When we reported last month that APL would be leaving Oakland for a more "affordable" home, many readers may have assumed that another seaport city would be the logical alternative. As it turns out, that’s not the case.
By Paul Duclos
Published: February, 2009
When we reported last month that APL would be leaving Oakland for a more affordable home, many readers may have assumed that another seaport city would be the logical alternative. As it turns out, that’s not the case. APL’s parent, Neptune Orient Lines (NOL), announced that it will relocate its Americas regional headquarters to the greater Phoenix, Arizona area during the second half of 2009. The headquarters shift is part of NOL’s global strategy to place its cost structure on a more sustainable footing in the face of the current economic downturn, while continuing to provide the highest standards of service to its customers.
NOL said the move from its current headquarters in Oakland, California, to Arizona should be completed during the third quarter of the year. We’re excited to announce that Arizona will be the new home for our regional headquarters, said NOL’s Regional President for the Americas, John Bowe. The greater Phoenix area will be a cost-effective base of operations for us and we’re going to a state that is well-known for its support and encouragement of business.
By way of consolation, NOL pointed out that while the regional headquarters office is moving, its shipping line, APL, will continue to call regularly at its West Coast marine terminals in Oakland.
Port of Oakland Continues Cost-Cutting
Meanwhile, the troubled Port of Oakland is continuing to cut costs and reduce jobs in an effort to stop its fiscal bleeding. Officials report that the gross revenues of $298.7 million this year will fall $12.1 million short of projections unless steps are taken to reduce costs or increase operating revenues before then.
Late last month the Board of Port Commissioners voted to temporarily lay off nonessential staff for 13 days this fiscal year, matching steps taken by the city of Oakland to reduce its own $42 million budget deficit. The port layoffs affect 54 percent of its workforce and constitute a total estimated savings of $1.3 million, or $100,000 a day, ports spokesmen said.
Earlier last year, the port had ordered a hiring freeze. Further cuts were made this fiscal year by first eliminating vacant positions that were not related to safety and security services, followed by reductions of about 40 employees in late August and early September, mostly in areas that had worked on capital projects. In the end, 100 positions were eliminated, leaving a staff of 575.
The port is also trying to implement some more positive public/private financing for future projects, and is hardly alone in facing the current global slowdown in containerized traffic. Maritime analysts say recovery will come in late 2009, but all commercial seaports will be hurting well beyond that date.
Cal Maritime Receives Grant for Ship Engines
A $500,000 grant from the California Air Resources Board’s (CARB) Carl Moyer program will help the California Maritime Academy replace outdated diesel engines aboard three of its campus workboats—the Black Bear, Little Bear, and Cub. The installation of new state-of-the-art clean-diesels will result in improved fuel efficiency and a marked reduction in concentrations of nitrous oxide and other gases and particulate matter. For Cal Maritime, the upgrades also provide a valuable hands-on learning experience for cadet engineering instruction.
Cal Maritime marine vocational instructors Richard Muller and Mike Andrews played a lead role in preparing what proved to be a winning grant application to the Bay Area Air Quality Management District (BAAQMD), CARB’s regional arm. The Carl Moyer grant program was created by the Legislature and CARB with a goal of reducing toxic emissions from a wide range of industrial applications using heavy and light-duty diesel engines. In general, grants pay for new engines, less the cost a user would have paid to rebuild an original unit. Replacing old engines with today’s state-of-the-art technology produces the greatest benefits in terms of reduced gases and particulate matter. The Moyer program provides over $140 million of grant funds annually. We estimate that these new engines will reduce our output of nitrous oxides by more than half, said Andrews. Equally valuable, we expect an improvement in fuel efficiency of between 30 and 50 percent.
The Pacific Transportation Association is staging its annual sports luncheon Tuesday, February 10, at the Marines Memorial Club. Cocktails will be served at 11:30 a.m. with lunch served at noon. As always, a provocative and engaging speaker has been confirmed: Bill Neukom, Managing General Partner and CEO of the San Francisco Giants. Check the PTA website for pricing and seating details: www.pacifictrans.org.
