Port of Los Angeles America’s Port San Pedro, California October 2014 San Pedro Bay Port Complex Autos TRAPAC - 185 YM - WBCT - 186 Pasha Vacant - 84 Liquid Bulk YTI – 185 CS – WBCT - 136 Cruise Evergreen -205 Liquid Bulk APL – 292 APM – 400 SSA CUT– 95 Marinas 2 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 Diversified Port • • • • • • • • • Containers Break bulk (autos, fruit, cement, steel) Liquid bulk (crude, refined products) Cruise Rail Fishing Commercial Recreation/Marinas Industrial (refinery, repair) 4 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: $5.1 billion throughout California $21.5 billion throughout the U.S. Value of Trade to the Economy: (import and export trade) $58.7 billion throughout California $240.4 billion throughout the U.S. 5 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 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 Global & US Port Rankings R A N K 1st in the U.S. since 2000 CONTAINER VOLUME 8th in the World – Los Angeles/Long Beach CONTAINER VOLUME Global 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Shanghai, China Singapore Shenzhen, China Hong Kong Busan, South Korea Ningbo, China Qingdao Los Angeles/LGB Dubai, Arab Emirate Guangzhou, China Top Container Ports (in millions of TEUs – CY 2013) 33.8 32.6 23.3 22.3 17.6 16.8 15.5 14.6 13.6 13.0 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. North America Los Angeles Long Beach NY/NJ Savannah Vancouver Oakland Norfolk Manzanillo Houston Tacoma 7.9 6.7 5.5 3.0 2.8 2.3 2.2 2.1 2.0 1.9 8 Top Trading Partners & Commodities TOP 5 TRADING PARTNERS In Cargo Value, CY 2013 1. 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 2013 1. 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 2013 1. 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 Port of Los Angeles TEU 800,000 700,000 600,000 500,000 400,000 2012 300,000 2013 200,000 2014 100,000 0 10 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 Battle for Discretionary Cargo Prince Rupert Sea/Tac Eastern Canada NY/NJ OAK Norfolk LA/LB Savannah Jacksonville Depth 50’ or greater Houston Mobile Depth 45’ or less Lazaro Cardenas 12 Competitive Service Times 13 Extensive Rail Network Connecting U.S. New York Chicago SLC Omaha Columbus Denver KC St. Louis Memphis Atlanta LA Dallas El Paso San Antonio New Orleans Houston Laredo 14 2013 San Pedro Bay Ports Intermodal and Local Cargo Flow (Import and Export Loads and Empties) Local Transit 65% San Pedro Bay Cargo Terminals Container Vessel trans-loaded cargo, which is trucked/railed in domestic equipment 30% National Shipments/Direct Intermodal 25% 10% <1% On-Dock Rail Near/ Off-Dock Rail Long-Haul Truck 15 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 o o o o Panama Canal Expansion Suez Canal US East Coast Ports West Coast Canada Ports West Coast Mexico Ports 16 Creation of Mega Shipping Alliances G6 Ocean 3 2M CKYHE 17 Port Competition • US East Coast Ports • West Coast Mexico o Lazaro Cardenas • West Coast Canada Bayonne Bridge NY-NJ o Vancouver, BC o Prince Rupert • Suez Canal • Panama Canal Expansion 19 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 Panama Canal Expansion 21 Container Terminal Automation Source: Hamburg Port Authority 22 Capital Improvement Spending $450 Capital Expenditures (Budget) Capital Expenditures (Actual/Estimated) $400 (Million Dollars) $350 $300 $250 $200 $150 $100 $50 $0 Utilization Rate: FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 49% 49% 68% 90% 86% 62% 90% 82% 23 Annual Budget Annual Budget FY 2014/2105 $ 938.80 Terminal Improvements $ 136.30 49% Transportation Infrastructure $ 107.30 38% Maritime Services $ 29.10 10% Public Access / Environmental Enhancements $ 4.90 2% Security $ 3.40 1% Total $ 281.00 Capital Improvement Budget *In millions Key Projects 8 10 2 1 7 5 3 4 6 9 Cargo Terminals & Rail: 1. TRAPAC : backland and on-dock rail, 2016 2. Yang Ming: new wharf and additional rail, 2017 3. China Shipping: backland and wharf extension, 2014 4. Evergreen: upgraded wharf, TBD 5. YTI: upgraded wharf and additional rail, 2016 6. APL: new wharf and backland, TBD 7. Ports America: short-term permit, TBD 8. ICTF: modernization, TBD 9. BNSF/SCIG: new rail yard, 2018 10. 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 Infrastructure Improvements Port of Los Angeles Capital Improvement Program Budget $1.9 Billion over 10-Years Infrastructure Improvements Completed/Near Completion • Channel Deepening to -53ft ($370.00 M) • China Shipping Terminal • • • • • • 136 acres 2,500 feet of new wharf -53 feet draft Marine and M&R buildings AMP Project Cost: $151.00 M FY14/15: $2.8 M Terminal Infrastructure In Construction TRAPAC Terminal Berth 136-147 Project Elements • • • • • • • 176 to 223 acres On-dock rail 705’ new wharf 1022’ wharf upgrade On-dock Rail Automation Start/Finish:2008/2017 Projects in Construction • Project Total - $510.3M • FY 14/15 - $100.4M • • • • Backland ICTF Buildings and Main Gate Crane Maintenance Building TRAPAC - Berths 136-147 First West Coast Automated Terminal Transportation Infrastructure Road and Rail Infrastructure ($107.30 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) 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 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 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 Planned Rail Projects • YTI Terminal on-dock rail expansion • Cerritos Channel Rail Bridge • Pier 400 2nd Lead Track • Pier 400 on-dock rail expansion • Pier 300 on-dock rail expansion • T.I. Support Yard • Total Cost of Projects ≈ $648.65 million 2014 Status • Flat volume – So Cal • 2.5% growth predicted • Currently over 5% growth • 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 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 Conclusion • Spending $1 million a day on improvements • 53’ deep draft - 50+ 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 Thank You! Port of Los Angeles – Business & Trade Development Division 425 South Palos Verdes Street, CA 90731 Phone: (310) 732-3840 www.portoflosangeles.org 38