The Ports of Los Angeles and Long Beach are entering into a new partnership that will include marketing, environmental, safety and supply chain collaboration according to Gene Seroka, executive director of the Port of Los Angeles.
Gene Seroka – executive director, Port of Los Angeles
Gene Seroka – executive director, Port of Los Angeles
Seroka was speaking at an environmental summit at Wilmington, California on January 30th in which he said the new collaboration with the Port of Long Beach will result in “very interesting work”. He said an announcement detailing the collaboration between the two ports will be made in February. The growing partnership between the two ports comes at a time when Los Angeles and Long Beach have invested in mega container terminals to handle mega container ships. The back drop to this cooperation comes from Los Angeles Mayor Eric Garcetti and Long Beach Mayor Robert Garcia both of whom have been recently elected. They have worked to improve relations between the two cities that had deteriorated under their predecessors. The current labor dispute between longshore workers labor and management has slowed deliveries and worsened an already serious congestion problem. Once the dispute is resolved, the two ports are poised to ramp up container handling with new automated technology and greater on-dock rail facilities that already speed cargo from Southern California to destinations as far east as Chicago. The two ports account for 40% of U.S. imports and impact 830,000 jobs in Southern California generating $35 billion in wages and taxes to the U.S. economy, Seroka noted. Seroka said the two ports will be “raising the bar in the next step on clean air” in which environmental improvements will be a major priority. Seroka wants to be “an advocate for the environmental community” with the maritime industry and asked participants to “help me” be a better advocate for their concerns. The Port of Long Beach’s chief executive Jon Slangerup also embraced environmental initiatives during his “State of the Port” speech the day before. Slangerup proposed an “Energy Island” program to explore solutions to the port’s increasing need for electricity. As the port adds more and more zero-emission equipment, the need for electrical power grows. “Energy Island” is a concept that would bring sustainable power technologies into the port, helping to satisfy port needs and to serve as a resource to the community in emergencies. Slangerup has been arguing for ports to take a more dynamic role in addressing: investment in renewable energy, congestion relief and reducing the carbon footprint. Historically, the ports acted as landlords and allowed tenants such as shipping lines, trucking companies and railroads a free hand in their operations. However, public opposition forced the ports to mandate a clean truck program and night- time deliveries to reduce daytime congestion and emissions. Slangerup and Seroka are accelerating this activist trend. Seroka admitted that the two ports are facing a number of serious challenges: • Labor stalemate. The current labor stalemate has resulted in 120,000 containers “with elongated dwell times” so that some businesses are being forced to lay off employees due to lack of supplies. The work slowdown is caused by the dispute between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA). Seroka said that his port’s cargo figures for December and January will not be good as a result. • Less cargo sequencing. The sequencing of containers that was improving cargo deliveries, is now undermined by ocean carriers entering into new alliances and spreading out container deliveries. This means the system of shipping targeted loads of containers has been replaced by what one port official described as a “mish mash”. There has also been a fourfold increase in trucking of containers from the port to near dock rail facilities as opposed to using on-dock rail facilities that eliminate freeway truck moves. Seroka said the ports are urging the ocean carriers to improve sequencing. Long Beach’s Jon Slangerup raised similar concerns at his “State of the Port” speech where he said bigger ships and new alliances have caused more cargo mixes on ships that result in making it harder to sequence and deploy containers. • Worsening impact on truck drivers. Congestion problems worsened by the labor slowdown have had a negative impact on truck drivers working at the two ports. Truckers experience long delays in picking up and delivering containers, “The men and women in the trucking industry are suffering. They cannot make enough turn times.” Seroka said that the drivers are losing money and that the situation cannot continue. A side effect is that more trucks are idling at the two ports and diesel emissions are “spiking”. • Rising debt. The Port of Los Angeles has a $1.1 billion debt and we “are just about tapped out”. Seroka says the bond rating of the Port of Los Angeles remains excellent but he must balance the budget and reduce the debt. By Stas Margaronis, AJOT The Ports of Los Angeles and Long Beach are entering into a new partnership that will include marketing, environmental, safety and supply chain collaboration according to Gene Seroka, executive director of the Port of Los Angeles. Seroka was speaking at an environmental summit at Wilmington, California on January 30th in which he said the new collaboration with the Port of Long Beach will result in “very interesting work”. He said an announcement detailing the collaboration between the two ports will be made in February. The growing partnership between the two ports comes at a time when Los Angeles and Long Beach have invested in mega container terminals to handle mega container ships. The back drop to this cooperation comes from Los Angeles Mayor Eric Garcetti and Long Beach Mayor Robert Garcia both of whom have been recently elected. They have worked to improve relations between the two cities that had deteriorated under their predecessors. The current labor dispute between longshore workers labor and management has slowed deliveries and worsened an already serious congestion problem. Once the dispute is resolved, the two ports are poised to ramp up container handling with new automated technology and greater on-dock rail facilities that already speed cargo from Southern California to destinations as far east as Chicago. The two ports account for 40% of U.S. imports and impact 830,000 jobs in Southern California generating $35 billion in wages and taxes to the U.S. economy, Seroka noted. Seroka said the two ports will be “raising the bar in the next step on clean air” in which environmental improvements will be a major priority. Seroka wants to be “an advocate for the environmental community” with the maritime industry and asked participants to “help me” be a better advocate for their concerns. The Port of Long Beach’s chief executive Jon Slangerup also embraced environmental initiatives during his “State of the Port” speech the day before. Slangerup proposed an “Energy Island” program to explore solutions to the port’s increasing need for electricity. As the port adds more and more zero-emission equipment, the need for electrical power grows. “Energy Island” is a concept that would bring sustainable power technologies into the port, helping to satisfy port needs and to serve as a resource to the community in emergencies. Slangerup has been arguing for ports to take a more dynamic role in addressing: investment in renewable energy, congestion relief and reducing the carbon footprint. Historically, the ports acted as landlords and allowed tenants such as shipping lines, trucking companies and railroads a free hand in their operations. However, public opposition forced the ports to mandate a clean truck program and night- time deliveries to reduce daytime congestion and emissions. Slangerup and Seroka are accelerating this activist trend. Seroka admitted that the two ports are facing a number of serious challenges: • Labor stalemate. The current labor stalemate has resulted in 120,000 containers “with elongated dwell times” so that some businesses are being forced to lay off employees due to lack of supplies. The work slowdown is caused by the dispute between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA). Seroka said that his port’s cargo figures for December and January will not be good as a result. • Less cargo sequencing. The sequencing of containers that was improving cargo deliveries, is now undermined by ocean carriers entering into new alliances and spreading out container deliveries. This means the system of shipping targeted loads of containers has been replaced by what one port official described as a “mish mash”. There has also been a fourfold increase in trucking of containers from the port to near dock rail facilities as opposed to using on-dock rail facilities that eliminate freeway truck moves. Seroka said the ports are urging the ocean carriers to improve sequencing. Long Beach’s Jon Slangerup raised similar concerns at his “State of the Port” speech where he said bigger ships and new alliances have caused more cargo mixes on ships that result in making it harder to sequence and deploy containers. • Worsening impact on truck drivers. Congestion problems worsened by the labor slowdown have had a negative impact on truck drivers working at the two ports. Truckers experience long delays in picking up and delivering containers, “The men and women in the trucking industry are suffering. They cannot make enough turn times.” Seroka said that the drivers are losing money and that the situation cannot continue. A side effect is that more trucks are idling at the two ports and diesel emissions are “spiking”. • Rising debt. The Port of Los Angeles has a $1.1 billion debt and we “are just about tapped out”. Seroka says the bond rating of the Port of Los Angeles remains excellent but he must balance the budget and reduce the debt.