MARITIME E-NEWS

APRIL 2017 MARITIME e -NEWS

Port confident about alliance changes Port of Oakland officials say they expect share ships and port calls to reduce direct calls from 13 different Chinese to take on recent changes to container expense while expanding service. ports. There’ll be six weekly calls from shipping alliances with little disruption. The new alliance structure is unnerving Taiwan and four from Southeast Asia: The news should be welcomed by some industry experts. They foresee port Indonesia, Malaysia, Thailand and importers and exporters fearful of fallout disruption if arrival schedules change or Vietnam. Seven weekly services from after ocean carriers switched partners shipping lines redirect to different marine Oakland will go to ports in Japan. this month. terminals. The worry is that cargo flow The Port said it could take two-to- “We’ve spoken to the shipping could be inhibited leading to congestion three months for all alliance changes to lines, we’ve spoken to our marine at major ports. take hold. The process includes slotting terminal operators and we understand Oakland officials said they don’t vessels into new service rotations. In their schedules,” said Port of Oakland foresee difficulties in working with the some cases, older ships will be replaced Maritime Director John Driscoll. “We’re new alliances. The Port said most of its with newer, larger ones. confident that Oakland will be able to vessel calls are concentrated in just three accommodate the newly formed alliances marine terminals. That means cargo Complete schedule of services is shown efficiently.” relocation should be minimal. on the following pages. The Port said it expects cargo volume The Port said it anticipates three to hold steady under the new alliance key outcomes in Oakland from alliance structure which took effect April 1. It said changes: fewer but larger ships will visit Oakland • No loss of cargo in Oakland; weekly, laden with more ocean containers. The change reflects industrywide con • More direct vessel calls between solidation as shipping lines cut excess Southeast Asia and Oakland, vessel capacity to trim costs. including a direct call to the Indian Eleven of the world’s largest container Subcontinent; and shipping lines have come together in • Continued strong Oakland-to-Japan three new alliances. The carriers changed and Oakland-to-Korea service for partners after bankruptcy, acquisitions and refrigerated exports. consolidation roiled container shipping in 2016. Alliances let participating carriers The Port said Oakland will receive

1 www.portofoakland.com Transpacific Services in Oakland

THE Alliance Hapag-Lloyd, K-Line, MOL, NYK, Yang Ming Ocean Carrier Service Name Terminal Rotation 1 APL JPX CMA-CGM FUJI Kobe–Nagoya–Tokyo–Sendai–San Pedro Bay– Hapag–Lloyd OICT K Line Oakland–Tokyo–Nagoya–Kobe–Sendai PS1 MOL NYK 2 COSCO Shipping PSW3 K Line Kobe–Nagoya–Shimizu–Tokyo–San Pedro Bay– MOL TRAPAC PS2 Oakland–Tokyo–Kobe–Nagoya–Shimizu NYK Yang Ming 3 Hapag–Lloyd K Line Singapore–Laem Chabang–Cai Mep–Hong Kong– MOL PS3 TRAPAC San Pedro Bay–Oakland–Tokyo–Hong Kong– NYK Singapore–Laem Chabang–Cai Mep Yang Ming 4 Hapag–Lloyd K Line Hong Kong–Yantian–Kaohsiung–Keelung– MOL PS4 OICT San Pedro Bay–Oakland–Keelung–Kaohsiung– NYK Da Chan Bay/Shenzen–Hong Kong–Yantian Yang Ming 5 Hapag–Lloyd K Line MOL PS5 OICT Shanghai–Ningbo–San Pedro Bay–Oakland NYK Yang Ming 6 Hapag–Lloyd K Line Qingdao–Ningbo–Shanghai–Busan–San Pedro Bay– MOL PS6 TRAPAC NYK Oakland–Busan–Qingdao–Ningbo–Shanghai Yang Ming

7 K Line Dalian–Xingang–Qingdao–Busan–San Pedro Bay– MOL PS8 TRAPAC Oakland–Busan–Kwangyang–Dalian–Xingang– NYK Yang Ming Qingdao 8 Hapag–Lloyd K Line Tokyo–Kobe–Ningbo–Shanghai–Busan– MOL EC1 WB TRAPAC NYK San Pedro Bay–Oakland Yang Ming

2M Maersk, MSC Ocean Carrier Service Name Terminal Rotation 1 Maersk TP8 Xingang–Qingdao–Ningbo–Busan–Yokohama– OICT MSC ORIENT San Pedro Bay–Oakland–Vostochny–Xingang

2 Maersk TP2 Tanjung Pelepas–Cai Mep–Yantian–Shanghai– MSC JAGUAR OICT San Pedro Bay–Oakland–Vostochny–Busan– Shanghai–Ningbo–Chiwan–Singapore

Bolded Carrier(s) operates the majority of vessel within the service route.

2 www.portofoakland.com Transpacific Services in Oakland,continued

Ocean CMA-CGM/APL, COSCO Shipping, Evergreen, OOCL Ocean Carrier Service Name Terminal Rotation 1 APL NWX CMA-CGM BOHAI Xingang–Qingdao–Shanghai–Prince Rupert– COSCO Shipping CEN OICT San Pedro Bay–Oakland Evergreen CEN OOCL PCN1 2 APL CC5 CMA-CGM HBB Qingdao–Shanghai–Ningbo–San Pedro Bay– NUTTER COSCO Shipping AAC2 Oakland–Tokyo–Nagoya–Qingdao–Shanghai–Ningbo Evergreen CPS 3 APL SC8 Yantian–Hong Kong–Kaohsiung–Taipei– CMA-CGM JDX NUTTER San Pedro Bay–Oakland–Tacoma–Kaohsiung– COSCO Shipping AAS4 Yantian–Hong Kong–Taipei Evergreen TPS 4 CMA-CGM GEX Taipei–Xiamen–Shekou–Yantian–San Pedro Bay– COSCO Shipping AAS3 NUTTER Oakland Evergreen HTW 5 APL PRX CMA-CGM PRX COSCO Shipping AAS2 Fuqing–Nansha–Hong Kong–Yantian–Xiamen– OICT Evergreen PRX San Pedro Bay–Oakland OOCL PCS1 Wan Hai CP3 6 APL PE1 CMA-CGM JAX Port Klang–Singapore–Jakarta–Laem Chabang– COSCO Shipping SEA2 OICT Cai Mep–San Pedro Bay–Oakland–Hong Kong– Evergreen PE1 Cai Mep–Singapore–Port Klang–Colombo OOCL SEAP

Non-alliance Ocean Carrier Service Name Terminal Rotation 1 COSCO Shipping AAC3 Qingdao–Shanghai–Ningbo–San Pedro Bay– PIL ACS OICT Oakland Wan Hai CP2

2 APL Naha–Shanghai–Qingdao–Busan–San Pedro Bay– EX1 OICT Oakland–Dutch Harbor–Yokohama–Busan–Naha

3 Hyundai PS2 Laem Chabang–Cai Mep–Hong Kong–Yantian– MSC LOTUS OICT Kaohsiung–Busan–San Pedro Bay–Oakland–Busan– Kaohsiung–Hong Kong–Laem Chabang–Cai Mep

3 www.portofoakland.com North Europe & Mediterranean Services in Oakland

THE Alliance Hapag-Lloyd, K-Line, MOL, NYK, Yang Ming Ocean Carrier Service Name Terminal Rotation 1 CMA-CGM California Bridge Hapag–Lloyd Le Havre–Antwerp–Hamburg–Rotterdam– K Line OICT Southampton–San Pedro Bay–Oakland–Tacoma– MOL AL5 WB Vancouver NYK Yang Ming

2 APL ECX

CMA-CGM California Bridge Tacoma–Vancouver–Oakland–San Pedro Bay– Hapag–Lloyd OICT Balboa–Cartagena–Caucedo–Southampton– K Line AL5 EB Rotterdam–Hamburg–Antwerp–Le Havre MOL NYK

Non-alliance Ocean Carrier Service Name Terminal Rotation 1 MSC Gioia Tauro–Civitavecchia–La Spezia–Valencia–Sines– Cristobal–Balboa–Manzanillo MX–San Pedro Bay– California Express OICT Oakland–Vancouver–Seattle–Oakland– San Pedro Bay–Balboa–Cristobal–Gioia Tauro 2 CMA-CGM AZTECA Acajutla–Corinto–Buenaventura–San Lorenzo–Puerto WAMS Quetzal–Lázaro Cárdenas–San Pedro Bay–Oakland– Hamburg Sud OICT Lázaro Cárdenas–Puerto Quetzal–Acajutla–Corinto– Buenaventura–San Lorenzo

3 Hapag-Lloyd MPS Cagliari–Livorno–Genoa–Fos–Barcelona–Valencia– Hamburg Sud MCPS Cartagena–Manzanillo–San Pedro Bay–Oakland– ZIM MPS OICT Seattle/Tacoma–Vancouver–Manzanillo MX– Cartagena–Caucedo–Lisbon–Tangier–Valencia– Cagliari–Livorno–Genoa–Fos–Barcelona

4 www.portofoakland.com Latin America Services in Oakland

THE Alliance Hapag-Lloyd, K-Line, MOL, NYK, Yang Ming Ocean Carrier Service Name Terminal Rotation 1 Hapag–Lloyd K Line Balboa–Cartagena–Caucedo–Southampton/ MOL AL5 WB London–Rotterdam–Hamburg–Antwerp–Le Havre– OICT NYK San Pedro Bay–Oakland–Vancouver–Seattle/ Yang Ming Tacoma CMA-CGM California Bridge

2 Hapag–Lloyd K Line Southampton/London–Rotterdam–Hamburg– MOL AL5 EB NYK OICT Antwerp–Le Havre–Cartagena–San Pedro Bay– APL Oakland–Seattle/Tacoma–Vancouver CMA-CGM California Bridge 3 Hapag–Lloyd K Line MOL EC1 NB TRAPAC Manzanillo–Balboa–San Pedro Bay–Oakland NYK APL

5 www.portofoakland.com Oceania Services in Oakland

Non-alliance Ocean Carrier Service Name Terminal Rotation 1 ANL PSW1 Hamburg Sud PANZ-PNW Auckland–Melbourne–Sydney–Tauranga–Papeete Hapag-Lloyd WAS OICT (fortnightly)–Oakland–San Pedro Bay PIL AOS MSC AUS LOOP 1

2 ANL PNW Fortnightly service: Tauranga–Sydney–Melbourne– Hamburg Sud PANZ-PSW OICT Adelaide–Auckland–Suva–Honolulu (every six Hapag-Lloyd WAN weeks)–Vancouver–Seattle–Oakland

3 Hamburg Sud SSEA Papeete–Nuku'alofa (monthly)–Apia–Pago Pago– OICT Polynesia Line POLYNESIA San Pedro Bay– Oakland

Hawaii Services in Oakland

Non-alliance Ocean Carrier Service Name Terminal Rotation 1 Matson Hawaii (1) Matson Honolulu–Oakland 2 Matson Hawaii (2) Matson Honolulu–San Pedro Bay–Oakland 3 Pasha CHX OICT Honolulu–Oakland–San Pedro Bay

6 www.portofoakland.com Shipping expert’s challenge to ports An esteemed expert on container shipping posed a challenge to On-dock or near-dock rail: In 2016, Oakland completed con U.S. ports in an Oakland speech this month. struction of a $100 million rail yard adjacent to marine terminals. “Those ports and marine terminal operators that handle big Oakland’s three international terminals ships most efficiently will grow market share,” said Journal of Trucker appointments: all require appointments for import container pickup. Commerce Senior Editor Bill Mongelluzzo. “This involves staying ahead of the curve in infrastructure development and cargo- Extended gate hours: Oakland International Container Terminal handling processes.” (OICT) introduced night gates to the Port a year ago. It now A Port of Oakland official responded after Mongelluzzo’s conducts between 1,100 and 1,500 gate transactions each night. address to the Propeller Club of Northern California. “We agree TraPac marine terminal is introducing night gates right now. with Bill,” said Maritime Director John Driscoll. “And we’re moving aggressively to grow our business.” Financing for night gates: OICT assesses a flat $30 fee on all Mongelluzzo, a 45-year veteran of U.S container shipping loaded containers—day or night—to fund extended hours. It coverage, said West Coast ports are in a dogfight. They’ve ceded offers to share its accounting asevidence the fee is used only to market share to East Coast competitors for 15 years, he said. His pay for night operations. Rx for the decline: ease congestion and improve reliability. Sixty-minute turn times: Turn times at OICT—the Port’s biggest Here’s the editor’s bold-faced laundry list of must-dos for marine terminal—aren’t averaging 60 minutes yet. They’re closer West Coast ports. It’s accompanied by the Port’s own view of to 80 minutes. But that’s a 40 percent improvement in the past how it’s responding to the market share challenge: year. Handle megaships efficiently: Oakland regularly receives vessels Faster time to market: Oakland’s intermodal transit times to in with capacity up to 14,000 TEUs. They’re typically in-and-out of land destinations meet or exceed West Coast competitors. Night Port within 24 hours. Three times in 2016, the largest contain gates, appointments and drayoffs have significantly speeded up er ship ever to call the U.S. came to Oakland. In each case, the import availability. 18,000-TEU Benjamin Franklin left on schedule. Improve reliability: The West Coast’s reputation for instability is Develop infrastructure and cargo-handling processes: Oakland fading—and Oakland is part of that trend. With rare exception, berths and channels are 50-feet deep, the required megaship ships calling Oakland head straight to berth. Vessel productivity depth. Its marine terminals have installed modern gate transac remains the highest on the Coast. Labormanagement relations tion equipment and reconfigured container yards for faster car have improved since a new longshore contract was signed in go flow. In 2016 the Port transformed cargo-handling by adding 2015. night gates and terminal appointments. It also opened an empty container yard and accelerated the use of dray-offs for loaded Ease congestion: Major motor carriers serving Oakland report import containers. better access, faster turn times and fewer driver complaints. They attribute the improvement to the Port’s operational trans Larger terminals for larger ships: Since 1999, the average size formation. Oakland marine terminal has grown from 49 acres to 153 acres. The largest terminal in ’99 was 81 acres. Today it’s 282 acres. Address costs: Certain costs, for example labor and pilotage, are fixed and won’t come down. But others are falling in Oak Invest in terminal modernization, taller cranes: More than land. Motor carriers have reduced or eliminated waittime fees $600 million is being invested in Oakland. The money will go to because they’re getting inandout faster. Oakland is developing expanding/upgrading terminals, creating new logistics capabili significant new ransloadt facilities within the Port. As they open, ties and raising the height of cranes. logistics and transportation costs will decrease for shippers.

Import volume jumps 19 percent Hundreds of new jobs coming Port of Oakland import cargo volume months of 2017. That was down 5.6 increased 19 percent in March over 2016 percent from a year ago. At the same Industrial development will soon create totals, according to figures released this time, the Port said those ships carried an hundreds of new jobs at the Port of Oak month. The results contrast sharply with average of 8.4 percent more containers land. The challenge: finding enough skilled a 9.2 percent decline in February ship in and out of Oakland. workers to fill them. That was the mes ments to Oakland. Total loaded contain The numbers reflect a shipping sage Port officials delivered to a visiting er volume—imports and exports—was industry effort to consolidate greater delegation from the philanthropic Kellogg up 9.3 percent last month. cargo volume on fewer ships. According Foundation. Increased volume indicates a return to the Port, the trend promises three The Port said it wants to fill the skills to normal trade patterns following benefits: gap with training for job candidates. It February Lunar New Year celebrations in • Reduced vessel operating expense added that its aim is to put more local Asia. Many factories shut down for the for shipping lines; people to work. holidays, curtailing shipments to the U.S. “Our economic impact is inextricably “This is a nice rebound,” said Maritime • Less demand for berthing space at tied to the jobs we create,” Port Social Director John Driscoll. “We’re watching marine terminals; and Responsibility Director Amy Tharpe told now to find out if it signals stronger visitors from the 87-year-old foundation. • A reduction in diesel emissions at trade growth for the rest of the year.” “The question we must ask ourselves is port thanks to fewer vessel calls. According to Port figures, 402 ships how does the Port’s business activity called in Oakland during the first three continues on page 8

7 www.portofoakland.com Jobs, continued from page 4 translate into maximum community benefit?” Officials from Battle Creek, Mich.- based Kellogg Foundation, along with some foundation grant recipients, traveled to Oakland to learn how the Port creates jobs for underserved populations. The Port listed the ways:

• A project labor agreement that establishes aggressive local-hiring goals and workforce development funding for capital construction projects;

• Using project dollars to pay for job training to create a local workforce pipeline; and

• Partnerships with developers and contractors interested in putting local residents to work.

“We find good tenants for Port property who drive good jobs,” said Port Port purchasing solar power Maritime Director John Driscoll. “These Port of Oakland Commissioners have approved an $8.9 million deal to purchase solar are skilled entry-level jobs with upward power for 20 years. The Port’s municipal utility will resell the electricity to tenants in mobility.” cluding those at Oakland International Airport and the seaport. The Port said major developments are Under the agreement, the Port will buy approximately 11,000-megawatt hours of underway that provide jobs ranging from electricity annually from a planned expansion of a solar farm located in Lancaster, CA. construction to warehouse operations. That’s about 35 percent of the renewable energy it needs by 2030 to meet California renewable portfolio standards requirements under Senate Bill 350. The Port of Oakland operates its own electrical utility. The utility purchases electricity and resells it to Airport and seaport tenants. The Port will pay $39 per megawatt hour for the solar-generated electricity. The solar farm expansion should go online in December 2020. Energy Star awarded Port of Oakland headquarters located at 530 Water St. just received its 11th consecutive Energy Star certification. Every year the U.S. EPA recognizes buildings nationwide for energy efficiency. Port headquarters is one of only 70 buildings in California to receive Among them: expansion of Oakland an Energy Star. International Airport’s International Port headquarters ranked in the top 19 percent of EPA benchmarked facilities Arrivals Building and a 280,000-square- nationwide. To achieve an Energy Star award, a building must rank among the top foot refrigerated seaport warehouse. A 25 percent most energy efficient buildings in the market. Factors that affect scoring just-completed rail yard provided 542 include building systems, operational hours, climate controls, equipment scheduling, construction jobs, said Ms. Tharpe. She and equipment monitoring. According to the EPA, on average, Energy Star certified said that 60 percent of those jobs went to buildings use 35 percent less energy and cause 35 percent fewer greenhouse gas local workers. emissions than similar buildings. Mr. Driscoll said employers are “Environmental advocacy searching for workers with skills such as is an integral part of our Port truck driving or forklift operation. “We of Oakland workforce culture,” don’t have a good base of fundamental said Port of Oakland Director skills,” he said. of Environmental Programs and Ms. Tharpe said the Port assists local Planning Richard Sinkoff. “The agencies that train workers for skilled Energy Star Award recognizes blue-collar jobs. She said developers pay energy efficiency in Port into a job-development fund 30 cents for buildings as a key element of the every employee-hour worked on a Port Port’s sustainability program.” project. During the past year, the Port About 73,000 jobs depend on the Port of Oakland has implemented of Oakland, Ms. Tharpe said. She added energy-saving measures that that workers in the San Francisco East use less power for heating, Bay where the Port is located fill two- air conditioning, and office thirds of those jobs. equipment.

8 www.portofoakland.com Oakland repurposes port properties to curb congestion Reprinted from Journal of Commerce | Apr 10, 2017 Bill Mongelluzzo, Senior Editor Thanks to container terminal consolida tion, the Port of Oakland aims to reduce congestion by using freed up parcels for container storage, truck fueling, container dray-off and other ancillary services. When one marine terminal operation ceases because of commercial developments, the opportunity to address another need arises, and the end result of this “moving of chess pieces around” is improved supply-chain velocity for the entire port complex, said John Driscoll, director of maritime. Oakland in the coming decade will set the bar for supply-chain velocity even higher as the port and city redevelop the former Oakland Army Base into a 360-acre hub for import warehouses and transloading facilities. Few ports have the available real estate to house distribution and transloading activities inside their gates. Oakland does, thanks to the closure of the former military base at the turn of the century. Since then, the port and the Moving certain key supply chain operations into the Port of Oakland itself should provide a number of benefits for port productivity. city have methodically completed most of the infrastructure work for development citizen by removing these activities from the clock without having to wait in truck of about 2 million square feet of nearby communities, Driscoll said. queues at the marine terminals. Also, distribution space. Oakland last year handled 2.3 million dray-offs free up container yard space, Of more immediacy, though, is the 20-foot-equivalent unit containers. In the thereby reducing congestion. DeNike repurposing of smaller parcels that are first quarter of 2017, loaded imports were said dray-offs from OICT are now moving no longer functional for their original up 3.5 percent and exports increased to a temporary site, but SSA is working purposes. Earlier in the decade Oakland 3.2 percent from last year. Oakland, like with the port to establish a permanent had 12 modest-sized container terminals other large gateways, contends with operation at a 35-acre site. that had been designed for the smaller terminal congestion caused by cargo Chassis dislocations and equipment vessels and cargo volumes of the 1980s surges from today’s mega-ships. Storage repair have become issues at some ports and 1990s. With the consolidation of of empty containers on marine terminals since the shipping lines more than three adjacent terminals into fewer, larger, contributes to congestion. When a former years ago began to sell their assets to modern facilities, and the closing last rail site known as the Roundhouse was intermodal equipment providers. Chassis year of Outer Harbor Terminal, the port is freed up, the port contracted with SSA availability at individual terminals ebbs down to four working container terminals, Marine, operator of Oakland International and flows during the week. When a vessel three of which are international. Container Terminal, to use the site to arrives, hundreds of chassis are required Consolidation of marine terminals and receive, store and deliver empties to to move loaded inbound containers devoting unused parcels of property for truckers. to receivers in the region. Shortages equipment storage and repairs, dray-offs Ed DeNike, SSA’s chief operating often occur. However, a neighboring and other purposes is becoming more officer, said OICT processes about 6,000 terminal may have a chassis surplus that common, especially at West Coast ports gate moves a day, 4,500 during the day developed from trucks delivering loaded which were the first to handle the bigger shift and 1,500 at night. The Roundhouse export containers and empties. ships. When port property is repurposed, is adjacent to OICT. Each day it handles Some truckers say the shortage/ almost any site, no matter how small, about 500 to 600 empty containers. If the surplus cycle could be mitigated if ports can serve some function that results in transactions involving empty containers would establish near-dock sites for the improved traffic flow in today’s high- were all processed at OICT, drivers could storage of chassis. The equipment would volume, high-velocity supply chains. expect each visit to last an hour or longer. be inspected and pre-tripped so the For example, Oakland is preparing a Turn times for empties at the Roundhouse chassis would be immediately available to request for proposals to develop a 4 to 6 average 25 minutes or less. truckers when they arrive at the facility. acre site into a station where trucks will SSA’s business plan in Northern and Driscoll said the port would be open to be fueled and weighed and drivers will Southern California also includes draying such a plan if port stakeholders agreed have access to food and other services. inbound containers from its terminals that it would help. Moving these activities inside the port as soon as they are discharged from Chassis repair operations can take up gates is not only more convenient for the vessel. Dray-offs speed the flow valuable space at a container terminal. truckers, but enhances the port authority’s of containers to off-dock sites where objective of being a good corporate truckers can access the freight round continues on page 10

9 www.portofoakland.com Mongelluzzo, continued from page 4 with a trucker appointment system that trailers for shipment to distant locations. is working well, has kept congestion to a The distribution activities at the port will Oakland has initiated a dialogue with minimum. He said truckers received little if eliminate those costly drays. stakeholders about setting up a central any pushback from their customers about The first major development in the repair site for chassis to be manned the $30 fee. When the port experienced port’s section of the former Army Base, by the International Longshore and months of congestion in late 2014 to though, will be a cold storage facility Warehouse Union, Driscoll said. mid-2015 during the West Coast labor that will be heavily export oriented. Facilitating dialogue among port disruptions, many truckers were charging Construction is expected to begin within stakeholders and soliciting views on how congestion fees that far exceeded $30. the next couple of weeks on a 370,000 to improve port productivity is already If the extended gates and appointments square-foot cold storage warehouse for paying off for Oakland. As smaller help to avoid congestion, Coyle said he Dreisbach Enterprises. Jason Dreisbach, facilities were consolidated into larger does not anticipate complaints from the president, said the facility should open in terminals with much bigger container BCO community. June 2018. exchanges, the port experienced Oakland’s goal of bringing distribution The key to the project was the port’s increasing congestion. The final straw and transloading activities into the harbor agreement to bring rail access to the came when Outer Harbor Terminals will be realized over the coming decade as 23-acre site, Dreisbach said. The cold declared bankruptcy in early 2016 and the former Army Base is redeveloped. The storage warehouse will handle mostly left Oakland. “The consolidation of 360-acre site is divided roughly in half, frozen beef, pork and poultry from the marine terminals was a huge challenge,” with the port and the city each in charge Midwest, Southeast and California’s said Dick Coyle, president of Devine of developing about 180 acres. Much of Central Valley. Some chilled product will Intermodal. the rail, roadway and utility infrastructure be handled as well. Trains with up to 36 About 90 percent of Outer Harbor’s is now in place, so construction of reefer cars will access the facility, and the container volume shifted to OICT. It warehouses, a cold-storage facility and meat will be transferred from the rail cars became apparent immediately that transloading facilities will begin. A total into marine containers. The integrity of OICT would have to add a second shift of 2 million square feet of warehouse and the product will be maintained because to handle the new business. In order to distribution facilities will be developed in the transfer will take place in the cold- jumpstart the extended gate program, phases. storage facility. the port reimbursed OICT for labor and Bringing distribution and transloading Dreisbach anticipates a quick ramping equipment costs for the first few months, activities onto some of the most costly up of activity. Some product that today but informed stakeholders it could not waterfront land in the nation is not only moves through a smaller facility will be pick up the tab indefinitely. After a series unusual, but it should also generate more shifted to the new warehouse, using of meetings with BCOs, truckers, terminal import and export cargo. At most ports, about 30 percent of the new facility from operators, equipment providers and other distribution activities involve trucking day one. Also, importers of refrigerated port users, all of the parties agreed last imported containers to warehouses products are expressing interest, and summer that BCOs would pay a fee of located 10 to 50 miles inland at a cost of Dreisbach anticipates a growing import $30 per loaded container to fund the $100 or more per trip. The merchandise trade, such as seafood from Asia. He extended gates. is discharged and distributed locally, or sees the facility eventually handling 140 Coyle said the extended gates, along is transloaded into 53-foot containers or 40-foot reefer containers a day.

10 www.portofoakland.com