port congestion challenges & solutions a california...
TRANSCRIPT
Port CongestionPort Congestion
Challenges & Solutions Challenges & Solutions AA California PerspectiveCalifornia Perspective
Presented to:Presented to:
AAPA AAPA -- ChicagoChicagoApril 28, 2005April 28, 2005
Paul Larking, Paul Larking, SynchroNet Marine, Inc. San Ramon, CaliforniaSynchroNet Marine, Inc. San Ramon, California
www.synchronetmarine.comwww.synchronetmarine.com
The Perfect StormThe Perfect Storm
Unprecedented Cargo GrowthUnprecedented Cargo Growth
Population GrowthPopulation Growth
Traffic CongestionTraffic Congestion
Air and Noise PollutionAir and Noise Pollution
Community Community ‘‘Quality of LifeQuality of Life’’ ConcernsConcerns
Safety and Security RequirementsSafety and Security Requirements
Infrastructure Funding LimitationsInfrastructure Funding Limitations
Motor Carrier and Labor ShortagesMotor Carrier and Labor Shortages
Legislative InvolvementLegislative Involvement
II--710 Freeway in Southern California 710 Freeway in Southern California Under Normal Conditions & During The Under Normal Conditions & During The 2002 Shut Down Of West Coast Ports2002 Shut Down Of West Coast Ports
Managing GrowthManaging Growthis a Major Challengeis a Major Challenge
Port of OaklandPort of Oakland---- 1.9 million TEU1.9 million TEU’’s in 2003s in 2003---- 4.8 million TEU4.8 million TEU’’s by 2020s by 2020
Ports of Los Angeles/Long BeachPorts of Los Angeles/Long Beach---- 11.8 million TEU11.8 million TEU’’s in 2003s in 2003---- 36.0 million TEU36.0 million TEU’’s by 2020s by 2020
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 San Pedro Bay PortsImpact of International Trade Through San Pedro Bay Ports
Portsof LALB
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
Portsof LALB
Port ofOakland
Combined Impact
$ 235 Billion
Daily Truck Traffic to and From Daily Truck Traffic to and From California Ports Will Grow DramaticallyCalifornia Ports Will Grow Dramatically
40,000
62,000
112,000
0
20,000
40,000
60,000
80,000
100,000
120,000
2000 2010 2020
Congestion Is Hurting our Congestion Is Hurting our EconomyEconomyas well as our as well as our Quality of LifeQuality of Life
Delays, accidents, and Delays, accidents, and freight transportation freight transportation costs are increasingcosts are increasing
Goods movement Goods movement facilities have not kept facilities have not kept up with growthup with growth
Communities Communities increasingly calling increasingly calling for slow growth or for slow growth or no growthno growth
Legislative Initiatives to Mitigate Legislative Initiatives to Mitigate Impact at California PortsImpact at California Ports
Passed into Law January 1Passed into Law January 1stst 2004:2004:AB2650 AB2650 -- Limits truck waiting time outside marine terminalsLimits truck waiting time outside marine terminals
Pending Legislation Before the State Senate:Pending Legislation Before the State Senate:SB 760 SB 760 -- Levy a $30/TEU surcharge for LALB shipmentsLevy a $30/TEU surcharge for LALB shipmentsSB 761 SB 761 -- Limit truck processing time within marine terminalsLimit truck processing time within marine terminalsSB 762 SB 762 -- Establish requirements for truck registrationEstablish requirements for truck registrationSB 763 SB 763 -- Priority berthing program for low sulfur vessels Priority berthing program for low sulfur vessels SB 764 SB 764 -- Zero Net Pollution for LALB Ports (2001 baseline)Zero Net Pollution for LALB Ports (2001 baseline)SB 45 SB 45 -- Regulate detention, per diem and demurrage chargesRegulate detention, per diem and demurrage charges
Pending Legislation Before the State Assembly:Pending Legislation Before the State Assembly:AB 1276 AB 1276 -- Congestion management on key intermodal corridorsCongestion management on key intermodal corridorsAB 1678 AB 1678 -- Cold ironing facilities for cruise vesselsCold ironing facilities for cruise vesselsAB 888 AB 888 -- Rail yard emission reduction programRail yard emission reduction programAB 1222 AB 1222 -- Locomotive emission testing and replacementLocomotive emission testing and replacement
Operational Initiatives to MitigateOperational Initiatives to MitigateImpact at California PortsImpact at California Ports
Appointment Systems Appointment Systems -- eModal or VoyagertrackeModal or VoyagertrackExtended Gate Hours Extended Gate Hours -- PierPassPierPassPort Wide Chassis PoolsPort Wide Chassis PoolsIntermodal Rail Services Intermodal Rail Services -- Alameda CorridorAlameda CorridorShort Sea Services Short Sea Services -- Humboldt Bay BargeHumboldt Bay BargeIncreased use of OnIncreased use of On--Dock RailDock RailLocal Shuttle Trains Local Shuttle Trains -- Inland Empire & ShafterInland Empire & ShafterTrucking CoTrucking Co--operatives operatives -- Efficient Dispatch Efficient Dispatch Virtual Container Yard Virtual Container Yard -- Equipment MatchingEquipment Matching
The VCY connects Trucking Companies with Shipping Lines through a neutral technology platform to:
$ - Reduce marine terminal congestion and empty storage
$ - Reduce direct transportation costs and truck idling time
$ - Reduce traffic congestion and toxic diesel emissions
$ - Improve driver efficiency and effective land use
The “VCY” enables users to share information and to interchange empty container equipment, off-dock, via the Internet
The Virtual Container YardThe Virtual Container Yard“VCY” Solution“VCY” Solution
Equipment Re-Use or Street-Turn Scenario Stockton Area
Marine Terminal
Loaded Leg
Empty Leg
Supplying Trucker
Receiving Trucker
Ocean Carrier
Port of Oakland
Stockton
On-line approval for valid Motor Carriers
Single party billing for equipment damage
Liability transfer between Motor Carriers
Automatic updates to Shipping Line systems
CommunicationCommunicationProcess:Process:
AutomatedAutomatedPostingPosting
of Equipment of Equipment InformationInformation
ExecutionExecutionProcess:Process:
Integrated with Shipping Line
Equipment ControlSystems
Virtual Container Yard Architecture
InternationalStreet-Turn
EmptyDispatch Depot
Direct On-Hire
InternationalRe-Use
InterchangeRe-Use
Standard community guidelines & standard EIR
terms
Liability transferred,Additional free days provided
Continued single party billing for equipment damage
Shipping Linevisibility to
approval and confirmation
process
Shipping Linebusiness
rules, special terms and conditions
Addresses Legal and Liability Issues
Online Community Member Integration
Portfolio of Off-Dock Equipment Matching Opportunities
EmptyDispatch Rail
InterchangeStreet-Turn
Direct Off-Hire
VCY Benefits for Northern California
= Approximately 125,000 less truck trips per year
= $30 Million in transportation cost savings
= Three Million truck miles saved
= 500,000 gallons of diesel fuel saved
= Measurable quality of life improvements (emission reductions and commute time)
= $100-$200 Million in deferred capital cost (Port and Public transportation infrastructure)
Full implementation of the VCY in Northern Californiawill deliver a 10% gain in operating efficiency:
Benefits multiply as trade volumes continue to grow
Examples of CollaborationExamples of Collaborationand Coalition Building Effortsand Coalition Building Efforts
AB2043 AB2043 -- Port Master Plan Task Force BillPort Master Plan Task Force BillTo create a body that will review issues such as To create a body that will review issues such as port security, environmental consequences and port security, environmental consequences and mitigation measures for growth, as well as mitigation measures for growth, as well as improved statewide coordination of California Ports. improved statewide coordination of California Ports. The bill calls for a strategic plan by Jan 2006The bill calls for a strategic plan by Jan 2006
MTODA MTODA -- West Coast Marine Terminal West Coast Marine Terminal Discussion AgreementDiscussion Agreement
LALB LALB -- Integrated Work Program to Reduce Integrated Work Program to Reduce Truck TrafficTruck Traffic
Oakland Oakland -- Port Access Task ForcePort Access Task Force
Truck Co-operativesFor Efficient
Land use
ExtendedGates
& ShuttleServices
Truck Route
& TruckRetrofit
ITS InitiativeSmart
Corridor& 511
StreamlinedAppointment
Systems
Virtual Container
Yard
Marine Terminal
Access & PortSecurity
EnvironmentalConsiderations
& Quality of Life
Issues
Port-WideChassis
Pool
OaklandPort Access
Growth in Trade
2004 -20202.0 - 4.5
Million TEUS
SecurityRequirements
& LegislativeObligations
TruckCongestion,Port Access
& GoodsMovement
CoalitionBuilding
InformationSharing
- Community Considerations
- Elements of a Regional Information Community Portal
Collaborative Vision for Greater Efficiency
Call to ActionCall to Action
Congestion is a National Phenomenon Congestion is a National Phenomenon
There is no single solution (Silver Bullet) to this There is no single solution (Silver Bullet) to this problem. Progress will be made through series problem. Progress will be made through series of initiatives and integrated solutionsof initiatives and integrated solutions
The Transportation Community is encouraged:The Transportation Community is encouraged:
To engage Innovative Technology Solutions To engage Innovative Technology Solutions
To foster Process Automation and Data IntegrationTo foster Process Automation and Data Integration
To streamline Applications for Ease of Use To streamline Applications for Ease of Use
To continue Coalition Building efforts and embrace To continue Coalition Building efforts and embrace opportunities for Public/Private Collaborationopportunities for Public/Private Collaboration
Thank You
Thank YouThank You