Port of Oakland Faces Fresh Challenges

The Port of Oakland’s terminal operators had to deal with severe congestion and delays for much of the month of July and August, thanks to dockside labor disruptions and wildcat actions by independent truckers.

One of the Port of Oakland’s chief advantages, say industry analysts, is Oakland’s position as a leading export gateway on the West Coast. Photo by Joel Williams

By Patrick Burnson

Published: October, 2013

The Port of Oakland’s terminal operators had to deal with severe congestion and delays for much of the month of July and August, thanks to dockside labor disruptions and wildcat actions by independent truckers. But Chris Lytle, the Port of Oakland’s newly-appointed executive director, managed to get everyone back to work after negotiating with both sides of the issue.

Lytle, the former executive director of the Port of Long Beach, is scheduled to bring shippers up to date on the latest developments with labor relations and investment in infrastructure at a luncheon early this month. The event is to be staged as Scott’s Pavilion in Jack London Square on Thursday, October 3 and is sponsored by the California Trucking Association, the Pacific Merchant Shipping Association and Women in Logistics.

As reported in this space earlier this year, Oakland’s leadership was badly upended by a fiduciary scandal that resulted in the resignation of Omar Benjamin and his maritime director, James Kwon. "I know there are a lot of challenges here to deal with right away," said Lytle. "But Oakland has the resources and the transport advantages to deal with them."

One of the chief advantages, say industry analysts, is Oakland’s position as a leading export gateway on the West Coast. Given its proximity to California’s agricultural core, Oakland has long been regarded as the premier outbound port for perishables. "And we want that to only get stronger," said Lytle. "We are currently dealing with the Port of Stockton to establish regular barge service to bring goods out of the central valley. This not only gets trucks off the road, but also expedites shipping."

Lytle acknowledged, however, that the International Longshore and Warehouse Union is insisting on being compensated for barge moves, too. "It’s something that we are presently working on with the union," he said. "It’s a problem, but not an insurmountable one."

Coinciding with the start of Lytle’s tenure here, the Oakland Board of Port Commissioners unanimously approved a litigation settlement agreement with SSA Terminals, one of the port’s major long-term seaport tenants. The settlement involves four of the port’s seven marine terminals, and will create operationally the 3rd largest terminal on the U.S. West Coast. In terms of size and operational efficiencies, this new "mega-terminal" will be more in line with competing terminals, allowing the port to sustain and attract more maritime cargo.

This does not mean, however, that Oakland will necessarily repeat its major thrust to attract more inbound cargo calls. "At least not for the time being," said Lytle. "We know that our main attraction is for ag shippers to have a reliable partner. We are going to build upon that strength first before going after new carrier business."

Lytle also said that he would explore "sea/air" transport strategies using the Oakland airport as a shipping partner. "It’s an option that has not been evaluated recently," he said, "but one certainly worth considering."

 

Redwood City Hosts Association of Pacific Ports Centennial Conference

Delegates from ports and port-related businesses throughout the Pacific region joined together in Redwood City in August and were informed and inspired by a diverse lineup of expert speakers at the Association of Pacific Ports’ 100th annual conference, hosted by the Port of Redwood City.

Under the conference theme "Embarking on our Next 100 Years," delegates discussed recent successes and challenges at ports and built stronger partnerships with port leaders throughout the Pacific. The event was filled with valuable port-industry briefings, networking opportunities, entertaining events, an informative tour of the Bay Area’s commercial harbors, a look at the America’s Cup Village and a special 100th anniversary dinner gala to celebrate APP’s first century.

Meanwhile, the of Port of Redwood City has reported increased business. Total tonnage for all commodities moving across docks during the first half of fiscal year 2012-13 was 666,543 metric tons (MT), an increase of nine percent over the prior year. Imported sand and aggregates from British Columbia accounted for 444,060 MT, or nearly 67 percent of the tonnage for the first half of the fiscal year. This was more than a 20 percent increase in the amount from the same period last fiscal year.

Shipments of bauxite and gypsum from Australia and Mexico, although not large tonnages, added to the mix of inbound cargo. Due to a weak international market for scrap metal, exports of shredded scrap metal during the first half of FY13 totaled 132,009 MT, nearly 25 percent below the same period last fiscal year.

Thirty-eight vessels (24 ships and 14 barges) made calls during the first half of FY13 compared to 30 vessels (25 ships and 5 barges) during the first half of FY12.