New Items

How does your state grade?

U.S. manufacturing and logistics report card 2009
The Center for Business and Economic Research at the Miller School of Business, Ball State University, released the results of its 2009 Manufacturing and Logistics Report Card, which grades states in the following areas of the economy. The specific measures graded include manufacturing and logistics, human capital, the cost of benefits, the global position of the industries, state level productivity and innovation, and the tax climate.

For the full report, go to http://cber.iweb.bsu.edu/research/conexus09/

The top five states in category are:

DHS port security funds coming to your port

The Department of Homeland Security’s (DHS) Federal Emergency Management Agency announced in April it would allocate $388.6 million towards the Port Security Grant Program, of which close to $218 million would go towards a group of major U.S. port regions and marine exchanges.

The port security grant funds are part of $970 million in federal security assistance to state, local and tribal governments, and private industry.

The DHS said the grants would be made on a rolling basis over the summer. From 2003 through 2009, more than $26.7 billion will have been federally allocated towards terrorist defense and response, major disasters or other emergencies, the DHS said.
The DHS said the $388.6 million is “to protect critical port infrastructure from terrorism, enhance maritime domain awareness and risk management capabilities to protect against improvised explosive devices and other non-conventional weapons; and to conduct training and exercises and support implementation of the Transportation Worker Identification Credential (TWIC).”

Major port region and marine exchange DHS funds

• Los Angeles-Long Beach Marine Exchange of Los Angeles Long Beach Harbor, Inc
$37,916,246

• San Francisco Bay Marine Exchange of the San Francisco Bay Region
$26,456,926

• DE/NJ/PA Delaware Bay Maritime Exchange for the Delaware River and Bay
$19,912,982

• LA New Orleans Lower Mississippi River Port-wide Strategic Security Council
$30,370,227

• NY/NJ New York-New Jersey The Port Authority of New York & New Jersey
$45,032,145

• TX Houston-Galveston Harris County, Texas
$32,179,975

• Puget Sound Northwest Maritime Advisory Services (DBA Marine Exchange of Puget Sound)
$26,888,749

Total - $218,757,250

U.S. industrial vacancy to reach 11 percent by end of 2010

The U.S. industrial vacancy rate climbed from 8.9 percent at the end of 2008 to 9.35 percent in the first three months of 2009. There was an additional 48 million square feet of industrial space that came back on the market in the first three months of this year, the largest negative absorption posted in one quarter since 2000, according to CoStar Group’s First Quarter 2009 Industrial Review.

Industrial production, consumer spending, imports and exports have dropped sharply. As of the end of the first quarter of this year, employers had shed 5.1 million jobs since the end of 2007, including 2.1 million in first-quarter 2009 alone -- far higher job losses than the previous recession. CoStar Group’s analysis projects that as a result, 100 million square feet of industrial space will be returned to the market, pushing the national vacancy rate to 11.2 percent by the end of next year.

For the full report see www.costar.com

How clean can your commercial vessel get?

The present and future of cleaner-burning, energy-efficient commercial vessels was on display in April, starting with tug operator Moran converting half of its fleet to cleaner-burning fuels at the Port of Charleston, South Carolina.

Moran’s fuel switch-over was funded through grants awarded by the South Carolina Department of Health and Environmental Control (DHEC) and the U.S. Environmental Protection Agency.

Moran Charleston will upgrade one tug to ultra-low sulfur diesel (ULSD) three years ahead of federal mandate and another tug to a biodiesel blend, the port said. The funding covers the additional cost of buying the cleaner fuel, which ranges from 10 to 22 cents more per gallon than regular diesel. The port said Moran will receive 75 percent of the cost difference in DERA grant funding and will cover the remaining 25 percent.

Moran’s project involves switching its largest Charleston-based tug, the 6,140-horsepower Elizabeth Turecamo, to ULSD. This change will provide an estimated 10 percent reduction in particulate matter emissions. The company also will switch the Cape May, a 3,000-horsepower twin-screw tug, to a B20 biodiesel/ULSD blend, reducing particulate matter by 9 percent, carbon monoxide (CO) emissions by 10 percent and hydrocarbon (HC) emissions by 21 percent.

The Charleston Branch Pilots Association, South Carolina State Ports Authority, South Carolina Public Railways and tenants have also switched to ULSD in all pilot boats, on-terminal lifting equipment, and locomotives, respectively, the port said.

For a peek ahead almost 20 years, Japanese shipping group NYK provided the world with a first glimpse at an initial exploratory design for its “NYK Super Eco Ship 2030,” an energy-efficient ship that the shipping line said is expected to emit far fewer CO2 emissions than current vessels.

The design was created by MTI, a wholly owned NYK subsidiary charged with making use of advances in technology, along with Garroni Progetti s.r.l, an Italian designer of ships, and Elomatic Marine, a Finnish marine-technology consultant.

NYK said its Super Eco Ship 2030 would make use of technologies that have the potential of being realized by the year 2030.

The power needed to propel the ship could be lessened by decreasing the weight of the hull and reducing water friction, NYK said. Propulsion power could be increased through use of LNG-based fuel cells, solar cells, and wind power, leading to a reduction of CO2 by 69 percent per container carried.

People on the move

• The CN Railroad appointed Gordon Trafton senior vice-president, strategic acquisitions and integration; Jim Vena, senior vice-president, Southern region; Mike Cory, senior vice-president, Western region; Jeff Liepelt, vice-president, Eastern region. All four officers will report to Keith Creel, executive vice-president, operations, CN.

• The Port of Oakland named two new port commissioners: Pamela Calloway and James Head. The commissioners were nominated by the mayor of Oakland and appointed by the Oakland City Council.

• The Los Angeles Chapter of WTS (formerly Women’s Transportation Seminar) announced the following 20092010 board of directors for the WTS-LA chapter: Cynthia R. Sugimoto, president (associate principal, Lea + Elliot, Inc.); Ann Jamison, first vice-president of programs (senior project manager, AECOM); Judy Hong, second vice-president of membership; Kathie L. Brabson, treasurer (contracts specialist, Jacobs), Stephanie Leslie, recording secretary (senior \claims analyst, PinnacleOne); Maria A. Guerra, immediate past president (consultant, Maria A. Guerra & Associates). The new WTS-LA directors at large for 20092010 are as follows: Dina Aryan-Zahlan (harbor engineer, chief of design, Port of Los Angeles); Intissar Durham (division manager, Los Angeles World Airports), Doug Failing (director, District 7, Caltrans), Carol Inge (chief planning officer, Metro); Gary Lee Moore (city engineer, City of Los Angeles); Prof. James E. Moore II (professor and chair, Daniel J. Epstein Department of Industrial and Systems Engineering, Andrew and Erna Viterbi School of Engineering, University of Southern California); Rita Robinson (general manager, LADOT), Eric Shen (director, transportation planning, Port of Long Beach)

• CMA CGM (America) LLC expanded the role of Michael Di Caprio, district sales, to overseeing sales in northern Texas, Oklahoma, and Arkansas.

• MOL (America) Inc. reorganized its reporting structure of the trade services department in Concord, Calif. Gareth Osborn (manager, Latin Americas trade), Dominic Chew (manager, reefer trade), and Justine Ganzenmuller (manager, transatlantic services trade) will report directly to T. Yoshida, executive vice president and chief operating Officer, MOL (America) Inc. As part of this reorganization, Frank Masi, vice president, trade services, will be leaving the company to pursue other opportunities. MOL (America) Inc.’s product management team also announced changes to its North America sales management. Dennis Sheehan, vice president, Atlantic services, will direct MOL’s sales activities in the U.S. Northeast, Midwest and Southeast regions, while Jim Galligan, vice president. Pacific services, will lead sales activities in the U.S. Western states and Mexico. In their new assignments, both gentlemen will report directly to Thomas M. Kelly, executive vice president and chief operating officer for North America area management.

• Joseph Hellebrand, a 30-year law enforcement veteran, will serve as chief of the newly created Port Canaveral Police Department.

• ChemLogix LLC appointed Bill Harvey to the position of director of logistics engineering.

In This Issue

News, Trends & Analysis
New Items

Don’t Get Carried Away

Supply Chain
So, how much is this worth, anyway?

Compliance Corner:
Service Providers and Trade Compliance Freight Forwarders need apply!

Five things you should know about auto and logistics software

Distorted Web Sites

Supply Chain product review
Security Software Solutions

Features
Gateway at a Glance Gulf Coast

Supply Security Investments: A Balancing Act

Ports & infrastructure
Major retailer to Southern Cal ports: Requirements are many, costs are high

Port Product Review
Security Equipment

Commentary
Security Issues Impacting the Supply Chain

Who, What, Where, When

Final Say