Pacific Ports - Volume 3, Issue 1, February 2022 by McIvor Communications

PACIFIC P RTS Volume 3 Issue 1

www.pacificports.org

ASSOCIATION OF

PACIFIC PORTS

February 2022

Industry Insight

DeJesus leads Port of Stockton to new heights

Salvage Operations

Port of Nanaimo and partners live up to reputation as “Solutions Port”

Marine Highways

Bright future for U.S. Marine Highway System

Westridge Marine Terminal expansion is well underway

TransMountain.com

Construction of the modern, three-berth Westridge Marine Terminal located in the Port of Vancouver on the West Coast of Canada is now more than 60 per cent complete. Throughout the expansion, our existing terminal remains in operation, servicing crude oil exports to global destinations. Significantly increasing export capacity for Canadian crude oil, the new Aframax-tanker dock system will be equipped with leading-edge technologies to minimize emissions from loading. Our enhanced communications and IT systems will ensure continued safety and efficiency, while creating a positive experience for ships calling at the terminal. For more information, visit transmountain.com.

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PACIFIC P RTS

February 2022

APP EXECUTIVE COMMITTEE

EXECUTIVE DIRECTOR’S NOTE By Jane McIvor

PORT NEWS News briefs from APP Members

INDUSTRY INSIGHT

PORT INFRASTRUCTURE

Volume 3 Issue 1

BEST PRACTICES

COLLABORATION

NEW MEMBER PROFILE

CYBERSECURITY

PORT MODERNIZATION

SALVAGE OPERATIONS

VESSEL ARRIVAL SYSTEM

APP CONFERENCE RECAP

APP MEMBERS

DeJesus leads Port of Stockton to new heights

Canadian and U.S. port infrastructure funding and policy By Darryl Anderson, Hanh Le-Griffin, and Phil Davies

CONTENTS

Kongsberg launches into coasts, ports, and inland waterways for 2022

Port of Alaska receives favorable ruling on MARAD lawsuit Avoiding the race to wait When will dry bulk shipping adopt virtual arrival? By Trevor Heaver

MARINE HIGHWAYS

CyberForza Cyber Defense Platform provides a robust solutin for port and ship cybersecurity

Port of Nanaimo and partners live up to reputation as “Solutions Port”

Successful APP conference provides strong agenda, great networking

Bright future for U.S. Marine Highway System By Gordon Feller

Partnership strengthens tanker escort and marine response for Trans Mountain Expansion Project

MARAD Town Hall highlights port collaboration for strength

On the cover and above: The Zim Kingston at Duke Point Terminal, Port of Nanaimo (credit: Nik West); Bottom right: Attendees at the APP Conference in San Diego. February 2022 — PACIFIC PORTS — 5

Association of Pacific Ports 2021/22 Executive Committee

PACIFIC P RTS February 2022 Volume 3/Issue 1

Kimberlyn King-Hinds, President Commonwealth Ports Authority, Commonwealth of Northern Mariana Islands

OFFICERS Bobby Olvera, First Vice President/Treasurer, Port of Long Beach, California USA Shao-Liang Chen, Second Vice President, Taiwan International Ports Corporation, Ltd., Taiwan Kim B. Puzey, Third Vice President, Port of Umatilla, OR USA Ian Marr, Past President, Port of Nanaimo, British Columbia Canada

Publisher Association of Pacific Ports Executive Director & Editor Jane McIvor Contributors Darryl Anderson Phil Davies Kirk DeJesus Gordon Feller Trevor Heaver Hanh Le-Griffin Jane McIvor Konrad Mech Dr. Venkat Rayapati Steve Ribuffo Advertising Phone: 323-578-2452 Philippe Critot (philippe@pacificports.org) Editorial & Association business Phone: 604-893-8800 Jane McIvor (jane@pacificports.org)

REGIONAL REPRESENTATIVES Ying-Feng Chung, Taiwan International Ports Corporation, Ltd., Taiwan Sean Clark, Port of Columbia County, OR USA Dick Dodge, Port of Redwood City, California USA Dorothy Harris, Port Authority of Guam USA Steve Ribuffo, Port of Alaska, AK USA

AT-LARGE REPRESENTATIVE Larry Hernandez, Republic of Marshall Islands Ports Authority Chris King, American Samoa Department of Port Administration Zoran Knezevic, Port Alberni Port Authority, British Columbia Canada

STAFF

ASSOCIATION OF

PACIFIC PORTS Contents copyrighted 2021 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.

Jane McIvor (jane@pacificports.org) Philippe Critot (philippe@pacificports.org)

EDITOR’S NOTE: Due to the international nature of our membership, spelling within each article remains consistent to the country of origin.

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.

ADVERTISERS

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. 6 — PACIFIC PORTS — February 2022

Innovative Manufacturing.............................................................. 11 Liebherr..................................................................................................BC NEC Corporation of America.............................................................8 PortLink.....................................................................................................4 Rozario Marine.......................................................................................9 Shey Harding Executive Search..................................................... 13 Trans Mountain / Westridge Marine Terminal.............................3 Wiggins Lift Co. Inc........................................................................... IFC

EXECUTIVE DIRECTOR’S NOTE

Hope on the horizon

lmost like watching for the first signs of spring, people around the world are starting to see the first hints of life beyond the pandemic. While it won’t go away completely, public health officials are starting to talk about “living” with COVID-19. Let’s hope this is indeed a path forward. We were lucky to have held our APP Conference in San Diego before the Omicron variant. It was a welcome break from the isolation we’ve all experienced over the last two years — seeing friends and colleagues again in person and building new relationships was a real treat. Equally important, the presentations were engaging,

entertaining and relevant, and provided an opportunity for meaningful discussion. While webinars have been a useful tool for keeping up to date on industry activities, nothing can replace the value of gathering in person. Our recap of the Conference — starting on page 41 — proves this. Our many thanks to the sponsors, speakers, and attendees who contributed to the success of the APP’s 107th Annual Conference — especially to our host, the Port of San Diego, who provided great support. Their hospitality will be a challenge for future hosts to meet and surpass. This newfound hope for a return to in-person gatherings is quickly turning

into excitement for our next event — Saipan, Commonwealth of Northern Mariana Islands. At the APP General Meeting in January, it was apparent that Members are eager to meet again amd it was agreed that we should look to hold the conference in September 2022 with final confirmation and dates to be provided by the end of February. We look forward to this opportunity to visit the Island of Saipan, with its breathtaking beaches, historic sites and, of course, the opportunity to further build relationships and learn from our peers. Stay tuned for our upcoming announcement. — Jane McIvor

APP PORT MEMBERS

February 2022 — PACIFIC PORTS — 7

PORT NEWS Around the world with 80 cranes

iebherr has had a record year with its maritime mobile harbour cranes. The order intake volume in 2021 was higher than ever before. In total, more than 80 new units and also various used units were sold to customers worldwide. Liebherr mobile harbour cranes were ordered from 31 different countries with all continents being represented. There was strong growth in the Middle East and West Africa regions and stable core markets in Europe as well as North and South America. As in previous years, the LHM 550 is the most popular crane, closely followed by the LHM 420. A strong increase in sales of the LHM 800 was recorded, which more than tripled compared to the previous year. The strong sales in 2021 has helped build up a very promising order book in the mobile harbour crane sector and look forward to 2022 with confidence.

The year of the portal crane

Another record was set in the area of portal cranes. Liebherr has never before sold so many harbour cranes with a portal substructure. More than 20 new units were Liebherr Portal Slewing Cranes (LPS). Liebherr was able to close the year with a major portal crane project at the end of 2021. The leading steel manufacturer in Italy, Acciaierie d’Italia, ordered four new LPS 800 portal cranes. The four machines are 100 percent electrically powered and

allow for emission-free bulk handling. They are also equipped with Liebherr’s Pactronic hybrid system, which supplies the crane with additional power when required.

Emission-free terminals

Almost half of all mobile harbour cranes sold in 2021 were equipped with an electric main drive and thus equipped for emission-free cargo handling. The demand for various electric drive solutions has doubled when compared to the sales year 2019. “The Liebherr MCC-tec GmbH has stood for sustainability in drives for decades. We see that our sophisticated electric motors are revolutionising port handling. Together with our customers, we will continue on the path to sustainable ports. Our innovative cranes and the development of CO2-neutral drive technology is inspiring the industry. Competition is trying to catch up, but Liebherr-MCC-tec have been leading the field in terms of development and innovation for many years,” comments Andreas Ritschel, Deputy Sales Manager for Liebherr Mobile Harbour Cranes.

All-electric LPS 420 E

2021 was also the year of the allelectric LPS 420 E portal crane. There is a clear trend within the maritime crane industry towards more electric main drives visible. In addition, the

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advanced LPS 420 E, which is powered exclusively by electric motors, also had a record year. Although sales have been consistently stable since its launch, a total of six portal cranes were sold in 2021 — one of them to Germany. Euroports Germany, based in Rostock, will commission the first all-electric LPS 420 E in the European market next year.

Growing responsibility

A strengthened market position also results in growing responsibility towards customers and partners worldwide. Liebherr MCC-tec is aware of the trust placed in it with regard to quality, reliability, and availability. “We can only live up to this responsibility through joint efforts. We achieve this by continuously optimising our service network, our technologies, and our standards,” says Martin Mathis, General Manager Customer Service Liebherr maritime cranes.

Sustainability in action

In addition to the various electric solutions, Liebherr also offers the possibility of operating diesel-powered equipment in a more environmentally friendly way. In the first half of the year, the first LHM 420 powered by HVO diesel was delivered to the Swedish port city of Södertälje. HVO Renewable Diesel is a fossil-free premium diesel product made from 100 percent renewable raw materials that emits no additional carbon dioxide into the atmosphere. A further step towards sustainability was achieved in September of 2021 when Liebherr-MCCtec was awarded the EcoVadis Gold Medal. EcoVadis is the world’s most renowned provider of sustainability ratings with over 85,000 companies assessed. The gold medal places Liebherr-MCCtec among the top five percent of all rated companies and the top three percent of manufacturing companies.

INDUSTRY BRIEFS GCT Global Container Terminals announces leadership change

CT Global Container Terminals Inc. (GCT) has announced that Doron Grosman, President and Chief Executive Officer, has tendered his resignation. The Board of Directors has accepted his resignation effective February 25, 2022. Since joining GCT in 2017, Mr. Grosman has consistently distinguished himself throughout his time at the company. Together with the GCT management team, he has significantly enhanced shareholder value since assuming his role as CEO. During his tenure, Mr. Grosman led the strategy and growth of the company’s

topline by extending all customer contracts and winning new business. Mr. Grosman also brought a strong focus to operational efficiencies and ESG across GCT, while increasing the effectiveness of GCT’s capital investment strategy and deployment. Further, Mr. Grosman worked collaboratively and built a highly effective and aligned organization, which benefited the shareholders, the company and the employees. The Board sincerely thanks Mr. Grosman for his many contributions to the company and wishes him continued success as he undertakes the next chapter in his career.

GCT business operations will not be affected by this change. To ensure a smooth transition, effective February 3, Eric Waltz and John Atkins assumed joint leadership of GCT, reporting directly to the GCT Board of Directors. GCT USA will continue to be led by John Atkins, and GCT Canada will continue to be led by Eric Waltz.

Port Alberni Port Authority promotes Mike Carter to Vice President, Operations

he Port Alberni Port Authority is pleased to announce that Mike Carter has been promoted to Vice President of Operations effective January 1, 2022. Mike has been with the port since 2009 and has advanced progressively through positions of increased responsibility at the marinas, marine facilities and currently in terminal operations where he has been the Director of Operations since 2017. Mike brings a wealth of experience to all the operations of the port and we are excited about his new role. As a result of this promotion, Mike will continue to oversee and direct all port operations inclusive of the terminals, marinas, campground, piers and capital projects. He is also accountable for the management of port communications, marketing, and public relations. Mike will continue to focus on growth and new development at the terminal, as well as with all of the port’s operations.

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INDUSTRY BRIEFS Oxnard Harbor Commissioners vote on 2022 leadership

he Oxnard Harbor District/ Port of Hueneme Board of Harbor Commissioners named its officers for 2022. Commissioner Mary Anne Rooney was unanimously voted to serve as President. “It is truly an honor to serve as Harbor Commissioner President for a third time,” said Commissioner Rooney. “Along with my fellow Commissioners, we will keep our Mary Anne Rooney resolve and steadfast commitment to environmental progress, innovation, and our community. We will continue to support our customers and serve as an economic force in the county by creating thousands of jobs and providing over $100 million dollars in tax revenues for our local communities.” Port of Hueneme continues to implement its award-winning sustainability programs, including its seventh year of Green Marine certification along with expansion of climate action and air quality programs. In 2022, the Port will expand its community air quality monitoring network which will include the launch of a website to provide the community with current data about air quality in the south Oxnard region. This website will include information about local air quality in both English and Spanish. Additionally, the Port is undertaking an infrastructure construction project this year that will install high-voltage vaults on the south wharf to allow the large Port mobile harbor cranes to run off of clean electrical grid power while moving cargo. A recent Freight Study produced by the Ventura County Transportation Commission shows that Port truck trips make up less than 1 percent of daily truck trips in Ventura County. The Port will work with this contingency and collaborate with local private trucking companies to increase their awareness about upcoming state regulations that set deadlines and requirements for zero emission trucks. This work includes outreach on incentive programs as well as providing information on how to access much needed infrastructure for future battery electric trucks. Building off of the Board of Harbor Commissioner’s recent resolution committing the Port to a zero-emission future and transitioning short haul truck to zero emission by 2035 or sooner, the Port is continuing to work on a state-funded blueprint grant which will help conduct the technical analyses needed to understand the kinds and amounts of carbon-free clean energy fuels of the future that the Port will need to make 10 — PACIFIC PORTS — February 2022

Port of Bellingham Commission selects 2022 officers

ort Commissioner Bobby Briscoe has been selected by the Commission to serve as President of the Board of Commissioners for 2022. Commissioner Ken Bell was chosen to be Vice President and Michael Shepard was selected for Secretary. Commissioners also determined who would serve on local boards for 2022: • Whatcom Council of Governments: Bobby Briscoe • Washington Public Ports Association: Ken Bell • Whatcom County Economic Development Investment Program Committee: Ken Bell • Western Crossing (Shared Port and Western Washington University Development Entity): Michael Shepard

Ken Bell, Bobby Briscoe, and Michael Shepard.

cargo move in the future and continue to be the lifeblood of Ventura County‘s economy. Commissioner Rooney was the first woman elected to the Board of Harbor Commissioners in November 2010 and served her first term as President of the Board in 2014. She is an active member of the community serving on the Boards of Nyeland Promise and the Local Agency Formation Commission; past President of the Association of Pacific Ports; Economic Development Committee Member for the American Association of Port Authorities; and a Delegate on a Leadership Mission to Taiwan in 2013, past Vice President of the Ventura County Special District Association. President Rooney is joined by Jess J. Herrera, who will serve as Vice President; and Celina L. Zacarias who will serve as Secretary for the next year. Herrera is a retired longshoremen from the Port of Hueneme and has served on the Board of Harbor Commissioners for 28 years. Zacarias is the Senior Director of Community and Government Relations for California State University Channel Islands and has served on the Board since February 2020. Jess Ramirez and Jason Hodge will continue to serve as Commissioners this year.

INDUSTRY BRIEFS Port of Redwood City’s Kristine Zortman receives Woman of the Year award

he APP is pleased to congratulate Kristine Zortman, Executive Director of the Port of Redwood City, for being awarded the Chamber San Mateo County’s Woman of the Year award. The award recognizes women who provide invaluable intellect to the local community via their business/profession, thus enhancing the quality of life for women from all backgrounds to attain their own professional potential, said the Chamber. The organization added that honorees are “active and supportive participants of the Chamber.” Zortman was spotlighted by the Chamber as having provided leadership for the port “through extremely

challenging times for the maritime industry, the city and the community.” She was also credited as being an “innovative leader and thinker who has identified creative avenues for improving the value and accessibility of the port” as a community and city asset. During her tenure at the port, which started in 2018, Zortman has introduced public art, advocated for ferry service to Redwood City, suggested improvement to the public marina and fishing pier and worked to get federal funding for emergency preparedness and infrastructure. She was also recently elected to the board of the California Association of Port Authorities.

Kristine Zortman

Port of Grays Harbor Commission appoints 2022 officers

Secretary Stan Pinnick, President Tom Quigg and Vice President Phil Papac

t their first meeting of the New Year, the Port of Grays Harbor Commissioners appointed District 2 Commissioner Tom Quigg to serve as Commission President in 2022. Commissioner Phil Papac was named Vice President and Commissioner Stan Pinnick was selected as Secretary. Port of Grays Harbor District 3 Commissioner Stan Pinnick was also sworn in for his fourth term after running unopposed in November. Both Commissioner Quigg and Papac are currently serving their first 6-year terms. “Our Commissioners provide valuable leadership and direction for both the Port and our community,” shared Port Executive Director Gary Nelson. “We are fortunate to have such great leadership in our elected officials and are confident they will guide us through another year of growth and prosperity.” February 2022 — PACIFIC PORTS — 11

INDUSTRY BRIEFS Matson delivers $375,000 in relief goods and services to Tonga

atson has announced that it will contribute NZD $375,000 in goods and services toward Tonga disaster relief and scheduled a special voyage departing Auckland, New Zealand at the end of January with relief goods donated by the company and destined for Tonga. Two additional extra-schedule relief voyages were being planned for departure from Auckland during February. On Friday, January 21, Matson delivered the first ocean shipment of

goods to Tonga since the eruption of the Hunga-Tonga-Hunga-Ha’apai underwater volcano and resulting tidal wave that struck the island nation on Saturday, January 15. “Our hearts are with the people of Tonga as they work to recover from the devastation caused by the eruption and tidal wave,” said Matt Cox, Chairman and CEO of Matson. “We are committed to helping with recovery efforts in the way we know best — by getting much needed supplies, equipment and

Matson’s delivery of humanitarian aid and relief goods to Pacific Islands following natural disasters can mean the difference between life and death for Islanders. Above, when the Super Typhoon Yutu hit the Commonwealth of Northern Mariana Islands in 2018, Matson was there to help. 12 — PACIFIC PORTS — February 2022

donations to Nuku’alofa as quickly and efficiently as possible.” Matson operates a fortnightly service to Nuku’alofa from its South Pacific hub at Auckland. Its vessel Liloa II made its regularly scheduled port call at Nuku’alofa on Thursday, five days after the disaster struck. Thanks to efforts of the Tonga government, ministries, and Ports Authority Tonga, the port was operational and the vessel was able to discharge its full load of containerized general cargo, a combination of frozen, refrigerated and dry food, water, and household goods. In order to expedite relief shipments to Tonga, Matson is redirecting its vessel Kamokuiki for a special voyage to deliver disaster relief goods donated by the company and community groups. The ship, which normally operates Matson’s China-Auckland Express (CAX) service, will depart Auckland on Thursday, January 27 and arrive at Nuku’alofa on Monday, January 31 before returning to the CAX service. In addition, on February 2, Matson’s vessel Papa Mau was scheduled to depart Auckland carrying regular cargo and relief goods destined for arrival at Nuku’alofa on February 7. The ship will make a second special voyage departing Auckland on February 16 and arriving at Nuku’alofa on February 21. Matson is working with community organizations in Auckland that are leading Tonga relief efforts, providing transportation of donated goods to Nuku’alofa. In addition, Matson has launched an employee donation drive that will match donations from Matson employees with equal contributions to New Zealand Red Cross’ Pacific Tsunami Appeal fund for Tonga disaster relief. The program runs through February 15, 2022.

INDUSTRY BRIEFS Port of Long Beach prepares for Year of the Transformation

ransformation is needed across the supply chain in order to accommodate the growth and future opportunities in international trade, Port of Long Beach Executive Director Mario Cordero said on February 9 during a virtual State of the Port address. Technology, partnerships and a continued shift toward 24-hour operations will aid the entire goods movement industry from the docks to doorsteps, Cordero said during the second virtual State of the Port address — available for viewing now at www.polb.com/stateoftheport. “We continue to debate the same issues year after year, while the operational model remains status quo — never changing,” Cordero said. “The test is not in how many containers we move but in how we transform and build a port that benefits everyone.” A soft launch is scheduled later this month for the “Supply Chain Information Highway,” a data-sharing tool that will maximize efficiency by tracking cargo across various modes of transportation. The Port will continue to enhance on-dock rail to accelerate cargo movement, through improved rail infrastructure and partnerships. Additionally, the Port of Long Beach will advocate for 24-hour operations for the entire supply chain — shipping terminals, warehouses, trucking and other critical links. “Despite challenges in the global economy, it’s been an incredible year for the Port of Long Beach,” said Long Beach Mayor Robert Garcia. “And that’s thanks to all of our incredible workers at our ports. Everyone has been working extremely hard to make sure we meet America’s needs and efficiently move cargo in and out of our port.” The Port ended 2021 with 9,384,368 twenty-foot equivalent units processed, up 15.7 percent from the previous record of more than 8.11 million TEUs moved in 2020. The significant increase in cargo was driven by evolving consumer spending habits during the COVID-19 pandemic, when consumer demand for travel and entertainment declined due to health precautions and pivoted toward online spending. “We have all heard so much about the supply chain backlog, but what is actually happening is that our dockworkers are moving more cargo than ever — and doing so during a pandemic,” Harbor Commission President Steven Neal said. “We are building a bright future for the Port of Long Beach, the goods movement industry, and for the community.” Key projects completed in 2021 include the final phase of the Long Beach Container Terminal, the greenest, most technologically advanced terminal in North America, along with the adjacent Fireboat Station No. 15. Over the next decade, the Port plans to invest in rail improvements that will improve efficiency, reduce truck trips and lessen environmental impacts amid increases in cargo.

Port of Long Beach Executive Director Mario Cordero delivers the 2022 State of the Port address. Construction begins in 2023 on the Port’s rail program centerpiece, the Pier B On-Dock Rail Support Facility, which will allow longer trains to be created more frequently. The Port continues its dedication to enhancing the environment. Looking ahead, the Port plans to transform the drayage truck fleet to zero-emissions by 2035, funded by a Clean Truck Fund rate starting in April. Terminal operators are also doing their part by deploying zero-emission cranes, vehicles and yard equipment.

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: INDUSTRY INSIGHT

DeJesus leads Port of Stockton to new heights

tarting a new job is challenging at the best of times. Starting a new job in the middle of a pandemic takes that challenge to a whole new level. Luckily for the Port of Stockton, Port Director Kirk DeJesus thrives in a challenge. Carrying on the legacy of retired Director Richard Aschieris, DeJesus has not only steered the Port through these strange times but has handily increased business, addressed infrastructure needs, and kept true to Stockton’s environmental goals. Our Q&A with Mr. DeJesus provides valuable insights for port leaders on what a little bit of focus, determination, and discipline can achieve. APP: Kirk, your bio shows quite a bit of diversity. Could you provide us with an overview of your career to date as well as what you consider to be your strengths for the position of Port Director? KD: I was an Air Force pilot for 11 years before joining United Airlines to fly international commercial flights. Following 9/11, when many in the airline industry were furloughed, I started my own appraisal company. That business was going so well that, when I was called back to United a year later, I decided to continue on with my own company and did so until I sold it in 2008 – luckily, just before the global recession hit. In 2008, I joined a fertilizer packaging company which was later sold to Kinder Morgan, running operations for three facilities — two in Stockton and one in San Diego — and then expanding into business development for the Pacific Northwest region. When the Port Director role became available in February 2021, I found myself identifying with a lot of the criteria the Commission wanted — someone who was business-centric; worked on the opposite side of the table from the Port and understood the priorities and issues for terminal operations; and had close ties to the community. I have 14 — PACIFIC PORTS — February 2022

Photo courtesy Port of Stockton

This past year was the best we’ve ever had for both revenue and volume. In some ways, we’ve benefitted from the pandemic. lived in Stockton for over 22 years and as a side note, my wife’s great grandfather was one of the original port commissioners. I’m fairly intuitive when it comes to operational and commercial aspects as well as management skills like budgeting and finances, and I’m very lucky to have a great staff and really strong directors in place for those areas that are more foreign to me — personnel and human resources, for example. APP: What has it been like coming into the position in the middle of a pandemic — and further, how has the Port of Stockton fared over the past two years? KD: With 115 staff who are either working from home or spread out in different buildings, it’s been tricky trying to put names to faces. And we’re growing even more — we just hired a new director of real estate, and we currently have nine positions open with more to fill behind those. We’re working on a

retrofit of our Administration office, so we’ll be able to accommodate all staff under one roof by mid-2023. Regarding the Port during the pandemic, we’ve been fortunate from an operations perspective. This past year was the best we’ve ever had for both revenue and volume. In some ways, we’ve benefitted from the pandemic. We’ve seen a 31 percent increase in breakbulk logging that normally would have gone out in containers elsewhere. Because of restricted travel for ILWU members, rice that would have been exported through Sacramento came to Stockton because we had available labour. APP: At the APP Conference in October, you had alluded to a new export facility in the works. Are you able to expand on that news now? KD: Yes, it’s in the public record now although not quite finalized. We’ve been working with Denmar U.S. on their proposal to build and operate

INDUSTRY INSIGHT a new, state-of-the-art export facility for American natural soda ash coming from Green River, Wyoming. The planned volume would be significant — initially at 4.8 million tons per year with the potential to increase volumes to up to seven million tons. This would be a great benefit to the Stockton and San Joaquin County with the creation of over 439 jobs and $38.3 million in local labor income annually during the twoyear construction phase. Once at full capacity, the operation of this new terminal is expected to create 189 jobs and $17.8 million labor income each year in 2023 and 2024. Beginning annually in 2025, operations will expand to create 323 jobs and $32.4 million in labor income ongoing. By 2025, annual state and local tax revenues will grow to approximately $5 million, including $2 million in direct taxes and an additional $3 million in state and local tax payments. The project will require rail improvements at the Port in order to handle the additional capacity. At present, there’s a plan to build a loop track at the far western end of the west island, but our overall rail infrastructure is something we’ve been addressing as well. One of the biggest limitations for the Port right now is our rail infrastructure,

We’re quite proud of the many initiatives we have underway as well as plans to do even more. We’re moving toward electrification of all equipment at the port. but we have a plan in place and are a part of the SB1 Grant for infrastructure improvements, including the rail bridge which, at present, is a single track which is used as the entry point for both the east and west islands. We’re in the design phase and working on grant proposals. Another limitation that we’re keeping our eye on is the number of pilots who volunteer to come down the river, a more complicated trip than bringing ships into coastal ports. Currently, that are about 12 pilots out of 60 who work the river. It’s a concern as we continue to increase our throughput volume, so we’ve been having internal discussions on how we can encourage more pilots to volunteer. APP: Are there additional opportunities on the horizon for the Port of Stockton? KD: Yes, we’re working with the U.S. Army on conveyance of property about 10 miles south of us that would create a 505-acre inland intermodal terminal and we’re also working on bringing in

containers on small vessels — about 2,000 TEUs. We’re limited on the size of the vessel because of our draft, but we see bringing containers here as being beneficial in taking some trucks off the road to alleviate congestion and air emissions. We haven’t handled containers in the past, but it’s something we’d like to do and could be a significant source of growth for us. There are also opportunities related to agriculture products — specifically nuts — that go out from Oakland by container. Because there’s so much container congestion, we believe a good solution would be to have these exported as breakbulk. We’re working on that now. APP: One issue I’ d like to highlight for our readers is the efforts of the Port of Stockton to reduce air emissions. KD: We’re quite proud of the many initiatives we have underway as well as plans to do even more. We’re moving toward electrification of all equipment at the port. So far, about 60 percent of our cargo handling equipment is

Photo courtesy Port of Stockton

February 2022 — PACIFIC PORTS — 15

INDUSTRY INSIGHT zero-emission. We have 36 forklifts, two multi-function utility vehicles, and one rail mover that are now all electric. In addition to the Port’s own Clean Air Strategy, we work with the community under the Stockton Community Emission Reduction Plan as part of the state regulations which includes an electric vehicle blueprint extending beyond

the Port. We’re also working on a statefunded grant for $100,000 per year to purchase five more vehicles. The grant would cover about half the cost. That’s the on-land portion of our plan but we’re working with or tug and tow companies to develop ways they can retrofit their vessels — either a more efficient diesel solution or

About the Port of Stockton

ocated in the fertile San Joaquin Valley, the Port of Stockton, a public agency, is in an ideal position for domestic and international distribution. The Port is situated in the hub of four major freeways, two transcontinental railroads, an international waterway, and a regional airport, and it boasts first class warehouse storage and handling facilities for both dry and liquid bulk materials, facilities, and equipment to handle break-bulk and containerized cargoes by land or sea. The Port of Stockton has first class warehouse storage and handling facilities for both dry and liquid bulk materials, facilities, and equipment to handle break-bulk and containerized cargoes by land or by sea. Immediate access to two transcontinental railroads is complemented by two loop railroads, one on-dock, for accommodating unit trains for export of coal, petroleum coke and ores, plus consolidation of rail shipments of inbound and outbound steel coils. All berths have a draft of 35 feet/10.668 meters and offer railroad connections, fresh water at berth, bunkering and dockside phone connections. Berths — Berth 2: (length of 616 feet/188 meters for logs, steel products, heavy lifts, fertilizer, cement); Berth 3 (no restrictions on length for steel coils, containers, cement, fertilizers, liquid bulk); Berth 4 (no restrictions on length for steel coils, containers, cement, fertilizers, liquid bulk); Berth 5 & 6 (no restrictions on length for general cargo and liquid bulk); Berth 7 & 8 (length of 944 feet/288 meters for 32 foot/9.7 meter hinged boom for anhydrous ammonia; pipeline for molasses and liquid fertilizer); Berth 10 & 11 (no restrictions on length for heavy lift, container, general cargo, dry & liquid bulk); Berth 12 & 13 (length of 850 feet/259 meters for dry bulk, coal, coke, clay, sulfur, copper concentrate, and liquid bulk). West Complex Berths 14 through 20 — 6,000 lineal feet (1,829 meters) of docks; 630,000 sq. feet / 58,500 sq. meters of transit sheds; truck, rail & crane accessible. Warehouses — The Port has 7.7 million square feet (715,000 sq meters) of warehouses which are either operated by the Port or leased to business partners who provide their own labor. At the Port, Interstate-5 connects to all major highway systems and all these facilities are served by two transcontinental railroads. The warehouses are complemented by covered staging areas for easy truck and container unloading and warehouse distribution operations can be tied into the Port’s system. Standard features for all warehouses include 120,000 square feet and can be leased in 40,000 square feet sections; sprinkler systems with fire alarms; dock doors on both sides, with drive-thru access on both ends, up to 14 feet high; patrolled by k-9 units, 24 hours a day 7 days a week. Properties — The Port of Stockton covers 2000 acres (810 hectares) of operating real estate. Included is over 7.7 million square feet (715,000 sq meters) of covered warehouse space, 50 miles (80.5 km) of railroad track and more than 2 linear miles (3.2 km) of dockage. The Port of Stockton houses 47 120,000-square foot warehouses for lease. All warehouses are partitioned and can be leased in 40,000 square foot sections. These warehouses are located in the West Complex on the former Naval Facility of Rough & Ready Island.

16 — PACIFIC PORTS — February 2022

electrification. It’s a very expensive proposition though. And we’ve started looking at emission-capture systems for barges and vessels. There are some really interesting developments in that area, but the technology still needs to catch up to the requirements. APP: You mentioned the costs of the transition to zero emissions. Are you worried this is putting you at a competitive disadvantage with other states? KD: It is very expensive, but we’ve been able to secure about 80 percent of the funding through grants and we do see operational benefits. I don’t believe it’s putting us at a disadvantage – for a lot of the commodities that are coming through here, it wouldn’t make sense to travel to Washington or Oregon. Obviously, our bottom line could be better but it’s just the nature of the beast. The entire industry is going to have start implementing the same measures — California is taking the initiative to get to zero emissions by 2030 which is coming up quickly, but the rest of the nation and the world will be required to catch up. APP: Last question. Looking to the future, what are your priorities for the Port? KD: I’d like to see us become a net export port. I think the soda ash project and the addition of a few other bulk commodities would allow that to happen, and I’d like to see continued diversity in commodities going through the Port to be able to absorb market fluctuations while remaining viable. Not so much a long-term goal but still a priority is our community outreach efforts — to let the community see what we actually do and the steps we’re taking to make the Port of Stockton environmentally sustainable and safe for the community. We’ve had a lot of luck with that to date. Initiatives like tours for children and the community so they can see what we do and general education of the issues and how we’re addressing them. We’ve seen some really good success on our efforts so far. PP

PORT INFRASTRUCTURE :

Canadian and U.S. port infrastructure funding and policy By Phil Davies, Principal, Davies Transportation Consulting Inc.; Hanh Le-Griffin Director, Ports & Marine Terminals, Hatch Engineering; and Darryl Anderson, Managing Director, Wave Point Consulting

laying an integral role in economies around the world, ports not only facilitate the movement of imports and exports critical for a nation’s GDP, but they also act as a significant source of family-wage jobs throughout each country. In a previous issue of Pacific Ports Magazine, the authors of this article observed that shifting economic conditions, customer expectations, the emergence of new technologies, and ever-tightening environmental regulations are constant pressures facing ports and their customers. Moreover, confronting logistics and intermodal transportation challenges continue to factor greatly in port and regional trade competitiveness. The Northwest Seaport Alliance (Seattle/Tacoma) and the California ports of Oakland, Los Angeles, and Long Beach recently commissioned a study to assess and understand the differences between Canadian and U.S. port infrastructure funding and governance policies. In addition to the study commissioners, additional significant regional ports in each country were assessed – namely, the ports of Nanaimo and Port Alberni in British Columbia; Bellingham, Everett, and Vancouver in Washington State; and San Francisco, Stockton, Hueneme, and San Diego in California. Understanding federal funding of port infrastructure is vital for at least two reasons. First, U.S. Pacific coast ports compete directly with ports in Western Canada for container cargo volumes in the Transpacific trade. While U.S. Pacific Coast Ports are committed to maintaining thriving gateways for global trade, nevertheless, Canadian West Coast Ports’ share of

Improving the efficiency of existing infrastructure requires strategic investments that enable ports to handle current volumes and grow capacity. intermodal traffic to the U.S. Midwest has increased from two percent to 22 percent since 2007. Second, the goal of the study is to identify port administrative policies and funding initiatives that may be required to ensure that the needs of exporters, importers and consumers across the continent are well served in the days and years ahead. As the Infrastructure Investment and Jobs Act and the Build Back Better Act start to take shape, the study’s findings should provide great insight and guidance on funding priorities.

Overall findings

The scope of the study included a review of government funding programs for port and transportation infrastructure related to British Columbia, Washington, and California ports from 2005 to 2021. The review of the relevant Canadian and American transportation infrastructure funding sources included the following eight features: • Formula Funding Programs • Formula Funding Eligibility • Discretionary Funding Programs • Primary Granting Agency • Policy Focus • Discretionary Program Eligibility • Infrastructure Eligibility • Contribution Limits Based on the selected ports and transportation infrastructure funding features, the study revealed that investment in high-capacity, high-efficiency infrastructure has been a national priority in

Canada. From 2016-2020, B.C. ports received US$372 million in Direct Port project funding compared with US$45 million for Washington State ports, and US$179 million for California ports. “Direct Port” projects are projects for which a port is the lead agency and/or the infrastructure funded is either on or directly adjacent to port property. Infrastructure funding differentials, to the extent that they impact the efficiency of goods movement, contribute significantly to the relative competitiveness of a particular port or gateway region. Canadian ports have received more than double the federal funding levels compared to U.S. West Coast ports. Improving the efficiency of existing infrastructure requires strategic investments that enable ports to handle current volumes and grow capacity. To remain competitive, the U.S. must plan for and prioritize investment in ports.

Major ports and gateways

The major ports included in the analysis vary significantly in size and cargo characteristics. The Port of Vancouver, for example, is the largest single port by tonnage in Canada, with a total of 144 million tonnes in 2019 (115 million tonnes of foreign cargo and 30 million tonnes of domestic cargo). Bulk and breakbulk cargo accounted for over 80 percent of the total. The Ports of Los Angeles and Long Beach combined handled 130 million tonnes, of which 67 percent was containerized cargo. February 2022 — PACIFIC PORTS — 17

PORT INFRASTRUCTURE The dominant traffic at the major Canadian ports of Vancouver and Prince Rupert consists of bulk exports which originate in Western Canada. Exports accounted for 86 percent of total traffic by tonnage for the Port of Vancouver and 80 percent for the Port of Prince Rupert in 2020. Bulk commodities (coal, grain, potash, sulphur, etc.) accounted for 84 percent of export traffic at the Port of Vancouver and 80 percent at the Port of Prince Rupert. Total tonnage provides a benchmark for the relative size of West Coast ports, and the composition of cargo is significant in comparing the significance of port funding. For example, projects funded by the Canadian federal government at the Port of Vancouver may improve efficiency for all types of cargo, while projects funded by the U.S. federal government are more likely to benefit the container sector.

...Canadian contributions to B.C. ports totaled US$560 million compared to US$92 million for Washington State projects and US$1.6 billion for California projects. For “Direct Port” projects over the entire 15-year period, Canadian contributions to B.C. ports totaled US$560 million compared to US$92 million for Washington State projects and US$1.6 billion for California projects. The largest California port project undertaken over the last 15 years was the replacement of the Gerald Desmond Bridge. The total project cost was US$1.56 billion, and funding sources included US$726.6 million from various federal programs and a Transportation Infrastructure Finance and Innovation Act (TIFIA) Loan of US$500 million to the Port of Long Beach. If this project is excluded, contributions to California Direct Port projects totaled

only US$279 million from 2005 to 2020. Beyond port-specific projects, U.S. road and rail infrastructure that supports the efficient movement of goods throughout the supply chain are also receiving significantly fewer federal dollars than B.C. investments. The study reports that from 2005-2020 federal contributions to port-related projects total US$1.332 billion in B.C. compared to US$457 million for Washington projects. “Port-Related” projects include “Direct Port” projects (projects for which a Port is the lead agency and/or the infrastructure funded is either on or directly adjacent to port property); and projects which may improve goods movement

Photo courtesy Port of Long Beach

The replacement for the Gerald Desmond Bridge — The Long Beach International Gateway Bridge — cost US$1.56 billion with funding coming from a number of federal grants and loans and was the largest California port project undertaken in 15 years. 18 — PACIFIC PORTS — February 2022

PORT INFRASTRUCTURE container-on-barge shortsea shipping service initiated by DP World in 2012. Contributions to Washington’s Port of Vancouver were provided to assist in the decade-long, US$250 million West Vancouver Freight Access program consisting of 21 individual projects to improve freight rail efficiency by facilitating unit train operations to the port. Contributions to the Port of Everett included US$10 million to rebuild the South Terminal and US$17.8 million in 2020 to facilitate development of a new marine cargo terminal on the site of a former pulp mill. The largest California contribution was US$53.8 million for the STACKED Intermodal Project (Autos) at the Port of Hueneme in 2020. Other significant California contributions including US$30 million for a shortsea shipping project at the Ports of

Stockton, Sacramento, and Oakland in 2009, and a US$21.8 million grant to the City of Antioch and AMPORTS, Inc. for an auto terminal project.

Insights from Canadian port federal infrastructure investment policy

The results suggest that the emphasis of the Canadian port infrastructure funding policy may not be as fully developed as the U.S. system when it comes to regionally significant ports. Canada’s major Pacific ports have engaged in broad regional education, advocacy, and planning efforts which have impacted both the design of federal funding programs and the allocation of funding to port and port-related projects. Even though Canadian Port Authorities are agents of the federal Crown, federal policy was not supportive

Photo credit: Lonnie Wishart (www.lonniewishart.com)

systems infrastructure and freight operations efficiency but are not specifically related to port operations. These dollars support critical infrastructure such as road, rail, highway, and bridge improvements that support a trade gateway. The Northwest Seaport Alliance (NWSA) is committed to sustaining a thriving gateway for U.S. trade in the Pacific Northwest and is making substantial investments to modernize our marine terminals and improve freight mobility through the port. The NWSA is implementing many of the study’s recommendations, including the modernization of Terminal 5 to handle larger container ships, partnering with local governments to advocate for improved landside infrastructure, and investing in zero-emission cargo-handling equipment in the gateway. “The Northwest Seaport Alliance has worked diligently to remain competitive despite inequitable distributions of the Harbor Maintenance Tax and growing competition from B.C. ports. The Canadian government has made British Columbia ports a national priority and unfortunately, U.S. West Coast ports have seen market share slowly shift north to Canada,” stated 2021 NWSA Co-Chair and Port of Tacoma Commission President Dick Marzano. “More infrastructure funding from the U.S. federal government means that we can move more cargo and support more family-wage jobs across our region.”

Regionally significant ports

Analysis of federal investments in British Columbia, Washington State and California’s regionally significant ports reveals that, for the period 2005 to 2020, US$44.4 million was granted in B.C., US$61.1 million in Washington State and US$139 million in California. The largest Canadian contribution was CD$46 million (US$35 million) to the Port of Nanaimo for expansion of the Duke Point Terminal which handles containers for a successful

Port of Prince Rupert’s Fairview Terminal February 2022 — PACIFIC PORTS — 19

PORT INFRASTRUCTURE

Photo courtesy Port of Seattle

The Northwest Seaport Alliance’s major container terminals of Husky Terminal, Washington United Terminal and Pierce County Terminal in front of Mt. Rainier at Port of Tacoma. of contributions to fund port infrastructure prior to 2006. A locally led initiative called the Greater Vancouver Gateway Council (GVGC) was instrumental in building government support for port funding. Membership in the GVGC also includes the Provinces of Alberta, Saskatchewan and Manitoba, boards of trade, private sectors firms, universities, and associations such as the Western Transportation Advisory Council. Education, advocacy, and planning efforts of major Canadian ports have been successful in attracting federal funding. which have impacted both the design of federal funding programs and the allocation of funding to port and port-related projects. In 2014, a new organization, the Gateway Transportation Collaboration Forum (GTCF), was established. The GTCF Steering Committee consists of senior executives from Transport Canada, the BC Ministry of Transportation and Infrastructure, Vancouver Fraser Port Authority (i.e., Port of Vancouver), TransLink, and the Greater Vancouver Gateway Council. The success of the GCTF in attracting significant contributions under the National Trade Corridor Fund (NTCF) since 2017 20 — PACIFIC PORTS — February 2022

can be attributed in part to the proactive planning process led by the Port of Vancouver. With the new NTCF program, the Port of Vancouver has taken a lead role in planning and delivering projects throughout the Lower Mainland.

Conclusions

“The important role seaports play in the nation’s economy has never been more visible than it is today, during the global pandemic,” said Port of Long Beach Executive Director Mario Cordero. “The ports of Long Beach and Los Angeles, known as the San Pedro Bay port complex, handle 40 percent of the nation’s container cargo imports. The West Coast is the gateway to Asia and the country’s most prominent trade partners. A more equitable distribution of federal funding would make all our operations faster and more efficient, with tremendous benefits up and down the supply chain.” Key takeaways from the study include: • Major ports in British Columbia have successfully competed against Washington and California ports for container traffic.

• Canada has treated the robustness of West Coast ports as a national priority. • Canadian federal contributions to B.C. port projects have substantially exceeded U.S. grants to Washington and California ports over the past five years. Beyond funding levels, the study identified recommendations to increase U.S. West Coast port competitiveness, including prioritizing investments to accommodate larger container vessels; upgrading landside infrastructure such as roads, rails, and bridges; and investing to improve the environmental sustainability of port operations. “The Northwest Seaport Alliance is making strategic investments in infrastructure to increase the efficiency of Seattle and Tacoma ports and remain competitive, but we can’t do it alone,” stated 2021 NWSA Co-CHair and Port of Seattle Commission President Fred Felleman. “Investments in port infrastructure not only benefit our economy but also reduce impacts on our neighboring port communities and the environment. The Infrastructure Investment and Jobs Act and the Build Back Better Act fully recognize these benefits.”

BEST PRACTICES

Partnership strengthens tanker escort and marine response for Trans Mountain Expansion Project

rans Mountain, KOTUG Canada Inc., the Sc’ianew First Nation, and Western Canada Marine Response Corporation are coming together in a unique, multifaceted set of agreements that serve to strengthen the many aspects of tanker escort and marine response on Canada’s West Coast. “These agreements represent a significant milestone in meeting our marine shipping commitments as a result of innovative partnerships between marine industry and Indigenous communities,” said Ian Anderson, President and Chief Executive Officer, Trans Mountain Corporation. “This is a great example of how shared values of protecting the marine environment, building capacity, and growing local economies can work together.” As the operator of Canada’s only oil pipeline servicing the West Coast of Canada and providing tidewater access to foreign markets for Canada’s petroleum resources, Trans Mountain received approval in 2019 to proceed

“This is a great example of how shared values of protecting the marine environment, building capacity, and growing local economies can work together.” with its Expansion Project that will provide increased capacity to support Canadian crude oil production growth and ensure access to global energy markets. The largest project in the pipeline’s history, it involves installing approximately 980 kilometres of new pipeline, new and modified facilities including pump stations and terminals, and a new dock complex at Westridge Marine Terminal in Burnaby, British Columbia. With Trans Mountain’s capacity increasing from 300,000 barrels per day to 890,000, it is expected that tanker traffic will increase from roughly 32 vessels per year to an estimated 380. It should be noted that the size of the vessel doesn’t change – Aframax and Panamax. As part of the approval process, Trans Mountain undertook a series of studies, including a traffic

analysis and a quantitative marine risk assessment. Based on the studies, they extended the distance that tugs were tethered to loaded tankers and set about searching for larger tugs with increased bollard pull capacity to be brought to the West Coast. Enter KOTUG Canada Inc., a partnership between KOTUG International B.V. and Canada’s Horizon Maritime Inc., who has just signed a long-term agreement with Trans Mountain to provide escort towage to Projectrelated tankers transiting through the Gulf Islands and out to the western entrance of Juan de Fuca Strait. “We are proud to be selected as the exclusive provider of escort tug support to Trans Mountain tankers,” said Ard-Jan Kooren, President and CEO, KOTUG International; Board Member and Director, KOTUG Canada. “It is an

Image courtesy Trans Mountain

KOTUG Canada’s two escort tugs and WCMRC’s offshore supply vessel will be based out of Beecher Bay to bolster safety and spill response as Trans Mountain readies for increased tanker visits to their Westridge Marine Terminal. February 2022 — PACIFIC PORTS — 21

BEST PRACTICES

22 — PACIFIC PORTS — February 2022

Photo courtesy Trans Mountain

acknowledgment of the strong heritage, knowledge, and innovative culture of the combined companies of KOTUG Canada, who both have impressive track records. Our strong commitment to First Nations, social responsibility and sustainability will successfully support Trans Mountain’s environmentfocused safety initiatives.” KOTUG Canada will provide and operate the two dedicated escort tugs, each approximately 50 metres long, with minimum bollard pull capacity of 110 tonnes, which will be flagged in Canada and operated by highly skilled and capable Canadian mariners. New technologies will assist to reduce underwater radiated noise and greenhouse gases. This includes the application of a revolutionary vessel hull coating developed in Canada by Graphite Innovation & Technologies. KOTUG Canada was selected for this purpose by shippers on the Trans Mountain Pipeline after a rigorous and competitive process, facilitated by Trans Mountain. Besides the strong technical specifications of these modern vessels, decisive factors for the award included KOTUG Canada’s commitment to a strong and innovative approach to Indigenous involvement and the partnership’s strong foundation in operational excellence in Canada and around the world. With these factors in mind, KOTUG Canada has established a partnership for close coordination with the Sc’ianew First Nation, located in Beecher Bay, on Vancouver Island. This strategic location along the Trans Mountain escort route will provide KOTUG Canada with a safe home for a dedicated berthing facility as well as supporting the commercial activities of the Sc’ianew First Nation in Beecher Bay. The escort tug names will commemorate two important people from the Sc’ianew community. “We have gone through great lengths, controversy and criticism to protect the ocean,” said Chief Russ Chipps,

Representatives from KOTUG Canada and the Sc’ianew First Nation celebrate the new partnership agreeement. Sc’ianew. “This is just one part of our commitment to our people to do so. We want to be the centre for research, development and ocean protection, all while being the ambulance of the sea.” Trans Mountain’s Anderson agreed. “Chief Chipps and his community have shown great leadership in the protection of the marine environment, and this partnership will provide significant employment and commercial opportunities,” he said. “I could not be happier for the Sc’ianew people. This is a great example of how shared values of protecting the marine environment, building capacity, and growing local economies can work together.” The agreement also includes related training and development of community members of Indigenous communities to maintain the necessary experience and knowledge in the field of advanced safe tug operations and marine response. Importantly, the partnership between KOTUG Canada and the Sc’ianew First Nation provides vessel crews opportunities to learn from traditional knowledge and operate with respect and appreciation of the unique natural habitat of British Columbia’s coastal environment. A third agreement completes the holistic approach being taken to

ensure the safe transit of tankers on the West Coast. KOTUG Canada is partnering with Western Canada Marine Response Corporation (WCMRC) for the provision of one dedicated offshore supply vessel (OSV) to support the protection of the Salish Sea/ Haro Strait and Juan de Fuca Strait. WCMRC will supply and operate a dedicated OSV, suitably equipped for 24/7 oil spill response services. This highly capable vessel also possesses significant bollard pull capacity of 207 T BP and is also capable of vessel towing, if required to do so. Speaking on behalf of WCMRC, President Kevin Gardner said that “The offshore supply vessel is a substantial enhancement of oil spill response capacity on Canada’s West Coast. Offshore supply vessels have proven to be very effective oil spill response ships. At 245 feet and with 1,000 tonnes of oil storage capacity, it will be the largest ship in our fleet. The OSV will allow WCMRC to mount a large-scale response within six hours anywhere along the shipping lanes. WCMRC will be outfitting the OSV with 4,000 feet of offshore boom, a high-speed sweep system and a highcapacity skimming system.” Early operations are expected to commence from late 2022.

COLLABORATION

MARAD Town Hall highlights port collaboration for strength

ne of the most insightful sessions of the APP Annual Conference was the MARAD Town Hall. With Gus Hein, Gateway Director, Mid-Pacific Region, U.S. Maritime Administration, leading a panel of executives from small, medium, and large ports in California, the ‘armchair’ discussion focused on many of the hot topics, issues, and challenges facing ports today. Of special note was the unanimous agreement that collaboration was seen as the best strategy to address many of the challenges. Before delving into the discussion, each panelist provided introductory remarks about their port’s operations and the issues they face today. For Frank Colonna, Commissioner and Past President for the Port of Long Beach, the big issue of course is port congestion that was exacerbated by the pandemic. “We’re striving to try to break this and gain efficiencies,” he said, noting throughput at Long Beach has reached a milestone of nine million containers per year. “We’ve commandeered any space we can at the port for Short Term Overflow Resources (STOR) and have been stacking containers on vacant land to alleviate truck traffic and congestion at the terminals.” Efficiencies were also being realized with the recently finished Long Beach International Gateway Bridge which provides clearance for megaships carrying up to 22,000 TEUs. Colonna further noted that the Port has committed to a goal of having 40 percent of cargo move by rail over the next decade — reducing truck congestion and create even more efficiencies. Kristin Decas, CEO for the Port of Hueneme, reported that while they may look small compared to the Los Angeles/Long Beach complex, the Port of Hueneme accounts for roughly 10

While each panelist was quick to note air quality and the efforts to reduce air emissions as a key priority, rising sea levels were also top of mind. percent of America’s seaport activity. “We are the top importers of bananas on the West Coast and we’re about the sixth largest automotive port in the country as well as in the top six on the West Coast for container traffic.” Decas hoped that today’s discussion would provide a catalyst for the port community to take advantage of recent attention from both state and federal governments because of the supply chain crisis. “This is an opportunity for us to affect longterm change and be at the forefront of shaping public policy.” As Executive Director for the Port of Humboldt Bay, Larry Oetker considers the Port one of California’s most underutilized — something he is working with the community on changing. “We developed a comprehensive strategy focused on four major economic sectors that align with the community’s values,” he said: a 600,000 square-foot aquaculture investment that is currently going through the permitting phase; new port access for broadband cable interconnectivity which connects the Port’s lands to Taiwan and Singapore with Australia and Japan lined up as the next two; opportunities within the timber industry for economic growth through value added products; and, perhaps the most significant focus for the Port, the development of Humboldt Bay as an offshore wind port. Oetker’s main message for Conference attendees was to “find something right for your community, be disciplined and stick with it, and think in terms of multiple investments — growth isn’t going to happen with just one funding source or one project.”

Michael LaFleur, Vice President, Maritime Services for the Port of San Diego, started his summary by aptly noting that “if you’ve seen one port, you’ve seen one port,” and none more so than San Diego whose maritime portfolio makes up about 25 percent of the Port’s overall operations. “We have been quite resilient when it comes to getting through COVID-19 on the maritime side,” he continued, “but the remaining balance of our portfolio is tourismdriven and has taken quite a hit.”

Addressing today’s issues

The first question posed to the panel came from Commissioner Bonnie Lowenthal who asked how climate change was impacting operations. While each panelist was quick to note air quality and the efforts to reduce air emissions as a key priority, rising sea levels were also top of mind. “Regulations addressing sea level rise weren’t designed for ports,” said Oetker. “The guidance that was coming out spoke more about ‘retreat’ which is not a realistic solution for ports. Regulatory agencies need to look at ports differently, especially when it comes to waterfront infrastructure.” Colonna agreed. “Retreat is not an option given the limitations of our boundaries,” he said, adding that the Port of Long Beach has already seen subsidence due to sea level rise. Decas noted that there were really two pieces to the conversation on climate change that needed to be considered: “First, how climate change will impact a port’s infrastructure and the need to consider this for future developments; February 2022 — PACIFIC PORTS — 23

COLLABORATION

APP President Kimberlyn King-Hinds (second from lett), thanks the MARAD Town Hall panel: Moderator Gus Hein (MARAD), Frank Colonna (Port of Long Beach), Kristin Decas (Port of Hueneme), Michael LaFleur (Port of San Diego) and Larry Oetker (Port of Hmboldt Bay). and second, how to mitigate the port’s impact on climate change, for example, the emissions factor and building toward decarbonization.” Raising the issue of the supply chain and whether sustainability initiatives might take a back seat in favor of economic growth should congestion worsen, Hein asked panel members to relay their experiences over the past two years as global logistics were impacted by the pandemic. Both Decas and Colonna described similar situations of cargo coming to a halt at the beginning of the pandemic, great uncertainty about what was to come, and then getting hit with a huge surge. “It’s like taking a car from zero to 50. You need time to ramp up, the system needs to adjust,” Colonna said, adding that the Port continues to look at all potential solutions, whether it be better communication with ships departing Asia or securing extra land for container storage (but noting that rail access was an important component of securing inland terminal areas). “We didn’t know what to expect,” said Decas. “As the pandemic took its course, the exact opposite of what we thought would happen occurred and we saw business come back very strong.” 24 — PACIFIC PORTS — February 2022

“Rather than view each other as competitors, we need to look at how we can work together to build strength into our region...” However, given that cargo arriving at the Port of Hueneme gets offloaded and sent directly to distribution facilities and private terminals, they have not experienced the same congestion issues as the Port of Long Beach. “Imports at the Port of Hueneme were up 135 percent in the first quarter of 2021 and exports are up 219 percent in the same period,” she said, adding that a new partnership with the Naval Base Venture County to utilize their lands for cargo traffic has helped Hueneme provide support for overall regional congestion, “but we need to make sure we have the capability to have equipment and trucking in place to be able to accommodate the extra cargo,” Decas said. In considering solutions, Decas noted that there were opportunities to barge cargo from Long Beach/Los Angeles but that costs have been prohibitive. “This could potentially be an area where the federal government could assist by subsidizing some of the costs. This would be a good conversation to have.”

LaFleur picked up on the challenges of bringing in more cargo raised by Decas and applied it to the operations at the Port of San Diego. “It’s not just a matter of saying, okay, let’s bring in more ships,” he said. “We may have the area to lay down those containers, but we don’t have the chassis or the trucking. It will take regional collaboration to resolve the congestion, especially as you start to get into the discussion of zero emission vehicles.” Both panelists and attendees agreed that the way to deal with current challenges in the supply chain was through collaboration. “We need to start looking at the overall system – not just ports but the entire supply chain,” said Decas. “Rather than view each other as competitors, we need to look at how we can work together to build strength into our region. We should consider other regions as the competitors to be able to build a strong network here in California.” Colonna further commented: “The issues related to the supply chain will

COLLABORATION

The Town Hall provided a great opportunity for conference attendees to weigh in on topics (above, Sara Young from the Port of Skagit). not be solved overnight. We need to look at the bigger picture of regional transportation planning and then factor in the long-term investments needed to achieve that. Right now, ports have the attention of both regional and national governments, and they recognize that investments are needed. We should be taking advantage of this.” With the issue of other players in the supply chain raised, the discussion turned to the challenges of the “human infrastructure” — working conditions in warehouses as well as truckers and difficulties in attracting workers. “We’re struggling with the trucking side. It’s a national issue. When we shut down for COVID, we furloughed a lot of drivers who have now moved on to other careers,” said Colonna who added that the Port of Long Beach was developing interim programs and studying all possible solutions to bring balance to the equation. For Oetker and the Port of Humboldt Bay, the was one of not having the throughput volume that would sustain their own crew. “For smaller ports, the issue is more about how to attract a work force while building up the industry to be able to sustain high-paying jobs in the community.” Both Decas and LaFleur suggested that greater incentives would be needed, and it would require a “West Coast effort” to affect change.

Looking to the future

Looking to the future, Hein asked each panel member to “wave your magic wand and tell us what your port looks like in the future”. This provided an opportunity not just to envision the future but to identify the barriers in reaching that vision. “For the Port of San Diego, the biggest challenge we have right now is the growth of the port within the confines of the community,” said LaFleur. “We are backed up to our neighbors and cargo goes through those neighborhoods so for me, the port of the future is one that balances the growth of cargo and the ability to manage that in an environmentally friendly way.” LaFleur further raised concerns over how to get past those challenges. “California has the most aggressive clean air strategy in the nation, calling for 100 percent of the vehicles to be zero emission by 2030 but how do you put cargo on a zero-emission truck that’s going to be delivering goods half-way across the country? And how do we expect the trucking companies to pay for cleaner trucks? When you look at the cost per mile for moving goods, there’s a tipping point and there needs to be balance. Everyone will need to have some skin in the game.” Comments from attendees echoed LaFleur’s concerns and argued that while “we have the attention of state

and federal regulators, we should be advocating for national standards rather than singular regional policies that will put some at a disadvantage.” Again, the idea of collaboration over competition was an appealing one for all in attendance. While describing the perfect world for the Port of Long Beach and highlighting objectives for a green port, Colonna pointed out that energy sustainability and working toward energy independence is a high priority. “We depend so much on the grid and what comes into the port,” he said. “We had to withstand a potential shutdown this past summer but got a waiver. Can you imagine how many billions that would have cost us?” LaFleur agreed: “A lot of our tenants want to do electrification, but it has to make financial sense. Reliance on the grid is a big challenge for the Port of San Diego as well.” The question of what alternative fuel would be best for ports remains to answered, especially when taking into consideration the zero-emission requirement for vehicles. “Right now, we have over 100 pieces of equipment with more scheduled to come online in 2022,” said Joe Carrillo from SSA Marine, one of the West Coast’s largest terminal operators. “Already, I’m getting calls about lack of power. What happens if we can’t operate? We’re moving toward battery storage capabilities but we’re not there yet, and trucks are definitely not there yet, especially when you think of a range of 160 miles, they wouldn’t make it to some of the destinations that we service.” As is evident, the conversation that took place during the MARAD Town Hall was invaluable for port stakeholders, especially given Hein’s role as moderator and the opportunity that presented to engage with MARAD’s senior executive. The session ended with agreement to continue discussions and look for ways to collaborate as well as elevate the dialogue so that all government and industry stakeholders could work toward solutions. February 2022 — PACIFIC PORTS — 25

NEW MEMBER PROFILE

Kongsberg launches into coasts, ports, and inland waterways for 2022

“

Kongsberg Maritime (KM) is delighted to join APP,” says Konrad Mech, Director, Sensors and Robotics Channel Management. “Kongsberg Maritime is a long-time player in the maritime domain since Norway’s discovery of North Sea oil in the 1970s. Most people only know Kongsberg from the vessel side. In fact, Kongsberg has always worked with clients in the coasts, ports, and inland waterways markets. In 2022, Kongsberg is focusing on getting our message out to this sector because we have so much to offer. I’m pleased to be leading this global effort with my colleagues at Kongsberg.” Since the 1970s, Maritime has grown to be the largest of Kongsberg’s three business areas. Kongsberg’s Norwegian origins foster a close connection to the sea. Kongsberg are leading experts in sustainable ocean technology, with 80

Port operators face several converging pressures on their operations ... and Kongsberg can help. percent of our business coming from ocean-related solutions. Kongsberg has close partnerships with all stakeholders in the maritime ecosystem — governments and regulatory bodies, naval architects, shipyards, pilots, shippers, and marine engineering firms. Kongsberg has a global reputation for tackling and mastering challenges in world’s most difficult marine environments including full ocean-depth sensors, deep sea drilling and mining, and severe sea states. Port operators face several converging pressures on their operations. Vessels are getting bigger, with deeper drafts, which requires dredging of channels, turning basins and berths. Weather is becoming more severe, with stronger winds.

Ports need to strengthen their mooring systems to resist wind loads on these larger vessels. Ports also need to have rapid response capabilities to ensure safe navigation in their channels after more severe and frequent storm events. Ensuring safe channels is now a legal liability for ports and terminals, following the Athos I precedent. A shortage of mariners is accelerating the development of autonomous vessels. Operators are pivoting away from carbon fuels to cleaner alternatives such as hydrogen, ammonia, or electric vessels. All these factors drive changes to dock-side infrastructure, and any dockside infrastructure work includes work below the waterline. That’s a lot for port management to plan and deliver, and Kongsberg can help.

The diversity and expanse of Kongberg’s expertise extends well beyond vessels and can provide ports of all sizes with valuable assistance on many issues related to port operations. 26 — PACIFIC PORTS — February 2022

NEW MEMBER PROFILE Infrastructure inspection for ports is critical, particularly below the waterline. Kongsberg has a leadership position in sonar imaging for marine civil engineering applications and diver supervision. Underwater acoustics are used during all project phases. Many people know Kongsberg’s reputation in offshore projects during pre-construction, construction, post-construction operations and maintenance, and decommissioning. Kongsberg also knows how to deliver solutions for ports and inland waterways. When an engineer reads the American Society of Civil Engineering’s Waterfront Facilities Inspection and Assessment Manual on acoustic inspection, the sonar images are captured with Kongsberg Mesotech sonar. Kongsberg has partnered for several years with Northwest Michigan College to train inspection sonar operators for marine engineering applications. “Kongsberg touches many aspects of port operations. Kongsberg Norcontrol has installed Vessel Traffic Services in several Pacific ports. Kongsberg Seatex delivers AIS infrastructure solutions. Kongsberg Digital delivers marine simulators used to train pilots. Legal firms and accident investigators even use these simulators to reconstruct collision and grounding events,” Mech says. Kongsberg ascribes to the UN’s 17 Sustainability Development Goals and recognizes that the changing climate also requires action by ports and inland waterways. “One of my colleagues, Jeff Condiotty, has assisted several scientists on their PhD work with specialized instrumentation for environmental research of wetlands and fish habitat. We want to help deliver solutions to real-world challenges.” Another colleague, Jacob Sobin, regularly attends and presents to congressional committees in Washington DC. Jacob follows the U.S. government’s Port Infrastructure Development Grants, and how Kongsberg’s offerings fit in. NDAA authorized and appropriated $230 million for the 2021 Port

Infrastructure Development Program (PIDP) to make grants to improve facilities within or outside of and directly related to operations, or an intermodal connection of coastal seaports, inland river ports, and Great Lakes ports. The Port Security Grant Program (PSGP) continues to be very valuable for U.S. ports, which serve as partners with the Department of Homeland Security to harden security. Another society that’s in Washington D.C. leads this and continues to urge Congress to increase the authorization and appropriation levels for the program back to where they once were, at $400 million. Looking through the topics at the APP meeting this year, the focus was on the Infrastructure Grants program, Environmental Permitting Process, Ports and Climate Resilience and Environmental monitoring, and Port Digitization. Kongsberg touches all these topics. 2022 and beyond is going to be an exciting time for ports. The COVID pandemic threw a real curve ball at global supply chains, and many businesses have struggled. So many factors impacted the flow of goods – sickness in the labor force, fuel shortages for vehicles, lack of ISO containers, and delivery disruptions from Asian factories. Global supply chains are still to this day recovering from the Evergreen grounding in the Suez Canal. Many American firms are now onshoring production, but trans-ocean shipping will not stop. The U.S. government’s Infrastructure Bill shows their commitment to improving port infrastructure and addressing these factors. “We are already recognized as the market standard for our high-resolution inspection sonar,” says Aziah North, one of Kongsberg’s Civil Engineers. “What’s super exciting is we now have systems for permanent, real-time monitoring of scour and bottom changes. This is valuable for monitoring of critical infrastructure that is exposed to violent weather conditions or collision damage. We can network together

sonar data to a central operations room and give port operations real-time situation awareness of their critical assets below the waterline.” One emerging area that will change port operations is autonomous vessels. On one hand, with fewer people entering the workforce as mariners, autonomous vessels make sense to close the labor gap. On the other hand, several safety issues need to be resolved, including collision regulations and situational awareness with sensor fusion. Like aerial drone operations, the situation is evolving as companies experiment with small-scale projects and negotiate solutions with regulators and maritime authorities. Kongsberg has already delivered a fully electric powered autonomous vessel in Norway, the Yara Birkeland, that operates on a limited commercial route. Kongsberg already plays an active role in the development of smart ports. Port authorities should prepare to incorporate autonomous vessels as confidence grows with a track record of safe operations over time. Another of Kongsberg’s strengths is in marine robotics. Kongsberg is wellknown for its HUGIN autonomous underwater vehicles, which are widely used in deep sea oil and gas exploration, mineral exploration, and environmental studies. But how many robots star in their own feature film? Kongsberg’s Eelume robot is an autonomous vehicle with six degrees of freedom, and it appears in The North Sea, which should be released in North America in 2022. Both vehicles do have a maritime security capability, and in today’s world, it’s widely recognized that safe civil operations depend on robust maritime security. “Kongsberg Maritime looks forward to being an active participant in APP and helping its members deal with these challenges,” Mech says. “I look forward to working with Jane McIvor and the APP, because we have a lot to offer.” For more information about Kongsberg’s services, visit www.kongsberg.com February 2022 — PACIFIC PORTS — 27

PORT MODERNIZATION

Port of Alaska receives favorable ruling on MARAD lawsuit

he legal dispute between the Municipality of Anchorage and the U.S. Maritime Administration over the Port of Alaska’s Expansion Project has finally been settled. While the decision was seven years in the making, the actual story started 19 years earlier. It’s a complicated saga involving many players with many of the original actors no longer in their positions and, indeed, some of the companies no longer in existence. But the perseverance of the Port, Municipal and State legislators is commendable and worth telling.

Background

The root of the issue starts back in 2003 when a Memorandum of Understanding was signed between the U.S. Maritime Administration (MARAD) and the Municipality of Anchorage outlining roles and responsibilities for the Port of Anchorage (later renamed to the Port of Alaska) Intermodal Expansion Project. According to the MOU, MARAD was responsible for “the development and application of purchasing provisions that maximize the use of local firms for subcontracted activities during port expansion.” In the same MOU, MARAD announced that Koniag Services Inc. would be the prime contractor for project activities, through its subsidiary Integrated Concepts and Research Corp. (ICRC). ICRC was later sold to VSE Corp., a Defense Department contracting company, and it retained the MARAD management contract for the project. ICRC is no longer in business. Prior to the signing of the MOU, PND — a local design and engineering firm — had drafted a concept plan in 2002, providing a catalyst for dedicated funds to be secured — contributions came from the municipality ($5.8

28 — PACIFIC PORTS — February 2022

It’s a complicated saga involving many players with many of the original actors no longer in their positions and, indeed, some of the companies no longer in existence. million), the federal government ($12.3 million), and the Port ($3.9 million). By 2004, a final design for rail improvements was approved and by the end of 2005, roughly 9,500 feet of track for railcar storage had been installed and the total amount allocated to the project had now risen to $80.9 million. During that same year, MARAD chose PND’s “Open Cell Sheet Pile” concept (OCSP) as the preferred design for dock construction and during the summer of 2006, a dike of roughly 100,000 cubic yards of rock was constructed, allowing for backfill of the area behind the dike that was once a tidal mudflat to become usable port property. Over the next two years, an additional $58.2 million was added to the project and work such as the construction of a five-mile long-haul road was completed. When it came to port infrastructure, studies showed that soil around the port was vulnerable to landslides and tidal erosion and, in 2007, approximately 24,000 tons of armor rock was placed in front of the eventual dock.

So far so good…

No problems so far…however, that was soon to change. At the start of 2008, project manager ICRC awarded the contract for dock construction and sheet pile installation (to act as a rigid structure against the port’s soil) to Anchorage-based QAP. The contract award was disputed by Alaska Interstate Construction and West Construction who charged that the QAP bid lacked understanding of the extent of the required. Around the

same time, MARAD rehired ICRC as the construction manager on a yearto-year basis (they had become ineligible for the contract when Koniag sold the company and they lost the “local-source” criteria in 2007). In 2009, when problems with sheet pile installation began to manifest themselves, construction stopped. ICRC dropped the QAP team and hired West Construction to attempt to analyze the problems with the installation of the sheet pile. In March 2011, the Municipality of Anchorage filed a lawsuit against ICRC, PND and VECO (who had conducted a stability analysis of PND’s sheet pile to be used). The suit alleged construction and design negligence during multiple stages of the project. The suit was based on a subsequent study, commissioned by the U.S. Army Corps of Engineers, and conducted by CH2M Hill (which, by now, owned VECO) which concluded that damaged and defective sheet piling in three of the four newly constructed sections of the dock do not meet normal operational requirements. Arguments for and against the merits of the case were presented over the next two years. PND stood by their recommendation for using its sheet pile design and countered that those failures at the Port “were the result of inexperienced contractors and managers and were not related to the design of the facility.” The suit against seven contractors in total was settled in 2017 for a total of $19.3 million.

PORT MODERNIZATION MARAD’s role

As part of the 2011 lawsuit, the argument was made that contracts were made with MARAD and not the municipality and therefore, the suit could not go forward without MARAD’s involvement. Despite being advised that the chances of winning a suit against the federal agency was slim, the Municipality launched its case against MARAD in 2014. While MARAD argued that the 2003 MOU, and a subsequent MOU signed in 2011, were largely ceremonial in nature, attorneys for the Municipality argued that the expenditure of administrative costs by MARAD supported their assertion that the municipality “hired” MARAD to oversee the project and therefore is liable for the work that went wrong. MARAD had spent roughly $14 million of the Municipality of Anchorage and State of Alaska money spent on non-construction project costs such as legal fees, audits, salaries, and contract claims. This was out of a total of $163 million transferred to the agency for the project. U.S. Court of Federal Claims Judge Edward J. Damich rejected MARAD’S argument and concluded that the MOUs were “binding and valid contracts”. He pointed to MARAD’s expenditures that had been paid with city and state money “clearly fall within the guise of administrative expenses”. According to accounting records submitted by government attorneys, MARAD used approximately $9 million of state and port money fund a settlement with ICRC, the prime contractor on the project, in October 2012 as part of an $11.3 million settlement and another $1.6 million of non-federal project funding in a $4.1 million January 2017 settlement. Municipal attorneys allege those settlements were deliberately made without the city’s knowledge, which MARAD’s lawyers didn’t dispute.

With the essential issue ... resolved, the remaining question of the amount of the award will take a little longer. September 2021 issue Pacific Ports Magazine, Port Director Steve Ribuffo is moving ahead with the Port’s five-phase plan with Phase 1, the Petroleum/Cement Terminal essentially complete and Phase 2 — stabilization of the north extension and construction of replacement cargo docks — is currently focused on permitting and design. “From our perspective, nothing changes,” said Ribuffo. “We are still working with local and state regulators on securing the permitting and funding for the Modernization Program. The award would certainly help in this area but we’re hopeful we’ll be able to secure other sources of federal funds, including through the $1.2 trillion infrastructure bill recently passed by Congress.” And good relations between the Port and MARAD are still intact, as evidenced by MARAD’s contribution of $20 million toward the Petroleum/Cement Terminal awarded through its Port Infrastructure Development Program (PIDP).

Where to now

With the essential issue of MARAD’s responsibility in enforcing its contractual duties resolved, the remaining question of the amount of the award will take a little longer. While the Municipality sued for $367 million, there are doubts within legal circles whether the full amount will be awarded. Assistant Municipal Attorney Robert Owens, for example, told the Alaska Journal that while he doesn’t expect the ruling to be appealed, city officials aren’t assuming there will be any money that will come out of it. The court established MARAD breached its contract but did not discuss the merits of damages, according to Owens. Anchorage Assembly member Christopher Constant was quoted it the same article that he was “skeptical”: “It is a great thing that the court has ruled that the federal government misdirected this project and not the muni, but the cynics say it’s going to take as long as it did to get this decision — whatever it was — seven years or something,” he said. Despite the uncertainty, work continues on the now Port of Alaska Modernization Program. As reported in the

The Port of Alaska’s Modernization Program is currently at the design and permitting stage of Phase 2. February 2022 — PACIFIC PORTS — 29

VESSEL ARRIVAL SYSTEM Avoiding the race to wait

When will dry bulk shipping adopt virtual arrival? By Trevor Heaver, Professor Emeritus, University of British Columbia

hipping needs to adopt innovative practices to reduce CO2 and other emissions, to reduce the environmental costs of anchorage in ports, and to realise cost savings. They can all be achieved by avoiding the race to wait, that is, sailing at speeds that result in unnecessary time at anchor. The case for the benefits to be realised by the adoption of the virtual arrival clause in charter parties has been around for a decade. Yet its adoption is minimal in spite of its promotion by BIMCO and the increased attention to port call optimisation. Consideration of two examples of slow steaming to ports in quite different trades provides some insights. The grounding of the Pasha Bulker on Nobby’s Beach, Newcastle, Australia, in 2007, made evident the potential for a major pollution event from the many ships anchored off-shore. It energised political, corporate and public interests to drive change. The result was the innovative Vessel Arrival System (VAS) for coal vessels coming to Newcastle. It

The case for the benefits to be realised by the adoption of the virtual arrival clause in charter parties has been around for a decade. Yet its adoption is minimal... has enabled vessels to slow steam with the benefit of reduced fuel consumption, yielding corporate cost savings and environmental benefits. It does not prevent the anchorage of ships when the inland logistics system runs into problems. VAS was made practical through the responsibility of the port authority for safe navigation and the interest of all parties in change. A current example of crisis and innovation is in the ports of Los Angeles and Long Beach. There, port congestion and supply chain delays have resulted in great pressure for change but amplified, perhaps, by the oil spill off famous Huntington Beach. This was from an oil pipeline which may have been damaged by an anchor dragging against its structure months previously. As a result,

Vessel Arrival Systems can assist in addressing congestion and supply chain disruptions as well as air pollution from vessels at anchor (above, the Port of Long Beach). 30 — PACIFIC PORTS — February 2022

political, corporate, and public interests see the necessity of reducing these hazards and the air pollution associated with excessive anchorage while avoiding the inefficiency of vessels speeding to get into an anchorage queue. The new innovative queuing system is built on four fundamental elements. First, all lines, terminals and the Pacific Maritime Association (PMA), which is responsible for the allocation of labour to terminals, agreed to participate. Second, an Industry Working Group developed a Safety and Air Quality Area into which, eventually, only 25 - 35 container vessels will be allowed to anchor and only when they have a berthing assignment in the reasonable future (defined as 72 hours). Otherwise, they will have to loiter at sea. Third, an administrative structure is provided by combining the port information capabilities of the Marine Exchange of Southern California and the sea traffic management capability of the Marine Exchange of Alaska to form the Pacific Maritime Monitoring Services (PacMMS). PacMMS uses sea traffic management capabilities to track the position of ships registered in the system. Fourth, container ships have an incentive to participate in PacMMS as by doing so they are placed in line for labour with PMA. As a consequence, instead of container vessels sailing across the Pacific at speeds reflecting their interest in anchoring early, they may slow steam as they

VESSEL ARRIVAL SYSTEM are now placed in an anchorage queue dependent on their estimated actual time of arrival (ACT), as they are tracked by PacMMS. The operating schedule for ships remains dependent on the berthing time provided by their terminals. The common features of these examples are the use of AIS-based technology to monitor and predict the position of vessels, the existence of the administrative structure of PacMMS and the focussed acceptance of the need to avoid the race to anchor because of a crisis. What can be learned from these examples of slow steaming relevant to applications of the virtual arrival clause? First, AIS data provides the base by which vessel tracking and monitoring can be done with or without the services of one of the many companies now

offering sea traffic management services. Technology is not an obstacle. Second, the adoption of the virtual arrival clause is a contract specific undertaking which, dependent on the terms of shipment, involves either two or three parties: under FOB terms, three parties at the loading port, two at the discharge port; vice versa under C&F terms. The contract structure allows terms to be tailored to the specific needs of the parties but it has the disadvantage that there is not a community collective energy for change. Nor is there a port authority breathing down the neck of companies. The third feature is missing! There is no immediate crisis; just the creeping calamity for humanity of climate change. Of course, the time may come

when a ship on the beach or some other calamity may cause change in a specific trade. Otherwise, it remains for the attention of shippers and ship owners to turn to the low hanging fruit, modest though it may be, to reduce the risks associated with anchorage, to respond to the need to cut emissions and to realise cost savings. Publications by BIMCO and by the IMO seem to be of no avail. Notable is the Just In Time Arrival Guide that was developed by the Global Industry Alliance to Support Low Carbon Shipping. Does it really take crises to move the world’s major bulk ship owners and shippers to adopt the virtual arrival clause widely? This seems to be the case judging by lack of interest of companies in the bulk trades.

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

ASSOCIATION OF

PACIFIC PORTS February 2022 — PACIFIC PORTS — 31

MARINE HIGHWAYS

Bright future for U.S. Marine Highway System By Gordon Feller

xperts are debating the likely impacts on Pacific cargo flows of President Biden’s Bipartisan Infrastructure Law, known officially as “The Infrastructure Investment and Jobs Act” (IIJA). One part of the IIJA aims to ensure a better future for the U.S. Marine Highway System. The new law’s budget of $1.2 trillion is certainly a big one, and it’s almost certainly going to benefit the U.S. Marine Highway System. The U.S. Department of Transportation’s Maritime Administration’s (MARAD) Marine Highway system includes 28 Marine Highway routes. Each one serves as an extension to the surface transportation system. Each route is designated by the Secretary of Transportation, and each one offers relief from landside corridors suffering from traffic congestion, excessive air emissions, or other environmental challenges.

32 — PACIFIC PORTS — February 2022

“America’s Marine Highway Program is an innovative program that encourages the use of America’s navigable waterways...” Acting Maritime Administrator Lucinda Lessley explained that “America’s Marine Highway Program is an innovative program that encourages the use of America’s navigable waterways for the movement of freight as an alternative to land-based transportation.” MARAD recently awarded $12.6 million in grants to nine marine highway projects across the Nation under the America’s Marine Highway Program (AMHP). The funding will help address supply chain disruptions, enhance the movement of goods along our navigable waterways, and expand existing waterborne freight services.

Noting the importance of such funding, U.S. Secretary of Transportation Pete Buttigieg stated, “The investments through the America’s Marine Highway Program will help us move more goods, more quickly and more efficiently. In this moment of record demand for goods and shipping, this is an important piece of the Administration’s Port Action Plan to strengthen supply chains, modernize port operations, and lower the cost of goods for American families.” Since its inception, the AMHP has designated 52 Marine Highway Projects, bolstering jobs and local economies across the nation. Since 2016,

MARINE HIGHWAYS MARAD has received $51.6 million in funding for grants under the AMHP, and a total of 44 grants have been awarded to 25 eligible marine highway projects. In addition to relieving landside congestion, these grants further improve transportation system resiliency by providing marine transportation alternatives during times of disaster or national emergency. In addition to the recently announced Marine Highway grants, the Bipartisan Infrastructure Law provides an additional $25 million to support marine highway projects and to increase the use of our Nation’s waterways. The funding in the Bipartisan Infrastructure Law for the Port Infrastructure Development Program is roughly the same amount that has been invested in port infrastructure in total from all DOTadministered grant programs since federal investments in ports began. The primary goal for MARAD’s Marine Highway Program is to expand the use of America’s navigable waters. To accomplish this goal MARAD works with public and private organizations to develop and expand marine highway service options and facilitate their further integration into the current U.S. surface transportation system, especially where water-based transport is the most efficient, effective, and sustainable option.

What will happen on the Pacific coast sections of the AMHP?

Alaska’s U.S. Senator, Lisa Murkowski (R), served as a core member of the bipartisan senatorial group who negotiated the bill. As a result, the language of the final legislation — as signed by the President — includes multiple projects meant to benefit her state’s ferry system. For example, a sum of $250 million was set aside for a pilot program to develop an electric or low-emitting ferry. This portion of the bill does not mention Alaska, by name. But the fact is that, as the one state with the most marine highway miles, it is guaranteed to be a

West Coast Marine Highways The M-5, on the West Coast, is the longest of these four routes. There are several distinct parts of the M-5 system.

The M-5 located in California, Oregon, and Washington • Distance: Approximately 1,300 miles • Waterways: Pacific Ocean coastal waters, connecting commercial navigation channels, ports, and harbors from San Diego, CA to the U.S.-Canada border north of Seattle, WA • Alternative Landside Route: Interstate-5 • States: California, Oregon, and Washington • Connections M-84 at Astoria, OR; M-580 at Oakland, CA • Key projects: - Everett Port Puget Sound Container-on- Barge Service - Seattle-Bainbridge Island Ferry Service

The M-5 located in Alaska • Distance: Approximately 2,500 miles • Waterways: Includes the Pacific Ocean coastal waters, including the Inside Passage, connecting commercial navigation channels, ports, and harbors from Puget Sound to Unalaska in the Aleutian Islands of Alaska. • Alternative Landside Route: ALCAN Highway and Richardson Highway • States: Alaska, U.S., and British Columbia, Canada • Connections: M-A1 Crossing near Anchorage, AK, and the M-5 at the Canadian border north of Bellingham, WA

The M-A1 located in Alaska • Distance: Approximately 150 miles • Waterways: Includes the Upper Cook Inlet, the Matanuska and Susitna Rivers and connecting commercial navigation channels, ports, and harbors • Alternative Landside Route: Route A-1 • States: Alaska

The M-580 located in California • Distance: Approximately 90 miles • Waterways: Includes the San Joaquin River, Sacramento River, and connecting commercial navigation channels, ports, and harbors in Central California from Sacramento, CA, to Oakland, CA. • Alternative Landside Route: Interstate-580 • States: California • Connections: M-5 at Oakland, CA • Project: Green Trade Corridor Service

The M-84 located in Oregon, Washington, and Idaho • Distance: Approximately 440 miles • Waterways: Includes the Columbia, Willamette, and Snake Rivers, connecting commercial navigation channels, ports, and harbors. • Alternative Landside Route: Interstate-84 • States: Oregon, Washington, and Idaho • Connections: M-5 at Astoria, OR • Project: Port of Morrow Barge Service Extension

February 2022 — PACIFIC PORTS — 33

MARINE HIGHWAYS

MARAD’s Gus Hein, Gateway Director, Mid-Pacific Region (center) and Travis Black, Team Lead, Port Development and Intermodal Planning, Office of Ports and Waterways Planning (second from right) present the Certificate of Designation for the newest Marine Highway to Port of Guam representatives (left to right): Rory Respicio (General Manager), Nathan Taimanglo (Vice Chairman, PAG Board), and Jose Javellana (Chief Planner) at the APP Conference in October 2021. site for such an initiative. The Alaska Marine Highway System — which encompasses the ferries that help connect much of the state — also stands to benefit. A $1 billion program in the bill would construct a ferry system to reach rural communities, and a provision would funnel federal highway dollars toward operating and repairing the service. The four coastal marine highway routes are the M- 5 on the West Coast; the M-10 along the Gulf Coast; the M-95 on the East Coast; the M-90 through the St. Lawrence Seaway and Great Lakes. M-55 is the north-south route through the U.S. Midwest, running the length of the Mississippi and Illinois Rivers, connecting New Orleans to Chicago. Cary Davis is the VP of Government Relations & General Counsel at the American Association of Port Authorities. He argues that America’s Marine Highways are “still the safest, cleanest, most efficient way to move cargo - it’s a no-brainer why the Federal 34 — PACIFIC PORTS — February 2022

Government should increase its investments in its transport waterways”. Davis, and the AAPA, consider it to be “a no-brainer to invest in a transport waterway system that takes 70 trucks off the road for every barge and yields 200-300% return in economic activity for every dollar invested”. Some recent moves by the Federal Government made progress and will even induce the states to focus on the Marine Highway. Davis listed three of them in a recent discussion with us: *First, the recent round of Marine Highways grants shows the government understands the power of getting cargo off congested roadways. *Second, the expansion of Marine Highway designations – meaning who is eligible for Federal funds – will benefit lesser-served areas like Guam, Oregon, and Alaska. *Third, the recent Bipartisan Infrastructure Law included multiple provisions that elevate the importance of Marine Highway-adjacent projects. Davis says “this has flown under the

radar. States will now be required to include multimodal marine projects in their transportation plans; marine intermodal projects are now eligible for more competitive grant funds at USDOT; and Marine Highway projects are now eligible for Highway Trust Fund monies as long as they are connected to the Federal Highway System”. USDOT Secretary Buttigieg has explicitly said Marine Highways are part of Federal planning, so ports and their partners will hold him to that great promise. For an expert perspective we consulted Dale Sause, President of Sause Brothers Towing, since he possesses a wealth of knowledge and experience in vessel operations. Assessing the current state of the U.S. marine highways system, Sause says that, “in general, the U.S. Marine Highway system is strong and healthy. Consider the over $2 billion spent over the past decade by Tote, Crowley, Matson, and Pasha Hawaii. There have been 10 new ships built — of which eight are in operation, and two are in sea-trials — soon to be operational. Tote built two Marlin class ships starting in 2013. Crowley built two Commitment Class vessels. Matson built two Kanaloha class and two Aloha class vessels. These eight are fully operational, with four working to Puerto Rico and four sailing to Hawaii. The two Pasha vessels are on sea-trails in Texas and should be sailing soon to go into Hawaii service. Sause added: “These state-of-the art, hydrodynamic, fuel-efficient ships incorporate many green technologies. They also clearly demonstrate the U.S. maritime operators’ commitment to their customers, to sustainability and to our environment. This commitment is further advanced by the work of the Blue Sky Maritime Coalition.” Sause thinks that investments are needed if the U.S. is to achieve a ‘preferred future’ for the marine highways system: “U.S. marine highway operators will need to continue making

MARINE HIGHWAYS significant investments in vessels which incorporate “green” technology. These vessels will require propulsion systems fueled by a variety of new fuel, such as renewable diesel, methanol, ammonia, hydrogen, and hydrogen fuel cells. Ports will need to continue modernization which will include electrification, improving rail and truck access corridors, and providing space for the fuels of the future. The government will need to focus on infrastructure, harbor maintenance, dredging and our aging locks, dams, and bridges. We will also need major investments in education and training for our future workforce.” In pursuit of that ‘preferred future’, Sause says that “we, as a nation, have over the past several decades underfunded maintenance/improvement of our waterway infrastructure. In my opinion, the U.S. Army Corps process — starting with Project Approval/ Authorization and continuing through to completion - should be reviewed, and improved. The goal being to streamline, guarantee funding, and assure timely project completion”. In pursuit of that ‘preferred future’, what should the Federal government be doing differently, whether director or indirectly (such as with, and for, the U.S. state governments or port authorities)? Sause thinks that “the Federal government should provide funding with limited oversight and let States and port authorities manage many of these infrastructure projects.”

Looking backwards: The project led by the Ports of Oakland and Stockton

The M-580 Green Trade Corridor container-on-barge service was initiated by the Ports of Stockton, Oakland, and West Sacramento. The program was managed and operated by Savage Services. The route moved containerized cargo between the Ports of Stockton and West Sacramento, and terminals at the Port of Oakland, specifically the Port of America Outer Harbor Terminal

and Oakland International Container Terminal. The average transit time for a voyage between the Port of Oakland and the Port of Stockton was approximately 9.5 hours. There were four primary project stakeholders: • Port of Oakland • Port of Stockton • Port of Sacramento • Savage Services The primary goal was to introduce a barge service between Oakland and the inland Port of Stockton that could improve mobility, reduce congestion and emissions, create system redundancy/resiliency, allow for non-standard and heavier loads, create jobs, and spur the economy. The project started operations in May 2013 as a pilot project. It was discontinued after a year due to lack of cargo availability and high operations cost. The operational cost for barge was about $1,200 compared to $600-$700 for truck. This cost overrun was due to $20,000 berthing cost for the barge. The weight limit on California highways does not allow movement of overweight containers on road. The loads must be split into multiple containers to fall under the weight limits. The Green trade corridor service can capture that cargo as barges can handle overweight containers and savings in shipping cost. The project will need specialized container barge, container cranes at the Ports of Stockton and West Sacramento, construction of container staging area at Port of Stockton, transloading facility

at the Port of West Sacramento, and installation of electrical connections at Port of Oakland for cold ironing. While operational, the service provided 116 barge trips, moving 7,259 containers, and eliminating approximately 24,629 truck trips. The green trade corridor service transported more than 7,000 containers and eliminated about 24,000 truck trips from I-580 making highway safer. The service reduced air emissions by 80 percent, which included elimination of about 6,000 tons of greenhouse gas emissions. Freedom from weight limits allowed for more cargo to be stuffed in containers, which provides cost savings in terms of shipping cost. The pilot program also created about 45 maritime jobs. The M-580 marine highway project was a $69.3-million public-private partnership that received federal funding through the following sources: In February 2010, the Ports of Oakland, Stockton, and West Sacramento received a $30-million TIGER grant to upgrade port facilities and purchase the relevant equipment to transfer cargo. Service along the M-580 started on May 16, 2013 to carry import and export cargo, specifically agricultural products, and consumer goods, between the three ports. Initially, the service ran once a week until August 2014 when it was transitioned into an ‘as needed’ service due to poor demand. After over a year of operation, the service was essentially discontinued.

Gordon Feller has worked for more than four decades at the intersection of global trade and technology innovation. Upon arriving in Silicon Valley in 1983 he began work, from inside the executive suite, to develop ambitious projects aimed at solving some of the world’s most complex problems. Current and past clients include World Bank, IHS Markit, World Economic Forum, Ford Motor Co. Toyota, The Financial Times of London, The Economist Group, Apple, The Rockefeller Foundation, numerous national governments (Germany, Canada, US), Reuters, and many others. From 2010 to 2017, he served as Director at Cisco Systems HQ. He founded Meeting of the Minds in the 1990s, stitching together a global leadership network which is enabling the adoption of new policies and systems. Gordon was appointed by the Obama/Biden White House to serve on the US Federal Comm. established by The US Congress. He currently serves as a Global Fellow at the Smithsonian Institution. Gordon sits on numerous corporate and non-profit boards. His first published article appeared in a journal published by the World Policy Institute (NYC) in 1979. Since then he’s published 450+ magazine articles. (Twitter: @GordonFeller) February 2022 — PACIFIC PORTS — 35

CYBERSECURITY

CyberForza Cyber Defense Platform provides a robust solution for port and ship cybersecurity

oting the 2019 United States Coast Guard Marine Safety Information Bulletin, ports and ships are direct targets for cyberattacks. That Bulletin specifically warned commercial vessels about targeted cyberattacks where malicious actors, using email addresses that appeared to be from a Port State Control authority, sought sensitive information such as crew member’s name, personally identifiable information (PII) and protected health information (PHI), many times under the guise of COVID-19 management. Ports and ships in the maritime industry are vital points in the global supply chain for food, medicine, consumer goods, fuel and many other products. Supply chain cyberattacks jumped over 300 percent in 2021. That’s why maritime security is key for supply chain security. Cybersecurity threats can occur at multiple places, including ports, communications systems and ships themselves as shown in Figure 1. The CyberForza Cloud AI Cyber Defense Platform is a part of NEC Corporation of America’s 360-degree approach to port security (refer to NEC’s advertisement on Page 8 for additional information). Ports and ships comprise heterogeneous, complex, and often legacy systems.

The CyberForza Cloud AI Cyber Defense Platform is a part of NEC Corporation of America’s 360-degree approach to port security... Maritime systems are in a constant state of evolution. Assets are highly interconnected, including both stationary (e.g., land-based) and mobile (e.g., shipboard) infrastructures, and, in many cases, remain in almost constant use. Both fixed and mobile infrastructures are interdependent and interlaced. At their core, they are driven by processes and tools such as data flows, OT (operational technology) systems, OT end devices, ICT (information communication technologies) systems, ICT end devices, cloud infrastructures, networked nodes, communication systems, and safety and security systems. This profusion of systems and components ranges from generic IT and OT devices. Most common cyberattacks on ports and ships are ransomware, phishing, malware, social engineering, brute force, denial of service, ransomware, and other advanced attacks. Out of all these potential cyberattack vectors in terms of vulnerability, volume of exploitation, damage and consequence for the ships are shown on Figure 2.

Figure 1 — Cybersecurity threats for ports, communication systems, and ships 36 — PACIFIC PORTS — February 2022

All ships have complex control systems, communication systems, networks connecting internal systems and outside cloud/satellite network communications. Hackers target easy access to the ship attack surface controls. That leads to significant data breach and taking control of the ship and huge damage done through certain cyberattacks. An example of a cyberattack real live use case follows.

CyberForza analyzed customer real-world cyberattack for ships and ports use case:

CyberForza Eagle Zero Trust Compliant Cloud AI Cyber Defense Platform addresses each step of the hacker lateral movements and provides visibility to ships and ports for cyber resiliency. The Eagle Cyber Defense platform provides external, internal, end point, and other IOT devices level security vulnerabilities on a real time basis. A cyber hacker can gain access to a port or ship’s systems a number of ways:

Figure 2 — Cyber vulnerability targets and cyberattack surface for the ship

CYBERSECURITY Cyber reconnaissance

Targeting a port/ship directly, hackers may first use public and unprotected sources, social media, or manufacturer data to gain information for vulnerabilities. The hacker identifies the weakest link to gain access to data flowing to and from a ship or port. The cyberattack can originate from external, internal or connected devices within the ship or port.

Cyberattack delivery

Cybercriminals attempt to access the company or ship systems and data and deliver malware or steal information. There are several ways in which this can happen via ship online services, websites, network connect, container tracking programs, emails with attached malware or links that can lead to sites with infectious malware.

Cyber breach

When the attacker enters the system and can tamper with data or steal information, it may not always be visible for several days. They can use honey pots or threat bombshells, which are timebound. The user might not notice for as long as three to six months as some techniques do not hinder the function of programs, but they may be transmitting sensitive data anyway. A data breach can occur and might only become known after the attacker already has full control. Once fully operational, the malware takes over the ship/port control system entirely with software of their own.

Cyber pivot

Once inside your network, cybercriminals will use that access to obtain data which can allow them to get into other systems. They may first choose to attack an area of the company or ship security that is lower and less critical but then can use that information to hack into more sensitive areas. Cybercriminals upload programs and applications that will help them with their next target in the ship/port system. They use tool sets to sense where

Figure 3 — Zero Trust 3600 Security Architecture for compliance implementation

Once inside your network, cybercriminals will use that access to obtain data which can allow them to get into other systems. the mission critical data is residing and install programs that allow them continued access to the ship/port to get data on a regular basis. Globally, all ports and ships are facing multiple cyberattacks, creating major industry challenges. There is no integrated product that covers port or ship multiple cyberattacks arising from external, internal, end points, and IOT devices. All ports and ships require an advanced AI Cyber Defense Platform for multi-threat detection on a realtime basis to prevent cyberattacks. A critical infrastructure security stack for ports and ships must address operating systems (OS), networks, applications, SCADA Control systems, and IOT devices vulnerabilities. CyberForza provides an integrated cyber defense platform for ports and ships to prevent multiple cyberattacks. CyberForza supports ports and ships with a 360-degree Security Architecture for the Zero Trust Compliance implementation as shown in Figure 3. Zero Trust Cyber Architecture covers all users, devices, and policies, whether in or outside the organization’s network, requiring all to be authenticated,

authorized, and continuously validated for security configuration and posture before being granted access to applications and data. Zero Trust assumes that there is no traditional network edge; networks can be local, in the cloud, or a combination/hybrid with resources anywhere. Workers in any location can also be identified. CyberForza provides a complete holistic view of all the “actionable insights” related to the vulnerabilities of ships and ports for security configurations, application, software code changes, command/ control system continuous monitoring for a real-time threat hunting with automated governance compliance provided. CyberForza provides coverage for cloud containers, dockers, micro services, and dev ops security. CyberForza’s comprehensive coverage includes application security testing, vulnerability management, compliance automation, and threat detection and response. The CyberForza Eagle Commander threat hunting module covers all aspects of mission critical cybersecurity hygiene building process for the ports and ships. CyberForza Eagle Cyber Defense Platform complies with February 2022 — PACIFIC PORTS — 37

CYBERSECURITY Cyber Defense provides for multi-threat protection for ships and ports. • Single sign-on, multi-factor authentication, one-time password, dynamic identity access management controls. CyberForza/NEC brings together facial recognition for the smart sea workspace. • Integrated threat management (SIEM, SOC & SOAR Integrated) provides real-time managed detection response (MDR) with an end-point detection response (EDR) system Figure 4 — CyberForza Zero Trust Compliance Architecture unique differentiators NIST 800-53/FedRAMP, NIST-80052, NIST 800-171, NIST CSF, ISO27001, PCI-DSS, HIPPA, SOC-2 & 3, SOX, GDPR, and ITG Standards. Presidential Executive Order compliance for ports and ships supported is shown in the table shown below. The Eagle Integrated Cloud AI Cyber Defense Platform Architecture unique differentiation is illustrated in Figure 5. Eagle Integrated Cyber Defense Platform modules are interoperable with a port or ship’s existing cyber legacy infrastructure. CyberForza provides a complete security gap analysis to be

able to identify vulnerabilities, risk mitigation, cybersecurity hygiene plan, cyber operating procedures, and cyber awareness for staff development. The Eagle Cyber Defense Platform defends from external threats, internal threats, end point threats, SCADA, ICT threats and complete vulnerabilities and risk management for ships and ports as noted in Figure 4.

Eagle Cloud AI Cyber Defense Platform value proposition

As part of the NEC suite of security products, Zero Trust Compliance

• Gain real-time visibility and secure your business-critical applications through CyberForza Zero Trust Integrated Cyber Defense Platform • Unified vulnerability management and risk management for ships and ports

Customer benefits of using Eagle Cyber Defense Platform: • Tight integration with NEC’s physical port security protection suite (see article in the September 2021 issue of Pacific Ports Magazine, Page 40) • No capital equipment purchase expense (CAPEX) • Security software as service (SaaS) business model • Operational expenses (OPEX) reduced by 20 percent • Security operational efficiency increased by 35 percent • Interoperates with legacy platforms in parallel to protect a customer’s cyber investment, including easy upgrades for Cloud migration • Return on investment is less than two months (one data breach can cost an average of over $5 million) By Dr. Venkat Rayapati, Founder, Chairman, & CEO, CyberForza Inc. — Dr. Rayapati holds a Doctoral degree in Electrical and Computer Engineering from University of Montreal, Canada and has published about 35 papers in various reputable International Journals and Conferences. For more information, visit: www.necam.com/IntelligentSecurity

38 — PACIFIC PORTS — February 2022

SALVAGE OPERATIONS

Port of Nanaimo and partners live up to reputation as “Solutions Port”

hen the MV Zim Kingston, a 14-year-old, 4,253-TEU container ship, ran into stormy weather off the coast of Vancouver Island in late October 2021, little did the Port of Nanaimo (NPA) realize it would lead to yet another opportunity to live up to its reputation as the “Solutions Port”. Having lost over 100 containers with another 10 damaged by fire, the Zim Kingston was in dire need of a berthage that would provide a safe and secure base for salvage operations. Given the unique circumstances, NPA and its terminal operator, DP World, worked diligently to ensure all procedures were carried out in a professional and expedient manner.

Background

On October 22, enroute from China and destined for the Port of Vancouver, the MV Zim Kingston hit high winds and stormy waters 70 kilometres west of the

Having lost over 100 containers with another 10 damaged by fire, the Zim Kingston was in dire need of a berthage that would provide a safe and secure base... Juan de Fuca Strait. It lost 40 containers to the sea (this number was revised to an estimated 109 a few days later). Just over 12 hours later, as the ship made its way to an emergency anchorage eight kilometres offshore from Victoria, 10 additional containers caught fire. Two of those containers contained more than 52,000 kilograms of xanthates, which includes potassium amylxanthate, a “reactive flammable material” according to the Canadian Workplace Hazardous Materials Information System. The crew of 16 were evacuated while the captain and four officers remained onboard to assist in firefighting efforts. The CFAV Firebrand, a fire-class tug in the Royal Canadian Navy, was the

The Zim Kingston berthed at Duke Point Terminal, Nanaimo, B.C.

first vessel to reach the Zim Kingston, followed by the Seaspan Raven, then Maersk’s offshore tugs, the Tender and Trader arrived, and finally the Atlantic Eagle and Atlantic Raven. The Resolve, an Alaskan salvage vessel, was hired to ensure the Zim Kingston remained stable while at anchor. The fire took one week to extinguish. It remained anchored off Constance Bank near Victoria until early December.

Port of Nanaimo steps up

When the Zim Kingston reached out to NPA to see if they were able to help, it didn’t take long for the NPA to come up with a solution. According to NPA

Photo credit: Nik West

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SALVAGE OPERATIONS “Together with DP World, our partner in Duke Point Terminal, we were able to demonstrate not only how flexible the Port can be in providing solutions, but also how our existing capabilities can meet any need.” Vice President of Marine Operations and Harbour Master, Captain Satinder Singh, the port “lived up to our reputation of being the solutions Port.” Singh went on to say that “In terms of process, Zim Kingston reached out to NPA for guidance and requirements from NPA to proceed within our jurisdiction for salvage operations. As a Harbour Master, I represented NPA in the initial unified command discussions pertaining to documentation on safety, security, and environmental protection. The ship was held to a very high level of scrutiny and safety protocols, which included regulatory requirements. Once NPA was satisfied with the protocols that would be in place, the vessel was permitted to conduct salvage operations at Duke Point.” To prepare for her arrival, DP World Nanaimo got to work setting up the landside of operations. “DP World Nanaimo is a multi-purpose facility and has a full range of cargo handling equipment,” said DP World. “We worked collaboratively to bring all the stakeholders and partners together to prepare for the operation. Specialized equipment for this specific operation and dealing with damaged containers was brought in by the marine salvage company. In addition, DP World brought in extra office space, generators, lighting, bathrooms and fencing.” As for stakeholders and partners, there were many. From labour organizations and government regulators to P&I clubs and marine salvage operators, not to mention the community who came together to assist with accommodating workers, “there was a genuine effort from everyone involved to collaborate and work as a team,” said Ian Marr, CEO, Nanaimo Port Authority. 40 — PACIFIC PORTS — February 2022

“Together with DP World, our partner in Duke Point Terminal, we were able to demonstrate not only how flexible the Port can be in providing solutions, but also how our existing capabilities can meet any need.” With protocols, agreements, and safeguards in place — including temporary permitting from Canada Border Services to facilitate the operation — the ship settled into berth on December 11. There was a clearly identified command structure depending on what operations were underway to ensure a safe and efficient operation. The ship owners worked with the insurance companies (P&I Clubs). The P&I Clubs worked with their lawyers to appoint contractors to manage through every stage of the project. There was a marine salvage company for the shipside and an environmental company for the landside. In addition to Canada Border Services Agency, Transport Canada (Transport Safety) and the Canadian Coast Guard were also involved. “In my perspective, the entire process ran very efficiently in terms of the time it took to complete the operation,” said Singh. “The disposal process was administered with a high level of diligence in terms of safety protocols, including regulatory requirements.” Labour for this operation was a collaboration between all parties, including the marine salvage company, the environmental company, the ILWU 514, 508 and DP World. Highly trained individuals in marine salvage operations were needed. In addition, the Nanaimo team included eight DP World staff, as well as ILWU 514 foremen and ILWU 508 longshoremen to work the shifts required. Additional support was provided by DP World.

“We want to thank everyone who was involved in the project,” said DP World (Canada) Inc. “They worked through some of the worst winter conditions the island has experienced in a very long time to successfully complete this operation. Special thanks to the ILWU locals 514 and 508, as well as the Port of Nanaimo for all their support and guidance.” As noted above, NPA required temporary permitting from CBSA to be able to offload the damaged containers. “We’re not presently equipped to accept international container imports,” said NPA’s Marr. “We couldn’t offload all of the full, intact containers without a CBSA sufferance warehouse certificate so that’s something we’re addressing as we move forward.” He added that CBSA, DP World Nanaimo and the Port were working together to facilitate this through the Duke Point terminals expansion. Having a CBSA presence in Nanaimo would not only add to Vancouver Island’s capabilities but would also help ease congestion in the Lower Mainland. “We’re only 30 kilometres from Vancouver and can add significant capacity,” Marr said, noting that Nanaimo’s Vehicle Processing Centre was established to support the West Coast auto industry and the lack of available property in the Lower Mainland. “NPA plays a crucial role in the supply chain efficiency and movement of goods in Western Canada and is able to offer sheltered anchorages for stable and safe anchoring, a high level of safety, security, and environmental stewardship with strict adherence to regulatory requirements, and a leadership team that is focused on providing a safe and sustainable movement of goods and people.” Given the successful operations with the Zim Kingston and the positive feedback from ship operators, the Port have more than proven their capabilities in providing solutions for the West Coast shipping industry. PP

APP CONFERENCE RECAP

Successful APP conference provides strong agenda, great networking

rom a Welcoming Reception with the Disney Wonder as a backdrop, to an opening message from the U.S. Secretary of Transportation, and on through to the last presentation with Matson’s John Lemieux providing an overview of the integral services they provide (especially to Pacific Island ports), the APP’s 107th Annual Conference in San Diego (October 24 to 27, 2021) gave attendees a full agenda focused on issues, challenges, and opportunities relevant to ports around the Pacific. As the fist conference in almost two years for the APP, networking events provided great opportunities for colleagues and peers to reconnect as well as build new relationships. As host port, the Port of San Diego did a fantastic job showcasing their working waterfront as well as highlighting their climate change resiliency efforts.

As the fist conference in almost two years for the APP, networking events provided great opportunities for colleagues to reconnect as well as build new relationships. The conference saw major support from the U.S. Maritime Administration. In addition to his presentation that provided an update on MARAD activities, Gus Hein, Gateway Director, Mid-Pacific Region, led a high-level panel of senior port representatives who addressed numerous issues for all sizes of ports (see page 23 of this issue of Pacific Ports Magazine). While all sessions scored very high on our exit survey, without a doubt, Keynote Speaker Don Krusel’s presentation on “Putting Strategy back into Strategic Planning” was a resounding success, scoring an “Excellent” from all respondents. Krusel’s time

as CEO of the Port of Prince Rupert as well as current projects that have included developing a major container terminal for the Port of Quebec gave attendees great insights into how to step outside of the typical planning cycle to create a dynamic future for their own ports. APP President Kimberlyn KingHinds did a masterful job as emcee and keeping sessions on track. A contingency of representatives from the Commonwealth Ports Authority were in attendance to gain insights into conference proceedings as the Association begins planning for the next conference in Saipan in July 2022.

Thanks to all our APP Conference sponsors!

February 2022 — PACIFIC PORTS — 41

APP CONFERENCE RECAP And of course, the conference wouldn’t have been possible without the great support of our sponsors! Here are some of the highlights. While space won’t allow for a full summary of each presentation, readers are encouraged to visit www.pacificports. org where they’ll find video recordings and PowerPoint presentations (under APP News).

Networking and relationship building

While the APP has always had a strong focus on networking and relationship building at conferences, this year, extra effort to ensure attendees had lots of opportunity to reconnect or make new acquaintances paid off. It was easy to see how much Members had missed each other! The InterContinental Hotel’s Sunset Terrace provided the perfect setting – and with the Disney Wonder and San Diego Cruise Terminal and Harbor serving

42 — PACIFIC PORTS — February 2022

as a backdrop, Joe Stuyvesant, Port of San Diego’s President and CEO as well and Kimberlyn King-Hinds, APP’s President and Chair, Commonwealth Ports Authority, Northern Mariana Islands, welcomed guests and encouraged them to take advantage of their time while at the conference. “Listen closely to the information you’ll hear from our speakers and participate in the discussions that will follow each presentation,” said King-Hinds. “Engage with your colleagues and peers to hear of their own best practices and lessons learned. Build new relationships that can benefit your port. And last, but definitely not least, develop friendships that will live long beyond these few days together.” The B-to-B Speed Dating session — an original idea from APP’s Associate Member Sub-Committee — was organized much like a typical speed dating event. With port representatives seated at small cocktail tables, Associate

Members were given five minutes to make their “elevator pitch” before moving to the next table. This was especially appealing for new members who hadn’t yet had the opportunity to meet each other. Based on feedback from our postconference survey, this session was a definite hit and will be scheduled again at future conferences. Another hugely popular event was the San Diego Port Harbor Tour. Hosted by the Port of San Diego, conference attendees and their guests were treated to an afternoon aboard the California Princess. With expert commentary on the various sites around the harbor, passengers were not only able to relax and network, but also learn about the diverse uses of the waterfront – from breakbulk, refrigerated, and dry bulk cargo moving through the Tenth Avenue Marine Terminal to shipyards supporting both commercial and U.S. Navy vessels as well as 22 public parks. Bordering five cities — Chula Vista,

APP CONFERENCE RECAP Coronado, Imperial Beach, National City and San Diego — and covering 34 miles of natural waterfront, guests were impressed with diversity of the Port’s operations as well as the efforts taken to ensure environmentally sustainable operations. Yet another opportunity for attendees to mix and mingle was the Gala Dinner. Following an amazing meal from the top-notch chefs at the InterContinental Hotel, the Amazing Dana provided an entertaining and engaging magic show. Special shout-out to Bonnie Lowenthal, Paula Miranda, and Sharon Weissman who were great sports and helped Dana with a few of his magic tricks.

Speakers, panels, and presentations

While networking is a very important function for APP conferences, equally — if not more so — are the sessions where attendees get down to work. With a wide range of topics — climate change

resiliency, environmental sustainability and environmental permitting, infrastructure planning, port digitization, human resources, and cargo logistics — attendees were given the opportunity to learn how other ports were managing these significant issues. As noted above, space doesn’t allow for summaries of all sessions however, readers are encouraged to visit www. pacificports.org and take advantage of the video-taped sessions as well as PowerPoint presentations. Keynote speaker: Don Krusel Scoring a perfect 10 out of 10 on our post-conference survey, Don Krusel’s presentation was enlightening, entertaining and motivational. Indeed, a key phrase from Krusel’s speech — “plan for where the puck will be” — was referenced numerous times throughout the remainder of the conference. Entitled “Putting ‘Strategy’ back into Strategic Planning”, Krusel started by

defining “strategy”. According to the Cambridge Dictionary, strategy is the way in which a business, government, or other organization carefully plans its actions over a period of time to improve its position and achieve what it wants. Krusel went further, citing Michael Porter from the Harvard Business School, who posited that strategy is the creation of a unique and valuable position, involving a different set of activities – the focus being on “unique” and “different”. From there, he led the audience through a typical process that many businesses will follow in strategic planning — a very formula-driven, routine, ‘check-the-box’ annual process which is task or tactic oriented and will usually be developed ‘off the side of the desk’ due to time constraints. Good strategy however is a result of “imagineering” and creating the future. “The future is in your hands,” he said. “Most people wait for the future to define their actions

February 2022 — PACIFIC PORTS — 43

APP CONFERENCE RECAP rather than defining what the future will be by deciphering and interpreting the shifting messages and changing winds in today’s environment.” Before identifying common strategic planning hazards, Krusel noted that, while it was important to be able to solve today’s problems, ports should be thinking about how today’s trends will impact the future. In the context of current supply chain issues, he felt it was important to consider how supply chains would be managed post-COVID. “It is about trying to anticipate where we’re going to be in the future of supply chain challenges and how your port or organization can recognize opportunities from that and gain some advantage,” he said, outlining how a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis was required before being able to “create your own future”. As for some of the pitfalls to avoid during a strategic planning process, Krusel identified seven:

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• A comfort-of-the-crowd mindset — i.e., moving in the same direction and speed as other companies.

2,000 athletes have broken the same record. “Never think anything is impossible,” he said.

• Attraction of the herd — avoid falling into a mindset of “everyone else is doing it”.

• Complacency of success — “Success breeds complacency, and complacency breeds failure.” Citing examples such as Eastman Kodak, Blockbuster Video, Polaroid and Dell Computers, Krusel noted that all of these companies ignored worldwide trends and failed to remain relevant.

• Fear of the beyond — “There is great risk in venturing beyond the horizon, to a time and place we do not know,” Krusel said, “yet, that is where you will often find a bold and transformative strategy. • Illusion of permanency — never forget that the world and our industry are in a continual state of change. Every strategic plan must recognize that. • Belief in barriers of the absolutes — using the example of the four-minute mile, Krusel noted that it took over 50 years before Roger Bannister broke the record and only 60 days after that before another runner repeated the feat. Since then, almost

• Leaderlessness — without good leadership, a strategic plan or strategy is bound to fail. “You need a team to execute the strategy -- and a bold and courageous strategy will attract a great team -- but more often than not, it’s the leader of the organization that drives the vision,” he said. In summarizing his message, Krusel noted that strategic planning is a yearround effort and you must be constantly thinking of it in the context of an everchanging world. “Create a culture of

APP CONFERENCE RECAP innovation — help the organization step out of its comfort zone,” he said. “Accept the fact that change is inevitable, and the status quo is unacceptable. Create your own future.” While the above provides a basic recap of Krusel’s presentation, readers are encouraged to watch the full session online at the APP’s website — www. pacificports.org under Summaries from the APP 2021 Annual Conference.

Strong support and participation from MARAD/DOT

Pete Buttegieg, Secretary of Transportation set the tone for the upcoming three days in a video-taped message that highlighted key issues facing ports today. “Right now, we’re dealing with the economic consequences of the pandemic, including disruptions in supply chains around the globe,” he said. “Sales and demand have roared back faster than most companies dared to imagine when making their

plans … but it brings huge challenges as our goods movement chains are straining to catch up.” He pointed out that ports in the U.S. are struggling with aging infrastructure that is not built for today’s volumes, speeds, or expectations. “This is why, for the long term, we urgently need bold federal investment in our infrastructure — including our ports, freight, rail and intermodal facilities,” he said, adding that the bipartisan Infrastructure Act will invest $17 billion in ports and waterways with $2.25 billion of that directed toward the Port Infrastructure Development Program. Additional initiatives, such as increased operating hours and the sharing of more information and data to make systems more interoperable, are also key to easing congestion and providing efficiencies for throughput. In closing his address, Secretary Buttegieg echoed the message from APP President Kimberlyn King-Hinds who

wrote to conference attendees about the importance of working together to “rise to the occasion in this moment of global disruption and encourage collaboration across industries and geographies.” While Secretary Buttegieg’s address was by video, MARAD representatives were on site and played a significant role throughout the three-day conference. Gus Hein, U.S. Maritime Administration Gateway Director for the Mid-Pacific Region not only led the MARAD Town Hall (see page 22) but also provided an activity update for both his region as well as that of Bruce Lambert, Gateway Director, Pacific Northwest & Alaska, who was unable to attend. In addition to providing an overview of DOT and MARAD — its missions, organizational structure, and strategic goals — Hein touched on the grant and loan programs (noting that his colleague, Travis Black, would be going into much more detail). He then

February 2022 — PACIFIC PORTS — 45

APP CONFERENCE RECAP focused on the current issue of congestion and MARAD’s role in assisting ports to alleviate this. Some key initiatives highlighted by Hein included: The Marine Highway Program recently expanded to include Saipan and Guam as well as San Diego. The Program reduces congestion and maintenance on roads. Hein outlined the process to obtain designation, including the development of a business case as well as a supporting benefit/cost analysis. Over the past five years, the Program has allocated close to $47 million. The Program is also exploring options to interact with Canadian ports within the Salish Sea/ Puget Sound region. The MARAD Port Conveyance Program, designed to temporarily transfer the use and management of excess Federal property to States and local governments for the purposes of port development, port expansion, and operation of port facilities. Conveyance involves no monetary consideration,

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provided the property is used and maintained in perpetuity as a port facility. The Port Planning and Investment Kit developed in conjunction with the Association of American Port Authorities has been of great assistance to ports in obtaining funding. The toolkit is user friendly and can help ports evaluate conditions, define problems, and prepare plans to access funding. Hein then spent time describing initiatives that MARAD was undertaking to manage COVID-related issues. These include leading a significant number of national and regional engagements to address impacts on the marine transportation system; working with international groups on mariner crew change issues; monitoring and supporting grant programs as well as working with the Marine Transportation System National Advisory Committee on a variety of issues; and distributing 2.4 million cloth face masks to

stakeholders across the nation. Regarding the supply congestion issue, Hein has been working with ports, primarily in Southern California which accounts for roughly 40 percent of all containerized freight flowing through the U.S. He described the unforeseen surge created by surging consumer demand as well as an imbalance in the global supply chain that has created a huge spike in spot rates for trans-pacific shipping. The costs of supply chain congestion are being felt across many industries — manufacturers report being forced to slow down production and retail goods are missing important selling seasons. To address issues, the White House Supply Chain Disruptions Task Force was formed; and Port Envoy John Porcari was appointed to help drive coordination between the many private firms who control the transportation and logistics supply chain. In addition, Secretary Buttigieg and Port Envoy

APP CONFERENCE RECAP Porcari are continuing to work with all stakeholders to help more businesses access expanded hours and move the rest of the supply chain towards 24/7 operations. Next steps for MARAD include achieving 24/7 operations as well as greater data sharing and transparency to create greater efficiencies and shorter wait times. Hein also noted that they were working to identify inland container parking areas in Southern California. In yet another presentation from MARAD, Travis Black, Team Lead, Port Development and Intermodal Planning / Office of Ports and Waterways Planning, presented an in depth look at Federal Infrastructure Grants and the Port Toolkit. After a review of the Office of Ports and Waterways mission and objectives which are focused on increasing national cargo capacity and improving the reliability of freight movements through ports, Black took

attendees through the various modules of the Port Planning and Investment Toolkit, including: • The “Initiate” phase, essentially starting the process with a series of kickoff meetings with key project members and stakeholders to identify the project team, their roles and responsibilities as well as sources of information, milestones and schedules, and guiding elements which outline the vision, mission, goals and objectives, and strategies of the project. • The “Quantify” phase provides for an evaluation of existing conditions (assets, operations, external influences, etc.); project drivers such as market dynamics and competitive position; and project needs based on a gap analysis. • The “Form” phase was illustrated as a flow chart which starts with the project context, follows through to

multiple project alternatives, feasibility, and refining before determining the final project for evaluation. Following the review of the Port Planning Toolkit, Black then went into detail about the four major USDOT port infrastructure grant programs: • America’s Marine Highway Program (AMHP) — can be used for the development and expansion of port and landside infrastructure as well as the development and expansion of documented vessels. • Infrastructure for Rebuilding America (INFRA) — provides Federal grant funding assistance to support highway and freight projects. Eligible projects include those involving highways, bridges, rail, intermodal and port projects. • Rebuilding American Infrastructure with Sustainability and Equity (RAISE) — provides grant funding assistance to support the

February 2022 — PACIFIC PORTS — 47

APP CONFERENCE RECAP construction, or reconstruction, of infrastructure with significant local or regional impact. Formerly referred to as “TIGER” and “BUILD”, eligible projects include highway or bridge projects, public transportation projects, passenger and freight rail transportation projects, and port infrastructure investments. • Port Infrastructure Development Program (PIDP) — provides grant funding assistance to support port and port-related projects. Generally, grants may fund up to 80 percent of eligible project costs. Grant awards range from a minimum of $1 million up to a maximum of $57.5 million. Noting that the grant programs just discussed were discretionary funds available for port infrastructure projects, Black then discussed other financing opportunities such as: • Transportation Infrastructure Finance and Innovation Act is intended to leverage limited Federal resources and stimulate capital market investment in transportation infrastructure by providing credit assistance in the form of direct loans,

48 — PACIFIC PORTS — February 2022

loan guarantees, and standby lines of credit (rather than grants) to projects of national or regional significance. • Railroad Rehabilitation and Improvement Financing provides direct loans and loan guarantees to finance development of railroad infrastructure. Rail projects within the boundaries of a port are eligible to apply for assistance. He also encouraged conference attendees to review the “Rural Opportunities to Use Transportation for Economic Success” (R.O.U.T.E.S.) Toolkit which aims to enhance access to USDOT resources for rural transportation projects. Black discussed the role of the Port Envoy in assisting the Supply Chain Disruptions Task Force, and in particular, his focus on the State Freight Plan and data sharing. The National Highway Freight Program provides ports with an opportunity to seek federal funds for critical infrastructure projects and can include improvements to road and rail infrastructure that connects the ports with the broader transportation system. Up to 10 percent of

the funding allotted to each State can be used for eligible port projects within port gates, such as: • any surface transportation project designed to improve the flow of freight into and out of an eligible intermodal freight facility. • Intelligent transportation systems and other technology to improve the flow of freight, including intelligent freight transportation systems. • Efforts to reduce the environmental impact of freight movement. • Geometric improvements to interchanges and ramps. • Railway-highway grade separation. • Truck-only lanes. • Adding or widening of shoulders. • Truck parking facilities. In regard to data sharing, Black provided an overview of the Port Community Systems National Data Architecture Standards Project that aimed to standardize how data is shared between ports and other port stakeholders, and to increase use and efficiencies of port community systems. The overall project scope was to run from 2022 to 2024.

APP CONFERENCE RECAP Black’s presentation stands as a very valuable resource for ports looking for Federal support of projects. His PowerPoint presentation (available on the APP’s website: www.pacificports.org under Summaries from the APP 2021 Annual Conference) contains numerous links to sites for more information.

Infrastructure planning and permitting takes center stage

Given the $1.2 trillion Infrastructure Investment and Jobs Act recently passed by the Federal government, it’s no wonder that the topics of infrastructure planning, permitting processes, and port valuations for the purpose of grants were very popular. One of the first speakers on this topic was Duane Kenagy, Capital Programs Executive for the Port of Long Beach. Kenagy took the lead in the planning and subsequent execution of building the Long Beach International Gateway Bridge. At a cost of $1.5 billion, the replacement for the Gerald Desmond Bridge was a major milestone when it opened in October 2020. It took over two decades in designing and constructing; is the first cable-stayed bridge in California and has the highest deck of any cable-stayed bridge in North America. In addition to describing some of the challenges – for example, maintaining current operations while constructing the new bridge — Kenagy described how the new bridge was designed to solve two problems — the deterioration of the old bridge as well as improving the navigation channel and access to terminals. Following Kenagy, a panel session on the environmental permitting process saw U.S. Army Corps of Engineers representative Theresa Stevens team up with Sarah Pautzke, Lynker, and Zachary Hughes, Salus Resources to provide insights and guidance when dealing with regulatory agencies and relevant Acts. Stevens gave a great behind-the-scenes look at what happens to an application as it makes its way

through the USACE and Pautzke and Hughes were able to approach the issue from a “clients’ perspective, offering tips when dealing with such Acts as the Endangered Species Act and the Marine Mammal Protection Act. Drawing on the experiences of the Port of San Diego, Jason Giffen, Vice President, Planning and Environment for the Port, led a panel of local stakeholders and field experts who focused their presentation on building resiliency into key infrastructure projects to address climate change. In addition to outlining many of the plans and policies in place to advance resiliency, examples were provided of initiatives that furthered a ‘blue economy’, including restorative aquaculture planning, restoration and mitigation banking, and in-situ soil remediation. In another presentation focused on the critical component of valuing port assets and estimating economic impacts, the APP was very pleased to welcome Kate Quigley and Dr. Lauren Knapp from the National Oceanic and Atmospheric Administration’s Office for Coastal Management. Working with many ports on projects that require an economic valuation, Quigley and Knapp provide guidance on answering questions where decisions need to be made, especially with cost analysis, for example, with grants that require an economic analysis, which project will produce the best return on investment, or how many jobs will a project generate. They took attendees through a typical process to determine a cost analysis – from initial research, case studies, focus groups and surveys, to calculating if benefits exceed costs and through to input-output analysis — and then reviewed NOAA’s ENOW Explorer program, an online tool that provides information that can be used to for baseline data.

advancements in data sharing were leading to efficiencies in port operations. Using the Port of Açu in Brazil as an example, English examined the challenges the Port was experiencing and how PortLink was able to solve these. With operations based on manual data entry in Excel worksheets, emails, exchanges and phone calls which resulted in conflicts between service provider details and port records, the PortLink team developed a system to allow easily accessible, online data which created a seamless process from nomination of a vessel, to dynamic monitoring of estimated time of arrival and enhanced management of resources, through to a reduction in the environmental impact of vessels with delayed turn-around times. Attendees then learned the steps needed to digitize their ports (no matter their size) and the creation of a “smart port” which would allow them to operate a centralized platform that connected all public and private stakeholders securely.

Port digitization

It was evident from the presentation by John Lemieux, Director, Strategic Accounts and Government Services, Matson Logistics, that the shipping line

Kris English, Chief Information Officer for PortLink, provided an impressive overview of how technological

Human resources in a postCOVID world

Titled “The Next Normal — The State of the Post-COVID Workplace”, Katie Miller’s presentation described how the pandemic has changed the traditional workplace and that this change will last long after COVID. As Director, HR & Administrative Services for the Port of Stockton, Miller’s experience addressing workplace restrictions was evident. Advising managers to “lead with empathy”, Miller offered ways to ensure the needs of staff were factored into decisions affecting business. Flexible, hybrid approaches to work and honest conversations about what can and cannot be done from home were important ways to address employee issues such as caregiver obligations or stress.

Cargo logistics

February 2022 — PACIFIC PORTS — 49

APP CONFERENCE RECAP was an integral and critical component to providing humanitarian aid logistics in the Pacific. After a review of Matson’s long history of service, especially to the South Pacific Islands, Lemieux highlighted numerous examples where Matson had brought relief following disasters such as earthquakes, typhoons, and tsunamis. He outlined the steps required when deploying aid relief, including assessing port operations, labor, access to affected areas and capacity needs — and always taking into consideration the fastest option for delivery. In addition to providing a great overview of lessons learned and recommendations for ports to mitigate challenges, such as the strengthening of port facilities to withstand natural disasters and plans that will allow for containers to be moved out of the port area, Lemieux reviewed initial response initiatives, followed by damage recovery.

Spotlight on ports

APP conference attendees were treated to two presentations that gave insights into two very different ports but both with significant successes — the Port of Long Beach and the Port of

Skagit. As the second largest container port in North American (Los Angeles is the largest) Frank Colonna, Commissioner, Port of Long Beach, provided key statistics that showed significant growth in total throughput over the past five years, reaching close to a phenomenal nine million TEUs in 2021. He then outlined initiatives that were put in place to deal with pandemic as well as the work being done to address congestion issues that had been created over the past two years due to the pandemic. The presentation of Dr. Kevin Ware, Commissioner, Port of Skagit, was titled “The Magic Skagit: People, Land, and Innovation” and, true to its title, the Port was continuously working with the surrounding community to create unique opportunities. From aerospace and manufacturing industries to value-added agriculture and then to initiatives such as rural broadband and the SWIFT Center which is being transformed from a hospital built in 1912 to a mixed-use campus for education, research and development, and manufacturing among other commercial ventures, the Port’s contribution to the overall success and vitality of the Skagit Valley cannot be understated. PP

APP MEMBERSHIP BENEFITS Are you taking advantage of the many benefits of the APP? Call or email Jane McIvor: 604-893-8800 / jane@pacificports.org to discuss. As drivers of economic growth, facilitating trade and generating thousands of jobs, ports of the Pacific Ocean share a common vision: To provide an efficient, fluid, and cost-effective supply chain in a safe, environmentally sustainable and economically viable manner. The Association of Pacific Ports (APP) assists Member Ports in achieving this vision by enabling the sharing of best practices and lessons learned, peer-to-peer networking, and professional development. Supported by Associate Members who provide a diverse range of solutions for both port operations and management, the APP is building partnerships throughout the Pacific. APP member benefits provide a number of vehicles for you and your colleagues to network, promote best practices and raise awareness of challenges and opportunities. Industry Representation and Collaboration — in addition to working with like-minded organizations on initiatives that improve facets of your business and the maritime industry, the APP participates in government and industry forums as well as key industry events (e.g., Clean Pacific, GreenTech, Seatrade, Pacific Marine Expo), not only to provide representation for Pacific Ports but also to ensure important information is shared throughout the membership. Networking — through conferences and workshops, the APP provides opportunities for you to meet your counterparts from around the Pacific, learn through the sharing of best practices, and to develop life-long relationships with your peers. Promotional opportunities 50 — PACIFIC PORTS — February 2022

for Associate Members are also a key part of our agendas through presentations, distribution of materials, and table-top displays designed to heighten awareness of your products and services. Communications & Marketing — all members are invited (and encouraged!) to: • Submit articles, press releases and activity updates for Pacific Ports Magazine as well as our semi-monthly e-news updates and our frequently updated website. Not a writer? That’s okay, we can help. • Three months free web banner advertising on pacificports.org as well as six e-news banner ads (with greatly discounted rates for additional advertising). • Discounted rates for advertising in Pacific Ports Magazine. • Opportunities to present at APP Annual and Winter Conferences. • Participation on themed panel workshops.

Contact Jane McIvor (jane@pacificports.org / 604-893-8800) to discuss your priorities and ideas.

ASSOCIATION OF

PACIFIC PORTS

www.pacificports.org

APP MEMBERS Port Members

Associate Members

Port of Alaska (www.portofalaska.com)

ADELTE Ports & Maritime (www.adelte.com) Albion Marine Solutions (albionmarine.com) AM Insurance (www.amibrokers.com) American Samoa Office of Disaster Assistance & Petroleum Management Best Best & Krieger Attorneys at Law (www.bbklaw.com) BNAC Environmental Solutions Inc. (www.bnac.ca) Davies Transportation Consulting Inc. (www.dtci.ca/) FortisBC (www.fortisbc.com) GCT Global Container Terminals (globalterminals.com) HDR Engineering (www.hdrinc.com) Innovative Manufacturing Inc. (www.marinetapes.com) International Ship-owners Alliance Canada (internationalshipowners.com) Kongsberg Maritime Canada Ltd. (www.kongsberg.com) Liebherr USA, Co. (www.liebherr.com) Liftech Consultants (www.liftech.net) Lynker (www.lynker.com) Majuro Stevedore & Terminal Company, Inc. Maritime and Port Bureau, Taiwan R.O.C. (www.motcmpb.gov.tw) Matson Navigation (www.matson.com) Midstream Lighting (www.midstreamlighting.com) Nautical Consulting International Inc. (https://nauticalconsulting.com) NEC (www.necam.com) Northern Economics Inc. (https://northerneconomics.com/) Pavement Technical Solutions Inc. (www.pavementtechsolutions. com) Polaris Minerals (previously: Eagle Rock Aggregates) (http://polarismaterials.com/) PortLink (www.portlinkglobal.com) Reid Middleton, Inc. (www.reidmiddleton.com) Salus Resources Inc. (www.salusresources.com) Schrader Co. Sales, LLC (www.schraderco.com) Shey-Harding Associates (www.shey-harding.com) Shuttlewagon (www.shuttlewagon.com) SSA Marine (www.ssamarine.com) The Beckett Group (www.thebeckettgroup.org) Trans Mountain (www.transmountain.com) Truk Transportation Western Wood Preservers Institute (www.wwpinstitute.org) WSP USA (https://www.wsp.com/) Yardi Systems (www.yardi.com)

American Samoa Port Administration (americansamoaport.as.gov/) Port of Benton, Washington (www.portofbenton.com) Port of Brookings Harbor, Oregon (www.portofbrookingsharbor.com) Port of Columbia County, Oregon (www.portofcolumbiacounty.org) Commonwealth Ports Authority, Northern Mariana Islands (www.cpa.gov.mp/) Port of Grays Harbor, Washington (www.portofgraysharbor.com) Port Authority of Guam (www.portguam.com) Port of Hualien, Taiwan International Ports Corporation, Ltd. (https://hl.twport.com.tw/) Port of Hueneme, California (www.portofh.org) Port of Kaohsiung, Taiwan International Ports Corporation, Ltd. (https://kh.twport.com.tw/en/) Port of Keelung, Taiwan International Ports Corporation, Ltd. (https://kl.twport.com.tw/en/) Port of Long Beach, California (www.polb.com) Nanaimo Port Authority, BC, Canada (www.npa.ca) Port of Newport, Oregon (www.portofnewport.com) Pohnpei Port Authority, Micronesia (www.ppa.fm) Port Alberni Port Authority, BC, Canada (https://portalberniportauthority.ca/) Port of Portland, Oregon (www.portofportland.com) Port of Redwood City, California (www.redwoodcityport.com) Republic of Marshall Islands (RMI) Ports Authority, Marshall Islands Port of San Diego, California (www.portofsandiego.org) Port of Skagit, Washington (www.portofskagit.com) Port of Stockton, California (www.portofstockton.com) Port of Taichung, Taiwan International Ports Corporation, Ltd. (https://tc.twport.com.tw/en/) Port of Umatilla, Oregon (https://portofumatilla.org/) Port of Valdez, Alaska (https://www.valdezak.gov/151/Port)

Reciprocal Members Association of BC Marine Industries (abcmi.ca)

ASSOCIATION OF

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Green Marine (https://green-marine.org/) Inland Rivers, Ports & Terminals Association (https://www.irpt.net/)

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Pacific Ports - Volume 3, Issue 1, February 2022

Articles inside

PORT INFRASTRUCTURE

EXECUTIVE DIRECTOR’S NOTE

PORT NEWS

NEW MEMBER PROFILE

BEST PRACTICES

APP EXECUTIVE COMMITTEE