PRSRT STD

U.S. POSTAGE
PAID
PERMIT # 558
PROVIDENCE, R

American Journal of Transportation

116 Court Street, Suite 5, Plymouth, MA 02360

Visit ajot.com for the most u p to date

conference & events information
Contact our service specialists for
information on our wide range of services.

• CU S TOM S BROK E RAG E

• FRE IG H T FORWARD IN G
• WARE H OU S IN G AN D D IS TRIBUT I O N
• CARG O IN S U RAN CE
• C O N S U LT I N G
1-888-612-6239 www.anderinger.com

DERINGER 5X1.01.indd 1
northeast ports 1/13/11 11:36:06 AM

export-import bank
NO. Am erica’s T RANSPORTAT ION & LOGIST ICS newspaper
American Journal of Transportation
ajot.com apri l 7 - 20, 2014 ISSUE #577

Walmart, Target leverage capabilities Jamaica signs deal

to serve diverse purchasing platforms for China-built cargo shipping hub
The Jamaican government has signed minister responsible for the development,
By Paul Scott Abbott, AJOT a preliminary agreement with one of as saying at a private signing ceremony
China’s leading construction companies last weekend.
As they look to cut costs and reduce consumers who prefer to order online. for the development of a controversial The government said that the project,
carbon footprint while swiftly serving con- In the summit’s closing keynote transshipment hub off its southwest coast, part of a larger logistics hub, would create
sumers across a growing address, Kevin Jones, Jamaica’s state information service said. 2,000 jobs during the construction phase
spectrum of purchasing Walmart’s vice presi- The framework agreement with and 10,000 jobs when it is completed.
platforms, the two largest dent of inbound trans- China Harbour Engineering Co(CHEC) “A project which does not harm the
U.S. importers are prov- portation, referred to seeks to develop the Portland Bight Pro- environment, and will improve people’s
ing the truth of the apho- “leveraging global best tected Area southwest of the capital, pop- living standards, must be explored,”
rism that imitation is the practices” to deliver ularly called the Goat Islands, which are Davies was quoted as saying, calling the
sincerest form of flattery. everything from pal- inhabited by insects and small reptiles and deal a “win-win situation”.
Logistics leaders lets to Sam’s Club covered with wild vegetation. The hub is being planned as an addi-
of Wal-Mart Stores Inc. warehouse stores to The area surrounding the islands tion to the existing port of Bustamante
and Target Corp., in “eaches” to Walmart. serves as a breeding ground for fish and in Kingston and is designed to facilitate
separate March 19 pre- com shoppers. other marine species, which has led to faster distribution of container cargo,
sentations at the Geor- And, from the ball- stiff resistance to the project from local mainly from China, throughout Jamaica
gia Logistics Summit, room floor, Steve Carter, environmentalists. and the rest of the Caribbean region.
indicated that they look Target’s director of “We treasure the preservation of the CHEC is a global contractor with 50
at and often imitate the global logistics planning environment as much as any other group, overseas branches and is a subsidiary of
practices of each oth- and strategy, challenged and we are concerned about the human China Communications Construction Co
er’s company in chart- Jones to concede that beings and the plight of poverty, and the Ltd (CCCC).
ing their supply chain such leveraging includes impact which that has on the environ- The Chinese company has estimated
courses. And they also imitation of competitors. ment,” the Jamaica Information Service that the project will take five years to
keep a close eye on such Kevin Jones, Wal-Mart Stores In a preceding (JIS) quoted Omar Davies, the cabinet complete. (Reuters)
firms as Sears Holdings Inc. vice president of inbound breakout panel presen-
Corp. and Amazon.com transportation, looks to leverage tation, Carter – who,
Inc., although, unlike global best practices. (Photo by Paul like Jones, happens to
Amazon.com, neither
has any drones... yet.
Scott Abbott, AJOT) be a graduate of the
U.S. Military Academy at West Point
XPO Logistics completes acquisition
When eccentric British cleric Charles
Caleb Colton penned
– focused on some of the toughest chal-
lenges faced by today’s
of Pacer International
his famous imitation mega-retailers. XPO Logistics, Inc. announced that in creating a detailed integration plan
aphorism in the early In addition to high it has completed its previously announced that we start executing today, along with
19th century, he surely fuel costs and deficient acquisition of Pacer International, Inc. immediate cross-selling to our combined
wasn’t talking about U.S. transportation infra- (“Pacer”) in a cash and stock transaction customer base. We welcome our new
21st century logistics, structure, Carter honed valued at approximately $335 million. employees, customers, rail partners and
but his words were in on labor and regula- The company financed the cash por- carriers to XPO.”
called to mind in the tory concerns, as well as tion of the acquisition and related fees and Daniel Avramovich, former chief
closing sessions of serving the omnichannel expenses through a combination of cash executive officer of Pacer, has assumed
the Georgia Logistics marketplace. on hand and a portion of the net proceeds new responsibilities as XPO’s senior vice
Summit, hosted March Target, Carter said, of its recent $414 million public offering president of strategic development. Mr.
18-19 at the Georgia is “hoping for the best of common stock. Avramovich will help to align the compa-
World Congress Center and planning for the Bradley Jacobs, chairman and chief ny’s national and multi-national custom-
in Atlanta by the Geor- worst” regarding the executive officer of XPO Logistics, said, ers with an expanding base of capacity
gia Center of Innova- impending June 30 “Our acquisition of Pacer makes us a providers, including major rail relation-
tion for Logistics. deadline for the Inter- major player in the fast-growing inter- ships, and will serve on the company’s
The fact is that national Longshore modal sector, and the largest intermodal acquisition team. He reports directly to
Walmart and Target and Warehouse Union provider in cross-border Mexico. We CEO Bradley Jacobs.
face similar tests as to agree upon a new now have a strong platform that fits our Jacobs said, “We’re excited to tap
they advance programs Steve Carter, Target Corp. director labor contract covering customer-centric culture and can support into the decades of industry experience
to open smaller stores of global logistics planning and West Coast port work- considerably more scale as we continue that Dan brings to XPO. Dan has had
in urban markets and strategy, says today’s mega- ers. Contingency plans to grow our multi-modal services to ship- success in every major area of transporta-
aim to serve the bur- retailers face many challenges. (LEVERAGE – contin- pers. Over the past few months, every tion logistics, including contract logistics,
geoning number of (Photo by Paul Scott Abbott, AJOT) ued on page 18) functional area of XPO has been involved (ACQUISITION – continued on page 22)

MEDITERRANEAN SHIPPING COMPANY (USA) INC.

WE BRING THE WORLD CLOSER
as agents for MSC Mediterranean Shipping Company S.A.
(212) 764-4800, NEW YORK
www.mscgva.ch
2 American Journal of Transportation ajot.com

Port of Boston looks to get Northeast Ports 2014

a bigger slice of the pie
Massport’s Conley Terminal in the Port of Boston is its larg-
est container facility. But the port is boxed in by much larger
players, such as the ports of Montreal and Halifax and the
real driver on the East Coast, the Port of New York/New
Jersey. But in this new era of bigger ships and bigger alli-
ances can a medium sized port get a bigger slice of the pie?

By George Lauriat, AJOT

The Port of Boston has always had million Teus) to the southeast. To a lesser
a prominent role in the transportation degree the ports of Norfolk, Virginia; Bal-
system of the Northeast. But the cur- timore, Maryland; and Philadelphia,
rent challenge for the Massachusetts Pennsylvania can be added to the list
Port Authority (Massport) is how to as the competition for slots on con-
keep the Port relevant in an era that tainerships is closely tied to vessel
An APL containership docked at Maher Terminal in the Port of NY/NJ
increasingly emphasizes the impor- rotations. In comparison, Massport’s
tance of mega containerships and Conley Terminal handled just under
hub port calls. The problem is 200,000 Teus, a good number Port round up: New England’s ports
partly one of geography, as for the Port but relatively small
New England and the North- compared to regional rivals. need to expand
east in general, aren’t as large The real question is how
nor growing as fast as other big is the New England/North- Pressure throughout the supply chain could force secondary
regions such as the Southeast. east market, and secondarily, ports to play major roles.
Further, the greater New York how much of a slice do the
metropolitan area is the largest market on other three ports take? The Port of Hali- By George Lauriat, AJOT
the US East Coast, and naturally, for ship fax and Nova Scotia have a relatively
deployment purposes most planning starts small population, and most of the con- A new reality is setting in among pier head.
there and works outward accordingly. tainers are destined inland to Canadian port and public officials in the Northeast:
metropolitan regions (nearly all of which expansion needs to happen. Expansion Driving Forward
Unboxing the Box lie within 100-miles of the US border) or isn’t something that’s been talked about The Port of Davisville, Rhode Island,
The Port of Boston, New England’s the US Midwest. Although Halifax has much in the Northeast, as years of dwin- is a good example of the importance of a
largest port is “boxed” in. There is no deny- always had close business ties with New dling results have sapped interest in the niche port to the region’s supply chain.
ing the impact of geography: there is the England (Eimskip America has service port sector. But from Albany, New York The Quonset Development Corporation
Canadian Port of Halifax (442,000 Teus) connecting Portland, Maine and Halifax), to Portland, Maine, and all the many (QDC) runs the 3,207-acre industrial park
to the northeast, the Port of Montreal (1.4 the main markets are inland. port calls in between, it’s clear that very and leases space to nearly 175 compa-
million Teus) to the northwest, and the The Port of Montreal, a thousand shortly the region’s stressed supply chains nies. Over the past few years some $100
mega-Port of New York/New Jersey (5.47 (SLICE – continued on page 8) will have to be addressed, starting at the (EXPAND – continued on page 6)

COVERING ALL COASTS

Providing stevedoring & terminal operations
in more than 42 U.S. ports and 80 locations

Baltimore New Orleans

Baton Rouge New York
Bayonne Newark
Beaumont Norfolk
Boston Oakland
Brunswick Olympia
Camden Philadelphia
Charleston Port Arthur
Concord, CA Port Canaveral
Coos Bay Port Everglades
Corpus Christi Port Hueneme
Crockett Portland, ME
Davisville Providence
Freeport San Diego
Galveston Savannah
Gulfport Seattle
Houston Sunny Point
Jacksonville Tacoma
Long Beach Tampa
Longview Vancouver, WA
Los Angeles Wilmington, DE
Miami Wilmington, NC

PortsAmerica.com
We’re putting $4.3 billion
to work for you.
The Port Authority of NY and NJ is committed to increasing productivity for your
business, committing every dollar to getting your goods into and through our port
as quickly and efficiently as possible. Over the next ten years, we are:

Raising the Bayonne Bridge, a $1.3 billion project that will be completed
in 2015, to provide additional airway draft for larger vessels entering our harbor.
Building a new Goethals Bridge, a $1.5 billion public/private project
that modernizes a venerable route of commerce.
Enhancing port access, a $1.5 billion investment that includes expanded
roadway capacity and greatly modernized intermodal rail service.

To learn more about our focused-forward investments in our entire infrastructure,

select the Port Redevelopment tab at www.portnynj.com
4 American Journal of Transportation ajot.com

Canadian domestic shipowners

air concerns over projected
free trade deal with EU
Leo Ryan, AJOT
Though they view a planned The Committee has invited
free trade agreement with the various industries to comment on
European Union as generally posi- the future impact of the Canada-
tive for Canada, inland Canadian EU Comprehensive Economic
shipowners have expressed strong and Trade Agreement (CETA)
concern over the potential impact in principle announced last fall,
on maritime feeder services. with ratification hoped by 2015.
“Aspects of its implementa- Final details on outstanding
tion have potentially unintended issues are still being negotiated.
negative consequences for our “Although the details are
part of the marine sector, and really not yet fully understood by
consequently the resilience of our industry, Transport Canada
the Canadian supply chain,” officials have informed us that
Hapag Lloyd’s Berlin Express calling at the Port of Halifax (photo by Steve Farmer) Robert Lewis-Manning, presi- maritime feeder services are part of
dent of the Canadian Shipown- the agreement,” Lewis-Manning
Canadian ports consolidating markets ers Association (CSA), affirmed
in a presentation to the Stand-
said, adding: “As a Canadian-flag
fleet with only a shortsea shipping
ing Committee on International market to trade in, we believe that
Leo Ryan, AJOT Trade of the House of Commons. our sensitivity is much higher than
international fleets that can seek
For Canada’s ports on the St. Lawrence River, the Gulf of St. Lawrence,” Michael Fratianni, new other markets globally.”
the harshest winter in several decades has posed chief executive of Montreal Gateway Terminals He noted earlier that under
challenging but not insurmountable problems. On Partnership (MGT), the biggest container cargo the current Canadian coasting
the Great Lakes, various ports were in winter operator at the Port of Montreal, told AJOT. regime, trading from Canadian
recess until the St. Lawrence Seaway opened “The channels leading to Montreal have port to Canadian port can only be
in late March, so stepped-up icebreaker efforts been pretty open,” said Fratianni, who suc- carried out by Canadian registered
were expected to limit normal traffic flows to ceeded retiring chief executive Kevin Doherty vessels “unless there is no Cana-
only a few weeks. in the strategic position on March 31. dian shipping capacity available
Smooth flow of shipping 12 months In addition, he pointed out, the ships at a reasonable value. This regime
a year is especially vital for the Port of of the leading global carriers engaged in has worked relatively well, pro-
Montreal, a key North American gate- the St. Lawrence trades are powerful and viding services to shippers when
way for North Atlantic container opera- have ice-strengthened hulls. needed while growing the Cana-
tors. And relatively few delays have “In fact,” Fratianni added, “our vol- dian marine industry.”
been reported, with most caused by the unusually umes are a little better than last year in the first two The 86 vessels in the CSA
heavy ice coverage in the Gulf of St. Lawrence. months.” Robert Lewis-Manning – (CONCERNS – continued on
“The real navigational problems have been in (CONSOLIDATING – continued on page 5) president of the CSA page 20)

GUTEN TAG
TO ALL OUR PARTNERS
IN BERLIN
High-efficiency intermodal platform. Strategically located on the shortest route between
Europe and North America’s industrial heartland. Offering access to 40 million consumers
within one trucking day, and another 70 million within two rail days.
No wonder the Port of Montreal is connecting
with partners across the globe.
port-montreal.com | +1 514 283-7011
apri l 7 - 20, 2014 northeast ports 5

(CONSOLIDATING – contin- eficial effects of millions of dol- fax, today accounting for 46%,
ued from page 4) lars invested in infrastructure. while European trade accounts American Journal of Transportation
Richard Piechowiak, oper- Adding to the positive for 41%. is published by Fleur de Lis Publishing, Inc.
ations manager at Termont trend is the advent of larger No responsibility is assumed for unsolicited manuscripts.
Montreal, operator of the Mai- containerships coming to the
Chinamax Vessel Subscriptions:
sonneuve Terminal, commented deepwater Nova Scotia port. Launches New Era at Domestic.........................................................................................$138.00
in similar terms. “The flows Last July, Halifax welcomed St. Lawrence Port Canadian.........................................................................................$187.00
have been quite good on the the Berlin Express, a 7,500- On the north shore of the St. International...................................................................................$298.00
river. There have been some TEU vessel operated by Hapag- Lawrence River, a new era has phone: (508) 927-4188; fax: (508) 927-4189
delays, but not a significant Lloyd as part of a new service entered for the deepwater Port George Lauriat.................................................................. Editor-in-Chief
number. The weather at sea has in the G6 Alliance between of Sept-Iles on the St. Lawrence Robert Kirk.................................... Managing Editor/ Print Production
been more of an issue.” Asia and North America via the River after handling a giant Eric Nelson..................................................... Web Manager/ Ad Design
“We are still dominant on Suez Canal. It was the biggest Chinamax bulk carrier which Carole Lauriat..........................................Office & Circulation Manager
the East Coast in the container containership to call on Cana- loaded more than 300,000 tonnes Peter Buxbaum............................................... Northeast Correspondent
trade with northern Europe,” da’s East Coast. of iron ore destined for a Chi- Karen Thuermer....................Mid-Atlantic & Midwest Correspondent
said Tony Boemi, Vice-President Container traffic, which rep- nese steelmaker. “This unprec- Paul Scott Abbott..........................................Gulf region Correspondent
of Growth and Development for resents nearly two-fifths of the edented operation puts us on the Jennifer Kimble ...............................................Southeast Correspondent
the Montreal Port Authority. port’s overall tonnage, rose by global map as a unique gateway Stas Margaronis..............................................California Correspondent
The U.S. Midwest and North- 8.3% in 2013 to 442,173 TEUs, in North America for the largest Leo Quigley........................................Pacific Northwest Correspondent
east markets contribute more than continuing a long climb back bulk shipments,” says Pierre C. Leo Ryan.............................................................. Canada Correspondent
one quarter of Montreal’s over- from the pre-recession levels. Gagnon, President and CEO of Paul Richardson................................................... Europe Correspondent
all container business. Excellent Karen Oldfield, president and the Sept-Iles Port Authority.
intermodal connections and ceo of the Halifax Port Authority, William Bourbon........................................................................Publisher
The self-unloader CSL
competitive ocean services with considers that Halifax is beginning Spirit of Canada Steamship Lines Cate Avolio................................................................. Associate Publisher
the deep inland port in North to penetrate the market areas it has carried out a shuttle service in the phone: (732) 322-3736......................................email: cavolio@ajot.com
America are key elements in the been targeting. Bay of Sept-Iles, transshipping Eric Peterson...................................................................Marketing & Sales
port’s success. In recent years, container the iron ore onto the CSB Years, phone: (508) 927-4188............................................. email: eric@ajot.com
Last year, the Port of Mon- cargo moving on Asian trade the Chinamax vessel owned by
treal handled 28.1 million metric routes, chiefly through the Suez Nianhua Shipping. The latter Ed Andrews......................................................................Europe Sales Rep
tons of cargo, slightly less than Canal, has emerged as the domi- (CONSOLIDATING – contin- phone: +44 7880 702227.............................. email: ed@duvelmedia.com
in 2012. Container volume nant factor for the Port of Hali- ued on page 6)
amounted to 1,356,810 TEUs,
nearly one percent above 2012.
In a recent announcement,
the Port of Montreal indicated
that CanEst Transit Inc., a new
company founded by La Coop
fédérée, Transit BD Inc. and
MGT Holdings, will create on
port territory a facility that will
specialize in the containeriza-
tion of agricultural products des-
tined for local and international
markets. It is scheduled to open
in the second quarter of 2014.
Logistec provides
“The CanEst project fits in
perfectly within our ‘port-plus’ high quality cargo-
strategy to provide value-added handling services
services to port users and to to marine and
attract new clients,” said Sylvie industrial customers
Vachon, President and CEO of through a strong
the Montreal Port Authority. network of strategi-
“This project will increase our cally located facilities
capacity for handling bulk prod-
in the Great Lakes,
ucts. Users will benefit from
the port’s strategic location on the St. Lawrence
the St. Lawrence River to serve River and on the
international markets.” Eastern Seaboard of
CanEst has signed a long- North America.
term lease with the Montreal
Port Authority to operate out
of the former Grain Elevator
No. 3 annex. Once modern-
ization work at the facility is
complete, CanEst will receive
by rail and truck bulk products
from Quebec, Ontario, Western
Canada and the U.S. Midwest.
The company will be able
to store, clean, sift, package and
containerize agricultural prod-
ucts, as well as handle bulk or
bagged grain and by-products.
Once containerized, agricultural
products will be delivered by
truck to local markets or directly
to the Port of Montreal’s con-
tainer terminals for onward tran-

THE THINGS WE DO
sit by vessel to the international
markets that the port’s container
lines serve.
In this regard, Montreal
port officials consider the facil-
ity will offer an added asset for
increased maritime trade with in-house
partners, service providers,
Europe under the tentative Can- At Logistec, our network of
ada-European Union free trade
an d po rt fac ilit ies en ab les us to manage our customers’
agreement (CETA) that could be experts
d reliable manner.
ratified by late 2015. cargoes in a cost effective an
For its part, Halifax, Can-
ada’s second largest container
port on the East Coast, is con-
veying a bullish outlook in
response to such elements as www.logistec.com
various mega-projects in Atlan-
tic Canada, expanding container
activity, the prospect of free
trade with Europe, and the ben-
6 American Journal of Transportation ajot.com

Cautious optimism at opening

of St. Lawrence Seaway
Leo Ryan, AJOT
Marine industry execu- a significant role in exporting
tives were cautiously optimistic Canada’s bumper grain crop to
when the 56th navigation season overseas markets.”
of the St. Lawrence Seaway The Algoma Equinox is
opened on March 28th with the the first of eight Equinox-class
transit of Algoma Central Cor- ships that are being purpose-
poration’s newly built ship, the built for trading in the St. Law-
Algoma Equinox, through Lock rence Seaway.
3 of the Welland Canal at St. “The Algoma Equinox car-
Catharines, Ontario. ries more cargo, sails faster, con-
The 2014 season on the sumes significantly less fuel and is
North American waterway got the first Great Lakes vessel to be
off to its latest start since 2009 as
a result of the worst ice conditions
in several decades. Canadian and
equipped with a scrubbing system
that virtually eliminates sulphur
oxide from its emissions.  These
ABILITY
U.S. Coast Guard icebreakers advancements will benefit com-
worked feverishly to clear chan- munities throughout the region FMT > ABLE > FLEXIBLE > TRADE [ is the Link ]
nels for shipping through Seaway and also ensure that our custom-
locks and on the Great Lakes. ers – North American industries Albany, NY Hamilton, ON Tampa, FL
“Algoma Central Corpora- and farmers – remain competi- Burns Harbor, IN Lake Charles, LA Thorold, ON
tion’s fleet renewal is a leading tive on the global stage,” said Cleveland, OH Milwaukee,WI
example of the unprecedented Algoma Central Corporation’s Eastport, ME Port Manatee, FL
level of investment that is hap- President and CEO Greg Wight.
pening throughout our navi- In concert with various Delivering a higher standard
gation system,” said Terence Canadian domestic and ocean fmtcargo.com | 704.714.4644
Bowles, President and CEO of carriers investing C$1 billion
the SLSMC. “The Seaway alone in new vessels, the SLSMC
is spending almost C$500 million is investing C$395 million
on modernizing its infrastructure between 2014 and 2018 to revi- (CONSOLIDATING – contin- monopoly of the Canadian Wheat (EXPAND – continued from
– the biggest transformation in talize its locks and structures.  ued from page 5) Board. However, market adjust- page 2)
five decades.” Likewise, the U.S. Saint departed on December 15 with ments were expected to generate million in Federal Funds (mostly
Bowles forecast that cargo Lawrence Seaway Development the cargo for Wuhan Iron and a positive impact in 2014. TIGER Grants) have been used
volume this year will exceed 38 Corporation is mounting a US$92 Steel Company (WISCO). On the agenda for 2014 was to upgrade the rail lines, roads,
million metric tons versus just million effort over a comparable The iron ore cargo totaling the plan to initiate work for Phase bridges and piers. Among them
over 37 million tons in 2013. timeframe. Corporation Admin- 302,264 tonnes came from the Two of the On Course for 2020 is North Atlantic Distribution
“The U.S. and European istrator Betty Sutton said, “The Lac Bloom mine of Cliffs Nat- strategic plan. This includes the (NORAD), which is a vehicle
economies are improving, and significant investments in Seaway ural Resources situated in the re-building of quay 13 and the processor. With NORAD the Port
this trend gives us reason to be infrastructure are positioning the Labrador Trough. establishing a new terminal. of Davisville, has become one of
optimistic,” Mr. Bowles said, Great Lakes St. Lawrence Seaway With annual throughput of Meanwhile, the largest the top ten auto ports in the coun-
adding: “We also expect to play System for future growth.” nearly 28 million tonnes, Sept- Canadian port on the Great try. Last year the 150-acre facil-
Iles is North America’s leading Lakes, Hamilton is strengthen- ity had 173,295 vehicles arrive
port for mineral products. A ing its position as the leading via ship and another 33,497 cars
multi-user, deepwater terminal Canadian maritime gateway in arrived by rail (the port has on
currently under construction is the region. the dock rail). On March 14th
to begin accommodating China- “The agri-food sector con- NORAD set a single day record,
max and other vessels by early tinues to be an area of strength importing 4,266 vehicles. The
this coming summer. emerging from our diversifica- auto manufacturers using the port
For its part, the Port of tion strategy,” underlines Bruce include top end automakers like
Quebec is continuing to handle Wood, President and CEO of the Volkswagen, Subaru, Porsche,
large volumes of bulk cargo – Hamilton Port Authority. Ford and Bentley.
totaling 27 million tonnes in 2013. Total cargo of just over 10 Last year was the fourth con-
As expected, the Port of million tonnes was on par with secutive record-breaking year for
Trois-Rivères recorded a decline the two previous years. And port the vehicle processor. Addition-
in traffic of about 20% in 2013, officials say they are optimistic ally, 1,185 tons of project cargo
handling 2.7 million tonnes. for 2014, given the port’s prox- moved over the facility. A mobile
Main contributing factor was imity to a large manufacturing crane was added last year.
(L to R) Terence Bowles and Betty Sutton, heads of the Canadian and the drop in grain cargo follow- sector in Ontario showing signs Business is continuing to
US Seaway agencies (Photo by Kevin Richard Hotte) ing the termination of the export of gaining traction. grow for the port as last week
the first shipment of Hondas
arrived at the facility. In April
2013, Honda announced it
would ship 25,000 cars through
the port this year.
Port Reorganization
in Connecticut?
In neighboring Connecti-
Single Source Solutions “S3” cut, the three ports, New Haven,
New London and Bridgeport, in
Learn how our S3 can empower your intermodal recent years, have been under
transportation program. It’s the Single Source performing, and there are moves
Solution that will pay dividends for you from afoot to try and reorganize the
ports and rails to warehouse and distribution ports on the State level.
According to reports, two
solutions nationwide. pieces of legislation linked to
LET’S CONNECT. 855-4ROADONE proposals submitted by State
One Kellaway Drive (855-476-2366) Rep. Gail Lavielle (R- Wilton,
Randolph, MA 02368 www.roadone.com Norwalk, Westport) cleared the
General Assembly’s Transporta-
tion Committee that would lead
to a reorganization of the ports
Solutions That Connect administration.
One article of legislation
Corporate Headquarters

• Domestic Intermodal Trucking Solutions Regional Offices

Service Centers would amend the Connecticut
• International Intermodal Trucking Solutions Northeast Region State Constitution limiting the
• Container Terminal Solutions Midwest Region use of moneys contained in the
• Regional Dedicated Truckload Solutions South Region
Special Transportation Fund to
• National Transloading, Warehousing and Distribution Solutions
West Region
transportation-related projects.
The other article would create
a statewide Port Authority to
Reliability Tenacity Safety Integrity Loyalty (EXPAND – continued on
page 8)
apri l 7 - 20, 2014 northeast ports 7

Nor’easter: the fickle winds of recovery Bakken crude beckons outlet

Officially the Northeast’s been out of the recession more than five years Two Northeast ports are make the crude, such as the Alberta
but economic recovery from the “Great Recession” is far from complete directly impacted by the Bakken tar sand oil, easier to ship; but
oil field’s need for port access. Albany County issued a morato-
and questions still remain. Business is better, but full recovery, a recov- The Bakken oil needs to be rium putting the project on pause.
ery approximating the years leading up to 2008, is still elusive. There is a refined, and one of the few large Global is also seeking permits for
growing confidence in the numbers but what’s in store next could be as facilities able to handle the crude another facility in New Windsor,
fickle as the weather during a New England spring. is Irving Oil’s refinery in St. New York about 90-miles south of
John. Both the ports of Albany the Port of Albany.
“The only function of economic forecasting is to make astrology look and South Portland in Maine The Port of South Portland
respectable,” John Kenneth Galbraith, Harvard economist. have the potential to handle the Maine is also deeply involved
crude, but the movement is not with the issue of moving Alberta
By George Lauriat, AJOT without controversy. oilsands crude. The Port of
Roughly 400,000 bpd of the South Portland has been an oil
Officially, the Northeast states left the “Great The Federal Reserve Bank in their “snapshot” total 950,000 bpd Bakken pro- port since World War II. The
Recession” behind over five years ago, but like the of the New England Economy in December of duction runs to the East Coast. port has been a major gateway
recent spring Nor’easter reminded everyone in the 2013 summed up the economic situation, “While Thus far Albany remains the pri- for imported oil connected by
region, the calendar is more of a guide than a mete- New England’s economy continued to make mod- mary US rail outlet. It’s estimated the Montreal Portland Pipeline,
orological reality. erate advances in 2013, the region experienced that around 20-25% of the railed (a subsidiary of three oil com-
Qualitatively, since the end of the recession smaller gains in economic activity than the nation. crude moves via Albany, easily panies Shell, Suncor and Impe-
in 2010 the GDP (Gross Domestic Product) of the Labor market indicators reveal slower growth in making it the main railhead. rial Oil) to Montreal, Canada.
individual New England States has risen every employment regionally than nationally and smaller The Bakken oil moves to However, the dynamics of this
quarter, as has the per capita personal income, improvements in unemployment. Home prices in Albany via the CSX rail lines to relationship changed with the
a key statistical confirmation of the end of the the region started rising again on a year-over-year Global Partners facilities where advent of the oilsands devel-
recession. Further, according to a recent report by basis in early 2013, following roughly 6 years of it is transferred to barges or opment in Western Canada.
the Bureau of Labor Statistics, “New England’s declines. The housing recovery began earlier, in ships. Global has a New York Recently, Canada’s National
unemployment rate declined to 6.7% in January… mid-2012, for the U.S. as a whole. The Massachu- state DEC (Department of Envi- Energy Board approved, after
Regional Commissioner Deborah A. Brown noted setts and Vermont economies led the region along ronmental Conservation) permit significant debate, the reversal
New England’s jobless rate a year ago was 7.1%,” most indicators in 2013.” for 160,000 bpd (1.8 millions of Enbridge’s Line 9B to bring
again good news. While the lag in recovery relative to the US as gallons). Another Albany com- oilsands east to Montreal. Link-
So here in the first quarter of 2014, why in the a whole is evident, the reasons are not always clear. pany, Buckeye Partners also has ing the two pipelines would
Northeast doesn’t the recovery feel like a recovery? Even in the boom years the New England economy 130,000 bpd (billion gallons a enable oilsands crude to South
What unique regional components make the eco- was a mystery and there are many contradictions in year) facility for the crude oil. Portland for export. However,
nomic temperature feel like it is missing the wind the post-recession economy of the region. The Port of Albany’s oil a proposal on restrictive new
chill factor. The region is home to twenty-eight of the For- boom hasn’t come without con- waterfront development that
tune-500 businesses yet the business community troversy. Both Global and Buck- would have hamstrung the
A Northeast Recovery has often complained that government regulation eye are facing more scrutiny from pipeline project was narrowly
Part of the problem in the post-2009 economy and taxes inhibit business growth and creation. New York regulators as the oil defeated. But last November the
is determining what constitutes a “New England” or The region has long been a recipient of the Federal shipments continue to ramp up. city council passed a six-month
“Northeast” economic recovery. At what level, with government’s largesse, particularly with defense The real controversy may be over ban on building new structures
what benchmarks, should a New England or North- spending. The region has annually over $62-bil- the heavier Alberta tar sands oil. related to marine borne oil. The
east economy be performing at now and expected to lion in direct and indirect defense related spending Global proposed adding a heating (BECKONS – continued on
perform, over the next two or three years? (FICKLE – continued on page 12) facility and other infrastructure to page 12)

Strategically Located Year-Round Port

GERALD
Kathy M.D. JENNINGS,
Sheehan, MAYOR
Mayor ROBERT F. CROSS, CHAIRMAN
ALBANY NY PORT COMMISSION BOARD

Specializing in On Dock Heavy Lift Rail

Ample Open Storage

steel products, 300,000 Square Feet of Sprinklered Inside Storage

Served by CSX & Canadian Pacific Railroads
woodpulp, sugar, Reliable and Experienced Stevedoring
Pulp & Paper Users/Producers Located
wind energy, Within Close Proximity

heavy lift, project &

Fumigation Service On-Site
Super Sacking & Bagging Operation On-Site

overdimensional cargo Storage Tanks Available for Liquid Bulk Products

Acreage Available for Development

FOR MORE INFORMATION CONTACT:

Albany Port Stevedore and Business Development &

District Commission Terminal Operator Marketing Manager

www.PortofAlbany.us 518/463-8763 • Fax: 518/463-8767

rhendrick@portofalbany.us
Federal Marine Terminals, Inc.
518/463-0237 • Fax: 518/463-0238
Tony Vasil
518/463-8763 • Fax: 518/463-8767
bring@fedmar.com tvasil@portofalbany.us
8 American Journal of Transportation ajot.com

(SLICE – continued from and a private study, it was con- depth and that means dredging. (EXPAND – continued from tional private sector investment.
page 2) cluded that there was, as Hadden Secondly, the berth and cranes page 6)
miles inland, is the closest put it, a “bigger slice of the pie” must be able to service the ship. develop, promote, and manage Port of Albany’s
major seaport to the Midwest to be had for the Port of Boston. Finally, the infrastructure from Connecticut’s three deep-water location
and might shift more con- Essentially, the question is how the yard outward must be able to ports in Bridgeport, New Haven The Port of Albany, New
tainers to and from Northern to get another 200,000 TEUs in handle the traffic. and New London. York anchors an interesting
Europe than any North Ameri- calls at the Port. Massport after fourteen At the moment, of the three position in the Northeast. The
can port. Finally, the mega-Port There are more than a few years of trying has an “approved ports, only New London is ready city has long been straddled as
of New York/New Jersey is not moving pieces for the Port to dredging plan” that will bring for any new business as the an East-West rail link between
only a major gateway for traffic increase their market share from the outside Channel (Broad channel is dredged for the sub- New England and the Midwest.
moving to inland destinations, the surrounding ports, particu- Sound North Entrance Channel) marine base. The Hudson River flows south
but a major consuming area unto larly the Port of New York/New to 51-feet and President Roads Connecticut is also invest- some 150-miles, connecting
itself. It is arguably the largest Jersey. In an era of mega-ships to 47-feet. The berths are also ing $8 million in infrastructure Albany, not only to the sea but
“New England” port as it draws and mega-ports, Massport is dredged two-feet beyond their funds to the State’s freight rail- to the New York City metro-
well over 200,000 TEUs out of embarking on addressing the 45-foot approval to match the ways. The funds will go to four politan area. Most of the freight
the region, as the congestion question of where “medium 47-feet at President Roads. The railroads: flowing through the port is neo-
on Route-95 would amply sug- sized” ports will fit in the rota- dredging plus a 10-foot tide, • New England Central Rail- bulk/break bulk (scrap metals for
gest. But the real question of tion equation. How you keep the while not ideal, should give the road - $3,579,230 to upgrade Turkey) and some project (elec-
how many boxes actually move larger vessels calling is a chal- port adequate depth for the next their mainline track between trical components for Algeria),
in and out of a region that has a lenge not only for Massport, but generation of containerships New London and the Connecti- amounting to around 390,000
GDP similar to the Netherlands, for smaller ports nationwide that that fully laden draw around cut/Massachusetts state line to tons and sixty ship calls annually
with around thirteen major urban fear being eclipsed by the drive fifty feet. The dredging plan accommodate 286,000-pound at the APDC (Albany Port Dis-
centers and a relatively high per for larger ships with reduced has made it into the bill before rail cars. trict Commission facilities). The
capita income is hard to answer. port calls at hub ports. Congress, which is a victory of • Providence and Worcester port’s been overhauling the facil-
Is the New England/Northeast There are some very straight- sorts by itself. Railroad - $759,395 to reha- ities, including the Rensselaer
market a million TEU region? forward selling points for a ship Another major bullet point is bilitate 26 miles of the Norwich Wharf project, and the APDC
Possibly with a number of cave- call in a market like New Eng- the $30-million “dedicated truck branch line between Plainfield is also adding a mobile crane to
ats, but from the Port of Boston’s land. There is considerably less haul road” is now out for bid. The and the Massachusetts state line their equipment. The $7.8 mil-
perspective there are more TEUs landside traffic congestion that dedicated truck route will wind • Naugatuck Railroad  - lion Rensselaer Wharf project
to be gained than the current enables the trucks to make 30 through the adjacent property $1,649,936 on the state-owned which began last year (located on
200,000 TEUs throughput. minute turn times. Equally, the [Coastal Oil property purchased Torrington Line between Water- the opposite side of the Hudson)
Maritime Port Director berths also enable quick turns in 2008) and two other sites that bury and Torrington will replace the old wooden
Deborah Hadden, who last Sep- and little waiting. Massport has acquired for ter- • Central New England Railroad wharf with a concrete structure,
tember had the “interim” tag However, as with all smaller minal expansion. The road will - $2,464,300 for track and grade opening up the Port to more com-
removed from the title, explained ports, picking a few contain- take the trucks off of the neigh- crossing signal infrastructure binations of vessel loadings and
a little bit of the thinking inside ers in and out is inefficient and borhood lined East First Street improvements installed between increase cargo capacity.
the Bay State’s bonded agency. productivity compared to larger in South Boston and smooth out Hartford and Bloomfield on the The Port was recently dubbed
She told the AJOT that the ports handling larger ships is truck flow by linking it directly state-owned Griffin Line. in the press as the “Houston of
“existing footprint is capable of low. Also moving equipment to Summer St. Hadden thinks the The State annually handles the Hudson” (see related article
handling 500,000 TEUs” more back to places of greater need dedicated truck haul road project 8.5 million tons of freight over on page 7) as the flow of Bakken
than double the current through- can be an issue. will be completed in two years. the 625-miles of rail and the oil through the port amount’s to
put. In both an Army Corp of It is a complex problem to Originally, when the “Coastal investment in the infrastructure 20%-25% of the Bakken rail-
Engineers study (necessary to address, but there are some fun- Oil” property was purchased, it would help shift freight from (EXPAND – continued on
justify permitting for dredging) damentals. The first is channel (SLICE – continued on page 10) road to rail as well as attract addi- page 14)

Revolutionary Change
is underway in the
Port of Philadelphia

Facilities
• 250,000 sq. ft.
• Central Station security and wet
sprinkler systems
• 22’ ceilings with both rack and bulk
storage
• 21 doors

Operations
• Import/Export Specialists
• Dry goods and specialty food
distribution
• Order fulfillment and pick/pack
• All types of transportation resources

Customer Service
• E-Tracker inventory management
• Online inventory visibility
• Customer service representative for
each account
More Depth, More Facilities, More Services

Watch the PRPA online video for

more details at www.philaport.com

Philadelphia Regional Port Authority

http://www.philaport.com
apri l 7 - 20, 2014 northeast ports 9

Knows Its Territory

Mediterranean Shipping Company,

the second largest container shipping company
in the world, provides a special regional capability
when shipping around Europe, the Mediterranean
and the Baltic. Understanding the unique challenges
of international shipping and providing knowledgeable
solutions makes MSC the smart choice when
heading to and from these regions.

MEDITERRANEAN SHIPPING COMPANY (USA), Inc.

as agents for MSC Mediterranean Shipping Company S.A. WE BRING
THE WORLD
(212) 764-4800, NEW YORK CLOSER
www.mscgva.ch

ATLANTA BALTIMORE BOSTON CHARLESTON CHARLOTTE CHICAGO CLEVELAND DETROIT HOUSTON

770-953-0037 410-631-7567 978-531-3981 843-971-4100 704-357-8000 847-296-5151 440-871-6335 734-955-6350 713-681-8880
LONG BEACH MIAMI NEW ORLEANS NORFOLK WILMINGTON, N.C. BAHAMAS, FREEPORT/NASSAU MONTREAL, CAN TORONTO, CAN VANCOUVER, CAN
714-708-3584 305-477-9277 504-837-9396 757-625-0132 910-392-8200 242-351-1158 514-844-3711 416-231-6434 604-685-0131
10 American Journal of Transportation ajot.com

Dolan leads Dick’s Sporting Goods (SLICE – continued from page 8)

was being thought of as a space for addi-
tional container storage but as Hadden
that fits isn’t necessarily a given.
In the case of the Port of Boston, the
recently FMC approved P-3 alliance com-
by helping create future of logistics explained, “we are now thinking of
adding or extending the berths to get
posed of MSC [Mediterranean Shipping
Company], CGM-CMA and Maersk has
As senior director of logistics for the important are partnerships and communica- them [the berths] as far off the flight path said that there will be a service at Conley
largest full-line U.S. sporting goods retailer, tions in providing sustainable operations? as possible.” Terminal. MSC has long been a “good cus-
Joshua J. Dolan believes, as a mentor once Both are incredibly critical to the One of the unique features of Conley tomer” of the Port and under the revamped
told him, that long-term suc- Terminal is it sits on the opposite side of P-3 schedule, a Mediterranean service
the best way
to predict the
future is to help
Industry Profile cess of our
organization.
We ’ r e
the harbor from Logan International Air-
port (also part of Massport), and the air
draft on the cranes is an issue with the
schedule will keep MSC calling and add
the partners CMA-CGM and Maersk to the
mix. Maersk, which previously had a strong
create it. By Paul Scott Abbott, AJOT well-positioned flight paths to the airport. presence in the New England market, cer-
At Dick’s in an envi- Low profile cranes are now deployed, tainly makes for a good fit. Additionally,
Sporting Goods Inc., ronment where capacity but moving the berths back could be an CMA-CGM has at times had services in
based in the Pittsburgh challenges are projected advantage. According to Hadden, the Port the Port and opens up some potential in
suburb of Coraopolis, to grow domestically Authority is also looking at getting pos- North-South services. Service is expected
Pa., the transplanted New based on a number of fac- sibly two more post-Panamax cranes with to begin in May or June with interim ships
Englander is applying his tors – such as increased a longer reach to accommodate the larger of over 6,000 teus before the 7,500 teus
industry expertise to a regulations, aging driver ships that will be calling. are deployed. These ships will be a con-
dynamic company with population and so on – in siderable boost over the 4,500-TEU ships
2013 sales of $6.2 billion the short to medium term. Getting in the Rotation now in service.
and plans to double its This comes at a time when The strategy of dredging the channels The size of the vessels adds incentive
already impressive foot- we anticipate significant and improving the facilities at Conley into both the dredging plan and getting
print to 1,100 stores. volume growth through Terminal would mean little if the ships container cranes with a longer reach.
Dolan, in an exclu- both our brick-and-mor- bypass the Port. With the advent of con- Additionally the new CKYHE alli-
sive interview with the tar stores, as well as our tainership operator alliances, it’s critical ance (formerly CKYH) consisting of
American Journal of eCommerce platform. to retain port calls as finding a replace- Cosco, K-Line, Yang Ming and now Ever-
Transportation, shares We’re also actively ment alliance is considerably more dif- green (although the service is designated
his thoughts on quarterbacking the Dick’s engaged in understanding and leverag- ficult than finding a replacement for a for Asia, North Europe and Mediterra-
logistics team and his longtime passions ing the complexities of an international single steamship line. nean, not North America) is revamping
for sports as well as supply chains. (PROFILE – continued on page 14) For smaller ports, finding an alliance (SLICE – continued on page 14)
Leading the transportation efforts for
such a fast-growing retailer must be both
exciting and challenging. How are you
innovatively responding to the challenges?
Partnering is critical, on multiple
fronts. We’re actively engaged in under-
standing the needs of our internal cus-
tomers, creating alignment within the
organization to attain our clearly estab-
lished goals.
By further understanding the chal-
lenges we internally face, we’re able to
leverage not only the solutions that exist
in the marketplace, but work with our
external business partners to develop
new solutions. The logistics team within
Dick’s Sporting Goods is not only pas-
sionate, but they’re incredibly smart
and focused on enabling the aggressive
growth of this organization.

Joshua J. Dolan has some big shoes to

fill as quarterback of the logistics team at
Dick’s Sporting Goods Inc.
What role has your experience with
Pep Boys, IKEA, Reebok and Fritz Com-
panies [part of UPS Supply Chain Solu-
tions], including in Foreign-Trade Zone
operations, before joining Dick’s two
years ago, helped you in developing strat-
egies and achieving goals at Dick’s Sport-
ing Goods?
I have both a broad and deep under-
standing of the many facets of multi-
modal global logistics operations that
include trade compliance and technology.
Understanding the interconnectivity
of how logistics can enable the supply
chain, visualize and mitigate risk and
create differentiation in our retail space
is critical. Through this understanding,
we’re also able to help shape and build
leaders who also are able to take a macro-
environmental perspective and apply that
to their tactical execution.
You mention partnering. Just how
12 American Journal of Transportation ajot.com

(FICKLE – continued from page 7) and the Hudson River connections. For
but the sequester and political quagmire example, Albany is nearly equidistant
in Washington has slowed the flow of between Boston (170-miles) New York
government related contracts and puts the City (155-miles) and only 115-miles to
immediate future of the sector up in the Hartford, Connecticut. New Englanders
air. The uncertainty has already led to the are also very close culturally and economi-
loss of high paying jobs. cally tied to Nova Scotia and New Bruns-
And jobs are still a big issue for the six wick, which partly accounts for the fact
state region. For example, Rhode Island’s that year in and year out, Canada is easily
unemployment rate is still high at around New England’s number one trade partner.
9%, which is far from recovered levels, even The Providence, Rhode Island area is
though the per capita income is still over very close to the neighboring cities of Fall
$40,000, which would look good to many River and New Bedford in Massachusetts,
states. Jobs are still a big issue. Maine isn’t and in some ways represents a metropoli-
expected to return to pre-recession employ- tan region unto itself. So close in fact, that
ment until the fourth quarter of 2016. some high school students from that area
In fact, on a per capita income basis, of Massachusetts cross into Rhode Island
Massachusetts at over $53,000 is one of to get to their schools in Massachusetts.
the nation’s best, yet there are still many Connecticut is also perplexing, as the State
endemic economic problems, especially is split economically almost along sport-
in the inner cities, that gaudy averages ing lines. West of New Haven, is largely
haven’t been able to address. In Massa- Yankee territory (with some Mets fans)
chusetts and Connecticut, the jobs lost while the Eastern part of the State, favors
during those years haven’t necessarily the Boston Red Sox. While this is an inex-
been replaced with jobs of commensurate act socio-economic analysis, behavior
salary and benefits. The extended New would suggest the Western part of Con-
England region is full of similar economic necticut is in many respects an extension
and cultural conundrums. of the greater metro New York region,
rather than New England or the Northeast.
Socio-Economic Geography
All told there are around 13-major Hub & Spokes
metropolitan areas in the Northeast, some Boston, (really the gold leaf covered
of which are multi-state in nature. Con- Massachusetts State House) was given the
The Port of Davisville is one of the top auto ports and frozen seafood
necting the dots of these metropolitan areas sobriquet the “Hub” of the solar system, ports along the East Coast of the United States. Strategically located near
draws an interesting map of the Northeast. which was later expanded to the “universe” the mouth of the Narragansett Bay, Davisville offers four berths and five
Very roughly the entire Northeast by Oliver Wendell Holmes. A plaque was terminals with over 58 acres of laydown and terminal storage. The Port
region would be about as large as Great placed in the sidewalk in front of Filene’s recently underwent close to $30 million in terminal infrastructure
Britain with a GDP similar to the Nether- store at Downtown Crossing in Boston, improvements, including dredging the Port’s channel to 32 feet and
lands at $772-billion compared to a GDP of just in case someone wanted to know adding a new 150 MT mobile harbor crane. Already an accomplished
$721-billion for New England by itself (esti- exactly where the Hub of the universe leader in ro-ro shipping, the Port of Davisville is now positioned to also
handle project and container cargo.
mates put the Northeast at $750-billion). was located. In 2006, Filene’s was sold to
In economic terms, Vermont isn’t Cincinnati-based Macy’s, which begs the
Maine or New Hampshire (although they question whether the Hub of the universe
share a significant agricultural sector) was secretly spirited away to Ohio. In fact
but probably closer to upstate New York. much of the economic clout that Boston
Albany in many respects is an important once enjoyed has shifted to Midwest cities
extension of New England with rail, road like Cincinnati, St Louis, Chicago or more

ITZ
ohlson recently to the Southeast and of course, the
real magnet, New York City.
Still there are compelling reasons
for the nickname, from a New England
lifts all boats” is often attributed to Presi-
dent John F. Kennedy, but it really was his
speech writer Ted Sorensen, who himself
lifted the expression (from the New Eng-
perspective. Boston, is the Hub for New land Council) during JFK’s senate years to
TRANSPORT INC. England commerce and it is estimated describe the New England economy and
that 40% of New England’s GDP is impact of free trade.
located in the greater Boston area. Boston The expression still applies to the
is New England’s largest city and has the region. As the US international trade in
region’s principal airport, Logan Interna- goods and services rises, so does New
tional, main seaport facilities, Massport’s England’s economic performance. While
Conley International Container Terminal the growth in essentially domestic eco-
as well as being home to numerous finan- nomic activities, such as medical, hospi-
cial and educational institutions. tality and others, investments (direct and
It is the financial power of Boston indirect) and actual participation in for-
that still keeps the Hub and New England eign trade (although not always through
spinning. While much of the traditional New England itself), is much larger and
manufacturing has moved to other parts the impacts are felt in nearly every corner
of the country or abroad there is world- of the region.

W
class financial strength (Liberty Mutual The forecast for 2014 and beyond for
and State Street Bank are both Boston- the Northeast is still uncertain. But if the
based Fortune 500 companies) coupled favorable economic trends continue, the
with R&D (with new interest from the expression “play ball” means as much in
bio-sciences and bio-pharma sectors) Washington and the rest of the country, the
oriented companies and numerous educa- worse may this time really be over and the
tional institutions within the Route 128- Northeast economic bloom in place.
belt. The influence of the City radiates out
far not only throughout New England, but
quite literally to every corner of the globe. It (BECKONS – continued from page 7)
is one of the most “international” regions in city council can extend the ban for another
the US for this reason. In many respects how six months to allow a committee to draft a
goes Boston, is how goes New England. city-ordinance for a permanent ban.
Ross Gittell, vice president and fore- But the problem is about more than
cast manager for the New England Eco- South Portland. The oil is from Canada,
nomic Partnership (NEEP) remarked, and the problem is as much about interna-
“The greater Boston area has been a tional trade as it is the oil flowing through
bright spot in the New England economy, the pipes. Other West Coast port communi-
leading the region in job growth, and ties are also paying close attention to what
more than recovering the jobs lost in the happens next in South Portland. Because
ITZ - OHLSON recession. The strong Boston economy of the international and federal issues
PO Box 129, Topsfield, MA 01983 has Massachusetts leading the New Eng- involved in the movement of the crude oil,
Tel: 617-387-1541 / Fax: 617-409-9276 land states in economic performance.” with all likelihood, the disagreement will
hit the courts. In the meantime nearly a
E-mail: dispatch@itz-ohlson.com Rising Tide Lifts All Boats million barrels of crude a day are looking
The oft-used expression “rising tide for exit points and there are few options.
apri l 7 - 20, 2014 northeast ports 13

WAREHOUSING NY/NJ CBP

• East Coast Warehouse is comprised of Two
Multi building campus locations consisting of
1.7 million square feet of multi Temperature
Exam Site
Controlled space. • Only comprehensive CES exam site in NJ
• Cross dock and Trans loading both for import • Only NJ exam site on port
and export shipments.
• Best in class turn times
• Food Grade Warehouse and Organic Certification
• Most NII capacity in NY/NJ

TRANSPORTATION VALUE ADDED

• Safeway Trucking is an asset based Temperature
Controlled North East Regional TL & LTL carrier.
SERVICES
• Specialized value added services which
• Safeway offers LTL pool distribution to all Include re-packing, and re-labeling
parts of the United States.
• Customized Packaging to include: Pallet Display
• Consistent Transit Times and Modules, Case Re-Configuration, Display
Quality Customer Service. Shippers, Shrink Grouping, Flow Pack & Seal,
and Variety

What do the World’s foremost food and beverage importers who call on Port Elizabeth, NJ know that others don’t…? East Coast Warehouse and
Distribution - a preeminent leader of end to end supply chain solutions with over 1 million square feet of temperature controlled, food-grade space is
strategically located ½ mile from the water; thereby enabling heavy weight importers the benefit of overweight containers at no additional cost ! And
that’s just the beginning… East Coast provides Warehousing (including liquor license), Co-Pack services, Nationwide TL and LTL distribution
through a consolidation pool network with real time visibility throughout the entire supply chain process, all of which is backed by over 300 highly
dedicated and passionate logistic professionals. A practice which East Coast started 60 years ago and continues to serve as a key differentiator
today ! Learn more about East Coast by contacting us at (908) 351-2800 ext. 2374 or visit our website at www.eastcoastwarehouse.com
14
10 American
American Journal of Transportation
Jour nal of Transportation ajot.com

(SLICE – continued from ance: The best way to predict the

(PROFILE – continued from
New 10) england trade

M & S
page 10) page future is to help create it.   
their participation on the all logistics arena where further
You% do2009some mentor-
water service with2007
NE State
and Hanjin each adding a vessel.
Evergreen
$
2008
2008 $consolidation
2009 $ of carrier
ingShare
%
2010 $ alliances
yourself. Share
is altering the ocean freight
In your role
member of the Executive MBA
2007 %
2010
Share
Share
%
as a EXPRESS
This
MAall-water
Exports service25,351 from Asia28,369spectrum 23,593from a26,256
Student service, cost2.2
2.2 Advisory2.2Committee 2.1 at 200 MYSTIC AVENUE
uses
MAthe Panama CanalNAand is32,297and capacity 26,454 perspective.
the Pennsylvania State Univer-
Imports
viewed as an alternative to the
1.5 30,735 1.7
Further cementing our logis-
sity – where you earned your
NA
1.6 MEDFORD, MA 02155
West Coast ports. 13,799
CT Exports 15,384tics provider
13,979 partnerships
MBA 1.2 16,033 across1.2
from the 1.3 Smeal College 1.3 (781) 395-8772/87
Another
CT Imports point that came
NA out 22,051the spectrum
of Business
16,594 1 of– how
18,620technology,NA
1.1 are you help-
1
Having a hard
Fax (781) 395-7319
of the studies for the dredging capacity, support services and
ing to promote interest in logis- time building a solid
is NH
thatExports
because of the 2,914smaller 3,752so on will 3,061continue4,368
tics careers,
0.3 to allow us0.3
and0.3 how critical 0.3 is
vessels calling in the port, there
NH Imports
were fewer slots available.
Hadden believes that one
RI Exports 1,649
10,615to deliver on the promise
8,950 of our
it that0.5the industry
6,322
internal mission statement: To
advan- 1,974provide1,496
young professionals?
innovative 1,946
I’m
0.4 attract

logistics solu-0.1
0.2 passionate 0.1 about logis-
0.5top
0.2
Container-LTL
Piggyback Coverage
Supply Chain? Bonded U.S. Customs Carrier
Radio Dispatched
tage of the larger ships is the tions and services that exceed our
tics and how powerful it is in Consolidation-Distribution
We build relationships.
RI Importsof more slots NAfor the 7,452 5,485 0.4 7,202 0.4 NA
0.4 Bonded Container Freight Station
availability customers’ expectations.
terms of enabling a more effi- Private Chassis FleetSince 1919, we’ve set the
local
MEmarket
Exportsthat will 2,750 help boost 3,016 Our2,231 vision is 3,148
cient 0.2 to be recog-0.2
world. I’m0.2 engaged in0.2our Fully Insured standard for Overwidth/Overheight
trade and Loads
the Port’s market share. nized by our internal and exter-
corporate recruiting program as logistics management.
MEOn Imports
the issue of NA produc- 4,823nal partners 4,279 as logistics
0.2
we actively 4,100 leadersNA
pursue0.3 top talent 0.2 in
tivity the Port and the ILA through strategic vision, innova-
supply $million;
chain and logistics.
Source: Census Daily Service Port of Boston
(International Longshoremen’s tion and collaboration.
I think that our youth today
Association) have succeeded in deeplyincare
From about theforimpact Serving: Conn., Maine, Mass., N.H.,
(PROSPECTS – continued theme. Ona broader
ended January
the negative perspective,
2010 side Con-
hammering
from page 8)out some key ideas whatthe
of of things like depletion of raw
areequation,
you engaged
necticut.” in through
manufactur- Rhode Island, Vermont
that But
are as the Hadden moviedescribes
all too it a materials
yourininvolvement
ing and pollution.
with isorganiza-
In January, TD Bank’s econ-
New England always What Also Serving Logan International Airport
“win win”
closely for both
imitated New sides. Labor
England tions
at risk, better way
such
butas
omists onthe to become
theRetail
released more
Industry
a report
positive oneffi-
side, the
has A
life. thefew advantage
years ago,ofEvergreen
working Leaders
the cient with
Association
regional
service inventory,and
sector,and
economies matching
its Trans-
whether wrote,
it
a ship chief
Solar and leaving
executive for Michael
the day portation
is supplyEngland’s
“New
education, with demand
and financial,
Infrastructure and reduc-
and
and Mid-Atlan-
health- With acting – having Nancy (EXPAND – continued from
while flexible
El-Hillow was the start
toast times
of Mas- are care ing our
International
tic’s older
or hi-tech, carbon
Trade footprint through
committees
demographics,
attracts invest- mature Kulp, bank secretary Jane Hath- page 8)
#534/-3"2/+%2!'%s&2%)'(4&/27!2$).'s7!2%(/53).'!.$$)342)"54)/.
#!2'/).352!.#%s#/.35,4).'
key for management.
sachusetts, now he’s just Thebeingfor- ment. efficiency andresilient
from public
economies,policyisand
The region utilization
a havenindustry gains
housing
for away from the Beverly Hillbillies, roaded crude oil to the East Coast.
mula has El-Hillow
roasted. reportedly added three-
established than through
best practices
R&D highlysupply
across standpoints?
markets, skilledchain
many disciplines working and as a great aunt – and screenwrit- The new traffic has been a boom
agross
plantcrane
in the moves
townperofhour Devensand It’s important
logistics career
populations
but putting a dollar to sign
stay abreast
andpaths?
outsized health
to that ing – having James Lee Barnett, to the port, although a morato-
withthe
(at bigger
sightvessels with a larger
of the former mili- of the changes
strength in ourEvergreen
care Increasingly,
sectors provided
is difficult. industry.
thisa is being
stronger who wrote such films as Smokey rium on heating the crude oil and
volume
tary base) of tocontainer movessolar
manufacture pro- Whether
Solar my it’s
more widely
footing the volatility
for theused
be shipping as a way
economic
the jobs of
recov- to and the Bandit and The Greatest expansion of the oil business was
ductivityequipment.
energy should climb. To establish pricing
out butand
ery capacity, was
not following
only impact
El-Hillow, technology
the business,
Great Reces-
quick but Story Ever 1-888-612-6239 declared by Albany County Exec-
Told – in your blood-www.anderinger.com
this Tonewhelp industrycontrol
the emissions
company andpoint
to best out
sion. practices
also, Wethrough evolution,
business,
anticipate
that the or
thatimpact
company these line, did you ever consider get- utive Daniel McCoy last month.
the port
was givenspearheaded
$58 million a intruck tax the development
plans strengths of new regu-
the world.will carry over in 2011
to keep its headquarters in ting into movies?
replacement
breaks and aid, program
including for about
older lations and requirements
and, Clearly,
Marlborough, as a result,you’re of our
both regions
Massachusetts. passion-will Growing up, we heard a lot Northern New
vehicles.
$21 million Twenty oldTwo
in cash. trucks, used
months industry,
be
Despite we this
ate able truly setback,
operate inthea
abouttologistics.
outperform Do younationalalso about the different movies and
DERINGER AD NCBFFAA.3.22.10.indd 1 England Ports3/22/10 2:58:53 PM
mostly
ago, by independent
Evergreen owners in
Solar announced dynamic
job environment.
personally growth.”
economic
situation have a passion
seems to be easing. TD Bank’s for shows that Uncle James was Pease Development Author-
container
that theydrayage,
would were replaced
shutter the Our teams
According to therely
sports, and,
forecast on our
is inifline
so, with
Federal abil-
whicha ones?
Reserve number working on. He was close friends ity (PDA) [an independent
with new
Devens’ plant trucks.
and moveThroughproduc- an ity to (March
Bank, bridge the
I love
of other medium-
football, baseball
economist
report) and
groups. The
New Eng- and with John Wayne among many state agency] in Portsmouth,
EPA togrant
tion China,the truckers
cutting 800 jobs got long-term
land gainedgaps
basketball.
New England
54,000 andjobs
Being challenges
from Boston,
Economic
in 2010 Part- actors and did quite a few movies New Hampshire has under its
$25,000
in towardsUnderstandably,
the process. the new truck. to execution
with we’ve been
nership
the addition through
(NEEP)
of 39,000 strategic
a littleandspoiled
the Fed-
jobs over for him specifically, including umbrella of transportation and
As Hadden points
Massachusetts now out,wants
although its foresight.
in OctoberIt’s
the last
eral also critical
13 years.
Reserve
through January.toOn
Bank It’salso be
wellbelieve
under- Green Berets. He also wrote other services Portsmouth Inter-
twenty doesn’t
money back, sound while large, these
Evergreen aable to set expectations
stoodEngland’s
New
year-over-year basis, and
that Sundays GDPare help
willholy
employ- grow in the screenplay for In the Heat national at Pease and the Divi-
trucksargues
Solar were regular
that thecallers
State at gotthea executive
ment in theleadership
the Dolan
“slightly faster within for
household the
though...
than the nation
region expanded as of the Night and Our House as sion of Ports and Harbors.
port, so
pretty fairthedeal.
impact of replacing aorganization
aI’m
whole
seventh consecutiveto mitigate
a diehard
through monthrisk
Patriots
2014.”fan. in well, which I very much enjoyed Pease Airport is one of the
themEvergreen’s
with newer vehicles decision with to where appropriate
January, Another
up 0.9% (61,900 through
Our teamindication jobs). an
internallyof at a watching growing up. longest in the region extending
less emissions
move to China was a big step
for cheaper laborin understanding of challenges and
Dick’s
turn Sporting
around is inGoods is a lot
the depressed This was all very excit- over 11,000 feet and has US
the right
and lowerdirection.production costs ropportunities
ecovery on
property inthe
like a footballsector.
The horizon.
team.CB We play
Richardboth ing stuff. However, I also had Custom & Border Patrol agents
(and The next few
potentially lessyears could
oversight) F I am engaged in both com-
sides of theEngland
Ellis/New
orecasT ball hard every
with day,
a prop- another uncle, Uncle
Albert Oldendorff Bob, atwith
berthed the Portonof site.
St. JohnThe in“Tradeport”
New Brunswick indus-
be telling not
underscores whatjusthasfor Mass-
happened mittees mentionedthe
withportfolio
erty every play
Nevertheless within
NewRILA,
ofand player being
34 million
Eng- sq/ft whom I was closer, who was very trial park on the grounds is over
portNew
to
many
for
andEngland
the Port manufacturing
ports
quite
of Boston, but
similarly
a long situated.a
time...with
SMC3’s
land
Chainalytics’
and
educational
property
economy
analysis
the economic
is doingcouncil,
importantintoNew the overall
advisory
of our performance.
England,
of the region’s
indicators
outcome
better,
board
Wemarket,
in an
have a
are American Iron & Metal and
decorated, having served in both
the Army and Navy respectively.
3,000 acres with 4-million sq/
ft of available space. Another
The New
little twist.England
The global market’s
economy port and a upward.
inching said,few logistics
game “Some
plan, but we’re
deals
The Connecti- service
alsodid
that aware
not His career in logistics post mili- 665,000 sq/ft is expected to be
geography
is nothing new
vantages for the
Historically,
holds some
in New
Port and
textiles
disad-
England.
of Boston
foot-
providers’
cut
boards.
by
pencil
Economic customer
of the out
in-game
In each
must be made
palatable
the State’s
in 2010 advisory
adjustments
Digest (produced
of these
will be more
from time
in 2011.
Dept. groups,
of Economic
that
to time
Ground-up
Saint John Port Authority
tary service – and the passion
he displayed for it – were what
added over the next decade.
The Port of Portsmouth is a
but none
wear
ished
which that
industries
selves in an end
Newgame.
are once
unto them-
England moved
flour- I’m Community
and also able toDevelopment)
development
input into
began theirthose
and The retailers
March
help provide
in order to succeed.
is back on the table,
things
team will
digest thatwith
is committed are
increasingly to
sign 40-year agreement
drew me to logistics initially
while earning my undergraduate
Foreign Free Trade Zone (FTZ)
on Market St. on the Piscataqua
southWithand the thenlarger vessels in the
overseas. most useful toRecovery
mission
come
“Connecticut under our organization
andpressure
knows to thatidentify
Began every degree
Thein $30
international
million business
expan- River. Thetoshipping
continues move forwardterminalwith has
rotation,
The perhaps
impactforofthethe firstpost-
time that
in will assist
opportunities
January 2010.” in The
our CED
inch adds up into 2011 ability to
yards,forwhich
pro- new [fromofBridgewater
sion (Mass.)
American Iron State
& Metal 600-ft
the recentberth with 35-foot
milestone draft
of a signed
in decades,
internet global improving
economy market is strategically
claimed, equates
“Theplan
(PROSPECTS and Recession
Great execute.
to progress. We’re on
– continued in University].
(AIM) Ever on
operations since
the then,
west alongsidelease
40-year and another
agreement 312-foot
with
share isaannew
really obtainable
spin goal.
on an old II thatA began
mentoringave
this to win. March me this
2008guid- has
page 12) I’ve been
side of thehooked!
Port of Saint John pierSaint
the with John22-ft Port
draftAuthority.
alongside.
The port
AIM first mainly
announced handles
the
neo-bulks on
expansion suchOctober
as scrap, salt,
2, 2010
woodsince
and chips thatalong
time has withcontin-
some
project
ued cargo.the
through Thepermitting
PDA currently pro-
Port of New Hampshire – Gateway to the World leasesfor space
cess to International
establishment
Salt, and operations
of metal
Grimmel atIndustries
shredding the Port
Pease Developement Authority • Division of Ports & Harbors handles
of Saint the
John. scrap metals.
The Port of Portland,
“American Iron & Metal’sMaine,
north of Portsmouth,
expansion in Saint John is is
thinking
a crit-
The DPH Market Street Marine Terminal, located on the about
ical expansion.toThere
component is a pro-
the continued
Piscataqua River, is the only public access, general cargo posal for a $5 million
diversification expansion
of port business,”
terminal on the River. The Piscataqua is a year-round, ice- of the International
stated Jim Quinn, President Marine Ter- &
free deep draft river. minal,ofmost
CEO Saintimportantly
John Port Author- includ-
ing new
ity. “Therail. expansion will mean
The Market Street Terminal offers: The principle
increased employment userforofSaint
the
• Foreign-Trade Zone #81 facilityincreased
John, is the Icelandic
work for long- Eim-
• 8 acres of paved outside lay down area skip Line. With
shoremen and an nearly one year
increase in
• 50,000 sq. ft. of covered warehouse completed,
ships in the Eimskip
harbour.”has handled
• onsite rail access moreAIM than 4,100continuescontainers.
to work
• 600 ft. berth, 35 ft./MLW towardsThe initial
fulfilling annual
their projection
commit-
was toto handle
ment 5,000-containers,
the community of Saint
• 312 ft. berth, 22 ft./MLW
but there
John by isrecently
a chancepostingto do con- the
• 1/2 mile from I-95 connecting to I-495, & I-93 siderably
first of 23 jobsmorethat business
will be if the
filled
• 2 miles from Pease International Tradeport/ rail lines
over the next canfewbe months
extended. The
(www.
Pease International Airport problem is it requires another
sjmetalrecycle.com).
The DPH is the Grantee of Foreign-Trade Zone #81, which • 3 NM from open sea 18-acres
On aofstatement
land andmade involves the
on the
includes 5 sites and 2 subzones. • fresh water cooperation
company of a number
website, of par-
Mr. Herbert
• bunkers available ties. The
Black, adjacent
President & CEOland of isAmer-
under
• The Market Street Terminal, 11 acres • Customs Port of Entry control
ican Iron of Phineas
& Metal Sprague“We
comments, Jr.
• Portsmouth Industrial Park, 75 acres who that
hope originally
you share secured the prop-
our excitement
• Dover Industrial Park, 50 acres For more information contact: Geno Marconi, Director of Ports erty for
about thisa major
marina. Sprague in
investment could
the
• Manchester Airport, 1400 acres and Harbors at (603) 436-8500 or g.marconi@peasedev.org shift ofover
Port Saint to John,
another andparcel
we look of
• Pease International Tradeport, 1900 acres Visit our website www.portofnh.org land
forward 12-acres
to in
celebrating size owned
our by
official
Pan Am
launch this Railways.
fall.”
apri l 7 - 20, 2014 NOrt h Am erica’s TRANSPORTATION & LOGISTICS n ewspaper 15

Air Cargo
Air Cargo
NEWS

NEWS
AA Cargo and US Airways Cargo Modal shift costing air freight
come together in New York Kennedy 2% points of annual growth,
In the first step to co-locate opera- Jamaica, NY 11430
tions across the combined network, US
Airways Cargo joins American Airlines
M-F 0400-2200
SAT 0400-2200
Seabury-IATA finds
Cargo’s operations at New York’s John F. SUN 0400-1900 Modal shift to ocean freight has cost increased reliability of ocean freight, and
Kennedy International Airport (JFK). US Airways Premier Pak (PPK) Facility the air cargo sector almost 2 percentage the environment. According to shippers,
While the two carriers continue to oper- Handled by: American Airlines Cargo points of annual growth since 2000 and air cargo could minimise or reverse the
ate independently, the co-located facility John F. Kennedy International Airport is set to continue at a moderate pace, effects of modal shift by offering cheaper
allows American and US Airways custom- Terminal 8 – Lower Level according to research by Seabury Group rates, better air freight products, and closer
ers to tender and recover both 001 and 037 M-F 0400-2200 and the International Air Transport Asso- relationships with shippers, while the most
air waybill shipments in one location. SAT 0400-2200 ciation (IATA). popular suggestions from freight forward-
US Airways customers will begin SUN 0400-1900 The study by the leading advisory ers interviewed were increasing sustain-
tendering and recovering 037 air waybill The cargo facility co-location in New services firm highlighted that air freight’s ability through fuel efficiency, improving
shipments at the following locations: York Kennedy is the first of 155 across share of total global containerised or uni- operational reliability and increasing the
Cargo Facility: American Airlines Cargo American’s combined network. On April tised cargo transported declined from 3.1% use of electronic communication.
John F. Kennedy International Airport 1, American will relocate its cargo opera- in 2000 to 1.7% in 2013, with around one Shippers and forwarders surveyed
Cargo Building 79 tions to US Airways’ facility at Phoenix third of this market share loss being due to expected a moderate continuation of the
North Boundary Road Sky Harbor International Airport (PHX). ‘modal shift’ – in which a product that used shift to ocean freight in the next few years.
to be shipped by air is now shipped instead In terms of industries, shipments from the
by sea or surface transport. ‘Commodity automotive and electronics sectors were
mix’ factors and ‘value effects’ were the identified as most at risk of migrating
AirBridgeCargo begins B747F service other main causes, the study identified.
Seabury’s research indicated that the
from air to ocean freight in the future.
Gert-Jan Jansen, Head of Seabury
to Dallas/Fort Worth shipment of raw materials and perishables
had been affected the most by modal shift,
Cargo Advisory, commented: “Mode shift
has eroded a significant portion of air freight
AirBridgeCargo Airlines (ABC) is efficient freight deliveries for customers but fashion, high-tech and machinery growth and is expected to continue to do
expanding its presence in the U.S. market doing business in North America, Europe, parts shipments had also experienced sig- so, albeit at a moderate rate. Annual global
with the launch of Boeing 747-8 freighter Asia and Russia.” nificant shifts from air to ocean freight. air freight volumes would be 15.2 million
flights linking Dallas/Fort Worth (DFW) ABC started performing flights to/ Trade lanes from Asia have been hit the tonnes higher if air freight had retained its
with Amsterdam and Moscow. from Chicago in 2012 thus becoming a hardest, the report revealed. 3.1% market share, and over the past 13
New twice-weekly all-cargo flights truly worldwide airline with global cover- Shippers interviewed in the survey years, 5.4 million tonnes have shifted from
from Dallas/Fort Worth will operate on age. Since then the airline has seen strong indicated that the main factors driving air to ocean – an average annual loss of more
Mondays and Thursdays to Amsterdam demand on this destination, especially in modal shift included transportation costs, (SHIFT – continued on page 23)
Schiphol and Moscow’s Sheremetyevo oil&gas industry which export has grown
airports. by 6%. ABC’s overall cargo tonnage to/
The airline, part of Volga-Dnepr from the North Americas has grown by
Group, is also developing its current ser- 12% and 4% respectively.
vices to Chicago, introducing direct
flights from Frankfurt. The new routes are
The USA has always been on ABC
strategic radar screen and new Dallas/
Connecting
part of AirBridgeCargo’s new summer
schedule and commence March 31, 2014.
Fort Worth route as well as increased fre-
quencies to/from Chicago will reinforce the World
Denis Ilin, Executive President of ABC’s position as a strong player on the
AirBridgeCargo Airlines, says: “Chi- global cargo market.
cago has been a very successful route for We are pleased to welcome Air-
us since we commenced services on the BridgeCargo freighter service to Dallas/
route in 2012 and the extra B747F flight Fort Worth,” said Luis E. Perez, vice
a week from O’Hare International Airport president for air service development at
will provide welcome additional capac- DFW International Airport. “This new
ity for our customers. Expanding services added service further demonstrates the
in the U.S. market is a logical step in strength of the Dallas/Fort Worth market
the airline’s development and means we and provides our region’s suppliers with
can increase our ability to offer fast and additional lift to Europe and beyond.”

Lufthansa Cargo sees partnership

by mid-year
Lufthansa Cargo, the air freight arm forecasts for global cargo demand to 4
of Germany’s largest airline, aims to set up percent growth for this year, but said
a partnership with an airline outside of the yields would fall 1.5 percent.
Lufthansa Group by the middle of this year Lufthansa Cargo presented its annual
ahead of further cooperation deals, it said. report and Garnadt said that yields at the
Karl Ulrich Garnadt, CEO of Luf- company had stabilized at the end of last
thansa Cargo, said the aim of such part- year, but that it was difficult to make any
nerships would be to increase the number forecasts beyond that.
of routes and destinations Lufthansa Any partnership between Lufthansa
Cargo could offer while helping to cut Cargo and another airline needs to be
costs by taking advantage of the partner’s approved by antitrust authorities before it
logistics handling facilities, for example. is announced, he said.
“We are in talks with more than Garnadt, who will become CEO of
one airline, a second partnership should Lufthansa’s passenger airline business in
follow in 2015,” Garnadt said. May, has experience of a similar partner-
Air freight companies are coming ship during a previous stint at the passen- An agile supply chain is the key to growth
under increased price pressure because of ger unit. A joint venture with United and and success in the global market. Yusen
a growing number of passenger services Air Canada, called Atlantic Plus Plus,
Logistics provides robust solutions to speed
carrying cargo in the belly of the aircraft. was set up to enable the airlines to coor-
your products to market, with unparalleled
With Middle Eastern airlines in particu- dinate schedules and pricing on transat-
expertise in high-volume handling and multiple
lar expanding routes fast, that has put prices lantic routes.
under pressure and forced some airlines, “What works in the passenger busi- movements on land, sea and air.
such as British Airways and Air France to ness should also work in cargo, even Find out more at www.us.yusen-logistics.com
scale back their own use of freighters. though it is more difficult to set up,” he
Industry body IATA revised up its (PARTNERSHIP – continued on page 23)
16 American Journal of Transportation ajot.com

Export-Import Bank of the US EX-IM provides lifeline

levels the playing field for US exports for beleaguered
The EX-IM Bank’s role to financially level the playing field for US manu-
facturers selling abroad is in some corners a controversial activity. But
US flag ocean carriers
without the EX-IM Bank’s financial muscle, how would capital intensive By Matt Miller, AJOT
US manufacturing fair against competition from the other sixty-countries
that have EX-IM style financing for their manufacturers? As the war in Afghanistan ships, but ranks as the third larg-
winds down, and other major est US flag carrier. Maersk Line
By Matt Miller, AJOT US conflicts recede in memory, subsidiary Maersk Line, Ltd is the
shipping companies flying the largest, with 30 ships.
This year, Congress debates the fate of the New York-based project advisory services P50 American flag are scrambling for ARC has transported power
Export-Import Bank of the United States, one Capital LLC, which specializes in power-related business to make up for an antic- generation turbines. When asked
of those government agencies that likes to keep infrastructure projects and has done project due ipated shortfall. That’s because DeBoer cites an Ex-Im Bank
its head down and job-creating statistics up. The diligence for Ex-Im Bank. “But renewables have federal law requires military financed loan that will provide
Ex-Im Bank lends money, guarantees loans and picked up a lot over the last 3 ½ years.” transport cargo on US ships. GE wind turbines and blades to
offers credit insurance for American-made goods That category is also of special interest for For U.S. flag carriers, the Vietnam. American ships will
sold abroad. It likes to boast that it’s been respon- American shipping interests (see related story on Export-Import Bank of the United carry them from Houston’s port.
sible for supporting more than one million workers the right). States provides another mandated Just how much all this is
in the past five years. Whether wind farms or gas turbines, local banks lifeline. Under an 80-year-old worth is a matter of interpreta-
The institution, however, runs afoul usually aren’t interested in providing loans. Congressional resolution, Ameri- tion. In 2012, the latest figures
of those who believe the government Nor are most private sector multi- can ships must transport certain available, Ex-Im Bank cargo
shouldn’t manage banks, under- national financial institutions goods procured with bank loans, added about $94 million to
write loans or lessen costs for operating in many emerging and destined overseas, provided revenue totals of US flag carri-
big American manufacturers markets. Political instability, the ships are available and have ers, according to the Maritime
in what critics charge is a business risks, even mili- the necessary capacity. While agri- Administration of the US Trans-
kind of corporate welfare tary concerns all conspire cultural products were the original portation Department.
program. Some Ameri- to make private-sector impetus, heavy capital equipment In the world of global ship-
can companies such as loans for infrastructure now forms the backbone of this ping, that’s nothing. Consider
Delta Airlines also argue hugely difficult. “In business. For power and energy- that Maersk Line posted global
that these low-interest many of these coun- related loans, shipping often revenue last year of $26.2 bil-
loans can actually give tries, commercial bank means ocean-born transport and a lion, with profits of $1.5 billion.
foreign competitors an appetite for these types major book of business. On the other hand, that $94
advantage. (Delta sued of projects is either non- “It is substantial,” says million revenue represented
the bank in 2011 over existent or very limited,” Lorne Thompson, COO of the almost double 2011 revenue and
$3.4 billion in loan guar- says Osma. think tank Lexington Institute, about nine times that registered
antees for Air India, which The Philippines, for who has researched the bank. in 2008.
is buying 30 Boeing aircraft. example, suffers chronic The carriers, understand- What’s more, for the
So far, Delta has failed to con- power shortages. Reliable ably, are nervous that some in remaining US flag carriers,
vince the courts that it is suffering electricity in many parts of the Congress want to abolish the every dollar helps. After all, it’s
as a result of the loan.) country remains a dream and the bank, or at least clip its wings. possible to count the number of
As lines are drawn, public relations deadly typhoon that last year struck Leyte, in “If Ex-Im Bank business goes commercial American flag lines
campaigns mounted and various politicians, lob- the central part of the Philippines, only made mat- away, it won’t be a very bright on both hands. “There are only
byists and pressure groups duke it out, energy and ters that much more dire. Lack of adequate financ- future for US flags,” says Dave a few of us left,” says DeBoer,
power will be an important focus. Bank support- ing has held growth in check for decades. Late last DeBoer, general manager US flag who lists eight shipping com-
ers believe this is one large sector in which bank month (note: March) the country’s Department of commercial sales for American panies with international com-
financing translates into added business. Energy signed a memorandum of understanding Roll-on Roll-off Carrier LLC. mercial capabilities that fly the
“This kind of heavy capital equipment often with the Ex-Im Bank for $1 billion in loans target- ARC owns a fleet of just seven American flag. “That’s it.”
costs many millions of dollars and customers want to ing both renewable energy and LNG.
spread out repayment, says Lorne Thompson, COO of
the think tank Lexington Institute, who has researched Patience Key to Success
the bank and supports its mandate. In many emerging
markets, customers “may not be able to tap commer-
It may, however, take years before this kind
of agreement gets translated into actual projects.
Dubai says may establish
cial banks, where they face a combination of a lack of
resources and a lack of will.”
“Patience is key to success,” says Rick Angiuoni,
the bank’s regional director for Africa, in an email.
sharia-compliant EXIM bank
The US Ex-Im Bank isn’t alone in what it Washington has trumpeted efforts in Sub-Saha- Dubai’s government will time frame.
offers its manufacturers. Some 60-countries have ran Africa as well. Two years back, South Africa consider establishing the world’s Dubai is a top trans-ship-
similar export-credit institutions, Thompson says. signed an MOU with the bank, which pledged up to first fully sharia-compliant export- ment hub for trade in the region
A few of those, notably China and Brazil, layer $2-billion in financing for energy-related exports import bank to promote the emir- and wants to become a leading
on concessionary financing that make competition and technology, with an emphasis on clean tech. ate’s foreign trade, the Department global centre for Islamic finance.
that much more difficult. Last year, President Obama announced an ambi- of Economic Development said. Islamic trade finance remains
“They’re not playing on a level field,” says tious $7 billion power-related assistance to Africa. The bank would pro- a tiny part of global banking busi-
Thompson. The Ex-Im Bank is tasked with making available vide financing to companies ness, but it is gradually attracting
When combined, power and energy-related up to $5-billion in loans and guarantees. involved in trade while help- interest among banks and asset
exports form the bank’s second largest sector, “The amounts of financing needed are massive ing them to reduce their risks managers because of the rapid
behind aviation and its flight leader Boeing, which and require the support of export-credit agencies and gain market access, the growth of trade in predomi-
hog about 45% of the bank’s total loan exposure. such as Ex-Im Bank,” says Angiuoni. “Reforms department said in a statement nantly Muslim areas such as the
For the fiscal year ended last September, the bank across the continent are giving impetus to more without giving details of the Gulf and southeast Asia.
authorized a total of $27.3 billion in loans. investments in the sector, and US companies are proposed institution’s structure Last month the Export-Import
increasingly engaged.” or financing. Bank of Malaysia said it had issued
EX-IM Power Play Angiuoni points to significant deposits of Noor Investment Group, what it called the world’s first U.S.
In fiscal year 2013, the bank recorded a total onshore and offshore gas in Africa. Africa’s energy which is affiliated to Investment dollar-denominated Islamic bond
exposure of $113.8 billion, of which $81.6 billion future is largely tied to gas-fueled power plants.” Corp of Dubai, the emirate’s issue from an export-import bank;
are disbursed and outstanding. About 72% of the Available loans may not be enough, say crit- flagship investment vehicle, will the $300 million, five-year sukuk
total portfolio represents guarantees, not actual ics. Benjamin Leo, an Africa analyst at Center for advise on the project, the depart- attracted $3.2 billion of investor
loans. Some $24 billion represented power and Global Development, writes that the bank’s track ment added. It did not give a orders. (Reuters)
energy-related lending. The majority of these loans record in African power is spotty at best. He logged
related to refineries, petrochemical plants and LNG just three power transactions in 12-years, one in
production. The biggest last year was a $1.8 billion
loan to Bechtel Power Corp., which is constructing
South Africa and two small projects in Ghana.
Because of credit risks, there’s a seven-year maxi- Afreximbank in second phase
mammoth LNG plants in Queensland, Australia.
Power project equipment per se totaled only
mum repayment for Ex-Im loans in about half the
countries on the continent, Leo says. By contrast
of Kenya Airways financing
about $7.4 billion. Last year’s totals represented the multilateral agency OPIC offers financing up The African Export-Import The first phase of the
a $900 million decline over the previous year. In to 15-years. Bank (Afreximbank) said it was financing, which consists of pre-
fiscal 2012, the bank approved a $2 billion loan Angiuoni responds that long-term financing is in the second phase of a $1.9 delivery payments to the aircraft
for construction of a nuclear power plant in United available in the countries with the most potential billion financing for Kenya Air- manufacturers, was concluded
Arab Emirates, which may have distorted statistics. for power projects. That includes Angola, Mozam- ways, providing funding for 10 last November with the delivery
The bank has professed a shift toward renew- bique, Nigeria and Tanzania, in addition to South Boeing aircraft as the national of all the Embraer jets.
ables -- solar and wind -- in terms of both policy Africa and Ghana. carrier ramps up its fleet. The first of the Boeing
preference and demand. In mid-December, the When it comes to renewable energy, the Kenya Airways picked Dreamliners is due to arrive next
Ex-Im Bank bolstered that effort, when it announced Ex-Im Bank claims success in Latin America. Afreximbank in May 2012 to month, and the rest by July 2015.
that for environmental considerations, it would no “For Ex-Im Bank participation, it’s been an impor- arrange financing for the pur- Kenya Airways will deploy the
longer underwrite most coal-fired plants. tant region,” says Osma, who believes demand in chase of ten Embraer-190 planes, first on its Paris route as part of a
“Power has always been pretty strong for the many Latin American countries for renewables nine Boeing 787-800 Dreamlin- strategy to expand its European
Bank,” says Bulent Osma, managing director of (FIELD – continued on page 23) ers and one Boeing 777-300ER. routes. (Reuters)
apri l 7 - 20, 2014 export-import bank 17
18 American Journal of Transportation ajot.com

(LEVERAGE – continued from Georgia was absolutely cor- work positively together. “Our intermodal network U.S. convention center. The 2015
page 1) rect,” Hawk said, noting that “More and more of the is first class,” Carr said. “We summit, set for March 31-April
for rerouting could mean more Toyo’s site 50 miles northwest world is discovering that Geor- want to continue to grow and 1, should pull even bigger num-
Target cargo coming into East of Atlanta offers ready Inter- gia is a good place to do busi- support that.” bers, space permitting.
Coast ports such as Savannah state highway access that links ness,” Deal said. Ed Crowell, executive direc- Page Siplon, executive direc-
and Norfolk, which now handle to the Port of Savannah and the tor of the Georgia Motor Trucking tor of the Georgia Center of Inno-
35 percent of Target imports world’s busiest passenger air- Association, said collaboration vation for Logistics, part of whose
compared with 65 percent for port, Hartsfield-Jackson Atlanta among transportation modes has Georgia Department of Economic
Los Angeles/Long Beach and International Airport. “Logistics been critical. Development job it is to play host
Seattle, he said. played the biggest part in it.” “There’s probably no other to the summit, said the modest
Meanwhile, according to Stu Thorn, president and state where all the modes get it $50 registration cost isn’t the only
Carter, the regulatory climate is chief executive officer of Car- and all the modes work together reason for the impressive draw.
“just becoming crushing,” from rollton, Ga.-based electrical than Georgia,” Crowell said. “The formula for success is
truck driver hours of service to cable producer Southwire Co. Looking out at an audi- putting on a show that has value
food safety rules, and fulfillment LLC, echoed that sentiment. ence filled with businesspeople, to the companies,” Siplon told
of online orders is an area that “Logistics is a big part of Curtis Foltz, executive director the American Journal of Trans-
“is moving fast, and there’s no why Georgia is attractive for of the Georgia Ports Authority, portation. “The summit brings
approved solution.” business,” Thorn said, noting cited GPA plans to invest $1.4 companies together, to help
While tactics of mega-retail- that 80 percent of the U.S. popu- billion in infrastructure over the them compete and grow, show-
ers are similar in many ways, lation is within a two-day truck next 10 years and said, “Team casing what we do as a program
Jones, in his keynote address, said drive or a two-hour plane ride. Georgia gets it. Hopefully, most every day.
Walmart has gained a competi- In a plenary session, Georgia Georgia Gov. Nathan Deal extols of you are here because of that.” “Georgia is all about logis-
tive advantage by operating its Gov. Nathan Deal pointed to state the numerous logistical benefits Whatever the reasons, the tics,” Siplon said, citing the
own trucking fleet and, through legislative efforts to deepen the offered by the Peach State. Georgia Logistics Summit has fact that Georgia is the only
its American manufacturing ini- harbor at the Port of Savannah, (Photo by Paul Scott Abbott, AJOT) grown from a 2009 luncheon- state with a logistics innovation
tiative, is investing $250 billion already the fourth-busiest U.S. Toby Carr, director of plan- only function that attracted 450 to center that serves year-round as
over 10 years in a program to containerport, as well as to the ning for the Georgia Department Midtown Atlanta’s Atlantic Sta- a free supply chain consultancy.
source products closer to home, Atlanta airport, several Interstate of Transportation, noted that one tion to this year’s two-day event, “Moving freight all over the
with supply chain benefits mean- highways, and multiple railroads of Deal’s four top goals has been which drew more than 2,300 world is something we help our
ing U.S.-made goods won’t cost with port access and key intermo- to expand Georgia’s role as a registrants from 35 states and companies do.” (For reception
more than imports. dal yards, commenting, “They all major hub for logistics. 11 nations to the fourth-largest photos, see next page.)
“When you look at our initia-
tive, it’s a win-win,” Jones said,
citing benefits for Walmart cus-
tomers, the company and, through
support of jobs, the nation. Fewer
transportation miles also should
lessen carbon footprint.
One of the first companies
to sign onto Walmart’s latest
buy American campaign after
it was unveiled in early 2013 15+ Hours of
was 1888 Mills LLC, a Griffin, Networking
Ga.-based maker of towels and
CARRIERS
one of scores of Georgia busi-
nesses represented at the Geor- SHIP PERS
gia Logistics Summit. Jones
said 1888 Mills has increased
sales by 24 percent over the past
year and is doing so well that it
is adding a second factory.
Indeed, Georgia success
stories highlighted the two-day
Atlanta summit.
Monte Galbraith, president
of Columbus, Ga.-based Denim
Textile North America and chair-
man of the Georgia Association
of Manufacturers, said his com-
pany, which supplies dyed fabric
to jeans makers, said innovation,
service and speed are keys in
meeting customer expectations,
commenting, “We never talk
How will you connect this year?
about price. Collaborative Supply Chain Intelligence | June 22 – 25 | Naples, FL
“The thing that I expect on
logistics is that I expect it to
work,” Galbraith added.
Jack Rittenhouse, direc-
tor of logistics operations for
Duluth, Ga.-based farm equip- OGY PROVID 30+ World Class
ment manufacturer AGCO NOL E
CH Presenters
Corp., said a flexible network
RS
TE

utilizing partnerships with third-

and fourth-party logistics pro-
viders has propelled growth,
while James Hawk, chairman of OG
ER
L

IS TI
Toyo Tire North American Man- C S P R O VID
ufacturing Inc., said his firm has
continued to expand its facilities
in White, Ga., since beginning
production there in 2006.
“The decision to locate in

GET ALL THE DETAILS

20+ Hours of
Targeted smc3connections.com
Sessions &
Breakouts

James Hawk, chairman of

Toyo Tire North American
Manufacturing, has no regrets
about locating in Georgia. (Photo AN SMC3 EVENT
by Paul Scott Abbott, AJOT)
apri l 7 - 20, 2014 NOrt h Am erica’s TRANSPORTATION & LOGISTICS n ewspaper 19

Georgia Logistics Summit attracts more than 2,300 leaders to Atlanta

By Paul Scott Abbott, AJOT Many of the attendees – from shippers to service providers – gathered March 18
in the Thomas Murphy Ballroom at the Georgia World Congress Center for an evening
More than 2,300 leaders of business, freight transportation, government and aca- reception, co-hosted by CSX Corp. and Norfolk Southern Corp., both of which have
demia gathered March 18 and 19 in Atlanta for the sixth annual Georgia Logistics significant rail presences in Georgia. (For a report on conference business sessions, see
Summit, presented by the Georgia Center of Innovation for Logistics. front page.) Photos by Paul Scott Abbott, AJOT

(L to R) Philip Li – Havertys Furniture Companies Inc., (L to R) Andrew Bertram – C.H. Robinson Worldwide Inc., Mani Vannan – Avion Systems
Anthony Ambrosino – Yusen Logistics (Americas) Inc., Gary R. Niedermeyer – Havertys Inc., Howard Woodard – Georgia College and State University,
Furniture Companies Inc., Rich McCoy – Premier Logistics Partners LLC, Kartik Deodhar – C.H. Robinson Worldwide Inc., Aaron Decker – C.H. Robinson
Anthony L. Paik Jr. – Yusen Logistics (Americas) Inc., Phil Dunkley – Premier Logistics Worldwide Inc., Joe Devlin – C.H. Robinson Worldwide Inc.,
Partners LLC, Josh Harshman – Premier Logistics Partners LLC John Jacobs – C.H. Robinson Worldwide Inc.

(L to R) Keith Johnson – Forcum Lannon Contractors, (L to R) Sarah M. Smith – Georgia Institute of Technology, (L to R) Dr. Karl Manrodt – Vested Outsourcing Inc.,
Marc J. Litt – Building & Earth, Roberto Rodriguez – Georgia Ports Authority, Brad Bossence – LeanCor Supply Chain Group,
Terry Layman – Forcum Lannon Contractors Carolyn Tynan – Georgia Power, Ani Agnihotri – USA Reemer E. Youmans III – Hugo Boss Fashions Inc.
India Business Summit and US India Business

(L to R) Jerry Weil – Bennett Thrasher PC, Ken Tock – Consolidated Chassis (L to R) Robert Colvin – Coca-Cola Co., Keith Woods – Coca-Cola Co.,
Management LLC, Richard Mazur – TRAC Intermodal LLC, Maurice Williams – Mid-America Overseas Inc.,
Tony Noles – Atlantic Container Service Inc., Steve Miller – LanPort Inc. Kenny Rigby – Graceway Trading Ltd.

(L to R) Yolanda Williams – U.S. Army, Les McKennie – (L to R) Andrew Grunder – G&D Integrated, (L to R) Jim Wappler – Future Forwarding Co.,
U.S. Army, Stacy Kageff – W.I.S. Logistics, Stephen Karen – G&D Integrated, Jack Rittenhouse – Brittany Stultz – Cavalor, Jeff Chavous – Southern States
Juan J. Flores – Florida Department of Transportation AGCO Corp., Bill Marona – G&D Integrated LLC, Neil O’Connell – Future Forwarding Co.
Office of Freight, Logistics & Passenger Operations

(L to R) Stewart Croucher – ShockWatch, Scott Morrow – Norfolk Southern Corp., (L to R) Chris Sheppard – Averitt Express Inc., Kent Williams – Averitt Express Inc.,
John Hoover – Norfolk Southern Corp., Coleman Lawrnece – Norfolk Southern Corp. Katie McWilliams – Cordele Intermodal Services Inc.,
Jonathan Lafevers – Cordele Intermodal Services Inc.
20 American Journal of Transportation ajot.com

Alliance of top 3 shipping lines Canada ‘Arctic passage’ still a ways off
could start mid-2014 Logistical challenges to large-scale sea ship- ing a year-round passage across northern Canada
Maersk Line said it expects which represents cargo owners ments within the Arctic Circle mean such trade will and the dangers of a drilling mishap are at the fore-
an alliance with its two closest in Asia, estimates the alliance not be a near-term rival to existing routes, a senior front of concerns, said Raitt.
rivals to start operating from the will have 42 percent of the Asia- Canadian official said. “I can tell you, one oil spill or accident in the
middle of the year after the tie-up Europe trade and 24 percent of Insurance companies are beginning to weigh Arctic is going to be a visual you do not want,” she
was approved by U.S. regulators. the trans-Pacific trade. the hazards of sea traffic across waterways in north- told a forum sponsored by the Canadian American
The industry has been bat- Shares in A.P. Moller- ern Canada and investors are mulling the potential Business Council.
tling overcapacity since the Maersk opened up 2.5 percent using Arctic trade routes, said Canadian Transpor- Specifically, officials need to help define navi-
financial crisis because new ves- after news of the U.S. approval, tation Minister Lisa Raitt. gable routes and decide which ships are fit to move
sels ordered before the downturn and were up 1.7 percent at 1011 “It is not imminent but it is possible,” she said in Arctic waters.
have flooded the market. This GMT, outperforming the main in Washington. “Bringing those gigantic container ships
has driven rates on the main Copenhagen index which was Shippers could trim thousands of miles on through areas where it is shallow, first of all, and
routes between Asia and North- down 1.2 percent. voyages between Asia and Europe if forecasts of there is not a lot of navigational markers, it is far
ern Europe to loss-making levels. “North America and the melting ice caps are fulfilled and energy interests riskier than other routes,” she said.
The so-called P3 alliance is U.S. in particular is a key ship- are eager to tap a region rich in oil and gas. Canada is chair of the Arctic Council which
between the world’s three biggest ping market. Therefore, the The U.S. Geological Survey estimates that, coordinates policy with United States, Russia and
container shipping lines - Maersk decision by the FMC is a very beneath its unspoiled natural scenery, the Arctic holds Nordic nations.
Line, a unit of A.P. Moller- important step towards overall about 13% of the world’s undiscovered conventional “I don’t think the Panama Canal and the Suez
Maersk, Switzerland-based MSC approval of P3,” a Maersk Line oil and 30% of its undiscovered natural gas. Canal have any worries in terms of competition with
Mediterranean Shipping Com- spokesman told Reuters. But there are considerable challenges to open- the Northwest passage right now,” Raitt said. (Reuters)
pany and France’s CMA CGM. With a global market share of
To cut costs, they have around 15 percent, Maersk Line
agreed to pool about 250 ships
which will operate on three
trade routes: Asia-Europe, trans-
is the world’s biggest container
shipping company, while MSC
and CMA CGM are number two
Deal reached to end month-long strike
Pacific and trans-Atlantic.
The approval from the U.S.
and three respectively.
Maersk says the alliance
at Canada’s largest port
Federal Maritime Commission will allow partners to operate Negotiators reached a deal to end the month-long the Unifor local, in a statement.
(FMC) takes effect on April with larger vessels and maxi- container truck strike that has crippled operations at More than 1,000 non-union drivers walked off
1, 2014 but will apply only to mise utilisation. Canada’s largest port and slowed the transport of hun- the job on Feb. 26 in protest over pay and services
routes to and from U.S. ports. “This means that they can dreds of millions of dollars worth of goods. at Port Metro Vancouver. Their unionized col-
The alliance still needs approval get significant improvements in “This agreement means the port is open again leagues voted to join the strike days later and have
from Chinese and European their unit costs relative to their for business starting tomorrow morning,” said Brit- been on the picket line since Mar. 10.
regulators before it can become competitors,” said Lars Jensen ish Columbia premier Christy Clark at a press con- The core issue in the month-long job action
fully effective. from maritime analysis com- ference in Victoria, the provincial capital. was long wait times at the city’s port facilities,
Maersk said it expected to pany SeaIntel. The deal came after provincial politicians which drivers say cut into their profits. They are
receive Chinese and EU approval He estimates the alliance spent three days debating back-to-work legislation, paid by the haul and do not make money while
before the middle of this year. will operate with vessels that on which would have forced the drivers to return to waiting in line to load or unload cargo.
“We expect that the P3 can be average are 2.000-3.000 TEU their rigs. That legislation has now been withdrawn The drivers were also demanding higher rates
started mid-2014,” it said. (twenty-foot equivalent unit con- by the province. and better regulation to stop rampant undercutting
The grouping has been crit- tainers) bigger than competitors. “We have been clear from the very beginning in the industry.
icised by cargo owners because Analysts from investment that negotiation is the only way to achieve labor The strike paralyzed Port Metro Vancouver’s
of fears it could dominate key bank Alm. Brand Markets fore- peace,” said Jerry Dias, national president for four container terminals, slowing the export of
shipping routes on the trans cast the tie-up could lower Unifor, which represents the union drivers. “We commodities like lumber, pulp products and spe-
Pacific and Asia-Europe trades. Maersk Line’s costs by up to 6 were not going to have a plan imposed on us.” cialty grains, and the import of consumer goods
The Asia Shippers Council, percent. (Reuters) The new deal, based on a previous plan put and construction materials.
forward by government and the port, was signed by A provincially appointed mediator will now
Premier Clark, along with representatives of both meet with the drivers and other participants to work
the union and non-union drivers. through outstanding issues and start implementing
(CONCERNS – continued from ginalize the domestic capability.” “This is an agreement that working truckers reforms aimed at improving pay, wait times and
page 4) Secondly, Lewis-Manning can be satisfied with,” said Paul Johal, president of creating more oversight in the industry. (Reuters)
fleet carried 50 million metric suggested that foreign crews do
tons of cargo in 2013, chiefly on not necessarily possess the special
the Great Lakes/St. Lawrence training and experience required
waterway. to navigate in the region’s coastal
and inland waters, often during
Three Reasons for severe weather.
Concern Raised Thirdly, he pointed out that
Lewis-Manning gave three “our mode of transportation is
main reasons why foreign- the greenest and safest form of
owned and foreign-crewed ves- transportation in existence.”
sels should not be encouraged In concluding his presenta-
to move cargo between Cana- tion, Lewis-Manning said the
dian ports. CSA would like to see the govern-
“First, there is no assurance ment “use the agreement and other
that these vessels will continue policies as mechanisms to grow
to trade in Canadian waters in Canadian shortsea shipping” –
the long term. thereby providing a “windfall” for
“The current economic the domestic marine sector.
downturn in the global shipping Following the CSA presen-
industry encourages foreign ship- tation, a Committee member
owners to seek unique market referred to a Transport Canada
opportunities, such as Canadian message in January indicat-
maritime feeder services. The ing that discussions within the
Canadian domestic shortsea ship- CETA context have been held
ping fleet cannot do the same. on eventual maritime feeder
Consequently, when global trade services for container cargo
picks up, there is little assurance between the ports of Halifax and
that foreign vessels will remain Montreal onboard EU-registered
active in maritime feeder services vessels. Replying to a question,
and they could seek opportunities Mr. Lewis-Manning remarked
that are more lucrative elsewhere that “our members are not spe-
globally. Such an unpredictable cifically working on that trade at
situation, if encouraged by the the moment, but that’s not to say
agreement (CETA), could mar- it won’t be a future opportunity.”
apri l 7 - 20, 2014 Maritime Section 21

Newly re-established SeaLand

announces leadership team
SeaLand, the newly founded in West and Central Asia, brings
intra-Americas regional car- 12 years of experience with
rier of the Maersk Group, has Maersk Line, including roles
announced the appointment of its in Dubai, Malaysia, Singapore,
industry-leading executive team
which will fulfil the company’s
mission of delivering greater ser-
Honduras, Panama and Costa
Rica. In his new role, Shane will
play a key role in developing,
CaroTrans Direct
vice stability and commitment,
as well as a higher level of cus-
monitoring and evaluating over-
all corporate strategy. secure – expedited – dependable
tomer-focused service tailored to Thiago Covre will join the
the customer’s needs. team as Chief Liner Officer
The new team includes: (CLO). Thiago brings over 10 Value-added, direct CaroTrans LCL and FCL services
Alfredo Di Palma will join years of extensive knowledge in
SeaLand as Chief Commercial line management, having most deliver supply chain efficiency. With less handling,
Officer (CCO) in charge of all recently served as Maersk Line’s
commercial efforts for the com- Line Manager for East Coast there’s less risk so your cargo moves with greater reliability
pany. Alfredo comes with an South America to Europe. His and stability. Transshipment costs are eliminated
extensive experience in the Amer- responsibility includes building
icas trade, including postings in a solid network based on innova- and transit times are faster.
APM Terminal’s Port Elizabeth tive products, both independently
facility, as well as being port Man- and through strong VSA cooper-
ager in Puerto Cortes (Honduras). ation, his area of expertise since CaroTrans direct services = better containerized ocean transportation.
Currently, Alfredo holds the role joining Maersk Line in 2004.
of Commercial Manager in charge Timothy Child will be respon-
of Central America countries for sible for overall operations as
Maersk Line. Chief Operations Officer (COO). www.carotrans.com
Maria Batista has accepted Tim is a Maersk Line veteran, with
the role of Head of Customer a career spanning 25 years in areas
Service. Maria has over 20 such as trade management (includ-
years of experience with Maersk ing 7 years of trade experience
Line and Safmarine, including
postings in Miami, Costa Rica,
with Central America and Carib-
bean), capacity management, and
Fednav pioneers the use of drones
Toronto, Charleston and Char-
lotte, with direct impact over
export & import customer ser-
external and inside sales.
All appointees will be
on-board within the next 2-3
in polar shipping
vice management & documenta- months, joining Craig Mygatt Fednav recently became the first shipping The backdrop for the application of this
tion. She will be responsible for as SeaLand CEO. company to employ drones, or Unmanned Air emerging technology was the Labrador Coast. The
building collaborative relation- “I am thrilled to welcome Vehicles (UAV), for ice reconnaissance on a com- coast experiences the heavy winter conditions of
ships in order to provide a world these outstanding executives mercial voyage. The Umiak I, one of Fednav’s the Canadian Arctic—thick first-year ice that is
class customer experience. to SeaLand’s leadership team.  most powerful icebreakers, used a variety of video- heavily deformed under wind-induced pressure
Shane Sawyer has been Their exceptional strength and equipped drones to scout ahead of the vessel in and remnants of multi-year and glacial ice that are
appointed as Chief Finance Offi- industry experience will play the ice-covered waters of the Labrador Coast. The embedded in the ice cover—which pose great chal-
cer (CFO). Shane, who currently a key role in achieving our goal was to provide the captain and officers with lenges for navigation.
leads Regional Business Perfor- goals,” said Craig Mygatt, CEO detailed real-time visual information on the local “The use of UAVs is proving to be extremely
mance function for Maersk Line of SeaLand. ice conditions. beneficial to identify many ice features that should
Enfotec, a Fednav subsidiary and industry be avoided ahead of the vessel, as well as identify-
leader, has for 20 years specialized in providing ing open water leads to improve voyage efficiency,”
Governor Deal to sign budget advanced ice imagery and analysis to vessels oper-
ating in difficult ice conditions. With advances in
says Thomas Paterson, Senior Vice-President, Ship
Owning, Arctic, and Projects of Fednav Limited.
recent years in the quality of information derived “In addition, the deployment of drones fitted with
with $35 million more from satellite and radar images and conventional top-quality cameras, gives the ice navigator another
ice charts, this new method of ice detection allows useful aid when making important decisions while
for port deepening for the immediate capture of subtle ice features transiting heavy ice regimes, and in turn, improved
such as ridges, leads, and fractures. The UAVs safe navigation.”
The $35 million in addi- for private companies by $174 deliver critical high-quality, short-range visual With this application of modern technology,
tional port deepening funds pro- million a year. observations allowing navigators to see beyond the Fednav and Enfotec remain at the leading edge of
posed by Georgia Gov. Nathan The new funding was part normal horizon for strategic navigation. ice navigation efficiency.
Deal has been approved by the of Governor Deal’s FY2015
state legislature and now awaits budget request, and was
the governor’s signature. included in the final version of
Along with previous fund- the state spending plan passed
ing, Georgia has now allocated by the General Assembly.
$266 million, fulfilling the state’s “The leadership from the
portion of the Savannah Harbor General Assembly and the gov-
Expansion Project (SHEP). ernor, pressing forward on the
“Lawmakers across Geor- harbor deepening, is a testament
gia recognize that improving the to the importance of Georgia’s
Savannah Harbor is critically ports to communities throughout
important to the continued eco- the Southeast,” said GPA Board
nomic health of this state and Chairman Robert Jepson.
region,” Deal said. “That unified Approved by the Environ-
vision is also evident among our mental Protection Agency, the
delegation to Washington, which Fish and Wildlife Service and
has worked tirelessly to secure the the National Marine Fisheries
The Umiak I, one of Fednav’s most powerful icebreakers, used a variety of video-equipped drones to scout
federal portion of the project costs. Service, the project is anticipated
ahead of the vessel in the ice-covered waters of the Labrador Coast.
It is now long overdue for the fed- to cost $652 million. The Corps
eral government to fund their por- of Engineers study shows a 5.5-
tion of this federal project to make
U.S. manufactured products more
to-1 benefit to cost ratio, mean-
ing that for every dollar spent on
Harbor widening and deepening begins
competitive overseas.”
Deepening the Savannah
the deepening, the nation will
reap $5.50 in benefits.
at Port Canaveral
Harbor from 42 to 47 feet will “The $266 million in state The long-awaited widen- “The Canaveral Port Author- we complete the deepening and
accommodate an increase in the funding for SHEP is enough to ing and deepening of Canaveral ity’s decision to utilize alternative widening project.  Once the still-
number of super-sized container allow significant progress on the Harbor to allow larger ships federal processes that allow sea- pending WRDA bill is passed, the
vessels transiting the Panama project, including environmental greater safety margins for sail- ports to self-fund required studies Army Corps will be required to
Canal after its 2015 expansion. improvements such as rerouting ing in and out of Port Canaveral and permits allowed us to arrive fund dredging costs, but there is no
With a deeper channel, larger freshwater flows, and improve- is scheduled to begin next month at this critical juncture 1­0 years guarantee the WRDA will pass or
and more heavily laden ships can ments to the outer harbor,” said with completion in November earlier than taking the traditional keep all provisions in place.”
arrive and depart with greater GPA Executive Director Curtis 2014. The $35 million project route,” said Port Canaveral CEO “This deferred approval could
scheduling flexibility. These “Post Foltz. “Besides deepening the to widen Port Canaveral’s 400- John E. Walsh. “However, this cost the Canaveral Port Authority
Panamax” vessels will lower ship- channel, the harbor expansion feet wide harbor by 100 feet and is a bittersweet moment because an unbudgeted $1.3 million per
ping costs per container slot. will also include general navi- deepen the entrance by two feet the Army Corps of Engineers has year for future maintenance of the
A U.S. Army Corps of gation improvements, such as to 46 feet cleared the final two deferred approval to fund main- harbor,” Walsh added. “Since this
Engineers study has shown that wider channel turns and a larger U.S. Army Corps of Engineers tenance dredging of the harbor (WIDENING – continued on
SHEP will reduce shipping costs turning basin.” permitting hurdles last week.   via a Section 204f process after page 23)
22 American Journal of Transportation ajot.com

Intermodal &
Logistics News
Canada bill to require railways Conductors’ union accepts
to move minimum grain volume CN Railway’s bargaining offer
The Canadian government introduced legislation that would require the country’s
two big railways, Canadian National Railway Co and Canadian Pacific Railway Limited, The Teamsters union representing contract by a vote of 891 to 852, which
to each move at least 500,000 tons of grain weekly from April 7 to Aug. 3, 2014. conductors, yard workers, and traffic the union said was because CN was not
Canada’s Conservative government ordered the railways on March 7 to more than coordinators agreed to meet with Cana- respecting rest periods under the current
double their weekly grain movement over a four-week period. (Reuters) dian National Railway Co one last time contract. CN has declined to comment on
in hopes of reaching a new a settlement, the charge.
Canada’s biggest rail operator said. After the failed vote, CN initially
CN Rail’s labor negotiation offer, asked to settle unresolved issues through
CN disturbed by Canadian government was on the condition that the Teamsters
Canada Rail Conference (TCRC-CTY)
final binding arbitration, a process in
which an arbitrator decides the final terms
legislation reguarding grain transport accepts a binding arbitration should talks
fail.
of the contract.
The dispute comes as CN works to
CN expressed disappointment with financial harm to CN, it could drain traffic The union, which represents some comply with a government order to move
Canadian government legislation tabled away from Canadian ports and cause the 3,000 CN workers, will meet with the 5,500 grain cars a week to address a mas-
by Agriculture Minister Gerry Ritz and loss of jobs, reduce investment and under- railroad next week, the Montreal-based sive bottleneck. The backlog is due to a
Transportation Minister Lisa Raitt to mine tax revenues across Canada.” company said. record-shattering harvest in 2013, exacer-
increase regulatory intrusion and over- In addition, the legislation would The latest offer came after members bated by transport disruptions due to an
sight for rail grain transportation, and to give the Canadian Transportation Agency had narrowly rejected a second tentative extremely cold winter. (Reuters)
introduce new rules for the extension of a highly intrusive role in railway operat-
interswitching limits in the rail industry. ing matters in arbitrating service-level
Claude Mongeau, CN president and
chief executive officer, said: “CN is dis-
turbed that the government has decided
agreements for specific shippers, with the
potential to cause costly inefficiencies in
the system.
Canada safety board urges faster
to punish railways with re-regulation for
an outsized crop and winter conditions
“CN firmly believes that commer-
cial incentives and effective supply chain
phase-out of old rail tankers
totally beyond their control. The legisla- collaboration are the best ways to pro- The Transportation Safety Board of cars but which can become liable in an
tion does not address the root cause of the mote rail investment in infrastructure and Canada renewed its call for the speedy accident, would like aggressive phase-
current grain situation and will do little to resources to transport increased volumes phase-out of older oil-by-rail cars in outs of the older DOT-111s.
move more grain, now or in the future. We of grain and other freight.” light of last summer’s inferno that killed The U.S. Railway Supply Institute,
also have deep concerns about the poten- Mongeau said the ministers’ action 47 people in an oil train explosion in the representing tank car owners and lessors,
tial consequences of the government’s represents a missed opportunity to take Quebec town of Lac-Megantic. had estimated in December that modifi-
proposed new interswitching rules.” an even-handed approach and encourage “A long and gradual phase-out cation of the legacy tank cars could take
Interswitching involves the transfer supply chain collaboration. Instead, they of older-model cars simply isn’t good 10 years but in February it suggested
of traffic from the lines of one railway decided to subject railways to an unnec- enough,” Transportation Safety Board the time for addressing the highest risks
to the lines of another railway. Currently, essary layer of reporting, oversight and Chair Wendy Tadros told a House of could be shortened if crude and ethanol
where a shipper is served by only one rail- regulation that can only result in greater Commons committee examining whether tank cars were modified first.
way, the shipper is entitled to transfer its rigidity in the supply chain and under- Canada’s safety is adequate as much more Transport Minister Lisa Raitt has 90
traffic to another railway at a regulated mine innovation. oil is sent by rail. days, till April 23, to respond to the Trans-
rate set by the Canadian Transportation “If the government is going to go This echoed remarks she made on portation Safety Board’s recommendations.
Agency if the shipper’s facility (either through with this legislation, we urge it Jan. 23 when her agency and the U.S. Because of how tanker cars travel
at origin or at destination) is located any to also subject grain elevator companies National Transportation Safety Board back and forth across the U.S. border,
point within a 30-kilometre radius of to greater regulatory oversight in order to made initial recommendations stemming Canadian policymakers want to see safety
where the two railways connect. ensure proper coordination and adequate from the Lac-Megantic crash and other standards implemented jointly with the
Mongeau said: “The government is resource allocation, with a view to creat- oil-by-rail accidents. United States.
opening the door to extended interswitch- ing surge capacity when crops are more Regulators are focusing on DOT- Raitt said in early January that the
ing limits for specific regions or goods sizable than the norm.” 111 tanker cars which are used to carry two countries would introduce new safety
without any due process to assess the Mongeau concluded: “It’s a sad day for oil. New DOT-111s are being built to standards “fairly soon”.
potential consequences for railways and the Canada when the government decides to hit safer standards but the question is what to One idea that has been broached has
Canadian economy. This action could hit one sector of the economy in order to placate do with the large number of older ones. been to force the railways to avoid cities
Canada’s railways by opening their busi- a vocal constituency, instead of fostering Tadros said all the cars in the Lac-Megan- when they move crude oil, but railroads
ness to unfair poaching by U.S. railways sound commercial solutions to strengthen tic disaster were older. tend to go through cities and the goods
without any reciprocity. Beyond causing Canada’s transportation infrastructure.” “As you can see from this photo, even sometimes leave from downtown ports.
the cars at the end of the train... - these “These railways were built through-
are the cars that were moving relatively out Canada, and cities grew up along the
CN delivers 4,000-plus hopper cars slowly when they derailed - even those
cars were very badly damaged, and that
railways,” Tadros said.
“I’m not sure that it’s possible to
has taught us something,” Tadros said. avoid every urban area. We would rather
to Western Canadian grain elevators The railways on both sides of the see a systemic approach that would have
CN said it spotted 4,456 hopper cars ing, however, CN is concerned that grain border, which often do not own the tanker those older cars phased out.” (Reuters)
for loading at country grain elevators in elevator terminals on Canada’s West
Western Canada during the grain-crop Coast could soon hit capacity, limiting
Week 33 just ended. This marked the third
week in a row that CN has delivered more
total export volumes before the Great
Lakes shipping lane re-opens and a strong
SHIFT Freight announces 2014 GRI
than 4,000 grain cars to Prairie elevators, export grain program can start at the Port SHIFT Freight, an asset-light LTL carrier that’s dedicated to changing the way com-
averaging 4,366 cars per week, or 23 per of Thunder Bay, Ont. panies think about freight, announced it will be taking a general rate increase on non-
cent greater than CN’s average winter car- “The Great Lakes have been frozen contractual business of 4.9 percent effective March 31, 2014.
spotting performance. over by this winter’s polar vortex to a The effects of the increase will vary depending on geography, lane, class, weight,
Claude Mongeau, CN president and degree not seen in several decades,” said and dimensions.
chief executive officer, said: “We began Mongeau. “We need urgent support from
ramping up our grain loadings as soon the Canadian Coast Guard to open naviga-
as we got a meaningful break from this tion channels if we are to meet the federal (ACQUISITION – continued from page 1) approximately 17,000 company-con-
harsh winter’s extreme cold tempera- government’s Order in Council requiring global supply chains, managed transpor- trolled containers and has access to more
tures. We are pleased to see our network CN to move 500,000 tonnes, or close to tation, LTL, brokerage, expedited and than 100,000 additional big and small
regaining fluidity. That enables our team 5,500 cars of grain per week.” intermodal. His perspective will provide boxes. The majority of the company’s
of dedicated railroaders to move more Mongeau added: “Railways are not valuable input to our decisions.” intermodal services will be rebranded as
grain to address the backlog of traffic the only ones facing a significant chal- The transaction makes XPO Logis- XPO Logistics.
resulting from the 100-year crop har- lenge in moving this 100-year grain crop. tics the third largest provider of intermo- Credit Suisse Securities (USA) LLC
vested last fall.” It is becoming clear that other supply dal services in North America, and the served as financial advisor to XPO Logis-
Mongeau said tackling the significant chain participants - grain elevator compa- largest cross-border Mexico provider. Its tics, and Wachtell, Lipton, Rosen & Katz
backlog will require solid end-to-end col- nies, shipping lines and ports -- are also contractual arrangements with rail carri- acted as legal advisor. Morgan Stanley &
laboration among all grain supply chain straining to handle the harvest given a ers provide access to more than 60,000 Co. LLC served as financial advisor to
stakeholders. full 50 per cent increase in the amount of miles of network rail routes. To support Pacer, and Winston & Strawn LLP acted
With rail volumes quickly increas- grain to move to export markets. these operations, the company manages as legal advisor.
apri l 7 - 20, 2014 NOrt h Am erica’s TRANSPORTATION & LOGISTICS n ewspaper 23

Calendar of Events
ICC of NJ hosts Annual Steamship Night
The ICC of NJ hosted their Annual Steamship Night at JL Vilaggio Restaurant in
Carlstadt, NJ on March 19th. Over one hundred industry execs listened to guest speaker,
Bill Payne, president of NYK Line, discuss trends of the steamship line business.
For more in-depth calendar & event listings go to www.ajot.com.
To add to the calendar listings go to: cal@ajot.com.

04/09 Westconn International Trade Association will hold its monthly meet-
ing at Giovanni’s WaterEdge in Darien, CT starting at 6:00PM. The
guest speaker will be Timothy Kutka of Nordana. For more informa-
tion go to www.westconn.org.

04/10 The Traffic Club of Newark will hold its Intermodal Night at the Gal-
loping Hills Caterers in Union, NJ starting at 6:00PM. The keynote
speaker will be Joseph LoCastro of J&E Transportation. For more
information contact Jim Kelly at 800-966-0008 or email: jamesk@
targettrans.com.

04/15 - 04/17 The 6th Annual Critical Commodities Conference will be held at the
Hilton Riverside New Orleans. Keynote speakers will include: Wolf-
gang Freese of Hapag Lloyd, Daniel DiMicco (retired) of Nucor and (L to R) Esra Cevher – Turamco Lines, Tom Demmers – MOL, Thomas DeMarino – APL,
Russ Boullion of Westlake Chemical. For more information contact Breck Benja – Alba Wheels Up International, Jim Griffith – OOCL, seated: William Payne
Jimmy Baldwin at (504) 588-2981 or email: j.baldwin@sailsla.com. – NYK Line, Kelly Kavanaugh – Salson Logistics, Caralyn Puglisi – Yusen Logistics
04/29- 05/01 The North East Association of Rail Shippers will host its Spring Con-
ference at the Providence Marriott Downtown, RI. For more informa-
tion contact Joe Gearin at (603) 430-3746 or email: joe@nears.org.

(FIELD – continued from page 16) US; ownership is neutral.)

will continue to increase. O’Connor terms the bank’s financing
“Financing can make a critical differ- role “advantageous” in Gamesa’s success
ence,” says Craig O’Connor, the bank’s in winning the contracts.
office of renewable energy and environ- Can the Ex-Im Bank actually tip the
mental exports director. He cites 18-year scales?
terms for renewable projects as “competi- Cutting the bank’s mandate “would
tive” with other lenders. have a chilling effect on activities,” says
Late last year, the bank lent a total Thompson. However, he adds that even
of $162 million to three wind farm proj- with Ex-Im Bank assistance, American (L to R) Jim Griffith – OOCL, (L to R) Regina Terranova – MSC,
ects in Latin America, one each in Costa solar or wind power manufacturers may Madalena Nativo – Seamates, Walter Carney – Ambassador,
Rica, Honduras and Uruguay. The wind be fighting a losing battle to low-cost Birgitta Nyberg – Seamates Ana Cepeda – Vanguard Logistics
turbines were manufactured by a Penn- countries. “Without government protec-
sylvania-based subsidiary of the Spanish tion such as outright subsidies, American
company Gamesa. (Under lending guide- or European producers will find it diffi-
lines, manufacturing must be done in the cult to compete with China.”

(PARTNERSHIP – continued from The two MD-11s will also be needed

page 15) in the coming years after Lufthansa
told Reuters. decided to postpone a decision on whether
to firm up an option for the first of what
Belly & Freighters could be a further five 777Fs.
Lufthansa Cargo reported a 2013 oper- Postponing the decision means any
ating result of 77 million euros, a 27 percent new 777F plane will only now be deliv-
fall on 2012 and below what it had expected ered in 2017 at the earliest, instead of
at the start of 2013, Garnadt said. Revenue 2016. (Reuters)
fell 9.2 percent to 2.44 billion euros.
The company said it hoped to (L to R) Fred Israel – VCPB, Enzo Dinten – Red Trucking, Andrew Pacheco – Shipco
increase the amount of goods it carries (SHIFT – continued from page 15) Transport, Ed Makowski – Hamburg-Sud, Caralyn Puglisi – Yusen Logistics,
by 5 percent this year and significantly than 400,000 tonnes per year. Without this Scott Gilligan – Red Trucking, Breck Benja – Alba Wheels Up International
improve operating profit. modal shift, the compound annual growth
In the summer, when travel peaks, rate for air freight could have reached 4.5%
Lufthansa Cargo transports over 50 per- from 2000 to 2013, instead of the 2.6% actu-
cent of its freight in the bellies of Luf- ally achieved.”
thansa passenger aircraft. Garnadt said Jansen said the air freight sector
having the flexibility to mix freighters needs to find appropriate responses to the
and belly capacity was key to survival in main development areas highlighted if it
the present market. wishes to minimise or reverse its market
“Those with only freighter capacity share losses.
will have tough times ahead,” he said. “While shippers would like to focus
It will be flying four new Boeing attention on air freight rates, there are
777F freighters this year. Rather than other aspects at play,” said Jansen. “For-
expanding its fleet, they will be used to warders require improvements in terms
replace four MD-11s. Garnadt said that of fuel efficiency, reliability and use of (L to R) Brigite Boroff – Schenker, (L to R) Joe Saggese – NAAA, Catherine
two of those MD-11s had been sold but e-communication, while respondents also Ute Bender – HLI Logistics, Avolio – AJOT, Charles McGinley – MPA,
two would be kept in reserve in case highlighted the importance of reduced Claire Biss – MSC Aileen Tatarian – Pegasus Maritime
demand picked up. door-to-door transit times.”

(WIDENING – continued from page 21) of the project will be ready in November
cost  always has been the responsibility 2014 for the arrival of added large ships.
of the federal government, we are con- Channel deepening of the remainder of the
fident with meetings set in Washington three-and-a-half mile length will continue
next week,  we can make legislative and through November 2015. 
administrative progress toward a resolu- “The support the Port Authority
tion. Congressman Bill Posey has been received from Florida Governor Rick
a continued ally of Port Canaveral to get Scott and the $24.4 million in state fund-
this project approval and is helping with ing for the Port’s channel project, as well
the last Section 204f pieces, as well.”   as the backing of our  federal congres-
The uplands work at the Canaveral sional delegation, has been invaluable,”
Harbor entrance will begin next month Port Authority Commission Chairman
followed by cutting the land and building Tom Weinberg said. “They understand
a retaining wall during the next 6 months the importance of this project for the eco-
and conclude with dredging at the widen- nomic benefit of Brevard County and all (L to R) SH Bae – UASC, Joe Saggese – NAAA, Joe O'Brien – Virginia International
ing for the next three months. This portion of Central Florida.” Terminals, Frank Naughton – Virginia International Terminals
Location, Location, Location
Estimated Travel Time from
Philadelphia/South Jersey Port:

2 - 3 Hours

1 Day

2 Days

0 250 500

Miles

Map Prepared by:

Estimated Travel Time from

Philadelphia/South Jersey Port:

2 - 3 Hours

Philadelphiaʼs Maritime Experts

1 Day

2 Days

0 250 500

Miles

Map Prepared by:

Your gateway to two thirds of the

US population and portions of Canada in under 2 days.
www.shipphillyfirst.com