MARCH 2018 MARITIME e -NEWS

Port of Oakland adopts new 5-year strategic plan

The Port of Oakland released a new 5-year Click here to see strategic plan this month that pairs business the complete Port of Oakland 5-year expansion with community benefits. Called strategic plan “Growth with Care,” the plan envisions more jobs and economic stimulus as the Port grows. summer. Another “We can grow, but we want our neighbors to grow with us,” 440,000-square-foot said Port of Oakland Executive Director Chris Lytle in a preamble distribution center is to the 21-page strategic document. “We must conduct ourselves planned at a nearby in the public interest for the public good.” Seaport Logistics The Port said its plan would serve as a blueprint for expansion Complex. into the next decade. Key elements of the plan include: At the Airport, • Projections for record business volumes over five years in Oakland’s growth the Port’s Aviation and Maritime businesses; strategy is predicated on more flights – • Large capital investments on major projects; and whether domestic or • An emphasis on sustainability to minimize the international. Target environmental impact of growth. destinations over the next five years include According to the strategic plan, Oakland cargo volume should New York, Boston, Washington, D.C., Asia, Canada and South reach 2.6 million 20-foot containers by 2022. The Port’s Oakland America. International Airport is expected to serve 14-to-15 million The Port’s third business – Commercial Real Estate – will passengers annually by then. Both would be all-time highs for concentrate on maintaining high occupancy rates, according to Oakland. the strategic plan. It will also support residential development Growing business volume should lead to more hiring, the Port planned in the Port’s Jack London Square neighborhood. said. The Port added that it would prioritize local residents in A centerpiece of the strategic plan will be curbing diesel filling jobs. emissions, the Port said. According to Port data, truck emissions The strategic plan calls for 8 percent more containerized are down 98 percent since 2009 while vessel emissions have cargo volume in Oakland by 2022. Airport passenger traffic declined 76 percent. The strategic plan commits the Port to an should increase between 12 and 20 percent in the same overall reduction of 85 percent by 2020. timeframe, according to the plan. The plan envisions cargo growth from two capital projects See Maritime Strategic Plan at the seaport. The first is a 283,000-square-foot refrigerated distribution center called Cool Port Oakland that opens this on pages 4-5

Oakland to launch online portal

Port of Oakland officials have promised a officials said it would provide a single “This is the next big thing in global digital shipping platform by mid-year to window for cargo owners or freight trade,” said Oakland Senior Project speed up global trade flows. The Port said haulers who want to: Administrator Eric Napralla. “It’s a it’s building an online portal for transac- • Get personalized cargo status common platform – one place where tions that range from tracking to trans- updates; everyone can go to more easily view and porting containerized cargo. The move direct their shipments.” aligns with an industry migration toward • Check ocean vessel schedules; Development of the portal is already digitalization of international supply underway and it will roll out in phases, the • Pay freight-handling fees; or chains for the sake of efficiency. Port said. It projected a third-quarter 2018 The Port previewed its portal - called • Make appointments to pick up launch date for the site. a digital collaboration platform - at an containerized cargo. American Association of Port Authorities meeting in Oakland this month. Port continues on page 2

www.portofoakland.com Port of Oakland imports jumped 14.9 percent last month The Port said container volume grew in The Port adopted a strategic plan Total volume – including imports, all categories, setting records along the this month projecting 8 percent cargo exports and empty boxes - grew 7.6 way. Oakland’s performance follows growth in the next five years. Here’s how percent to 188,175 containers, another release of a new 5-year strategic plan February’s totals fit the forecast: February record. calling for record cargo volume annually Oakland handled the equivalent of The Port said continuing strength in through 2022. 73,666 20-foot import containers, the U.S. consumer spending helped drive its “A lot can happen in an uncertain highest February total in its 91-year import business. It advised that March trade environment, but we’re off to an history. volume could dip due to post-Lunar New encouraging start to 2018,” said Port of Export volume increased 1.8 percent, Year factory holidays in Asia, Oakland’s Oakland Executive Director Chris Lytle. the third consecutive month of export primary market. “There’ll be challenges along the way but growth in Oakland. we still see steady cargo growth into the future.”

CenterPoint may begin work this summer

Construction could begin this summer on Industrial real estate giant CenterPoint other U.S. port has the land to duplicate a landmark logistics campus at the Port is building a 440,000-square-foot facility Oakland’s marriage of transportation and of Oakland. Developer CenterPoint Prop- at the Port. It will be adjacent to the logistics capabilities. erties said this month that it awaits only Port’s new $100 million railyard. Marine “We started discussions with permits to start on the Port’s long-antic- terminals will be just across the street. CenterPoint back in 2015,” pointed out ipated Seaport Logistics Complex. The “In this business, fast access to Port Maritime Director John Driscoll. “It complex is considered the linchpin of the transportation is essential,” Port of was a long road, but it has been a real Port’s future – a distribution hub driving Oakland Executive Director Chris Lytle pleasure and we couldn’t be more excited additional containerized cargo across told the CenterPoint Board. “You’re so about the results.” Oakland docks. close you’ll be able to throw a rock to our Mr. Lytle said the Port expects cargo Port officials met with CenterPoint marine terminals and railyard.” volume to grow about 2 percent annually Board members in February to tour the Port Commissioners approved a for the next five years. The forecast 27-acre building site. Both sides have long-term lease for CenterPoint last factors in increased business from the since expressed hope for a mid-year start December. The deal followed two years Seaport Logistics Complex, he said. to construction. of negotiations. It culminated years of CenterPoint has approved a “We’re eager to get underway with planning by the Port to develop land once revolutionary jobs agreement that this project,” said CenterPoint Chief used as an Army supply depot. gives Oakland residents first crack Development Officer Michael Murphy. CenterPoint’s project is the first phase at employment. Board of Port “We like the Port’s vision and we see this of a planned Seaport Logistics Complex Commissioners President Joan Story partnership as the future of shipping and that could eventually encompass 180 labeled it a national model for community logistics.” acres. The vision for the Complex: hiring. “Your willingness to engage with modern freight distribution centers in the the community is unique,” she told the heart of the Port. Port officials said no CenterPoint Board.

Online Portal continued aggregate information from Oakland’s merchandise. Trucking companies four terminals to create a harbor-wide would know exactly when and where to The Port said it’s working with New community portal. dispatch drivers for container pick-up. Jersey-based logistics software provider Ports nationwide are considering Marine terminals would benefit from more Advent Intermodal Solutions LLC to digital portals to accelerate freight efficient movement of cargo in and out of create the portal. The firm’s eModal transport. Oakland said it intends to be the Port. port community system is already used one of the first to go live with the new “They’ll only log in to the portal once,” by every marine terminal operator in technology. It could also be one of the Mr. Napralla explained. “Then they can Oakland. That will make it easier to few with an online portal that’s used by navigate the entire Port with a few simple roll out a common platform, the Port every terminal operating within a port. clicks.” explained. The Port said shippers would be Terminals are the pivot point of better able to manage international containerized trade. That’s where ships, supply chains once its portal is in place. trucks and trains converge to transport For instance, cargo owners would know cargo. According to the Port, Advent will with greater precision when to expect

2 www.portofoakland.com Battery-powered truck joins Oakland fleet A battery-powered truck has entered the “We’ll be following this experiment GSC Logistics said that its Port of Oakland fleet for the first time, closely,” said Richard Sinkoff, the Port’s demonstration truck would be used on testing the feasibility of zero-emission Director of Environmental Programs and short-hauls during a three-year trial. GSC freight hauling. GSC Logistics, a major Planning. “If battery-powered vehicles can is using the rig to shuttle cargo containers California trucking operator, introduced do the job efficiently and affordably, they between its depot and Oakland marine the 10-ton rig in February. It’s the only can help change the way we do business.” terminals. The company explained that electric truck alongside more than 6,000 The Port said it has reduced diesel the vehicle’s 100-mile battery range is diesel-powered vehicles registered at the emissions 98 percent in the past decade unsuitable for long-haul drayage. Port. through clean truck programs. It’s “We’re making four-to-five runs a day The $250,000 big rig represents promising to update its Maritime Air within the Port’s perimeter and so far, the latest effort to minimize the Quality Improvement Plan this summer the truck’s performing well,” said GSC environmental impact of containerized with an emphasis on zero-emissions Logistics CEO Scott Taylor. “Our next step trade in Oakland. If it proves effective, technology. The challenge: battery- will be to get it out on the road.” Port officials expect motor carriers to powered equipment designed for GSC Logistics moves the equivalent of acquire additional battery-powered container handling isn’t readily available. 120,000 20-foot cargo containers annually trucks for hauling cargo containers. The That’s why a test of electric big rigs is through Oakland. The company said it Port has indicated its intention to explore attracting so much attention. would consider purchasing up to three technology that could make diesel- additional electric trucks if its test proves powered cargo handling obsolete. successful.

3 www.portofoakland.com Port of Oakland SEAPORTGrowth FACILITIES with Care Strategic Business Plan 2018-2022

580 nal closure to achieve safe, stable and Some items not to scale MAGNETIC N 14° 11' 0 1/2 1 nautical mile OCEAN CARRIER BY TERMINAL Building Legend E efficient operations. Shippers have a 0 1/2 1 mile W TRAPAC TERMINAL 0 1/2 1 kilometer 80 1 Impact Transportation (Buildings 807, 806, 805) renewedCOSCO SHIPPING confidence Lines in Oakland and our S Hapag - Lloyd 2 Port Transfer (Building 804) EBMUD “K” Line Terminal Gates 3 PCC Logistics (Building 803) container* Mitsui O.S.K. Lines traffic is growing. This recovery Container Cranes (Port Owned) 4 Planned Site of port drayage truck * NYK Line fuel & service center Yang Ming Line Container Cranes (Tenant Owned) was* achieved in part through a series of Toll Plaza 5 Port Truck CSC & Sea-Logix / Customs (westbound only) Cranes (Private) Northport We Exam Station — 1425 Maritime St. st B Overweight Corridor Beach urma Rd 6 Shippers Transport Express investmentsBEN E. NUTTER TERMINAL and innovations that also po-

City OAB Area . Prologis 1 West G 7 MDI Port Scales AMNAV Maritime rand A American President Lines Tug Services v. 8 Pacific Transload sitionCMA CGM the Port, the terminal operators and Shore Power Capable . 1 COSCO SHIPPING Lines 9 Prologis 3 9 urma Rd 8 1 GSC Logistics West B 10 Dredge Evergreen Line A Admin Buildings Prologis 2 Materials 1 10 Unicold the* labor unions for further growth. Rehandling Facility 4 R RFID Service Center t. 17th S 2 11 U.S. Customs and Border Protection City OAB Area 21 20 13 3 . 12 7 22 R Port Harbor Facilities - 651 Maritime St. OAKLAND INTERNATIONAL ridge tage Rd 13 Pacific Layberthing South y B X439 on CONTAINER TERMINAL – The r Marine Terminal Improvements a F S 5 Pinnacle an P American President Lines -Oakland B Port Truck Parking 14th St. ablo A o X438 & Ancillary Services 14th S * ANL v . t. Port. and its tenants have made substan- rancisc t * CMA CGM an F OUTER HARBOR INTERMODAL TERMINAL S X409 23 24 * COSCO SHIPPING Lines

. * Evergreen Line Maritime S y Oakland tial capital investments and introduced

CenterPoint . Hamburg Süd

.

X410 t

t . . . S t B20-24 S t Properties t

e t 14th S * Hapag-Lloyd e l n t. 1599 Maritime St. i

k

l

r 24 ood S e ne alta S a (Available) d 980 * Hyundai Merchant Marine n W M Mandela Pk w Union S er A multiple operating innovations to improve TraPac P ha y “K” Line C a * Temporary W Turning . bor r Line ar t. 11th S Mediterranean Shipping Company H 8th S 880 tthroughput,. * reduce waiting times and cut

. er 1,650 ft / 502.9 m 7 t * Mitsui O.S.K. Lines t . . t t u 8th St. uther King J 8 . O C40 6 t NYK Line 25 ush S X r on S ine S y S . B tin L . a Basin t

P t

nd B costs* Orient Overseaswhile Container maintaining Line a safe working y S la Mar k 26 la X435 7th St. Pacific International Line a 11 7th St. C ashingt O 880 7th W

Kirkham S Pasha . St. * t X434 . 3 t .

30 t environment. Port and tenant investments 5th St. 6th St. * t S 32 X430 X433 12 * hestnut S 33 ConGlobal ilbe r 880 Magnolia S X431 C F * Yang Ming Line XC41 TraPac Terminal t. 3rd St. 4th S have totaled: 2800 7th St. Maritime S t. y * Zim A a (510) 286-8600 7th S 9 Sit. te www.trapac.com Cool Port 3rd St. oadw Oakland 555 Maritime r Port of B B25-33 St. Complex 34 2nd St. Oakland t. 10 Headquarters • $100 million in the CoolPort project 7th S CMI Embarc MATSON TERMINAL BNSF ( A adero W. JIT) Railr Oakland In Charles P. Howard Ben E. Nutter oad ternational G Railport–Oakland Matson 35 Middle Harbor 333 Maritime S ateway Terminal Truck & Water St Terminal t. 1408 Middle Harbor Rd. 1 Market St. PMA . Shoreline Park www.bnsf.c Ancillary Services Fireboat * 5190 7th St. om www.uprr.com . B67-68 Jack London S XC52 (Public Access) (Available) Potomac quare ed X415 • $55 million in the TraPac Terminal (510) 208-8860 Unit Roundhouse Oakland- Port View Park M ermodal X417 C51 iddle Harbor Rd Int 1195 Middle Harbor Rd. Schnitzer X416 Alameda- X B35-38 (Public Access) . iddle Harbor Rd X422 SF Ferry 37 M (Available) Steel 68 XC50 A 67 West Gate r X437 Matson Terminal bo = Carrier operates vessels 2505 Middle Harbor Rd. Wildlife 1579 Middle Harbor Rd. Matson Inner Har • at$63 listed terminal million in the Oakland (510) 238-4400 Oakland International East Gate Auto * Container Terminal (510) 446-2403 Turning 38 Habitat www.ssamarine.com 1717 Middle Harbor Rd. B55-59 A A www.ssamarine.com (510) 238-4400 B60-63 www.ssamarine.com X436 1,500 ft / 457 m International Container Terminal X448 Jetty: 2580 f X447 t / 869 m X446 63 Basin 62 XC10 XC11 XC12 XC13 XC14 XC15 XC16 XC17 XC18 XC19 61 60 55 56 57 58 59 • $25 million in Ben E. Nutter Terminal Facilities. December 2017. Oakland Estuary / Harbor Channel Alameda Middle Harbor • $100 million in the Outer Harbor In cooperation with the Port, our Maritime Strategic Plan makes it the seventh-busiest container marine terminal operator tenants have port in the , and ranks San introduced: Since our founding in 1927 the Oakland Francisco Bay among the three principal • Extended Gate Hours to spread the seaport has served as the principal ocean U.S. Pacific Coast gateways for U.S. daily workload over additional shifts gateway for international cargo shipments containerized cargo. About 76 percent and reduce congestion; in Northern California. We manage more of Oakland’s trade is with Asia. Europe than 1,300 acres of maritime-related facil- accounts for 14 percent, Australia/New • Appointment Systems to eliminate ities. We serve a local market of over 14.5 Zealand and Oceania about 5 percent and long morning truck queues and million consumers, 34 million more within other foreign economies about 5 percent. facilitate driver and dispatcher a seven-hour drive, and 50 percent of About 0.2 percent of Oakland’s trade is planning the US population within 3-4 days by rail. domestic (Hawaii and Guam) and military Four active container terminals and two cargo. 1999 2017 2031 intermodal rail facilities serve the Oakland The care we take with our trading Largest 8,000 21,000 Containership TEUs TEUs waterfront. All shipping channels and 90 partners must be extended to our Number of 11 percent of berths at the Port are dredged 6 Terminals community, so Oakland and its residents Marine Terminals Terminals to -50 feet, capable of accommodating are sustained and grow with the Port. TEUs Handled 1.69 million 2.37 million the largest vessels serving North Ameri- We are working to reduce emissions TEUs TEUs ca. The Union Pacific and BNSF railroad Number of and congestion in the seaport area, 44 45 facilities are located adjacent to the heart Ocean Carriers and to encourage local hiring for Port Average of the marine terminal area to provide a 49 acres 133 acres construction projects. Terminal Size reliable and efficient movement of cargo Largest Marine 81 acres 291 acres between the marine terminals or transload Revenue & Volume Trends Terminal 2013–2019 facilities and the intermodal rail facilities. 2,300 152 150 Maritime Cargo Outlook – The Maritime The Port’s maritime business has 2,450 recovered from the worldwide recession 148 Division anticipates a 5-year run of record 2,400 155 and is growing. We are handling more 146 cargo volume starting with more than 2.4 2,350 containers with fewer but more efficient 144 million cargo containers in 2018. By 2022, 2,300 142 terminals, and on fewer but larger ships. 140 the Port expects to handle the equivalent Today the seaport is the preferred TEUs, in 1,000s 2,250 138 of 2.6 million 20-foot containers annual-

136 in $ millions Revenue, 2,200 ly—8 percent more volume than the Port gateway for Northern California importers 134 2,150 132 has ever processed in a single year. The and exporters. To sustain and grow 2013 2014 2015 2016 2017 2018 2019 Port foresees increased cargo volume that position the Port must earn every Volume Revenue container load with efficiency, customer arriving at Oakland on larger ships. The service, reliability and safety. Maritime Status: CoolPort development and expanded rail and logistics capabilities will give the sea- The seaport loads and discharges more Operational Stability – In recent years port and its customers new tools to han- than 99 percent of the containerized the Port of Oakland, its partners and its dle a wide range of cargo types. Northern goods moving through Northern stakeholders have worked through a deep California’s booming freight market will California, one of the nation’s largest recession, a difficult management-labor mega-regions. Oakland’s cargo volume drive the growth. dispute, a labor shortage and a termi- continues on page 5

4 www.portofoakland.com Maritime Strategic Plan continued Objective Increase discretionary Vessel Size Industry Challenges – Besides maintain- intermodal cargo to 15 percent Infrastructure Demands ing the capacity necessary to accommo- and grow refrigerated exports Crane Raising date growth, the Maritime Division must by 10 percent and imports by 5 address ocean carrier trends and changes percent. in the way containerized trade is being Strategies Extend our marketing efforts conducted. To handle that growth with to western grain and Midwest care, the Port will pursue every opportu- frozen meat exporters 2005 2010 2015 nity to increase efficiency and strengthen 10,000 TEUs 14,000 TEUs 18,000 TEUs Pursue strategies that will our competitive position. Despite major better utilize our extensive rail realignment of ocean carrier alliances in Goal: Improve Customer Service resources early 2017, the Port has maintained oper- Objective Introduce new logistics ational stability and terminal throughput. Promote new transload and capabilities. Increasing vessel size has implications refrigerated cargo capabilities for yard and berth space requirements, Strategies Develop logistics facilities – Objective Obtain new first port of call including the Seaport Logistics and the Objectives and Strategies below service. address those challenges. Complex – to meet customer Strategies Work with importers through needs for an efficient and cost- Maritime Objectives and the Port Efficiency Task Force effective supply chain Strategies: (PETF) to influence ocean • Seaport Logistics Center carrier deployments buildout Goal: Grow Net Revenue Strengthen terminal and rail • Cool Port development Objective Maximize local/regional market performance to attract first-call buildout penetration. intermodal imports Objective Reduce marine terminal truck Strategies Cargo recapture, especially Objective Differentiate Oakland from our wait times. the Utah and Colorado competitors. Strategies Minimize trucking turn times markets Strategies Tell the Port’s success stories and costs through operational Continue to market our through industry meetings and improvements services beyond Northern and media Implement a new turn time Central California shippers Increase cargo velocity measurement system Work with ocean carriers, complex-wide Implement a common terminals and truckers Objective Maximize net revenue from data portal to facilitate to maximize Oakland’s Maritime property. digitalization of transactions participation in newly and communication between permitted rice exports to Strategies Tightly manage land assets to supply chain participants China prevent over/under supply Maximize coverage and Work closely to develop Maximize space leases use of extended gates and automotive parts strategies Objective Improve cost-competitiveness. appointment systems that support local auto Strategies Raise and add cranes to manufacturers and grow this Goal: Modernize and Maintain accommodate larger vessels market segment Infrastructure and higher container loads Explore bulk and break-bulk efficiently Objective Modernize wharf and terminal cargo opportunities structures. Minimize trucking turn times and costs through operational Strategies Raise and add container improvements cranes to handle larger vessels efficiently Maintain and upgrade bollards, Ocean Carrier Alliances & Consolidation fenders, wharves and shore power 2016 Carrier Alliances 2017 Carrier Alliances

APL Hapag-Lloyd Hyundai Yang Ming Hapag-Lloyd ONE

MOL NYK OOCL THE Alliance G6

China Shp’g CMA CGM United Arab CMA CGM COSCO

Ocean 3 Evergreen OOCL Ocean Maersk MSC 2M

COSCO Evergreen Hanjin Maersk MSC Hyundai

K-Line Yang Ming 2M + HMM CKYHE

5 www.portofoakland.com