Summer 2005 - Philadelphia Regional Port Authority
Transcription
Summer 2005 - Philadelphia Regional Port Authority
Volume 1, Issue 18 was designed by Davis Advertising Inc. and constructed and installed by Grid Sign Systems, both Pennsylvania-based companies. PRPA plans to install similar signage at its various marine terminals in the near future. Summer 2005 Summer 2005 Review of PortWatch: A Publication of the Philadelphia Regional Port Authority Proudly Managing Pennsylvania’s International Seaport Since 1990 No Lazy Days of Summer Here An initiative to increase public awareness of PRPA and the importance of port activity via new, dynamic signage kicked off this past June with the installation of a new marquee sign at PRPA’s administrative headquarters at 3460 N. Delaware Avenue. The new sign features PRPA’s name and logo on a bright blue field with letters that light up at night. The sign New Rail Incentive Program and Pro-Trucking Legislation Highlight Productive July and August at the Port ALSO IN THIS ISSUE... PRESKI TALKS DEFENSE …PAGE 4 HOSTING VISITORS FROM DOWN UNDER …PAGE 5 LABOR OFFICIALS JOIN PORT BOARD …PAGE 6 3460 North Delaware Avenue, 2nd Floor Philadelphia, PA 19134 CONGRESSMAN BRADY CHAMPIONS THE PORT …PAGE 7 DAVID DAMBLY SAYS FAREWELL …PAGE 14 The Hamburg-Sud container vessel Cap San Augustin docks at the Packer Avenue Marine Terminal on Monday, June 20. www.philaport.com who was the city’s public property commissioner, asked me to become his deputy. And I very much enjoyed the job. Philadelphia Regional Port Authority Announces New Intermodal Incentive Program PortWatch: Then, of course, you were named to the top job. Program Rewards Ocean Carriers for Using the Port of Philadelphia’s Intermodal Connections The Philadelphia Regional Port Authority Board of Directors Brian Preski, Esq. Chairman Boise Butler III Capt. John P. Cuff Frank Gillen Thomas J. Kelly Charles N. Marshall James E. McErlane, Esq. Michael A. Rashid Chad Rubin, Esq. Herb Vederman Harry T. Williams The Philadelphia Regional Port Authority is pleased to announce that its Board of Directors recently approved the agency’s new Intermodal Incentive Program. Effective immediately, participating ocean carriers that utilize the Port’s class-one railroad service for the movement of their containers will receive a $25.00 per container incentive. “Philadelphia really has a story to tell when it comes to intermodal service,” said PRPA Director of Marketing Sean Mahoney. “Not only do we have service by three class-one railroads, but those railroads are improving their services all the time. This November will see the opening of Norfolk Southern’s new intermodal facility at the Philadelphia Naval Business Center, right next to our Packer Avenue Marine Terminal. The aim of this new incentive program is to make it easier than ever for carriers to choose Philadelphia for their intermodal moves. And we’re also pleased that this new program rewards our existing customers, too, allowing them to benefit from this financial incentive when they exceed their past intermodal cargo levels.” 2 PortWatch: So, how did you end up at the Port? “We’re one of the few ports in the country with service by three class-one railroads,” said Mr. McDermott, “and this new program will give carriers an added reason to see for themselves why Philadelphia is second to none when it comes to intermodal efficiency.” The Port of Philadelphia is serviced by three class-one rail lines: Norfolk Southern, CP Rail, and CSX. The Intermodal Incentive Program is especially attractive to carriers not currently using the Port of Philadelphia, as initially every intermodal container moved by a new carrier calling the Port will receive the $25.00 incentive. The program also benefits carriers already using the Port: For existing port customers that have a history at the Port of Philadelphia, cargo-handling benchmarks have been established, so the $25.00 per container incentive will immediately commence for all intermodal moves above and beyond those benchmarks. Mr. Dambly: Yes. It was the last year of the first term for Mayor Wilson Goode, and Dudley very suddenly told me he was leaving for another job and that he was going to recommend me for the post of commissioner. Mayor Goode appointed me, and as it turned out, I ended my career with the city first as deputy commissioner, then commissioner of public property. PRPA’s new Intermodal Incentive Program aims to bring new attention to the Port of Philadelphia’s excellent intermodal connections. Seen here is intermodal activity by CSX and CP Rail in the direct vicinity of PRPA’s Packer Avenue Marine Terminal. Mr. Dambly: I was winding up 25 years of service with the city, and I decided that I wanted to do something else. I was also nearing retirement age, and, frankly, I didn’t think Mayor Goode was going to reDave and members of his family at his retirement luncheon. appoint me as commissioner in his second term. I started talking with a friend named John LaRue, who was then President of the old Philadelphia Port Corporation. I started kidding with him and said, “How about getting me a job down there? You know what I can do.” Well, he surprised me in late fall of 1987 when he made me an offer. PortWatch: What was your first assignment? What title did you hold? Mr. Dambly: I joined the old port corporation in January 1988 and was given the title of Vice President, but, honestly, John LaRue wanted me to help on capital projects since I had been doing that kind of work my entire career. As a sort of backdrop to all of this, the city realized at the time that it did not have the funding to maintain and promote the Port, so there was a big push to transfer authority to the state. Those interested in learning more about PRPA’s innovative new Intermodal Incentive Program should contact PRPA’s Marketing Department at (215) 426-2600. Mr. Mahoney or one of PRPA’s Marketing Representatives are ready to discuss all aspects of this exciting new program. PortWatch: Those were very perilous times for the City of Philadelphia’s fiscal health. The Philadelphia Regional Port Authority’s Intermodal Incentive Program is funded by a grant from the Pennsylvania Department of Community and Economic Development. ■ Mr. Dambly: That’s right. The city was having trouble finding the money for police and fire safety, let alone the Port. So, we started getting capital money from the state, and John LaRue wanted me to make sure we were spending it properly. PortWatch: Give us an idea of what you found when you first came to the Port Corporation. 15 Mr. Dambly: We were in poor shape. I saw sheds that had leaking roofs, paving that was in bad condition. Things generally were in bad shape. The unfortunate thing about the Port Corporation is that the majority of our money was used for deferred maintenance, and our buildings were old and generally in need of repair. My immediate goal, of course, was to perform as much deferred maintenance as we could to get things up to a higher standard. Also, we had a limited amount of new construction. Sheds were built at Tioga Terminal, Pier 78 and Pier 82. PortWatch: Then the birth of the Philadelphia Regional Port Authority shortly followed. Mr. Dambly: Yes, along with state financial support came a change in port governance and a new name, the Philadelphia Regional Port Authority. And the good thing was we suddenly had more money to do restoration and expansion of the Port facilities. For example, when I started here, there was a big push for more refrigeration. We had just two refrigerated buildings at that time, one at Packer Terminal and one at Tioga. We now have added much more refrigerated space at Tioga and Pier 84. We’ve more than doubled our refrigerated square-footage. The demand is there. If we had the money to double it again, our customers would be happy. PortWatch: Give me a general description of your duties at the PRPA. Mr. Dambly: Well, as Director of Real Estate and Insurance, I had to deal with the great number of leases we have because we are a landlord port. I dealt with the tenants all the time. We made sure that not only the Port but the tenants, too, had the proper insurance policies in place. In this capacity, I was ably assisted for many years by Theresa Buck, who at the time was our Real Estate and Insurance Manager. After a time, we split my title and I became simply Director of Real Estate and Terry Buck became Director of Insurance, the title she now holds. PortWatch: You were still doing capital projects work, too, weren’t you? Mr. Dambly: Yes, I was wearing a third hat, so to speak, making sure we were spending our capital dollars correctly, attending endless planning meetings, deciding what to do with the money from the state, things of that nature. PortWatch: As you look back on your career with the Port of Philadelphia, what impressions are you left with? Mr. Dambly: That the Philadelphia Regional Port Authority is an important asset not only to the City of Philadelphia and the Commonwealth of Pennsylvania, but to the entire Delaware Valley. Most people don’t know—and I didn’t know until I arrived—how important the Port is. I’ve been proud to work here. ■ A Port Mainstay Calls It a Day New Legislation Dramatically Benefits Port of Philadelphia’s Frozen Meat Cargoes After 25 Years with the City of Philadelphia and Then 16 Years at the Port, Dave Dambly Retires from Public life Outgoing PRPA Director of Real Estate David Dambly receives an official Port print as a retirement gift on Wednesday, June 22. From left to right are PRPA Director of Engineering Charles Lawrence; Mr. Dambly; PRPA Executive Director James T. McDermott, Jr.; and new PRPA Director of Real Estate Jack Dempsey. David Anders Dambly, PE, 73, longtime Director of Real Estate for the Philadelphia Regional Port Authority and Vice President of PRPA’s predecessor agency, the Philadelphia Port Corporation, was honored by his family, friends and co-workers at a retirement luncheon and tribute at Swan Caterers’ famous Waterfall Room on Wednesday, June 22. Among those who spoke fondly of Mr. Dambly from the dais during the course of the luncheon were PRPA Executive Director James T. McDermott, Jr., who served as Master of Ceremonies; PRPA Director of Governmental and Public Affairs William B. McLaughlin III; PRPA Director of Engineering Charles J. Lawrence; PRPA’s new Director of Real Estate Jack Dempsey; Mike Gabor of Urban Engineers, Inc.; and Alexander (Pete) Hoskins, President of the Philadelphia Zoo and longtime coworker of Dave Dambly during their City of Philadelphia days. “This is truly a momentous day for both the Port and the city,” said Mr. McDermott during his remarks. “So many major construction projects throughout the City of Philadelphia and its waterfront were touched by the expertise of Dave Dambly, an engineer’s engineer. Dave Dambly can finally call it a day knowing that he made a major contribution to the civic and commercial life in our region. We won’t see his like again.” Mr. Dambly was born and raised in Philadelphia’s historic Germantown area. He is a graduate of the city’s Central High School and earned two degrees at Penn State University: forestry and civil engineering. After college, he was drafted into the U.S. Army at the end of the Korean War. During that time, he spent time with a group of engineers in San Francisco and Panama, and was immediately interested in their work. Two years later, with the only job in forestry he could find being a job on the West Coast where he “literally sat on top of a mountain looking for forest fires,” Mr. Dambly decid- 14 Thanks to new legislation passed earlier this summer, the Port of Philadelphia has once again facilitated the movement of imported frozen meat cargoes through the Port to their final destinations. Specifically, a refrigerated truck departing a Port of Philadelphia marine terminal will now be allowed to carry up to 107,500 pounds of frozen meat products, a dramatic increase over the previous 90,000-pound limit. ed to return to Penn State and earn a degree in civil engineering. A resident of Philadelphia’s Chestnut Hill area and later Glenside, Pennsylvania during most of his adult life, Mr. Dambly now lives in an independent retirement community in Montgomery County, not far from the birthplace of his father, Harold, who along with his mother Alba were the two greatest influences on his life. The effort to amend the previous weight limit for cargoes moving through Pennsylvania was mounted by PRPA staff in association with terminal operators, shippers, trucking companies, and cold storage operators. Weight limits and other regulations governing the movement of commercial cargoes over Pennsylvania’s highways are set by the Pennsylvania legislature An avid reader of local history who is also fond of classical music, Mr. Dambly now looks forward to returning to his roots, so to speak, by tending both his patio garden and larger vegetable garden. PortWatch spent time with him in the final days of his tenure at PRPA. PortWatch: You grew up in Germantown and have a great love for this region. When did you start working for the city? Mr. Dambly: I started working during the Tate administration in 1964. I was working in the engineering department in Fairmount Park, and I liked it very much. I worked there for seven or eight years. PortWatch: Then it was off to the Managing Director’s Office in the early ’70s. Previous victories by port officials involving this issue included amending state weight permit regulations so that trucking companies could secure an annual permit to carry containerized cargo exceeding 80,000 pounds, up to 90,000 pounds, replacing the previous system where permits for heavy container loads had to be secured on an individual-shipment basis. Now, trucking companies carrying refrigerated meat products can secure an annual permit to carry up to 107,500 pounds. “This legislation was the end result of a cooperative effort to contain the costs associated with importing refrigerated and frozen meats,” said PRPA Chairman Brian Preski, Esq. “The consumer is the ultimate winner here. By allowing heavier containers, shippers can take advantage of economies of scale to keep transportation costs low, resulting in lower end costs to consumers.” Industry response to PRPA’s successful initiative to increase the upper weight limits for refrigerated cargoes has been gratifying. “This is great news for everyone,” said Mr. Laurie I. Bryant, Executive Director of the Meat Importers Council of America, Inc. (MICA). “The Port of Philadelphia has been a valuable friend to our industry for close to thirty years. This latest victory is yet another great example of the Port’s commitment to our trade.” Mr. Dambly: That’s right. The job in Fairmount Park was great, but it had its limitations. I wanted to advance my career, so I went to the Managing Director’s Office and joined the Capital Projects Control Unit as a staff engineer. We reviewed the plans and specifications for a lot of city construction projects. PortWatch: How long did you remain there? Mr. Dambly: Well, I stayed a lot longer than I thought I would because I kept getting the advancements that I wanted. I stayed until 1986, when Dudley Sykes, Over a hundred members of the Philadelphia maritime community helped give Dave Dambly a proper send-off on June 22. dock facilities for cargo, but to ensuring that inland transportation, whether by truck or rail, will happen with the greatest efficiency and convenience.” Tom Holt, Sr. of Greenwich Terminals, LLC (at right) shows recently arrived boxes of frozen meat from Australia to Steve Bracks, Premier of Australia’s State of Victoria, during the Premier’s tour of PRPA’s Packer Avenue Marine Terminal on Monday, June 20 (see related story on page 5). Frozen meat from Australia and New Zealand will be big winners thanks to new legislation allowing increased over-the-road weight limits for these imported cargoes. 3 and administered by the Pennsylvania Department of Transportation (PennDot). Cargo weight limits include both the weight of the cargo and the truck’s chassis. “I want to commend everyone involved in this important effort, especially House Transportation Committee Chairman Richard Geist, who sponsored the legislation and helped us guide it through the legislative process,” said Mr. McDermott. “This initiative demonstrates, once again, that the Port of Philadelphia and the Commonwealth of Pennsylvania care deeply about the industries that use our facilities. We are committed to ensuring not only the best on- The lion’s share of frozen meat cargoes entering the Port of Philadelphia consists of grinding meat originating in Australia and New Zealand. This meat is a prime component in most of the hamburger patties sold in our nation’s fast-food restaurants and is also a main ingredient of other processed food, such as pizza toppings and seasoned ground meat for tacos. The primary ocean carriers delivering this cargo to the Port of Philadelphia are Hamburg-Sud, P&O Nedlloyd, CP Ships, and Maersk. ■ Port’s Foreign Trade Zone Profiled by National Association Port Has Key Role in Defense A Message from PRPA Chairman Brian Preski, Esq. The following first appeared as an Op-Ed piece in the June 7, 2005 edition of The Philadelphia Inquirer, Philadelphia’s major daily newspaper. Shortly thereafter it also appeared in several other newspapers in central and western Pennsylvania. We are pleased to reprint Chairman Preski’s Op-Ed piece below for the benefit of PortWatch readers. The Port of Philadelphia’s importance to Pennsylvania’s large military and commercial markets was dramatically underscored last month. The Pentagon announced the closing of 180 military installations, but the four Army depots that work with the Port were spared. They will continue playing critical roles in the war against terrorism. In fact, the commonwealth is expected to gain nearly 1,000 military and civilian support jobs. A U.S. Army Black Hawk helicopter is readied for shipment overseas at the Packer Avenue Marine Terminal. PRPA’s Strategic Military Seaport designation has produced substantial benefits not only for the Port, but for military installations throughout Pennsylvania. The Port is part of an ongoing effort to support the rapid movement of military personnel and equipment to theaters of war around the globe. Key players for the port are the Defense Supply Center Philadelphia, which processes food, fuel, medicine and spare parts for our troops; Letterkenny Army Depot, a 17,500-acre complex in Franklin County; Tobyhanna Army Depot, a full-service communications-electronics command in Monroe County; and the Defense Distribution Center Susquehanna, the Defense Department’s largest warehouse. The decision by federal officials in October 2002 to designate the Port of Philadelphia as one of 14 Strategic Military Seaports in the nation already is paying dividends. It not only has the ability to provide much-needed supplies for the men and women in combat, but it also is a viable partner for the four Pennsylvania defense facilities with which it works closely. Pennsylvania is a state that historically has been hit hard by closings ordered by the Base Realignment and Closure Commission—most recently the threatened closing of the Naval Air Station in Willow Grove. Since the early 1990s, the state has lost more than 3,000 military and 13,000 civilian jobs. Clearly, a new strategy was needed to stave off future base closings. Initial success came three years ago when the Port was selected by the Defense Department as a Strategic Military Seaport—the first so designated following the 9/11 terrorist attacks. The Port now is on the cutting edge as 4 NAFTZ Highlights Our FTZ’s Many Benefits a national model for military cargo deployments— thanks to the efforts of the Delaware River Maritime Enterprise Council, a non-profit group funded by state and federal governments, the Philadelphia Regional Port Authority, and a dedicated contingent of elected officials. The Philadelphia Regional Port Authority, Grantee of Foreign Trade Zone (FTZ) No. 35, was pleased to note that our FTZ was profiled in the July 2005 edition of Zones Report, the official publication of the National Association of Foreign Trade Zones (NAFTZ). The following is what the publication had to say about us: Last year, the Port was one of the five busiest in the nation in shipping military cargo, largely due to a new strategic system that dramatically reduces deployment time. Time and time again, the Port of Philadelphia has shown it can do the job efficiently. The Philadelphia Regional Port Authority (PRPA) is the grantee of Foreign Trade Zone No. 35, which covers Southeastern Pennsylvania. Since its establishment in 1978, FTZ #35 has been a major center of maritime industrial commerce. There are currently nine sites in the General Purpose Zone, which are in close proximity to local marine terminals and airports. In addition, four special-purpose Subzones remain active. A critical partner in this success story is Letterkenny Army Depot, which will not only keep its 2,500 civilian jobs, but also gain more than 400 positions as military missions relocate there from bases targeted for realignment or closure. Four years ago, representatives from the Philadelphia port community visited the sprawling military complex southwest of Harrisburg. Their mission was to convince defense officials that by designating the Port a Strategic Military Seaport, we would be able to create and foster a mutually beneficial relationship that would spur new business and investments. Thanks to many people, that mission was successful. In fiscal year 2004, the total value of merchandise received in all activated FTZ sites in Philadelphia reached $9.41 billion, a 13.5% increase from the year 2003. The total value of exports to foreign countries jumped to $37.67 million, 1.67 times the figure of the year prior. Furthermore, the overall cargo increased by 16.2%, the container numbers increased by 27.4%, and the breakbulk numbers increased by 12%. These significant improvements are largely due to the newly expanded Philadelphia International Airport Zone Site, and a new manufacturing contract between Merck & Co., Inc. and another pharmaceutical firm. Also important is Tobyhanna Army Depot, which has an outstanding record of providing repair service for the electronics equipment used by our troops in battle. It has partnered with the Port of Philadelphia to ensure the readiness of our armed forces. The development of a new strategy and the fostering of new partnerships has laid a strong foundation for both the Port of Philadelphia and Pennsylvania’s military infrastructure. What we have accomplished together gives us a clear advantage as we compete for jobs and the investment that comes with defense spending. The Port is a hotbed for development, which makes it critical that we deepen our shipping channel in the Delaware River from 40 feet to 45 feet. Channel deepening makes sense on every level: We will add cargo and jobs, and the local economy will benefit. Moreover, today’s modern vessels require deeper drafts. Our 40-foot draft simply can’t meet the need. If we continue to idly sit by, our business will move to competing ports both north and south of us. The Port of Philadelphia is not only a viable economic engine for the city of Philadelphia, but for the Commonwealth of Pennsylvania as well. The Defense Department’s decision on May 13 was a resounding affirmation of our continuing efforts to shape this region for future military and commercial investments. ■ TELL US YOUR NEWS The Philadelphia Regional Port Authority’s PortWatch is produced quarterly by the Authority’s Communications Department, which invites members of the maritime community to submit news for future issues. News items can be e-mailed to Joseph Menta at JPMenta@philaport.com or faxed to him at (215) 426-6800. 13 Within Foreign Trade Zone sites in Philadelphia, 13 active firms, including Aircraft Services International, Inc., Merck & Co., Inc., Sunoco, Inc., Conoco Phillips Company and the Kvaerner Philadelphia Shipyard, collectively contribute to the employment of 11,603 persons. These firms sponsor dozens of community outreach programs in the form of both monetary and employee assistance, and promote the enhancement of the city of Philadelphia and surrounding areas through various programs. For example, Sunoco is one of the largest area contributors to the United Way, a national organization promoting community well-being. The oil refineries and the Philadelphia International Airport also provide the locality with vital services at reasonable cost and generate many jobs that strengthen the local economy. The Philadelphia Regional Port Authority is marketing FTZ #35 very aggressively. It advertises the zone in trade journals, provides presentations to business groups and universities, and publishes and updates information on its Web site and CD-ROMs. The PRPA has also offered to the business community full-day seminars on overall Foreign Trade Zone establishment and development. It continues to make particularly strong efforts to attract Asian services to the Port. PRPA thanks the National Association of Foreign Trade Zones (NAFTZ) for running the preceding profile in its July issue. NAFTZ is a non-profit association that advocates the advancement of the U.S. Foreign Trade Zone program. NAFTZ provides leadership in the use of the FTZ program to generate U.S.-based economic activity by enhancing global competitiveness. To learn more about NAFTZ, visit the organization’s Web site at www.imex.com/naftz.html. To read more about how attaining Foreign Trade Zone status for all or part of your business can reduce or even eliminate import duties, as well as significantly improve your bottom line in a number of other ways, contact David Harvey in PRPA’s Strategic Planning office or visit us at www.philaport.com. ■ Continued from page 11: McDermott Discussion UPCOMING IN PORTWATCH… PRPA receives a federal grant for river depth and air draft restriction sensors. Learn how this will make commerce on the Delaware River safer. The RAPID system is making cargo tracking and overall logistics more efficient than ever at the Port of Philadelphia. A comprehensive update on this innovative system. Congressman Robert Brady and State Representative William Keller are honored by the World Trade Association of Philadelphia. A report on the awards dinner. Shipping containers of footwear to Europe? Importing garments from Asia? Need to move your freight fast but economically? It’s time to call BARTHCO. A profile of this longtime Port of Philadelphia company. And, last but not least, PRPA’s Joan Glenn retires after 22 years of service to Pennsylvania’s international seaport. For these stories and much more, look for the Fall 2005 edition of PortWatch, to be distributed this November. Welcoming Our Friends from Down Under Mr. Tayoun: The Port of Philadelphia is experiencing unprecedented labor peace. You have a six-year deal with the ILA, which is unheard of. to Bob Brady, Bill Keller and our other elected officials, Governor Rendell is going to get the channel-deepening project completed. Mr. McDermott: We owe it all to (late ILA Local 1291 leader) Sal Candelaria. The longshoremen and management are getting along better than they ever have. The ILA’s offices are right in our port administration building, in fact. We have daily communication. And that staff I told you about is going to oversee our SouthPort project to expand Packer Avenue Marine Terminal to the south and be ready to receive the next generation of cargo vessels. And we’ll do this while still maintaining and improving our existing port facilities at Packer Avenue, Piers 78/80, Pier 82, Pier 84, and Tioga Marine Terminal. This is a truly exciting time for us, and I’m proud to play a small part in all this. Mr. Tayoun: You have the Teamsters in your building, too. Mr. McDermott: Yes. Frank Gillen and Joint Council 53 are in our building. They do a terrific job at the Port. Local 107, the folks who move most of the cargo through the Port, does a terrific job thanks to Bill Hamilton, their president. All these guys—the ILA and the Teamsters—are working together, with each other and with Port management, and their solidarity is good for the entire city. It’s an effective public/private partnership that you don’t see at other ports. A day later, a smaller but no less productive meeting took place in the PRPA offices between PRPA officials and two visiting government officials from the city of Sydney in New South Wales: Loftus Harris, Director General of the Department of State & Regional Development and Michael O’Sullivan, Executive Director of Industry in the same department. The two gentlemen discussed a variety of port and business issues with PRPA Director of Communications William B. McLaughlin III, Director of Strategic Planning Nicholas Walsh and PRPA Senior Marketing Representative Dominic O’Brien. Mr. Tayoun: And we were proud to have you with us today. Good luck to you. “It was wonderful that our friends in Australia made it a priority to visit the Port of Philadelphia while they were in town attending the Biotech conference,” said Mr. McDermott. “They made it clear to us during their visits that our mutual trading relationship is as important to Australia as it is to Philadelphia.” Mr. McDermott: And good luck to you, too, Jim. ■ PRPA’s leadership and three generations of the Holt family greet Premier Bracks on Monday, June 20. From left to right: Thomas J. Holt, Jr.; PRPA Executive Director James T. McDermott, Jr.; Thomas J. Holt III; Thomas J. Holt, Sr.; Premier Bracks; and PRPA Deputy Executive Director Robert C. Blackburn. Premier Bracks was presented with an official Port of Philadelphia commemorative print during his visit. Mr. Tayoun: We only have a few moments left. Let’s talk about the “Port of the future.” Where do you see the Port of Philadelphia going? Mr. McDermott: The Port of the future lies south of the Walt Whitman Bridge on those untapped lands that will augment the existing port. But let me first say a word about our staff, because they make it all happen. Our dedicated staff— we have 90 people at the PRPA—is the best public sector staff I have ever worked with in 25 years. Sometimes people take their shots at the public sector. I am here to tell you that I’ve got MBAs on this staff, engineers, a couple of attorneys, and all professional people. We market internationally. It’s a terrific staff. Officials from Melbourne and Sydney Visit the Port of Philadelphia The key to future port growth lies south of the Walt Whitman Bridge. PRPA’s proposed SouthPort project will significantly expand maritime operations in that underutilized area. Our strategic planning department has put together a master plan that will forever and a day have Philadelphians going to work on their waterfront, just like their forefathers did. Thanks 12 5 As most PortWatch readers are well aware, the Port of Philadelphia and Australia have been major trading partners for over two decades. So it was an extremely pleasant duty for PRPA staff and terminal operators to meet and greet two delegations of government and trade officials from Down Under this past June. To learn more about our trade with Australia, see the related article on page 3 about weight restrictions being eased for imported meat cargoes from Australia. ■ The Honorable Steve Bracks, Premier of the State of Victoria, was in Philadelphia June 18-22 to attend the Biotech 2005 conference and made it a point to schedule an afternoon at the Port of Philadelphia on Monday, June 20. The Premier, along with his delegation of government, trade, and media officials, met with PRPA Executive Director James T. McDermott, Jr. and other PRPA staff at the Packer Avenue Marine Terminal. The visit included a mutual briefing on pending issues at the Port of Philadelphia and Victoria’s Port of Melbourne, and a tour of the Packer Avenue Marine Terminal by representatives of the Holt family, operators of the Packer Avenue facility. The Port of Philadelphia and the Port of Melbourne established Representatives from the Sydney, New South Wales office of the Department a Partner Port Agreement in of State and Regional Development visited the PRPA offices on Tuesday, June 21. Seen here from left to right are Loftus Harris, Director General of 2001. the Department of State and Regional Development; PRPA Director of Governmental & Public Affairs William B. McLaughlin III; Michael O’Sullivan, Executive Director of Industry of the Department of State and Regional Development; PRPA Senior Marketing Representative Dominic O’Brien; and PRPA Director of Strategic Planning Nicholas Walsh. Labor Officials Join PRPA Board that cargo even now. That, coupled with our rail infrastructure, means we can compete with New York to an extent, and have. We’ve taken some business out of New York for the first time, and lines are talking to us. But we have to close the deal by dredging. PRPA recently welcomed the two newest additions to the agency’s Board of Directors: Philadelphia labor leaders Boise Butler III and Harry T. Williams. Both joined the PRPA Board on August 9, 2005. Harry T. Williams The whole world is also looking at the China component. The west coast of this country cannot keep up with all the vessels from China. I think in the not-too-distant future you’re going to have a Port call from China here at our Packer Avenue Marine Terminal. Mr. Butler, President of International Longshoremen’s Association Local 1291, was a direct appointment of Pennsylvania Governor Edward G. Rendell. Mr. Williams, Business Manager and Secretary-Treasurer of the International Union of Painters & Allied Trades District Council 21, was appointed by Governor Rendell at the recommendation of the Bucks County Board of Commissioners. “I look forward to working with these two strong individuals,” said PRPA Chairman Brian Preski, Esq. “Their unique perspectives will be invaluable as the board deliberates on future business initiatives and the challenges facing the Port of Philadelphia.” ■ Caller (Kate): Can you talk about the improvements you have made at the Packer Avenue Marine Terminal area? Seen from the highway, it’s really an impressive looking facility. PRPA’s Annual Golf Outing Brings Diverse Port Interests Together for a Day of Fun and Friendly Competition Walt Picher, Ed Fitzgerald, John E. Mallough, and Joseph P. McDermott of Barthco International, Inc. show off their first-place standing in the 2005 PRPA Golf Outing. Congratulations, guys! 6 Registration was at 6:30 a.m. with a shotgun start at 7:30 a.m. A few hours later, as the dust settled just prior to lunch, the following teams emerged as this year’s victors: Mr. McDermott: We want to dredge just to the south side of the Benjamin Franklin Bridge. People often say, “Why not further?” Well, no matter how deep the water is, the air draft on the Ben Franklin Bridge, built in 1926, is 137 feet. These new super ships are 14 to 15 stories tall, and unfortunately can’t get under the bridge. But most of our major maritime operations take place south of the Ben Franklin Bridge, anyway, so dredging to that point will be fine. “The whole world is also looking at the China component. The west coast of this country cannot keep up with all the vessels from China. I think in the not-too-distant future you’re going to have a Port call from China here at our Packer Avenue Marine Terminal.” Caller (Patrick): I am a small business owner who often has trouble with the cost of shipping. Are there any programs in the Delaware Valley that help small business owners? Mr. McDermott: If you are Mr. McDermott: Thank exporting, there is a conyou, Kate. We lease the tainer incentive program terminal to the Holt family, for Pennsylvania-based James T. McDermott, Jr. which runs a company companies that puts $50 Executive Director called Greenwich towards the cost of shipPhiladelphia Regional Port Authority Terminals, LLC. Working ping a container back in with the Holts, we have your pocket. You can call landed P&O Nedlloyd, Sean Mahoney, our which is the second largest steamship line in Director of Marketing, at (215) 426-2600 to find the world. Australian beef and New Zealand out more about that. We also have other aggresmilk products all come in over P&O Nedlloyd. sive incentive programs in place to make it easiThe line committed to Philadelphia under previer to start doing business with the Port. ous Pennsylvania Governor Mark Schweiker, Caller (Al): What is the future of the S.S. United who released $25 million to PRPA to make the States, the historic old cruise ship stored at the improvements at Packer Avenue that P&O needPort? ed. We purchased two post-Panamax container gantry cranes for the terminal. We added 800 Mr. McDermott: Al, that is one of the questions I refrigerated plugs for 40-foot frozen containers am asked most frequently. That grand old ship, to plug into. And we’ve done a lot of other neclong out of service, was brought to Philadelphia essary infrastructure improvements to the facilion the belief that it would be one of the venues ty to not only accommodate P&O, but to attract for riverboat gambling. Of course, riverboat additional services. gambling is controversial and may never happen. So right now the vessel sits there as its But as proud as what we’ve done at Packer owners seek other options for it. Since being Avenue, that doesn’t tell the whole story. We’ve got plans in South Philadelphia to build a brand- docked here, it has recently been sold, and it’s my understanding that the new owners’ intennew warehouse at Pier 74 for the forest prodtion is to refurbish it and put it back into service ucts that come in from Finland. South in some capacity. I have to say, even considerPhiladelphia is cooking. We are doing very, very ing the shape it’s currently in, that vessel still well there. We own Pier 100, Pier 98, Pier 96, has the sleekest lines of any cruise ship I’ve and the property at Delaware and Oregon Avenues, which has a number of exciting poten- ever seen. When we have more specific information on the vessel, we’ll be sure to pass it on tial uses we’re now investigating. to the public. Caller (Mike): How far up the river do you want Continued on page 12: McDermott Discussion Boise Butler III and PRPA Executive Director James T. McDermott, Jr. following a recent meeting in the PRPA offices. Port Industry Hits the Links Despite some uncooperative weather, the 4th annual PRPA Golf Outing was a resounding success, bringing together a large cross-section of the Philadelphia maritime industry for a day of camaraderie and competition. This year’s event was held at the Valleybrook Country Club in Blackwood, New Jersey on Friday, June 3rd. to dredge to let these super ships come up? First-place winners: Walt Picher, Ed Fitzgerald, John E. Mallough, and Joseph P. McDermott of Barthco International, Inc. Second-place winners: Todd Brown, Craig Tocci, Yutaka Kawai, and Sean Nozaw of Holt Logistics. Third-place winners: John Hewlings and Bob Thompson of the Pilots Association for the Bay & River Delaware; and Frank Kelly and Mario Dioguardi of PRPA. PRPA congratulates this year’s winners and also gives a tip of the hat to the event’s capable organizers: PRPA’s Director of MIS Joseph Petruzzi and MIS/Strategic Planning Secretary Donna Rymal. ■ 11 McDermott Discusses Expansion, Dredging, and Other Pending Port Issues on the Airwaves The Hamburg-Sud container vessel Cap San Augustin arrives at the Packer Avenue Marine Terminal on Monday, June 20. A deeper Delaware River main channel is necessary for continued growth for the Port of Philadelphia’s container business. James T. McDermott Jr., Executive Director of the Philadelphia Regional Port Authority, was the featured guest on the Sunday, May 8, 2005 edition of The Ninety Forum, a radio program hosted by former Philadelphia City Councilman James Tayoun, who also publishes The Public Record, a popular weekly newspaper in Philadelphia. The radio program airs every Sunday from 7:00 a.m. to 8:00 a.m. on WYSP (94 FM). Last issue, this publication ran a transcript of the first half of that interview. PortWatch is now pleased to provide for our readers the conclusion of Mr. Tayoun’s discussion with Mr. McDermott. We pick up here as Mr. McDermott fields additional calls from listeners that day… complete its facility by the end of the year. PRPA’s own rail plans are aggressive, too. We are in the process of acquiring Pier 124 from CSX, and we will eventually be purchasing Pier 122 as well. The cranes on Pier 122 are 1950s vintage, so they need some attention, and there are some OSHA issues there, too, but our plan is to repair those cranes and those facilities, as well as acquire and develop the properties around those piers. So, with the railroads enhancing their intermodal connections and PRPA fixing up the piers adjacent to those new connections, we’ll have quite the operation south of the Packer Avenue Marine Terminal. Remember, the Port of New York and New Jersey is at capacity. They have no more space. Fourteen years ago when I first started, we’d be chasing after lines in New York and couldn’t get them to return our phone calls. They’re now regularly visiting our office, looking for opportunities here in Philadelphia. They want to be the first in the door. Because, once that first dredge vessel shows up on the Delaware River to deepen the channel, you’re going to see private infrastructure dollars become available. That area—Piers 122, 124, and the southeast tip of the old Philadelphia Navy Yard, which we already own—is going to be the site of major development. Caller (Rich): I work for Norfolk Southern, and I believe with rising fuel costs, railroads are the best way to go. Could you talk a little bit about the Port’s future plans with the railroads? Mr. McDermott: Thanks for the question, Rich. First, as I said earlier, we have three fine classone railroads here, and they’ve been moving very aggressively lately. They, like the Port, realize that the future of the Port of Philadelphia lies south of the Walt Whitman Bridge in those lesscongested, yet-to-be-developed lands near the former Navy Yard. So, both CSX and Norfolk Southern have both taken the time to complete their intermodal yards on the west side of the Packer Avenue Marine Terminal. Norfolk Southern, as I’m sure you know, is expected to 10 The Port of Philadelphia’s Key Allies This Issue: Congressman Robert Brady The Philadelphia Regional Port Authority recognizes that its mission of expanding commerce, promoting economic development and creating jobs is significantly strengthened by the support of regional elected officials. Seaports are at a critical intersection of economic, trade and regulatory policy, and what happens in our nation’s capital and our state capital can often have a profound impact on port activity. With this in mind, PRPA wishes to single out one particular legislator’s frequent, effective efforts on the Port of Philadelphia’s behalf. Congressman Robert A. Brady Caller (Tim): Will you really be able to accommodate the giant new cargo ships in Philadelphia? The ships that have to go to New York now? Mr. McDermott: That is the key to our future. Right now, to put it bluntly, New York can take ships that we can’t take. And without dredging, the situation will only get worse. The next generation of vessels is going to have the capability to hold as many as 6,500 containers in one ship. And right now, Philadelphia can handle, at most, container vessels with a 4,500-container capacity. If that fact doesn’t clearly illustrate our need to dredge, nothing will. But for now, let me say this: Because of the great work of our Teamsters, we’re able to move trucks over the road to New York and up into North Jersey, allowing us to capture some of Want to add a name or two to our PortWatch mailing list? Contact PRPA’s Communications Department at (215) 426-2600. 7 One of the Philadelphia area’s most important federal officials, Congressman Robert A. Brady (D-PA) has long been a key supporter of PRPA and an important advocate for its interests in the Halls of Congress. His Congressional District embraces most of PRPA’s facilities, including our largest terminal, the Packer Avenue Marine Terminal. Before entering Congress, Mr. Brady was intimately familiar with the activities of Philadelphia’s working waterfront. His involvement in Philadelphia civic life and his leadership in the local labor movement brought him into direct contact with the men and women who rely on the seaport for their livelihoods. His election in 1998 to the United States Congress, representing Pennsylvania’s 1st Congressional District, has given him an expanded forum to help the development of maritime activity in Pennsylvania. To cite one compelling example, Congressman Brady, as a member on the Committee of Armed Services, spearheaded the effort in Congress to designate the Port of Philadelphia as a Strategic Military Seaport. As PRPA Chairman Brian Preski remarked at the time, “Thanks to Congressman Brady and other regional elected officials, the Port of Philadelphia became the 14th Strategic Military Seaport in the United States. This has meant an enormous increase in cargo and labor man-hours for the Port. But in a larger sense, it has now involved PRPA in our nation’s ongoing effort to defend freedom around the world. All of us are proud to participate in that effort.” While keeping his eye on the larger national issues, Congressman Brady has not forgotten the important issues of infrastructure sustainment and landside access for the Port of Philadelphia. Again, thanks to his efforts and the efforts of Senator Specter and Senator Santorum, PRPA has received a $3.3 million transportation earmark in the recent Comprehensive Transportation and Infrastructure Act signed by President Bush. This appropriation will assist PRPA in its work to design and construct a critically needed port access road from our south Philadelphia port facilities to our major intermodal rail facilities (see related story on page 8). This will enhance cargo mobility and make the Port more competitive. James T. McDermott, Jr., Executive Director of PRPA, has told Congressman Brady, “We are extremely grateful for your efforts on our behalf. It is very reassuring to know that we have a person of your stature in Washington working on issues that mean so much to our continued success.” Congressman Brady continues his work for the Port of Philadelphia. He is deeply involved in discussions relating to the expansion of the Port of Philadelphia. His continued support of the project to deepen the Delaware River navigation channel to 45 feet and his support of innovative technologies to speed the movement of commercial and military cargoes to and from the Port of Philadelphia, as evidenced by steering an unprecedented $40,000,000 appropriation to PRPA for that purpose, are just two illustrations of his ongoing concern for the Port of Philadelphia. It is important that the port community acknowledge Congressman Brady and commend him for all he has done to advance and strengthen the port industry in Philadelphia and, thereby, enhance the nation’s economic well-being. We salute you, Congressman Brady, and look forward to many more years of productive association!■ Another Dazzling, Productive Event by the World Trade Association PRPA Chairman Preski Praises Pennsylvania Congressional Leaders for Federal Funds for the Port of Philadelphia $3.3 million in federal funds will soon be used to significantly improve the movement of intermodal cargoes to and from rail facilities serving the Packer Avenue Marine Terminal, seen here. Brian Preski, Esq., Chairman of the Philadelphia Regional Port Authority, has thanked U.S. Representative Robert Brady (D-Pennsylvania) and U.S. Senators from Pennsylvania Arlen Specter and Rick Santorum for their efforts to include $3.3 million earmarked for the Philadelphia Regional Port Authority in the recent Comprehensive Transportation and Infrastructure Act signed by President George W. Bush. The funds will be utilized for a highpriority project to design and construct an access road from south Philadelphia’s port facilities to the three intermodal rail transfer facilities located near the Packer Avenue Marine Terminal. Port Industry Gathers Aboard Historic Vessel John W. Brown for an Evening of Merriment and Networking PortWatch is happy to give the floor to Deborah Ingravallo, Executive Administrator of the World Trade Association of Philadelphia. Deborah filed the following report about the WTA’s June 9 gala aboard the historic Liberty Ship John W. Brown. Take it away, Deborah… The Philadelphia Regional Port Authority is committed to an ambitious program of facility and infrastructure enhancement and expansion. Virtually alone among major North Atlantic seaports, the Port of Philadelphia has access to property suitable for new port development. It has proposed the creation of SouthPort, a 100-acre expansion of its major container and general cargo facilities. Key to the success of SouthPort is access to the major rail intermodal facilities adjacent to the Packer Avenue Marine Terminal, the largest single marine facility on the Delaware River. The federal funds will enable work to begin on the development of an access road, which will be critical to the SouthPort project. On a warm summer evening in June, members of the World Trade Association of Philadelphia and their guests gathered onboard the John W. Brown, which was docked on the Delaware River waterfront at Penn’s Landing. Chairman Preski noted, “Once again Congressman Brady and our two U.S. Senators have come through for the Philadelphia Regional Port Authority. We’re obviously grateful for their continued support and interest in the Port and look forward to seeing the vital expansion of Pennsylvania’s seaport come to fruition.” ■ tum and that he is optimistic that something will happen soon. On the ‘tween deck of the massive vessel, an extravagant buffet dinner was served while guests were free to roam the vessel on selfguided tours and mingle with the crew. In addition, sounds of the 1940s were heard throughout the vessel by the a cappella quartet Stardust Memories. The John W. Brown had sailed from Baltimore, Maryland, where she is normally moored, to Philadelphia for a one-week visit. We hope to welcome her again in 2006. ■ One of four Liberty Ships still in existence out of an original fleet of 4000, the John W. Brown was built in 1942 and holds an impressive history, including extensive service in World War II. Liberty Ships delivered personnel and supplies to our servicemen and servicewomen around the world, as well as provided other non-combat support services. Early in the evening, everyone gathered on the upper deck to listen to guest speaker Bob Cummings of the PRPA speak on recent developments in the Port’s channel deepening project. Mr. Cummings reported that the initiative to deepen the Delaware River’s main channel from 40 to 45 feet is gaining momen- PRPA’s annual state appropriation allows for a variety of improvements to be made to Pennsylvania’s international seaport, from multi-million dollar building and equipment upgrades to more modest but no less important improvements. An example of the latter is PRPA’s recent purchase of a new multi-purpose dump truck that will aid the efforts of PRPA’s Maintenance Department. The new truck will primarily be used for blacktop/repaving projects at PRPA’s terminals, though it will also be helpful for a variety of other tasks. Seen here checking out the new truck are the Maintenance Department’s Bill Godfrey; Director of Maintenance Ron Mikalaitis; and PRPA Executive Director James T. McDermott, Jr. 8 The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. 9 The World Trade Association of Philadelphia put together another winning event on June 9. PRPA Senior Staff Members of the PRPA senior staff can be reached at the Authority’s main telephone number, which is (215) 426-2600. PRPA's administrative offices are located in the Philadelphia Regional Port Authority Administration Building, 2nd floor, 3460 N. Delaware Avenue, Philadelphia, PA 19134. James T. McDermott, Jr. Executive Director Robert C. Blackburn Deputy Executive Director Theresa Buck Director of Insurance Jack Dempsey Director of Real Estate Edward G. Henderson Director of Finance & Capital Funding Donna Houston Director of Human Resources Gregory V. Iannarelli, Esq. Chief Counsel Charles J. Lawrence Director of Engineering Sean E. Mahoney Director of Marketing William B. McLaughlin III Director of Governmental & Public Affairs Joseph P. Menta, Jr. Director of Communications Ronald E. Mikalaitis Director of Maintenance Joseph F. Petruzzi Director of MIS Donna Powell Director of Procurement James Walsh Director of Operations Nicholas Walsh Director of Strategic Planning PRPA’s new cranes just after arriving at the Packer Avenue Marine Terminal on Tuesday, October 28. Another Dazzling, Productive Event by the World Trade Association PRPA Chairman Preski Praises Pennsylvania Congressional Leaders for Federal Funds for the Port of Philadelphia $3.3 million in federal funds will soon be used to significantly improve the movement of intermodal cargoes to and from rail facilities serving the Packer Avenue Marine Terminal, seen here. Brian Preski, Esq., Chairman of the Philadelphia Regional Port Authority, has thanked U.S. Representative Robert Brady (D-Pennsylvania) and U.S. Senators from Pennsylvania Arlen Specter and Rick Santorum for their efforts to include $3.3 million earmarked for the Philadelphia Regional Port Authority in the recent Comprehensive Transportation and Infrastructure Act signed by President George W. Bush. The funds will be utilized for a highpriority project to design and construct an access road from south Philadelphia’s port facilities to the three intermodal rail transfer facilities located near the Packer Avenue Marine Terminal. Port Industry Gathers Aboard Historic Vessel John W. Brown for an Evening of Merriment and Networking PortWatch is happy to give the floor to Deborah Ingravallo, Executive Administrator of the World Trade Association of Philadelphia. Deborah filed the following report about the WTA’s June 9 gala aboard the historic Liberty Ship John W. Brown. Take it away, Deborah… The Philadelphia Regional Port Authority is committed to an ambitious program of facility and infrastructure enhancement and expansion. Virtually alone among major North Atlantic seaports, the Port of Philadelphia has access to property suitable for new port development. It has proposed the creation of SouthPort, a 100-acre expansion of its major container and general cargo facilities. Key to the success of SouthPort is access to the major rail intermodal facilities adjacent to the Packer Avenue Marine Terminal, the largest single marine facility on the Delaware River. The federal funds will enable work to begin on the development of an access road, which will be critical to the SouthPort project. On a warm summer evening in June, members of the World Trade Association of Philadelphia and their guests gathered onboard the John W. Brown, which was docked on the Delaware River waterfront at Penn’s Landing. Chairman Preski noted, “Once again Congressman Brady and our two U.S. Senators have come through for the Philadelphia Regional Port Authority. We’re obviously grateful for their continued support and interest in the Port and look forward to seeing the vital expansion of Pennsylvania’s seaport come to fruition.” ■ tum and that he is optimistic that something will happen soon. On the ‘tween deck of the massive vessel, an extravagant buffet dinner was served while guests were free to roam the vessel on selfguided tours and mingle with the crew. In addition, sounds of the 1940s were heard throughout the vessel by the a cappella quartet Stardust Memories. The John W. Brown had sailed from Baltimore, Maryland, where she is normally moored, to Philadelphia for a one-week visit. We hope to welcome her again in 2006. ■ One of four Liberty Ships still in existence out of an original fleet of 4000, the John W. Brown was built in 1942 and holds an impressive history, including extensive service in World War II. Liberty Ships delivered personnel and supplies to our servicemen and servicewomen around the world, as well as provided other non-combat support services. Early in the evening, everyone gathered on the upper deck to listen to guest speaker Bob Cummings of the PRPA speak on recent developments in the Port’s channel deepening project. Mr. Cummings reported that the initiative to deepen the Delaware River’s main channel from 40 to 45 feet is gaining momen- PRPA’s annual state appropriation allows for a variety of improvements to be made to Pennsylvania’s international seaport, from multi-million dollar building and equipment upgrades to more modest but no less important improvements. An example of the latter is PRPA’s recent purchase of a new multi-purpose dump truck that will aid the efforts of PRPA’s Maintenance Department. The new truck will primarily be used for blacktop/repaving projects at PRPA’s terminals, though it will also be helpful for a variety of other tasks. Seen here checking out the new truck are the Maintenance Department’s Bill Godfrey; Director of Maintenance Ron Mikalaitis; and PRPA Executive Director James T. McDermott, Jr. 8 The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. 9 The World Trade Association of Philadelphia put together another winning event on June 9. PRPA Senior Staff Members of the PRPA senior staff can be reached at the Authority’s main telephone number, which is (215) 426-2600. PRPA's administrative offices are located in the Philadelphia Regional Port Authority Administration Building, 2nd floor, 3460 N. Delaware Avenue, Philadelphia, PA 19134. James T. McDermott, Jr. Executive Director Robert C. Blackburn Deputy Executive Director Theresa Buck Director of Insurance Jack Dempsey Director of Real Estate Edward G. Henderson Director of Finance & Capital Funding Donna Houston Director of Human Resources Gregory V. Iannarelli, Esq. Chief Counsel Charles J. Lawrence Director of Engineering Sean E. Mahoney Director of Marketing William B. McLaughlin III Director of Governmental & Public Affairs Joseph P. Menta, Jr. Director of Communications Ronald E. Mikalaitis Director of Maintenance Joseph F. Petruzzi Director of MIS Donna Powell Director of Procurement James Walsh Director of Operations Nicholas Walsh Director of Strategic Planning PRPA’s new cranes just after arriving at the Packer Avenue Marine Terminal on Tuesday, October 28. McDermott Discusses Expansion, Dredging, and Other Pending Port Issues on the Airwaves The Hamburg-Sud container vessel Cap San Augustin arrives at the Packer Avenue Marine Terminal on Monday, June 20. A deeper Delaware River main channel is necessary for continued growth for the Port of Philadelphia’s container business. James T. McDermott Jr., Executive Director of the Philadelphia Regional Port Authority, was the featured guest on the Sunday, May 8, 2005 edition of The Ninety Forum, a radio program hosted by former Philadelphia City Councilman James Tayoun, who also publishes The Public Record, a popular weekly newspaper in Philadelphia. The radio program airs every Sunday from 7:00 a.m. to 8:00 a.m. on WYSP (94 FM). Last issue, this publication ran a transcript of the first half of that interview. PortWatch is now pleased to provide for our readers the conclusion of Mr. Tayoun’s discussion with Mr. McDermott. We pick up here as Mr. McDermott fields additional calls from listeners that day… complete its facility by the end of the year. PRPA’s own rail plans are aggressive, too. We are in the process of acquiring Pier 124 from CSX, and we will eventually be purchasing Pier 122 as well. The cranes on Pier 122 are 1950s vintage, so they need some attention, and there are some OSHA issues there, too, but our plan is to repair those cranes and those facilities, as well as acquire and develop the properties around those piers. So, with the railroads enhancing their intermodal connections and PRPA fixing up the piers adjacent to those new connections, we’ll have quite the operation south of the Packer Avenue Marine Terminal. Remember, the Port of New York and New Jersey is at capacity. They have no more space. Fourteen years ago when I first started, we’d be chasing after lines in New York and couldn’t get them to return our phone calls. They’re now regularly visiting our office, looking for opportunities here in Philadelphia. They want to be the first in the door. Because, once that first dredge vessel shows up on the Delaware River to deepen the channel, you’re going to see private infrastructure dollars become available. That area—Piers 122, 124, and the southeast tip of the old Philadelphia Navy Yard, which we already own—is going to be the site of major development. Caller (Rich): I work for Norfolk Southern, and I believe with rising fuel costs, railroads are the best way to go. Could you talk a little bit about the Port’s future plans with the railroads? Mr. McDermott: Thanks for the question, Rich. First, as I said earlier, we have three fine classone railroads here, and they’ve been moving very aggressively lately. They, like the Port, realize that the future of the Port of Philadelphia lies south of the Walt Whitman Bridge in those lesscongested, yet-to-be-developed lands near the former Navy Yard. So, both CSX and Norfolk Southern have both taken the time to complete their intermodal yards on the west side of the Packer Avenue Marine Terminal. Norfolk Southern, as I’m sure you know, is expected to 10 The Port of Philadelphia’s Key Allies This Issue: Congressman Robert Brady The Philadelphia Regional Port Authority recognizes that its mission of expanding commerce, promoting economic development and creating jobs is significantly strengthened by the support of regional elected officials. Seaports are at a critical intersection of economic, trade and regulatory policy, and what happens in our nation’s capital and our state capital can often have a profound impact on port activity. With this in mind, PRPA wishes to single out one particular legislator’s frequent, effective efforts on the Port of Philadelphia’s behalf. Congressman Robert A. Brady Caller (Tim): Will you really be able to accommodate the giant new cargo ships in Philadelphia? The ships that have to go to New York now? Mr. McDermott: That is the key to our future. Right now, to put it bluntly, New York can take ships that we can’t take. And without dredging, the situation will only get worse. The next generation of vessels is going to have the capability to hold as many as 6,500 containers in one ship. And right now, Philadelphia can handle, at most, container vessels with a 4,500-container capacity. If that fact doesn’t clearly illustrate our need to dredge, nothing will. But for now, let me say this: Because of the great work of our Teamsters, we’re able to move trucks over the road to New York and up into North Jersey, allowing us to capture some of Want to add a name or two to our PortWatch mailing list? Contact PRPA’s Communications Department at (215) 426-2600. 7 One of the Philadelphia area’s most important federal officials, Congressman Robert A. Brady (D-PA) has long been a key supporter of PRPA and an important advocate for its interests in the Halls of Congress. His Congressional District embraces most of PRPA’s facilities, including our largest terminal, the Packer Avenue Marine Terminal. Before entering Congress, Mr. Brady was intimately familiar with the activities of Philadelphia’s working waterfront. His involvement in Philadelphia civic life and his leadership in the local labor movement brought him into direct contact with the men and women who rely on the seaport for their livelihoods. His election in 1998 to the United States Congress, representing Pennsylvania’s 1st Congressional District, has given him an expanded forum to help the development of maritime activity in Pennsylvania. To cite one compelling example, Congressman Brady, as a member on the Committee of Armed Services, spearheaded the effort in Congress to designate the Port of Philadelphia as a Strategic Military Seaport. As PRPA Chairman Brian Preski remarked at the time, “Thanks to Congressman Brady and other regional elected officials, the Port of Philadelphia became the 14th Strategic Military Seaport in the United States. This has meant an enormous increase in cargo and labor man-hours for the Port. But in a larger sense, it has now involved PRPA in our nation’s ongoing effort to defend freedom around the world. All of us are proud to participate in that effort.” While keeping his eye on the larger national issues, Congressman Brady has not forgotten the important issues of infrastructure sustainment and landside access for the Port of Philadelphia. Again, thanks to his efforts and the efforts of Senator Specter and Senator Santorum, PRPA has received a $3.3 million transportation earmark in the recent Comprehensive Transportation and Infrastructure Act signed by President Bush. This appropriation will assist PRPA in its work to design and construct a critically needed port access road from our south Philadelphia port facilities to our major intermodal rail facilities (see related story on page 8). This will enhance cargo mobility and make the Port more competitive. James T. McDermott, Jr., Executive Director of PRPA, has told Congressman Brady, “We are extremely grateful for your efforts on our behalf. It is very reassuring to know that we have a person of your stature in Washington working on issues that mean so much to our continued success.” Congressman Brady continues his work for the Port of Philadelphia. He is deeply involved in discussions relating to the expansion of the Port of Philadelphia. His continued support of the project to deepen the Delaware River navigation channel to 45 feet and his support of innovative technologies to speed the movement of commercial and military cargoes to and from the Port of Philadelphia, as evidenced by steering an unprecedented $40,000,000 appropriation to PRPA for that purpose, are just two illustrations of his ongoing concern for the Port of Philadelphia. It is important that the port community acknowledge Congressman Brady and commend him for all he has done to advance and strengthen the port industry in Philadelphia and, thereby, enhance the nation’s economic well-being. We salute you, Congressman Brady, and look forward to many more years of productive association!■ Labor Officials Join PRPA Board that cargo even now. That, coupled with our rail infrastructure, means we can compete with New York to an extent, and have. We’ve taken some business out of New York for the first time, and lines are talking to us. But we have to close the deal by dredging. PRPA recently welcomed the two newest additions to the agency’s Board of Directors: Philadelphia labor leaders Boise Butler III and Harry T. Williams. Both joined the PRPA Board on August 9, 2005. Harry T. Williams The whole world is also looking at the China component. The west coast of this country cannot keep up with all the vessels from China. I think in the not-too-distant future you’re going to have a Port call from China here at our Packer Avenue Marine Terminal. Mr. Butler, President of International Longshoremen’s Association Local 1291, was a direct appointment of Pennsylvania Governor Edward G. Rendell. Mr. Williams, Business Manager and Secretary-Treasurer of the International Union of Painters & Allied Trades District Council 21, was appointed by Governor Rendell at the recommendation of the Bucks County Board of Commissioners. “I look forward to working with these two strong individuals,” said PRPA Chairman Brian Preski, Esq. “Their unique perspectives will be invaluable as the board deliberates on future business initiatives and the challenges facing the Port of Philadelphia.” ■ Caller (Kate): Can you talk about the improvements you have made at the Packer Avenue Marine Terminal area? Seen from the highway, it’s really an impressive looking facility. PRPA’s Annual Golf Outing Brings Diverse Port Interests Together for a Day of Fun and Friendly Competition Walt Picher, Ed Fitzgerald, John E. Mallough, and Joseph P. McDermott of Barthco International, Inc. show off their first-place standing in the 2005 PRPA Golf Outing. Congratulations, guys! 6 Registration was at 6:30 a.m. with a shotgun start at 7:30 a.m. A few hours later, as the dust settled just prior to lunch, the following teams emerged as this year’s victors: Mr. McDermott: We want to dredge just to the south side of the Benjamin Franklin Bridge. People often say, “Why not further?” Well, no matter how deep the water is, the air draft on the Ben Franklin Bridge, built in 1926, is 137 feet. These new super ships are 14 to 15 stories tall, and unfortunately can’t get under the bridge. But most of our major maritime operations take place south of the Ben Franklin Bridge, anyway, so dredging to that point will be fine. “The whole world is also looking at the China component. The west coast of this country cannot keep up with all the vessels from China. I think in the not-too-distant future you’re going to have a Port call from China here at our Packer Avenue Marine Terminal.” Caller (Patrick): I am a small business owner who often has trouble with the cost of shipping. Are there any programs in the Delaware Valley that help small business owners? Mr. McDermott: If you are Mr. McDermott: Thank exporting, there is a conyou, Kate. We lease the tainer incentive program terminal to the Holt family, for Pennsylvania-based James T. McDermott, Jr. which runs a company companies that puts $50 Executive Director called Greenwich towards the cost of shipPhiladelphia Regional Port Authority Terminals, LLC. Working ping a container back in with the Holts, we have your pocket. You can call landed P&O Nedlloyd, Sean Mahoney, our which is the second largest steamship line in Director of Marketing, at (215) 426-2600 to find the world. Australian beef and New Zealand out more about that. We also have other aggresmilk products all come in over P&O Nedlloyd. sive incentive programs in place to make it easiThe line committed to Philadelphia under previer to start doing business with the Port. ous Pennsylvania Governor Mark Schweiker, Caller (Al): What is the future of the S.S. United who released $25 million to PRPA to make the States, the historic old cruise ship stored at the improvements at Packer Avenue that P&O needPort? ed. We purchased two post-Panamax container gantry cranes for the terminal. We added 800 Mr. McDermott: Al, that is one of the questions I refrigerated plugs for 40-foot frozen containers am asked most frequently. That grand old ship, to plug into. And we’ve done a lot of other neclong out of service, was brought to Philadelphia essary infrastructure improvements to the facilion the belief that it would be one of the venues ty to not only accommodate P&O, but to attract for riverboat gambling. Of course, riverboat additional services. gambling is controversial and may never happen. So right now the vessel sits there as its But as proud as what we’ve done at Packer owners seek other options for it. Since being Avenue, that doesn’t tell the whole story. We’ve got plans in South Philadelphia to build a brand- docked here, it has recently been sold, and it’s my understanding that the new owners’ intennew warehouse at Pier 74 for the forest prodtion is to refurbish it and put it back into service ucts that come in from Finland. South in some capacity. I have to say, even considerPhiladelphia is cooking. We are doing very, very ing the shape it’s currently in, that vessel still well there. We own Pier 100, Pier 98, Pier 96, has the sleekest lines of any cruise ship I’ve and the property at Delaware and Oregon Avenues, which has a number of exciting poten- ever seen. When we have more specific information on the vessel, we’ll be sure to pass it on tial uses we’re now investigating. to the public. Caller (Mike): How far up the river do you want Continued on page 12: McDermott Discussion Boise Butler III and PRPA Executive Director James T. McDermott, Jr. following a recent meeting in the PRPA offices. Port Industry Hits the Links Despite some uncooperative weather, the 4th annual PRPA Golf Outing was a resounding success, bringing together a large cross-section of the Philadelphia maritime industry for a day of camaraderie and competition. This year’s event was held at the Valleybrook Country Club in Blackwood, New Jersey on Friday, June 3rd. to dredge to let these super ships come up? First-place winners: Walt Picher, Ed Fitzgerald, John E. Mallough, and Joseph P. McDermott of Barthco International, Inc. Second-place winners: Todd Brown, Craig Tocci, Yutaka Kawai, and Sean Nozaw of Holt Logistics. Third-place winners: John Hewlings and Bob Thompson of the Pilots Association for the Bay & River Delaware; and Frank Kelly and Mario Dioguardi of PRPA. PRPA congratulates this year’s winners and also gives a tip of the hat to the event’s capable organizers: PRPA’s Director of MIS Joseph Petruzzi and MIS/Strategic Planning Secretary Donna Rymal. ■ 11 Continued from page 11: McDermott Discussion UPCOMING IN PORTWATCH… PRPA receives a federal grant for river depth and air draft restriction sensors. Learn how this will make commerce on the Delaware River safer. The RAPID system is making cargo tracking and overall logistics more efficient than ever at the Port of Philadelphia. A comprehensive update on this innovative system. Congressman Robert Brady and State Representative William Keller are honored by the World Trade Association of Philadelphia. A report on the awards dinner. Shipping containers of footwear to Europe? Importing garments from Asia? Need to move your freight fast but economically? It’s time to call BARTHCO. A profile of this longtime Port of Philadelphia company. And, last but not least, PRPA’s Joan Glenn retires after 22 years of service to Pennsylvania’s international seaport. For these stories and much more, look for the Fall 2005 edition of PortWatch, to be distributed this November. Welcoming Our Friends from Down Under Mr. Tayoun: The Port of Philadelphia is experiencing unprecedented labor peace. You have a six-year deal with the ILA, which is unheard of. to Bob Brady, Bill Keller and our other elected officials, Governor Rendell is going to get the channel-deepening project completed. Mr. McDermott: We owe it all to (late ILA Local 1291 leader) Sal Candelaria. The longshoremen and management are getting along better than they ever have. The ILA’s offices are right in our port administration building, in fact. We have daily communication. And that staff I told you about is going to oversee our SouthPort project to expand Packer Avenue Marine Terminal to the south and be ready to receive the next generation of cargo vessels. And we’ll do this while still maintaining and improving our existing port facilities at Packer Avenue, Piers 78/80, Pier 82, Pier 84, and Tioga Marine Terminal. This is a truly exciting time for us, and I’m proud to play a small part in all this. Mr. Tayoun: You have the Teamsters in your building, too. Mr. McDermott: Yes. Frank Gillen and Joint Council 53 are in our building. They do a terrific job at the Port. Local 107, the folks who move most of the cargo through the Port, does a terrific job thanks to Bill Hamilton, their president. All these guys—the ILA and the Teamsters—are working together, with each other and with Port management, and their solidarity is good for the entire city. It’s an effective public/private partnership that you don’t see at other ports. A day later, a smaller but no less productive meeting took place in the PRPA offices between PRPA officials and two visiting government officials from the city of Sydney in New South Wales: Loftus Harris, Director General of the Department of State & Regional Development and Michael O’Sullivan, Executive Director of Industry in the same department. The two gentlemen discussed a variety of port and business issues with PRPA Director of Communications William B. McLaughlin III, Director of Strategic Planning Nicholas Walsh and PRPA Senior Marketing Representative Dominic O’Brien. Mr. Tayoun: And we were proud to have you with us today. Good luck to you. “It was wonderful that our friends in Australia made it a priority to visit the Port of Philadelphia while they were in town attending the Biotech conference,” said Mr. McDermott. “They made it clear to us during their visits that our mutual trading relationship is as important to Australia as it is to Philadelphia.” Mr. McDermott: And good luck to you, too, Jim. ■ PRPA’s leadership and three generations of the Holt family greet Premier Bracks on Monday, June 20. From left to right: Thomas J. Holt, Jr.; PRPA Executive Director James T. McDermott, Jr.; Thomas J. Holt III; Thomas J. Holt, Sr.; Premier Bracks; and PRPA Deputy Executive Director Robert C. Blackburn. Premier Bracks was presented with an official Port of Philadelphia commemorative print during his visit. Mr. Tayoun: We only have a few moments left. Let’s talk about the “Port of the future.” Where do you see the Port of Philadelphia going? Mr. McDermott: The Port of the future lies south of the Walt Whitman Bridge on those untapped lands that will augment the existing port. But let me first say a word about our staff, because they make it all happen. Our dedicated staff— we have 90 people at the PRPA—is the best public sector staff I have ever worked with in 25 years. Sometimes people take their shots at the public sector. I am here to tell you that I’ve got MBAs on this staff, engineers, a couple of attorneys, and all professional people. We market internationally. It’s a terrific staff. Officials from Melbourne and Sydney Visit the Port of Philadelphia The key to future port growth lies south of the Walt Whitman Bridge. PRPA’s proposed SouthPort project will significantly expand maritime operations in that underutilized area. Our strategic planning department has put together a master plan that will forever and a day have Philadelphians going to work on their waterfront, just like their forefathers did. Thanks 12 5 As most PortWatch readers are well aware, the Port of Philadelphia and Australia have been major trading partners for over two decades. So it was an extremely pleasant duty for PRPA staff and terminal operators to meet and greet two delegations of government and trade officials from Down Under this past June. To learn more about our trade with Australia, see the related article on page 3 about weight restrictions being eased for imported meat cargoes from Australia. ■ The Honorable Steve Bracks, Premier of the State of Victoria, was in Philadelphia June 18-22 to attend the Biotech 2005 conference and made it a point to schedule an afternoon at the Port of Philadelphia on Monday, June 20. The Premier, along with his delegation of government, trade, and media officials, met with PRPA Executive Director James T. McDermott, Jr. and other PRPA staff at the Packer Avenue Marine Terminal. The visit included a mutual briefing on pending issues at the Port of Philadelphia and Victoria’s Port of Melbourne, and a tour of the Packer Avenue Marine Terminal by representatives of the Holt family, operators of the Packer Avenue facility. The Port of Philadelphia and the Port of Melbourne established Representatives from the Sydney, New South Wales office of the Department a Partner Port Agreement in of State and Regional Development visited the PRPA offices on Tuesday, June 21. Seen here from left to right are Loftus Harris, Director General of 2001. the Department of State and Regional Development; PRPA Director of Governmental & Public Affairs William B. McLaughlin III; Michael O’Sullivan, Executive Director of Industry of the Department of State and Regional Development; PRPA Senior Marketing Representative Dominic O’Brien; and PRPA Director of Strategic Planning Nicholas Walsh. Port’s Foreign Trade Zone Profiled by National Association Port Has Key Role in Defense A Message from PRPA Chairman Brian Preski, Esq. The following first appeared as an Op-Ed piece in the June 7, 2005 edition of The Philadelphia Inquirer, Philadelphia’s major daily newspaper. Shortly thereafter it also appeared in several other newspapers in central and western Pennsylvania. We are pleased to reprint Chairman Preski’s Op-Ed piece below for the benefit of PortWatch readers. The Port of Philadelphia’s importance to Pennsylvania’s large military and commercial markets was dramatically underscored last month. The Pentagon announced the closing of 180 military installations, but the four Army depots that work with the Port were spared. They will continue playing critical roles in the war against terrorism. In fact, the commonwealth is expected to gain nearly 1,000 military and civilian support jobs. A U.S. Army Black Hawk helicopter is readied for shipment overseas at the Packer Avenue Marine Terminal. PRPA’s Strategic Military Seaport designation has produced substantial benefits not only for the Port, but for military installations throughout Pennsylvania. The Port is part of an ongoing effort to support the rapid movement of military personnel and equipment to theaters of war around the globe. Key players for the port are the Defense Supply Center Philadelphia, which processes food, fuel, medicine and spare parts for our troops; Letterkenny Army Depot, a 17,500-acre complex in Franklin County; Tobyhanna Army Depot, a full-service communications-electronics command in Monroe County; and the Defense Distribution Center Susquehanna, the Defense Department’s largest warehouse. The decision by federal officials in October 2002 to designate the Port of Philadelphia as one of 14 Strategic Military Seaports in the nation already is paying dividends. It not only has the ability to provide much-needed supplies for the men and women in combat, but it also is a viable partner for the four Pennsylvania defense facilities with which it works closely. Pennsylvania is a state that historically has been hit hard by closings ordered by the Base Realignment and Closure Commission—most recently the threatened closing of the Naval Air Station in Willow Grove. Since the early 1990s, the state has lost more than 3,000 military and 13,000 civilian jobs. Clearly, a new strategy was needed to stave off future base closings. Initial success came three years ago when the Port was selected by the Defense Department as a Strategic Military Seaport—the first so designated following the 9/11 terrorist attacks. The Port now is on the cutting edge as 4 NAFTZ Highlights Our FTZ’s Many Benefits a national model for military cargo deployments— thanks to the efforts of the Delaware River Maritime Enterprise Council, a non-profit group funded by state and federal governments, the Philadelphia Regional Port Authority, and a dedicated contingent of elected officials. The Philadelphia Regional Port Authority, Grantee of Foreign Trade Zone (FTZ) No. 35, was pleased to note that our FTZ was profiled in the July 2005 edition of Zones Report, the official publication of the National Association of Foreign Trade Zones (NAFTZ). The following is what the publication had to say about us: Last year, the Port was one of the five busiest in the nation in shipping military cargo, largely due to a new strategic system that dramatically reduces deployment time. Time and time again, the Port of Philadelphia has shown it can do the job efficiently. The Philadelphia Regional Port Authority (PRPA) is the grantee of Foreign Trade Zone No. 35, which covers Southeastern Pennsylvania. Since its establishment in 1978, FTZ #35 has been a major center of maritime industrial commerce. There are currently nine sites in the General Purpose Zone, which are in close proximity to local marine terminals and airports. In addition, four special-purpose Subzones remain active. A critical partner in this success story is Letterkenny Army Depot, which will not only keep its 2,500 civilian jobs, but also gain more than 400 positions as military missions relocate there from bases targeted for realignment or closure. Four years ago, representatives from the Philadelphia port community visited the sprawling military complex southwest of Harrisburg. Their mission was to convince defense officials that by designating the Port a Strategic Military Seaport, we would be able to create and foster a mutually beneficial relationship that would spur new business and investments. Thanks to many people, that mission was successful. In fiscal year 2004, the total value of merchandise received in all activated FTZ sites in Philadelphia reached $9.41 billion, a 13.5% increase from the year 2003. The total value of exports to foreign countries jumped to $37.67 million, 1.67 times the figure of the year prior. Furthermore, the overall cargo increased by 16.2%, the container numbers increased by 27.4%, and the breakbulk numbers increased by 12%. These significant improvements are largely due to the newly expanded Philadelphia International Airport Zone Site, and a new manufacturing contract between Merck & Co., Inc. and another pharmaceutical firm. Also important is Tobyhanna Army Depot, which has an outstanding record of providing repair service for the electronics equipment used by our troops in battle. It has partnered with the Port of Philadelphia to ensure the readiness of our armed forces. The development of a new strategy and the fostering of new partnerships has laid a strong foundation for both the Port of Philadelphia and Pennsylvania’s military infrastructure. What we have accomplished together gives us a clear advantage as we compete for jobs and the investment that comes with defense spending. The Port is a hotbed for development, which makes it critical that we deepen our shipping channel in the Delaware River from 40 feet to 45 feet. Channel deepening makes sense on every level: We will add cargo and jobs, and the local economy will benefit. Moreover, today’s modern vessels require deeper drafts. Our 40-foot draft simply can’t meet the need. If we continue to idly sit by, our business will move to competing ports both north and south of us. The Port of Philadelphia is not only a viable economic engine for the city of Philadelphia, but for the Commonwealth of Pennsylvania as well. The Defense Department’s decision on May 13 was a resounding affirmation of our continuing efforts to shape this region for future military and commercial investments. ■ TELL US YOUR NEWS The Philadelphia Regional Port Authority’s PortWatch is produced quarterly by the Authority’s Communications Department, which invites members of the maritime community to submit news for future issues. News items can be e-mailed to Joseph Menta at JPMenta@philaport.com or faxed to him at (215) 426-6800. 13 Within Foreign Trade Zone sites in Philadelphia, 13 active firms, including Aircraft Services International, Inc., Merck & Co., Inc., Sunoco, Inc., Conoco Phillips Company and the Kvaerner Philadelphia Shipyard, collectively contribute to the employment of 11,603 persons. These firms sponsor dozens of community outreach programs in the form of both monetary and employee assistance, and promote the enhancement of the city of Philadelphia and surrounding areas through various programs. For example, Sunoco is one of the largest area contributors to the United Way, a national organization promoting community well-being. The oil refineries and the Philadelphia International Airport also provide the locality with vital services at reasonable cost and generate many jobs that strengthen the local economy. The Philadelphia Regional Port Authority is marketing FTZ #35 very aggressively. It advertises the zone in trade journals, provides presentations to business groups and universities, and publishes and updates information on its Web site and CD-ROMs. The PRPA has also offered to the business community full-day seminars on overall Foreign Trade Zone establishment and development. It continues to make particularly strong efforts to attract Asian services to the Port. PRPA thanks the National Association of Foreign Trade Zones (NAFTZ) for running the preceding profile in its July issue. NAFTZ is a non-profit association that advocates the advancement of the U.S. Foreign Trade Zone program. NAFTZ provides leadership in the use of the FTZ program to generate U.S.-based economic activity by enhancing global competitiveness. To learn more about NAFTZ, visit the organization’s Web site at www.imex.com/naftz.html. To read more about how attaining Foreign Trade Zone status for all or part of your business can reduce or even eliminate import duties, as well as significantly improve your bottom line in a number of other ways, contact David Harvey in PRPA’s Strategic Planning office or visit us at www.philaport.com. ■ A Port Mainstay Calls It a Day New Legislation Dramatically Benefits Port of Philadelphia’s Frozen Meat Cargoes After 25 Years with the City of Philadelphia and Then 16 Years at the Port, Dave Dambly Retires from Public life Outgoing PRPA Director of Real Estate David Dambly receives an official Port print as a retirement gift on Wednesday, June 22. From left to right are PRPA Director of Engineering Charles Lawrence; Mr. Dambly; PRPA Executive Director James T. McDermott, Jr.; and new PRPA Director of Real Estate Jack Dempsey. David Anders Dambly, PE, 73, longtime Director of Real Estate for the Philadelphia Regional Port Authority and Vice President of PRPA’s predecessor agency, the Philadelphia Port Corporation, was honored by his family, friends and co-workers at a retirement luncheon and tribute at Swan Caterers’ famous Waterfall Room on Wednesday, June 22. Among those who spoke fondly of Mr. Dambly from the dais during the course of the luncheon were PRPA Executive Director James T. McDermott, Jr., who served as Master of Ceremonies; PRPA Director of Governmental and Public Affairs William B. McLaughlin III; PRPA Director of Engineering Charles J. Lawrence; PRPA’s new Director of Real Estate Jack Dempsey; Mike Gabor of Urban Engineers, Inc.; and Alexander (Pete) Hoskins, President of the Philadelphia Zoo and longtime coworker of Dave Dambly during their City of Philadelphia days. “This is truly a momentous day for both the Port and the city,” said Mr. McDermott during his remarks. “So many major construction projects throughout the City of Philadelphia and its waterfront were touched by the expertise of Dave Dambly, an engineer’s engineer. Dave Dambly can finally call it a day knowing that he made a major contribution to the civic and commercial life in our region. We won’t see his like again.” Mr. Dambly was born and raised in Philadelphia’s historic Germantown area. He is a graduate of the city’s Central High School and earned two degrees at Penn State University: forestry and civil engineering. After college, he was drafted into the U.S. Army at the end of the Korean War. During that time, he spent time with a group of engineers in San Francisco and Panama, and was immediately interested in their work. Two years later, with the only job in forestry he could find being a job on the West Coast where he “literally sat on top of a mountain looking for forest fires,” Mr. Dambly decid- 14 Thanks to new legislation passed earlier this summer, the Port of Philadelphia has once again facilitated the movement of imported frozen meat cargoes through the Port to their final destinations. Specifically, a refrigerated truck departing a Port of Philadelphia marine terminal will now be allowed to carry up to 107,500 pounds of frozen meat products, a dramatic increase over the previous 90,000-pound limit. ed to return to Penn State and earn a degree in civil engineering. A resident of Philadelphia’s Chestnut Hill area and later Glenside, Pennsylvania during most of his adult life, Mr. Dambly now lives in an independent retirement community in Montgomery County, not far from the birthplace of his father, Harold, who along with his mother Alba were the two greatest influences on his life. The effort to amend the previous weight limit for cargoes moving through Pennsylvania was mounted by PRPA staff in association with terminal operators, shippers, trucking companies, and cold storage operators. Weight limits and other regulations governing the movement of commercial cargoes over Pennsylvania’s highways are set by the Pennsylvania legislature An avid reader of local history who is also fond of classical music, Mr. Dambly now looks forward to returning to his roots, so to speak, by tending both his patio garden and larger vegetable garden. PortWatch spent time with him in the final days of his tenure at PRPA. PortWatch: You grew up in Germantown and have a great love for this region. When did you start working for the city? Mr. Dambly: I started working during the Tate administration in 1964. I was working in the engineering department in Fairmount Park, and I liked it very much. I worked there for seven or eight years. PortWatch: Then it was off to the Managing Director’s Office in the early ’70s. Previous victories by port officials involving this issue included amending state weight permit regulations so that trucking companies could secure an annual permit to carry containerized cargo exceeding 80,000 pounds, up to 90,000 pounds, replacing the previous system where permits for heavy container loads had to be secured on an individual-shipment basis. Now, trucking companies carrying refrigerated meat products can secure an annual permit to carry up to 107,500 pounds. “This legislation was the end result of a cooperative effort to contain the costs associated with importing refrigerated and frozen meats,” said PRPA Chairman Brian Preski, Esq. “The consumer is the ultimate winner here. By allowing heavier containers, shippers can take advantage of economies of scale to keep transportation costs low, resulting in lower end costs to consumers.” Industry response to PRPA’s successful initiative to increase the upper weight limits for refrigerated cargoes has been gratifying. “This is great news for everyone,” said Mr. Laurie I. Bryant, Executive Director of the Meat Importers Council of America, Inc. (MICA). “The Port of Philadelphia has been a valuable friend to our industry for close to thirty years. This latest victory is yet another great example of the Port’s commitment to our trade.” Mr. Dambly: That’s right. The job in Fairmount Park was great, but it had its limitations. I wanted to advance my career, so I went to the Managing Director’s Office and joined the Capital Projects Control Unit as a staff engineer. We reviewed the plans and specifications for a lot of city construction projects. PortWatch: How long did you remain there? Mr. Dambly: Well, I stayed a lot longer than I thought I would because I kept getting the advancements that I wanted. I stayed until 1986, when Dudley Sykes, Over a hundred members of the Philadelphia maritime community helped give Dave Dambly a proper send-off on June 22. dock facilities for cargo, but to ensuring that inland transportation, whether by truck or rail, will happen with the greatest efficiency and convenience.” Tom Holt, Sr. of Greenwich Terminals, LLC (at right) shows recently arrived boxes of frozen meat from Australia to Steve Bracks, Premier of Australia’s State of Victoria, during the Premier’s tour of PRPA’s Packer Avenue Marine Terminal on Monday, June 20 (see related story on page 5). Frozen meat from Australia and New Zealand will be big winners thanks to new legislation allowing increased over-the-road weight limits for these imported cargoes. 3 and administered by the Pennsylvania Department of Transportation (PennDot). Cargo weight limits include both the weight of the cargo and the truck’s chassis. “I want to commend everyone involved in this important effort, especially House Transportation Committee Chairman Richard Geist, who sponsored the legislation and helped us guide it through the legislative process,” said Mr. McDermott. “This initiative demonstrates, once again, that the Port of Philadelphia and the Commonwealth of Pennsylvania care deeply about the industries that use our facilities. We are committed to ensuring not only the best on- The lion’s share of frozen meat cargoes entering the Port of Philadelphia consists of grinding meat originating in Australia and New Zealand. This meat is a prime component in most of the hamburger patties sold in our nation’s fast-food restaurants and is also a main ingredient of other processed food, such as pizza toppings and seasoned ground meat for tacos. The primary ocean carriers delivering this cargo to the Port of Philadelphia are Hamburg-Sud, P&O Nedlloyd, CP Ships, and Maersk. ■ who was the city’s public property commissioner, asked me to become his deputy. And I very much enjoyed the job. Philadelphia Regional Port Authority Announces New Intermodal Incentive Program PortWatch: Then, of course, you were named to the top job. Program Rewards Ocean Carriers for Using the Port of Philadelphia’s Intermodal Connections The Philadelphia Regional Port Authority Board of Directors Brian Preski, Esq. Chairman Boise Butler III Capt. John P. Cuff Frank Gillen Thomas J. Kelly Charles N. Marshall James E. McErlane, Esq. Michael A. Rashid Chad Rubin, Esq. Herb Vederman Harry T. Williams The Philadelphia Regional Port Authority is pleased to announce that its Board of Directors recently approved the agency’s new Intermodal Incentive Program. Effective immediately, participating ocean carriers that utilize the Port’s class-one railroad service for the movement of their containers will receive a $25.00 per container incentive. “Philadelphia really has a story to tell when it comes to intermodal service,” said PRPA Director of Marketing Sean Mahoney. “Not only do we have service by three class-one railroads, but those railroads are improving their services all the time. This November will see the opening of Norfolk Southern’s new intermodal facility at the Philadelphia Naval Business Center, right next to our Packer Avenue Marine Terminal. The aim of this new incentive program is to make it easier than ever for carriers to choose Philadelphia for their intermodal moves. And we’re also pleased that this new program rewards our existing customers, too, allowing them to benefit from this financial incentive when they exceed their past intermodal cargo levels.” 2 PortWatch: So, how did you end up at the Port? “We’re one of the few ports in the country with service by three class-one railroads,” said Mr. McDermott, “and this new program will give carriers an added reason to see for themselves why Philadelphia is second to none when it comes to intermodal efficiency.” The Port of Philadelphia is serviced by three class-one rail lines: Norfolk Southern, CP Rail, and CSX. The Intermodal Incentive Program is especially attractive to carriers not currently using the Port of Philadelphia, as initially every intermodal container moved by a new carrier calling the Port will receive the $25.00 incentive. The program also benefits carriers already using the Port: For existing port customers that have a history at the Port of Philadelphia, cargo-handling benchmarks have been established, so the $25.00 per container incentive will immediately commence for all intermodal moves above and beyond those benchmarks. Mr. Dambly: Yes. It was the last year of the first term for Mayor Wilson Goode, and Dudley very suddenly told me he was leaving for another job and that he was going to recommend me for the post of commissioner. Mayor Goode appointed me, and as it turned out, I ended my career with the city first as deputy commissioner, then commissioner of public property. PRPA’s new Intermodal Incentive Program aims to bring new attention to the Port of Philadelphia’s excellent intermodal connections. Seen here is intermodal activity by CSX and CP Rail in the direct vicinity of PRPA’s Packer Avenue Marine Terminal. Mr. Dambly: I was winding up 25 years of service with the city, and I decided that I wanted to do something else. I was also nearing retirement age, and, frankly, I didn’t think Mayor Goode was going to reDave and members of his family at his retirement luncheon. appoint me as commissioner in his second term. I started talking with a friend named John LaRue, who was then President of the old Philadelphia Port Corporation. I started kidding with him and said, “How about getting me a job down there? You know what I can do.” Well, he surprised me in late fall of 1987 when he made me an offer. PortWatch: What was your first assignment? What title did you hold? Mr. Dambly: I joined the old port corporation in January 1988 and was given the title of Vice President, but, honestly, John LaRue wanted me to help on capital projects since I had been doing that kind of work my entire career. As a sort of backdrop to all of this, the city realized at the time that it did not have the funding to maintain and promote the Port, so there was a big push to transfer authority to the state. Those interested in learning more about PRPA’s innovative new Intermodal Incentive Program should contact PRPA’s Marketing Department at (215) 426-2600. Mr. Mahoney or one of PRPA’s Marketing Representatives are ready to discuss all aspects of this exciting new program. PortWatch: Those were very perilous times for the City of Philadelphia’s fiscal health. The Philadelphia Regional Port Authority’s Intermodal Incentive Program is funded by a grant from the Pennsylvania Department of Community and Economic Development. ■ Mr. Dambly: That’s right. The city was having trouble finding the money for police and fire safety, let alone the Port. So, we started getting capital money from the state, and John LaRue wanted me to make sure we were spending it properly. PortWatch: Give us an idea of what you found when you first came to the Port Corporation. 15 Mr. Dambly: We were in poor shape. I saw sheds that had leaking roofs, paving that was in bad condition. Things generally were in bad shape. The unfortunate thing about the Port Corporation is that the majority of our money was used for deferred maintenance, and our buildings were old and generally in need of repair. My immediate goal, of course, was to perform as much deferred maintenance as we could to get things up to a higher standard. Also, we had a limited amount of new construction. Sheds were built at Tioga Terminal, Pier 78 and Pier 82. PortWatch: Then the birth of the Philadelphia Regional Port Authority shortly followed. Mr. Dambly: Yes, along with state financial support came a change in port governance and a new name, the Philadelphia Regional Port Authority. And the good thing was we suddenly had more money to do restoration and expansion of the Port facilities. For example, when I started here, there was a big push for more refrigeration. We had just two refrigerated buildings at that time, one at Packer Terminal and one at Tioga. We now have added much more refrigerated space at Tioga and Pier 84. We’ve more than doubled our refrigerated square-footage. The demand is there. If we had the money to double it again, our customers would be happy. PortWatch: Give me a general description of your duties at the PRPA. Mr. Dambly: Well, as Director of Real Estate and Insurance, I had to deal with the great number of leases we have because we are a landlord port. I dealt with the tenants all the time. We made sure that not only the Port but the tenants, too, had the proper insurance policies in place. In this capacity, I was ably assisted for many years by Theresa Buck, who at the time was our Real Estate and Insurance Manager. After a time, we split my title and I became simply Director of Real Estate and Terry Buck became Director of Insurance, the title she now holds. PortWatch: You were still doing capital projects work, too, weren’t you? Mr. Dambly: Yes, I was wearing a third hat, so to speak, making sure we were spending our capital dollars correctly, attending endless planning meetings, deciding what to do with the money from the state, things of that nature. PortWatch: As you look back on your career with the Port of Philadelphia, what impressions are you left with? Mr. Dambly: That the Philadelphia Regional Port Authority is an important asset not only to the City of Philadelphia and the Commonwealth of Pennsylvania, but to the entire Delaware Valley. Most people don’t know—and I didn’t know until I arrived—how important the Port is. I’ve been proud to work here. ■ Volume 1, Issue 18 was designed by Davis Advertising Inc. and constructed and installed by Grid Sign Systems, both Pennsylvania-based companies. PRPA plans to install similar signage at its various marine terminals in the near future. Summer 2005 Summer 2005 Review of PortWatch: A Publication of the Philadelphia Regional Port Authority Proudly Managing Pennsylvania’s International Seaport Since 1990 No Lazy Days of Summer Here An initiative to increase public awareness of PRPA and the importance of port activity via new, dynamic signage kicked off this past June with the installation of a new marquee sign at PRPA’s administrative headquarters at 3460 N. Delaware Avenue. The new sign features PRPA’s name and logo on a bright blue field with letters that light up at night. The sign New Rail Incentive Program and Pro-Trucking Legislation Highlight Productive July and August at the Port ALSO IN THIS ISSUE... PRESKI TALKS DEFENSE …PAGE 4 HOSTING VISITORS FROM DOWN UNDER …PAGE 5 LABOR OFFICIALS JOIN PORT BOARD …PAGE 6 3460 North Delaware Avenue, 2nd Floor Philadelphia, PA 19134 CONGRESSMAN BRADY CHAMPIONS THE PORT …PAGE 7 DAVID DAMBLY SAYS FAREWELL …PAGE 14 The Hamburg-Sud container vessel Cap San Augustin docks at the Packer Avenue Marine Terminal on Monday, June 20. www.philaport.com