APSN Newsletter Issue 9 No.8 / 2013

Issue 9, No. 8/2013

APSN NEWSLETTER Networking for Stronger Port Industry and Better Community

Contents

APSN News

APEC News

Industry News

Upcoming APSN Events

Upcoming Maritime Events in the World

APEC Port Services Network (APSN) December, 2013

1 APSN Newsletter Issue 9 No.8 / 2013 APSN News

Highlights Holiday Greeting by Mr. Fei Weijun, Secretary-General Dear APSN members, On the occasion of the Holiday season, I would like to express our heartfelt gratitude for the support that you have contributed to the development of the APSN over the past year on behalf of the APSN Secretariat. The APSN could not make such great progress without your great contribution. In the year of 2013, APSN provided services to the port and shipping industries by organizing various activities, including the Workshop on Green Port: Time for Action and Innovation and the 6th Council Meeting, both were successfully held in during 5-7th November. First, I would like to extend our sincere appreciation again to the Port Authority of Thailand for the warm hospitality accorded to all participants, and also hosting the meetings in the beautiful Phuket. I believe that all delegates were overwhelmed by the enthusiasm expressed by the PAT’s representatives. Furthermore, I wish to extend our heartfelt thanks to all members for your invaluable support and contribution to APSN, without which it would not be possible to make such a productive workshop and a successful Council Meeting. APSN is now becoming more mature, in the next year the APSN will put in great efforts in enhancing its role as the pivotal platform for the communication and coordination of the Asia-Pacific port and related industries. The continued support and the commitment from the all members and the APSN economies are indispensable. To that end, we sincerely look forward to closely cooperation with all of you to fulfill all these tasks. May Christmas and the New Year be filled with happiness for you and your family. With my best wishes, Fei Weijun,

Secretary-General of APSN

2 APSN Newsletter Issue 9 No.8 / 2013 Highlights

The APEC Port Services Network (APSN) Workshop on Green Ports: Time for Action and Innovation was held on November 5, 2013 in Phuket, Thailand

The APEC Port Services Network (APSN) Workshop on Green Ports: Time for Action and Innovation was successfully held on November 5, 2013 in Phuket, Thailand. Participants from 13 APEC economies, including ; ; ; , China; ; ; ; the ; Russian Federation; ; Thailand; the of America and attended the Workshop. They included senior officials from competent port authorities, industry leaders, APSN Council Members, Advisory Board Members and Regular Members, as well as experts from relevant organizations and academia. The Workshop was organized in the light of the "Green Growth" objective endorsed by the APEC Leaders and Transportation Ministers, and it was also a follow-up activity to the last APSN Workshop on Green Ports and Supply Chains held in November 2012 in Hong Kong, China. The Workshop was moderated by Mr. Jerry Rysanek, APSN Senior Consultant. In addition to the opening and closing sessions, the Workshop included following three business sessions: Session 1: Trends and Challenges for Green Port; Session 2: Government Initiative and Actions; and Session 3: Industry Initiative and Actions; At the opening session, Mr. Tim Meisner, President of the APSN Council expressed warm welcome to all the participants and looked forward to a fruitful discussion at the Workshop. The President also wished to extend his deepest gratitude to the Port Authority of Thailand for hosting the Workshop. Mr. Surapong Rongsirikul, Director General of the Port Authority of Thailand and Mr. Maitri Inthusut, Governor of Phuket Province also addressed the opening session and welcomed all the participants to Thailand. Speakers from the Marine Department of Hong Kong, China, the Port Authority of Thailand,

3 APSN Newsletter Issue 9 No.8 / 2013 the Philippines Port Authority, Maritime and Port Authority of Singapore, the Maritime Administration of the United States of America, Hakata Port and Harbour Bureau, Natural Resources Defense Council (NRDC), the ASEAN-German Technical Cooperation Project, Energy Foundation, Rosmorport, Port of Lianyungang, Port of Qingdao and APSN Secretariat made presentations at the Workshop and conducted extensive discussions with the participants. Dr. Dong Yang, APSN representative made a presentation on the APSN Green Port Award System (GPAS) and elaborated the concept and methodology to develop the System as well as the pilot project to be launched to experiment the System. The Workshop provided an invaluable platform for port authorities, port and shipping industries and relevant organizations for information exchange and best practice sharing. It has promoted the understanding of APEC member economies on green development in the port and shipping industires, which will ultimately foster liberalization and facilitation of investment and trade in the APEC region. As the regional forum for port industry development, APSN will continue its efforts to promote the green and sustainable growth of port and port-related industries in the APEC region. The fruitful outcomes in the form of the Workshop Report and all presentations made at the Workshop will be shared with all participants and will be posted on the APSN Website for access by APSN members and the general public. These outcomes will also be submitted for information to the next meeting of the APEC TPT-WG early 2014 and its Maritime Experts Group. The 6th Meeting of the APEC Port Services Network (APSN) Council was held on 6-7 November, 2013 in Phuket, Thailand

The 6th Meeting of the APEC Port Services Network (APSN) Council was successfully held on 6-7 November, 2013 in Phuket, Thailand. Council Members and Alternates from Australia; Canada; China; Hong Kong, China; Japan; Malaysia; the Philippines; Russian Federation;

4 APSN Newsletter Issue 9 No.8 / 2013 Singapore; Thailand; the United States of America and Vietnam were in attendance. Advisory Board Members from China; Singapore and Thailand, APSN Senior Consultant and representatives from Energy Foundation, the ASEAN-German Technical Cooperation Sustainable Port Development Project as well as the port corporations of China, Indonesia and Thailand observed the meeting. Mr. Tim Meisner, President of the APSN Council opened the meeting and expressed warm welcome to all the participants and looked forward to a fruitful discussion at the Council meeting. On behalf of the Thai hosts, Ms. Lawan Oungkiros, Council Member of Thailand, and Advisor to the Board of Commissioners of Port Authority of Thailand also welcomed all the participants to Thailand. The meeting had extensive discussions on issues of The meeting was marked by extensive discussions on issues set out in the APSN Five-Year Strategic Plan, Action Plan 2014, the Implementation Plan for APSN Green Port Award System (GPAS), the Updates on the development of APSN Membership Dues and Financial Rules, APSN work progress, E-newsletters and Port Development Report as well as outcomes of the APSN Workshop and the second Advisory Board meeting also held in Phuket. The Council endorsed the APSN Five-Year Strategic Plan (2014-2018) and the Action Plan 2014, which provided guiding directions for a long-term and an annual work plan, respectively, for the Organization to fulfill its objectives. The Council decided that, while maintaining the “green” agenda, the Organization would also focus on other topics, in particular the gateway ports and supply chain connectivity in its future work plan. The Council recognized the importance of ensuring the financial sustainability of the Organization and agreed that the proper financial rules and regulations should be developed in consultation with the APEC Secretariat. The Council also agreed that the membership due should be collected from 2015 following the adoption of the APSN financial rules and regulations at its next meeting in 2014. The Council further invited member economies to continue to make contributions to the Organization by way of financial contributions or by providing support or services in various forms. The Council appreciated the work progress by the APSN Secretariat in advancing the green port development in the APEC region, and endorsed the implementation plan for the APSN Green Port Award System. The Council also encouraged ports of member economies to actively participate in the pilot project of the GPAS. The Council expressed satisfaction with the outcomes of the APSN Green Port Workshop and the second Advisory Board Meeting. The Council agreed that these activities provided a valuable platform for direct dialogue and communication between the government and private sectors in the APEC region, and encouraged to continue such activities in the future. The Council recognized the importance of promoting information sharing and exchange among member economies and port and port-related industries in the APEC region. The Council agreed that the Organization should continue the production and circulation of E-newsletters and Port Development Report for that purpose. The Council expressed appreciation to the APSN Secretariat led by Mr. Fei Weijun, the APSN Secretary-General, for their hard and efficient work over the past year, and commended the continuous effort to improve the capacity of the Secretariat to provide support the Council and to serve the port and port-related industries in the APEC region. The Council finally expressed its gratitude to the Port Authority of Thailand for the excellent arrangement and hospitality extended to all the participants at this meeting. Welcome to New APSN Members New Council members Australia nominated Ms. Chaudie Wong, A/g Director, Maritime and Shipping Branch, Surface Transport Policy Division, Department of Infrastructure and Transport, as the new Council Member to the APSN, upon the leave of Mr. Graham Evans, former Council Member.

5 APSN Newsletter Issue 9 No.8 / 2013 nominated Mr. Nick Brown, Acting General Manager Aviation and Maritime, Ministry of Transport, as the Council Member to the APSN, upon the retirement of Mr. Bruce Johnson, former Council Member.

APEC News APEC announces 2014 theme: "Shaping the Future through Asia-Pacific Partnership" Acknowledging a weak economic recovery, unsustainable growth patterns and a risk of fragmentation that pose serious challenges to regional economic integration, China’s proposed APEC’s theme for 2014 is “Shaping the Future through Asia-Pacific Partnership.” Their meeting also followed a symposium on Monday that addressed how APEC could explore new areas of growth; plan for enhanced comprehensive connectivity in the region; and boost the multilateral trading system. APEC Senior Officials recognized the historic Bali Package delivered by the World Trade Organization and its potential to provide momentum to the multilateral trading system. Having consulted with APEC members, the business community, academia and international organizations, Vice Foreign Minister Li Baodong, announced the priorities on Tuesday for 2014 when China hosts the forum. While there have been signs of improvement in the world economy, a full recovery has not yet been achieved. Given the difficulties facing developing economies as well as major shocks to emerging economies, APEC will prioritize advancing regional economic integration as its first priority. “Despite internal and external risks and challenges, the Asia-Pacific is still an engine for global growth,” said Vice Foreign Minister Li who will be the chair of the APEC China 2014 Senior Officials’ Meeting. Li said that the second priority would be promoting innovative development, economic reform and growth. “This should build an open and inclusive Asia-Pacific market and fully unleash its growth and dynamism, vitality and cooperation potential,” he explained. “APEC will explore the possibilities of practical cooperation in such areas as promoting reform of the economic structure, advancing innovative growth, deepening convergence of the industrial chain and the value chain, and developing a green economy.” Strengthening comprehensive connectivity and infrastructure development will be the third priority for APEC in 2014. This will lay the groundwork for common prosperity in the Asia-Pacific region. “Efforts could enable the Asia-Pacific to take the lead in forming new clusters of growing industries in the world and create new driving forces for economic growth and for the long-term development,” he continued. “We need to show courage to move first and face the problems in regional cooperation with a forward-looking and strategic vision,” Li exhorted his colleagues. “We should meet the challenges head on and be readily willing to take risks as we explore the path of regional cooperation amidst the background of globalization.” The first cluster of meetings will be held in Ningbo, China from 15 to 28 February. Just beforehand, the APEC Business Advisory Council will meet in Auckland, New Zealand.

6 APSN Newsletter Issue 9 No.8 / 2013

Industry News Harper government and Port Metro Vancouver announce funding for new marine container examination facilities The Honourable Ed Fast, Minister of International Trade, along with the Honourable Kerry-Lynne Findlay, Minister of National Revenue, on behalf of the Honourable Lisa Raitt, Minister of Transport, announced on September 4, infrastructure investments that will strengthen the border; improve marine container inspection capacity; and improve efficiency at Port Metro Vancouver (PMV). The combined investment from the Harper government and PMV totals nearly $106 million. As part of the Government of Canada’s commitment to the Beyond the Border Action Plan, announced by Prime Minister Harper and President Obama, an investment of $49.9 million is being made in two new marine container examination facilities, to meet the anticipated growth in container volume through Deltaport, BC. The Roberts Bank facility, located at the east end of the Deltaport causeway on the Tsawwassen First Nation Industrial Lands, is expected to open in the summer of 2015. The Burrard Inlet facility is scheduled to open in the fall of 2015. These new facilities will help reduce processing times, resulting in savings for Canadian businesses, while protecting the health, safety and security of Canadians. These projects are an integral part of the container logistics flow in the Lower Mainland. Investments in the Asia-Pacific Gateway and Corridor Initiative (APGCI) have positioned Canada as the “Gateway of Choice” between Asia and North America, and the initiative is a key element of the government’s pro-trade plan to open new markets that increase Canadian exports and create jobs and prosperity. In fact, Canada’s West Coast ports are more than two days closer to Asian markets than any other ports in North America. Since 2006, the Harper government has invested $1.4 billion in Asia-Pacific Gateway infrastructure projects, an amount that has been leveraged to almost $4 billion with the participation of provincial and municipal governments and the private sector. (News Source: Transport Canada News release) New Waterfront Training Center to Enhance Safety In September 2013, the Honourable Lisa Raitt, Minister of Transport, welcomed the grand opening of the British Columbia Maritime Employers Association’s (BCMEA) Waterfront Training Center in Richmond, British Columbia, as an important contribution to transportation safety. The new facility will train British Columbia port operations employees in a controlled environment, enabling the safe delivery of a diverse set of training programs at one single site. Through the training facility, the BCMEA will provide simultaneous training of several programs, through exercises which resemble live operations. The initial development will allow for the delivery of training programs from various sectors, including containers, break bulk (logs, lumber, pulp and steel) and bulk. Minister Raitt said the new facility demonstrates that Canada is a world leader in training and international trade, and helps in adapting to the increased global demand for Canada’s natural resources. As globalization increases the demand for Canada’s natural resources, maritime shipping will play an even larger role to get these resources to global markets. (News Source: Transport Canada News release)

Tianjin became China's No 1 city auto import hub Tianjin's inspection and quarantine authority has inspected 23,438 consignments of automobiles with an aggregate value of US$15.1 billion as of December 1, making it the No 1 auto imports centre in China, Xinhua reports. In 2011, Tianjin imported 381,700 automobiles. In the next year, it imported 416,700. Both ranked first in the country.

7 APSN Newsletter Issue 9 No.8 / 2013 Gu Xu, a director from the city's inspection and quarantine authority, said that Tianjin has handled imports from more than 40 carmakers, which covers nearly all the famous brands. Most of the auto imports are of high quality. Nevertheless, there are still some of them that do not meet China's mandatory safety and environmental standards. In order to enhance automobile inspection efficiency, the Tianjin inspection and quarantine authority became the first in China to inaugurate the "concentration inspection" service for automobiles. (News Source: Transport Weekly)

China selects 5 cities in Guangxi to its logistics park development plan Guangxi Autonomous Regional Development and Reform Commission revealed that five cities in the southwestern region were listed in the newly implemented National Logistics Parks Development Plan, reports Xinhua. China will build level 1 logistics parks in the province's Nanning city and level 2 logistics parks in its other four cities including Liuzhou, Qinzhou, Yulin and Guigang, according to the plan. Different kinds of logistics parks could be built in these cities on the basis of their needs, providing services such as freight hubs, commerce and trade, production, checkpoints as well as comprehensive services, which is said to further accelerate the region's economic development and industry transformation and upgrade. (News Source: Transport Weekly) The New Zealand Ministry of Transport is currently engaged in three major pieces of work in relation to freight and ports 1. Freight information Gathering System

 The Freight Information Gathering System (FIGS) is a Ministry of Transport initiative to resolve a lack of consistent, credible data about freight movements in New Zealand. FIGS aims to provide a better understanding of freight movements domestically and internationally, at least cost to industry, by amalgamating and releasing information that was previously only held by individual organisations.

 FIGS is currently based on five sets of data – container movement data provided by New Zealand’s ten container ports, rail freight movements, enhanced trade data provided by Statistics New Zealand, coastal oil deliveries, and ship visit information.

 The information from FIGS can be used in a broad range of situations. One of the main purposes for which FIGS data will be used is to support fully-informed policy and planning decisions at both central and local government level. The information provided by FIGS will allow infrastructure and planning decisions to be based on robust, reliable and consistent data, and be a credible source of information for officials to use. 2. National Freight Demand Study

 The National Freight Demand Study is the pivotal source of information on New Zealand’s freight task. It provides a snapshot of freight volumes and movements, and forecasts the future freight task based on national projections, industry views and expert analysis.

 The previous Freight Demand Study was completed in 2008. The information in this 2008 study guides major freight infrastructure investment and land use planning decisions across the public and private sectors. However it requires updating, as it reflects the freight sector as it was in 2006/07. Since then events like the global financial crisis, the Canterbury earthquakes, changes in supply chains and changes in international shipping operations and port call configurations will have changed New Zealand’s freight task.

 To restore the currency of the information the Ministry is currently updating the study. The new study will apply an enhanced version of the methodology used in 2008. This looks at the freight task from a commodity and regional basis, and forecast the future freight task based on national projections, industry views and expert analysis.

 The final report is due in the first quarter of 2014.

8 APSN Newsletter Issue 9 No.8 / 2013 3. Future Freight Scenarios Study

 The Future Freight Scenarios Study is an exploration from a national and public interest perspective of possible future freight scenarios given a number of trends and challenges. For example it involves assessment of how New Zealand can gain from the worldwide trend to larger container ships rather than being disadvantaged by it; and how New Zealand can maximise its return from port investment by, for example, avoiding unnecessary duplication or stranded assets in the port sector.

 These challenges initially present as shipping or port issues, but have significant ramifications across the land transport system, export and import supply chains and the wider economy. Through modelling these different scenarios it will allow us to see what bottlenecks, costs and benefits are likely to emerge for New Zealand as a whole.

 Knowledge of these bottlenecks, costs and benefits can then inform the strategic choices infrastructure providers, freight operators and cargo owners make. It will also highlight where port and land transport infrastructure decision-making needs to be coordinated to better support New Zealand’s exporters over the coming decades.

 The final report is due in the second quarter of 2014. (News Source: Council member from New Zealand) California Green Trade Corridor On November 1, 2013, the Maritime Administration (MARAD) dedicated the California Green Trade Corridor. The Corridor will help take freight traffic off California’s congested I-580 by offering shippers an option to move cargo along the waterways between the Ports of Oakland, Stockton and Sacramento. The project received a $30 million grant from the Department of Transportation, as well as $5 million from local sources. Acting Maritime Administrator Paul Jaenichen and state and local leaders were on hand for the dedication. “This $30 million investment in public infrastructure is an important part of President Obama’s national initiative to double America’s exports by 2015,” said U.S. Transportation Secretary Anthony Foxx. “This Marine Highway will help get cargo off the highways and onto our waterways, improving traffic on our roads while providing an efficient, environmentally-friendly option within our freight system.” Marine Highway M-580, also known as the California Green Trade Corridor, roughly parallels the I-580 corridor between California’s Central Valley and Oakland, one of the most heavily congested highways in the country. It is anticipated that running two barges per week between Oakland and Stockton will eliminate approximately 200 trucks per day from the highway. When the corridor is fully operational, it is expected that barges will make three round-trips up and down the corridor per week. “The Green Trade Corridor is a win-win solution for Northern California and the millions of Americans and businesses who rely on it to send and receive goods,” said Jaenichen. “This new efficient and environmentally friendly transportation alternative is also creating jobs in Stockton.” Marine highways are designated by the Secretary of Transportation and benefit the public by providing additional transportation capacity as part of the surface transportation system. America’s Marine Highway System consists of more than 29,000 nautical miles of navigable waterways including rivers, bays, channels, the Great Lakes, the Saint Lawrence Seaway System, coastal, and open-ocean routes. (News Source: http://m-580.com) The Panama Canal Expansion Study On November 25, 2013, the Maritime Administration (MARAD) released a study on shipping patterns and industry costs that will help the United States prepare for the anticipated impact on its ports, waterways and intermodal freight systems from the Panama Canal expansion. The expansion of the Panama Canal, scheduled for completion in 2015, will give much larger vessels, called “Post Panamax” vessels, greater access to the U.S. ports on the

9 APSN Newsletter Issue 9 No.8 / 2013 East and Gulf coasts. “America’s ports keep our economy moving,” said U.S. Transportation Secretary Anthony Foxx. “This study can serve as a compass to guide our port investments in the Post Panamax world so our nation’s ports can accommodate larger vessels and help maintain our global competiveness.” The Panama Canal Expansion Study, the first of a two-part study, found the integration of Post-Panamax vessels into U.S. trade lanes will have substantial implications for U.S. shippers, ports and surface freight corridors, particularly along the East Coast, Gulf Coast and inland states located east of the Mississippi River. In addition, more cost-effective service generated by the larger vessels could improve the ability of some U.S. exports, like grain, coal, petroleum products and liquefied natural gas, to compete in global markets. “Preparation is the key, and we’re already seeing it,” said Acting Maritime Administrator Paul “Chip” Jaenichen. “Increased cargo means expanded capacity, and forward-looking ports are deepening their harbors and improving their intermodal connections, often with the help of the Obama Administration’s programs, such as the competitive TIGER (Transportation Investment Generating Economic Recovery) Grant program.” (News Source: http://www.marad.dot.gov/library_landing_page/maritime_publications/Library_Publications.ht m) Upcoming APSN Events

The 2nd APSN President Meeting will be held in Guilin, China in Mar 3-7 2014.

The 7th meeting of the APSN Council and its Workshop will be held in the United States of America in 2014.

Upcoming Maritime Events in the World

Date Event Venue

Feb 25-27, 2014 ExpoContainer Moscow,

Mar 31-Apr 4, 39th Transportation Working Group Christchurch, New 2014 Meeting Zealand

May 27-29, 2014 Electronica-Transport Moscow, Russia

Octover 21-23, International Transport Forum Odessa, Ukraine 2014

Note: APSN members are kindly requested to submit their news to the APSN Secretariat via: Add: No. 8, Xitucheng Road, Haidian District, 100088, China Tel: (8610) 6529 0569 Fax: (8610) 6529 0554 Email: [email protected] / [email protected] Website: www.apecpsn.org

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