Pacific Ports - Volume 1, Issue 1, August 2020

PACIFIC P RTS Volume 1 Issue 1

www.pacificports.org

August 2020

Pacific Ports Update

Diversity helps ports weather COVID-19 storm

Maritime Cybersecurity Work locally with global connectedness

Global Economics

Where to from here?

Four scenarios for the global economy

ASSOCIATION OF

PACIFIC PORTS

PACIFIC P RTS

August 2020

CONTENTS

Volume 1 Issue 1

Cover Story PORT ACTIVITY UPDATE: PAGE 35 4 5

APP EXECUTIVE COMMITTEE

7

PORT NEWS

12

GLOBAL ECONOMICS

22 RECRUITMENT

U.S. port employment outlook

By Susan Shey Dvonch

EXECUTIVE DIRECTOR’S NOTE

By Jane McIvor

News briefs from APP Members Where to from here?

Four COVID-19 scenarios for the global economy

By Todd Hirsch

14 CYBERSECURITY

Maritime cybersecurity information sharing Work locally with global connectedness

By Christy Coffey

16 SHIPPING

35 48

PORT ACTIVITY UPDATE

Diversity helps ports weather COVID-19 storm

BEST PRACTICES

Port Authority of New South Wales shares insights into vessel arrival systems With Bruce Cooper

50 PARTNERSHIPS

A partnership to keep up with demand

By Linda Tyler

52

APP MEMBER PROFILE

Lynker: Your full-service marine regulatory and science partner!

Shipowners’ perspective Laying up a ship is not a simple matter

By Captain Stephen Brown

18 ENVIRONMENT

Ports determine and address key sustainability issues using the Green Marine framework

By David Bolduc

20

PORT MANAGEMENT

Creating efficiencies in port management With Jay Rainaldi

APP’S 2020 MEMBERSHIP DIRECTORY A pull-out reference guide to APP’s Port and Associate Members

On the cover: Port of Alaska (photo courtesy Port of Alaska) | Above: Port of Nanaimo (photo courtesy of Port of Nanaimo) August 2020 — PACIFIC PORTS — 3

Association of Pacific Ports 2020 Executive Committee

PACIFIC P RTS August 2020 Volume 1/Issue 1 Publisher

Association of Pacific Ports

Executive Director & Editor Jane McIvor

Ian Marr, President Nanaimo Port Authority, British Columbia, Canada

OFFICERS Kimberlyn King-Hinds, First Vice President/Treasurer, Commonwealth Ports Authority, CNMI Bonnie Lowenthal, Second Vice President, Port of Long Beach, California USA Shao-Liang Chen, Third Vice President TIPC, Ltd., Taiwan Elizabeth Blanchard, Past President, Port of Stockton, California USA

REGIONAL REPRESENTATIVES Randa Coniglio, Port of San Diego, California USA Dick Dodge, Port of Redwood City, California USA Ying-Feng Chung, Taiwan International Ports Corporation, Ltd., Taiwan Robert Larson, Port of Benton, Washington USA Kim B. Puzey, Port of Umatilla, OR USA Isa Koki, Port Authority of Guam

AT-LARGE REPRESENTATIVE James Bing, Republic of Marshall Islands Ports Authority Patsy Martin, Port of Skagit, Washington USA Claire Tuia Poumele, American Samoa Department of Port Administration

STAFF Jane McIvor (jane@pacificports.org) The APP has been committed to building partnerships, facilitating dialogue, and encouraging best practices for port governance and management throughout the Pacific since it was established in 1913 as the Pacific Coast Association of Port Authorities.

Throughout our 100+-year history, our objectives have remained consistent. With a focus on collaboration, the APP strives to encourage and facilitate best practices and professional development through conferences, workshops annd strong communications.

4 — PACIFIC PORTS — August 2020

Contributors Captain Stephen Brown David Bolduc Christy Coffey Bruce Cooper Becky Haycox Doug Hayes Todd Hirsch Chris King Zoran Knezevic Bruce Lambert Ian Marr Patsy Martin Rory McBride David McCormick Jason Michell Sarah Pautzke Kim B.Puzey Jay Rainaldi Stephen Ribuffo Susan Shey Dvonch Michael Short Linda Tyler Joel Valenzuela Jadene Villagomez Ann Wu Advertising and Memberships Phone: 604-893-8800 Jane McIvor (jane@pacificports.org)

ASSOCIATION OF

PACIFIC PORTS Contents copyrighted 2020 Association of Pacific Ports 300 - 1275 West 6th Avenue, Vancouver, British Columbia Canada V6H 1A6 Phone: 604-893-8800 E-mail: jane@pacificports.org

The opinions expressed by contributing writers are not necessarily those of the Publisher. No part of this magazine may be reproduced in any form without written permission of the publisher.

ADVERTISERS American Samoa — Port of Pago Pago.......................................................................6 Global Container Terminals Canada.......................................................................... 21 Harbour Link Container Services...................................................................................7 Liebherr................................................................................................................................BC Pacific Pilotage Authority.................................................................................................8 Port of Benton......................................................................................................................5 Port of Long Beach.......................................................................................................... 16 Port of Nanaimo................................................................................................................ 46 Port of Redwood City...................................................................................................... 10 Port of Skagit...................................................................................................................... 13 Port of Umatilla................................................................................................................. 11 Shey-Harding Executive Search.................................................................................. 11 Yardi Systems..................................................................................................................... 45

EXECUTIVE DIRECTOR’S NOTE

Stronger together

W

elcome to Pacific Ports Magazine! When the Association of Pacific Ports realized that we could not hold our Annual Conference this year (now scheduled for August 8 to 11, 2021 in Nanaimo), we set to work thinking of how best to continue meeting our mandate of promoting and encouraging professional development through the sharing of knowledge and best practices. Judging from participation in the very first issue, I believe we’ve found a winning solution.

Much like the Association itself, Pacific Ports Magazine recognizes the importance of a strong port community.

As drivers of economic growth, facilitating trade, and generating thousands

of jobs, all ports share a common vision: To provide an efficient, fluid, and costeffective supply chain in a safe, environmentally sustainable, and economically viable manner. The APP and Pacific Ports Magazine are committed to supporting you in your efforts to achieve these goals.

For ports sharing the waters of the Pacific Ocean, there is this obvious connection that heightens our need for collaboration. Whether it be for an environmental initiative that protects the very basis of our livelihood, a project that bolsters efficiencies, or an idea to enhance the fluidity of supply chains, joining forces will make us so much more successful.

One of the first steps in developing any relationship is, of course, an understanding of your counterpart. And that’s where we can help. Over the following pages, you’ll gain insights into the priorities, opportunities and challenges facing other ports as well as commentary from industry leaders and introductions to key suppliers offering innovative solutions.

By reading through the articles herein, the odds are very good that you’ll come away with at least one ‘gold nugget’ that can be applied to your own situation.

Better yet, you’ll see an opportunity to contribute by sharing your experience with the same issue.

Enjoy the read.

— Jane McIvor

PORT OF BENTON The Port of Benton fosters economic development, trade and tourism by providing quality infrastructure and multi-modal transportation at a variety of sites.

Real Estate • The Port of Benton owns and operates property within Tri-Cities Research District along with value added agriculture and industrial property.

Transportation

• Richland and Prosser GA Airports • High Dock and Low Dock for Shipping Access • Short Line Operator and Both Class I Railroads (UP & BNSF) For more information:

www.portofbenton.com or 509-375-3060

PORT OF

BENTON

August 2020 — PACIFIC PORTS — 5

PORT of PAGO PAGO PORT OPERATIONS PORT OPERATIONS

• Naturally deep-water harbor.

• Naturally deep-water harbor.

• Dock • D o c k Space Space • o Container C o n t a i nDock: e r D o1,112ftx55ft, c k : 1 , 1 1 2 f t xD35ft 55ft, D 3Dock: 5 f t 400ftx55ft, D35ft • Main Main Dock: 400ftx55ft, D35ft • oo Inter-Island Dock: 90ftx40ft, D25ft Inter-Island Dock: 90ftx40ft, • FuelD 2Dock: 5 f t 406ftx45ft, D40ft F u e l Wharf: D o c k : 300ftx75ft, 4 0 6 f t x 4 5 f t ,D25ft D40ft • o Service o acre S e Container r v i c e W h aYard rf: 300ftx75ft, D25ft • 4.5 • 4.5 acre Contai ner Yard • 40,000sqft Warehouse • 40,000sqft Warehouse • • BBulk u l k Cargo: C a r g o :Fuel, F u e lLPNG , LPNG • H a r b o r Tug T u g Assist A s s i sService t Service • Harbor u g I s e u3000hp l a, 3000hp • • TugTIseula, ug Sailel e, 1500hp • • TugTSailele, 1500hp • Inter Island Ferry Services • Inter Island • I n n e r H a r b oFerry r A n cServices horage for Yachts • • YInner a c h t Harbor / P l e a s uAnchorage r e C r a f t Mfor a r i Yachts na Facilities • D r y D o c k F a c i l Craft i t i e s Marina Facilities • Yacht/Pleasure • U S DDock A M e Facilities at Inspectors • Dry • Net Repair Yard • USDA Meat Inspectors • Tuna Cannery/Docks – Star Kist Tuna • • SNet m aRepair l l B o a tYard Harbors: Auasi, Aunuu, • FTuna a l e aCannery/Docks s a o , T a ’ u , O f u .– Star Kist Tuna • Small Boat Harbors: Auasi, Aunuu, Faleasao, Ta’u, Ofu.

AIRPORT OPERATIONS

• Pago Pago International Airport AIRPORT OPERATIONS (PPG) – Tutuila Island

Pago International Airport o Pago 700-acre public airport (PPG) Tutuila o – Rwy 5/23:Island 10,000ft x 150ft o Rwypublic 8/26: airport 3,800ft x 100ft • 700-acre o Elevation: 32 ft. / 9.8 m • Rwy 5/23: 10,000ft x 150ft o Distance From city: 6 miles SW of • Rwy 8/26: x 100ft Pago 3,800ft Pago, AS o Time32 Zone: • Elevation: ft. / UTC 9.8 m-11 o Surface: • Distance FromConcrete/grooved city: 6 miles SW of o ARFF Station Pago Pago, ASTraining Ground o Hot Fire • Time Zone: UTC -11 • Surface: Concrete/grooved • Ofu Airport (Z08) - Manua Islands • ARFF Station o 18 acre public airport o Fire Dimensions: • Hot Training Ground o o

Rwy8-26: 200 x 60 ft. / 610 x 18 m Elevation: 9 ft. / 2.7 m

o

Distance From city: .1 mile SE of

OfuoAirport (Z08)From - Manua Distance city: 1Islands mile SE of Ofu • 18 acre publicAS airport Village, o Time Zone: UTC -11 • Dimensions: o Surface: Concrete/grooved • Rwy8-26: 200 x 60 ft. / 610 x 18 m o ARFF Station • Elevation: 9 ft. / 2.7 m • DistanceAirport From city: 1 mile -SE of Ofu • Fitiuta (FAQ) Manua Village, AS Islands • Time Zone: UTC -11 o 34 acre public airport • Surface: Concrete/grooved o Rwy 12/30: 3200 x 75 ft. / 975 x 23 m o Elevation: • ARFF Station 110 ft. / 34 m Fitiuta Village, AS Fitiuta Airport (FAQ) - Manua Islands o Time Zone: UTC -11 • 34 acre public airport o Surface: Concrete/grooved o 12/30: Weight bearing • Rwy 3200 x 75capacity: ft. / 975 x 23 m o ARFF110 Station • Elevation: ft. / 34 m • Distance From city: .1 mile SE of Fitiuta Village, AS • Time Zone: UTC -11 • Surface: Concrete/grooved • ARFF Station

6 — PACIFIC PORTS — August 2020

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whole. Pago Pago Harbor is over 400 feet (120 m) deep and two miles (3.2 km) long, feet of dock space, and numerous anchorage with over 2,700 linear feet of dock space, sites for the over 1,000 ports calls consisting of and numerous anchorage sites for the cruise, cargo, military, fishing, workboats, over 1,000 ports calls consisting of cruise, yachts military, and pleasure crafts throughout the cargo, fishing, workboats, yachts year.pleasure Pago Pago is and craftsInternational throughoutAirport the year. capable accommodating anyis capable size of Pago PagoofInternational Airport commercial aircraft. any When our of accommodating size combined, of commercial seaports, and airports make theour movement of aircraft.

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We are here Visit us at americansamoaport.as.gov

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PORT NEWS

Matson christens Matsonia

M

atson, Inc. and General Dynamics NASSCO shipyard christened the second of two Kanaloa Class vessels, the largest combination container / roll-on, roll-off (“con-ro”) ships ever built in the United States, in a ceremony at the NASSCO shipyard in San Diego, CA on July 2, 2020.

The new vessel was christened Matsonia, an iconic name in Matson’s long history, dating to the construction of Matson’s first ship of that name in 1912. Three more ships were given the name in subsequent years; this vessel will be the fifth.

The new Matsonia is the second of two new ships being built for Honolulubased Matson by NASSCO at a total cost of approximately $500 million for the pair, and the fourth of four new vessels that Matson will put into service during 2018, 2019 and 2020. Named in honor of the ocean deity revered in the

native Hawaiian culture, Matson’s two “Kanaloa Class” vessels constructed at the NASSCO shipyard are built on a 3,500 TEU vessel platform.

At 870 feet long, 114 feet wide (beam), with a deep draft of 38 feet and weighing in at over 50,000 metric tons, Matsonia will join Lurline as Matson’s largest ships and the largest Con/Ro

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2:59 PM August 20202020-06-25 — PACIFIC PORTS —7

NEWS BRIEFS

Port Alberni Port Authority announces re-appointments to Board of Directors

T

he Port Alberni Port Authority is pleased to announce the re-appointments of Dennis Jonsson and Allan Haggard by the Port Advisory Nominating Committee’s Users’ Class, with approval of the Federal Minister of Transport, to its Board of Directors effective June 25, 2020. This will be the third, two-year term for both Haggard and Jonsson.

As the well-known former owner of a Port Alberni General Motors vehicle dealership for 27 years, Mr. Jonsson is highly regarded for his business acumen. During his previous terms on the Board of Directors of PAPA, Mr. Jonsson has provided exceptional strategic advice and leadership in support of the Port’s continued business attraction and expansion within a focused diversification strategy. A particular focus of Mr. Jonsson and the Port, as an organization, is the development of a floating dry dock facility to meet the increasing needs of the growing west coast marine cluster.

The Port, with its goals of economic diversity, prosperity and resiliency for the community, looks forward to benefiting from Mr. Jonsson’s unique perspective, experience, and insightful contributions for two more years.

Mr. Haggard has brought his extensive and diverse construction knowledge in the marine sector to the board’s discussions.

A priority for Port Alberni’s Board of Directors will be to develop a floating dry dock facility to meet the increasing needs of a growing marine sector.

Throughout his terms on the Board of Directors of the Port, Mr. Haggard has provided valuable technical input and advice for the Port’s various infrastructure-related projects and priorities such as the proposed new floating dry dock project.

The Port Alberni Port Authority is pleased with Mr. Haggard’s re-appointment to its Board for a third term. His knowledge of the Port, its community, and priority projects are especially valuable as he continues to contribute to Port Alberni’s economic diversity, vibrancy, and resilience.

Keeping the coastal waters of British Columbia safe

With 12,125 coastal assignments and 1,157 Fraser River pilotage assignments in the coastal waters of BC in 2019, our every effort is aimed at keeping our waters safe and protected.

We are proud to be working in partnership with pilots, the shipping industry and the ports in our jurisdiction to achieve a safety record that is second to none.

Pacific Pilotage Authority Canada T 604 666-6771 E info@ppa.gc.ca 1000-1130 West Pender Street Vancouver, BC. Canada V6E 4A4

NEWS BRIEFS

Port of Hueneme lands $1.68M FEMA grant

T

he Federal Emergency Management Agency (FEMA) announced that the Port of Hueneme has been awarded $1.68 million in the Port Security Grant Program FY20 Funding Cycle. Aimed to achieve the goal of a secure and resilient nation, the funding will aid the Port in modernizing their security, including improvements to the main gate entrance, and upgrading the Port’s CCTV surveillance system with cutting-edge technology. This year’s grant is the largest security grant the Port has received in its 83-year history.

“I would like to thank our Congresswoman Julia Brownley for her help in bringing this funding home to our Port,” said Oxnard Harbor District President Jess Ramirez. “This grant will go a long way in helping us keep our harbor and Port safe for our commercial customers and the adjacent Navy Base for years to come.”

“The Port of Hueneme is among the most critical economic drivers in Ventura County and Southern California,” said Congresswoman Brownley. “Port security funding is a vital component of ensuring security and safety at the Port, and I am pleased the Port is receiving this funding.”

Handling over $9.5 billion in cargo from all over the world, the Port serves

The main gate at the Port of Hueneme will be undergoing improvements thanks to the FEMA grant. as an official port of entry into the United States. As such, the complex must maintain the highest levels of security to monitor those entering and leaving the facility.

“This funding is critical to keeping the Port’s security on the cutting-edge,” said Kristin Decas, CEO & Port Director.

“These federal dollars will not only go to building new security infrastructure improvements, but they will be built under our Project Labor Agreement, creating jobs for our local workforce.”

The federal funding will also be used to assist with the state’s largest annual joint security exercise, Coastal Trident.

Hosted at the Port each year, this exercise brings together local, state, and federal emergency response teams to enhance their collaboration and communication in times of crisis.

Mike Morrison, the Port’s Operations Manager, explained that “our Port is focused on providing the most advanced security we can to keep our cargo and the surrounding community safe. Many of the new security improvements will also enhance our efficiency on Port, reducing wait times for trucks at our main gate and assisting with monitoring operational activity throughout the complex.”

Port of Redwood City awarded $1.17M in 2020 Port Security Grant Program

T

he Port of Redwood City announced today that it is the recipient of a $1,169,710 grant in the 2020 Port Security Grant Program, from the Department of Homeland Security. The award is part of the annual Port Security Grant Program (PSGP), which is designed to protect critical port infrastructure from threats that could impact public safety, supply chain disruption, cyber threats or other security challenges.

This is the second year in a row the Port has been awarded a PSGP grant.

This year’s allocation will further the

Port’s operational efficiencies, continue to enhance cybersecurity measures, and provide support to the region during natural disasters. Additionally, it strengthens the Port’s collaboration with local, state, and federal first responders involved in maritime security and operations.

“This award signals great confidence in our Port from our federal partners,” explained Port of Redwood City Executive Director Kristine A. Zortman.

“The grant will help strengthen our FEMA designation as a Federal Staging Area and demonstrates to our

community our Port’s significance in earthquake or disaster recovery.”

A Federal Staging Area provides logistical support during a disaster or recovery operation. There are only four Bay Area ports with this designation.

More than $100 million was allocated to 30 port authorities, plus a number of terminal operators, municipalities and policing entities, for this year’s PSGP. The Port of Redwood City received the fifth largest allocation of the 31 California agencies that received funding.

August 2020 — PACIFIC PORTS — 9

NEWS BRIEFS

Port of Newport selects new officers

I

t was the official changing of the guard at a recent meeting of the Port of Newport Port Commission, when a new commissioner took the oath of office, a departing commissioner was given great thanks, and a new slate of officers was elected.

The online meeting, visible to the public via a live YouTube link, began with a proper send-off to Sara Skamser, who stepped down from the body in May for personal reasons after serving since 2017, including the past year as Commission President.

One by one, Port Commissioners offered up their praise for Skamser, mentioning both her service to the Port but also her many contributions to the community. Each shared a personal anecdote or experience they had had with the former president, and in turn, she expressed her satisfaction at the progress made by the Port.

“It is such a pleasure to see where the Port was when I became a commissioner

Strategically located in South San Francisco Bay

Serving the Silicon Valley region’s maritime needs Access to multiple highways and rail service Midway between San Francisco and San Jose on the peninsula

redwoodcityport.com 10 — PACIFIC PORTS — August 2020

and seeing where it is now,” Skamser commented, adding “and it only comes from all of us being so engaged and caring about our community and particularly the Port, of course.”

General Manager Paula Miranda spoke of her appreciation for Skamser’s guidance in the first year of her tenure at the Port and displayed a plaque that will be presented to the former commissioner once an in-person meeting is possible.

Immediately following Skamser’s farewell, the Port Commission welcomed Kelley Retherford to its ranks, following a vote at their May meeting to fill the vacancy. Retherford recited the oath of office and was welcomed by then-Vice President Jim Burke.

Later in the meeting, leadership for the coming year was established,

when Burke was nominated to the role of President, Gil Sylvia was nominated as Vice President, and Walter Chuck was nominated to continue his role as secretary/treasurer of the Port Commission. All were approved by unanimous vote.

On the agenda was the annual approval of rates and fees for the various functions around the Port, both commercial and recreational. Most rates increased by four per cent, except for commercial marina moorage which was increased by 10 per cent. That larger increase was in keeping with an agreement with commercial marina users last year, with funds designated to upgrade some marina utilities.

The 2020-2021 rates and fees were approved by unanimous vote. The new parking fees will go into effect in July.

Hawaii defers scheduled tariff increase

T

he Hawaii Department of Transportation Harbors Division will defer the scheduled three-per cent tariff increase on the orders of Governor David Ige. The tariff increase was scheduled to take effect on July 1 and would have been applied to port entry fees, vessel dockage, wharfage, pipeline tolls, and other fees associated with cargo and passenger operations at the State’s commercial harbors.

“Our economy relies heavily on the movement of goods through our commercial harbors,” said Governor Ige. “As part of our economic recovery efforts, I’ve directed HDOT to defer scheduled tariff increases. This will allow local shippers and businesses, especially those on the neighbor islands, to conduct business without worrying about a rate increase at this time.”

“State Harbors are financially self-sustaining through the collection of tariffs from those using our infrastructure,” said Hawaii Department of Transportation Director Jade Butay. “Thanks to the foresight of our Harbors Division staff we are able to support the governor’s deferral

without negative impact to our Harbors modernization and other infrastructure improvement projects.”

The Harbors Division has restricted its program costs and is currently 20-per cent under budget. In March, Fitch Ratings affirmed the ‘AA-’ rating for Harbors Revenue Bonds and rated the outlook for these bonds as Stable.

Hawaii Department of Transportation Deputy Director for Harbors Derek Chow added: “Financial discipline and management controls will continue to govern our projects. Together with our federal, state, county, and private sector partners, we can weather any storm.”

Hawaii’s commercial harbor system is comprised of Nawiliwili and Port Allen Harbors on Kauai; Honolulu and Kalaeloa Barbers Point Harbors on Oahu; Kahului Harbor on Maui; Kaunakakai Harbor on Molokai; Kaumalapau Harbor on Lanai; and Kawaihae and Hilo Harbors on Hawaii Island. More information on harbor tariffs and fees can be found athttps://hidot. hawaii.gov/harbors/doing-business/.

NEWS BRIEFS

Draft environmental study released on Port of Long Beach rail facility

T

he U.S. Maritime Administration has released a draft study on environmental impacts of the Pier B On-Dock Rail Support Facility, a Port of Long Beach project.

Port officials initiated the process for the report, a Draft Environmental Impact Study, to make the project eligible for federal grant funding. The public has 45 days to submit comments on the Draft EIS before the close of the comment period on Monday, August 24 (details at www.regulations.gov).

Located southwest of Anaheim Street and the 710 Freeway, the Pier B On-Dock Rail Support Facility would shift more cargo to “on-dock rail,” which places containers directly on trains at marine terminals. Currently, the ability to build long trains is limited.

The Pier B facility would change this by providing track space to join together trains assembled at terminals. No cargo trucks would visit the facility. A one-mile-long train can take as many as 2,000 trucks off the roadways.

Phase 1 rail work is slated to begin at the start of 2022 and be completed in 2024, doubling the capacity of the existing Pier B rail yard. Street realignments and other component projects will continue to improve operations as they are finished. The project is scheduled for full completion in 2032.

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The Pier B On-Dock Rail Support Facility would shift more cargo to “on-dock rail.”

The Port of Long Beach is one of the world’s premier seaports, a gateway for trans-Pacific trade and a trailblazer in goods movement and environmental stewardship. With 175 shipping lines connecting Long Beach to 217 seaports, the Port handles $170 billion in trade annually, supporting more than 575,000 Southern California jobs.

Oregon’s Inland Port Situated in the center of the Pacific Northwest, the Port of Umatilla serves as an excellent gateway for distribution to the Western U.S., the Upper Midwest and East, as well as allowing for efficient connections throughout the world.

• 3,200-square-mile jurisdiction encompassing 12 municipalities.

• Handling cargoes of grain, petroleum, project cargo, and containers.

• Served by two interstate highways, a major railroad switch yard, and a new modern fullservice Columbia River maritime facility.

E: kimpuzey@uci.net T: (541) 922-3224 | C: (541) 379-9700

www.portofumatilla.org August 2020 — PACIFIC PORTS — 11

GLOBAL ECONOMICS Where to from here?

Four COVID-19 scenarios for the global economy Todd Hirsch, Vice President and Chief Economist ATB Financial, Calgary, Canada

Photo Credit: Phil Crozier (University of Alberta)

W

e all experienced it — the shock, fear and uncertainty of the COVID-19 outbreak in early 2020. For most of us, the lockdown months of March, April and May will be etched in our minds forever.

But like those living with chronic pain or diseases, now that the initial shock has subsided, we are learning to live with the pandemic. The virus has not gone away, and a vaccine is not yet available so it’s not over. Nonetheless, life goes on and the global economy is starting to re-open and we’re trying to salvage what we can of the year.

We’ve been told all along that restarting the economy isn’t a light switch that goes on-and-off — it’s more of a dimmer switch. And the speed at which we turn the light back on will have a bearing on the second wave of the virus.

How do we navigate this gradual reopening? What can businesses expect?

And what will 2021 look like? There are no straightforward answers to these questions, but it is helpful to imagine some scenarios. Here are four ways the COVID crisis could impact the global economy in the coming months.

The koala

A koala is possibly the most adorable creature on the planet. It is also completely harmless and defenseless.

Nothing but cuteness all day long.

In the koala scenario, we let down our guards, we open up the economy with no hesitation, and we relax. And nothing happens! The COVID-19 virus simply 12 — PACIFIC PORTS — August 2020

goes away and the economy rebounds almost overnight in the much-desired V-shaped recovery. This isn’t a complete fantasy. The SARS virus, which was a similar type of coronavirus, did just that. But it’s almost a complete fantasy.

Scientists are telling us that the COVID19 virus is highly unlikely to simply disappear.

Belief in the koala scenario — that this is all much ado about nothing — was more popular back in February and March. And there are still those convinced it’s a hoax or have a conspiracy theory to explain it. These are the people who argue that we are destroying our economy for nothing. However, those voices are becoming less credible as time goes on.

The tarantula spider

They look terrifying but are harmless to humans. (They get their bad reputation from Hollywood. When the movie scene called for a dangerous spider, they used tarantulas specifically because they looked scary but posed no harm to the actors.)

In the tarantula scenario, we discover that the economic damage is not as bad as we feared. Slamming shut the global economy for a few months caused a lot of short-term pain, but we flattened the curve and the V-shaped recovery we were hoping for is still in the cards. The recession that some had predicted would last for months (or years!) will be over before we know it. The global economy will rebound quickly.

This scenario is also unlikely. Will the economic impact of the pandemic prove to be as harmless as a tarantula?

So far, that doesn’t seem to be the case.

Because of the health impacts of the virus and the shut-downs put in place to contain it, 2020 is already on track to being one of the worst economic years on record. It’s too early to tell if the economy will rebound in 2021, or enter a prolonged, multi-year downturn, but the economic pain is real and its aftereffects will be around for some time.

This tarantula is deserving of at least some of our fear.

The grizzly bear

In a photo they appear cute and cuddly, but any prudent hiker knows that a face-to-face encounter with a grizzly bear is terrifying. If you react badly or get between it and its cub, the bear will rip you to pieces. But if you do what the experts advise and back away calmly and slowly, the bear is more likely to lumber away and leave you unharmed.

COVID’s impact on the global economy may be the grizzly bear. Most countries have been reacting with the appropriate fear and proper respect — like the hiker dropping everything and backing away. But does the grizzly bear attack us anyway, or does it eventually wander off back into the woods?

Again, we don’t know for sure. But it’s likely that the precautions we are taking by closing the economy and allowing only a very gradual reopening — as painful and frustrating as this is — will

GLOBAL ECONOMICS result in a non-fatal economic outcome and a rebound in 2021. However, if we do nothing and re-open too quickly (i.e., show the bear no respect), things are likely to go very badly for us indeed.

The hippo

They’re big and dopey looking, the staple of any child’s bedtime storybook library. Who could be afraid of this cute and cuddly looking beast? Yet they’re deadly, accounting for more human deaths in Africa than any other animal.

Don’t let their bumbling cuteness fool you.

The hippo scenario would see the global economy ravaged because we take no precautions at all. Like the inexperienced safari tourist, you get too close to the hippo and you’re in big trouble.

This scenario could play out if people throw in the towel on COVID precautions and quit trying. Government officials can warn people, shame people and even ticket people for not social and physical distancing — but if we ignore

the warnings and drop our guards, the virus’ second wave is likely to come back with a vengeance. That, like a hippo attack, could be fatal, sending the global economy into a multi-year recession or even something approaching a depression.

Where to from here?

What economic scenario will it be?

The koala, where we do nothing and nothing happens? The tarantula, where we panic for no good reason? The grizzly bear, where we react with fear and respect but come out of it alive? Or the hippo, where we ignore the warnings and the economy gets mauled?

The koala is the most desirable by far, but sadly it’s the least likely. The tarantula is more probable, but COVID-19 has already proven that it’s not harmless. The hippo is also possible, but at least so far most global citizens have proven they’re (mostly) willing to take precautions.

That leaves the grizzly bear as the most likely scenario. We’ve encountered

a deadly animal on the trail, but we’re doing what we’re supposed to do — slowly and carefully backing away. The grizzly could still attack, sending the global economy into a longer, multi-year tailspin. Yet chances are better that the bear will turn and run away. This year is still going to be brutal on the economy, on businesses and on workers. But if we do the right thing and use extreme caution as we learn to live with a pandemic, 2021 holds the promise of a gradual — if not hesitant — global economic recovery.

Todd Hirsch is the Vice President and Chief Economist for ATB Financial. He holds degrees in economics from the University of Alberta and the University of Calgary. For over 20 years, he’s worked as an economist at numerous organizations including the Canada West Foundation and the Bank of Canada. H ​ e’s also the author of three books. His latest, “Spiders in Space: Successfully Adapting to Unwanted Change,” was released in 2017.

Good Jobs for the Skagit Valley Skagit Regional Airport

Bayview Business Park

15400 Airport Drive, Burlington WA 98233

La Conner Marina

• www.portofskagit.com

SWIFT Center

• 360-757-0011

CYBERSECURITY Maritime cybersecurity information sharing

Work locally with global connectedness

By Christy Coffey, Vice President of Operations Maritime Transportation System ISAC

F

irst, we would like to thank the Association of Pacific Ports for requesting a blog. We are looking forward to speaking at their 107th annual event in 2021.

The concept of collaborating as a maritime community to identify, detect and protect against threats to the maritime transportation system (MTS) has a long tradition in the Pacific. This has been true whether facing a wide variety of threats and hazards and continues today. Look at the COVID-19 virus and how communities are using crowdsourcing, with public and private sector organizations working together locally and globally, to identify and move muchneeded supplies and perform research.

Another example we regularly see relates to weather-related emergency response scenarios. These events are an excellent example of how public and private sector organizations work together to address and recover from the threat.

While storms are not entirely predictable, we are aware that they occur, we understand the range of their potential impacts, and understand that there are actions that both sets of stakeholders are responsible for taking. So, the MTS develops and exercises plans to ensure preparedness.

Cyber risk management and the MTS

When cybersecurity professionals in the Pacific apply the maritime community traditions with their own best practices from the NIST Cybersecurity Framework (www.nist.gov/cyberframework/online-learning/five-functions) — Identify, Protect, Detect, Respond, and Recover — the community can become more resilient to cyber risks in the face of motivated cyber adversaries. While information security professionals, or their organizational team, often focus on internal, individual activities to manage 14 — PACIFIC PORTS — August 2020

Rather than each individual stakeholder trying to counter cyber-attacks on their own, we can more efficiently tackle challenges at the community level for multiple reasons. cyber risk, the sharing of threat information can serve as a force multiplier.

Sharing information allows multiple organizations to more quickly identify vulnerabilities, threat activity and effective countermeasures. Rather than each individual stakeholder trying to counter cyber-attacks on their own, we can more efficiently tackle challenges at the community level for multiple reasons.

First, given the resources that cyber threat actors are pouring into their capabilities, the resources required to defend against threats is currently insufficient, especially when efficient use of those resources is not maximized.

We believe the maritime community well understands the resource challenges that are present.

Second, the MTS continues to rapidly apply new technologies to port environments to increase operational efficiencies. Information technology (IT), operational technology (OT), and Internet of Things (IoT) technologies are being quickly integrated in port operations. These technologies are being integrated less often by single organizations, but frequently across the MTS ecosystem by multiple stakeholders including suppliers, vendors, and operators of other modes of transportation. As a result, IT, OT, and IoT cybersecurity challenges have become community challenges. However, we often try to address them as individual organizational challenges.

Third, we know that there is a shortage of cybersecurity expertise around the globe, and even fewer professionals that are focused on the specific challenges of maritime environments. This shortage

places additional pressure on organizations. While the initial reaction to this pressure might be to focus those resources internally, we understand the efficiencies generated by pooling resources into a larger community effort. A team of resources can accomplish more than the sum of its parts.

U.S. Government is adjusting its focus

Well, we’re starting to see government actions to focus resources on these maritime community cybersecurity challenges. In February, the Department of Homeland Security’s (DHS) Federal Emergency Management Agency (FEMA) released the Port Security Grant Program (PSGP) Notice of Funding Opportunity which prioritized cybersecurity as the one area that “attracts the most concern” and subsequently included it as a funding priority for this year’s grants. This is certainly a welcome reprioritization.

A month later, the U.S. Coast Guard published the Navigation and Vessel Inspection Circular (NVIC) No. 01-20: Guidelines for Addressing Cyber Risks at MTSA Regulated Facilities which requires regulated facilities to address cyber risk in their Facility Security Assessments (FSAs) and Facility Security Plans (FSPs). Industry had been eagerly awaiting this NVIC. While it provides some clarification regarding MTSA requirements, the Coast Guard also released a “Cyber Job Aid” to “provide the service’s marine safety personnel with additional guidance as they address facilities’ documented cyber vulnerabilities.”

CYBERSECURITY Unfortunately (and please keep in mind challenges #2 and #3 above), this guidance is being read by some who may not understand the details of cybersecurity as to what is required to manage cyber risk. The NVIC and the “Cyber Job Aid” fail to mention some of the basics of cybersecurity (e.g., access control lists, alerts, securing APIs, asset inventory, availability — those are just some of the As, let alone B-to-Z).

Helping connect the community

How can we help break this cycle by managing risk through “checklist cyber controls” to address compliance requirements? First, we have to acknowledge the challenges above as well as the limitations of traditional approaches. The MTS-ISAC community, which engages both public and private sector stakeholders, is leveraging historical, regional relationships in a new way to address local cybersecurity challenges while maintaining global connectedness and situational awareness.

The MTS-ISAC has issued several TLP:GREEN Advisories that highlighted how threat actors have targeted MTS critical infrastructure, and how security controls can prevent unauthorized access to port systems. These advisories are shared quickly throughout the MTS-ISAC community and then more broadly with the maritime community with actionable intelligence and cybersecurity control recommendations to help other MTS stakeholders prevent similar cyber risk from impacting them.

Stakeholders have not seen this type of timely advisory used in the maritime sector other than by the MTS-ISAC. While working at the international as well as the local level to share malicious and suspicious cybersecurity activity is effective, local communities also provide a connectedness for working together on educational initiatives, adoption of best practices, and incident preparedness through exercises and response plans. We will be more successful in mitigating cyber risks through an MTS and critical infrastructure all-hands approach — private and public sector working together, private sector working together at a local level with global connectedness, and

As a founding member of MTS-ISAC, the Port of Vancouver, Washington, has been proactive in protecting the port from cybersecurity risks. cross-sector collaboration. In addition to issuing regular TLP-GREEN advisories to trusted maritime stakeholders, the MTS-ISAC is holding regular webinars to raise awareness on a variety of maritime cybersecurity topics, including a recent informational webinar on protecting GPS, and supporting local maritime cybersecurity exercises.

For more information on the MTSISAC, visit https://www.mtsisac.org/.

We hope you will join our community and learn more about efforts underway to manage cyber risk at the Maritime Cybersecurity Summit in Orlando, FL November 4-5, 2020 (https://www. maritimecybersecuritysummit.com/).

Christy Coffey is a cybersecurity professional, collaboration advocate, computer scientist, and inventor. She has worked across the cybersecurity and software industries for over 30 years and holds a MS in Cybersecurity with a CNSS certification, a BS in Computer Science, and a Top-Secret security clearance. She has authored numerous cybersecurity-themed papers, spoken at events, been interviewed by media, and is a subject matter expert on “Cybersecurity Information Sharing.”

August 2020 — PACIFIC PORTS — 15

SHIPPING Shipowners' perspective

Laying up a ship is not a simple matter

By Captain Stephen Brown Owner and Director, West Pacific Marine

A

s the world continues to wrestle with the challenge of COVID19, the immediate, medium, and even long-term implications for the maritime sector appear to be gaining recognition. The decision to lay-up a vessel is usually financial, sometimes operational, but on a personal note and for any seafarer, the experience is always emotional. Accustomed to running hard 24/7/365, when everything comes to a grinding halt and the vessel is left with a skeleton crew the question begs, where from here? Facts dictate the business decision to layup a vessel but the personal uncertainty of those impacted can often be overlooked. It is rarely so simple as switching to another vessel when

Choose Long Beach Providing operational excellence and world-class customer service.

16 — PACIFIC PORTS — August 2020

The estimate is that Q2 of 2020 has seen 250-300 cancelled sailings, primarily on the Asia-Europe and transPacific trades, with those ships still in employment often sailing at below economically optimum capacity. the whole future of a company, or even an entire sector of the marine industry is in a crisis of the magnitude of today.

On the container front, at the time of writing, around 15 per cent of container capacity is idled which translates to something approaching 3.5m TEU. The estimate is that Q2 of 2020 has seen 250300 cancelled sailings, primarily on the Asia-Europe and trans-Pacific trades, with those ships still in employment often sailing at below economically optimum capacity. The consequential impacts through global supply chains are enormous. Likewise, for car carriers, given the global collapse in demand for new vehicles, the fleet is significantly under-employed, resulting in layups and/or early scrapping.

When it comes to ports, the impact of falling volumes has been equally dramatic. Reduced revenues equate to shrinking operating budgets, deferment of capital expenditures and pressure to reduce overheads. There may also be pressure from terminal lease holders to reduce or defer payments, and of course, reduced working hours in the longshore community can quickly impact the economies of local communities.

For the cruise industry, these past months have been punctuated by one blow after another. Subject to exclusion orders from several countries, uncertain return to service dates, securing of suitable lay-up locations, and the nightmare of arranging crew repatriations have, in combination, plunged the sector into an unprecedented crisis from which some may not emerge intact. To their credit,

having explored every option to resolve the problem of repatriating crews, compounded by limited flight availability, the cruise lines have themselves switched crews between ships and taken them home by sea, or at least to a close port. As an example of this, there are around 25 large cruise ships anchored in Manila Bay, many having repatriated their Filipino crews but who are then subject to a long wait for COVID-19 testing followed by a period of mandatory isolation before being allowed to complete the trip home. Similar repatriation exercises have taken place elsewhere in Asia, Europe, South America and the Caribbean. The importance of this unprecedented move by the cruise lines is underlined by increasing reports of stress among crews which, sadly, has resulted in a number of suicides.

Despite the best efforts of shipowners across all sectors of the industry, it is estimated by the International Labour Organization (ILO) that some 150200,000 serving seafarers are currently at the end of their contracts with many being forced to work well beyond their expiration date. Seeking to address the severity of the situation, the International Maritime Organization (IMO) has issued a 12-step plan to assist governments to enact coordinated procedures for the safe movement of seafarers. The aim is to provide its 174 member states with a roadmap to free seafarers from their Covid-19 lockdown and allow appropriate exemptions for vessels to change crews. The plan is supported by a coalition of seafarers’ unions, shipping industry associations

SHIPPING ...UNCTAD has issued a joint appeal with the IMO to remind governments of the world’s reliance on maritime trade and the importance of keeping ships moving and ports open... and the insurance sector. The protocols spell out the responsibility of governments, shipowners, transport providers and the seafarers themselves. Beyond this, the United Nations Conference on Trade and Development (UNCTAD) has issued a joint appeal with the IMO to remind governments of the world’s reliance on maritime trade and the importance of keeping ships moving, ports open and, as a direct consequence, the need for all countries to lend support for crew changes.

Despite this, it has been sad to witness the lack of cooperation between jurisdictions, but there are exceptions.

Both Singapore and Hong Kong have recently relaxed some restrictions and having provided seafarers with “key worker” designation from the outset of COVID-19, the Canadian government has now gone further with the implementation of a simple electronic visa application to facilitate crew changes in Canadian ports. This includes the waiving of the quarantine period applicable to all non-essential foreign arrivals.

The European Community Shipowners Association (ECSA), the World Shipping Council and Cruise Line International Association are meanwhile campaigning for a relaxation of the Schengen regional visa restrictions to allow crew changes across a wide range of European ports.

Returning to the subject of laying up a vessel, the dilemma for a ship owner is whether to opt for a hot- or cold layup. In a hot lay-up, the ship’s engines and essential machinery is kept turning over to allow for early reactivation.

The operational costs are thus higher since more crew are required and fuel is consumed. In a cold lay-up, vessels are simply supplied with emergency power for lights and essential equipment including fire detection and fighting, overseen by a minimal number of crew. Emerging from a cold lay-up will generally require at least a couple of

weeks but whatever decisions are taken it is important to work hand-in-glove with the ship’s Classification Society to ensure that maintenance and insurance are not compromised. It is an express condition for P&I and hull and machinery insurances that the vessel maintains its Classification, either “in operation” or “laid-up” status. A suspension of Class for any reason will automatically lead to a loss of insurance, and the insurance will not be reinstated without written confirmation from Class.

That said, owners will generally qualify for a rebate on insurance premiums for the period that a ship is out of service but in addition to prevention of and protection from fire and flooding, leading marine underwriter Gard provides guidance on three main requirements which vessel owners must comply with, namely: 1. The lay-up site must be described with particular attention to the weather conditions and must be approved bty the local authorities.

2. The mooring and anchoring arrangements must be approved by or through the vessel’s Classification society. A competent body may perform the calculations, but the approval should go through the Classification society.

3. The vessel owner should contact the manufacturers of the critical equipment on board and make sure maintenance, preservation and

reactivation are done according to their recommendations. Preserving guest accommodation areas on cruise vessels is also important.

Gard also reminds us that it is not during the lay-up itself that incidents leading to insurance claims usually occur, rather it is during a vessel’s reactivation. For example, prior to reactivation, Class must perform any outstanding surveys together with an audit of the entire machinery installation. Depending on the duration of the lay-up, a sea trial must be performed as well as a full Safety Management System audit. To encourage compliance, underwriters may include specific reactivation clauses as part of the insurance cover during the lay-up period.

All that said, extended periods of lay-up also run the risk of hull biofouling with consequential loss of speed and increased bunker consumption. Here, Skuld offers detailed advice and clarification as to what constitutes an extended lay-up in the form of the BIMCO standard Hull Fouling Clause, first developed in 2013 and revised in 2019. The clause refers to allowance for shifting between ports, anchorages or waiting areas in order to “stop the clock counting.” There is also an attempt to clarify the ability to undertake an interim sea passage with speed and duration to remove bio-fouling.

All very legalistic but safe to say that sitting around, particularly in tropical waters, can result in hull fouling and the need for a clean up if a vessel is to return to full operational efficiency.

All food for thought when deciding where and for how long to lay-up a vessel.

Captain Stephen Brown has enjoyed a 50-year career in the shipping industry, including senior positions with some of the world's most notable shipping companies.

Captain Brown was appointed to lead the Chamber of Shipping of British Columbia, the leading trade association providing leadership to the marine industry in Western Canada. As a Vancouver marine consultant, he provides a highly professional range of services which, for a period of 15 months in 2018-19, included serving as Interim Director Operations and Safety, Harbour Master, for the Vancouver Fraser Port Authority (Port of Vancouver).

August 2020 — PACIFIC PORTS — 17

ENVIRONMENT

Ports determine and address key sustainability issues using the Green Marine framework

By David Bolduc Green Marine’s Executive Director

G

lobalized trade has significantly increased the demands on ports at the same time as the public is seeking to reclaim waterfront areas for residential and recreational greenspace.

Changing expectations by urban dwellers for vacant or formerly industrialized land is making it more difficult to obtain approval for new development or expansion projects.

Social expectations are likely to mount with people having a glimpse of how some of Nature has been able to rebound during the COVID-19 slowdown. Fortunately, a significant proportion of North America’s port community has effectively been addressing these challenges for well over a decade through the Green Marine environmental certification program.

Green Marine currently has 48 port authorities and 58 terminal operations voluntarily participating in the program in Canada and the United States, as well as nine port-specific association members.

All participants use detailed criteria to determine and publish their annual efforts on a 1 (monitoring of regulations) to 5 (excellence and leadership) scale.

Results are reviewed by an independent verifier to ensure the program’s rigour.

The bar for Levels 2 through 5 has also been raised a number of times to keep the criteria sufficiently challenging beyond existing regulations, emerging technologies, and new best practices.

The program also requires certain yearover-year improvement. The program’s

Participating terminal operators, port authorities, ship owners, and shipyard managers have not only welcomed challenges beyond regulations but have addressed newly emerging issues... revision is done with substantial input from key governmental, scientific, environmental and community stakeholders, alongside the participants.

The program has significantly expanded in terms of the issues that it addresses since its founding 13 years ago. Participating terminal operators, port authorities, ship owners, and shipyard managers have not only welcomed challenges beyond regulations but have addressed newly emerging issues, such as community relations at ports.

Underwater noise is another example.

Meanwhile, the program’s very first performance indicators for ports to reduce air emissions and greenhouse gases remain as relevant as ever and have become even more demanding with Level 5, for example, now requiring a yearly reduction target. In keeping with Green Marine’s collaborative approach, the new criteria was established by a workgroup that involved the representatives of several ports of different sizes, along with the relevant governments, academia and environmental NGOs.

Tools and technologies

Green Marine does its best to provide participants with the means to achieve

The five levels of efforts by which detailed criteria are measured.

18 — PACIFIC PORTS — August 2020

the program’s goals. For example, Green Marine has licensed the Ports Emissions Inventory (PEIT) from Transport Canada for use by all participants in benchmarking and reducing emissions in a readily measurable, consistent way. Such resources are often key to helping smaller ports with fewer resources to participate and to avoid everyone from having to reinvent a wheel.

The program further advances environmental excellence by providing the latest information about emerging technologies. Green Marine invites enterprises with innovative products and services to become partners. Each partner’s speciality is listed in an online directory.

A number of partners also explain their offerings at one of the booths set up at Green Marine’s annual conferences. Fingers crossed: GreenTech 2021 is planned for Seattle, Washington. The conference is regularly moved between the West and East coasts to make it easier for different people to attend.

Unfortunately, this year’s conference set for Montreal was cancelled because of COVID-19, but the good news is that an online format is readily accessible

ENVIRONMENT

without cost and features a number of key port discussions by industry and academic experts.

From its outset, Green Marine has also prioritized regional concerns, starting with invasive species in the Great Lakes – St. Lawrence waterways. More recently, underwater noise was identified as a top priority by the West Coast Advisory Committee. Green Marine set out to clarify the issue by first working with Transport Canada to survey the globally documented research about the impacts on marine life.

In January 2017, Green Marine expanded the program to add performance indicators to deal with underwater noise from port activities and ship operations respectively. Green Marine’s participants have been at the global forefront of this issue by voluntarily undertaking to find and implement solutions to minimize impacts on endangered whales and other marine life.

Two years of research, discussions and awareness-building went into developing the criteria that applies to saltwater ports. A number of relevant Green Marine supporters informed these discussions. Already, this performance indicator has made a difference with ports taking steps to minimize the noise impacts caused by shoreline operations, construction or repairs.

Community relations

Achieving consensus on new indicator or criteria is no easy feat. It requires

finding the common denominator among participants that vary significantly in location, size, operations, management and resources. It takes a lot of information sharing and discussion — all of which is done voluntarily by the membership. However, the result is a true ownership of the program by its participants and a real commitment to year-over-year measurable improvement regarding newly encompassed issues.

You would think that participants would shy away from new challenges with everything that’s involved, but the opposite is true. Green Marine has steadily broadened its scope while heightening existing requirements.

Some of this stems from the membership desiring to address key issues that become clearer in the course of gaining more experience as sustainability managers and environmental stewards.

For instance, Green Marine’s ports called for a new indicator focusing exclusively on community relations that will become part of Green Marine’s 2021 program. Realizing the importance of social license, our port membership has become keenly aware there are steps they can take to improve their communications with their adjacent communities to increase the chances of a harmonious co-existence.

This has also come about through the sharing of innovative projects, such as bicycle paths or birdhouses on port territory, but also the real pitfalls of failing to engage the community in a port’s evolution.

The new criteria establishes an effective framework for a port to communicate with its neighbours in ways that not only avoid unnecessary conflicts

but can lead to a port being regarded as an important member of the society, as an essential and increasingly sustainable economic force. Too often in the past, a port would do good things that would go unnoticed or would be misinterpreted. The new indicator aims to improve community dialogue and interaction.

Other upcoming changes involving ports include spill prevention, stormwater management, and aquatic ecosystems. A number of members have already shown true leadership in each of these realms and they are readily sharing their initiatives with others. One of the most treasured aspects emerging from Green Marine is the willingness to set aside usual competitive tendencies in favour of a new culture that readily shares information and expertise when it comes to the environment so the industry as a whole improves.

Green Marine’s certification, which has to be re-earned by every participant annually by filing a new detailed report on the year’s sustainability efforts, is a way for participants to assess progress in key areas and effectively communicate the efforts being voluntarily made to go above and beyond existing regulations.

All of this will become all the more imperative as we shift into the postCOVID economy with revitalized world trade but also with newly heightened societal expectations for Nature’s preservation and presence. None of this will be simple, but Green Marine offers port managers a framework to identify emerging issues, research impacts and possible solutions, and then set challenging but still feasible goals for environmental improvement.

As executive director, David Bolduc is responsible for overseeing the administration, programs and strategic planning of the Green Marine organization. He leads a team of five employees based in Quebec City, Halifax and Seattle. Reporting directly to the Board of Directors, he is Green Marine’s leading representative and outreach agent.

His appointment as Green Marine’s executive director in January 2010 followed his active participation in creating the environmental certification program while employed at the St. Lawrence Economic Development Council (SODES), a founding member association.

August 2020 — PACIFIC PORTS — 19

PORT MANAGEMENT

Creating efficiencies in port management

O

ver the past decade — not to mention the past few COVID19-riddled months — efficient port management has increasingly become an art in and of itself. Whether it be for management of property, facilities or construction projects, tenant services, accounting and payment processing, budgeting and forecasting or even to gain energy efficiencies, the many tasks related to port management have multiplied as the maritime world moves toward digitization, industry growth, environmental sustainability and increasing government regulations.

The APP recently discussed the topic of port management with Jay Rainaldi, Director, Government Solutions, Yardi Systems, to gain insights into the many factors affecting efficient operations and how solutions, such as the Yardi Ports Suite, can provide much needed assistance.

APP: Jay, first, thanks for helping the Association investigate ways to assist Port Members on best practices.

Could we start by identifying the trends you’ve seen in port management over the past 10 or 20 years, including how

20 — PACIFIC PORTS — August 2020

Increasing globalization, world trade and financial constraints have created a number of changes in port management in the last several years. technological advances have impacted on port staff and how has port management changed?

JR: Increasing globalization, world trade and financial constraints have created a number of changes in port management in the last several years.

Ports have been forced to modify their infrastructure to allow for larger ships and containers. Additionally, ports are doing everything they can to create use for older tracts of land within the port footprints that are no longer being used for their original purposes. The maritime space is required to do more, faster, and for less. In an effort to stem this tide, software providers like Yardi are developing strategic software solutions to manage ports in a central database that handles the higher management and communication demands currently facing ports around the world.

APP: Looking at the overall management of a port, what areas are most prone to inefficiencies?

JR: Ports need better ways to manage billing and tracking of shipments and real estate. Increasing demands to modify port infrastructure are resulting in new, complex billing of fees and tariffs.

Ports need automated ways to bill a variety of fees in many different intervals (ad hoc, hourly, daily, monthly lease).

This becomes particularly important as financial demands require higher volumes and complexity of work to be done with fewer workers.

Higher demand among ports has also increased competition and drives port management to be as efficient as possible. It is more important than ever that ports have highly sophisticated

PORT MANAGEMENT Automation is the single best way to capture these increasing demands. automated systems with which to manage finance, cargo and human resources.

APP: How does Yardi help?

JR: Automation is the single best way to capture these increasing demands. Yardi is in the unique position of being able to offer a suite of software that can manage the key areas of a port. In addition to being able to manage the leasing, billing and real estate management of a port, Yardi is uniquely positioned to manage financial tracking, fee management and financial and container history. We are even able to manage materials and personnel necessary to maintain the port facilities or costing out new construction projects around the port.

APP: Could you provide some background on Yardi — for example, the history behind the company, and your biggest strength?

JR: Yardi Systems has been offering automated solutions for real estate providers for nearly four decades. Our strength is in our ability to be nimble enough to adapt to changing market trends while still flexible enough to provide innovative solutions to evolving industries across both the public and private sector.

APP: Jay, thanks again. This has been very enlightening. For the benefit of our readers, I’m providing an overview of some of the products within the Ports Suite and encourage those who would like to learn more to visit your website (www.yardi.com).

I should also note that the Suite is also relevant for those of our members who have airports under their purview as well.

• Property Management & Accounting — Automatically tracks leases and processes receivables using an integrated database.

• Tenant Services — Improves tenant experiences through secure portals for online payments, retail sales reporting, concierge services, maintenance requests, property and tenant documents, announcements and more.

• Payment Processing — Provides an efficient, automated payment processing platform, including a complete solution for accounts receivable and accounts payable for commercial property management.

• Energy — Manages costs, consumption and efficiency to be able to gain better control over energy expenses (whether it be a single building or entire portfolio). Yardi’s Energy Automation platform also continuously monitors and automatically adjusts key setpoints in BMS/BAS systems to maximize energy savings.

• Procure to Pay —A full suite of software products develop to support every step of the procure-to-pay workflow.

• Facilities Management — Provides an efficient way to manage all preventative, routine and emergency tasks for all properties as well as reporting that can be analyzed to create even greater efficiencies.

• Construction Management — Supports all phases of construction projects from pre-development to close-out while

With over 30 years of property management and software implementation experience, Jay Rainaldi is the Professional Services Director for government business at Yardi Systems, Inc. and oversees the implementation, support and client acquisition in the government space. He has served on a number of boards and committees in the residential, military, singlefamily and government arenas during his career and has been a speaker and moderator at numerous industry conferences and events, including a presentation on real estate management in the port industry for the Association of Pacific Ports at the 2019 Winter Conference. providing complete financial oversight with real-time cost tracking, commitments, and budget comparisons.

• Budgeting and forecasting — Continuously measures finances to deliver quick, accurate budgets, custom forecasts and valuations from a single, connected platform.

• Document Management — centralized content management that leverages SharePoint and Microsoft Cloud with regular data syncs for security changes and record updates.

August 2020 — PACIFIC PORTS — 21

RECRUITMENT

U.S. port employment outlook

By Susan Shey Dvonch, Managing Partner Shey-Harding Associates Executive Search, Seal Beach, CA

I

t would take a lot more fingers and toes than I have to count how often I have heard the words “these are interesting times” over the past few months, and that sentiment certainly applies to the U.S. employment situation. But thanks to ports and the goods movement industry being deemed “essential businesses”, we are fortunate that the picture is far less ominous overall for our sector than for many other segments of the economy.

Some of our port partners have indicated they are implementing hiring “pauses” in the short term while others are proactively filling essential front line, mid-management, and strategic leadership positions. With a few highprofile CEO retirements announced for the coming year, we contend it is a good time to be in the market for a port leadership role and that as hiring authorities look to fill openings they should have strong candidates to consider.

Many of the candidates we speak with (both active and passive) view diminishing opportunities in the private sector and uncertainty in the maritime industry as impetus for considering new positions in the port space. With greater residential flexibility for job seekers given today’s travel limitations, they can more seriously consider a desirable new role and have more time to evaluate and make decisions relative to their domestic options.

Today’s hiring processes have taken a definitively different turn with most, if not all interviews conducted by videoconference with limited or nonexistent in-person contact between the candidates and hiring authorities.

Several benefits of this new model include; increased ability to quickly convene interview panels, significant cost reduction, and a more efficient process overall.

While I will always argue the value of the face-to-face job interview, the reality is that travel limitations may limit or

22 — PACIFIC PORTS — August 2020

Today’s hiring processes have taken a definitively different turn with most, if not all interviews conducted by videoconference...

eliminate the practice for some time to come. I suspect this model will become commonplace, with only the last and final step conducted in person (if at all!).

Diligence in candidate vetting, soliciting referrals, and reference checking will become increasingly important in order to ensure a quality hire.

We have helped several port clients fill critical vacancies since early March, resulting in newly appointed executives relocating and commencing employment smack in the middle of a global pandemic. Social distancing, nearly vacant offices, and strict safety protocols have made the traditional onboarding process quite different. Human resources staff within our client companies have had their work cut out for

them more than ever before and through diligence and creativity have helped ensure a smooth springboard under very difficult circumstances.

In order to attract the best possible talent, some critical areas in the hiring process to be considered are; advancing the process expeditiously and efficiently, communicating often and openly with candidates, and proposing an appropriate offer package. The most desirable candidates will typically have a variety of options to consider, including a possible counteroffer from their current employer.

It is important to assess those variables carefully (and early!) and make sure that the best hire will end up your hire!

Stay safe, friends. I look forward to when we can convene again in person.

Susan Shey Dvonch is Managing Partner of SheyHarding Executive Search, a transportation industry recruitment firm established in 1990 and based in Seal Beach, California. Since joining the firm in 2003, she has executed numerous searches at the C- level for companies throughout the U.S. Clients include port authorities, ocean shipping companies, equipment providers, and marine terminal operators. She is a guest lecturer at the Center for International Trade and Transportation at California State University Long Beach and for Lamar University’s Center for Advancement in Port Management.

2020 MEMBERSHIP DIRECTORY

Pull-out reference guide

ASSOCIATION OF

PACIFIC PORTS

APP PORT MEMBERS

2020 APP PORT MEMBERS PORT OF ALASKA

www.portofalaska.com 2000 Anchorage Port Road, Anchorage, AK 99501 USA T: 907-343-6200 E: portofalaska@anchorageak.gov Key staff Stephen Ribuffo, AMPE, Port Director (Steve.Ribuffo@anchorageak.gov) Sharen Walsh, P.E., AMPE, Port Modernization Program Director (Sharen.Walsh@ anchorageak.gov) Commissioners Brad Kroon, Chair | Robert Pawlowski, Vice Chair | Moire Duggan | Stephanie Kesler | Simon Lisiecki | Andy MacLeod | Aves Thompson | Ron Ward | Garret Wong

AMERICAN SAMOA DEPARTMENT OF PORT ADMINISTRATION

americansamoaport.as.gov PO Box 656, Pago Pago, AS 96799 T: 684-633-4251 Key staff Taimalelagi Dr. Claire Tuia Poumele, Director (claire.poumele@gmail.com) Chris King, Deputy Director (king_cjt@hotmail.com)

PORT OF ASTORIA

www.portofastoria.com 422 Gateway Ave, Suite 100, Astoria, Oregon 97103 T: 503-741-3300 (Toll free in Oregon: 800-860-4093) General Inquiries (admin@portofastoria.com) | East or West Basin (marina@portofastoria. com) | Moorage at the pier terminals: (operations@portofastoria.com) Key staff Will Isom, Interim Executive Director (wisom@portofastoria.com) Susan Transue, Director of Terminal & Commercial Services (stransue@portofastoria.com) Matt McGrath, Director of Operations (mmcgrath@portofastoria.com) Commissioners Dirk Rohne, President (drohne@portofastoria.com) | Robert Stevens, Vice President (rstevens@portofastoria.com) | Frank Spence, Secretary (fspence@portofastoria.com) | James Campbell, Treasurer (jcampbell@portofastoria.com) | Scott McClaine, Ass’t Sec/ Treasurer (smcclaine@portofastoria.com)

PORT OF BENTON

www.portofbenton.com 3250 Port of Benton Blvd, Richland, WA 99354 USA T: 509-375-3060 Key staff Diane Howard, PPM, Executive Director (dhoward@portofbenton.com) Stuart Dezember, CPA, PPM, Dir. of Finance (dezember@portofbenton.com) John Haakenson, Dir. of Airport & Operations (johnh@portofbenton.com) Commissioners Jane F. Hagarty, President (hagarty@portofbenton.com) | Robert Larson, Vice President (rnslarson@charter.net) | Roy D. Keck, Secretary (keck@portofbenton.com) APP MEMBERSHIP DIRECTORY — August 2020

APP PORT MEMBERS PORT OF COLUMBIA COUNTY

www.portofcolumbiacounty.org Main Office: 100 E Street, Columbia City, OR 97018 USA Mailing Address: PO Box 190, Columbia City, OR 97018 USA T: 503-397-2888 General email: inquiries@portofcolumbiacounty.org Key staff Douglas Hayes, Executive Director (hayes@portofcolumbiacounty.org) Craig Allison, Property & Operations Manager / Deputy Executive Director (allison@portofcolumbiacounty.org) Commissioners Larry Ericksen, President | Robert Keyser, Vice President | Chris Iverson, Second Vice President | Chip Bubl, Treasurer | Nancy Ward, Secretary

COMMONWEALTH PORTS AUTHORITY

www.cpa.gov.mp PO Box 501055 CK, Saipan, MP 96950 CNMI T: 670-237-6500 Key staff Christopher S. Tenorio, Executive Director Rodney Taisacan, Port of Saipan Manager (Rodney.taisacan@cpa.gov.mp) Antonio L. Borja, Tinian Ports Manager (alborja@cpa.gov.mp) Directors (Email: cpa.boardsec@pticom.com) Kimberlyn King-Hinds, Chair | Pete P. Reyes | Roman T. Tudela | Thomas P. Villagomez | Barrie C. Toves | Joseph M. Diaz | Ramon A. Tebuteb

PORT OF GRAYS HARBOR

www.portofgraysharbor.com 111 South Wooding Street, Aberdeen, WA 98520-0141 USA T: 360-533-9528 Key staff Gary Nelson, Executive Director (gnelson@portgrays.org) Leonard Barnes, Deputy Executive Director (lbarnes@portgrays.org) Commissioners Stan Pinnick (spinnick@portgrays.org) Phil Papac (ppapac@portgrays.org) Tom Quigg (tquigg@portgrays.org)

PORT AUTHORITY OF GUAM

www.portguam.com 1026 Cabras Highway, Suite 201, Piti, Guam 96915 T: 671-477-5931 Key staff Rory Respicio, General Manager (rrespicio@portguam.com) Dominic G. Muna, Deputy GM, Operations (dgmuna@portguam.com) Directors Isa Marie C. Koki (ikoki88@gmail.com) | Francisco Santos (franksantos1914@hotmail.com) | Nathan Taimanglo (ntaimanglo@docomopacific.com) | Anthony P. Chargualaf Jr.

Visit pacificports.org for full details on facilities and capabilities.

August 2020 — APP MEMBERSHIP DIRECTORY

APP PORT MEMBERS STATE OF HAWAII

Department of Transportation – Harbors Division www.hawaii.gov/dot/harbors 79 S. Nimitz Highway, Room 305, Honolulu, HI 96813 USA T: 808-587-2150 Key staff Derek Chow, Deputy Director, Harbors (derek.chow@hawaii.gov) Vanessa Baptiste, Deputy Secretary (vanessa.baptiste@hawaii.gov) Davis Yogi, Harbors Administrator (davis.k.yogi@hawaii.gov)

PORT OF HUALIEN, TAIWAN INTERNATIONAL PORTS CORPORATION, LTD.

https://hl.twport.com.tw/ No.66 Hai-An Road, Hualien City, Hualien County 970, Taiwan T: 886-3-8325131 E: marketing@twport.com.tw Key staff Chwan-Kai Kao , Vice President & CEO Board of Directors Hsien-Yi Lee, Chairman | Shao-Liang Chen, President

PORT OF HUENEME

www.portofhueneme.org 333 Ponoma Street, Port Hueneme, CA 93041 USA T: 805-488-3677 Key staff Kristin Decas, CEO & Port Director (kdecas@portofh.org) Andrew Palomares, Deputy Executive Director, CFO/CAO (apalomares@portofh.org) Commissioners Jess Ramirez, President | Jason Hodge, Vice President | Mary Anne Roney, Secretary | Jess Herrera, Commissioner | Celina Zacarias, Commissioner

PORT OF KAOHSIUNG, TAIWAN INTERNATIONAL PORTS CORPORATION, LTD.

https://kh.twport.com.tw/en/ No.62.Linhai 2nd Road, Gushan District, Kaohsiung, 804002 Taiwan T: 886-7-5612311 E: marketing@twport.com.tw Key staff Kuo-Ming Chang, Vice President and CEO Directors Hsien-Yi Lee, Chairman | Shao-Liang Chen, President

PORT OF KEELUNG, TAIWAN INTERNATIONAL PORTS CORPORATION, LTD.

https://kl.twport.com.tw/en/ No.1, Chung-Cheng Road, Keelung 202202, Taiwan T: 886-2-24206100 E: marketing@twport.com.tw Key staff Shy-Tzong Liou, Vice President & CEO Board of Directors Hsien-Yi Lee, Chairman | Shao-Liang Chen, President APP MEMBERSHIP DIRECTORY — August 2020

APP PORT MEMBERS PORT OF LONG BEACH

www.polb.com 4801 Airport Plaza Drive, Long Beach, CA 90815 USA T: 562-283-7000 Key staff Mario Cordero, Executive Director (mario.coredero@polb.com) Dr. Noel Hacegaba, Deputy Executive Director, Administration and Operations (noel.hacegaba@polb.com) Commissioners Bonnie Lowenthal, President | Frank Colonna, Vice President | Tracy J. Egoscue, Commissioner | Steven Neal, Commissioner

REPUBLIC OF MARSHALL ISLANDS PORTS AUTHORITY

PO Box 109, Majuro, MH 96960 Republic of the Marshall Islands Airport T: 692-247-7612 Seaport T: 692-625-7613 Key staff Captain Joe Tiobech, Director (tiobech@rmipa.com) James P.C. Bing II, Airport Manager (james.bing2@rmipa.com) Thomas Maddison, Seaport Manager (thomas.maddison@rmipa.com) Directors Jack Chong-Gum | Hon. Thomas Heine | Larry Hernandez | Anjojo Kabua | Daisy Alik Momotaro | Robert Pinho | Michael Sawej | Sherwood Tibon

PORT OF NANAIMO

www.npa.ca Box 131, Nanaimo, BC, V9R 5K4 Canada T: 250-753-4146 Key staff Ian Marr, President & CEO (imarr@npa.ca) Mike Davidson, Chief Operating Officer (mdavidson@npa.ca) Jason Michell, Vice President, Business Development (jmichell@npa.ca) Directors (arolston@npa.ca) Donna Hais, Chair | Captain Fred Denning, Vice Chair | Michelle Corfield, Director | Doug White III, Director | Barbara Coe, Director

PORT OF NEWPORT

www.portofnewport.com 600 SE Bay Blvd, Newport, OR 97365 USA T: 541-265-7758 Key staff Paula Miranda, General Manager (pmiranda@portofnewport.com) Don Moon, International Terminal Mgr. (nitsupervisor@portofnewport.com) Commissioners Walter Chuck (wchuck@portofnewport.com) | Jeff Lackey (jlackey@portofnewport.com) | Stuart Lamerdin (slamerdin@portofnewport.com) | Patricia Patrick-Joling (patricia@portofnewport.com) | Sara Skamser (sskamser@portofnewport.com)

Visit pacificports.org for full details on facilities and capabilities.

August 2020 — APP MEMBERSHIP DIRECTORY

APP PORT MEMBERS POHNPEI PORT AUTHORITY

www.ppa.fm P.O. Box 1150, Kolonia, Pohnpei State 96941 Federated States of Micronesia T: 691-320-2793 Key staff Pius Roby, General Manager (pbroby@mail.fm) Directors Alik Alik | Ricky Cantero | Etiny Hadley | William F. Hawley, Sr. | Francisco Mendiola | Lynn Pangilinan | Paulino Rosario

PORT ALBERNI PORT AUTHORITY

https://portalberniportauthority.ca/ 2750 Harbour Road, Port Alberni, BC, V9Y 7X2 Canada Telephone: 250-723-5312 Key staff Zoran Knezevic, President and CEO (zknezevic@alberniport.ca) Mike Carter Director of Operations (mcarter@alberniport.ca) David McCormick, Director, Public Relations and Business Development (dmccormick@alberniport.ca) Directors Ron Crema, Chairman | Ken McRae, Vice Chairman | Allan Haggard | Cynthia Dick | Dennis Jonsson | Jeff Cook | Shelley Chrest

PORT OF PORTLAND

www.portofportland.com P.O. Box 3529, Portland, OR 97208 USA T: 503-415-6000 Key staff Curtis Robinhold, Executive Director (curtis.robinhold@portofportland.com) Keith Leavitt, Chief Commercial Officer (keith.leavitt@portofportland.com) Vince Granato, Chief Operating Officer (vince.granato@portofportland.com) Commissioners Michael Alexander | Sean O’Hollaren | Tom Chamberlain | Alice Cuprill-Comas | Robert Levy | Pat McDonald | Linda Pearce | Tom Tsuruta | Gary Young

PORT OF REDWOOD CITY

www.redwoodcityport.com 675 Seaport Boulevard, Redwood City, CA 94063-5568 USA T: 650-306-4150 Key staff Kristine Zortman, Executive Director (kzortman@redwoodcityport.com) Margaret Astesano, Exec. Assistant/Admin (mastesano@redwoodcityport.com) Donald Snaman, Director of Operations (dsnaman@redwoodcityport.com) Commissioners Richard Claire (rclaire@redwoodcityport.com) | Richard Dodge (rdodge@ redwoodcityport.com) | Simms Duncan (sduncan@redwoodcityport.com) | Ralph Garcia (rgarcia@redwoodcityport.com) | Lorianna Kastrop (lkastrop@redwoodcityport.com)

APP MEMBERSHIP DIRECTORY — August 2020

APP PORT MEMBERS PORT OF RICHMOND

www.ci.richmond.ca.us P.O. Box 4046, Richmond, CA 94804 USA T: 510-215-4600 Key staff James C. Matzorkis Executive Director (jim_matzorkis@ci.richmond.ca.us) Lucy Zhou Port Marketing/Operations Manager (lucy_zhou@ci.richmond.ca.us) Janie Singleton Operations Administrator (janie_singleton@ci.richmond.ca.us)

PORT OF SAN DIEGO

www.portofsandiego.org P.O. Box 120488, San Diego, CA 92112-0488 USA T: 619-686-6200 Key staff Randa Coniglio, President / CEO (rconigli@portofsandiego.org) Robert “Bob” DeAngelis, VP / CFO (rdeangelis@portofsandiego.org) Michael LaFleur, VP / Maritime (mlafleur@portofsandiego.org) Karen Porteous, VP/CAO – kporteou@portofsandiego.org Commissioners Garry Bonelli (gbonelli@portofsandiego.org) | Rafael Castellanos (rcastellanos@ portofsandiego.org) | Dan Malcolm (dmalcolm@portofsandiego.org) | Marshall Merrifield (mmerrifield@portofsandiego.org) | Ann Moore (amoore@portofsandiego.org) | Robert (Dukie) Valderrama (rvalderr@portofsandiego.org) | Michael Zucchet (mzucchet@portofsandiego.org)

PORT OF SKAGIT

www.portofskagit.com 15400 Airport Drive, Burlington, WA 98233 USA T: 360-757-0011 Key staff Patsy Martin, Executive Director (patsy@portofskagit.com) Scott Peterson, Director of Business Development and Real Estate (scott@portofskagit.com) Commissioners Dr. Kevin E. Ware (District 1) | Steven Omdal (District 2) | William Shuler (District 3)

PORT OF STOCKTON

www.portofstockton.com PO Box 2089, Stockton, CA 95201 USA T: 209-946-0246 Key staff Richard Aschieris, Director(raschieris@stocktonport.com) Steve Escobar, Deputy Port Dir., Real Estate & Dev. (sescobar@stocktonport.com) Jason Katindoy, Director of Maritime Operations (jkatindoy@stocktonport.com) Melanie Rodriguez, Assistant to Port Director (mrodriguez@stocktonport.com) Commissioners (commissioner@stocktonport.com) Sylvester Aguilar | Jay Allen | Elizabeth Blanchard | Gary Christopherson | Michael Patrick Duffy | Stephen Griffen | Victor Mow

Visit pacificports.org for full details on facilities and capabilities.

August 2020 — APP MEMBERSHIP DIRECTORY

APP PORT MEMBERS PORT OF TAICHUNG, TAIWAN INTERNATIONAL PORTS CORP.

https://tc.twport.com.tw/en/ No.2, Sec. 3, Zhongqi Road, Wuqi Dist., Taichung City 43501 Taiwan T: 886-4-26562611 E: marketing@twport.com.tw Key staff Chan-Yu Lu, Vice President & CEO Board of Directors Hsien-Yi Lee, Chairman | Shao-Liang Chen, President

PORTS AUTHORITY TONGA

www.portsauthoritytonga.com P.O Box 144, Vuna Road, Ma’ufanga, Nuku’alofa Kingdom of Tonga T: (+676)23168 Key staff Mosese Lavemai, CEO (mlavemai@portsauthoritytonga.com) Etikeni Samani, Risk & Compliance Mgr. (etikeni.samani@portsauthoritytonga. com) Board members (Tomifa Paea (tfpel@hotmail.com) Dr. Sione Ngongo Kioa, Chairman | Dr. Sitiveni Halapua | Mr. Fine Tohi | Mr. Seventeen Toumoúa | Mr. Sateki ‘Ahio

PORT OF UMATILLA

https://portofumatilla.org/ PO Box 879 Umatilla, OR 97882 USA Telephone: 541-922-3224 Key staff Kim B. Puzey, General Manager (kimpuzey@uci.net) Commissioners Jerry Simpson | Kurt Bendixsen | Jerry Baker | Jerry Imsland | Robert J. Blanc

APP LIFE MEMBERS Larry Aikins Hugh Anderson Mike Avent Walt Barham Dan Buell Antonio Camacho Jack Chong-Gum Bill Clark Mario Cordero Jack Castle Stanley Daily Thomas Fujakama

APP MEMBERSHIP DIRECTORY — August 2020

Mike Giari Byron Hanke Dave Hunt Bob Jennings Joe Johnson Ieske Iehsi Frank Kitchell Stan Kurowski Susan Lew Ken Maddison Brad Madelung Chris Marshall

Fugo Matsuda Robert McCrorie Edward Millan Lewis Miller Bill Mills Robert Penner Melvin Shore Patrick Trapp Lonnie Washington Don White Miriam Wolff James Wright John Chung-Chuang Wu

APP ASSOCIATE MEMBERS

2020 APP ASSOCIATE MEMBERS ADELTE

www.adelte.com Headquarters: Avenida Josep Tarradellas nº20, 4th Floor 08029 Barcelona Spain T: +34 933 632 294 Key contacts Jordi Floreta, Vice-President & Port Business Unit Director (jfloreta@adelte.com) Martin Westphal, Group Marketing Director (mwestphal@adelte.com)

AM INSURANCE

www.amibrokers.com J&G Commercial Center Suite 113F, 215A Chalan Santo Papa Street, Hagatna, Guam 96910 Mailing address: P.O. Box 2797, Hagatna, Guam 96932 USA T: 671-477-2632 / 671-477-2642 Email: contact@amibrokers.com Key contacts Annmarie Muna, President & General Manager (amuna@amibrokers.com) Tricia Granillo, VP/Marketing Manager (tgranillo@amibrokers.com) Juan Muna, VP/Insurance Services Manager (jmuna@amibrokers.com)

AMERICAN SAMOA OFFICE OF DISASTER ASSISTANCE AND PETROLEUM MANAGEMENT

American Samoa Government www.americansamoa.gov Lions Park Lua Street, 96799 Pago Pago T: +1 684-699-6467 Key contacts Alfonso P. Galea’i, Director Sione Lotolua Lousiale kava, Petroleum Officer (captain_kava@hotmail.com)

ANCHOR QEA

www.anchorqea.com 720 Olive Way #1900, Seattle, WA 98101 USA T: 206-287-9130 Key contacts Tom Schadt, Partner (tschadt@anchorqea.com) Tom Wang, Partner (twang@anchorqea.com )

THE BECKETT GROUP

www.thebeckettgroup.org 8715 Randall Dr NW, Gig Harbor, WA 98332 USA T: 253-905-8904 Key contact Jeannie Beckett, Principal (jbeckett@thebeckettgroup.org)

BEST BEST & KRIEKER LLP

www.bbklaw.com 300 South Grand Ave, 25th Floor Los Angeles CA 90071 USA T: 213-787-2569

BNAC ENVIRONMENTAL SOLUTIONS INC.

www.bnac.ca 1260 Cliveden Avenue, Delta, BC V3M 6Y1 Canada T: 1-877-566-2622 Key contacts Chris Richardson, Founder (chris@bnac.ca) Alana Richardson, Customer Relations (alana@bnac.ca)

BUSINESS OREGON INFRASTRUCTURE FINANCE AUTHORITY

www.orinfrastructure.org 775 Summer St NE #200, Salem, OR 97301 USA T: 503-949-1710 Key contact Stephanie Prybyl, Ports Programming (stephanie.prybyl@oregon.gov)

EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC., PBC

www.eaest.com 2200 6th Ave #707, Seattle, WA 98121 USA T: 206-452-5350 Key contacts Richard Price, Program Manager (rprice@eaest.com) Chip Brown, Hawaii-Guam Operations Manager (cbrown@eaest.com)

Visit pacificports.org for full details on goods and services offered.

August 2020 — APP MEMBERSHIP DIRECTORY

APP ASSOCIATE MEMBERS EAGLE ROCK AGGREGATES, INC.

www.polarismaterials.com 700 Wright Avenue, Richmond, CA 94804 USA T: 510-231-2200 Key contact Rob McIntosh, GM, California Operations (rmcintosh@eagleaggregates.com)

FCS GROUP

www.fcsgroup.com 5335 Meadows Road, Ste. 330, Lake Oswego, OR 97035 USA T: 425-867-1802 Key contact Todd Chase, Senior Project Manager/Economist (toddc@fcsgroup.com)

GREAT LAKES DREDGE & DOCK COMPANY

www.gldd.com 2122 York Road, Oak Brook, IL 60523 USA T: 630-574-3000 Key contact Bill Hanson, VP, Gov. Relations & US Business Development (whhanson@gldd.com)

HAYNES AND BOONE, LLP

www.haynesboone.com Headquarters: 2323 Victory Ave #700, Dallas, TX 75219 USA T: 949-202-3037 London: +44 (020) 8734-2800 Orange County: 949-202-3000 Palo Alto: 650-687-8800 Shanghai: +86-21-6062-6179 Key contact David Bender, Partner (david.bender@haynesboone.com)

KECO PUMP-A-HEAD

www.pumpahead.com PO Box 80308, San Diego, CA 92138 USA T: 619-298-3800 Key contact Alex Bleier, Vice President (alex@pumpahead.com)

LEVIN RICHMOND TERMINAL CORP.

www.levinterminal.com 402 Wright Avenue, Richmond, CA 94804 USA T: 510-307-4009 Key contacts Barbara O’ Neill, VP of Marketing & Sales (barbara@levinterminal.com) Pat O’Driscoll, VP of Operations (pato@levinterminal.com)

LIEBHERR – PORT EQUIPMENT

www.liebherr.com 15101 NW 112th Avenue, Hialeah Gardens, FL 33018 USA T: 305-817-7500 Key contacts Helmut Deutsch, General Manager (helmut.deutsch@liebherr.com) Jonathan Luikens, Senior Sales Manager (jonathan.luikens@liebherr.com)

LIFTECH CONSULTANTS INC.

www.liftech.net 344 20th Street #360, Oakland, CA 94612-3593 USA T: 510-832-5606 Key contacts Erik Soderberg, President, Principal (esoderberg@liftech.net) Sugiarto Loni, Principal (sloni@liftech.net)

LYNKER TECHNOLOGIES, LLC

www.lynker.com West Coast and Pacific Office: 740 Moowaa Street, Suite G, Honolulu, HI 96817 USA Corporate Headquarters: 202 Church Street, SE / Suite 536, Leesburg, VA 20175 USA T: 855-596-5371 Key contact Sarah Pautzke, Scientist and Lynker’s Marine, Ocean, and Coastal Science Information Group and Sustainable Pacific Program (SPP@lynkertech.com)

MAJURO STEVEDORE & TERMINAL CO.

PO Box 1018, Majuro, MH 96960 RMI T: 692-625-3369 Key contact Charles Stinnett, Managing Director (charles@mstcormi.com)

Visit pacificports.org for full details on goods and services offered.

APP MEMBERSHIP DIRECTORY — August 2020

APP ASSOCIATE MEMBERS MARITIME AND PORT BUREAU, MOTC (TAIWAN)

www.motcmpb.gov.tw No.1, Ln. 1, Sec. 3, Heping E. Road, Da’an Dist., Taipei City 10669, Taiwan T: 886-2-8978-2790 Key contact Tien-Kuei Kuo, Director-General (director@motcmpb.gov.tw)

MATSON

www.matson.com Guam: 1026 Cabras Hwy, Suite 115, Piti, Guam 96925 T: 671-475-5961 Honolulu: 1411 Sand Island Pkwy, Honolulu, HI 96819 USA T: 808-848-1211 Key contacts Vic Angoco, Sr. Vice President, Pacific Region (vangoco@matson.com) Lek Friel, Container Operations Manager (lfriel@matson.com)

MIDSTREAM LIGHTING LTD.

www.midstreamlighting.com US Headquarters: 66 West Flagler Street, Miami, FL 33130,USA T: 888-549-6775 Key contact Rory McBride, Global Sales – Maritime (Rory.McBride@Midstreamlighting.com) T: 407-534-0191

MOFFATT & NICHOL

www.moffattnichol.com 4225 E. Conant Street, Long Beach, CA 90808 USA T: 562-590-6500 Key contacts Richard Steinke, Ports Practice Leader (rsteinke@moffattnichol.com) Dan Allen, Vice President (edallen@moffattnichol.com) Dean Kokubun, Hawaii Business Unit Manager (dkokubun@moffattnichol.com)

NAUTICAL CONSULTING INTERNATIONAL LTD.

www.nauticalconsulting.com 207-15025 Victoria Avenue, White Rock, BC V4B 1G2 Canada T: 1-778-863-0026 Key contact Captain Brian Tuomi (briantuomi@nauticalconsulting.com)

NORDCO SHUTTLEWAGON

www.shuttlewagon.com 8701 Elmwood Avenue, Suite 300, Kansas City, MO 64132 T: 816-767-0300 Key contact Brian Talbot (btalbot@nordco.com)

REID MIDDLETON INC.

www.reidmiddleton.com 728 134th St SW #200, Everett, WA 98204 USA T: 425-741-3800 Key contact Shannon Kinsella, PE, PMP, LEED AP, Director, Airport & Waterfront (skinsella@reidmidd.com)

SCHRADER CO. SALES, LLC.

www.schraderco.com 514 State Ave Suite 202, Marysville, WA 98270 USA T: 425-377-1550 Key contacts Tom Spear, Partner (tom@schraderco.com) Brian Jones, Partner (brian@schraderco.com)

SHEY-HARDING EXECUTIVE SEARCH

www.shey-harding.com PO Box 67, Seal Beach, CA 90740 USA T: 562- 799-8854 Key contacts Susan Dvonch, Managing Partner (sue@shey-harding.com) Jeff Dvonch, Partner (jeff@shey-harding.com)

SSA MARINE

www.ssamarine.com 1131 SW Klickitat Way, Seattle, WA 98134 USA T: 206-623-0304 Key contact Joe Carrillo, SSA Pacific-Northern California operations (Joe. Carrillo@SSAMarine.com) - Direct: +1-209-420-5693

SWCA ENVIRONMENTAL CONSULTANTS

www.swca.com PO Box 61442, Irvine CA 92602 T: 602-274-3831 Key contact Scott Slessman, Senior Vice President, Business Development Resources (sslessman@swca.com)

August 2020 — APP MEMBERSHIP DIRECTORY

APP ASSOCIATE MEMBERS TRUK TRANSPORTATION COMPANY (TRANSCO)

PO Box 99, Chuuk, FSM 96942 T: 691-330-2143 Key contacts Myron Hashiguchi, President/CEO (transco@mail.fm) Gideon Bisalen, General Manager (transco@mail.fm

WSP USA

www.wsp.com 999 3rd Ave #3200, Seattle, WA 98104 T: 206-382-5200 Key contact James Reed, Pacific Northwest Maritime Manager (j.reed@wsp.com)

YARDI SYSTEMS

WESTERN WOOD PRESERVERS INSTITUTE

www.preservedwood.org 12503 SE Mill Plain Blvd #205, Vancouver, WA 98684 USA T: 360-693-9958 Key contacts Dallin Brooks, Executive Director (dallin@preservedwood.org) Becky Ellis, Office Administrator (becky@preservedwood.org)

www.yardi.com 430 S Fairview Avenue, Goleta, CA 93117 USA T: 800-866-1124 Key contact Carla Beltran, Event Coordinator, Marketing (carla.beltran@yardi.com)

Building partnerships throughout the Pacific APP members share a common vision:

To provide an efficient, fluid, and cost-effective supply chain in a safe, environmentally sustainable and economically viable manner...

We can help.

With a focus on collaboration, the APP encourages and facilitates best practices and professional development through networking conferences, technical workshops and strong communications.

Visit www.pacificports.org to learn more about the benefits of membership.

Contact: Jane McIvor jane@pacificports.org | 1+604-893-8800 APP MEMBERSHIP DIRECTORY — August 2020

ASSOCIATION OF

PACIFIC PORTS

PORT ACTIVITY UPDATE

Diversity helps ports weather COVID-19 storm

I

f there’s one take-away from this year’s Port Activity Update, it’s that those with a strategy of diversifying their port’s activities are weathering the storm that is 2020. Another takeaway is the stellar response from port management and executive. Without exception, each port activity update highlights sensible and measured steps taken to ensure supply chains remain fluid, staff are protected from the spread of COVID-19, and forecasts and budgets are adjusted quickly to ensure sustainable port operations.

While ports around the world — and the economies they support — are experiencing the loss of cruise ship seasons, blank sailings, interrupted supply chains and staff layoffs, APP Members are holding steady and responding capably. Here then, is a snapshot of activities around the Pacific...

American Samoa Port Administration

The Port of Pago Pago serves the U.S. Territory of American Samoa and is the gateway to other pacific islands as well as U.S. and international ports. As administrators of the territory’s ports, the Department of Port Administration continues to work toward meeting the

Pago Pago Harbor

While ports around the world ... are experiencing the loss of cruise ship seasons, blank sailings, interrupted supply chains and staff layoffs, APP Members are holding steady... everchanging need of the port users.

Highlights of activity for 2019/2020 include receiving over $7.5 million in port infrastructure projects aimed at improving maritime operations that include a new 453-foot dock extension, a new terminal building, harbor dredging, repairs to Ro-Ro ramp from storm damage, and new container tracking and billing system. In addition, the Port of Pago Pago was just awarded $943,000 from MARAD to improve the port lighting, replace dock fendering, repair the container yard, and purchase forklifts for the inter-island ferry cargo operation.

To date, American Samoa has no confirmed cases of COVID-19. The airside borders remain closed, with only Military/FEMA and cargo flights being allowed to land after being properly vetted; however, the aircrew remain on board. Small feeder aircraft flights with minimal passengers from neighboring island Samoa (that is also COVD-19 free) are being allowed entry on repatriation missions to return America Samoa

citizens on a limited basis. All passengers are screened by Public Health and are put in a 14-day quarantine facility.

The local Longline and Purse Seine Fishing Fleet have been challenged by the closure of the borders given a lack of flexibility to fly in personnel for crew changes.

The maritime borders are only open to cargo, tankers, and fishing vessels that support the local tuna canneries.

Cargo and stevedoring operations continue, with vessel crews having minimal-to-no contact with local clearance parties and stevedoring crews. The Port of Pago Pago has adopted a No-Contact policy for all vessel clearances however, Harbor Pilots continue to board and guide vessels into port but under strict health and safety rules/procedures for both the pilots and crews. Public Health monitors the stevedoring and Pilots on a continuous basis.

Cargo volumes remained steady in the beginning of the year during the onset of COVID-19 and in this past quarter, the

Photo: Iseulaolemoana - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=80921106

August 2020 — PACIFIC PORTS — 35

ACTIVITY UPDATE

Photo courtesy of Port of Alaska

Port of Alaska, Anchorage

The Port [of Alaska] has a number of activities underway as part of a multi-year, multi-million-dollar investment strategy that will see critical upgrades to infrastructure, ultimately improving operational efficiency...

Port experienced a 15-per cent increase in cargo/container volume. This can be attributed to the increase in spending power from the recent distribution of U.S. stimulus funds, whereas local businesses, shops and stores are ordering more to keep up with demand.

With the increase of containerized volume, the container yard has reached its capacity and excess empties are being stored off site. The challenge with that is the ability to get the empties back to port and loaded onto outgoing ships.

Our preliminary forecasts indicate that the volume will level off by the end of the year but given the situation with COVID-19 and how it is affecting the global market and supply chains, there’s just no way to predict.

For the coming year, the Port’s priorities remain the same — namely, keeping the port infrastructure, shipping and supply chains open. American Samoa is an island 2,500 miles from Hawaii and does not have the luxury of interstate rail or roadways to deliver goods and services. We are reliant on the maritime system to provide fuel and most of our food. While there are currently no reported disruptions to U.S. West Coast ports, or south and eastbound international ports — on which American 36 — PACIFIC PORTS — August 2020

Samoa relies for its supply chain we will continue to monitor the marine sector and adapt to changing conditions as quickly as possible.

Port of Alaska

Aside from the loss of the 2020 cruise season, Port Director Steve Ribuffo reported that it has been “business as usual” for the Port of Alaska. “We’ll lose 14 port calls and approximately $250,000 in revenue,” he said. “It’s not a game changer given our very diverse business model, and while it stings, it hasn’t been crippling.” Indeed, Ribuffo noted that there have been no adverse impacts for both the cargo and liquid bulk sectors supported by the Port, including three general cargo terminals, two petroleum terminals, a dry barge landing, bulk cement-handling, gantry cranes and Roll-on/Roll-off capability.

The Port has a number of activities underway as part of a multi-year, multimillion-dollar investment strategy that will see critical upgrades to infrastructure, ultimately improving operational efficiency, accommodating modern shipping operations as well as building in greater resiliency and optimization of facilities to keep up with changing economic and market needs. Project

benefits include increased capacity; new ship-to-shore cranes to allow for larger container vessel visits; greater seismic resilience, and improved post seismic event operational capability; and a 75-year design life to reduce current maintenance requirements In November 2019, the Port was successful in securing a $25-million grant from the U.S. Department of Transportation’s Better Utilizing Investment to Leverage Development (BUILD) Program and another $20 million provided as part of the DOT’s Infrastructure Development Program.

The funds will help complete the $214-million petroleum and cement terminal project now under construction.

“The Petroleum/Cement Terminal construction is proceeding nicely,” said Ribuffo. “Because the contractor (Pacific Pile & Marine) is from the Seattle area, there was a late start while they satisfied both Washington State and Alaska COVID-19 travel protocols, but that’s been behind us now and construction is progressing unimpeded.

Most of the trestle and platform piles are in place; and the precast trestle and platform sections will be on their way to us by barge shortly.” He added that the platform and trestle structures will be completed by the end of this season and, by next summer, the fendering will be added along with the fuel and cement offloading infrastructure. He expects the project will finish on time by the end of the 2021 construction season.

Port of Columbia County

Attributing the minimal impact of COVID-19 on operations to the diversity of tenants and activities, Executive Director Doug Hayes was pleased to report that business at the Port of Columbia County was strong. “We’ve been doing well enough that we’ve actually hired a few new staff and, in late June, our Commissioners voted to set our tax rate to zero for the coming year for residents and businesses within the port district,” he said, adding that the Port’s multi-year growth trend continues.

Starting first with a review of the Scappoose Industrial Airpark,

ACTIVITY UPDATE over the past few years,” Hayes said, “but Portland is pretty much saturated and companies are looking northward.

We’ve been fortunate in that respect.

It allows us to be more selective in the type of industries we want to see develop here.”

Admittedly acknowledging that forecasting during a pandemic is tricky, when asked, Hayes said they were continually monitoring and adjusting numbers as the year has progressed, but “having a strong, strategic vision has certainly helped.”

Commonwealth Ports Authority, Northern Mariana Islands

The rezoning of land at Port Westward is almost approved.

Also at Port Westward, Hayes highlighted the lease signed late last year with NEXT Renewable Fuels Oregon for a 90acre site.

Hayes reported that, in addition to a new 31,500-square-foot building for Devainaire, the Port is entering into a one-year lease agreement with Pipistrel, a Slovenian company with a large presence in Europe, for property to conduct flight training. With significant interest being expressed by additional companies, Hayes and his team will continue to keep the airport on its top-three list — along with Port Westward and McNulty Creek Industrial Parks — for continued focus in business development.

At the APP’s Winter Conference in Hawaii this past January, Hayes described the process underway to rezone 837 acres of land at the Port Westward site. Given that the Port first sought to rezone the land in 2013 but was blocked by Columbia Riverkeeper, Hayes was happy to note that, with their recent submission to the last outstanding question, a decision is now pending and should be received by late October.

Potential uses for the land include a gas-to-methanol plant or refinery for diesel made from palm and vegetable oils.

Also at Port Westward, Hayes highlighted the lease signed late last year with NEXT Renewable Fuels Oregon for a 90-acre site. NEXT is investing $1 billion dollars into facilities that will see the production of 50,000 barrels of biofuels per day (once at full capacity).

Hayes estimated that the project will employ over 200 skilled, local workers.

Additional news for the Port of Columbia County included the recent approval for Global Clatskanie Terminal to add renewable diesel exports. Providing a good example of global demand for fuels, the Clatskanie Terminal, prior to being purchased by Global in 2013, was a transload facility for crude oil; Global shifted to ethanol by 2015 and now, to the cleaner, renewable diesel derived from plant and animal byproducts.

While Hayes and his team have been hindered by the ability to meet in person with potential new stakeholders for the Port, they continue to field a lot of interest, especially from international parties. “There has been a lot of interest in the Portland area

The Commonwealth Ports Authority (CPA), Port of Saipan has seen a gradual decrease in both inbound and outbound cargoes since the CNMI Office of the Governor issued the Executive Order No. 2020-04 which states “Declaration of State of Public Health Emergency and Continued Declaration of State of Significant Emergency Establishing Response, Quarantine, and Preventive Containment Measures Concerning Corona Virus Disease 2019 (COVID19).” On the same Executive Order No. 2020-04, it states that “it is hereby ORDERED that DIRECTIVE 7: Effective immediately, and until further notice, all government offices and all non-essential government functions are shut down for two weeks. All nonessential personnel are asked to stay home until further notice. Essential personnel shall be identified for COVID-19 public health emergency related work.

Mayors of the municipalities shall have discretion in designating employees that engage in public health emergency related work.” As a result, the Port is seeing a decrease in incoming commodities, especially the constructions materials.

The impact of COVID-19 has reduced inbound containers as well as commercial vessels calling on Port of Saipan by almost 40 per cent for May 2020 compared to April 2020. In terms of port operations, it has reduced activity compared to the last fiscal year where at times the Port was very congested with vessels calling the Port of Saipan.

August 2020 — PACIFIC PORTS — 37

ACTIVITY UPDATE

Port of Saipan At this present time, the operation or activity at the port runs very smoothly.

The Commonwealth Ports Authority (CPA), Port of Saipan priorities in the future will be to expand the port area for the operation of the Ro/Ro Passenger Ferry Vessel so it will not hamper any activities related to military or commercial vessels and will ease the traffic of different vehicles entering the Port areas. The biggest concern will be the safety and security for both or either parties.

The Port of Saipan had forecast for the coming years that there would be an increase in passenger activities between the islands of Tinian and Saipan as proposed by a company to serve both islands. With this in mind, this would increase the activity of passengers here at the port and will benefit most especially our local people and hopefully we will see increase in revenue as well as local economy.

Automobiles: 2018 pre-COVID-19 — CY numbers were 319,510 autos; volumes grew in 2019 by over eight per cent prior to COVID-19 and we were trending upwards.

Port of Hueneme

The Port of Hueneme has remained fully operational during the pandemic with increased safety efforts and implementation of social distancing amongst other operational adjustments to ensure the safety and security of our workforce.

As 55 per cent of the Port’s revenue comes from automobile imports and exports, the shutdowns in the U.S. and internationally of 100 per cent of the auto plants have shown drastic ripple effects. The Port began to be impacted by the decreasing volume of imports as auto plants began to shut down in the Asian and European markets. The biggest impact was felt beginning in May with average auto ship arrivals going from about four per week, down to approximately one per week — a trend that is projected to remain through July. For the first four months of 2020, the Port saw an approximate 32-per-cent decline in auto volumes compared to the same time period last year.

The Port is assisting with options of storing vehicles on-Port and off-Port as needed to allow for the local auto processor to work through inventory on hand and further allow the supply 38 — PACIFIC PORTS — August 2020

Automobiles post-COVID-19 — Autos YTD: first four months CY 2019 vs 2020; the Port’s auto volumes were down approximately 32 per cent.

Fruit segment post-COVID-19: The Port has seen overall growth for the first quarter of 2020 versus the first quarter of 2019 CY — eight per cent growth YOY predominantly in the fruit import and export segments. Bananas were slightly down by approximately six per cent YOY for the same time period.

ACTIVITY UPDATE chain downstream to unclog as result of shutdowns and quarantine.

On the fruit and fertilizer side, volumes have remained steady and a slight growth in fresh fruit commodities imports and exports — eight per cent total for the first three months of 2020 compared to the first quarter of 2019. Forecast for fruit at the close of this fiscal year is three per cent growth down from what was an eight per cent trajectory.

COVID-19 has impacted the industry in the apparent need for more visibility throughout the supply chain in order to plan for safety of workforce, operations, contraction and expansions of storage space needs, cash flow, and other planning reasons. The supplier and client relationships are always paramount and especially important during a crisis, so problems are solved faster and solutions can be worked out in a collaborative environment with as much real-time information as possible.

The Port is working closely with customers to forecast future trends however, it is still uncertain how the rest of 2020 volumes will be. It’s likely that volumes will be softer than last year due to COVID-19 impacts.

Port of Nanaimo

Taking an aggressive approach towards diversification, utilizing Nanaimo’s deep sea shipping terminals coupled with cost-efficient short sea shipping links to Vancouver, the Port of Nanaimo is focused on the future.

Ian Marr, President & CEO, noted that work is continuing on the development of the Port’s Duke Point property for containers and breakbulk, while the auto import terminal and vehicle processing center at the Nanaimo Assembly Wharves is now operational with partners Western Stevedoring and the British Columbia Vehicle Processing Center.

Jason Michell, VP Business Development adds: “Our main focus currently is the completion of the $100-million Duke Point Terminal expansion project with our partners, DP World and Transport Canada through the National Trade Corridor Fund. The planned upgrades would nearly double

Port of Hueneme the length of the berth, and double upland paved capacity, giving us the opportunity to provide container vessel servicing while improving short sea and breakbulk vessel operations.”

“The 2019 fiscal year demonstrated that the Port of Nanaimo’s diversification strategy has had a successful impact on the financial numbers, making it second only to 2018 in terms of gross revenues,” wrote Marr in the Port of

Nanaimo 2019 Annual Report. Indeed, as part of that strategy, the introduction of the BC Vehicle Processing Center in early 2019 has proven to be a great addition to port activities.

Despite the loss of the 2020 cruise season that would have welcomed seven visits to Nanaimo’s world-class Welcome Centre, Michell and his team are making progress with community and industry partners investing in a new

The Port of Nanaimo’s short sea shipping routes to Vancouver — the closest link to B.C.’s Lower Mainland.

August 2020 — PACIFIC PORTS — 39

ACTIVITY UPDATE “The 2019 fiscal year demonstrated that the Port of Nanaimo’s diversification strategy has had a successful impact on the financial numbers..." website and videos highlighting how Nanaimo and the Central Island provide unique, immersive experiences for passengers. “We are well positioned to welcome the industry back to Nanaimo when everyone is ready,” Marr said, Of considerable importance is the recently renewed commitment to work closely with the City of Nanaimo by formalizing a new Protocol agreement. The agreement establishes “an effective and collaborative relationship between the parties and a process and understandings that will advance shared opportunities, agreements and mutual benefits. Additionally, the City of Nanaimo invited the Port to sit on the Nanaimo Economic Development Task Force, further complimenting the value of the opportunities presented to the community through the maritime industry. On this note, Marr adds “Duke Point has great potential to become a warehousing, distribution, and manufacturing hub in the Gateway given the industrial land availability and central location.”

Port Alberni

Port Alberni Port Authority

Despite a predicted hit of between 20 and 30 per cent of revenues due to COVID-19, CEO Zoran Knezevic remains positive about Port Alberni Port Authority’s future. “Volumes of throughput will be down this year, as will tourism-related revenues from our marinas and campground. We had three cruise ship visits from Holland America in 2019 that added modestly to our bottom line, though none were scheduled for 2020,” he said, adding that the Port has “been working hard over the last few years at diversifying and growing other clusters of maritime activity and these areas continue to be strong.”

Looking at these new hubs, none is more exciting for Knezevic than the potential to develop a container service for the west coast of Vancouver Island.

The San Group — who recently opened a new sawmill, purchased a specialty sawmill earlier this year and is building a remanufacturing plant nearby — have been looking at the possibility of shipping 300 to 400 containers per month.

Port of San Diego Add to that 60 to 70 reefer containers for Port Alberni’s growing seafood processing sector and 30 to 60 containers for Thunderbird Spirit Water and Knezevic estimates a healthy 500 containers per month plus service for returning empty containers back to the Vancouver Mainland. “We’ve started speaking with local terminal operators as well as options for short sea shipping and moving containers by barge,” Knezevic said,

ACTIVITY UPDATE

noting that discussions were in the early stages.

Port Alberni has been developing a food processing hub with five confirmed anchor tenants — two oyster producers, one seaweed, one mushroom and other land-based “foraged foods” and, an experienced general seafood smoker and processing company.

Additionally,- Independent Seafoods Canada Corporation now has two freezer trawlers based in Port Alberni.

Knezevic is quick to point out that the growth of one industrial hub often leads to others — case in point: the expansion of Port Alberni’s shipbuilding and repair industry. “There are ongoing efforts to bring a floating dry dock here which would add to our shipbuilding and repair capabilities, especially for larger vessels like BC Ferries and Federal Government vessels. If it comes to fruition, it will mean hundreds of jobs for the area.”

Looking further into the future, Knezevic and his team have been working on the long-term vision of “PATH” — the Port Alberni Trans-shipment Hub. The concept of a two-million-TEU, fully automated container terminal is gaining traction with the South Korean government who are now seriously exploring the viability of the hub. In addition to benefits such as being a green field site, deep-sea access, and other synergies,

The concept of a two-million-TEU, fully automated container terminal is gaining traction with the South Korean government who are now seriously exploring the viability of PATH — the Port Alberni Trans-shipment Hub. Vancouver Island’s designation as a Canadian Foreign Trade Zone (FTZ) greatly simplifies importing and exporting as well as duty relief, providing a significant advantage for Port Alberni.

Port of San Diego

With year-over-year growth for the last decade, the Port of San Diego is expecting the busiest summer in year for their breakbulk and project cargo business despite the current situation with COVID-19. “We don’t anticipate a drop off in breakbulk and project cargo,” said the Port’s Joel Valenzuela, Director of Maritime, “but if the effects of COVID-19 extend for another year, we would be negatively affected.”

Valenzuela added that container business with Dole Fresh Fruit Company continues to do well.

The ongoing COVID-19 crisis has had a somewhat delayed impact on Ro/ Ro cargo, in that most inbound Ro/Ro vessels require a 15 to 30-day voyage from their origin port prior to reaching National City Marine Terminal (NCMT).

As the crisis progressed in Europe and Asia, existing port stock from those areas continued to be loaded and dispatched to North America. Only after the pandemic escalated to serious levels in the origin countries in Asia and Europe did vessel loading slow down, and in the case of Europe, cease altogether for a brief period. NCMT continued to receive a steady stream of inbound Ro/Ro vessels throughout March and mid-April, which gradually began to slow in late April and early May. As the last of the vessels loaded at origin and dispatched during the pre and early COVID-19 periods are arriving, Europe has begun to re-open manufacturing plants, and will likely begin loading and dispatching vehicles in the coming weeks. Thus, there may be a 15 to 30-day lag period, between the last of the pre and early COVID-19 period vessels, and the more recent vessels carrying newly restarted production from Europe.

Several of the Asian countries never actually ceased manufacturing and August 2020 — PACIFIC PORTS — 41

ACTIVITY UPDATE shipping of vehicles through COVID19, although they may have reduced volumes somewhat. Therefore, the Asiato-NCMT volumes never really stopped, they just reduced for four to eight weeks.

As the U.S. COVID-19 crisis escalated, several dealers in the USA stopped accepting new vehicles due to forced closure and stay-at-home directives. The net effect of this was a slight buildup of inventory at the U.S. Ports. As the U.S. begins to recover from the COVID-19 crisis, there should be sufficient vehicle inventory to sustain the re-emerging market until the newly built production from Europe, and the increased production from Asia, arrives by vessel in early June.

In other areas of activities, the Port of San Diego continues to be committed to its cruise business and cruise partners and is eagerly awaiting the restart of this important sector. “The cruise industry has an immense economic impact on our region with each homeported cruise generating an average of $2 million for the local economy,” noted Valenzuela.

“That being said, the process of rebuilding will be long. New health standards and processes will need to be implemented across cruise destinations.

Cruise lines won’t be sailing from U.S. ports until September 15, 2020. Here at the Port, we are scheduled to have our cruise business begin in September, as it usually does. It is difficult to anticipate how many cruise calls may be cancelled

The Swinomish Channel in the Skagit Valley 42 — PACIFIC PORTS — August 2020

in the coming months, but we expect that disruptions will continue through the next cruise season.”

Port of Skagit

The Port of Skagit continues to make good progress on several initiatives, including the completion of a $5-million dredging project at the La Conner Marina just in time to mark its 50th.

They also restored public access to the SWIFT (Sedro-Woolley Innovation for Tomorrow) Center — one of five community goals identified during the transfer of ownership from State to Port; conducted environmental clean-up projects to deal with legacy contamination issues on the 100+ year old former mental hospital campus; and enacted a 20-year Industrial Development District levy to help support the re-development of the SWIFT Center, county-wide fiber network project, business development in the Bayview Business Park, and valueadded agriculture opportunities.

Another area of progress for the Port is the ongoing work on the Skagit County Community Fiber Optic Network, an 80-mile span of dark fiber infrastructure that will improve access to consistent and affordable high-speed internet in east county communities. As part of an effort to replicate similar broadband efforts in rural areas throughout the state that have little or no internet access, the Port hosted Governor Inslee

and stakeholders. The Port is one of six Washington ports to create Petrichor Broadband, a cooperative LLC that will work on broadband policy issues and funding opportunities statewide.

New initiatives undertaken by Executive Director Patsy Martin and her team included the launch of the educational outreach program, “Exploring Aviation,” utilizing VR technology. They also launched U.S. Customs & Border Protection Services at Skagit Regional Airport through a Reimbursable Services Program as well as the Genuine Skagit Valley certification mark, as a marketing tool for local agricultural producers and growers In addressing the COVID-19 situation, the Port adopted an Emergency Declaration of Closure Policy. While buildings were closed to foot traffic and in-person interaction from March 23— June 1, they have been able to keep all staff working — many remotely with a minimal complement on-site to deal with operations. The Port also adopted a tenant rent relief program to defer rent for tenants whose operations were severely impacted by COVID-19.

On June 1, the Port re-opened offices with staggered/flexible work schedules to limit the number of staff in buildings at any one time. Projects that were underway continue to move forward under staff leadership, albeit some projects have been put on hold due to timing and prioritization of available funding.

As the situation progresses, the Port has continued to apply for grant funding to support ongoing projects and economic development opportunities, including EDA funds and FAA funds.

They have also been active in communicating to Port tenants, including surveys to gauge impacts and needs, and outreach to funnel relevant information about assistance programs, best practices, policies, training and resources available at the local, state and federal levels.

The Port also continues to move forward with significant public works projects, including the development of Lot 72, the Mavrik Marine expansion, Systima Technologies development, Dyberg hangar project, broadband infrastructure and SWIFT Center renovations and infrastructure projects.

ACTIVITY UPDATE Taiwan International Ports Corporation, Ltd.

With four APP Member Ports under its purview — the Ports of Kaohsing, Keelung, Hualien, and Taichung — Taiwan International Ports Corporation (TIPC) has provided a full overview of operations as follows: The global economy continued to grow in 2019 with an economic growth rate of 2.4 per cent while Taiwan’s growth was 3.38 per cent. Factors that affected the global economy in 2019, such as protectionism in the United States that raised trade policy uncertainty, Brexit, and crude oil price fluctuations, also influenced Taiwan’s economy. In the future, TIPC will make efforts to strengthen our competitiveness through the multioperations of our ports as well as business innovations.

Looking at our operating performance in 2019, the number of inbound vessels reached 39,215, container throughput volume reached 15.3 million TEUs, and the number of incoming and outgoing passengers reached 1.5 million.

At the start of 2020, the global economy was hit hard by COVID-19 and the

Taiwan's Port of Kaohsiung

...Taiwan International Ports Corporation has announced major progress on the reshuffle of Kaohsiung Port’s terminals. economic growth rate was revised to be minus 3 per cent while Taiwan was revised to 1.59 per cent. While the pandemic caused a global market shutdown, unemployment, and unknown market recovery schedule, we will continue to assist with maritime market recovery and get through the difficulties together with the industry.

Carriers have set out capacity cuts for this period including blanked sailings due to lower demand caused by the COVID19 pandemic. Ship calls and total freight volume handled by Port of Kaohsiung fell during the first five months of 2020.

Although import and export container volumes still maintained a level, transshipment and empty container volumes declined significantly, having been affected by blanked sailings.

To prevent further infection of COVID-19, the Taiwan government took immediate action to ban all

international cruise ships calling at ports of Taiwan since February 6, 2020.

TIPC has been making every effort to stop new cases of this dangerous virus at the border through vigorous checks of inbound ship passengers and crew.

Furthermore, the emergency response team established by TIPC on January 23 has been tasked with coordinating response measures to any outbreak of serious pneumonia symptoms at one or more of Taiwan ports.

Concerning the health of commercial vessel crews, TIPC’s VTS assistance service transmits hourly information on virus prevention in both Chinese and English to shipboard AIS transceivers, and TIPC asks each ship to radio in any reports of health issues on board.

Moreover, shipping agents are reminded during daily berth assignment briefings to regularly encourage vessel crew to self-report abnormal health symptoms

ACTIVITY UPDATE

Taiwan's Port of Taichung

The Port of Taichung is accredited as the best base for the development of offshore wind power by both the government and industry. and to maintain consistently high levels of health management.

Upon arrival in port, every captain must submit a signed maritime declaration of health to their agent for forwarding to Taiwan Centers for Disease Control (TCDC). All issues of healthrelated discomfort among the crew included in this or other documents are forwarded by shipping agents to TCDC. TIPC has stressed that the danger of this coronavirus outbreak is to be fought as diligently as any preventive war and stands on the front lines to bring the latest and most effective techniques to the fight. In addition to TIPC’s emergency response team keeping close tabs on arriving passengers and crew at all of Taiwan’s international commercial ports, senior officials at each TIPC subsidiary company have stepped up supervision of frontline staff to ensure the highest standards of virus prevention and control and to prevent new cases of this and other viruses from arriving in Taiwan by sea.

44 — PACIFIC PORTS — August 2020

Activity update Container Terminal No. 7 Project — Kaohsiung Port had hit 10 million TEU handling records six years in a row. This is already approaching the total capacity for all of Kaohsiung Port’s container terminals. And we estimate the current capacity will not be enough to accommodate the throughput in the short future. As an operating entity of Taiwan’s international ports, we must always prepare for the coming decades to maintain the competitiveness of the Port. So, several years ago we started the Container Terminal No. 7 Project (CT7).

The CT7 project includes five berths with a total length of 2,415 meters and with a water depth of 18 meters that can accommodate five 23,000-TEU+ vessels. Upon completion, it will be capable of handling five million TEU per year and will be the largest container terminal project ever in Taiwan.

Moreover, TIPC has announced major progress on the reshuffle of Kaohsiung Port’s terminals. In 2018, TIPC first

signed a lease agreement with Evergreen Marine Corp. for wharves S1-S5, which will be the Port of Kaohsiung’s Container Terminal No.7. Upon completion of the Terminal No.7 in 2022 and 2023, EMC will return its current Terminal No.5 (berth No. 79~81) and Terminal No.4 (berth No. 115~117) respectively and shift to the new reclaimed Terminal which will enable them to double in the hinterland. This is defined by TIPC as the first step of Port of Kaohsiung’s container terminals’ relocation.

The second step is now unveiled.

Another Taiwanese national carrier Wanhai will move from its current Terminal No.2 to EMC’s Terminal No.5 in 2022.

Negotiations were finalized with Wanhai regarding terminal re-location in Kaohsiung Port. After Evergreen returns its current terminal No.5 and moves to terminal No.7, Wanhai will take terminal No.5 and return its terminal 2 (Berth No. 63~64). A lease agreement will be signed shortly. TIPC added terminals relocation will continue including negotiating with interested carriers to take over Wanhai’s Terminal No.2 and further consolidating operators in Port of Kaohsiung. TIPC estimates the first and second step together

ACTIVITY UPDATE will add more than 1.5 million TEU of annual throughput to the Port.

Green Energy for Port AreaOffshore Wind Power — the Taiwan government has announced the policy of “non-nuclear homeland” and aims to install 5.5 gigawatts (the allocated capacity has now reached 5.73GW) of offshore wind capacity to replace nuclear power by 2025. Taichung Port is the closest international commercial port to these potential wind farms with complete infrastructure, sufficient channels, and draft and space for back-end operation. All of these not only facilitate the transportation and installation of large components of offshore wind turbines, but also satisfy the operating needs of installation work, installation ships, and transportation maintenance ships. Therefore, the Port of Taichung is accredited as the best base for the development of offshore wind power by both the government and industry.

In support of the national offshore wind-power initiative, TIPC will

Port of Keelung renovate or construct a new wharf and support facilities at Wharf Nos. 2, 5A, 5B, 36, and 106. These wharves and facilities will be available for private firms to use in wind-turbine production, storage, assembly, and transport. A statement by the Port of Taichung notes

that related renovation work on Wharf No. 2 was completed in 2019 and that this wharf was used to support installation of new wind turbines in the Formosa I Offshore Demonstration Wind Farm zone. And this year, Wharf No. 2, #5A and #5B will support Formosa II, TPC

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August 2020 — PACIFIC PORTS — 45

ACTIVITY UPDATE Phase 1 and Yunlin Offshore Wind Farm respectively. Wharf No. 106 was completed in April 2020 and Wharf No. 36 will be finished in 2020. On top of that, TIPC provides an industry zone covering 107.3 hectares of land dedicated to the localization of wind turbine manufacturing. TIPC will construct roads along with other public facilities of the said industry zone. Companies of the related industry like Yeongguan, Tien-Li, Tai-shing, Siemens Gamesa, and Hua-Cheng will invest and build plants in this industry zone for the

production and assembly of wind power parts, driving the localization of wind turbine manufacturing.

TIPC also plans to provide offshore wind power operation and maintenance services with its current personnel, tugboat, crane vessel, shipyards, and warehouses, basins for work ships and light-draft ships, CTV and barge. TIPC aims to make Taichung Port a homeport for offshore wind power operations.

TIPC invited Taiwan Power Company (TPC), CWind Taiwan, China Steel Corporation (CSC), China Ship Building

SHIPPING SOLUTIONS AT TWO DEEP SEA TERMINALS LINKING VANCOUVER ISLAND’S ECONOMY TO THE WORLD. • The Port of Nanaimo ships 18 different Vancouver Island products to 25 ports in 14 countries.

• Short-sea shipping to Vancouver with capacity to handle containers, bulk, break bulk, heavy lift and project cargoes.

• Enhanced infrastructure providing versatility and efficiencies for diverse cargo and vessel solutions and to meet a growing container business both locally and globally.

LOCAL BENEFITS — GLOBAL REACH

For Cargo and Terminal oppportunities, please contact: Jason Michell, VP - B.D. (250) 734-3457 JMichell@npa.ca www.npa.ca

46 — PACIFIC PORTS — August 2020

100 PORT DRIVE, NANAIMO, BC

Corporation (CSBC), and Swancor Renewable Energy Co. (Swancor) to develop a Joint Venture company to set up a GWO training center in Taichung Port. Taiwan International Windpower Training Corporation (TIWTC) was founded in May 2018 with the goal of providing related training. TIWTC has acquired a Training Provider certificate of GWO BTT and GWO BST courses. BTT includes three modules: Mechanical, Electrical, and Hydraulics.

BST includes Working at Heights, Sea Survival, First Aid, Fire Awareness, and Manual Handling. And the construction of the training facility of the new center was completed in September 2019.

More than 300 people have completed the training so far and the courses have received excellent acknowledgment from participants. TIWTC will continue to provide GWO-related courses and at the same time design new, customized courses catering to the needs of the offshore wind industry.

2019 throughput • Port of Keelung — The container throughput of Keelung Port was 1,455,293.0 TEU in 2019, with a YoY drop of 1.13 per cent.

• Port of Taipei — The container throughput of the Taipei Port in 2019 was 1,620,391.75 TEU, a 2.39 per cent decrease compared with 2018.

• Port of Taichung — Taichung’s throughput in 2019 was 1,793,965.5 TEU, a 2.86 per cent increase compared with 2018.

• Port of Kaohsiung — The container throughput of the Port of Kaohsiung in 2019 was 10,428,634.25 TEU, a 0.2 per cent decrease compared with 2018.

Additional areas of focus Environmental sustainability — TIPC has been promoting green port activities through a series of actions.

All seven of our international ports have been Eco-Port certified and we also work on sustainability projects. For example, TIPC set up solar photovoltaic equipment in idle space on the roof of the port office and warehouse. As of 2019, a total of 66,191 square meters of solar photovoltaic equipment have been installed, generating about 11,000,975 (kwp) annual power and reducing carbon emissions by 5,819

ACTIVITY UPDATE metric tons (equivalent to 390.4 hectares of forest area.)

In addition to solar photovoltaic equipment, each port builds various water resource recovery facilities according to the characteristics of different ports. The annual amount of water recovered is about 16,000-17,000 degrees, and the carbon reduction is about 2.6 metric tons. Recycled water is used in car washing facilities, dust suppression during loading and unloading operations, ground, and toilet sanitation cleaning, etc., effectively reducing water consumption and carbon emissions.

In cooperation with the government to promote the use of green energy, TIPC is gradually changing the lighting to energy-saving lamps in the port area and installing solar and wind power circuit lights in parts of Kaohsiung Port.

In addition, TIPC continues to advocate the replacement of obsolete equipment with high-efficiency green energy-saving equipment.

Currently, TIPC is working with the Environmental Protection Administration (EPA) to tackle air quality issues, which is one of the most concerning environmental problems in Taiwan these days. Knowing that ocean-going vessels (OGVs) emit more than 90 per cent of the ports’ air pollution, TIPC proposed three emission reduction strategies: vessel speed reduction (VSR), shore power, and low sulfur diesel. TIPC has been pushing for VSR in Taiwan since 2013. In 2019, the national VSR achievement rate reached an average of 49.6 per cent, an increase of 2.7 per cent compared to 2018.

Priorities for the coming year(s) Safety, efficiency, and sustainable development are three fundamentals for port operations yet, while facing the challenges and severe competitiveness in today’s maritime market, finding diversified business opportunities and new value to our services via new technology trends are certainly two important tasks we need to focus on.

TIPC is devoted to promoting the diversified development of port business. In terms of the travel business, TIPC cooperates with the cruise industry and local government to optimize port and travel facilities to provide a

Port of Umatilla convenient customs clearance environment, and also to endeavor to develop cruise tourism and waterfront space.

TIPC will be continuously expanding its scope of business and creating new values for ports by developing diversified businesses such as establishing a wind-power training center to cultivate local wind-power talents, and investing in the Southeast Asia market in response to the New Southbound Policy.

Therefore, besides the scheduled infrastructure upgrading and green port policy, TIPC also initiated the TransSMART Plan (Transform Sustainable, Modern and Advanced ports with Revolutionary Technology), through which we invest in port and terminal operations to develop innovative technology that will optimize transportation safety and efficiency, and enhance the competitiveness of Taiwan’s port group.

Port of Umatilla

Looking at the three main sectors of activity — the grain, fuel, and container-on-barge terminals — Kim B. Puzey, General Manager for the Port of Umatilla, reported that both the grain and fuel terminals were operating normally. There has also been no change for the container-on-barge terminal, however Puzey noted that, since the loss of container ships calling on Portland, the yard has been serving as a container yard for the overflow of containers from local food processors since 2016.

Photo courtesy Tidewater Transportation and Terminals

Looking at other areas of the Port, Puzey is expecting to receive final approval soon to incorporate an additional 1,000 acres into inventory following the decommissioning of the old Umatilla Chemical Depot, once the repository for 11 per cent of the chemical and biological agents the U.S. had in reserve during the Cold War. The process has taken 26 years and Puzey is looking forward to developing infrastructure for industrial use in the future.

Despite COVID-19 having a “brutal” impact on small, commercial businesses in and around the Umatilla area, Puzey said that most of the Port’s industrial clients have not been as affected.

“As for port operations,” he noted, “while the office is closed to walk-in traffic, staff have been able to maintain productivity by working remotely and/ or scheduling office hours that avoid more than two people in the office at once.”

The Port of Umatilla is in the fortunate position of having solid financial reserves, a tax base that has been increasing, and some property sales — allowing Puzey to continue implementing the Port’s mandate of increasing trade and diversifying the economy.

“While it’s too difficult to forecast the future, we are in a very good place,” he said, adding that he was doubtful there would be any appropriations for infrastructure in the next legislative session or even the next several.

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BEST PRACTICES

Port Authority of New South Wales shares insights into vessel arrival systems

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he concept of just-in-time vessel arrival systems has been gaining traction throughout the international maritime community of late. In January this year, at the 75th Session of the IMO’s Marine Environment Protection Committee, the Global Industry Alliance to Support Low Carbon Shipping (GIA) released “Just In Time Arrival Guide — Barriers and Potential Solutions.” In February, Wärtsilä, Carnival Maritime, and Hamburg Vessel Coordination Center announced the successful implementation and testing of a new just-in-time sailing system — the Wärtsilä NaviPort — based on real-time ship-shore data exchange.

While the rest of the world catches up, the Port Authority of New South Wales, Australia, developed their Vessel Arrival System (VAS) over 10 years ago. Providing valuable insights, Bruce Cooper, Senior Manager Port Services, Port Authority of New South Wales,

While the rest of the world catches up, the Port Authority of New South Wales, Australia, developed their Vessel Arrival System (VAS) over 10 years ago. spoke to APP’s Jane McIvor about the process that started with the grounding of the Pasha Bulker in 2007 and ended up with the world’s first just-in-time vessel arrival system.

Background

The Port of New South Wales is located on the east coast of Australia and manages the navigation, security and operational safety needs of commercial shipping in Sydney Harbour, Port Botany, Newcastle Harbour, Port Kembla, Eden and Yamba.

Newcastle Harbour is one of the largest coal export ports in the world with a record 164.9 million tonnes of throughput recorded in 2019.

In May 2007, the Panamanianregistered bulk carrier Pasha Bulker

was anchored about 2.5 miles off the coast of Newcastle along with 57 other vessels. Her estimated wait time before loading coal was three weeks. Long story short, an unpredicted, severe storm settled in “the worst possible spot,” according to Cooper. While many of the ships put out to sea, the Pasha Bulker got caught in wind and heavy seas and grounded on Nobbys Beach. The hull was breached but, luckily, there was no pollution.

In its subsequent report, the Australian Transportation Safety Board noted, among other factors, that the queue of 57 ships off Newcastle at the time of the incident increased the risks of collision and grounding. In total, the ATSB offered 11 recommendations.

A large coal transport ship entering Newcastle Harbour - Newcastle is one of the largest coal export ports in the world providing thermal and coking coal to Asia and beyond.

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BEST PRACTICES Of note for this article was the recommendation that Newcastle Port, individually and as a member of the Hunter Valley Coal Chain Logistics Team, take action to address the issue of vessel wait times.

From concept to reality

“We worked with the coal industry to investigate a number of approaches and came up with the solution of a vessel arrival system,” said Cooper, noting that the industry, as the largest user of the Port, was in control of ordering ships through third parties and, while the Port was the regulating body, industry buy-in was important.

Once local terminals and the Hunter Valley Coal Chain Coordinator (the company tasked with controlling the logistics chain for the coal industry) were on board, a working group was established that included representatives from Australian coal shippers, local coal terminals, Japan power utilities and steel mills (the largest customer for Australia’s coal) and Japanese shipping companies, and South Korean and Taiwanese shipping industries.

“The whole process took about 18 months to reach an agreement on basic rules and operating parameters, transit plans, and methods of tracking,” Cooper said. “In early 2010, we did a trial which ran in conjunction with the normal system for a few months before we were comfortable that the parameters were working well. We officially implemented the system on June 1, 2010.”

When asked about lessons learned through the process, Cooper noted that key to the consultations was ensuring the right people were at the table. “It’s a matter of balancing between the right number of people and ensuring the right people are consulted. You don’t want the process overwhelmed with self interests.”

Cooper also noted that they wanted to make it as simple as possible for ship operators, so reporting wasn’t an over-burdensome task. “We ask the ships to send us a daily ETAs as well as their average speed and engine revolutions over the last 24 hours. Then we track by satellite, which automatically

Where there once would have been upwards of 60 vessels waiting in the queue for as long as three weeks, there are now usually less than 20 with a maximum timeframe of 48 hours from arrival to loading. interrogates their system and provides the data back. And we have the benefit of all the other participants in the system, allowing us to do all the number crunching.”

While the original system was done with an Excel spreadsheet, Newcastle has since built a proprietary program which uses satellite tracking from a Western Australia company. “Our system puts out a request to them and the response gets transferred back to our system which does all the calculations based on where the vessel is currently situated and the estimated time it will take to get here. Of course, we still have the human eye to ensure the calculations seem reasonable.”

Even though there are still some factors beyond the Port’s control — for example, weather, or an unforeseen delay at the terminal — Cooper noted that the system works very well. “Even with a bad forecast, though, we’ll know about it and when the vessel provides their daily report that includes average speed and engine revolutions, we’ll be able to recalculate to make allowances.”

Results

Newcastle’s Vessel Arrival System has had a significant impact on mitigating safety risks and reducing greenhouse gases for Australia’s east coast.

Prior to the VAS being implemented, Cooper noted that, while there hadn’t been an incident as threatening as the Pasha Bulker, there were always little issues — near misses — with so many ships anchored just beyond the Port’s jurisdiction. “The ATSB report on the Pasha Bulker had highlighted a lack of understanding of the Newcastle Vessel Traffic Information Centre’s advisory role versus the issuance of mandatory instructions. Now, we have a provision that allows us to penalize any vessel not following our guidance,” Cooper said, adding that while they haven’t penalized

anyone yet, they have issued about a half-dozen warning letters.

Where there once would have been upwards of 60 vessels waiting in the queue for as long as three weeks, there are now usually less than 20 with a maximum timeframe of 48 hours from arrival to loading.

From a shipowner’s perspective, a just-in-time arrival system allows for slow steaming (or speed optimization profiles) and is resulting in reduced fuel costs and carbon emissions, key goals of the Global Industry Alliance to Support Low Carbon Shipping (GIA) which published the previously mentioned “Just In Time Arrival Guide — Barriers and Potential Solutions.”

Given the success of Newcastle’s VAS, it’s not surprising that, in July 2019, IMO Secretary General Kitack Lim visited the port for a first-hand look at the system. Recognizing the growing interest in just-in-time arrival systems, the IMO’s visit provided useful insights which were incorporated into the Guide.

Ports considering their own VAS would be wise to look to Newcastle as an example of how to do it right.

More information can be found at: Port Authority of New South Wales Vessel Arrival System Rules — Port of Newcastle: https://www.portauthoritynsw.com.au/ media/3723/vessel-arrival-system-rules. pdf IMO Marine Environment Protection Committee release of the Just In Time Arrival Guide – Barriers and Solutions: ht t ps://sust ai nableworldpor ts.org / w p - c o n t e n t / u p l o a d s / M E P C -75 INF.22-Just-In-Time-Arrival-GuideBarriers-and-Solutions-Secretariat.pdf The Association of Pacific Ports would like to thank Cooper and the Port Authority of New South Wales for the opportunity to learn about the best practices and benefits of just-in-time arrival systems.

August 2020 — PACIFIC PORTS — 49

PARTNERSHIPS

A partnership to keep up with demand

By Linda Tyler Port of Skagit

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boat builder with a vision. A Port district with a mission. A public-private partnership that supports a thriving business and continues to fulfill a promise of bringing good jobs to a community.

The Port of Skagit in northwest Washington State is centrally located between the metropolitan centers of Vancouver, B.C. and Seattle, a geographical span with a population of more than six-million people. The Port of Skagit is home to almost 100 different businesses that support more than 1,700 jobs throughout its four enterprises: Skagit Regional Airport, Bayview Business Park, the SWIFT Center and the La Conner Marina.

The La Conner Marina was first built in 1970 to be a jobs producer, in alignment with the Port’s mission of “Good Jobs for our Community.” It is still the same focus today, with an additional emphasis on recreational boating that supports the local economy through tourism and the marine services

In a relatively short amount of time Mavrik Marine has built a name and reputation for itself as a premier boat builder, with orders ranging from fishing boats for private individuals to 300+ passenger commuter-class ferry boats... industry. Seeing the commercial maritime industry and recreational boating coexist and support one another represents the fruition of the Port of Skagit Commission’s vision from decades earlier.

Today, the La Conner Marina is part of a thriving maritime community that supports marine manufacturing, small businesses, commercial fishing, and recreational boating that contributes positively to the overall economy of Skagit County. It is home to 17 businesses, supporting more than 300 jobs in the area.

One of the “anchor” tenants at the marina is Mavrik Marine, a company that specializes in the construction of

The Kenai Fjords 360, one of Mavrik Marine's signature catamaran designs.

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top-quality, aluminum commercial boats. In a relatively short amount of time Mavrik Marine has built a name and reputation for itself as a premier boat builder, with orders ranging from fishing boats for private individuals to 300+ passenger commuter-class ferry boats for the San Francisco Bay Ferry System. From humble beginnings with three employees, Mavrik Marine has grown and developed in its nine years, now supporting nearly 100 skilled wage jobs, with more on the way.

An instrumental component of that success and growth according to owner Zach Battle, stems from the early and ongoing support he and his company received from the Port. “The Port of

PARTNERSHIPS Skagit was very responsive and quick to show what they could and couldn’t do. I signed a lease with them within two weeks.” After just a few initial meetings, the Port of Skagit was quick to realize the impact that a business like Mavrik Marine could make on the long-term success and growth of the La Conner Marina and surrounding community — like a puzzle piece that could help bring the overall picture and mission into sharper focus.

Part of the Port’s responsiveness was knowing about programs like the Community Economic Revitalization Board, or CERB, and its funding opportunities to invest in infrastructure that can bring more family-wage jobs to a community. As part of the Washington State Department of Commerce, CERB’s mission is to respond to local economic development opportunities throughout the state by providing funds to local governments and tribes for public infrastructure. This infrastructure then supports private business growth and expansion, and can include projects for domestic and industrial water, storm water, wastewater, public buildings, telecommunications, and port facilities.

After rapidly outgrowing the first building they occupied at the La Conner Marina, Mavrik Marine moved into their current manufacturing facility in 2012 — poignantly, a building that was purchased by the Port of Skagit with the assistance of CERB funding. Now, with contracts in place for larger boats, Mavrik has once again outgrown its current facility and is in desperate need of more space to fulfill existing contract obligations for boats that are simply too large to build within their four walls.

“Infrastructure is the constraint — it’s capacity,” Battle explained. “We are turning work away because we don’t have the space to build the boats.”

The Port knew a solution had to be found to avoid the risk of Mavrik Marine relocating, a disruption that would have a resounding ripple effect on Mavrik’s operations, not to mention the upheaval to their workers and their families, who support local commerce, schools, housing and more. In a poetic “full circle” kind of opportunity, a new

round of CERB funding was successfully applied for and awarded to the Port of Skagit in early 2020. This round of funding, a combination of grant money and low-interest loan, will be used by the Port to construct another 17,000 sq. ft. building that it will lease to Mavrik Marine, meeting their growing need for more manufacturing space.

For Mavrik’s part, they are committed to supplying the necessary equipment within the building, including lifts, hoists, and cranes to accommodate the larger vessels — a private investment of more than $1 million.

Finding opportunities to partner on a mutually beneficial goal is something the Port of Skagit does often and well. With a strong focus on aerospace and maritime manufacturing — two industries that are well-suited for their NW corner of the world — the Port is strategic in finding committed partners with quality products that can bring jobs and commerce to its community.

“Ports have an obligation to seek out creative funding sources that can support the changing business markets our tenants face,” stated Port Commissioner Steve Omdal. “Mavrik Marine is a good example of a company that has adapted and evolved to meet new and emerging business opportunities.”

In 2012, the Port of Skagit recognized and understood the vision of Mavrik Marine and worked hard in

partnership with them to support their business growth. In turn, the impact that Mavrik Marine has made, and continues to make, within this charming little town on the Swinomish Channel is significant. The vision of the Port of Skagit Commission some 50 years ago was about building opportunities for the maritime industry to thrive and flourish for the benefit of the greater community. Those ideals remain steadfast today, moored by creative solutions, collaborative partnerships, and a shared understanding that a rising tide lifts all boats.

Mavrik Marine has outgrown its current facility and is ready for a bigger space.

August 2020 — PACIFIC PORTS — 51

APP MEMBER PROFILE

Lynker: Your full-service marine regulatory and science partner!

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ynker is a mature, full-service marine science and technology firm with an expansive West Coast, Alaska, and Pacific Islands presence. We deliver innovative services and products needed by ports, including tide and current monitoring, climate impact studies, ship strike avoidance, restoration, dredging, logistics, federal and state permitting and regulatory compliance, grant writing, and more.

We offer our fellow APP members and their partners unique breadth and depth in scientific research, advanced technologies, environmental assessments, and practical know-how to implement intelligent solutions that balance

multiple priorities, maximize return on investment, and actively address emerging needs. This includes assisting ports with required environmental analyses required for building new or repairing existing infrastructure, dredging, and other activities.

Our relevant performance includes vessel maintenance program development, Deepwater Horizon Injury Assessment, program facilitation, and physical monitoring. Lynker facilitated program management between NOAA’s Office of Coast Survey, Integrated Ocean Observing System program, universities, and Long Beach oil refineries. This included a high-resolution

Lynker staff tending a CO-OPS buoy in Florida.

RADM Sam De Bow, Lynker’s Vice President, took a ride on the MV Ocean Wind on the Mississippi River to assess how professional mariners and marine pilots use the Office of Coast Survey nautical products.

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seafloor survey, new buoy installation, and creation of a wave model that feeds a real-time ship motion model. Our efforts helped increase allowable draft, allowing millions of dollars of additional material to be brought in per trip.

A fully laden, ultra large crude carrier with a draft of 67 feet in a channel of 76 feet successfully transited to the Tesoro Pier in Long Beach, CA. Lynker personnel contribute to NOAA National Ocean Service (NOS) efforts to assist commercial vessels navigating port waters. NOS’ Center for Operational Oceanographic Products and Services (CO-OPS) has three program areas: Physical Oceanographic Real Time System (PORTS), Operational Forecast Systems (OFS), and tide/current observations and predictions. A PORTS consists of combinations of various sensors (water level, air gap, meteorological, visibility, current meters) that provide commercial vessels with real-time information about conditions within the port.

CO-OPS personnel help design sensor systems, platforms, and other products, and monitor real-time data. OFS provide water levels, currents, wind, salinity, and water temperature predictions.

There are currently 14 OFS, all of which provide critical data for commercial vessel trip planning.

Lynker also assists CO-OPS with tide and current observations and predictions. CO-OPS provide historic, realtime, and predicted data regarding water levels and currents through the National Water Level Observation Network and National Current Observation Program.

This data is a chief source for official tidal predictions that allow marine vessels to safely transit ports. Lynker personnel contribute to everything from designing and installing systems, monitoring data, creating predictive models, and displaying past, present, and future data for public use.

We look forward to working with you!

To learn more about Lynker Technologies, visit: www.lynker.com

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PACIFIC PORTS

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