b'18American Journal of Transportation ajot.comACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1AgTCS Friedmann urges West Coast port partnersOONNEESSHHIIPPto work together C onCo nttaaiinneerrss,,RROORROO,,BBrreeaakkbbuullkkCCaarrggooBy Stas Margananis, AJOTIn a wide-ranging briefing toFriedmann said it is incum-Northern California customs bro- bent on those who truly rely on kers and freight forwarders, Peterthe West Coast ports, including Friedmann, executive director ofagriculturalexporters,customs theAgricultureTransportationbrokers,freightforwarders, Coalition(AgTC)warnedthatILWUandtheportsandport acollaborativeeffortbyportscommunities to work together to exporters,forwarders,brokerspreserve and increase the West and longshore labor is essentialCoast market share.to stem the loss of West CoastThat market share has been RORO Customer ServicecontainerbusinesstoEastandin dramatic decline for the lastA SERVICE AL1 SERVICE AL2 SERVICE 877-918-7676Gulf Coast ports. ten years. Cuto Friday Cuto Thursday Cuto Monday Export Customer ServiceFriedmannwasspeakingAs an example, shippers, for- FROM NEW YORK LOLO RORO LOLO LOLO 800-225-1235to a video conference hosted bywarders, brokers and the ILWUTO Transit Time Transit Time Transit Time Transit Time Export Documentation theCustomsBrokersandFor- need to make themselves heardANTWERP 1620 18888-802-0401wardersAssociationofNorth- inCaliforniasstatecapitalatDUBLIN 12Import Customer ServiceBELFAST 13 ernCalifornia(CBFANC)andSacramento to prevent increasedGTEBORG 21888-802-0403was introduced by its president,and higher cost mandates beingHAMBURG 13 17 15 22 LogisticsEvey Hwang. imposed on imports and exportsLE HAVRE17 866-821-7449transiting California ports. LIVERPOOL 9 13 Credit & Collectionsl oSS oFW eStC oASt LONDON GATEWAY20 19 888-225-7747M ArketS hAre h igherUS r AilroAdC oStS ROTTERDAM11 20Inhisremarks,FriedmannAndS loWerS erviCenoted that cheaper land, reducedAnother loss of market share regulationandcloserproxim- iscomingfromthediversionHouse Appropriations Committee approves ity to East Coast consumers hasofWestCoastbusinessgoing helpeddrivetheexpansionofthroughtheCanadianPortsofFY2021 Corps of Engineers fundingnew warehousing and upgradedPrinceRupertandVancouver: terminal facilities at ports suchWhat we are seeing here is thatOnJuly13th,theHouseHarbor Maintenance Trust FundCorps for dredging and structure asNorfolk, Charleston, Savan- the rail service provided by theAppropriations Committee marked- (HMTF).Thisisa$50mil- repair at key Great Lakes ports, nah and Houston. CN (Canadian National) railroadupandapproveditsFY2021lion increase from last year andincluding the following: HewarnedthatincreasedisdeliveringcontainersinhalfEnergy and Water Developmentrepresents an estimated 92% of Calumet Harbor: $6.236 M regulationinCaliforniaaimedthe time and at half the price toAppropriations Bill. The annualHarborMaintenanceTaxrev-Chicago Harbor: $3.8 M atcurtailingindependentcon- Chicago,comparedtotheU.S.legislation provides funding forenuefromthepreviousyear. Burns Harbor: $4.467 M tractor truck drivers and higherrailroadsdeliveringcontainersboth the Army Corps of Engi- Overthelastdecade,AGLPA Indiana Harbor: $7.576 M feesforzeroemissiontrucksto Chicago from the West Coastneers and the U.S. Departmenthasbeenworkedwithcoali-Detroit River: $7.228 M andequipmentisaddingaddi- portsThe U.S. railroads areof Energy. Chaired by Congress- tion partners to increase overall Rouge River: $1.132 M tional costs to West Coast portscharging$600morepercon- woman Marcy Kaptur (D-OH),HMTF spending and catch up on Saginaw River: $3.057 M atatimewhentheircompeti- tainer than the Canadians. the Energy and Water subcom- theCorps$550millionmain-Duluth/Superior: $5.458 M tors at East and Gulf Coast portsInpastdiscussions,Fried- mittee included funding for thetenancebacklogintheGreat Buffalo Harbor: $1.208 M impose much less. mann has cited the problem offollowing key Great Lakes navi- Lakes. The ultimate goal is for Ashtabula Harbor: $2.293 M Friedmann cited the examplehigher cost and slower deliverygation priorities: Congress to spend 100% of the Cleveland Harbor: $8.761 M ofaproteinexporter,whohadservice by the two railroads ser- revenuecomingintothetrust Toledo Harbor: $5.738 M shifted transporting some contain- vicing U.S. West Coast ports: theS ool oCkS fund. Legislation enacted earlier Erie Harbor: $1.618 M ers away from West Coast portsBurlingtonNorthernSantaFeThelegislationprovidesthis year provides that expendi-Green Bay Harbor $3.084 M becauseofthe2014/2015labor(BNSF)andtheUnionPacific$123.22million,asrequestedtures from the trust fund will not Sturgeon Bay $1.534 M slowdown at West Coast ports: (UP) railroads. by the Corps, to continue con- be counted against Congressio- The legislation also includes Cargo has a long memoryThecontinuedproblemofstruction of a new large lock atnal budget caps.a$570millionslushfundof and these disputes have long termhigher cost and slower deliverySaultSteMarie,Michiganinadditionalfundsfordeepdraft negative impacts on the viabilitycreates an important competitiveFY2021. Additionally, the Com- h Arbord redging And harbors that the Corps of Engi-of West Coast ports, he warned. disadvantage, Friedmann said. mitteeprovides$59.2millionS trUCtUrer ePAir neerswillassigntoindividual A key element in the man- for construction of locks not onThelegislationincludesprojects when they develop their agement/laborproblemontheC hAllengeS ForUStheinlandwaterwayssystem.amountsasrequestedbytheworkplan in early 2021.PacificWestCoastisthatthee xPorterS Sincethereareonlyahand-PacificMaritimeAssociationU.S.agriculturalexport- fuloflocksnotontheinland is represented by mostly oceaners have held their own duringsystem,thislanguageismost carriers,whowouldmovetherecenteconomicandtradelikely a non-earmark means ofGulf Stream Marine pursues their ships to the East Coast at adownturnanddislocationsdirectingadditionalfundingto drop of the hat and so they haverelated to the coronavirus. How- the Soo Lock construction proj- asset acquisition of Coastal noloyaltytotheWestCoastever, trade disputes with Chinaect. Keep in mind that Congress ThismeansthattheILWUand the United States plus highercurrently prohibits the practiceCargo and Gulf Coast Storage(InternationalLongshoreandcosts accessing U.S. West Coastof earmarking funds to specific Warehouse Union) needs to actports are adding to costs and inprojects. Last years appropria- GulfStreamMarine,Inc.Thesestrategicallylocated as the adult in the roomRightsomecasesresultinginlossestionbillincludedsimilarlan- (GSM) has announced that itmarineterminalscomplement now, there is no real negotiationin markets, such as in soybeans,guageandallthefundswereisexpandingitsfootprintwithGSMs growing network through-during contract talks, the ILWUhay and other products. ultimatelydirectedtotheSootwo additional terminals, namelyout the U.S. Gulf, now operating demands and the PMA eventu- AcriticalneedfortheseLock project. Should this occurthe Care terminal at the Port ofintenterminalsinthreeGulf ally gives in. They (PMA) dontexporters is to be able to accessagain,theSooLockprojectHouston in Texas, and the PortCoast States.careaboutthecostsbecauseimport containers that need to bewould receive a total of $182.42ofPascagoulainMississippi,The Care terminal in Hous-they can always move. returnedtoAsia.Theseimportmillion for FY2021. This levelthroughanassetacquisitionton is a 30-acre facility focused Unless,themovetoEastcontainerscost-efficientlysup- of funding will keep the projectfromCoastalCargoofTexason handling steel products and andGulfCoastportschanges,port containerized exports. Whenon schedule. Inc. and Gulf Coast Storage Inc. bulk cargoes. the ILWU will face the loss ofthese import containers becomeGSMexpandsitspartner- The terminal in Pascagoula many members, Friedmann said,less available due to loss of ser- o verAllhMtF S Pending ship with the Port of Houstonprovides services to forest prod-if it does not stop the loss of con- vicetoWestCoastparts,theyThecommitteeincludedandislookingforwardtoitsucts and steel customers and has tainer business to East and Gulfincrease the cost and time deliv- a total of $1.68 billion in esti- newpartnershipwiththePortthepotentialtoaccommodate Coast ports. ery of U.S. exports to Asia. matedexpendituresfromtheof Pascagoula. other cargoes.'