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June 16, 2004 FHWA Talking Freight Seminar Programming for Trade Growth Louis Rubenstein Port Traffic Engineer r8 Outline Growth Trends Container Shipping Basics Bigger Ships, Terminals Landside Impact Constraints Expansion Programs Environment Reducing Truck Impacts

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june 16 2004 fhwa talking freight seminar

June 16, 2004FHWA Talking Freight Seminar

Programming for Trade Growth

Louis Rubenstein

Port Traffic Engineer

r8

outline

Outline

Growth Trends

Container Shipping Basics

Bigger Ships, Terminals

Landside Impact

Constraints

Expansion Programs

Environment

Reducing Truck Impacts

slide4
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
socal ports may lose market share
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
national demand
National Demand
  • One half of all LB cargo moves east of Rockies.
  • Chicago: 3- 4 days.
  • NY: 5-6 days.
2 container shipping basics
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
slide8
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

3 bigger ships bigger terminals

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)

limits to ship size
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
slide15
POLB/POLA Daily Trips

230,235 PCEs

98,490 PCEs

(Passenger-car-equivalents)

5 constraints major california federal laws
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
community relations
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
mega container terminal program
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
megaterminal program cost
Megaterminal Program Cost
  • Total Cost $1.9 Billion – in process of revising upward

Does Not Include:

  • Pier W – big fill
  • North Harbor Redevelopment
slide22
TONNAGE SHARE OF U.S. CONTAINER TRADE—National Dredging Needs Study of U.S. Ports and Harbors: Update 2000 (USACE & DRI WEFA)
slide23
Gerald Desmond Bridge Replacement
  • Est. cost: $711M (escalated$)
  • Part of I 710 Freeway expansion, 20 miles $4+ billion
slide25
Port of Long BeachRail Master Planning Study
  • Railyard capacity model
  • Intermodal mode split analysis
  • Rail simulation model; rail LOS
7 environment

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

slide29
Marine & Locomotive Contribution to Statewide Diesel PM Emissions

10%

6%

10%

26%

8%

15%

2000

2020

2010

8 reducing truck impacts

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

agile port
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.

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