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2016 ANNUAL REPORT President’S Message

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2016 ANNUAL REPORT President’S Message 2016_NYSA_AR_Cover_w-Dieline_Layout 1 1/26/17 1:10 PM Page 2 Mission Statement The mission of New York Shipping Association is to represent the interests of its members in maximizing the efficiency, cost-competitiveness, safety and quality of marine cargo operations in the Port of New York and New Jersey. NYSA will accomplish this mission: Through negotiation of fair collective bargaining agreements with the International Longshoremen’s Association and the Port Police and Guards Union; Through effective implementation of those collective bargaining agreements; and judicious management of the various funds created thereunder; Through strong advocacy of our members interests in the public, government and business communities; Through close collaboration with other maritime and maritime-related organizations who share common interests; Through partnering with public agencies tasked with the improvement of the region’s transportation system; and Through frequent communications with members to insure that their interests are well served. Die-cut for Business Card Business for Die-cut PREPARING FOR THE BRIDGE TO THE FUTURE Table of Contents President’s Message..............................................................2 PPGU ....................................................................................6 Training................................................................................10 Safety ..................................................................................12 Highlights Employment, Cargo, Container Volumes, Assessment, Auto Volume............................................14 Information Technology Department ................................18 Industry Highlights and Special Events ..............................22 Working with Our Partners ..........................................26 Port Authority of NY & NJ............................................28 US Coast Guard Update ..............................................32 US Army Corps of Engineers Update/Dredging ........34 Governmental Affairs ..........................................................40 Notes from Washington, DC ..............................................42 Report of Counsel ..............................................................44 NYSA Insurance and Indemnity Program ..........................51 2016 NYSA Membership and Organizational Chart ..............52 Board of Directors ..............................................................53 NYSA Staff ..........................................................................54 1 NYSA 2016 ANNUAL REPORT President’s Message Continued preparation for the mega container vessels, “The significant problems we which are on the horizon for the Port of New York face cannot be solved at the & New Jersey, remained a same level of thinking we were focus this past year. The final at when we created them.” piece of this puzzle will be set into place when the — Albert Einstein Bayonne Bridge is open for navigational clearance in 2017, which as shown on the cover of this annual report is well on its way. During 2016 we saw watershed accomplishments in our port and in the industry. When initially contemplated, these endeavors seemed so large in scale and far off into the future that they were out of reach. I am speaking specifically of the NY & NJ Harbor Deepening Project to 50 feet and the expansion of the Panama Canal. The latest harbor deepening project, which began construction in 2004, provides 50-foot water access to the container terminals by deepening the Ambrose Channel from the Atlantic Ocean to the Verrazano-Narrows Bridge, Port Newark and the Port Elizabeth facilities, the Arthur Kill Channel adjacent to the Howland Hook Marine Terminal, and the Port Jersey Channel. The project was completed at a total cost of $2.1 billion dollars which was $800 million dollars less than the original project estimate. Accomplishing this project is a tribute to the hard work and vision of my predecessors at NYSA, the US Army Corps of Engineers, the Port Authority of New York & New Jersey, our congressional representatives in Washington, DC and our local representatives in New York and New Jersey. For a port that has long had a reputation of labor shortages during summer months, I’m pleased to report that such shortages are virtually non-existent. Our main challenge now is accommodating the peak seasonal autumn cruise business, which is on our radar. All of the longshore and clerical hiring for labor which was initially requested in 2013 was finally completed in late calendar year 2015. NYSA continued to be honored for the collectively bargained NYSA-ILA hiring plan where 51% of Longshore and Clerical workers hired were to be veterans. In 2016, NYSA was awarded the American Legion’s prestigious National Employer of the Year award for large employers, recognizing the Association’s commitment to hiring military veterans. In the past two years over 400 veterans have been hired in applying the NYSA-ILA hiring plan. Our first Veterans Day event was held this year at GCT Bayonne to recognize those veterans who have chosen to continue their careers in the longshore industry. We are also working with the Veterans Administration to provide on-going support and seminars to our veterans so that they are aware of and take full advantage of the benefits which they have deservedly earned through their service. It’s refreshing how our industry steps up to support our veterans, and even more so, how our veterans help each other. Training continues for both practical equipment training and classroom training. While it is not at the hectic pace of recent years, we spent over $13 million dollars the past year inclusive of fuel and machinery costs. In 2016 the Board of Directors of NYSA approved the purchase of two crane simulators which will be placed at the NYSA-ILA- PPGU Training Center in Elizabeth, NJ. Qualified, skilled crane drivers are one of our most important assets and are one of the key factors in vessel productivity. The Port of NY & NJ has over 60 container cranes and all training currently takes place in a live setting. This crane simulator purchase and training program will help identify the best 2 PREPARING FOR THE BRIDGE TO THE FUTURE candidates to become crane drivers, provide a platform to show basic proficiency and facilitate moving on to live crane training. I’m thankful for our Board’s commitment to improve productivity. It’s no secret that as population and manufacturing bases shift we need to be better, faster and more productive to stem the erosion of containerized market share on the East Coast. For our port to succeed in what is an increasingly competitive environment every year, we need to remove the bureaucratic obstacles which stand in the way of expedited recruiting and hiring. We can’t have modern semi-automated terminals, high-tech machinery at every facility, modern 12,000+ TEU vessels calling the port, and oversight which has been virtually unchanged for 60 years. All aspects of the Port need to be modernized including the Waterfront Commission. Although we still have long way to go, productivity in the Port continues to slowly improve. Vessel productivity is climbing and our man hours per container continue to improve. Up until this point, a shortage of labor was always the default reason why productivity enhancing aspects of our collective bargaining agreement could not be implemented. These shortages have been eliminated and we look forward to implementing changes in 2017 to improve productivity levels to attract more vessels and cargo. NYSA and the Port Authority of NY & NJ continue to co-chair the Council on Port Performance (CPP) to implement the 23 recommendations identified by the Port Performance Task Force (PPTF) in 2014. This volunteer group of diverse industry stakeholders continues to meet on a regular basis preparing the Port for future cargo growth. The CPP continues to oversee and develop the Terminal Information Portal System (TIPS) website. This website provides streamlined access to information on container availability, booking status, vessel schedules and empty returns for all terminals. Also, the CPP Trucker Resource Guide Book which focuses on how to navigate through the Port of NY & NJ’s six marine terminals has been published in several languages. In 2016, the CPP also created a Workforce Development Committee to connect the workforce demand of our members throughout the supply chain, with educational institutions such as Union County College and their Talent Development Center for Transportation and Distribution Logistics program, as well as local communities. As of this writing, a pilot appointment system has been implemented at one of our member terminals and we expect this to eventually be a trendsetter for the rest of the port, especially when larger vessels call and we have the expected cargo peaks and valleys. The main outstanding challenge for the Port Performance Task Force is a port-wide gray chassis pool which remains under discussion. “One thing is sure. We have to do something. We have to do the best we know how at the moment . ; If it doesn’t turn out right, we can modify it as we go along.” — Franklin D. Roosevelt Although I believe the preparation in 2016 will pay off when the Bayonne Bridge clearance is completed, 2017 will be our most challenging year from an operating perspective. The Pilots who will handle the mega-container vessels are preparing and communicating the operational parameters of handling such ships. Ocean Carrier
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