June 16, 2004 FHWA Talking Freight Seminar

1. June 16, 2004FHWA Talking Freight Seminar Programming for Trade Growth Louis Rubenstein Port Traffic Engineer r8

2. Outline Growth Trends Container Shipping Basics Bigger Ships, Terminals Landside Impact Constraints Expansion Programs Environment Reducing Truck Impacts

4. Why has West Coast Trade Increased? • Overall Growth in World Trade • Income growth—as reflected in GDP growth • Decline in tariff barriers—1974=7.1%; current=1.9% • Decline in transportation cost—large ships; double tracks • West Coast Competitive Advantages • Increase in Asia trades--% U.S. in 1970=8%; 2002=40% • Post Panamax container vessels—ships>106 ft beam • Intermodal rail system and connecting freeways • Good weather • Large local market • Labor supply

5. Socal Ports May Lose Market Share • Showing a steady increase since the mid-1990’s, the Ports of Long Beach and Los Angeles lost 1.5% market share in the first half of 2003 • Increased capacity at PNW ports • Increased capacity on all-water routes • West coast currently 48% US total sea trade • Growing freeway congestion

6. National Demand • One half of all LB cargo moves east of Rockies. • Chicago: 3- 4 days. • NY: 5-6 days.

7. 2. Container Shipping Basics • Competition • Service and market share higher priority than cost • Sample fee – ship 20 ft container from Shanghai to Oakland $1900, to Chicago $2500 - Oakland to Shanghai $700 • Volume measured in TEUs, twenty foot equivalent units, 80% are FEUs (40 ft+) • Weekly service – N Asia loading 4 days, sea journey 2x6500 miles (27 days) – N America loading 4 days • 6000 TEU ship capital cost $120 m or $20,000/TEU • Operating cost 4000 TEU ship - $15/TEU/Day • 12,000 TEU ship - $12/TEU/Day

8. Terminal Land ThroughputFactors: dwell time, value, stack height, empties, crane rates, # handlings, # sorts, random pick up, inspection Container Yard $/TEU 8500 TEU/acre/yr new stacking system 7000 TEU/acre/yr grounded 3800 TEU/acre/yr wheeled On Dock Rail Yard 10 container lifts/track foot year 1 acre of rail yard/1000 feet track

9. www.rutner.com/LOGT4232/slides/LOGT%204232%20Ch06%20-%20Liners.pdfwww.rutner.com/LOGT4232/slides/LOGT%204232%20Ch06%20-%20Liners.pdf

10. 3. Bigger Ships Bigger Terminals 10,000 TEU ship weekly service, 85% discharge 442,000 x 2 = 884,000 TEU/yr If wheeled: 3800 TEU/acre/yr = 230 acres If grounded: 7000 TEU/acre/yr = 125 acres If 25% by rail 221,000/10 = 22,100 track feet rail yard = 22 acres 20% TEU, 80% FEU – 491,000 containers/yr 1.3 truck trips/container, 5.3 days/wk – 2300 truck trips/ day (0% rail)

11. Megaships

12. 8000 TEU Ships

13. Limits to Ship Size • Demand • Suez Canal 12,000 TEU • L: 1312’, W: 185’, D:56’, AD: 185’ • Panama Canal Current: 4,400 TEU • W:106’ • Future: 12,000 TEU • Malacca Strait 18,000 TEU • Port Infrastructure • Bridge heights, channel depths & widths

14. 4. Landside Impact - POLA/LB Inland Flows

15. POLB/POLA Daily Trips 230,235 PCEs 98,490 PCEs (Passenger-car-equivalents)

16. 5. Constraints -Major California / Federal Laws • CA: Existing ports encouraged to modernize & construct within existing boundaries • No new ports allowed on coastline • Limits physical boundaries of Port • Tidelands Trust • Truck appointments • EIR • Federal: Wetlands, EIS • Marine Transportation Security Act

17. Community Relations • Some activists are calling for a halt to Port growth • If we don’t grow responsibly, public opposition could grow • Infrastructure improvements depend on community support • All stakeholders in the supply chain must become more aware of community concerns

18. 6. Expansion ProgramsMegaterminals

19. Mega-Container Terminal Program • 5 Terminals • Each 300+ Acres • Piers T, A, E, G, J • Pier S (217 Acres) • North Harbor Planning Study • Moving Toyota to North Harbor & Expanding Pier A – current Hanjin location

20. Megaterminal Program Cost • Total Cost $1.9 Billion – in process of revising upward Does Not Include: • Pier W – big fill • North Harbor Redevelopment

21. Further Landfill

22. TONNAGE SHARE OF U.S. CONTAINER TRADE—National Dredging Needs Study of U.S. Ports and Harbors: Update 2000 (USACE & DRI WEFA)

23. Gerald Desmond Bridge Replacement • Est. cost: $711M (escalated$) • Part of I 710 Freeway expansion, 20 miles $4+ billion

24. H-Tower with Straight Legs

25. Port of Long BeachRail Master Planning Study • Railyard capacity model • Intermodal mode split analysis • Rail simulation model; rail LOS

26. Baseline Rail Yard Projects (2020)Mega-Terminal Program Total Cost: $293 million

27. 7. Environment Port equipment alternative fuels study Yard equipment diesel equipment reduction program Yard equipment alternative fuels Slow ship lanes Cold ironing Short line RR diesel emission reduction Coke terminal dust control

28. Marine & Locomotive Contribution to Statewide NOx Emissions 7% 6% 3% 9% 5% 5% 2000 2020 2010

29. Marine & Locomotive Contribution to Statewide Diesel PM Emissions 10% 6% 10% 26% 8% 15% 2000 2020 2010

30. 8. Reducing Truck Impacts Extended gate hours 15% night  40% Virtual empty container yard (-5%) Virtual weigh in motion Electronic seals, RFID tags – improved terminal/trucker communications Additional on dock, near dock rail (-10% ) Share train yard Shuttle trains - east and west bound, local, intermodal SR47 (Alameda St) Truck Expressway (-7%) I710, bridge improvements

31. Port Container Traffic - Rail vs. Truck

32. Agile Port • “Block Swap” Full-length trains are built at the on-dock yard, but they consist of blocks of cars (10 containers/car) each sorted for specific eastern destinations. At the inland facility, these blocks are then sorted with blocks from other trains to create destination-specific unit trains. • “No Sort” Shuttle Trains Unsorted full-length trains are built at the marine terminal. All sorting of containers into destination-specific unit trains is done at the inland facility. Requires the container to be offloaded from the inland facility to other destination specific trains.