Port of Los Angeles. America s Port. San Pedro, California October 2014

Transcription

1 Port of Los Angeles America s Port San Pedro, California October 2014

2 San Pedro Bay Port Complex TRAPAC Autos YM - WBCT Pasha Vacant - 84 CS WBCT Liquid Bulk YTI 185 Cruise Evergreen -205 Liquid Bulk APL 292 APM 400 Marinas SSA CUT 95 2

3 Port of Los Angeles at a Glance Founded in 1907 State Tidelands Trust Proprietary Department Non-Taxpayer Supported Landlord Business Model Governance 5-Member Board 7,500 Acres 4,300 Land / 3,200 Water 43 Miles of Waterfront 84 Gantry Cranes 270 berths and 27 cargo terminals

4 Diversified Port Containers Break bulk (autos, fruit, cement, steel) Liquid bulk (crude, refined products) Cruise Rail Fishing Commercial Recreation/Marinas Industrial (refinery, repair) 4

5 Economic Impact San Pedro Bay Ports Cargo Value (import/export): $285.4 billion (CY 2013) Employment (Direct City of Los Angeles Harbor Department) 994 authorized positions at the Port (FY 2013) Employment (Related) 3.6 million jobs throughout the U.S. 1.2 million jobs throughout California 896,000 jobs throughout the Southern California Region State and Local Tax Revenue: Value of Trade to the Economy: (import and export trade) $5.1 billion throughout California $21.5 billion throughout the U.S. $58.7 billion throughout California $240.4 billion throughout the U.S. 5

6 Non-Container Terminals Commodity 2013 Steel Products 2.25 million metric tons Metal Scrap 874,094 metric tons Fruit 87,373 metric tons Autos 169,107 units Liquid Bulk 60.8 million barrels 6

7 Container Terminal Customers 8 Container Terminal Customers: APM Terminals CUT Eagle Marine (APL) China Shipping Everport (Evergreen) Yang Ming TraPac Yusen Terminals Inc. Features: Large backlands On Dock Rail / Near Dock Rail 86 Electric Gantry Cranes Deep water berths (45 or greater) 7

8 Global & US Port Rankings R A N K 1 st in the U.S. since 2000 CONTAINER VOLUME 8 th in the World Los Angeles/Long Beach CONTAINER VOLUME Global 1. Shanghai, China Singapore Shenzhen, China Hong Kong Busan, South Korea Ningbo, China Qingdao Los Angeles/LGB Dubai, Arab Emirate Guangzhou, China 13.0 Top Container Ports (in millions of TEUs CY 2013) North America 1. Los Angeles Long Beach NY/NJ Savannah Vancouver Oakland Norfolk Manzanillo Houston Tacoma 1.9 8

9 Top Trading Partners & Commodities TOP 5 TRADING PARTNERS In Cargo Value, CY China/Hong Kong $136 billion 2. Japan $40 billion 3. South Korea $16 billion 4. Taiwan $12 billion 5. Vietnam $11 billion IMPORTS Containerized, CY Furniture 400,879 TEUs 1. Auto Parts 342,977 TEUs 3. Apparel 336,702 TEUs 4. Electronics 217,617 TEUs 5. Footwear 167,143 TEUs EXPORTS Containerized, CY Wastepaper 293,523 TEUs 2. Animal Feeds 216,181 TEUs 3. Scrap Metal 124,786 TEUs 4. Cotton 83,544 TEUs 5. Soybeans 50,731TEUs 9

10 Port of Los Angeles TEU 800, , , , , , , ,

11 2014 Outlook ILWU Contract Automation New ways to move cargo Competition Canada, Mexico, other ports Near shore MFG Volumes Large ships and peak volumes Congestion issue Chassis New Shipping Alliances Larger ships 3 main groups Capacity management No rate increases

12 Battle for Discretionary Cargo Prince Rupert Sea/Tac Eastern Canada OAK Norfolk NY/NJ LA/LB Savannah Depth 50 or greater Depth 45 or less Houston Mobile Jacksonville Lazaro Cardenas 12

13 Competitive Service Times 13

14 Extensive Rail Network Connecting U.S. SLC Denver Omaha Chicago Columbus New York KC St. Louis Memphis LA Atlanta Dallas El Paso Laredo San Antonio Houston New Orleans 14

15 2013 San Pedro Bay Ports Intermodal and Local Cargo Flow (Import and Export Loads and Empties) 65% Local Transit Container Vessel San Pedro Bay Cargo Terminals 25% 10% trans-loaded cargo, which is trucked/railed in domestic equipment 30% National Shipments/Direct Intermodal On-Dock Rail Near/ Off-Dock Rail <1% Long-Haul Truck 15

16 What is Changing? Ongoing drive by shipping lines to improve TEU slot cost o Ships are getting much larger o Creation of major global shipping line alliances Port Terminal Automation Port Competition o Panama Canal Expansion o Suez Canal o US East Coast Ports o West Coast Canada Ports o West Coast Mexico Ports 16

17 Creation of Mega Shipping Alliances G6 Ocean 3 CKYHE 2M 17

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19 Port Competition US East Coast Ports West Coast Mexico o Lazaro Cardenas West Coast Canada o Vancouver, BC o Prince Rupert Suez Canal Bayonne Bridge NY-NJ Panama Canal Expansion 19

20 Panama & Suez Canal Panama Canal Opens 2015 Tolls increases? Today $85/TEU Line haul cost savings will be the key Are East Coast Ports ready? Suez Canal Handles much larger ships Going to USEC via stops in Mediterranean Better cost utilization However, need more ships in the rotation 20

21 Panama Canal Expansion 21

22 Container Terminal Automation Source: Hamburg Port Authority 22

23 Capital Improvement Spending (Million Dollars) $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Capital Expenditures (Budget) Capital Expenditures (Actual/Estimated) FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 Utilization Rate: 49% 49% 68% 90% 86% 62% 90% 82% 23

24 Annual Budget Annual Budget FY 2014/2105 $ Capital Improvement Budget Terminal Improvements $ % Transportation Infrastructure $ % Maritime Services $ % Public Access / Environmental Enhancements $ % Security $ % Total $ *In millions

25 Key Projects 8 9 Cargo Terminals & Rail: 1. TRAPAC : backland and on-dock rail, Yang Ming: new wharf and additional rail, China Shipping: backland and wharf extension, Evergreen: upgraded wharf, TBD YTI: upgraded wharf and additional rail, APL: new wharf and backland, TBD Ports America: short-term permit, TBD 8. ICTF: modernization, TBD 9. BNSF/SCIG: new rail yard, Pier A Rail yard replacement: new storage tracks, 2015 Roadway Infrastructure: A. South Wilmington grade separation B. C Street interchange C. Vincent Thomas/Harbor Blvd interchange 25

26 Infrastructure Improvements Port of Los Angeles Capital Improvement Program Budget $1.9 Billion over 10-Years

27 Infrastructure Improvements Completed/Near Completion Channel Deepening to -53ft ($ M) China Shipping Terminal 136 acres 2,500 feet of new wharf -53 feet draft Marine and M&R buildings AMP Project Cost: $ M FY14/15: $2.8 M

28 Terminal Infrastructure In Construction TRAPAC Terminal Berth Project Elements 176 to 223 acres On-dock rail 705 new wharf 1022 wharf upgrade On-dock Rail Automation Start/Finish:2008/2017 Project Total - $510.3M FY 14/15 - $100.4M Projects in Construction Backland ICTF Buildings and Main Gate Crane Maintenance Building

29 TRAPAC - Berths First West Coast Automated Terminal

30 Transportation Infrastructure Road and Rail Infrastructure ($ M) South Wilmington Grade Sep. ($84.3 M FY14/15 $27.8 M) I-110/C Street Interchange ($51 M FY14/15 $17.33 M) I-110/SR 47 Connector ($19.9 M - FY14/15 $7.9 M)

31 Pier A Replacement Yard Project Elements Rail, Buildings Schedule Construction Start/Finish: 2012/2015 Rear Berth 200 Rail yard ($156.3 M FY14/15 $36 M) 31

32 Rail Capacity 113 Miles of Rail on Port Property More than 100 Trains a into and out of San Pedro Bay 5.3 million TEUs in 2013 San Pedro Bay (On & Near Dock) Alameda Corridor Port of LA Near Dock/On-Dock Rail: 1986 SPRR/UPRR ICTF 1997 Terminal Island Container Transfer Facility and APL 1999 West Basin Container Terminal 2002 APM Terminals 2015 New On-Dock Rail for TraPac 32

33 Rail Connectivity On Dock Rail $500 million by 2035 Near Dock Rail $600 million outside POLA SCIG ICTF Alameda Corridor $2.4 billion Superior Access Over 100 trains a day through the LA Region Access to 14 Major Freight Hubs in the US 2 Class 1 Rail Carriers: UP and BNSF 5.3 million TEUs moved by rail in 2013

34 Planned Rail Projects YTI Terminal on-dock rail expansion Cerritos Channel Rail Bridge Pier nd Lead Track Pier 400 on-dock rail expansion Pier 300 on-dock rail expansion T.I. Support Yard Total Cost of Projects $ million

35 Flat volume So Cal 2.5% growth predicted Currently over 5% growth 2014 Status New Alliances Chassis / Terminal delivery issues Previous large ships now sailing Trans Pacific ILWU Contract!!!! Started negotiations in Mid May New contract by end of year likely Alternative plans by cargo owners Suez & Panama Canals Consumer spending Continues to drive recovery Housing leads to more volumes

36 2014 Focus Speed to market Vessel velocity Efficiency in and out of the terminals Better utilizing the assets we have in place today Work together on solutions Highlight benefits of SP Bay Job creation Continued success with environmental programs Prepare for the future 36

37 Conclusion Spending $1 million a day on improvements 53 deep draft berths and 86 gantry cranes 8 large containers facilities totaling 1,628 acres, 7 container terminals of which have on-dock rail Over 100 trains into and out of San Pedro Bay per day 1 billion sqft of DC capacity within 80 miles from the Port Over 11,000 drayage trucks that are model year 2007 or newer Workforce of over 18,000 long shore personnel Trade Connect Program THE PORT OF LOS ANGELES THE RIGHT PARTNER FOR YOUR BUSINESS! 37

38 Thank You! Port of Los Angeles Business & Trade Development Division 425 South Palos Verdes Street, CA Phone: (310)