- I look forward to a report on this event - please, if you were there tell us how it went. In the meantime, in Southern California, there was this meeting MayMessage 1 of 4 , May 27, 2010View Source
I look forward to a report on this event - please, if you were there tell us how it went.
In the meantime, in Southern California, there was this meeting May 20...
California Supply Chain at Risk
A presentation from Business, Ports, Labor, and the Mayor of Los Angeles office on their plans to bring and keep international trade moving through Southern California
California ports have lost cargo and threats of big box stores leaving only discretionary freight is a reality. Retailers are working with third-party logistics providers (3PLs) to integrate sustainability practices into their supply chains and are asking 3PLs to make long-term investments in their facilities and operations. Long-term investments require a guarantee that the freight will continue to move through Southern California ports.
Shippers are looking to the supply chain to meet the needs of their own sustainability programs and are partnering with 3PLs to help them operate more efficiently without compromising profitability. Long-term investments in facilities require forecasts of long-term viability for warehousing in the region. How do we keep business in California for the long term so investments in sustainability are viable?
Port stakeholders have the opportunity now to shape and ensure future viability. Challenges to be tackled on the road to the future competitiveness of California ports include:
State-only escalation of electricity prices, estimated at 40% in the near term;
Cap and trade regulation looming in 2010 will steadily increase costs;
Velocity and throughput concerns benchmarked against competitor ports of Prince
Rupert, Seattle and Houston;
Unhappy retailers seeking cheaper and more productive alternative ports;
Our common enemy, the Panama Canal.
George Cunningham in the Cunningham Report:
California Supply Chain Risks: Regulation And Competition
Folks from both labor and management were in Long Beach Thursday, talking about ongoing threats to the California supply chain and plotting strategies about how to protect the jobs and economic benefits it provides from zealous state regulation and new competition from both north and south of the U.S. border.
It was a dialogue that is becoming common in California as business attempts to find ways to cope with ever-changing government regulation and competition from places with friendlier business climes. The Thursday meeting, California Supply Chain at Risk, was put together by the International Warehouse Logistics Association.
The conversation was both horrific and hopeful.
Lee Harrington of the Southern California Leadership Council talked about the threat posed by AB 32, the controversial program being put together by California to combat global warming. He said the threat posed by the program extended far beyond just the supply chain.
The program also targets manufacturing industries that consume large amounts of energy. Those companies use the supply chain to provide its raw materials and to move its finished product. The semi-conductor industry, which employs a lot of $100,000-a-year plus workers, generates 4.9 support jobs for each direct employee.
When you add one of those workers to the California economy, it translates to $70,800 per year in state and local taxes. When you lay one off, or move it out of state, those revenues are lost, he said. A logistics job usually generates one additional support job. Its state and local tax impact is about $38,910.
A study being put together by the Leadership Council shows that about 4,000 businesses with 10 or more employees have left the state in the past 18 months, he said. The top eight states to which California businesses are moving, he said, are Arizona, Florida, Georgia, Illinois, Missouri, New York, Texas, and Virginia.
He noted that as he spoke, there were business development folks from Texas in Long Beach talking to local businesses about the benefits of moving to the Lone Star state. Texas does not have a budget deficit, he noted.
Peter Peyton, president of International Longshore and Warehouse Union Local 63, said that the enemy for both business and labor is new competition coming on line - the Port of Prince Rupert in Canada, ports such as Lazaro Cardenas in Mexico, and the expanded Panama Canal, due to open in 2014.
Peyton said that he has been meeting with employers to talk about common interests and how management and labor can work together to protect West Coast waterfront jobs.
What he found was that many companies have adopted opposite strategies for dealing with the economic downturn and the recovery.
He acknowledged that some terminals had cut back labor to the minimum level they could and still claim to be maintaining an open gate, but said that seems to be changing as the volumes of cargo begin to rise.
Peyton downplayed questions about the ILWU's reputation for militancy driving away business, especially in critical years such as 2014 when a new contract is due to be negotiated and the Panama Canal will become a major threat to the West Coast ports.
He said labor always gets the blame, but there are many factors at play.
Peyton said that the waterfront is like a big Italian family.
"We are always fighting each other tooth and nail, even if we all really agree on almost everything."
People always look back at the 2002 contract negotiation, which included a lockout of the union and a resulting backlog that took months to dig out from under. They would be better to recall the 2008 contract, which was resolved with relatively little pain, he said.
Western States Petroleum Association President Catherine Reheis-Boyd talked about the state's climate-change law that calls for conversion to a low-carbon fuel standard. In order to achieve that standard, the petroleum industry would have to blend other ingredients into its fuel - ingredients that will dramatically raise the price for both California diesel and gasoline.
The state also plans to saddle the oil industry with extra mandates that the industry will have to pass along to the consumer, she said.
Despite all of the efforts to move away from fossil fuels, government studies show that coal, oil, and gas will remain the primary energy sources for decades to come, which is one of the reasons that ports are so critical to the state's energy supply, she noted.
Only 38 percent of the crude oil refined in California is pumped in the region. Fourteen percent comes from Alaska, but that amount is declining. The other 48 percent is brought to the state in tankers, she said.
Port of Long Beach Trade Director Don Snyder talked about the various projects underway at the port to prepare for the future and the importance of getting those projects funded. He said shippers are interested in transit speed, reliability and costs. Southern California offers numerous advantages because of its large population, its rail and highway connections to other places in the nation, its warehousing and distribution facilities, and the number of weekly services calling at the ports.
Joel Anderson of the IWLA said that the industry needs to be doing its own studies so that when state regulators come up with a plan, the industry has facts and figures available to make their case. One such study, currently underway, is the Warehouse Carbon Footprint Study being put together by the Transportation and Renewable Energy Dialogue.
That study looks at steps warehouse operators can already take to reduce both their energy use and their electric bills. Companies that take those steps now can both save money and get early-action credits when the state implements its climate change regulations.
-- The Cunningham Report
- ... From: John Denham Sent:Message 2 of 4 , May 28, 2010View Source
----- Original Message -----
From: "John Denham" <jdenhamone@...>
Sent: Thursday, May 27, 2010
Subject: Short Sea Shipping
Maritime Highway/ Short Sea Shipping
The San Francisco Bay area chapter of " Friends of the Earth" sponsored a 4 hour forum on Short Sea Shipping and the environment. An audience of three dozen plus professional environmentalist, transportation managers, government employees and maritime aficionados met in the shadows of the University of California, Berkeley in the David Bower Center. Two panels of professional and experienced environmentally oriented speakers presented their views on potential environment drawbacks and benefits associated with short sea shipping in the region. The afternoon ended with an audience-panel discussion that mostly summed-up the forum:
Essentially, there was no endorsement of short sea shipping in the region and no noted objections were voiced. MARAD confirmed that funds have been allocated but not actually committed to a federal sponsored test project in the area involving the port of Oakland, Stockton and West Sacramento. Companies, equipment and a time frame have been selected. A concept for coastwise operation; Eureka to Stockton and Oakland to Los Angeles were voiced.
The number of environment problems with possible resolutions far exceeds any operational problems. Similar tug/barge operations have been successfully accomplished in Europe for years and there is an abundance of operational information. The environmental problems posed far exceeds any funding available as most require extensive research and study before resolution. Labor considerations were not discussed but were recognized as a major factor.
The federal Marine Highway Program as viewed in the San Francisco bay area/region as short sea shipping concept appears to primarily target improving regional air quality. JGD
--- In PMMC-NLUS@yahoogroups.com, "Pacific Merchant Marine Council" <pmmc@...> wrote:
----- Original Message -----
From: "Harbor Safety Committee" hsc@...
Sent: Friday, May 14, 2010 11:46 AM
Subject: Short Sea Shipping Conference Notice and Agenda
Attached is the agenda for the Short Sea Shipping Conference. Please note the May 25, 2010 date.
Title FRIENDS OF THE EARTH FORUM ON SHORT SEA SHIPPING & THE ENVIRONMENT
Location Tamalpais Room, 2nd Floor, David Brower Center, 2150 Allston Way, Berkeley, CA (Downtown Berkeley BART)
Start Time 5/25/2010 1:30 PM
End Time 5/25/2010 5:00 PM
Friends of the Earth is hosting a forum on short sea shipping, or regional shipping, at the David Brower Center in Berkeley, CA, on May 25, 2010. The forum addresses the potential environmental drawbacks and benefits associated with short sea shipping in the San Francisco Bay and along the California coast. The forum also considers how the maritime and landside sectors involved in goods movement operations, including short sea shipping, can enhance their environmental performance, especially concerning harmful air emissions.
1:40 pm - 1:45 pm Welcome & Introduction John Kaltenstein, Marine Program Mgr., Friends of the Earth
1:45 pm - 3:00 pm The Environmental Impacts of Short Sea Shipping
Addressing the potential environmental drawbacks and benefits associated with short sea shipping, as it relates to operations within the San Francisco Bay and along the California coast.
Jackie Dragon, Marine Sanctuaries Program Director (Pacific Environment); Damian Breen, Director of Strategic Initiatives (Bay Area Air Quality Management District); Brian Beveridge, Co-Director (West Oakland Environmental Indicators Project); Moderator - Dr. Sheldon Gen, Assistant Professor - Department of Public Administration, San Francisco State University
3:00 pm - 3:15 pm Break
3:15 pm - 4:30 pm Greening the Goods Movement Chain
How can the maritime and landside sectors involved in goods movement operations enhance their environmental profiles, particularly with respect to air emissions?
Susan Hayman, Vice President of Corporate Development (Foss Maritime); Stas Margaronis, President (Santa Maria Shipowning and Trading); Cynthia Marvin (invited), Assistant Division Chief - Planning and Technical Support Division (California Air Resources Board); Diane Bailey, Senior Scientist (Natural Resources Defense Council); Moderator - Michelle Lapinski, SustainBiz Founding Principal and Adjunct Professor at the University of San Francisco
4:30 pm - 5:00 pm Wrap Up & Final Thoughts
Friends of the Earth is exposing and fighting pollution and exploitation of our ecosystems. Our Clean Vessels campaign is cleaning up the cruise industry, protecting marine sanctuaries, and reducing air pollution from ocean-going vessels. The environment is for everyone, and a healthy and just world requires clean air and water.
John Kaltenstein, Marine Program Mgr., Friends of the Earth 311 California Street, Suite 510, San Francisco, CA 94104-2607, (831) 427-2754