Summary for December 10 - December 14, 2007:
Monday, Decembe 10, 2007Commission OKs LA port expansionAFTER MORE than 6 hours of public testimony, the Los Angeles Harbor Commission Dec 7 voted 4-0 to certify the final Environmental Impact Report for the $1.5bn upgrade at the TraPac Terminal, the first major capital improvement project in the San Pedro Bay Port in seven years. About 200 people attended the commission hearing at Banning’s Landing Community Center in Wilmington. “This is the best thing that’s happened here in two years,” said Geraldine Knatz, executive director of the port of Los Angeles. “We’re on our way. We’re going to do it. We’re going to clean it up.” Los Angeles Area Chamber of Commerce President Gary Toebben predicted that the expanded terminal would create as many as 6,000 new jobs and generate $200mn a year in tax revenue. Environmentalists had urged the Harbor Commission to amend the EIR to require extra environmental protections. Web site: Los Angeles Harbor Commission Wal-Mart November sales upWAL-MART Stores Inc., the world’s largest retailer, Dec 6 said that for the four weeks ended Nov 30, same-store sales rose 1.5% excluding fuel and 1.9% including fuel. Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones. Total company sales for the month rose 8.4% to $31.72bn from the year-ago period, including a 4.8% jump at Wal-Mart Stores, an 8.7% rise at Sam’s Club, and 18.6% growth of international sales. The company said Wal-Mart’s November same-store sales were driven by grocery and pharmacy goods, as well as solid “Black Friday” sales across the store, from entertainment items to sleepwear. The home category remained soft. Sam’s Club saw strong performance in electronics and video games, as well as produce, bakery, juice, and water. Higher gas prices also boosted total sales. The company said sales of toys and Christmas seasonal items are meeting expectations moving into the December five-week period. Looking ahead, Wal-Mart sees December US same-store sales growing between 1%- 3%. Web site: Wal-Mart Stores Inc. Crowley will pay employees’ TWIC feesCROWLEY Maritime Corp. will reimburse its “permanent/regular employees” for the “initial cost” of acquiring TWIC (Transportation Worker Identification Credential) cards, the company announced Dec 7. The decision, which applies to Crowley merchant mariners and shoreside personnel, is expected to expedite the TWIC application process by removing the financial burden on individual employees, said the company. It will also help the company meet federal regulatory requirements before the end of 2008, Crowley said. TWICs are tamper-resistant biometric credentials for workers who require unescorted access to secure areas of ports, vessels, outer continental shelf facilities, and all credentialed merchant mariners. More than 750,000 workers, including longshoremen, truckers, port employees, and others, will be required to obtain a TWIC. Enrollment and issuance of TWIC began at the Port of Wilmington, DE, in October 2007 and will continue through calendar year 2008. “The security of our ports is important to all Americans, so the sooner we can get everyone on board with the program, the better off we’re all going to be,” said Tom Crowley, chairman, president, and CEO. Web site: Crowley Maritime Corp. <<<•>>> Tuesday, Decembe 11, 2007 ARB: Trucks, box ships under new rulesTHE CALIFORNIA Air Resources Board Dec 8 passed a regulation that requires trucks operating at major ports and rail yards in California to reduce emissions of diesel particulate matter. Also, the board Dec 7 passed a regulation that mandates operators of cargo ships and other large vessels to plug into land-based electric power (known as “cold ironing”) while docked. The new trucking rule requires that truckers with a pre-1994 engine replace it with a newer model by year’s end 2009. Truckers with 1994-2003 engines need to either replace or retrofit them to cut emissions by 85%, also by end of year 2009. The trucking rule is expected to affect about 20,000 trucks at 14 ports and 11 rail yards. The cold-ironing regulation will require certain fleet operators of container, passenger, and refrigerated cargo ships to turn off their auxiliary engines while docked for its stay in port. Ports affected by the regulation are those most visited: Los Angeles, Long Beach, Oakland, San Diego, San Francisco, and Hueneme, according to the board. Web site: California Air Resources Board Russian NCC throughput rises 18.5%THE RUSSIAN National Container Co. Dec 7 reported an aggregate throughput at NCC terminals from Jan-Nov 2007 of 1.4mn TEUs, an increase of 18.5% compared to the same period in 2006. The First Container Terminal in St. Petersburg saw 869,672 TEUs throughput in the period Jan-Nov 2007, an increase of 7.8% compared to the same period in 2006. In November, FCT handled 65 vessels with an average 1,294 TEUs per vessel. The throughput at NUTEP container terminal at the Port of Novorossiysk increased by 44.75% Jan-Nov compared to the same period last year for a total 126,059 TEUs. In Nov 2007, the terminal handled 7,589 TEUs. The throughput at Ukrtranscontainer terminal at the Port of Illychivsk increased by 40.9% Jan-Nov compared to the same period in 2006 for a total of 402,871 TEUs. In November, the terminal handled 42,795 TEUs, an increase of 33.8% compared to Nov 2006. NCC also reported that the new container terminal at the Port of Ust-Luga will be operational by the end of 2008. Ultimate capacity is planned at 3mn TEUs. Web site: National Container Co. Charleston port: $4.08mn mitigation planTHE SOUTH Carolina State Ports Authority, the city of North Charleston, and the Lowcountry Alliance for Model Communities Dec 6 announced the launch of their “historic partnership” for a community mitigation program at the new port terminal at the former Navy Base in Charleston. The agreement, which was signed by the neighborhoods, the city, and the Ports Authority, calls for the Ports Authority to fund $4.08mn in community, neighborhood, and economic development projects to “ensure that the new port terminal has the greatest positive impact on the surrounding area,” said the announcement. Earlier this year, nine state and federal agencies signed off on the new port development project at the former Navy Base. “The negotiations between the neighborhoods, the city, and SPA ended with the neighborhoods gaining an opportunity to enhance the value, conditions, and livability of their community,” said Mayor Keith Summey. “The mitigation provides a wonderful and unique chance to allow the neighborhoods to guide and mold their future.” Mitigation projects include a housing trust for affordable housing, environmental monitoring, community center improvements, and a community redevelopment master plan. Web site: South Carolina State Ports Authority <<<•>>>Wednesday, Decembe 12, 2007 POLB proposes drayage truck feeTHE PORT of Long Beach Board of Harbor Commissioners will meet Mon., Dec 17, to consider adopting a Clean Trucks Fee “to help put a new generation of cleaner trucks into service.” The proposed fee would levy a $35 charge on every loaded cargo container entering or leaving the ports by short-haul (or “drayage”) truck, starting Jun 1, 2008. The fee would not apply to containers entering or leaving the ports by train. The port said the fee would end “when the fleet of drayage trucks meets Clean Air Action Plan (CAAP) requirements in about 2012.” “The Clean Trucks Fee, if approved by the board, would generate $1.6bn to help fund cleaner trucks and reduce air pollution.” said Richard D. Steinke, port executive director. In November, the Long Beach and Los Angeles Boards of Harbor Commissioners approved a ban on old, dirty trucks that call at the ports. The Port of Los Angeles is considering a similar fee, said the port, so the Clean Trucks Fee would apply to the entire San Pedro Bay. Web site: Port of Long Beach CA governor reveals port solar plansCALIFORNIA Attorney General Jerry Brown recently announced plans to build a small solar power plant at the Port of Los Angeles, according to published reports. The approximately $60mn project’s first phase will begin with the placing of solar panels on the roof of the Los Angeles World Cruise Terminal off Harbor Boulevard. The 10-MW solar grid will be used to generate power for electric cranes, lighting, and dockside ship power, or “cold ironing.” Southern California ports average more than 300 days of sunshine annually, according to meteorological records. The electricity will be directed into the existing port grid and used to offset power derived from the Los Angeles Dept. of Water and Power. Brown, who previously was governor of California (1975-1983) and the mayor of Oakland (1998-2006), says the project will reduce emissions by 17,000 mt of carbon dioxide annually. Additional sites are being scouted for the land that will be needed to fit enough panels for the initial 10-MW project. In all, the port needs about 25 acres of installation area. Web site: Port of Los Angeles NASSCO holds keel-laying ceremonyGENERAL Dynamics NASSCO, a wholly owned subsidiary of General Dynamics, Dec 11 held a keel- laying ceremony for the first ship of its new class of product carriers (PC-1). The ship is being built for US Shipping Partners and is scheduled to be delivered in early 2009. The PC-1 class ship will be 600 ft long, displace about 49,000 dwt, and have a cargo capacity of 331,000 bbl. The ship is based on a design of DSEC, a wholly owned subsidiary of Daewoo Shipbuilding and Marine Engineering of Okpo, Korea. Through its April 2006 agreement with DSEC, NASSCO has received detail designs and some components necessary to build the ship, said the company. NASSCO began construction of the ship in August. US Shipping Partners previously announced that the ship will be named Golden State, the state nickname of California. General Dynamics NASSCO, based in San Diego, employs more than 4,600 people and is the only major ship construction yard on the West Coast of the US, according to the company. Web site: General Dynamics NASSCO <<•>>>Thursday, Decembe 13, 2007 Port Vancouver USA to acquire industrial landThe Port of Vancouver USA Commission Dec 12 voted to authorize port officials to purchase the vacant Alcoa Aluminum and Evergreen Aluminum LLC properties, which are widely believed to be among the very few remaining industrial properties with deep-water access on the West Coast. The land acquisitions, which total $48.25mn, will “aid its customers and tenants in the ability to expand,” said the port. The port is currently nearly 100% occupied with very little room for growth. The port needs at least a portion of the Alcoa and Evergreen properties to build the West Vancouver Freight Access project, which will provide access to trains as long as 100-110 cars and allow for movement, storage, and assembly and disassembly of those trains. The remaining property is expected to be developed as a marine terminal, said the port. Alcoa Evergreen will be responsible for cleaning the property to industrial standards, which will accelerate the cleanup of a site that has been contaminated and vacant for years, said the port. Web site: Port of Vancouver USA Horizon Lines says keep P.R. tonnage taxHorizon Lines Inc. Dec 12 responded to a challenge to Puerto Rico’s tonnage tax eligibility. Included as part of the American Jobs Creation Act of 2004, the tonnage tax allows corporations to pay a tonnage tax as opposed to the regular US corporate income tax on the taxable income from vessels operating in international trade. It is Horizon Lines’ position that “Congress was correct in 2004 in applying the tonnage tax to trade with Puerto Rico,” said the company. “Based on the original intent of the legislation, the legislative history, and the realities of the marketplace, there is no sound policy or technical reason for Congress to eliminate the application of the tonnage tax,” said the company. The purpose of the 2004 Act was to provide tax incentives for job creation. Horizon Lines has been joined in opposition to the proposed elimination of the tonnage tax election for the Puerto Rico trade lane by the US Chamber of Commerce, all major trade unions servicing the US maritime industry, and the government of Puerto Rico. Web site: Horizon Lines Inc. US corporate bankruptcies to rise 13%Global Insight, a leading company for economic and financial analysis and forecasting, Dec 13 announced that US corporate bankruptcies are expected to increase 13% in 2008, after rising an estimated 40% in 2007. The majority of the increases are expected to occur in the agriculture, energy mining, and electronics industries, as well as in banking and real estate. In general, the “goods” sectors will see their risk profiles deteriorate more rapidly than services, excluding the financial sector, said Global Insight. The bright spot for some manufacturers is the outlook for exports, as a weaker US dollar and still-strong growth in the rest of world will mitigate some of the damage from worsening domestic prospects, said the company. Global Insight forecasts a worsening risk profile in industries such as electrical appliances, communication equipment, recreational and cultural services, and retail trade, as consumer spending is expected to slow. In addition, most of the industries manufacturing electrical and electronics products are net importers of parts from abroad, and with the weakened US dollar, they will have additional pressures due to the deterioration of terms of trade. Web site: Global Insight <<<•>>>Friday,Decembe 14, 2007 Port Vancouver USA to acquire industrial landThe Port of Vancouver USA Commission Dec 12 voted to authorize port officials to purchase the vacant Alcoa Aluminum and Evergreen Aluminum LLC properties, which are widely believed to be among the very few remaining industrial properties with deep-water access on the West Coast. The land acquisitions, which total $48.25mn, will “aid its customers and tenants in the ability to expand,” said the port. The port is currently nearly 100% occupied with very little room for growth. The port needs at least a portion of the Alcoa and Evergreen properties to build the West Vancouver Freight Access project, which will provide access to trains as long as 100-110 cars and allow for movement, storage, and assembly and disassembly of those trains. The remaining property is expected to be developed as a marine terminal, said the port. Alcoa Evergreen will be responsible for cleaning the property to industrial standards, which will accelerate the cleanup of a site that has been contaminated and vacant for years, said the port. Web site: Port of Vancouver USA YRC Worldwide, Teamsters have agreementYRC Worldwide Inc. Dec 13 announced that its TMI (Trucking Management Inc.) member subsidiaries have reached a tentative agreement with the International Brotherhood of Teamsters on a new five-year labor contract. The contract covers most dockworkers and drivers and certain other union employees. “The early outcome of these negotiations is positive for our employees and positive for our customers,” said Mike Smid, president and CEO of YRC North American Transportation. “With the major hurdle of the NMFA behind us, we are now positioned to remain competitive in a very challenging industry environment,” Smid added. “This is an excellent agreement,” said Tyson Johnson, a vice president and director of the Teamsters National Freight Division and lead negotiator for the union. TMI is the multi-employer bargaining representative for the YRC Worldwide subsidiaries Yellow Transportation, Roadway, and USF Holland. The YRC Worldwide subsidiary New Penn has also agreed to accept the terms of the tentative agreement. The agreement does not become effective until ratification by the Teamster membership. The present National Master Freight Agreement expires Mar 31, 2008. Web site: YRC Worldwide Inc. International Brotherhood of Teamsters Horizon Lines says keep P.R. tonnage taxHorizon Lines Inc. Dec 12 responded to a challenge to Puerto Rico’s tonnage tax eligibility. Included as part of the American Jobs Creation Act of 2004, the tonnage tax allows corporations to pay a tonnage tax as opposed to the regular US corporate income tax on the taxable income from vessels operating in international trade. It is Horizon Lines’ position that “Congress was correct in 2004 in applying the tonnage tax to trade with Puerto Rico,” said the company. “Based on the original intent of the legislation, the legislative history, and the realities of the marketplace, there is no sound policy or technical reason for Congress to eliminate the application of the tonnage tax,” said the company. The purpose of the 2004 Act was to provide tax incentives for job creation. Horizon Lines has been joined in opposition to the proposed elimination of the tonnage tax election for the Puerto Rico trade lane by the US Chamber of Commerce, all major trade unions servicing the US maritime industry, and the government of Puerto Rico. Web site: Horizon Lines Inc. |