Today's Cargo News Archives
Summary for March 17 - March 21, 2008:
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Monday, March 17, 2008

Engine mftg. group supports EPA rule

 CUMMINS INC., on behalf of the Engine Manufacturers Association, affirmed the industry’s support of the US Environmental Protection Agency’s Final Marine Engine Rule announced by the EPA Mar 14.

 Geoff Conrad, Cummins General Manager Marine, made the announcement at a press conference hosted by the EPA.

 The Final Marine Engine Rule is intended to reduce emissions from diesel-fueled engines installed in marine vessels and locomotives. The legislation completes a series of national emissions standards that apply to diesel engines used for a range of major applications.

 “New, tough emissions standards will slash pollution from locomotive and marine diesel engines by up to 90%, helping Americans to breathe cleaner air as soon as this year,” the EPA said in its announcement.

 For the first time ever, this rule requires remanufacturing standards for marine engines, reductions in engine idling, and the use of after-treatment technology that will further reduce diesel emissions, according to the EPA.

 Phasing in tighter long-term standards for PM and NOx will begin in 2014 for marine diesel engines and in 2015 for locomotive engines. Advanced after-treatment technology will apply to both types of engines.

 Web sites:

 Cummins Inc.

 Final Marine Engine Rule

MSC adds vessel call to New Orleans

 MEDITERRANEAN Shipping Co. Mar 12 announced that it will immediately open a direct shipping line between New Orleans and docks on the west coast of South America, adding one vessel call per week to the Port of New Orleans.

 The new service is “a coup” that will bring New Orleans more business from a major shipper, said Conrad Appel, a former chairman of the Dock Board of the Port of New Orleans who advises Greater New Orleans Inc. on maritime issues.

“What this means is that New Orleans can be considered a blooming but potentially major player in the container ship trade,” Appel said. “It demonstrates their confidence in the Port of New Orleans as a gateway.”

 Allen Clifford, MSC’s executive vice president, said New Orleans will play an important role in his company’s future.

 “I think that New Orleans has positioned itself as a very, very significant port in the Gulf,” Clifford said. “New Orleans has a good intermodal system. It is situated in an area that can capture other cargoes from other areas in other states.”

 Currently, two MSC vessels call per week to the Port of New Orleans from wharves on the east coast of South America and in Europe.

 Web site:

 Mediterranean Shipping Co

 Port of New Orleans

POLB wants to build green HQ

 THE PORT of Long Beach Mar 13 announced it is proposing to build a new, certified environmentally friendly complex on a 17-acre site just east of the current port headquarters.

 The new construction would replace a nearly 50-year-old obsolete administration building and maintenance facilities, the port said.

 “This upfront investment would give us long-term savings on energy costs, a more efficient workplace, and more publicly accessible facilities,” said Port Executive Director Richard D. Steinke. “This facility would symbolize the new business, environmentally, and community friendly port.”

 The complex would also provide amenities for the community, such as public meeting rooms, a public cafeteria with outdoor access, an outdoor amphitheater, gardens for special functions, and a mile-long walking trail, the port said.

 The new complex would qualify for certification as a “Leadership in Energy and Environmental Design” (LEED) and would maximize the use of natural light.

 The port will hold a series of public meetings to gather input on topics to be addressed in the Environmental Impact Report. Currently scheduled meetings are Mar 25 and Mar 31.

 Web site:

 Port of Long Beach

Tuesday, March 18, 2008

LA posts final Clean Truck Program

 THE PORT OF Los Angeles Mar 17 posted its final recommendations for its Clean Truck Program.

 The Los Angeles Harbor Commission will consider the proposed program recommendations at its Mar 20 special board meeting, 9:00 a.m. at Banning’s Landing Community Center in Wilmington.

 A major part of the recommendations calls for trucking companies committing to using employee drivers for port drayage “by the year 2012 through a phased-in schedule, with flexibility afforded for peaks and troughs in demand by use of temporary or part-time employees,” the port said.

 “The trucking system serving our ports is broken and cannot be permanently fixed without a major transformation,” said Geraldine Knatz, Port of Los Angeles executive director.

 “Our Clean Truck Program offers incentives that will help us reach the 80% truck pollution reduction target as quickly as possible, encourage participation from legitimate outside operators, and provide the most sustainable long-term solution for protecting public health and safety,” Knatz continued.

 The proposed recommendations are designed to “achieve long-term sustainability, accelerate the replacement of high-polluting trucks with cleaner trucks, and provide market incentives to encourage private investment,” port authorities said.

 Web site:

 Port of Los Angeles


ILWU, PMA start talks early

 THE INTERNATIONAL Longshore and Warehouse Union and the Pacific Maritime Association Mar 17 began negotiations on a new waterfront labor contract for West Coast ports, hoping to resolve key issues and concerns well before the current six-year contract expires on Jul 1, 2008.

 The ILWU represents approximately 25,000 workers at 29 West Coast ports in California, Oregon, and Washington.

 The PMA represents 79 cargo carriers, terminal operators, and stevedores operating on the West Coast. PMA members handle the ocean shipment of more than 77% of the nation’s inbound container cargo from Asia.

 “Both sides recognize that the ports are really an economic engine for the US,” said PMA spokesman Steve Getzug. “There’s optimism in beginning the talks early that there can be an agreement reached without disruptions.”

 “Right now, we’re going into the negotiation with the best of faith,” said union spokesman John Showalter.

 The association said it was seeking productivity increases from dockworkers through shift adjustments and technology upgrades. The union is seeking better safety standards, air pollution regulations, and increased compensation.

 Web sites:

 International Longshore and Warehouse Union

 Pacific Maritime Association


CN to invest $300mn in US rail projects

 CN Mar 18 announced plans to invest more than $300mn in rail infrastructure projects in the United States this year “to maintain a safe railway and improve the productivity and fluidity of its network.”

 CN also announced plans to invest approximately C$430mn in rail infrastructure projects in Western Canada, targeting replacement of rail, ties and other track materials, and bridge improvements.

 The company is also investing in extended sidings and terminal improvements to grow its business and permit more efficient movement of traffic in Western Canada, including CN’s line to the new Port of Prince Rupert container terminal.

 Gordon Trafton, senior vice president, southern region, said, “Our investments in rail infrastructure will ensure plant quality and safety for our customers and the communities in which we operate, improve rail productivity, and position us to take advantage of growth opportunities.”

CN’s southern region capital program is part of a plan to invest approximately $1.5bn company-wide in 2008, of which more than $1.1bn will be focused on track infrastructure, the company said.

 Web site:


Wednesday, March 19, 2008

Ports plan to cut emissions from ships

 THE LONG BEACH and Los Angeles Boards of Harbor Commissioners will vote Mar 24 on a bold plan to get vessel operators to switch to a cleaner-burning fuel within 40 miles of the ports of Long Beach and Los Angeles in a joint program to improve regional air quality, the ports announced Mar 18.

 The proposal by the ports would employ incentives to encourage vessel operators to use cleaner-burning, low-sulfur fuel in their main propulsion engine.

 Sulfur oxides, which contribute to the formation of health-threatening soot or particulate matter, would be cut by as much as 11% and particulate matter by 9%, accelerating air quality improvements ahead of an already aggressive schedule set by the landmark San Pedro Bay Ports Clean Air Action Plan.

Cargo ships now generally use highly polluting bunker fuel, making ocean-going vessels the single largest source of air pollution at the two ports, said the announcement.

Under the incentive proposal, the ports would pay the difference between the price of bunker fuel and the more costly low-sulfur distillate fuel for vessel operators who make the fuel switch within at least 20 miles and out as far as 40 miles from the ports.

 Vessels will also be required to use low sulfur fuel in their auxiliary engines while at berth in the port complex.

 Web sites:

 Long Beach

 Los Angeles


Panama Canal contracts for new dredge

 THE PANAMA Canal Authority (ACP) Mar 17 announced that it has awarded the contract to design and build a new, more powerful cutter suction dredge to IHC Beaver Dredgers BV.

 The ACP awarded the $95.920mn contract to bidder IHC Beaver Dredgers BV after reviewing its proposal to ensure that all requirements were met. Dredge construction will begin within the coming months.

 The new 12,000kw dredge will replace “Mindi,” which has been in service at the Canal since 1942 and has only a 9,000kw capacity. With an expected delivery date of May 2011, the new dredge “will have the modern equipment, systems, and components required for efficient operation,” canal authorities said.

 “With this new dredge, the ACP will boost the production capacity of our dredging fleet. This increase is necessary to meet the demands of the expansion, as well as the maintenance and modernization projects of the waterway,” said Manuel Benitez, ACP vice president of operations.

 The new dredge will be constructed in The Netherlands and will have the capacity to dredge along the entire Canal including the Gaillard Cut (the narrowest stretch in the Panama Canal), Gatun Lake, and both Atlantic and Pacific entrances, at a depth of 25 meters, even after the expansion concludes.

 Web site:

 Panama Canal Authority (ACP)


DHL honored for national support

 DHL, the world’s leading express delivery and logistics company, Mar 18 announced that it has received the “Chairman’s Above and Beyond Award” from Employer Support of the Guard and Reserve.

 The Ohio Committee of the EGSR annually recognizes those individuals and organizations that demonstrate outstanding service to the nation’s defense through continuing support of the National Guard and Reserve service members and their employers.

 An employee based in Ohio nominated DHL for the award due to the support he received over the years as a reservist.

 DHL was awarded for going “above and beyond” the legal requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA) over the past year for granting leave and providing support for military duty by its employees.  

 “DHL is proud of its brave servicemen and women who have sacrificed for this country, and for their service with US National Guard and Reserve,” said Tom Snowberger, senior vice president of human resources for DHL.

 ESGR’s goal is to “support America’s employers who share their employees with the Department of Defense to ensure our national security,” said DHL.

 Web site:


Thursday, March 20, 2008

CARB Oakland study released

 THE CALIFORNIA Air Resources Board Mar 19 announced the preliminary results from a comprehensive health risk assessment study for the community of West Oakland.

 The report shows that the greatest health dangers related to toxic air emissions stem from diesel trucks traversing the freeways and other roadways around West Oakland and the Port of Oakland. Port operations were the next-biggest source, followed by emissions from the large railyard adjacent to the port.

 The analysis covers 3.1mn people who reside in the affected area of 3,800 sq miles. 

 The report found that residents had an elevated risk of cancer — nearly 1,200 additional cancers per million people — due to long-term exposure to diesel particulate matter.

 In the development of the ship emissions, CARB staff used transponder data to more accurately estimate where off-shore emissions are occurring. For the first time in a large risk assessment, a regional wind field was generated using data from 30 onshore and three offshore weather stations.

 Later this year, CARB will be considering proposed regulations involving on-road heavy-duty diesel vehicles (trucks and buses) and ocean-going vessel main engines to further reduce diesel soot.

 Web site:

 California Air Resources Board

DHL lands $600mn car deal

 DHL EXEL Supply Chain Mar 19 announced that it has been awarded a three-year contract worth more than $200mn per year — its biggest automotive sector deal — to manage in-plant logistics and the collection of UK- and European-sourced component parts for Jaguar and Land Rover vehicles.

 The deal, subject to contract, will see “DHL, the world’s leading logistics provider, support the annual build of more than 300,000 cars,” the company said. It cements DHL’s position as the “leading player in the UK automotive market,” DHL said.

 DHL Exel Supply Chain will be managing Jaguar and Land Rover suppliers to ensure they are shipping the right materials at the right time, as well as providing a dedicated team focused on improving the UK and EU collections operations, the company said.

 “This contract is hugely exciting for us and is testament to the expertise that DHL has established within the automotive sector,” said Bruce Edwards, CEO, DHL Supply Chain, Corporate Information Solutions.

 DHL Exel Supply Chain has more than 20 years experience in the automotive sector.

 Web site:

 DHL Exel Supply Chain


Penske opens $9mn Sun Valley facility

 PENSKE Truck Leasing Mar 19 hosted the grand opening of its new $9mn facility in Sun Valley, CA.

 The 16,000-sq-ft state-of-the-art building offers commercial and consumer truck rental services, full-service truck leasing, and contract maintenance. About 70 leasing customers are serviced from this five-acre location and more than 450 vehicles are maintained on-site, the company said.

 The expansive structure features “three service bays, an automated truck-washing bay, and a two-lane fuel island with high-speed fuel pumps for fast, efficient service,” Penske said.

 A new wireless technology component allows Penske service technicians to integrate various vehicle diagnostic and repair software. To save energy, GE fluorescent light bulbs with electronic ballasts using 50% less energy have been installed.

 “This new facility will consolidate Penske’s operations in the San Fernando Valley,” said Peter Weeks, senior vice president, western region.

 Penske Truck Leasing is a joint venture of Penske Corp. and General Electric. A leading global transportation services provider, Penske operates more than 220,000 vehicles and serves customers from more than 1,000 locations in North America, South America, Europe, and Asia.

 Web site:

 Penske Truck Leasing

Friday, March 21, 2008

Port of NY/NJ sets 2007 cargo record

 RECORD 2007 CARGO volumes at the Port of New York and New Jersey were announced Mar 20 by port executives and NJ Gov. Jon S. Corzine.

 The number of loaded TEUs handled by the port last year rose 7.6% over the previous year. The dollar value of all cargo handled through the port in 2007 exceeded $166bn for the first time, up 11%, the port said.

 The number of loaded and empty TEUs handled in the port was 5,299,105, another all-time record.

 With growth at the port expected to continue over the next 10 years, the governor and the port authority also detailed the expansion efforts at the port and the steps being taken to ensure it remains “the economic generator for the region,” the port said.

 Those steps include the addition of 119 acres on the eastern end of the Port Jersey peninsula for the potential redevelopment of new cargo container space.

 The land addition, coupled with New Jersey’s current project to deepen the Port Jersey Channel to 50 ft, will allow many of the world’s largest ships to serve it when the channel is deepened in 2012.

 Web site:

 Port of New York and New Jersey


LA port approves Clean Truck Program

 THE LOS ANGELES Harbor Commission Mar 20 approved a landmark Clean Truck Program.

 The program is designed to achieve long-term sustainability, accelerate the replacement of high-polluting trucks with cleaner trucks, and provide market incentives to encourage private investment and create a capitalized, asset-based short-haul trucking or “drayage” system at the nation’s largest container port.

 Port of Los Angeles drayage concessionaires must commit to using employee drivers for port drayage by 2012 through a phased-in schedule, “with flexibility afforded for peaks and troughs in demand by use of temporary or part-time employees,” according to port authorities.

 By all accounts, the cost of replacing the present truck fleet will raise the price shippers pay to move their cargo through the San Pedro Bay ports.

 But at an incremental cost of $500mn over a non-asset and employee-based drayage model, the additional cost of the Port of Los Angeles’ system is less than the externalized, public-borne costs ($500mn to $1.7bn annually) that are offset by a transformed drayage market, the port said.

 According to a drayage options analysis performed by the Boston Consulting Group, the employee-based system should deliver a positive cost/benefit ratio from 2010 onwards.

 Web site:

 Los Angeles Harbor Commission


LA/LB ports seek public comment

 THE PUBLIC is invited to a community meeting hosted by the ports of Long Beach and Los Angeles and the South Coast Air Quality Management District to gather comments on plans for the use of Proposition 1B air quality improvement funds, the ports announced Mar 20.

 The ports and SCAQMD are planning to apply for funding to help with emission-reduction projects in categories including short-haul trucks, harbor craft, oceangoing vessels, cargo-handling equipment, and locomotives, the ports said.

The agencies are seeking the public’s input as they prepare to apply for funds from the Proposition 1B: Goods Movement Emission Reduction Program, approved by voters in November 2006.

At the meeting, the ports and SCAQMD will provide a brief presentation of their plans and Proposition 1B guidelines. They will then take comments and suggestions from the public, the ports said.

 The meeting will be held Tues., Mar 25, at 2 p.m., at the Port of Long Beach Administration Building, 925 Harbor Plaza, Long Beach.

The ports and SCAQMD will apply to the California Air Resources Board by Apr 4, 2008.

Web site:

 Long Beach

 Los Angeles

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