Ports & Terminals

Lytle Hails Port of Oakland’s 2016 Turnaround

Port of Oakland executive director Chris Lytle said in his “State of the Port” address that “we are on a roll” as the Port racked up 2.37 million twenty foot containers in 2016, a 4% increase from 2015. Containerized exports were up 10.5% in 2016 despite the high value of the U.S. dollar. Exports accounted for 52% of the Port’s loaded container volume in 2016. Imports accounted for the rest. Loaded container volume rose to 1.83 million twenty foot containers, an increase of 7.6% over 2015. Lytle is predicting a 3-4 percent increase in total volume for 2017 and a 10% increase in exports. On January 12th, Lytle told a luncheon audience sponsored by Women In Logistics and the Pacific Merchant Shipping Association (PMSA) that the Port had come a long way since his last speech in January 2016. At that time, the Ports America terminal bankruptcy resulted in the shutdown of Oakland’s Outer Harbor terminal. At the same time, continued truck congestion problems slowed pickups and deliveries at terminal gates causing major delays and dislocations.
Chris Lytle, Executive Director - Port of Oakland
Chris Lytle, Executive Director - Port of Oakland
Lytle said he did not panic because the Outer Harbor capacity was re-directed to Oakland’s other container terminals - Oakland International Container Terminal (OITC) and TraPac- with the result that “we not only retained the business but added volume.” Lytle ascribed the 2016 success to the following factors:
  • A new appointment system for trucks improves efficiency of pickups and deliveries of containers.
  • A new night time service for truck pickups and deliveries reduces congestion during the day.
  • A GPS system identifies truck congestion at terminals and allows for terminals to better deploy resources.
  • A cooperative labor environment fostered by the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) has improved productivity.
Another success for the Port of Oakland is that the Port’s revenue bonds have been upgraded by Fitch, the bond rating firm. Fitch increased the Port’s ratings to an A from A-. Fitch has also affirmed the A+ rating on the Port’s senior lien revenue bonds. Lytle noted that “Fitch did this because things are going right.” A positive sign for the future, Lytle noted, is that both container terminals are set to make investments to upgrade their cargo-handling capabilities. Lytle said that OITC and TraPac will both be making major investments to invest in new technology to substantially improve productivity.
Stas Margaronis
Stas Margaronis

WEST COAST CORRESPONDENT

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