Mario Cordero, executive director of the Port of Long Beach, said at the State of the Port address on Jan. 24 that the port moved 7.5 million 20-foot-equivalent units (TEUs) in 2017, the most the harbor has ever moved in its 107-year history.
Drawing a laugh from the crowd, the executive director of the Port of Long Beach, Dodgers mug in-hand, opened his 2018 State of the Port address on Wednesday, Jan. 24 at the Long Beach Convention Center Grand Ballroom with pride about the port’s performance this past year and confidence for the plans to improve its business this year.
“I’m here at the nation’s largest port complex, and I feel like I’ve made it to the World Series,” he said.
In his first address as the Port of Long Beach’s leader, Cordero emphasized the harbor’s statistical information in 2017 that shows its increase in volume and reduction in port-related emissions. For the port’s plans this year, he focused on its long-term outlook in reducing greenhouse gases and introducing new technologies to increase efficiency.
“Last May, when I returned to the Port of Long Beach, I faced an industry that was evolving,” Cordero said. “[…] Updating our Clean Air Action Plan (CAAP) was another challenge. Some may have doubted our competitiveness, had doubts about growing our business or doubts about how to create a better port. But, I’m here to tell you […] that’s not in my DNA, and it’s not in the DNA of the Port of Long Beach that I know. This port has a legacy of success. I’ve seen what this port can do, and, I believe, it can do much more.”
The port’s outlook for 2018
Cordero said the Port of Long Beach’s “ultimate goal” is still zero emissions for all port-related technologies, adding how, in order for the harbor to grow as a business, it must grow sustainably.
Last fall, the Port of Long Beach and Los Angeles’ board of harbor commissioners approved an update to the CAAP, which adjusted the projection of when the complexes can achieve the aforementioned goal of zero emissions.
“Our quest is even better air quality,” Cordero said. “We’re not working just to reduce emissions, we are now thriving to entirely eliminate emissions. By 2030, all terminal-cargo handling equipment will be zero emissions. And that same year, we will have eliminated all emissions from vessels. […] By 2035, we expect to transform the entire port-truck fleet to zero-emission vehicles.”
Cordero promised the port will reduce greenhouse gases by 40 percent in 2030 and 80 percent in 2050.
“Climate change is today the world’s greatest threat,” he said. “[…] It is an incredibly ambitious goal. And, I know there are doubters, but there were also doubters when we created the Clean Air Action Plan a dozen years ago. But, together, we made the impossible possible, and we’re going to do this again, because together we can do this.”
Cordero also talked about adopting an “Elon Musk” state of mind to advance technologically. He said he was present when the famous investor and engineer introduced Tesla’s electric semi-truck, a vehicle priced under $200,000 that can operate up to 500 miles between charges.
In a video presentation shown at the event, Musk explained that production on the trucks will begin in 2019 and the vehicles will have the capability to go from zero miles-per-hour (MPH) to 60 MPH in five seconds and even 60 MPH in 20 seconds when hauling equipment up to 80,000 pounds.
“I want the Port of Long Beach to be the ‘Tesla’ of the port industry,” Cordero said. “I want us to lead. But, let me make it clear: I want us to be both the environmental and operational leader of the world’s seaport. We have set the bar high to be the world’s greenest port, and, at the same time, we need to move goods in and out of the port faster than any other port. We don’t have the choice if we’re going to remain competitive. Global logistics are changing fast.”
Cordero also pointed out that today’s customer expects to get what they want at a moment’s notice in any part of the world.
“Over the holidays, if you shopped on Amazon, you probably had gifts shipped to your home overnight or even in a couple of hours,” he said. “Today, it’s all about speed. It’s an Amazon world. Cargo cannot sit at docks for days, and truckers cannot sit for hours at terminals. I want us to be the ‘Amazon’ of ports. Let us imagine, let us inspire and let us push.”
Cordero said the port invested $4 billion this decade in deeper water, taller cranes and bridges, more rail, bigger fireboats and faster technology. Now, the port has planned another $3 billion in capital investment for the next 10 years to provide rail upgrades so that at least one-third of the port’s containers can be moved on trains.
At his State of the City address earlier this month, Long Beach Mayor Robert Garcia called for the fixture of the trucking crisis at the Port of Long Beach, adding that the system currently in place is not sustainable and efficient. He asked the city council and the State Legislature to work on creating a better structure and supporting workers who are not making sufficient wages.
Cordero responded to Garcia’s call-to-action and said he wants to help truckers thrive by increasing turn times for vehicles. He also said the updated CAAP requires the port’s terminals to implement reservation systems within two years.
“Truckers are extremely vital to our success,” he said.
2017— By the numbers
In the Port of Long Beach’s 107-year history, never has the complex moved more total 20-foot-equivalent units (TEUs) than it did in 2017, according to Cordero. This past year, the port moved 7.5 million TEUs, an 11-percent increase from 2016.
Cordero also highlighted work at the separate piers, adding that Mediterranean Shipping Company and Total Terminals International Company “led the rebound” at Pier T and Long Beach Container Terminal wrapped up its business at Pier E.
He emphasized that the port’s work doesn’t stop at containers, also mentioning the focus on non-cargo methods. Cordero said Metro, Toyota, Endeavor and SSA Marine all reported cargo increases.
“That jump was 11.5 percent in our non-container cargo,” he said. “[…] Our outlook this year is good. I have no doubt that we can grow our business even more.”
The length of the first two berths at Long Beach Container Terminal at Pier E is 2,830 feet, which Cordero said is almost the size of 10 football fields. A third berth will be built in the final phase of the $1.5-billion project in the near future.
The Port of Long Beach also produced four more ship-to-shore cranes, increasing the total to 28.
Cargo by on-dock rail amounted to 25 percent of the port’s volume in 2017.
“Years ago, there were doubts about our rail investments,” Cordero said. “Rail is key to our operational and environmental success. Every train reduces as many as 750 truck trips. It’s a rail that connects us to all the major markets across the country. No gateway in North America offers more connections. No gateway provides customers greater flexibility.”
The two main towers, sized at 515 feet, that serve as a $1.5-billion replacement of the Gerold Desmond Bridge, were topped off a few weeks ago, according to Cordero.
“This new bridge, the bridge to everywhere, is going to be an iconic landmark,” he said, adding that the project created 3,000 jobs. “High enough for larger ships and wide enough for extra traffic lanes, and there will be a separate bike path and pedestrian path.”
He recognized the work of Duane Kenagy, “the man behind the project,” who was in attendance. Kenagy was named deputy executive director of the Port of Long Beach last May and was previously interim executive director of the port, before Cordero was given the official title of executive director. Kenagy also delivered the 2017 State of the Port address.
During Thanksgiving, the Port of Long Beach welcomed Cosco Shipping’s largest vessel, dubbed “The Himalayas.” Cordero described it as a massive ship that can hold “a mountain of containers.” The Pacific Container Terminal at Pier J discharged more than 7,000 TEUs from the ship and reloaded more than 8,000, a total close to 16,000 units in all.
“No port discharges and reloads more containers per vessel as we do at this complex,” Cordero said. “We are big-ship ready, making us leaders in productivity, reliability and efficiency.”
Cordero also highlighted the Port of Long Beach’s dedication event to the fireboat Vigilance, held this past November. The ship, the counterpart and twin to the Protector— introduced in 2016— is an addition to the Long Beach Fire Department’s security at the port.
Vigilance and Protector are designed for emergency response and firefighting to safeguard the port for the Big Ship Era, a term coined in response to the growing volume of cargo and size of vessels in the modern day.
The Long Beach Board of Harbor Commissioners also budgeted $1 million this past year for community sponsorships to support arts and other civic events. Cordero said that, over the last decade, being “a good community partner becomes a top priority.”
Last year, Asia Cargo News voted the Port of Long Beach the best seaport in North America for the 19th time in 20 years, Cordero said.
In 2017, the Port of Long Beach also reduced port-related diesel emissions by 88 percent, according to Cordero.
“No port complex in the world has moved more aggressively to improve air quality and safeguard the health of this community,” he said.
Video by: The Port of Long Beach
The Full 2018 State of the Port address
In the address, Cordero emphasized the port’s strength.
“With [the commissioners’] outstanding leadership, and the work of our terrific port staff, and the support of our elected officials, the Port of Long Beach is unstoppable,” he said.
Richard Cameron, managing director of planning and environmental affairs for the Port of Long Beach, confirmed with the Signal Tribune after the address that the LA ports’ on-dock rail study and the subsequent draft environmental-impact report, which was discussed at a Dec. 6 public meeting with the Intermodal Container Transfer Facility Joint Powers Authority governing board, is pending final approval. Contracts will be discussed in detail at a public meeting sometime in February, Cameron said.
He could not confirm if the study will be discussed at the Port of Long Beach’s Pulse of the Ports address, which will be held on March 28 at the Long Beach Convention Center Grand Ballroom, 300 E. Ocean Blvd.
