And there is still more to do, Kenagy said.
The Port of Long Beach presented its annual State of the Port inside the Long Beach Convention Center’s Grand Ballroom Jan. 25 to detail infrastructure projects, cargo trends, strategic plans and long-term goals. Kenagy made his way to the podium, with construction clothing still in-hand, and humorously placed the attire on a clothes rack by the stage before he made his remarks.
The port’s message at the address was simple— there are a lot of looming challenges and uncertainty, but plenty of potential successes down the road.
“Looking back over the past year, there was much to celebrate,” Kenagy said, “but there were many challenges, too— both bright skies and rough seas.”
Last year, South Korea’s Hanjin Shipping Co.’s file for bankruptcy disrupted shipping at the Port of Long Beach, Los Angeles and other global traders.
Kenagy said the decline of Hanjin Shipping affected the Port of Long Beach’s largest terminal at Pier T. Total Terminals International (TTI), the port’s terminal operator, assisted in addressing the impacts of the collapse on cargo owners. Kenagy said this helped alleviate the crisis.
Months after the bankruptcy, Mediterranean Shipping Company (MSC) assumed Hanjin’s lease, allowing business to continue, said Lori Ann Guzmán, president of the Long Beach Board of Harbor Commissioners, who also detailed various items about the port that Wednesday morning. She called it a sign of the Port of Long Beach’s flexibility, and she thanked MSC for its involvement with the port.
Guzmán said long-term prosperity relies on the use of the Port of Long Beach Strategic Plan, which calls for the following: enhancing short-term and long-term financial strength; achieving key milestones of the 10-year capital plan, which will go toward upgrading facilities and infrastructure; developing and retaining a high-performance workforce; developing a “green port” roadmap, which will detail investments made for building clean, efficient and zero-emissions equipment; and achieving sustained market-share growth.
Focusing resources on the strategic plan’s key areas will ensure success, she said.
“I don’t need to tell you that this past year, quite frankly, has tested us,” Guzmán said. “The impact of changing alliances, the most unfortunate Hanjin bankruptcy and declines in cargo volumes have challenged us all. But, it’s very important to know, we at the Port of Long Beach have addressed these issues head-on.”
Kenagy is currently guiding the project to replace what he calls, “the obsolete” Gerald Desmond Bridge with a new bridge that will improve traffic flow and accommodate taller ships. He said the port will be topping off the two towers, which are more than 40 stories in height, by the end of this year. The bridge will open in phases, and he said the port anticipates the first few lanes will open up by 2018.
He said there are enough finances to invest in facilities, such as phase two of the construction of Pier E. The port also hosted public hearings this month to draft an environmental study to develop a Pier B Rail Support Facility that will move even more cargo through on-dock rail.
He commended the port’s work to reduce environmental hazards. In 11 years, there has been an 80-percent reduction in diesel particulate emissions, which is on pace to meet the long-term goals the port has placed for itself for 2023, Kenagy said. The port is also working with the Port of Los Angeles to update the Clean Air Action Plan to continue that path toward zero emissions.
Terminal operators are installing LED lights and other equipment to reduce energy use, as well.
Kenagy said marine life has thrived in the waters at the Port of Long Beach. Port surveys show a 60-percent increase in marine life compared to a decade ago— 558 species of plants and animals now living in the harbor, including 130 acres of giant kelp beds that inhabit the outer harbor.
Kenagy said there are still signs of modest growth in the coming year, but he did admit that projections for global trade growth are weak.
A new carrier alliances launch in April and indecision on the part of vessel operators on where their ships will call have made things unclear, he said.
The opening of the expanded Panama Canal last year also serves as more business competition for North American ports. He added how the Trump Administration’s trade policies and its impact on the port are still uncertain, as well.
[aesop_image imgwidth=”500px” img=”https://signal-tribune.com/wp-content/uploads/2017/01/Screen-Shot-2017-01-27-at-10.54.07-AM.png” align=”left” lightbox=”on” caption=”Duane Kenagy, interim chief executive of the Port of Long Beach, detailed major infrastructure projects, cargo trends, jobs, security and other items at the State of the Port address on Wednesday at the Long Beach Convention Center.” captionposition=”left” revealfx=”off”] In spite of the challenges, he said there are still many advantages to shipping at the Port of Long Beach. For instance, there is still local demand for trade, efficient facilities, productive labor and good weather— “except for this last weekend,” he joked.
For example, CMA-CGM, a French shipping company, chose Long Beach to host the christening of its 18,000-TEU Benjamin Franklin mega vessel at the port’s Pacific Container Terminal early last year. It’s the largest container vessel to ever visit the western hemisphere, according to Kenagy.
“Imagine, going from 4,000 TEUs to 18,000 TEUs in just 12 years,” he said.
He said to ensure the port can accommodate vessels of all sizes, the focus needs to shift toward raising more cranes, strengthening its berths and upgrading rail facilities and highway access to make the terminals more productive.
Guzmán said the Port of Long Beach will host the American Association of Port Authorities annual conference this fall to showcase its facilities. She listed other accomplishments, such as the seaport’s high bond rating and the groundbreaking for its new headquarters last year.
She added that a search for a permanent executive director for the Port of Long Beach is now officially underway.
Guzmán’s closing remarks at the address were also indicative of her belief in the port’s progress.
“And these aren’t all alternative facts,” Guzmán quipped. “These are all true […] No one else is the green port.”
The State of the Port address can be viewed in its entirety at polb.com/stateoftheport.
