Our capital projects include major upgrades of older and undeveloped shipping terminals, so we can handle the biggest ships and easily connect to the cross-country railroads while minimising air quality impacts. Our existing capacity to handle more big ships and link to more trains is a huge competitive advantage for us, and improvements will keep us ahead of other ports.
*With the new Clean Air Action Plan (CAAP), is the Port now partnering with the environmental organisations that delayed port expansion projects?
Environmental groups and environmental regulatory agencies regularly consult with us on our environmental initiatives. They make suggestions and they review regular studies on current environmental conditions. It is important to engage our diverse stakeholders, even if we don’t always agree.
*Does the Port have the in-house staff capability to deal with the new clean-air initiatives aimed at addressing environmental concerns?
At the Port of Long Beach we have a relatively small staff, but we utilise contractors as needed to support our initiatives.
*Is the Middle Harbor project the first of multiple initiatives? Will the project to build a new container terminal and on-dock rail yard at Pier S be next? After these projects, what are those next stage initiatives likely to be?
The current initiatives include roughly USD 600 million in improvements for the Pier G container terminal used primarily by “K” Line. We’re also underway with a USD 200 million initiative to add shore power facilities at all of our container terminals so ships can plug in for electricity. We are planning to begin construction of the Middle Harbor project later this year or early next year, after we complete final designs. We’re in the environmental review process for the Gerald Desmond Bridge Replacement Project, and will soon issue the draft review documents for Pier S. We also have a rail yard project. And there is very initial talk about a zero emissions cargo mover, and an automated terminal.
*As your customers shop around, and other seaports compete aggressively for their business, do CAAP and the replacement for the 40-year-old Gerald Desmond Bridge provide a firm basis for your Port’s strategic competitive advantage in 2015?
Our Green Port Policies are helping us address community concerns and gaining us public support for our ongoing efforts to promote international trade and support jobs. At the same time, we need to show the industry that we will continue to provide the best, most flexible, efficient and reliable facilities for them to move their cargo.
*How would you summarise the port’s core strategy for the coming years?
Our strategy is to partner with our customers and the community to provide the best facilities so that we expedite cargo, clean the air, and create jobs — so we all prosper in the years ahead.
*On your own internal “annual report card”, how would you rate the port’s 2009 performance? And what do you expect for 2010?
The approval for the Middle Harbor project and the quick implementation of the Clean Trucks Program in 2009 were huge successes for the Port of Long Beach. Both initiatives address our community concerns for better air quality, while also improving productivity for our customers. With the Gerald Desmond Bridge and other initiatives in 2010, we are looking for continued success.
*Has organising and raising the financing for planned infrastructure developments been a problem? How so?
We finance terminal improvements with revenues from our ongoing leases and operations. We’ve always run a very tight ship, giving us the financial resources to finance our projects including Middle Harbor and other initiatives. We have secured about half of the funding for the Gerald Desmond Bridge, and given the project’s importance to the nation, we expect Congress to provide additional funding. Our bond ratings are strong, and we have the ability to use a combination of financing strategies to pay for our projects.
*Do the US federal and California state roles add any value or are they mostly a burden?
The federal government plays a key role in funding access projects for the ports such as roadways, bridges and waterway dredging projects. Both the state and federal government play major roles in regulating the environmental impacts of ships, trucks and trains so that ports can compete on a level playing field.
*Please tell us something about your personal career before Port of Long Beach that will help our readers understand how you came to lead the Port.
My background was in property management, at Stapleton International Airport in Denver and then as Director of Properties for the Port of Long Beach. I negotiated leases, acquired properties, and managed properties – all essential responsibilities as the executive director of the Port of Long Beach. The port authority operates as the landlord over our complex of shipping terminals. We negotiate leases with terminal and vessel operators. We develop properties. And we manage these properties.