New Items

People, Projects and Companies on the Move

MOL (America) Inc. announced it would relocate its North America headquarters, including trade management staff, from Concord, Calif. to Lombard, Illinois. MOL said the staff relocation to Lombard is scheduled for early August 2009.

NYK Logistics Americas, Inc. announced the opening of a 100,000 square-foot reverse logistics facility in Spartanburg, SC.

Amid a corporate shakeup, YRC Worldwide Inc. announced that the following new appointments, in addition to those staying in their current roles, will now report directly to Bill Zollars, the chairman, president and CEO of YRC: Former Sprint executive John Garcia, now executive vice president and chief sales officer; Mike Smid, president, YRC Inc. and chief operations officer; Tim Wicks, executive vice president and chief financial officer; Sheila Taylor, vice president, finance and investor relations; she will also assume the role of treasurer reporting to Wicks; Greg Reid, executive vice president and chief marketing officer; Mike Naatz, executive vice president and chief Information and service officer; John Carr, assuming the role of president for YRC Logistics; Dan Churay, executive vice president, general counsel and secretary; and Jim Kissinger, executive vice president of human resources.

Dow Chemical is going to invest $200 million developing a logistics center for its chemicals supply chain business in Tianjin, China. The logistics center will provide liquid chemicals storage service and could handle up to nine million tons of liquid chemicals per year.

Barry Horowitz has returned to his consulting practice at CMS Consulting Services LLC, effective from June 1. He most recently served, since May 2005, as general manager container marketing at the Port of Portland and will continue to work with the port as a consultant. Horowitz said his focus would be on projects across the entire trade and transportation industry spectrum. He will continue to be based in Portland, Ore

Halcrow named Guillaume Lucci regional manager Latin America, maritime.

Coca-Cola Hellenic Bottling announced it entered into an agreement with Campbell Soup for the distribution of Campbell soup and broth products in Russia.

South Korea’s Hanjin Shipping announced the opening of its Busan New Port Phase 2-1 Terminal, which includes three berths running a full kilometer and 18 meters along side, able to handle up to three 12,000-TEU ships simultaneously.

Deep Columbia Major river system lands stimulus funds
The project to deepen the Columbia River from 40 feet to 43 feet deep could be completed by spring of 2010, according to the U.S. Army Corps of Engineers upon the announcement from U.S. Senator Patty Murray that $26.6 million in stimulus funding would be allocated towards the project.

The latest funding is courtesy of the American Recovery and Reinvestment Act (ARRA). The Columbia River channel was reportedly not to be included in the list of ARRA projects, but Senator Murray, a senior member of the Senate Appropriations Committee, said she pushed for the channel funds.

“This is a big victory for our state and the entire Northwest,” said Senator Murray. “After years and years of work, we are now on the verge of ensuring the Columbia River remains the economic engine of the Northwest. A deeper channel will enable us to accommodate the modern fleet of larger ships, which will help save jobs and keep our state’s goods moving. Funding the completion of this efforts is exactly the kind of project the Economic Recovery Act was designed to support.”

The ARRA funding will be used primarily for one mile of rock removal near St. Helens, Oregon.

The U.S. Army Corps of Engineers began deepening the Columbia River Navigation Channel in June 2005. As of January 2009, the Corps had deepened more than 80 percent of the navigation channel. Funding has reportedly been appropriated to complete the rest of the deepening work and all the environmental features on the Columbia River.

Statistics reported by the Columbia River Channel Coalition claim regional businesses and farmers would see $18.8 million in annual transportation savings, and 6,000 tons more cargo could be loaded per ship with a 43-foot deep channel.

Transportation leaders eye the future of moving cargo

Following are samplings from the group’s look forward:

2007 container levels might be 2-3 years off.

After 2012, imports will start growing faster than exports again.

Older populations are spending more money on services than goods.

Manufacturing industry wage comparisons still favor overseas production. The demographic trends are not changing, which makes the future look more promising for the shipping industry.

Next 10 years, agriculture exports will provide huge uplift for U.S. ag sector, and will positively impact containerization, especially for the West Coast and the PNW.

Mexico becoming more of a re-export center than a serious manufacturing threat to China/Asia.

Wallenius Wilhemsen: 20 percent of fleet is in “cold lay-up.” Would take 6-8 weeks to get those ships back into service.
Port of Tacoma: We’ll experience a turnaround in our economic lives sooner than the ocean carriers will.

UP: Focused more on productivity enhancements.

BNSF: Sees trade re-emerging more towards end of 2010.

Port of Tacoma: What we do for the long run is more important. Focusing capital investment to achieve efficiencies. Focusing investments where they can have greatest environmental effect. Trying to drive as much volume through existing capital assets as possible.

Washington United Terminals (Hyundai): Once the volume comes back, doesn’t mean we can go out and get those revenues back right away.

Group comments on impacts of East Coast and Panama Canal expansion on West coast: East Coast seems to be moving through productivity challenges better than [West Coast] • 33-36 percent migration of cargo to East Coast • All-water services into the Southeast are impacting West Coast eastward intermodal moves • Still takes 75-80 gallons per mile to move a containership • If something happens that causes a spike in oil, it will impact the Panama Canal • Most of freight in NY has moved all-water • Great infrastructure and depth on West Coast • East Coast port drafts are a concern • Infrastructure is a concern back East.

Meeting the challenge of global economic change was the theme at the Port of Tacoma’s annual breakfast gathering in late April, which featured a group of transportation leaders and included their collective forecasting into the not-too-distant future of global freight movement in and out of the U.S.

The speakers included a keynote address by Cargo Business News monthly columnist Dr. Walter Kemmsies, the chief economist for Moffatt & Nichol, who also led the following group representing different modes of transport: Chris Connor, president, region Americas, Wallenius Wilhelmsen Logistics; Timothy J. Farrell, executive directogr, Port of Tacoma, John Kaiser, vice president and general manager, intermodal and marketing sales, Union Pacific Railroad; Fred Malesa, vice president, international marketing, BNSF Railway; and Mike Lingerfelt, president, Washington United Terminals.

D.O.T. announces $1.5 billion in TIGER grants
U.S. Transportation Secretary Ray LaHood announced in May the U.S. Department of Transportation would make available $1.5 billion in TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grants for capital investment in surface transportation projects.

The grants will be awarded on a competitive basis to projects that have a significant impact on the nation, a region or metropolitan area and can create jobs and benefit economically distressed areas, the DOT said.

“TIGER discretionary funding will open up the door to many new innovative and cutting-edge transportation projects,” said Secretary LaHood. “This is exciting news and I believe that these projects will promote greater mobility, a cleaner environment and more livable communities.”

The DOT said the grants could range from $20 million up to $300 million to support high impact transportation projects. Secretary LaHood said he could waive the minimum grant requirement for beneficial projects in smaller cities, regions or states. The DOT said it would “require rigorous economic justifications for projects over $100 million. To ensure responsible spending, the department will require all fund recipients to report on their activities on a routine basis.”

The DOT said primary selection criteria includes: contributing to the medium- to long-term economic competitiveness of the nation; improving the condition of existing transportation facilities and systems; improving the quality of living and working environments through livable communities; improving energy efficiency and reducing greenhouse gas emissions; and improving the safety of U.S. transportation facilities.

The DOT said it would also give priority to projects that are expected to quickly create and preserve jobs and stimulate rapid increases in economic activity, especially projects that could benefit economically distressed areas.

The DOT said applications for TIGER discretionary grants must be submitted by September 15, 2009, from state and local governments, including U.S. territories, tribal governments, transit agencies, port authorities and others.

Southern Cal Clean Truck FeeWho Pays, Who Doesn’t Pay

In This Issue

News, Trends & Analysis
New Items

One big reason for a weak global trade outlook

Supply Chain
Public-private partnerships:
Inviting others to the table

Keeping your cargo cool

Compliance Corner: What you need to know about export commodity control numbers

Supply Chain product review
Communication technologies

Features
Gateway at a glance – Latin America

U.S. domestic shipping looks ahead

Ports & infrastructure
East Coast ports and terminals moving dirt, doing deals

Port Product Review
Refrigeration technologies

Commentary
Difficult times create opportunities

Who, What, Where, When

Final Say