Executive Speaker Series Luncheon

Executive Speaker Series Luncheon
October 9, 2012
LATC Mission Statement
"Holding true to our traditional values, we will provide
transportation professionals, shippers and suppliers a forum to
foster relationships, share ideas and solutions while raising funds to
support our membership and communities."
Friends of the LATC
Events
89th Annual LATC Installation Gala
Hyatt Regency, Long Beach
Friday, November 2, 2012, 6:30 pm
2011 Expense – ($4,000)
Current
– ($0)
Executive Speaker Series
January 8, 2013
Monterey Hills Banquet Center
Monterey Park
LATC Membership
LATC Membership Benefits:
 Networking Opportunities to industry personnel
 Discounted rate to Executive Speaker Series Luncheons
 Annual Membership Directory - Effective resource
 Discount on subscription of the Journal of Commerce
Membership Dues help fund philanthropic efforts, which include local charities,
scholarships and endowments
New Members for the LATC
Brian Lee – Saddle Creek Logistics
Jeff Norstom – Boyd Brothers Transportation, Inc.
Tom O’Brien – CA State University, Long Beach
Tim Sisk – Vitran Logistics
Eddie Valdez – Axsun Corporation
Barbara Vodzak – BNSF Railway
Please visit the LATC at:
www.latc.la
2011 Goal – $6,500
Current
– $5,710
Election of 2012-2013
LATC Officers & Directors
2011 Goal – $6,500
Current
– $5,710
Friends of the LATC
Sean Strawbridge
Managing Director of Trade
Development & Port
Operations
Big Ship Ready
Sean Strawbridge,
Managing Director of
Trade Development and Port Operations
Port of Long Beach
• 2nd busiest U.S.
port
• 6.1 million
containers
• $160 Billion in
good value
annually
Port of Long Beach
• 3,200 acres of
land
• 4,600 acres of
water
• 6 container
cargo terminals
• Also car, oil, pet
coke, lumber,
and cement
terminals
315K regional and 1.5 million national jobs
Generates over $20 billion in personal income tax,
corporate income tax, and sales taxes
U.S. Consumer Base
2/3 U.S.
Population
Impact of Panama Canal on Asia Imports
West Coast ports
71%
Ohio
Valley
East Coast
Gulf Coast
1.2%
22.8%
World’s Top Ports – Then and Now
1995
2011
Millions of Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers
World Top Container Ports
Millions of Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers
Long Beach Container Volumes
Long Beach Container Totals*
8000000
7000000
6000000
Imports
5000000
4000000
Exports
3000000
2000000
Empties
1000000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
*Twenty-foot equivalent units
2012 Monthly Container Totals
Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers
Long Beach 2012 Monthly Imports
Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers
Ports’ Import Outlook*
Projected 1.6%
gain in 3rd
quarter 2012
3
2.5
Projected 5.5%
increase in 4th
quarter 2012
2
2008
2009
2010
2011
2012
1.5
1
0.5
0
1st Qtr
2nd Qtr
*Millions of Import TEUs for POLB/POLA
3rd Qtr
4th Qtr
Global Port Tracker Forecast
Vessel Evolution
2013
18,000 TEU
2006
15,500 TEU
1997
8,100 TEU
1996
7,100 TEU
MSC Fabiola – 12,500 TEUs
Arrival – March 16, 2012
MSC Altair – 13,000 TEUs
Arrival – July 19, 2012
MSC Beatrice – 13,800 TEUs
Arrival - September 30 , 2012
MSC Beatrice compared to Hanjin Pretoria
13,800 TEUs
4,400 TEUs
1,200 feet long
925 feet
167 feet wide
106 feet wide
How big is a big ship?
Boeing
747
(1,392 ft.)
7,100
USS Nimitz
(1,092 ft.) TEU Ship
(965 ft.)
Empire State
Building
(1,454 ft.)
13,000
TEU
Ship
(1,250 ft.)
Panama Canal Expansion
POST-EXPANSION
PANAMAX
CURRENT PANAMAX
MAX
LENGTH:
965 feet
MAX
LENGTH:
1,200 feet
MAX
DRAFT:
39.5 feet
MAX
DRAFT:
50 feet
MAX
BEAM:
106 feet
MAX BEAM: 160 feet
Comparative to Jet Age Paradigm
Jet Age Changed Aviation Forever
Pre-Jet Age
Post-Jet Age
New Capacity Coming
40%
21
Influences on Vessel Deployments
•
•
•
•
•
•
Demand
Vessel Size
Port Infrastructure
Rail Capacity
Operating Costs (Fuel)
Supply Chain Dynamics
San Pedro Bay Reliability Advantages
Vast Distribution Network
SoCal the Global Logistics/Distribution Leader
1.7 billion sf
Warehouse/distribution space in millions of square feet
Top Seaport Warehouse Markets
900 million sf
*Warehouse space in millions of square feet
Top U.S. Logistics & Distribution Markets
1.7 billion sf
Warehouse/distribution space in millions of square feet
Railroad Alliances
PNW
Midwest
Northeast
Northern
California
Atlanta –
Research Triangle
Southern
California
Battleground Areas
UP/BNSF Network
CSX National Gateway
31
Florida
Gulf Coast
Shipping Patterns Tipping Points
• Vessel and Rail Operating Costs
• Ports & Supporting Infrastructure & Capacities
• Port User Fees
• Financial Strength of Port and Venue
• Pricing / Competitiveness
• Cargo Availability Risk
Regional Outlook
• Global economic
uncertainty affecting
regional economy
• Stunted U.S. GDP
growth & employment
• Most trans-Pacific
carriers may end 2012
in the red
• POLB/POLA poised to
increase market share
Port of Long Beach Capital Improvements
$1.2 billion Middle Harbor Modernization
$1 billion Gerald Desmond Bridge Replacement
Proposed $650 million Pier S Terminal
Conclusions
• San Pedro Bay gateway will remain a viable and long term
growth solution for trade & manufacturing
• New shipping patterns require investments not only in
Ports, but supporting highways, bridges and rail
• New vessel configurations will limit the number of ports
of call for transcontinental services
• Thriving marine terminals require high productivity,
environmentally sustainability, and stable, skilled labor –
like the ILWU
• A growing gap exists between fiscally sound ports and
those that cannot attract investment capital
Big Challenges
Big Opportunities
Big Future