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New Items Stimulus Package Unless you were in a coma over the last couple months, you know that President Obama signed the “American Recovery and Reinvestment Act of 2009” (aka stimulus package) into law. The specific funding allocated to infrastructure initiatives is as follows: • $27.5 billion for highway and bridge construction projects • $8.4 billion for mass transit and public transportation projects • $8 billion for high-speed rail projects • $1.3 billion for aviation projects • $4.6 billion for water infrastructure projects undertaken by the U.S. Army Corps of Engineers and $100 million for the Maritime Administration • $1.5 billion for a discretionary program for large multi-modal and intermodal projects in the form of competitive grants to state and local governments for transportation investments — including highway, rail, transit, or port infrastructure People on the Move • Earl Agron, Vice President of Security for APL, was appointed to the National Maritime Security Advisory Committee by the Department of Homeland Security. • On March 1, Jayson Ahern stepped up to be Commissioner of Customs and Border Protection, replacing W. Ralph Basham. • Valerie Bonebrake, global logistics expert, joined Tompkins Associates as the Senior Vice President of Global Supply Chain Services. • Brent Burton, Vice President of Business Development at Salem Logistics, has joined Worldwide Logistics as Director of Business Development/National Accounts. • Peter Cederholm joined the Cargotec Port Security team as Director of Operations, and Sheree Brown became the company’s Project Coordinator. • Sean T. Connaughton, formerly Head of the U.S. Maritime Administration, became the American Bureau of Shipping’s Corporate Vice President for Government Affairs. • AssetNation, an online company specializing in asset acquisitions and sales, appointed Dave Dawson as Chief Executive Officer. • Hellmann Worldwide Logistics, Inc. promoted Sandy DeMaria to Director of Domestic Product Development. • The UPS Board of Directors elected William R. Johnson, the Chairman, President, and CEO of the H.J. Heinz Co., as a new Independent Director of the company. • FreightScan, LLC, hired Randy Richards, the former Vice President of Cargo Sales and Services at US Airways, as its Executive Vice President of Sales and Service. • Port Metro Vancouver’s Board of Directors appointed Robin Silvester as the new President and Chief Executive Officer. • Ken Torok was named President of Global Freight Forwarding Operations for UPS. • Choice Logistics appointed Rob van Doorn as Director for Operations in Europe, the Middle East and Africa, and Asia Pacific. Longview Operating Revenue at All-time High In 2008, operating revenue at the Port of Longview reached an all-time best — $23,486, 930. It was the first time the Port has ever exceeded the $20 million mark, second closest being $19,825,917 in 1999. Operating revenue was 26% higher in 2008 than in 2007. As a result of the record income, net operating revenue (before depreciation) rose more than 100%. Port officials attribute much of the revenue increase to continued wind energy cargo handling. “Everyone in our Longview Port community should be deservedly proud of this record-setting accomplishment,” said the Board of Commissioners’ Executive Director Ken O’Hollaren. Longview recorded 1.3 million metric tons of total cargo handled last year, up 16% from 1.1 million metric tons in 2007. While import tonnages were down 26% for the year, the overall increase was spurred by a 29% increase in the export of bulk cargos, steel, logs, and wind energy cargo. Long BeachOKs Incentives Late February, the Long Beach Board of Harbor Commissioners approved a package of incentives to increase rail-borne cargo through the Port. Beginning in April, Long Beach will offer a 10 percent rate reduction to terminal operators on wharfage fees for all rail-hauled cargo coming through the Port. This would be about $4 to $6 per container and would cost the Port about $11 million for the one-year life of the program. The second incentive will offer $20 to ocean carriers for each additional rail-hauled TEU that they send through the Port. The financial incentive would be $40 for every container longer than 20 feet. “I believe that we have an obligation at this moment in history to demonstrate to our customers, partners, and clients that we are actively engaged in the business of trade, that we understand the pressures they are under, and that we are responding as best we can,” said James C. Hankla, president of the Long Beach Board of Harbor Commissioners. Charleston Launches Truck Partnership A new collaborative program in the Port of Charleston will reduce truck emissions and improve air quality, while saving companies big bucks on their fuel bills. Under the public-private project, trucks serving the Port of Charleston will be retrofitted with emissions-reducing and fuel-saving technologies. Funded in part by an Environmental Protection Agency (EPA) grant received by the South Carolina State Ports Authority (SCSPA), truck owners serving the Port of Charleston may apply for a rebate to help cover the cost for technologies such as auxiliary power units or smaller generators that reduce truck idling. Some truckers have complained that they are already struggling to operate during the recession, and this is not the time to introduce such a program. But Stan Nutt of G&P Trucking, and president of Charleston Motor Carriers Association (CMCA), says, “This project is a win-win for the environment and for trucks operating out of the Port of Charleston.” The SCSPA’s partners include the Charleston Motor Carriers Association, South Carolina Trucking Association, Charleston Metro Chamber of Commerce, S.C. Department of Health and Environmental Control, and the American Lung Association. Seattle Sends People Home The Port of Seattle took drastic action to control costs. 800 non-union employees were told to take a two-week unpaid holiday, and 110 vacant jobs were frozen. Combined, the two actions are expected to save the port $5 million. Like other ports in the nation, Seattle’s container volumes are down — 13.6 percent in 2008. This year, volume is forecasted to drop another 10 percent. The next step for Seattle will be to persuade the dockers’ trade union to cut back. Expect lengthy negotiations in the near future. Global SCALENetwork The Massachusetts Institute of Technology’s Center for Transportation and Logistics (MIT-CTL) has created the MIT Global SCALE Network, an international alliance of leading research and education centers dedicated to the development of supply chain and logistics excellence through innovation. The Global SCALE (Supply Chain and Logistics Excellence) Network spans North America, Latin America, and Europe, with plans to expand into Asia and Africa. It will allow faculty, researchers, students, and affiliated companies from all three centers to pool their expertise and to collaborate on projects. The results will create supply chain and logistics innovations with global applications and help companies to compete in an increasingly complex business environment. “Today’s supply chains stretch around the world and back again, requiring successful organizations to have an on-the-ground understanding of the logistics, supply chain, and general business challenges and opportunities in every region. The Global SCALE Network will provide that global context,” said MIT-CTL Director Yossi Sheffi.	In This Issue News, Trends & Analysis New Items Inventory Investment and the Implications on GDP Growth Supply Chain Responding to Changes in the Supply Chain Compliance Corner: How to Utilize Technology to Manage Global Trade Compliance Overseas Opportunities for Exporters Create a Strategy before Cutting Costs Features Gateway at a Glance – Great Lakes, St. Lawrence Seaway 2009 Ro-Ro Trend Supply Chain product review Automotive Supply Chain Software Ports & infrastructure Five Major Ports, Five Different Ways to Handle the Recession Funding a National Freight Policy Commentary Will the Stimulus Package Help the Trade Conditions? Casualties Who, What, Where, When Final Say
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