# Presentation: 321068

## 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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## 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

- 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

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

**Notes:**
(click) The other half of our cargo moves east of the the Rocky Mountains to the Midwest, Gulf States and Eastern Seaboard.
Cargo arriving in Long Beach today will be in Chicago in 3 to 4 days and in New York in 5 to 6 days. 

## 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

##     Terminal Land ThroughputFactors: 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

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

## 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)

## Megaships

## 8000 TEU Ships

## 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

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

## POLB/POLA Daily Trips

**230,235 PCEs **

**98,490 PCEs **
- (Passenger-car-equivalents)

## 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

- 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

## 6. Expansion ProgramsMegaterminals

## 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

- Total Cost $1.9 Billion – in process of revising upward
- Does Not Include:
- Pier W – big fill
- North Harbor Redevelopment

**Notes:**
Right now we have 99 different projects we are working on. I’ve just told you about 6 of them.  Fortunately, the others are smaller but we will be spending more money than ever before in capital development.

## Further Landfill

**Notes:**
(click) Within the next five years, we also plan to add more landfill to the port.  
We have received the environmental clearances necessary to add some 267 acres of landfill.
And while this is merely one of several designs being considered for the new landfill, the land will probably be connected in some way to the former Navy mole.

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

## Gerald Desmond Bridge Replacement

**Est. cost: $711M (escalated$)**
**Part of I 710 Freeway expansion, 20 miles $4+ billion**

**Gerald Desmond Bridge Replacement**

## H-Tower with Straight Legs

## Port of Long BeachRail Master Planning Study

**Railyard capacity model**
**Intermodal mode split analysis**
**Rail simulation model; rail LOS**

- Port of Long BeachRail Master Planning Study

## Baseline Rail Yard Projects (2020)Mega-Terminal Program

*	*

*Total Cost:  ***$293 million**

## 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

## 2000

- 2020

- 2010

***3%***

***6%***

***9%***

***7%***

***5%***

***5%***

**Notes:**
Locomotive and commercial marine emissions are significant contributors to the statewide NOx, SOx, and diesel PM emissions inventory  -- and the emissions are becoming a larger proportion of the emissions pie in future years.  On this chart the red slice is the marine emissions contribution and the gold, trains.  As you can see here, the NOx contribution is projected to increase from 9% to 16% or almost double between 2000 and 2020.. 

## 2000

- 2020

- 2010

***10%***

***6%***

***8%***

***15%***

***26%***

***10%***

**Notes:**
Diesel PM from commercial marine vessels and locomotives is an even larger contributor to the overall emissions, responsible for about 16% of the statewide diesel PM emissions in 2000 and 36%in 2020 -- over 60% increase from 2000 levels.  

## 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

## Port Container Traffic - Rail vs. Truck

**Port Container Traffic - ****Rail vs. Truck**

## 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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