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News, Trends, Analysis China Shipping celebrates 10 years in L.A. amid expansion project Container line China Shipping celebrated ten years of service at the Port of Los Angeles Dec. 1, with a commemorative celebration. China Shipping is in the middle of a six-year expansion project at the Port of Los Angeles, increasing container terminal capacity to 1.5 million. The facility will expand to 142 acres of backland and 2,500 feet of wharves with 10 post-Panamax cranes. A series of environmental projects are included in the expansion project, including: The use of Alternative Maritime Power™ (AMP™) by all cargo ships calling at the terminal by 2011. The Port of Los Angeles says the AMP™ eliminates the release of roughly a ton of ship emissions every 24 hours a ship is at berth. China Shipping was the first container terminal in the world to use AMP™ when it opened the West Basin Container Terminal at Berth 100 in 2004. Instead of running on diesel power while at berth, AMP™-equipped ships “plug in” to shore side electrical power. Use of low-sulfur fuel on container ships within 40 nautical miles of the port. One hundred percent compliance with the port’s Vessel Speed Reduction Program (VSRP) for ships transiting within 40 nautical miles of the port. Use of alternative-fueled tractors. Use of electric rubber-tired gantry cranes. Diesel particulate filters for use on lower-emission switcher locomotives. A main terminal building constructed to “Gold” certification-level Leadership in Energy and Environmental Design (LEED). The China Shipping project also includes several community beautification initiatives, including the development of a new community park in San Pedro (Plaza Park), implementing a Beautification Plan along area corridors and extensive landscaping along Front Street, which runs parallel to the terminal perimeter. Last year, with the help of China Shipping, the Port of Los Angeles imported nearly 4 million TEUs originating from China and Hong Kong a staggering 61percent of all imports. China Shipping Group was founded in 1997 and is headquartered in Shanghai. The company operates five ship fleets of more than 430 vessels with a total carrying capacity of nearly 500,000 TEUs, which includes container ships, oil tankers, bulk ships, passenger ships, and specialized cargo ships. China Shipping operates the West Basin Container Terminal at the Port of Los Angeles, located at Berth 100 in San Pedro. The terminal serves China Shipping, Yang Ming, K-Line, COSCO, Hanjin, Sinotrans, and Zim. China Shipping also has a joint venture with a neighboring container terminal at the port operated by Yang Ming Shipping Line. China Shipping service with the Port of Los Angeles first started on December 3, 1999, when the M/V Trade Apollo, a 2,500-TEU container ship, called at the Yang Ming Terminal from the Port of Xiamen, China. “We look back to the path we took over the past decade and celebrate the triumphs,” said Chairman Li Shaode of China Shipping. “We take pride in our past accomplishments and we want to build on them. We view this anniversary as a new beginning, starting on a new journey hand in hand with our partners.” Con-Way to continue expansion throughout 2010 Con-way Truckload Regional, the short-haul subsidiary of the American freight giant Con-way Inc., announced it would expand its regional service with increased operations across ten U.S. states in 2010. The company said it would add 300 trucks to its fleet by the end of 2010, and plans significant growth in Missouri, Kansas, Iowa, Nebraska, Wisconsin, Minnesota, Illinois, Indiana, Ohio and Kentucky. Ports America lands Baltimore terminal for 50-years Ports America was awarded a 50-year contract by the Maryland Port Administration to operate its 200-acre Seagirt Marine Terminal. The deal includes a 50-foot deep berth to be constructed by Ports America at an estimated cost of $105.5 million. The berth is scheduled for completion by 2014, which would make the Port of Baltimore the second port on the East Coast with a 50-foot berth and channel. The MPA said the project is expected to produce 5,700 new jobs with total investment and revenue from the deal to the State of Maryland having the potential to reach more than $1.3 billion over the life of the agreement, generating $15.7 million per year in new taxes for the state. “This public-private partnership is about three things: jobs, jobs, and more jobs,” said Governor Martin O’Malley. “These challenging economic times call for new ways of doing business. We welcome an internationally respected partner in the maritime field for this unique long-term joint venture. With this agreement, we are able to secure the port’s long-term future with a 50-foot berth, apply an immediate influx of capital for system preservation of roads, tunnels, and bridges, and provide an extended revenue stream to the state,” the governor said. Ports America will be responsible for running the daily operations of the Seagirt Marine Terminal, as well as investing in the new 50-foot berth, cranes, and other infrastructure at Seagirt, the release said. Ports America will make an annual payment and provide ongoing revenues to the MPA during the life of the agreement while the State of Maryland would continue to own Seagirt. Ports America has been the operator of the Seagirt Marine Terminal since it opened in 1990, and has also operated the Dundalk Marine Terminal since 1996. Optimistic report on containerized retail growth in 2010 A U.S. port analysis projected optimism that container volume will grow in early 2010 after 31 straight months of year-over-year declines. In its monthly Port Tracker report, the National Retail Federation announced that although ports saw a 16 percent decline in container volume in September compared with the same month in 2008, the trend could be reversed as soon as February 2010. Riding the rails to over-capacity By John Gray, senior vice president, policy and economics, American Association of Railroads The map shows what will happen if the expected increases in rail traffic occur, but appropriate capacity improvements are not made to accommodate the increases. Today, 88 percent of lines have moderate train flows and adequate capacity to accommodate maintenance and recover fairly quickly from incidents. By 2035, if capacity improvements are not made, the 88 percent (45,819 miles) falls to 45 percent (23,229 miles, green). Today, 9 percent of lines (4,952 miles) are categorized as having heavy train flow with moderate capacity to accommodate maintenance and recover from incidents. By 2035, that goes up to 10 percent (5,353 miles, yellow). Today, 3 percent of lines (1,461 miles) have very heavy train flow with very limited extra capacity to accommodate maintenance and recover from incidents. By 2035, that goes to 15 percent (7,980 miles, orange). Finally, today less than 1 percent (108 miles) have unstable flows and service breakdown conditions. By 2035, that goes to 30 percent (15,778 miles, red). CAT Logistics to open parts distribution center in Ohio Caterpillar Logistics Services announced plans to open a new parts distribution center in southwestern Ohio. The company said the facility would be more than 1 million square feet at an estimated cost of more than $50 million. Construction is expected to begin in early 2010 and be completed in 2011. Caterpillar said the center near Dayton would eventually replace the company’s Indianapolis Regional Distribution facility and take over some of the workload from the company’s parts distribution center in Morton, Ill.	In This Issue Up Front News, Trends & Analysis New Items Transport Economics: Don’t be so gloomy Capitol Watch: From cargo screening to roadability equipment Trade Tools: A different world of trade in 2010 Supply Chain Chris Steele: The corner and what’s around it Compliance Corner: Hot trade compliance issues for 2010 Tech Trends: Five trends for 2010 Commentary David Bennett: Five predictions for 2010 Gateway Glance Georgia Vietnam The Port Community East Coast Ports 2010: Five things to watch for West Coast Ports 2010: The future of West Coast port productitivy? The Shipping Environment: Five sustainable trends for 2010 Product Review: Cranes Casualties Triple-deck trailer barge snaps towline, tankers leak, Coast Guard ice breaker runs aground ... and much more Final Say Your supply chain dynamics: 2010 crisis? Or oppotrunities?
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