Port of San Francisco Solicits Cargo Proposals

The Port of San Francisco, which effectively ceded container operations to its crossbay rival, the Port of Oakland, many years ago, is getting back to basics.

By Patrick Burnson  
Published: July, 2011 

The Port of San Francisco, which effectively ceded container operations to its crossbay rival, the Port of Oakland, many years ago, is getting back to basics. In an effort to attract more merchant vessel calls, it is soliciting interest from qualified respondents for developing and operating a bulk marine cargo handling terminal at the port’s Pier 96.

The port is seeking to identify one or more qualified maritime cargo terminal operators with a proven capability of designing, financing, developing and operating bulk terminals at other ports who may be interested in expanding into the Port of San Francisco market.

Spokesmen note that characteristics of the Pier 96 site include 15 acres of paved land adjacent to the water, a 40-foot deep-water 1,000-foot berth, on-dock rail access at the site and access to the Port’s five-track rail yard.

 

Oakland Truckers Threaten Work Stoppage Over Emission Rules

A motor carriers’ petition in which companies warn of a general work stoppage at the Port of Oakland has been delivered to Governor Jerry Brown. Local truckers propose a shutdown of all cargo movements at the port should the California Air Resources Board (CARB) not be forthcoming with requested relief from the next phase of state emissions controls.

Motor carriers at the port comprising the West State Alliance sent a petition to CARB condemning last year’s decision not to adopt proposed amendments to the drayage truck rule. Of particular concern is the Phase II regulation that mandates compliance with stringent standards for NOx (nitrogen oxide and dioxide) reduction in diesel exhaust starting in 2014. This measure affects some 4,400 local drayage trucks, or approximately 75 percent of the total port fleet, according to local authorities.

Port truckers say they are prepared to assume the cost burden of purchasing filters for 2004-2006 engine model trucks required under Phase I of the drayage rule, but only if they are assured these trucks will remain legal until 2020.

Spokesmen for West State Alliance said that the proposal to extend the NOx emissions deadline an additional six years, from 2014 until 2020, was exactly the provision shot down by CARB in its decision to leave the schedule as it is. This now leaves port truckers with only a very short window of emissions compliance before having to incur expensive NOx equipment upgrades.

 

Industry Analyst: West Coast Ports to Maintain Importance

While labor costs and green initiatives may be making West Coast ports less dominant in the coming years, they are hardly at risk, said a prominent industry analyst.

The escalating price of fuel trumps almost every other ocean carrier concern, said Dr. Walter Kemmsies, chief economist for Moffat & Nichol. Ships will continue to make inbound calls to leading load centers here because of the huge resident populations, and then will push off under their own power with a little export cargo.

Speaking at the annual Ports & Terminals luncheon sponsored by the Pacific Transportation Association in Oakland last month, Kemmsies shared several other observations on The Turbulent ’10s.

Structural problems persist in the United States, as it struggles to come out of the past recession, he said. Ports and railways need more investment, but seem to have to come up with it themselves most of the time. The nation still lacks a transportation policy. China and India are the world leaders in this regard.

The tepid employment recovery in the United States has also been led by the private sector, with the federal government remaining concerned with stabilizing the housing and financial markets, said Kemmsies.

And what does that do for ‘consumer confidence?’ he asked. Even for those of us with good jobs, the will to spend is just not there. The companies we work for are also focused on cost control rather than spending.

Macro-economic trends will also define the next decade for shippers, said Kemmsies. As the need for raw materials ramps up, U.S. exporters may become a larger part of the solution.

This is a huge food-producing nation, he said. And it touches upon every imaginable aspect of world trade, including bio-technology. We have the water and forest products that many developing nations lack, and those resources, too, will be in greater demand.