipping BasicsContainer Shipping Basics3.3. Bigger Ships, TerminalsBigger Ships, Terminals4.4. Landside ImpactLandside Impact5.5. ConstraintsConstraints6.6. Expansion ProgramsExpansion Programs7.7. EnvironmentEnvironment8.8. Reducing Truck ImpactsReducing Truck Impacts

Why has West Coast Trade Increased?

Overall Growth in World Trade

Income growth—as reflected in GDP growth

Decline in tariff barriers—1974=7.1%; current=1.9%

Decline in transportation cost—large ships; double tracks

West Coast Competitive Advantages

Increase in Asia trades--% U.S. in 1970=8%; 2002=40%

Post Panamax container vessels—ships>106 ft beam

Intermodal rail system and connecting freeways

Good weather

Large local market

Labor supply

Socal Ports May Lose Market Socal Ports May Lose Market ShareShare

Showing a steady increase since the mid-1990’s, Showing a steady increase since the mid-1990’s, the Ports of Long Beach and Los Angeles lost the Ports of Long Beach and Los Angeles lost 1.5% market share in the first half of 20031.5% market share in the first half of 2003

Increased capacity at PNW ports Increased capacity at PNW ports Increased capacity on all-water routesIncreased capacity on all-water routes West coast currently 48% US total sea tradeWest coast currently 48% US total sea trade Growing freeway congestionGrowing freeway congestion

National DemandNational Demand One half of all LB One half of all LB

cargo moves east cargo moves east of Rockies.of Rockies.

Chicago: 3- 4 Chicago: 3- 4 days.days.

NY: 5-6 days.NY: 5-6 days.

2. Container Shipping Basics2. Container Shipping Basics CompetitionCompetition Service and market share higher priority than costService and market share higher priority than cost Sample fee – ship 20 ft container from Shanghai to Oakland Sample fee – ship 20 ft container from Shanghai to Oakland

$1900, to Chicago $2500 - Oakland to Shanghai $700$1900, to Chicago $2500 - Oakland to Shanghai $700 Volume measured in TEUs, twenty foot equivalent units, Volume measured in TEUs, twenty foot equivalent units,

80% are FEUs (40 ft+)80% are FEUs (40 ft+) Weekly service – N Asia loading 4 days, sea journey Weekly service – N Asia loading 4 days, sea journey

2x6500 miles (27 days) – N America loading 4 days2x6500 miles (27 days) – N America loading 4 days 6000 TEU ship capital cost $120 m or $20,000/TEU6000 TEU ship capital cost $120 m or $20,000/TEU Operating cost 4000 TEU ship - $15/TEU/DayOperating cost 4000 TEU ship - $15/TEU/Day 12,000 TEU ship - $12/TEU/Day12,000 TEU ship - $12/TEU/Day

Terminal Land ThroughputTerminal Land Throughput

Factors: dwell time, value, stack height, empties, crane rates, Factors: dwell time, value, stack height, empties, crane rates, # handlings, # sorts, random pick up, inspection# handlings, # sorts, random pick up, inspection

Container Yard $/TEUContainer Yard $/TEU8500 TEU/acre/yr new stacking system 8500 TEU/acre/yr new stacking system 7000 TEU/acre/yr grounded7000 TEU/acre/yr grounded3800 TEU/acre/yr wheeled3800 TEU/acre/yr wheeled

On Dock Rail Yard On Dock Rail Yard 10 container lifts/track foot year10 container lifts/track foot year1 acre of rail yard/1000 feet track1 acre of rail yard/1000 feet track

  

www.rutner.com/LOGT4232/slides/LOGT%204232%20Ch06%20-%20Liners.pdfwww.rutner.com/LOGT4232/slides/LOGT%204232%20Ch06%20-%20Liners.pdf

3. Bigger Ships Bigger Terminals3. Bigger Ships Bigger Terminals

10,000 TEU ship weekly service, 85% discharge10,000 TEU ship weekly service, 85% discharge442,000 x 2 = 884,000 TEU/yr442,000 x 2 = 884,000 TEU/yr

If wheeled: 3800 TEU/acre/yr = 230 acresIf wheeled: 3800 TEU/acre/yr = 230 acresIf grounded: 7000 TEU/acre/yr = 125 acresIf grounded: 7000 TEU/acre/yr = 125 acresIf 25% by rail If 25% by rail 221,000/10 = 22,100 track feet 221,000/10 = 22,100 track feet rail yard = 22 acresrail yard = 22 acres

20% TEU, 80% FEU – 491,000 containers/yr20% TEU, 80% FEU – 491,000 containers/yr

1.3 truck trips/container, 5.3 days/wk – 2300 truck 1.3 truck trips/container, 5.3 days/wk – 2300 truck trips/ day (0% rail)trips/ day (0% rail)

Megaships

8000 TEU Ships8000 TEU Ships

Limits to Ship SizeLimits to Ship Size DemandDemand Suez Canal 12,000 TEU Suez Canal 12,000 TEU L: 1312’, W: 185’, D:56’, AD: 185’L: 1312’, W: 185’, D:56’, AD: 185’

Panama Canal Current: 4,400 TEU Panama Canal Current: 4,400 TEU W:106’ W:106’

Future: 12,000 TEUFuture: 12,000 TEU Malacca Strait 18,000 TEUMalacca Strait 18,000 TEU Port InfrastructurePort Infrastructure Bridge heights, channel depths & widthsBridge heights, channel depths & widths

4. Landside Impact - POLA/LB Inland Flows4. Landside Impact - POLA/LB Inland Flows

POLB/POLA Daily Trips

230,235 PCEs

98,490 PCEs (Passenger-car-equivalents)

5. Constraints -Major California / Federal Laws

CA: Existing ports encouraged to modernize & construct within existing boundaries

No new ports allowed on coastline Limits physical boundaries of Port Tidelands Trust Truck appointments EIR

Federal: Wetlands, EIS Marine Transportation Security Act

Community RelationsCommunity Relations

Some activists are calling for a halt to Port Some activists are calling for a halt to Port growthgrowth

If we don’t grow responsibly, public If we don’t grow responsibly, public opposition could growopposition could grow

Infrastructure improvements depend on Infrastructure improvements depend on community supportcommunity support

All stakeholders in the supply chain must All stakeholders in the supply chain must become more aware of community concernsbecome more aware of community concerns

6. Expansion ProgramsMegaterminals

Mega-Container Terminal ProgramMega-Container Terminal Program5 Terminals

Each 300+ Acres

Piers T, A, E, G, J

Pier S (217 Acres)

North Harbor Planning Study

Moving Toyota to North Harbor & Expanding Pier A – current Hanjin location

Megaterminal Program CostMegaterminal Program Cost

Total Cost $1.9 Billion – in process of revising upward

Does Not Include:

Pier W – big fill

North Harbor Redevelopment

Further LandfillFurther Landfill

TONNAGE SHARE OF U.S. CONTAINER TONNAGE SHARE OF U.S. CONTAINER TRADE—TRADE—National Dredging Needs Study of U.S. Ports National Dredging Needs Study of U.S. Ports

and Harbors: Update 2000 (USACE & DRI WEFA)and Harbors: Update 2000 (USACE & DRI WEFA)

• Est. cost: $711M (escalated$)• Part of I 710 Freeway expansion, 20 miles $4+ billion

Gerald Desmond Bridge Replacement

H-Tower with Straight LegsH-Tower with Straight Legs

• Railyard capacity model

• Intermodal mode split analysis

• Rail simulation model; rail LOS

Port of Long BeachPort of Long BeachRail Master Planning StudyRail Master Planning Study

Baseline Rail Yard Projects (2020)Baseline Rail Yard Projects (2020)Mega-Terminal ProgramMega-Terminal Program

Total Cost: $293 million

2000 - 2005 2005 - 2010 2010 - 2015

Pier T Pier A Pier J

Pier S Pier B Rail Yard Expansion Pier G

Pier G - ITS Storage Tracks Toyota Rail Yard Pier E

Pier E Pier W

Pier J Storage Yard

$43 million $123 million $127 million

7. Environment7. Environment

Port equipment alternative fuels studyPort equipment alternative fuels studyYard equipment diesel equipment reduction programYard equipment diesel equipment reduction programYard equipment alternative fuelsYard equipment alternative fuelsSlow ship lanesSlow ship lanesCold ironingCold ironingShort line RR diesel emission reductionShort line RR diesel emission reductionCoke terminal dust controlCoke terminal dust control

Marine & Locomotive Contribution to Marine & Locomotive Contribution to Statewide NOx EmissionsStatewide NOx Emissions

Marine

Off-Road

Area Wide

Stationary

On-Road

Trains

20002000 20202020

20102010

3%3% 6%6%

Trains

On-Road

Stationary

Area Wide

Off-Road

Marine

9%9%7%7%

Trains

On-Road

Stationary

Area Wide

Off-Road

Marine

5%5%5%5%

Marine & Locomotive Contribution to Statewide Marine & Locomotive Contribution to Statewide Diesel PM EmissionsDiesel PM Emissions

20002000 20202020

20102010

Stationary

TrainsMarine

On-Road

Off-Road

10%10%6%6%

Stationary

Trains

Marine

On-Road

Off-Road

8%8%

15%15%

Stationary

Trains

Marine

On-Road

Off-Road

26%26%

10%10%

8. Reducing Truck Impacts8. Reducing Truck ImpactsExtended gate hours Extended gate hours 15% night 15% night 40% 40%

Virtual empty container yard Virtual empty container yard (-5%)(-5%)

Virtual weigh in motionVirtual weigh in motionElectronic seals, RFID tags – improved Electronic seals, RFID tags – improved terminal/trucker communicationsterminal/trucker communicationsAdditional on dock, near dock rail Additional on dock, near dock rail (-10% )(-10% )

Share train yardShare train yardShuttle trains - east and west bound, local, intermodalShuttle trains - east and west bound, local, intermodalSR47 (Alameda St) Truck Expressway SR47 (Alameda St) Truck Expressway (-7%)(-7%)

I710, bridge improvements I710, bridge improvements

Port Container Traffic - Rail vs. Truck

Agile PortAgile Port ““Block Swap”Block Swap”

Full-length trains are built at the on-dock yard, but Full-length trains are built at the on-dock yard, but they consist of blocks of cars (10 containers/car) each they consist of blocks of cars (10 containers/car) each sorted for specific eastern destinations. At the inland sorted for specific eastern destinations. At the inland facility, these blocks are then sorted with blocks from facility, these blocks are then sorted with blocks from other trains to create destination-specific unit trains.other trains to create destination-specific unit trains.

““No Sort” Shuttle TrainsNo Sort” Shuttle TrainsUnsorted full-length trains are built at the marine Unsorted full-length trains are built at the marine terminal. All sorting of containers into destination-terminal. All sorting of containers into destination-specific unit trains is done at the inland facility. specific unit trains is done at the inland facility. Requires the container to be offloaded from the Requires the container to be offloaded from the inland facility to other destination specific trains.inland facility to other destination specific trains.