Port of Calm:Issues in Risk and Claim Management for 

the Port Industry

PresentersPresenters

K i t F l AKrista Fowler AcunaAttorney

The Chartwell Law Offices

Eugenia KennedySr. Manager Mechanical Engineering

E t

Christopher McCoy

Exponent

p yExecutive General Adjuster

Engle Martin & Associates

www.theclm.org

U.S. Ports‐ Global StatisticsU.S. Ports Global Statistics• U.S. seaports moving more than 90% of the country’s overseas cargo by volume, and 65% by value

• In 2010, the U.S. accounted for roughly 8.4% of the ld d dworld goods export trade

• The value of international trade in the U.S. GDP.:– 13% percent in 1990– Est. 37% by 2015– Est. 60% by 2030

Source: American Association of Port Authorities

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Source:  American Association of Port Authorities

Nature of Port OperationsPASSENGER:

CruiselinesYachts

CARGO:

ContainerBulk & Break Bulk

TERMINAL SERVICES:

Terminal OperatorsStevedoresYachts Bulk & Break Bulk

PetroleumShipping LinesWarehouses

Stevedores /LongshoremenCranes & Transfers (ro‐ro, loading arms, 

OPERATIONS Petroleum StorageRefrigerator Storage

pipelines, pneumatic unloaders)Customs brokersFreight forwarders

OPERATIONS:

PowerplantsDredging Freight forwarders

Vessel AgentsTugs

Environmental 

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Port of New York/ New Jersey6 000 ft f Wh f*over 6,000 ft of Wharf*

• 7 Wharf cranes• 11 Aerial/Manlifts• 116 Forklifts• 263 Straddle carriers• 52 Top loadersp• 143 General industrial equipment• 30 Rubber tired Gantry cranes30 Rubber tired Gantry cranes• 293 Material handling equipment• 395 Terminal tractors

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• 395 Terminal tractors* 2008 data

Port Risks & ProtectionsPort Risks & ProtectionsRISKS: INSURANCE COVERAGE:

Wrongful DeathPersonal Injury (3rd Party)Personal Injury (Longshore)Property Damage (cargo

USL&HGeneral LiabilityBusiness InterruptionStevedores/Terminal OperatorsProperty Damage (cargo, 

ships, real property, buildings, storage, pipelines)Pollution

Stevedores/Terminal Operators LiabilityAuto LiabilityPollution

Business Interruption War/Tria

LEGAL RISK SHIFTING:

i / bli hiPrivate/Public PartnershipsIndemnity & DefenseLimitation of LiabilityInsurance Provisions

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Governmental Immunities

Safety Hazards at Marine TerminalsSafety Hazards at Marine Terminals

• Unsafe  equipment• High traffic areas

• Inadequate traffic controls• WeatherHigh traffic areas

• Road condition• Inadequate illumination

Weather• Unsafe vehicle operation• Fatigue

• Reduced visibility• Struck by falling parts

• Improper parking• Lack of communication

• Falls from elevation• Welding

• Lack of training• Shift changes

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Longshoring and Marine TerminalsLongshoring and Marine Terminals

• Vehicular accidentsVehicular accidents• Material handling accidents

ll /d i id• Falls/drowning accidents

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Vehicular Accidents

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Vehicular AccidentsVehicular Accidents

• Struck by powered industrial truck (PIT)withStruck by powered industrial truck (PIT)with no warning signals

• Struck by PIT with missing safety devices• Struck by PIT with missing safety devices• Struck by tractor trailer operating in the same l l hlane as lasher

• Struck by container truck operating in a high traffic area

• Struck by moving railcars on a terminal

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y g

Material Handling AccidentsMaterial Handling Accidents

• Struck by  falling aluminum t‐bar improperly y g p p ysecured on crane

• Crushed by improperly stacked steel partsCrushed by improperly stacked steel parts• Struck by toppling paper rolls being loaded into the hold of a shipinto the hold of a ship

• Struck by spreader bar that disengaged from a b idbridge crane

• Crushed when standing beneath a load 

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suspended by an incorrect clamp

Falls/Drowning AccidentsFalls/Drowning Accidents

• Slipped and fell into water while not wearingSlipped and fell into water while not wearing life vest

• Drove off open edge into water while not• Drove off open edge into water while not wearing a lift vestC d d lk ll i f ll• Corroded catwalk collapses causing fall

• Fall from working atop barge covers

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Government Agency OversightGovernment Agency Oversight

NTSB investigates OSHA’smission is toNTSB investigates every civil aviationaccident in the U S

OSHA smission is to assure safe and healthful workingaccident in the U.S. 

and significant accidents in other

healthful working conditions by setting and enforcingaccidents in other 

modes of transportation‐

and enforcing standards and by providing trainingtransportation

railroad, highway, marine and pipeline

providing training, outreach, education and assistance

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marine and pipeline and assistance

OSHA• PART 1915 ‐ Occupational Safety and Health Standards for Shipyard Employment py p y

• PART 1917 ‐Marine Terminals • PART 1918 Safety and Health Regulations for• PART 1918 ‐ Safety and Health Regulations for Longshoring 

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Port of Jacksonville Crane CollapsePort of Jacksonville Crane Collapse

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Port of Jacksonville Crane CollapsePort of Jacksonville Crane Collapse• DOL:  Wed. 13 August 2008• Property:  5 cargo container cranes & associated docks and rails

• Cause of Loss:  Wind microburst from thunderstorm, straight line 65 mph

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Port of Jacksonville Crane CollapsePort of Jacksonville Crane Collapse

• Claim Amount Reserves:Claim Amount Reserves:  –Replacement cranes:  $4.5 million

k i $ illi–Dock repairs:  $1.1 million–Debris removal:  $572,000–Business Interruption: $500,000 – Expediting Expenses: $750 000Expediting Expenses:  $750,000

• Predicted Timeline:  18‐24 months

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THE FUTURE‐ PANAMA EXPANSIONTHE FUTURE PANAMA EXPANSION– Cost:  $5.25 billion project– Timeline:  8 years, April 2015 completion date – Status:  6 months behind– Goal:  widen/deepen Atlantic and Pacific approaches; new locks; deepen Culebra cut

– Impact: lower shipping costs, greater capacity, efficiency (speed/size)

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PANAMA EXPANSION & PORTSPANAMA EXPANSION & PORTS

• Large PortsLarge Ports– 8 total coastal ports will handle post‐Panamaxships by 2015ships by 2015 

• East: Baltimore, Miami, New York, and Norfolk• West: LA, Long Beach, Oakland, Seattleg

– New cranes‐ Post‐Panamax and super post‐panamax (only Miami and Baltimore)

• Miami “New Panamax” 50‐Foot Dredge Project– From 42 to 50 feet deep

Allows new Super Post Panamax megaships

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– Allows new Super Post Panamax megaships

PANAMA EXPANSION & AIRPANAMA EXPANSION & AIR– Smaller number of North American air cargo centers predicted (source: Colliers International, “Cap Ex orpredicted (source:  Colliers International,  Cap Ex or Capsize”)

• 3‐5 years approx. 12 dominant U.S. air cargo markets• Narrowed to cities with strong air cargo/port linkage• Memphis, Louisville, Columbus, Miami, NY, LA, Seattle, DenverDenver

– Potential for nearby smaller air cargo centers to relieve hubs

• Greenville/Spartanburg, Mobile, Birmingham• Ashley Furniture building 3.3 million sq ft warehouse in NC d i d l i Chi

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NC due to train delays in Chicago

PANAMA EXPANSION & RAILPANAMA EXPANSION & RAIL• Florida East Coast Rail Reconnection Project

– Reconstruction of the FEC Port Lead– Rehab of bascule bridge connecting Port Miami and FECOn Dock/on port rail facilities Port Miami & Port– On‐Dock/on‐port rail facilities Port Miami & Port Everglades

– Intermodal Container Transfer Facility at Port Evergladesy g• Southern California International Gateway

– 4 miles from Port of Los Angeles– $500 million project– Approved by city council May 8, 2013

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THE FUTURE‐ PANAMA EXPANSIONTHE FUTURE PANAMA EXPANSION

• Increased Trucking NetworksIncreased Trucking Networks• Miami Access Tunnel at Port Miami

– Twin tunnels under Government Cut– Connections to PortMiami’s roadway– Bridge widening– Completion May 2014/$610 millionp y /$

• Port of Long Beach– Gerald Desmond Bridge Replacement‐ $1.1 billion project to span 

th P t’ B k Ch l ki th b id hi h d idthe Port’s Back Channel making the bridge higher and wider

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PANAMA EXPANSION & INDUSTRYPANAMA EXPANSION & INDUSTRY• US Gas Exports:

• U.S. gas output increased 30% past 5 years• U.S. predicts LNG as largest source of “demand growth” 

(largely to Asia)(largely to Asia)• Predicted U.S. will be 3rd largest net exporter by 2020

• Future of Approved Terminals:Future of Approved Terminals:– 2007‐ 1 export terminal in existence (Alaska)– 2012 (under construction)‐ Sabine Pass Facility (LA)( ) y ( )– May, 2013 (approved)‐ Quintana Island, TX– Approx. 24 terminals awaiting DOE approval

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PANAMA EXPANSION & INDUSTRYPANAMA EXPANSION & INDUSTRY

• Manufacturing support for growth:Manufacturing support for growth:– Airbus in MobileBoeing in Charleston– Boeing in Charleston

– Caterpillar in Athens, GA

P t “ lli ” Di it t l i l• Port “alliances”‐ Disney commits to exclusively use Port of Jacksonville for all imports bound f M i Ki dfor Magic Kingdom

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Thank you!Thank you!Krista Fowler AcunaKrista Fowler Acuna

AttorneyThe Chartwell Law Officeskfacuna@chartwelllaw comkfacuna@chartwelllaw.com

Eugenia KennedySr. Manager Mechanical Engineering

Christopher McCoy

Exponentekennedy@exponent.com

Christopher McCoyExecutive General Adjuster

Engle Martin & Associatesl i

www.theclm.org

cmccoy@englemartin.com