Issues Facing

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• Issues Facing
• Los Angeles/Long Beach
• Maritime Industry
• December 6, 2004

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Pacific Merchant Shipping Association

• Established 75 years.
• Membership includes
• U.S. and foreign flag carriers, breakbulk, tanker
  vessel and barge operators, marine terminal
  operators, stevedoring companies and other
  maritime service companies.
• 90 of the West Coast Maritime Industry.
• Locations
• Long Beach, California
• San Francisco, California
• Seattle Washington

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Pacific Merchant Shipping Association

• The Pacific Merchant Shipping Association
  works with state legislators, monitors
  legislation and communicates on behalf of the
  maritime industry on such issues as operating
  efficiencies, community relations and
  environmental stewardship.

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Los Angeles/Long Beach PortsThe Facts

• Third Largest Container Gateway in the World.
• In 2003 over 11.8 million TEU of containers.
• Estimates for 2004 are 13.1 million.
• Handles 40 of the U. S. Waterborne Freight
• Over 37,000 daily truck trips on I-710 freeway
• Over 5,500 ships call each year
• This number isnt growing - the ships are!
• Newer ships 8,000 plus TEU pose new challenges.

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Los Angeles/Long Beach Ports The Reality

• Trade accounts for 550,000 jobs in region
• California population growth
• 400,000 600,000 per year
• Forecast 30M TEUs in 2025
• Our roadways are becoming more
  congested, demanding creative
  solutions to improve the flow of
  containers into and out of our ports.

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Congestion Solutions

• Pier Pass Program
• Extending Marine Terminal Gate Hours
• Adding 5 additional off peak shifts
• Program to begin 1st Quarter 2005
• 150 Million annual cost
• 20 - 40 per TEUs fee on peak hour gate moves
• Fee excludes TEUs moved by rail/Alameda Corridor
• Goal is to move cargo to off peak hours

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Congestion Solutions

• Hiring of 5000 new casual longshoreman
• Instituting a new process for forecasting TEU
  growth
• New technology to speed the processing of trucks
  and reduce idling
• Optical Character Scanning (OCR) equipment
• Radio Frequency Identification Devices (RFID)

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Congestion Solutions

• Greater use of on-dock rail facilities
• New near-dock rail facilities in the harbor
• Pilot - Shuttle Trains to Distribution Centers
• And, hopefully federal funding for infrastructure
  improvements

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A New Problem for Logisticians

• Industry has become expert in devising smooth,
  well-oiled, logistics chains to move goods
• The public doesnt particularly care
• The community is now expressing its concern -
  indeed - the public has found its voice on issues
  of roadway congestion and pollution.

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Their Problem is our Problem

• Vessel emissions, NOx, SOx, diesel particulates -
  now a part of our vocabulary, these issues are of
  particular interest to the maritime industry.
• Shipping lines, marine terminals, the ports are
  all working in sync to address emissions
  reduction.
• Cleaning the air is now our biggest challenge...

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Ports Industry Take the Lead

• The Ports of Los Angeles and Long Beach have
  devised multiple approaches to address emissions
  reduction.
• Voluntary vessel speed reduction
• Emulsified diesel in terminal yard equipment
• Diesel Oxidation Catalysts
• Alternate fuel yard equipment
• Electric Gantry Cranes

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and more

• Low sulfur diesel fuel used while hoteling
• Cleaner on road engines in terminal equipment
• Cold ironing
• Gateway Cities fleet modernization program
• - Replacing on-road diesel trucks manufactured
  before 1983. 300 truck replacements have been
  funded to date.
• Green Terminal
• Cooperation with CARB, SCAQMD, EPA

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A New Balance to Expansion

• Industry and Ports together must lead in clean
  air improvements
• Local communities are part of the solution
• Legislation is Not the Answer
• Working together with government, industry and
  communities to meet the challenges from the
  forecasted cargo growth