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Growth of California Ports: Opportunities and Challenges, A

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Growth of California Ports: Opportunities and Challenges, A May 1, 2007 Senator Alan Lowenthal, Chair Senate Transportation Sub-Committee on California Ports & Goods Movement Room 2038 State Capitol Sacramento, CA 95814 Dear Senator Lowenthal: The California Marine and Intermodal Transportation System Advisory Council (CALMITSAC) hereby submits to you the report you requested in your 2004 legislation, AB 2043. The document “Growth of California Ports: Opportunities and Challenges” reflects the substantive gathering and synthesizing of much data on all aspects of California’s marine transportation system (MTS), including growth forecasts, economic and environmental impacts of port operations, productivity, infrastructure needs, education, port security, and funding. The report, which includes a series of recommendations on these important topics, draws from the extensive experience of CALMITSAC’s wide membership. We are confident that the report will serve as the basis for productive discourse and collaboration among the California state legislature, the administration and its agencies, and all interested stakeholders. It is recommended that all MTS stakeholders carefully review the contents of this report. CALMITSAC intends to make available to the state legislators a yearly supplement to this document. We welcome a dialogue with Senate and Assembly leadership. It is certain this document will provide policymakers with a deeper understanding of the opportunities and challenges facing California’s MTS. Sincerely, Gill V. Hicks, Chair California Marine and Intermodal Transportation System Advisory Council. GVH/nfk Growth of California Ports: Opportunities and Challenges A Report to the California State Legislature Submitted by California Marine and Intermodal Transportation System Advisory Council (CALMITSAC) Chair: Gill V. Hicks, Gill V. Hicks and Associates, Inc. Thomas O’Brien, Ph.D., Center for International Trade and Transportation, California State University, Long Beach (Principal Author) and Bill Lyte, Kennedy/Jenks Consultants April 2007 CALIFORNIA MARINE AND INTERMODAL TRANSPORTATION SYSTEM ADVISORY COUNCIL Officers: Chair: Gill V. Hicks, Gill V. Hicks and Associates, Inc. Co-Vice Chair: Marianne Venieris, Center for International Trade and Transportation, California State University, Long Beach Co-Vice Chair: Bob Gore, Infrastructure Delivery Council Chair, Infrastructure and Competitiveness Committee: John Amos, National Industrial Transportation League Chair, Environmental Committee: Gary Gregory, California State Lands Commission Chair, Port Security and Consequence Management Committee: Larry Mallon, Southern California Marine Transportation System Advisory Council Chair, Policy and Funding Committee: Jeff Brown, California Senate Sub-Committee on California Ports and Goods Movement Executive Committee: Gill Hicks, Marianne Venieris, Bob Gore, John Amos, Gary Gregory, Larry Mallon, Jeff Brown, Norman-Fassler-Katz, Tim Schott Secretary/Treasurer: Bill Lyte, Consulting Engineers and Land Surveyors of California Staff Consultant: Norman Fassler-Katz, California Senate Sub-Committee on California Ports and Goods Movement Members: Gill Hicks, Chairperson Gill V. Hicks and Associates, Inc. John Amos National Industrial Transportation League Captain M.H.K. Aschemeyer Marine Exchange of Southern California Jeff Brown California Senate Sub-Committee on California Ports and Goods Movement Kerry Cartwright Southern Cal. Marine Transportation System Advisory Council John Cockle California Short Line Railroad Association Members (continued): Dominic DiMare California Chamber of Commerce Bob Dockendorff Pacific Maritime Association Norman Fassler-Katz California Senate Sub-Committee on California Ports and Goods Movement James FitzGerald Burlington Northern and Santa Fe Railway Company Brian Foss California Maritime Infrastructure Authority Bob Gore Infrastructure Delivery Council Gary Gregory California State Lands Commission Robin Grove Pacific Coast Council (of Customs Brokers and Freight Forwarders) Lee Hieber California Marine Affairs and Navigation Conference Ellen Johnck Bay Planning Coalition Maritime Transportation System National Advisory Council Maryanna Kersten The Waterfront Coalition (Co-share seat) Captain Lynn Korwatch Marine Exchange of San Francisco Bay Region Bill Lyte Consulting Engineers and Land Surveyors of California Lawrence Mallon So. Cal. Marine Transportation System Advisory Council John McLaurin Pacific Merchant Shipping Association Scott Moore Union Pacific Railroad Selwyn Moore The Waterfront Coalition (Co-share seat) Richard Nordahl California Department of Transportation Rob Oglesby California Environmental Protection Agency Ray Ortiz International Longshore and Warehouse Union Peter Peyton Marine Transportation System National Advisory Council, International Longshore and Warehouse Union Randy Rogers U.S. Department of Transportation Dorothy Rothrock California Manufacturers and Technology Association Tim Schott California Association of Port Authorities Barry Sedlik California Business, Transportation and Housing Agency Scott Smith Ocean Carriers Equipment Management Association (OCEMA) Steve Vaughn California Highway Patrol Marianne Venieris Center for International Trade and Transportation, California State University, Long Beach Vacant California Maritime Academy Vacant U.S. Environmental Protection Agency Acknowledgements: CALMITSAC wishes to thank the following organizations for their financial support which made this report possible. California Maritime Academy California Short Line Railroad Association California State University, Long Beach - Center for International Trade and Transportation International Longshore and Warehouse Union Los Angeles Customs Brokers and Freight Forwarders Association Marine Exchange of Southern California Masterpiece International Shipping METRANS Transportation Center, USC-CSULB Pacific Maritime Association Port of Long Beach Port of Los Angeles The Burlington Northern and Santa Fe Railway Co. Union Pacific Railroad U.S. Department of Transportation, Maritime Administration This report was prepared by Thomas O’Brien of the Center for International Trade and Transportation at California State University, Long Beach (CSULB) and the METRANS Transportation Center at the University of Southern California and CSULB; with the assistance of Gill V. Hicks, CALMITSAC Chairperson; and Bill Lyte of Kennedy/Jenks Consultants. The authors would like to thank over 30 CALMITSAC Board members and others who reviewed and commented on the initial drafts, including those who contributed additional information and text. Your contributions are much appreciated. The authors are, however, responsible for all errors and omissions. Table of Contents Page Executive Summary……………………………………………………………... i 1. Background and Introduction …………………………………………………... 1 2. Economic Imperative: Improving Job Opportunities………………………...…. 5 3. Public Health Imperative: Reducing Port-Related Air Pollution………….……. 11 4. Cargo Growth and Competition from Other Trade Gateways………………….. 14 4.1 California Ports………………………………………………………………….. 15 4.2 U.S. Pacific Northwest Ports……………………………………………………. 16 4.3 Mexican and Canadian Ports……………………………………………………. 18 4.4 The Panama and Nicaragua Canals……………………………………………... 19 4.5 Cargo Growth and Diversion……………………………………………………. 21 5. Responding to Capacity Constraints: Infrastructure Improvements, Operational and Productivity Enhancements …....................................................................... 24 5.1 San Pedro Bay Ports…………………………………………………………….. 24 5.2 Port of Oakland………………………………………………………………….. 29 5.3 California’s Smaller Ports……………………………………………………….. 31 5.4 Intermodal Trucking Availability and Terminal Productivity………………….. 34 5.5 Short Line Railroads…………………………………………………………….. 38 6. Environmental Enhancements…………………………………………………... 41 6.1 The San Pedro Bay Ports Clean Air Action Plan……………………………….. 43 6.2 The Gateway Cities Clean Air Program………………………………………… 46 6.3 The Port of Oakland’s Vision 2000 Maritime Development Program…………. 48 6.4 The State Goods Movement Action Plan and the California Air Resources Board Emission Reduction Plan ………………………………………………... 49 7. MTS Security……………………………………………………......................... 50 7.1 2006 and 2007 Port Security Grants and The SAFE Port Act………………….. 51 7.2 CALMITSAC Port Security and Consequence Management Survey…………... 53 7.3 National Port Security Centers………………………………………………….. 56 7.4 Strategic Mobility 21 and the California Green Freight Initiative……………… 57 7.5 Layered Responses: Multiple Lines of Defense………………………………… 59 8. Funding…………………………………………………………………………. 63 9. Project Delivery and Options for Project Ownership and Operation…………… 73 10. The Role of Academic Institutions in Statewide Goods Movement …………… 75 11. Recommendations………………………………………………………………. 77 Economic Growth……………………………………………………………….. 78 Environment…………………………………………………………………….. 78 Project Priorities, Funding, and Public-Private Partnerships……………………. 79 Intermodal Trucking Availability and Terminal Productivity………………….. 79 Legislation………………………………………………………………………. 80 MTS Security………………………………………………………………......... 81 Education………………………………………………………………………... 82 Appendix A: Infrastructure Projects…………………………………………...... 83 Appendix B: Operational Improvements………………………………………... 88 Appendix C: Environmental Enhancements…………………………………….. 89 Appendix D: California Air Resources Board Emission Reduction Plan for Ports and Goods Movement in California: List of Strategies to Reduce Emissions from Ports and Goods Movement……………………………………
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