Port of Long Beach’s Cordero concedes losses but notes big ship investments

In his State of the Port 2020, Port of Long Beach Executive Director Mario Cordero noted that the Port experienced a 5 percent drop in volume in 2019 but he remains optimistic due to $4 billion in capital improvements which have made the port capable of handling 18,000 TEU container ships.

China

Cordero told an audience at the Long Beach Convention Center: "This past year, the tariff war with China, our largest trading partner, escalated. Import and export orders declined. Our container cargo volume dropped 5% from the previous year to seven point six million container units. Our overall cargo tonnage also dropped. Because much of our trade is with China, our volumes fell behind the pace of other U.S. ports less tied to the trans-Pacific trade route...Nevertheless, 2019 was our second-busiest year ever for container cargo."

 He expressed the hope that the worst was over with the U.S. trade dispute with China: 

"As to the trade war, we have recently seen progress. The Trump Administration has just signed a phase-one trade agreement with China. More markets will open up to American companies as China eases tariffs on U.S. goods. U.S. farm and energy exports will increase. Still, the agreement preserves the bulk of the existing, higher U.S. tariffs on goods from China. Uncertainty remains in the industry."

Capital Improvements

Cordero then explained the benefits of the Port's capital improvements: "Thanks to years of outstanding financial management we’ve had the resources to invest 4 billion-dollars in major improvements in the last 10 years. This includes our new Administration Building, a new bridge opening soon, and one of the world’s greenest and most technologically advanced terminals.

At the same time, we made operational improvements such as a common chassis pool and truck appointments...A decade ago, the biggest ships coming here, or anywhere in North America, carried 8,000 container units...Today, the largest ships arriving at the Port of Long Beach are as large as 19,000 container units, like the MSC El-Oh-Wan, which arrived at Pier T last year." 

"Our optimism had proven right. We built a better Port. Ahead of other U.S. ports, we have been big ship ready for years."

In their remarks, Cordero and Harbor Commission President Bonnie Lowenthal both praised the quality of the Port's workforce and investments the Port is making at Cal State Long Beach and at Long Beach high schools.

Cordero cited, "Our competitive edge is the productivity and skill of our tenants and labor."

Terminal Upgrades

He then discussed innovations going on at specific terminals:

• Pier A operated by SSA (Stevedoring Services of America): "works with trucking companies like Shippers Transport Express to focus on moving containers off dock as soon as possible. The terminal has made a science of the “peel-off” system."
  
• Matson-SSA at Pier C: "also partners with Shippers Transport using a peel-off system. The companies have an express service. Within 8 hours of discharge from the ship, your container from China will be on a wheeled chassis at an off-dock yard waiting for you. Turn times at Pier C are excellent, and its truck appointment system is part of that."
  
• Pier J’s Pacific Container Terminal: "the Harbor Commission recently approved a 20-year lease extension with SSA and their partner, Cosco Shipping, the world’s third-largest ocean carrier. This gives them a home here in Long Beach through April 2042…In addition, Pacific Container Terminal last year completed the raising of nine cranes - at a cost of 2.7 million-dollars per crane...PCT shuttles 4,000 import containers a week to off-dock yards, with impressive turn times. PCT also initiated truck appointments."
  
• Pier G: "heightened productivity is also a goal for the International Transportation Service terminal. It has expanded its Advent Predictive Availability online system.
  
• This gives cargo owners advanced visibility on ship arrivals, and dramatically improves the cargo-planning process, saving Cargo Owners at least one day in taking delivery of containers...ITS also added a new technology to communicate cargo availability in real-time."
  
• Total Terminals International at Pier T: "not only welcomed the largest ship as I mentioned earlier, and increased its productivity, it also had the most vessel calls of any container terminal in the San Pedro Bay port complex...Total Terminals International added two new cranes big enough to work the world’s largest vessels."
  
• Pier E: "the Harbor Commission approved a new lease for Long Beach Container Terminal (LBCT) with Macquarie Infrastructure Partners. The agreement is through 2051...Macquarie’s acquisition of the leasehold is a major investment here and is yet another vote of confidence for the Port of Long Beach, all its tenants and partners. LBCT’s productivity is extremely high, with crane operators able to lift two 40-foot containers at once...LBCT has also started using API's, a new technology that is making its truck appointment system state of the art. The smart system ties the terminal’s data directly to the trucking companies’ computers. This allows for the automatic creation and management of truck appointments at LBCT. And turn times there are outstanding."
  
• Crescent Terminals/SSA on Pier F: "brings in steel used in fabrication operations, creating local manufacturing jobs. And don’t forget, Mercedes-Benz cars come to Pier F, and then move to the historic Boeing facility near Long Beach Airport for processing."
  
• Metro Ports at Pier G is: "improving its terminal, enhancing operations and performance, with a new ship-loader and extensive renovations to the storage barns on the terminal."
  
• Pier T Marathon Oil: "Just as we see more giant container vessels, so too are we seeing larger oil tankers coming here due to our investment in infrastructure and the implementation of advanced technology."
  

Cordero noted: "Rail improvements make up half of the 2 billion-dollars in capital projects we have coming in the next decade to ensure even more efficient movement."

Collaboration With Port of Los Angeles and Railroads

He noted three other events:

"First, the Port of Long Beach & Port of Los Angeles are finalizing an MOU to further collaboration, as independent ports, to address shared operational matters in the San Pedro Bay Complex.

Second, BNSF has invited the Port Directors to join them on a trade mission to Asia to promote the West Coast Gateway

Third, Union Pacific has rolled out its Unified Plan 2020, which includes a strategy to work with the Ports to further efficient movement of cargo."