Cargo Business Newswire

Thursday, June 12, 2014

Port of Long Beach adopts programs to lure business and green the port

In order to offset a small decline in projected revenue, Port of Long Beach harbor commissioners approved two programs Monday aimed at luring additional cargo and promoting clean technologies in San Pedro Bay.

The programs are designed to incentivize ocean carriers to bring more cargo volume through the port, as well as lower harmful ship emissions.

"For ocean carriers, their biggest concern is cost containment and not making money," said Don Snyder, the port's director of trade development. "It's hard to predict what kind of revenue will be generated from these incentives. It's very competitive up and down the coast. This is designed to retain business and attract business."

One program waives dockage fees for two years for big ships that comply with current shore-power rules or other emission reduction technologies for ships berthed at the port, Snyder added. The plan also waives dockage fees if ships reduce speeds within 40 miles of the port. If 75 percent of carriers participate, the port estimates program costs of $4.9 million in one year. If the program spurs an additional 250,000 TEUs annually, the port would make added revenue of $20 million in two years.

Snyder said shipping lines that have complied with this year's shore-power rules have complained about high electricity costs versus what they paid for their own energy generation.

"We are now reducing the parking fee," Snyder said.

The second program would extend by two years ocean carriers incentives to lines that bring their discretionary rail cargo to Long Beach. If a vessel operator moves more on-dock rail cargo during 2014 than 2013, or more in 2015, the port will pay $5 for every 20-foot-equivalent container unit. The program would cost $3.3 million over two years but generate annual revenue to the tune of $22.7 million.

"Economically, we are looking to attract business to Long Beach that creates jobs," Snyder said.

For more of the Orange County Register story: ocregister.com