Fall Vol. 11 The Voice of the Industry

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1 Fall Vol. 11 The Voice of the Industry Recognizing the Value of

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4 contents OUTBOUND Ray Venturino, Publisher INBOUND Letters to the Editor Value must be conveyed Investors see ports worth Seaports generate jobs VIEWPOINT Kurt J. Nagle, President/CEO, AAPA In shadow of Jamestown, ports to prepare for future A la sombra de Jamestown, los puertos se preparan para el futuro VIEWPOINT Linda Ford, Port Promotions Director Virginia Port Authority Virginia Port Authority hosting fall convention Autoridad Portuaria de Virginia: ente anfitrión de la convención de otoño VIEWPOINT Capt. Allen O. Domaas, PPM President/CEO, Fraser River Port Authority Chairman, AAPA Cooperative efforts enhance awareness, urge sustainability Los esfuerzos coordinados incrementan la percepción, exhortan la sostenibilidad VIEWPOINT Capt. Anthony J. Allens Port Controller, Bahamas Port Authority Chairman, Caribbean Delegation, AAPA Economic benefits of Caribbean ports are readily visible Los beneficios económicos de los puertos caribeños VIEWPOINT Julián Palacio Latin American, Coordinator, AAPA Ports of Latin America face efficiency challenge Puertos de Latinoamérica enfrentan reto de la eficiencia SPECIAL REPORT Ports multibillion-dollar impacts ripple throughout the hemisphere Los impactos multimillonarios de los puertos se sienten a lo largo del hemisferio SPECIAL FEATURE Bill Mongelluzzo West Coast Editor, The Journal of Commerce A developing situation WORKSHOP REPORT Aaron Ellis Director of Communications, AAPA AAPA explores several facets of port economic development GUEST ARTICLE Ron Popham Senior Director, Maritime Division Port of San Diego The challenge of port infrastructure development in the age of gentrification GUEST ARTICLE Joseph P. Menta Jr. Director of Communications Philadelphia Regional Port Authority Here s looking at you, kid. Some of the best arguments for port activity can be found in the unlikeliest of places ISSUES & OUTLOOK Joseph Riccio Executive Director, Bridgeport (Conn.) Port Authority Eminent domain is useful, but it comes with cautions ISSUES & OUTLOOK David Kaufman Senior Director, Planning and Properties Jacksonville (Fla.) Port Authority Eminent domain power: Use it in judicious manner GUEST ESSAY Bruce Lambert Executive Director, Institute for Trade and Transportation Studies Cruise shipping benefits are continuing to spread GUEST ESSAY Nancy J. Johnson, Manager, Maintenance Management Improvement Programs Office of the Deputy Executive Director, Operations The Port Authority of NY & NJ Stretching scarce dollars: Asset management for ports PORT PEOPLE Review of recent port industry executive staff promotions, appointments, changes and announcements ON THE COVER: PORT OF SEATTLE WATERFRONT Photo courtesy of Don Wilson, Port of Seattle AMERICAN ASSOCIATION OF PORT AUTHORITIES 1010 Duke St. Alexandria, VA Tel: (703) Fax: (703) info@aapa-ports.org Website: Editorial Advisory Panel Duane Sandul (Advisory Panel Chair), Port of Redwood City Judith Adams, Alabama State Port Authority Carolyn Casey, Port of Bellingham France Poulin, Montreal Port Authority Rod Koon, Port of Tacoma Joe Menta, Philadelphia Regional Ports Authority Jean Godwin, AAPA Aaron Ellis, AAPA Editorial Staff Ray Venturino Publisher Paul Scott Abbott Editor Angie Wright Spanish Translation James Polo Design & Artwork Advertising Sales: Ray Venturino, rventurino@joc.com David Cantwell, dcantwell@joc.com Robert Sadowsky, rsadowsky@joc.com Walter Magaram, wmagaram@joc.com Alli McEntyre, amcentyre@joc.com Cindy Cronin, ccronin@joc.com Abbie Feibush, afeibush@joc.com Donalyn Croghan, dcroghan@joc.com AAPA SEAPORTS MAGAZINE is published three times annually in association with AAPA by SEAPORTS Publications Group, Commonwealth Business Media, Inc., a port industry publishing, advertising and information services specialist. Please address all correspondence to SEAPORTS Publications Group, 3400 Lakeside Dr., Ste. 515, Miramar, Florida Tel: (954) Fax: (954) publisher@aapaseaports.com. For subscription rates, advertising information and our online versions in English and Spanish, please visit our online site at Copyright 2007 SEAPORTS Publications Group, Commonwealth Business Media, Inc. & AAPA. All rights reserved.

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6 {OUTBOUND} Dear Industry Colleagues: It is my pleasure to present you with yet another insightful issue of AAPA Seaports Magazine one that focuses on maritime economic development and the value of seaports, as witnessed in our special report, Ports multibillion-dollar impacts ripple throughout the Western Hemisphere. The true impact of a port work stoppage, how shifts in trade patterns magnify a nation s economy, how ports drive commerce and other related topics are covered in this Fall 2007 AAPA Convention issue, setting the stage for sessions to take place in Norfolk,Va.The convention s theme is Discovering New Worlds. Since the Summer 2007 issue, we ve enhanced circulation to benefit AAPA members, nonmembers and advertisers. Now, along with reaching Western Hemisphere port authorities, shippers and shipping lines, rail and terminal operators, stevedores, trucking companies and providers of products and services, this industry magazine will reach federal policymakers and their staffs (U.S. senators and representatives with coastal and Great Lakes seaports in their districts) and the world s leading retailers. Bottom line:this is a high-profile audience of readers. As a final note, we will soon be conducting our annual magazine readership survey.your feedback makes a difference as we look to continue delivering the industry s most informative and valuable ports news source.we want to hear from you, so please ensure we have your by simply dropping me a note. Enjoy the read. Kind regards, Ray Venturino, Publisher Seaports Publications Group rventurino@seaportsinfo.com (973) AAPA STAFF ADMINISTRATION Kurt J. Nagle, President & CEO knagle@aapa-ports.org Jean Godwin, Executive Vice President & General Counsel jgodwin@aapa-ports.org Teri Nagle, Finance/Human Resources Coordinator tnagle@aapa-ports.org Colleen O Sullivan, Executive Assistant cosullivan@aapa-ports.org GOVERNMENT RELATIONS Susan Monteverde, Vice President of Government Relations smonteverde@aapa-ports.org Dave Sanford, Director of Navigation Policy & Legislation dsanford@aapa-ports.org Meredith Martino, Manager of Government Relations & Environmental Policy mmartino@aapa-ports.org Rebecca Stone, Administrative Assistant rstone@aapa-ports.org OUTREACH & MEMBERSHIP SERVICES Jean Godwin, Executive Vice President & General Counsel jgodwin@aapa-ports.org Aaron Ellis, Director of Communications aellis@aapa-ports.org Scott Brotemarkle, Director of Program Development & Technology sbrotemarkle@aapa-ports.org Mary Beth Long, Senior Advisor mlong@aapa-ports.org Edward L. O Connell, Director of Membership Services eoconnell@aapa-ports.org Jodi Gibson, Training & Programs Coordinator jgibson@aapa-ports.org Alicia Fuentes, Administrative Assistant & Latin American Facilitator afuentes@aapa-ports.org Robin Hall, Web Content Administrator rhall@aapa-ports.org Julian Palacio, Latin American Coordinator jpalacio@aapa-ports.org Robert Dongu, Communications Assistant (Intern) rdongu@aapa-ports.org RESEARCH AND INFORMATION SERVICES Dr. Rexford B. Sherman, Director of Research & Information Services rsherman@aapa-ports.org {4} AAPA SEAPORTS MAGAZINE

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8 {INBOUND} LETTERS TO THE EDITOR Value must be conveyed Dear Editor: Many communities have lost touch with the connection between healthy ports and livability. Seaports often are viewed as either an old-economy industry or as the responsible party for too many trucks on the road. The public s perception of the value of ports was top-of-mind at AAPA s Maritime Economic Development Workshop held last June in Oxnard, Calif., where the impacts of gentrification and encroachment on seaports were a common challenge. It is essential to convince local agencies, developers and neighbors that ports are the foundation on which thriving communities are built. Consistent participation in community organizations, strong relationships with local elected officials and business leaders, and a robust public outreach program can help achieve this. Community allies help quell competing interests for road and rail capacity, industrial land, and other staples of healthy ports.we also need to be armed with hard facts that tell the story of living wage jobs, community economic benefits and how industry begets livability. Our port is in the midst of a public vote to raise development funds. Public perception of the port s value literally means yes or no. Our commitment to convince the public of that value will last well beyond the vote. Katy Brooks Community Relations Manager The Port of Vancouver USA Vancouver,Wash. kbrooks@portvanusa.com Investors see ports worth Dear Editor: The number of recent high-profile acquisitions and equity investments in existing marine terminal operations is evidence that the value of our nation s seaports is recognized by the investment community. The historically high valuations place on these enterprises indicate anticipated strong cash flows and margin improvements resulting from increasing demand, supply shortages and high barriers to entry. In terms of promoting its commercial value to the investment community, the terminal operations industry is well under way. The challenge is to further articulate and capture the port s contribution to that value as the enabler of commercial activity and steward of broader economic benefits. Dwelling on recent valuations, one might conclude that the opportunity costs attributable to an inability to realize capacity improvements within appropriate timeframes are being factored into the equation. By extension, those opportunity costs will impact producers costs of goods sold, resulting in higher prices at the retail level. Understanding those retail cost implications at the grassroots levels and demonstrating how continued investment in port and supporting infrastructure mitigates those impacts could be a role for the port. Coupled with traditional economic benefits analyses, articulating value in terms of cost savings could improve the value perception of our seaports. John J. Corley III Vice President Ports and Maritime Group CH2M HILL Chantilly,Va. john.corley@ch2m.com Seaports generate jobs Dear Editor: Our nation s seaports are growing at an unprecedented rate. Unfortunately, as a result, the public sees more congestion on the highways and hears about higher security risks on the evening news. However, seaports have tremendous value to the communities they serve. Not only are they a vital link in the supply chain of the global economy, but they also provide jobs for millions of Americans. A recent economic impact study revealed that more than 50,000 people in Jacksonville, Fla., have jobs related to the maritime industry. That s 50,000 people working and living in the city shopping, dining and supporting the local tax base. At the Jacksonville Port Authority, we focus our communications on jobs. When we bring in new business, we tell people how many jobs it will bring to the area. We even created a jobs Web site jaxportjobs.com which lists available maritime industry job openings in Northeast Florida. This is a tremendous resource for the community, and the success of the site has demonstrated the value of JAXPORT to Jacksonville. So, share the good news with your customers, your family, friends and neighbors. More cargo at the seaport brings more jobs to your community and a better way of life. Rick Ferrin Executive Director Jacksonville Port Authority Jacksonville, Fla. rick.ferrin@jaxport.com {6} AAPA SEAPORTS MAGAZINE

9 Maximum Security, Maximum Efficiency GIS for Port Operations Coordinate Operations with Geographic Information GIS is used to optimize the location of security surveillance systems. (SafeSite application courtesy of Geographic Information Services, Inc.). Faced with the need for increased security, efficient port operations, and effective facility management, port operators today must juggle diverse challenges to produce optimal results. Port managers are finding that an integrated geographic information system (GIS) provides a comprehensive management system for all aspects of port operations. GIS uses location to link assets with operation needs and allows you to see and control the big picture. Discover how ESRI GIS software can play a pivotal role in your port information management strategy. GIS is used by ports for Security Planning/Port Design Port Operations Property and Lease Management Emergency Response/Management Facility and Utility Management Vessel Routing and Tracking Intermodal Management Meteorological Monitoring Environmental Management Nautical Charting Public Information The Port of Houston Authority uses GIS to efficiently manage their infrastructure and track their assets. (screen shot courtesy of the Port of Houston Authority). ESRI The GIS Company info@esri.com Copyright 2006 ESRI. All rights reserved. The ESRI globe logo, ESRI, ESRI The GIS Company, ArcGIS, ArcScene, ArcInfo, are trademarks, registered trademarks, or service marks of ESRI in the United States, the European Community, or certain other jurisdictions. Other companies and products mentioned herein are trademarks or registered trademarks of their respective trademark owners.

10 from the desk of Kurt J. Nagle President and Chief Executive Officer American Association of Port Authorities {VIEWPOINT} In shadow of Jamestown, ports to prepare for future Ports play a multidimensional role in our lives. Whether it s handling goods that we export and import, providing facilities for tourism, helping to improve the coastal environment or boosting the local and national economy through job creation and business development, ports are a valuable even vital resource. While this may be no revelation to those in the port industry, it can be for those who don t often come into direct contact with maritime operations. For most, their knowledge of ports is minimal. If you are attending the 2007 AAPA Annual Convention in Norfolk, you will find the theme, Discovering New Worlds, to be an appropriate one.that s because not only will you discover how much ports have changed since the English first settled Jamestown (the colony and the port) in 1607, but new ways to explain to folks back home how ports are serving their communities today. As part of the weeklong program being hosted by the Virginia Port Authority at the beautiful Marriott Waterside Hotel in Norfolk, what we will discover together is that, while much has changed in the U.S. maritime industry in the 400 years since Jamestown s founding, seaports can still capture the imagination and allure of exotic goods from far-off lands. It s all in how we tell our story. The convention s business program includes discussions that focus on the changing dynamics of world trade, new and emerging centers for manufacturing, ship routing and shipping hub developments, the ever-increasing size of the ships that carry the freight and bigger environmental challenges that come with handling more trade. Western Hemisphere ports are working to meet the demands of the new breed of super-sized vessels, with their accompanying freight logistics requirements and turnaround schedules. The ability to service these larger vessels and deal with moving the goods to and from the ships without creating traffic gridlock or adverse environmental impacts is among the top issues facing AAPA member ports today. To address these challenges, convention participants will examine the global impacts anticipated for moving goods in the future in order to prepare for what lies ahead. This includes taking a look at the expanding logistics industry, which affects services from trucking and {8} AAPA SEAPORTS MAGAZINE A la sombra de Jamestown, los puertos se preparan para el futuro Los puertos juegan un papel multidimensional en nuestras vidas.ya se trate del manejo de mercancías que importamos y exportamos, de facilitar instalaciones para el turismo, de ayudar a mejorar el ambiente costero o de estimular las economías locales y nacionales a través de la creación de empleos y del desarrollo comercial, los puertos son recursos valiosos incluso vitales. Mientras que esto puede que no sea una revelación para los que forman parte de la industria portuaria, sí puede serlo para aquellos que rara vez tienen contacto directo con operaciones marítimas. Para la mayoría, su conocimiento de los puertos es mínimo. Si va a asistir a la Convención Anual 2007 de la AAPA en Norfolk, hallará que el tema de la misma, Descubriendo nuevos mundos, es muy apropiado. No sólo porque descubrirá cuánto han cambiado los puertos desde que los ingleses colonizaron Jamestown (la colonia y el puerto) en 1607, pero también nuevas maneras de explicarle a la gente, una vez de regreso en casa, cómo es que los puertos sirven a sus comunidades hoy día. Como parte del programa de una semana de duración, patrocinado por la Autoridad Portuaria de Virginia en el bello Hotel Marriott Waterside en Norfolk, lo que habremos de descubrir juntos es que, aunque mucho ha cambiado en la industria marítima de los EE UU en los 400 años desde que Jamestown fue fundado, lo puertos pueden todavía captivar la imaginación y el encanto de productos exóticos de tierras lejanas. Todo radica en cómo contemos nuestra historia. El programa de la convención incluye discusiones que se enfocan en las dinámicas cambiantes del comercio internacional, los nuevos y emergentes centros de manufactura, las novedades en el itinerario de los buques y en los centros de actividades marítimas, el tamaño cada vez más grande de los buques que transportan la carga y los retos mayores que se presentan con el manejo de un comercio acrecentado. Los puertos del Hemisferio Occidental están trabajando para hacerle frente a los requerimientos de la nueva clase de buques de tamaño súper, con los correspondientes requisitos de logística de carga y los itinerarios de ida y vuelta. La habilidad de servir estos buques de mayor tamaño y lidiar con el movimiento de las mercancías hacia y desde los buques, sin crear un embotellamiento de tráfico o impactos ambientales negativos, está entre los principales problemas que enfrentan los puertos miembros de la AAPA hoy por hoy. Para hacerle frente a estos retos, los participantes de la convención examinarán los impactos globales que se anticipan por el futuro movimiento de mercancías, con el fin de prepararse para lo que está por venir. Esto incluye darle un vistazo a la creciente industria de logística, que afecta desde los servicios de los depósitos de camiones y centros de distribución hasta los de proveedores de logística independientes. Los animadores se enfocarán en cómo los exigencias hechas a los servicios de logística con creciente continued on page 9 continuado en la página 9

11 {VIEWPOINT} continued distribution facilities to third-party logistics providers. Discussion leaders will focus on how demands placed on logistics services are increasingly creating needs for new infrastructure and new business practices another key issue for which AAPA member ports must rise to the challenge. The last day of the convention will focus on port sustainability. AAPA s Sustainability Task Force will offer its insights on how to balance and address the factors that contribute to ensuring a sustainable port, including environmental, economic, social responsibility, operational efficiency and security matters. Port sustainability is one of AAPA s increasing areas of focus and one that is generating much discussion, both in terms of identifying the common issues and finding the right balance between them, especially considering the many operational variances between the 160 AAPA member ports. I hope to see you in Norfolk for the 2007 AAPA Annual Convention, where we will Discover New Worlds together in global shipping, freight mobility, port sustainability and the value of ports, from both a current and future perspective, right in the shadow of the 400-year-old trading port known as Jamestown. With these perspectives, I believe convention participants will be better equipped to explain the value of ports to those back home. frecuencia crean necesidades de nuevas infraestructuras y nuevas prácticas comerciales otro asunto clave para el cual los puertos miembros de la AAPA deben estar a la altura del desafío. El último día de la convención estará dedicado a la sostenibilidad portuaria. El Grupo de Estudio de la AAPA sobre la Sostenibilidad compartirá sus conocimientos acerca de cómo balancear y abordar los factores que contribuyen a garantizar un puerto sostenible; estos incluyen responsabilidad ambiental, económica y social, así como eficiencia operacional y asuntos de seguridad. La sostenibilidad portuaria es una de las áreas de creciente enfoque para la AAPA y una que genera bastante discusión, tanto en términos de la identificación de problemas comunes como en hallar el balance correcto entre ellos especialmente si se toma en cuenta las múltiples variantes operacionales que existen entre los 160 puertos miembros de la AAPA. Espero verlos en Norfolk para la Convención Anual 2007 de la AAPA, donde juntos descubriremos nuevos mundos en el transporte marítimo global, la movilidad de de la carga, la sostenibilidad portuaria y el valor de los puertos desde una perspectiva tanto actual como futura, justo a la sombra del puerto de intercambio mercantil establecido hace 400 años y conocido como Jamestown. Creo que con estas perspectivas los participantes de la convención estarán mejor armados para explicar el valor de los puertos una vez estén de regreso en casa. {9}

12 DOWNTOWN NORFOLK WATERFRONT from the desk of Linda Ford Port Promotions Director Virginia Port Authority {VIEWPOINT} Virginia Port Authority hosting fall convention Discovering New Worlds, the theme for the 96th annual convention of the American Association of Port Authorities, will set the stage for exploring many new concepts, trends and challenges of the maritime industry from Sept. 30 through Oct. 4 in Norfolk,Va. As host port this year, the Virginia Port Authority has planned a convention that will take guests on a journey to explore contemporary industry topics and Virginia s rich maritime history during the social events. During the business sessions, convention participants will be challenged to explore compelling topics. Highlights of the business program include: The World Economy and the Shift of Manufacturing Growth in Ship Sizes:Where Will it Lead? Reducing Congestion to Improve Freight Mobility Environmental Challenges from Cargo Growth Defining and Addressing Port Sustainability Innovative Approaches to Port Challenges. Planned social events will explore the old and new worlds of Virginia, beginning with a welcome to Norfolk at the area s new, state-of-the-art Half Moone Cruise Terminal, hosted by the City of Norfolk. Later during the week, The National Maritime Center-Nauticus will provide a spectacular maritimethemed experience at an evening reception that will {10} AAPA SEAPORTS MAGAZINE Autoridad Portuaria de Virginia: ente anfitrión de la convención de otoño Descubriendo nuevos mundos, el tema de la 96.a convención anual de la Asociación Americana de Autoridades Portuarias, sentará la pauta para examinar nuevos conceptos, tendencias y desafíos de la industria marítima, a partir del 30 de septiembre hasta el 4 de octubre en Norfolk,Virginia. Como puerto anfitrión este año, la Autoridad Portuaria de Virginia ha planeado una convención que, durante los eventos sociales, llevará a los invitados en un recorrido exploratorio de temas contemporáneos de la industria y de la rica historia marítima de Virginia, En las sesiones de negocio, los participantes de la convención serán retados a explorar temas urgentes. Entre los puntos salientes del programa de trabajo se encuentran: La economía global y el traslado de la manufactura El aumento en el tamaño de los buques: Hacia dónde se dirige? Reducir la congestión para mejorar la movilidad de la carga Desafíos ambientales causados por el incremento en el volumen de la carga Definir y abordar el tema de la sostenibilidad portuaria Planteamientos innovadores para los retos portuarios Los eventos sociales que han sido planeados examinarán el viejo y el nuevo mundo de Virginia, comenzando con una bienvenida a Norfolk que se llevará a cabo en la nueva y ultramoderna Terminal de Cruceros Half Moone, por invitación de la Ciudad de Norfolk. Luego en la semana, el National Maritime Center-Nauticus ofrecerá una experiencia espectacular de Planned social events will explore the old and new worlds of Virginia... include hands-on exhibits, interactive theaters, aquaria temática marítima durante una recepción nocturna que science center, the battleship USS Wisconsin and the incluirá exposiciones prácticas, teatros interactivos, centro de ciencias de acuarios, el acorazado USS Wisconsin Navy Museum. y el Museo de la Armada. During a midweek trip to Jamestown, the story of En un viaje a Jamestown a mediados de semana, la America s beginnings will come to life at Jamestown historia del comienzo de los Estados Unidos cobrará vida en Settlement. The story of the people who founded el Asentamiento de Jamestown. La historia de las personas Jamestown and the Virginia Indians they encountered is que fundaron Jamestown y de los indios oriundos de Virginia con quienes se toparon es relatada a través de películas, told through film, gallery exhibits and living history. exposiciones de galería e historia viviente. Iremos a bordo We will board replicas of the three ships that sailed de las réplicas de las tres embarcaciones que zarparon from England to Virginia in 1607, explore life-size desde Inglaterra hacia Virginia en el 1607; exploraremos recreations of the colonists fort and a Powhatan village, recreaciones de tamaño natural del fuerte de los colonos y de continued on page 11 continuado en la página 11

13 {VIEWPOINT} continued and tour a riverfront discovery area to learn about European, Powhatan and African economic activities associated with water. In the outdoor areas, costumed historical interpreters will describe and demonstrate daily life in the early 17th century. In the indoor areas, food and entertainment will depict Colonial-era customs. The traditional closing social event of each convention has been the spectacular chairman s gala. This year will be no exception, with an outstanding array of special events and entertainment provided by a world-class native Virginian. On behalf of the Virginia Port Authority, I invite you to join us in Norfolk for the 2007 AAPA Convention. We have planned a variety of engaging business sessions and have a host of exciting social events, including a special celebration of the 400th anniversary of America s first trading port at Jamestown. We look forward to making sure your experience in Virginia is memorable. una aldea de los indios Powhatan; y haremos un recorrido por un área de descubrimiento ribereña para conocer acerca de las actividades económicas de los europeos, de los indios Powhatan y de los africanos asociadas con el mar. En las áreas exteriores, interpretes históricos vestidos con los trajes de la época describirán y demostrarán la vida cotidiana de principios del siglo XVII. En las áreas interiores, comidas y entretenimientos describirán las costumbres de la era colonial. El tradicional evento social de clausura en cada convención ha sido la espectacular gala del presidente. Este año no será una excepción, con un excelente conjunto de eventos especiales y entretenimiento ofrecidos por un renombrado nativo de Virginia. En nombre de la Autoridad Portuaria de Virginia, los invito a que se unan a nosotros en Norfolk para la Convención del 2007 de la AAPA. Hemos planificado una variedad de interesantes sesiones de negocios y tenemos un sinnúmero de excitantes eventos sociales, incluyendo una celebración especial por el 400. aniversario del primer puerto de intercambio mercantil de los Estados Unidos en Jamestown. Esperamos con anticipación la oportunidad de garantizar que sus experiencias en Virginia sean memorables. The leading supplier of Maritime Surveillance Systems SSR Engineering, Inc. Provides cost-effective Radar Processing Solutions for: PORTS WATERWAYS OFFSHORE FACILITIES We show you the complete picture. t: W. Woodland Drive, Anaheim, CA SSReng.com {11}

14 from the desk of Capt.Allen O. Domaas, PPM President and Chief Executive Officer Fraser River Port Authority Chairman {VIEWPOINT} Cooperative efforts enhance awareness, urge sustainability As my year as AAPA s chairman comes to a close, I am pleased to see that we have made significant progress toward being seen as a hemispheric association addressing multimodal infrastructure demands in balance with the need for sustainable, balanced growth. Indeed, the entire issue of sustainability is now receiving the attention it richly deserves, thanks to the dedicated work of the special AAPA task force created specifically to encourage all ports in the association and the association itself to implement policies and practices that ensure that port development is economically viable while mitigating societal and environmental impacts. We look forward to a sustainability task force session at the 96th Annual AAPA Convention, set for Sept. 30-Oct. 4 in Norfolk, and to a continuing emphasis on defining and proliferating policies on sustainability. Also, we anticipate that we will continue to expand our focus on meeting port terminal and inland infrastructure needs, carrying on the logistics-chain-wide freight mobility efforts of my esteemed predecessor as AAPA chairman, Mr. Bernie Groseclose of the South Carolina State Ports Authority. We have done an admirable job of showing the essential role our ports play as interface between ocean carriers and consumers. By maximizing on-port efficiencies and having in place the necessary connective infrastructure, we can keep the ultimate cost of goods as reasonable as possible. Changes in trade patterns and shifting national economic emphases are fueling demand for widening port gateways and increased cooperation, such as the impending amalgamation here in British Columbia of three port authorities the Fraser River Port Authority, North Fraser Port Authority and Vancouver Port Authority. On a broader scale, we are seeing renewed vitality of leadership and heightened levels of collaboration within and between AAPA s four geographic delegations, representing ports of Canada, the Caribbean, Latin America and the United States. Combined, these {12} AAPA SEAPORTS MAGAZINE Los esfuerzos coordinados incrementan la percepción, exhortan la sostenibilidad Al tiempo que mi año como presidente de la AAPA llega a su término, me complazco en saber que hemos progresado significativamente hacia el reconocimiento como una asociación hemisférica, que aborda los requerimientos de la infraestructura multimodal en justo equilibrio con la necesidad de un crecimiento sostenible y balanceado. En efecto, el tema de la sostenibilidad está recibiendo ahora la atención que tanto merece, gracias a la dedicada labor del grupo de estudio de la AAPA, creado específicamente para alentar a todos los puertos de la asociación y a la asociación misma a poner en práctica normas y costumbres que garanticen que el desarrollo portuario sea económicamente viable a la vez que mitigue los impactos sociales y ambientales. Aguardamos con interés una sesión del equipo de estudio sobre la sostenibilidad durante la 96.a Convención Anual de la AAPA, programada para el 30 de septiembre hasta al 4 de octubre en Norfolk, y un énfasis continuado en la definición y proliferación de normas sobre la sostenibilidad. Asimismo, anticipamos que vamos a seguir ampliando nuestro enfoque en relación con afrontar las necesidades portuarias de terminales e infraestructura terrestre, dándole seguimiento a los esfuerzos de movilidad de la carga a lo largo de la cadena logística que iniciara mi estimado predecesor como presidente de la AAPA, el Sr. Bernie Groseclose, de la Autoridad Portuaria del Estado de Carolina del Sur. Hemos hecho una labor admirable en mostrar el papel esencial que tienen nuestros puertos como enlaces entre las compañías navieras y los consumidores. Por medio de la maximización de las eficiencias portuarias y con la necesaria infraestructura conectiva establecida, podemos hacer que los precios finales de los productos se mantengan lo más razonables posible. Cambios en las estructuras del comercio y variaciones en el énfasis de la economía nacional están alimentando la necesidad de ampliar las entradas portuarias y de una mayor cooperación tal como la inminente fusión de tres autoridades portuarias aquí en la Columbia Británica: la Autoridad Portuaria del Rio Fraser; la Autoridad Portuaria del Norte de Fraser; y la Autoridad Portuaria de Vancouver. En una escala más amplia, estamos viendo una renovada vitalidad de liderazgo asi como elevados niveles de colaboración dentro y entre las cuatro delegaciones geográficas de la AAPA, que representan los puertos del Canadá, el Caribe, Latinoamérica y los Estados Unidos. Unidas, estas delegaciones representan una genuina voz hemisférica para la industria portuaria. continued on page 13 continuado en la página 13

15 {VIEWPOINT} continued delegations are presenting a genuine hemispheric voice for the seaport industry. Personally, I also am highly appreciative of the remarkably strong support I have received from AAPA s president and chief executive officer, Mr. Kurt Nagle, and the rest of the association staff and volunteer guidance. AAPA is clearly demonstrating a solid commitment to the organization s fundamental goals of advocacy, relationship building, education and public awareness. With substantial awareness of the importance of seaports, we can be most hopeful of enactment of the public policies needed to keep our ports and our economies flourishing. It is a true blessing to have had this opportunity to serve as chairman, not only of the entirety of AAPA but also of the Canadian delegation.with dedicated leadership both at headquarters and throughout the Western Hemisphere, AAPA is ensuring the lasting vitality of our ports, our nations and our hemisphere. A nivel personal, también me siento muy agradecido por el extraordinario apoyo que he recibido de parte del presidente y jefe ejecutivo de la AAPA, el Sr. Kurt Nagle, y por el asesoramiento del resto del personal y voluntarios de la asociación. Sin duda, la AAPA está demostrando un firme compromiso con los objetivos fundamentales de la organización: cabildeo, edificación de relaciones, educación y concienciación pública. Con amplio conocimiento de la importancia de los puertos, podemos estar muy esperanzados sobre la promulgación de las políticas de interés nacional necesarias para lograr que nuestros puertos y economías continúen floreciendo. Es una verdadera bendición haber tenido esta oportunidad de fungir como presidente, no sólo de toda la AAPA pero también de la delegación canadiense. Con un liderazgo dedicado, tanto en la sede como a lo largo del Hemisferio Occidental, la AAPA está garantizando la perdurable vitalidad de nuestros puertos, de nuestros países y de nuestro hemisferio. {13}

16 from the desk of Capt.Anthony J.Allens Port Controller Bahamas Port Authority Chairman, Caribbean Delegation American Association of Port Authorities {VIEWPOINT} Economic benefits of Caribbean ports are readily visible A June 29 report from the U.S. Government Accountability Office indicates that there are significant maritime links between the Caribbean and the United States, hence the great interest being placed on the security of ports in the Caribbean Basin. I will submit that there is a great correlation between security and economic benefits; therefore it is imperative that our ports in the Caribbean achieve economic success. In places like Nassau, it is quite easy to see the economic benefits of seaports. The vast amount of containerized and breakbulk cargo operations that are visible along the foreshore of New Providence and the more than 3 million visitors who pass through the premier passenger terminal at Nassau Harbour demonstrate the economic benefit that is directly derived through the port. As is the case with other ports throughout the Caribbean, cargo vessels bring a full range of consumer goods and the cruise ships are bearers of touristic spending power. Arguably, it is visitor spending that helps residents of the Bahamas and other island nations to afford necessities of life. With limited local production, most Caribbean islands must rely upon imports for the vast majority of the items upon which they depend in their daily lives. At the same time, tourism is a leading economic engine in the islands, with many visitors arriving aboard the increasingly large ships operated by major cruise lines. At Caribbean ports, we face the challenges of accommodating both these vital sectors cargo and cruise recognizing that each is essential to our economic wellbeing. Balancing cargo and cruise operations can be a difficult task. Here on New Providence, we are engaged in discussions considering relocating cargo operations away from the downtown area, removing them from the sight of passengers entering the harbor on cruise ships and alleviating cargo-related congestion on city streets. Other discussions now under way here and elsewhere in the Caribbean involve decisions regarding expansion of cruise facilities to handle the super-sized floating resorts that cruise companies are bringing online. Dialogue with cruise line officials must include assurances that ship calls continued on page 15 Los beneficios económicos de los puertos caribeños están a la vista Un informe de la Agencia de Responsabilidad Gubernamental de EE UU, con fecha del 29 de junio, señala que existen numerosas conexiones marítimas entre el Caribe y los Estados Unidos; de ahí el notable interés en la seguridad de los puertos de la Cuenca del Caribe. Yo propongo que existe una gran correlación entre la seguridad y los beneficios económicos; por lo tanto, es imprescindible que nuestros puertos del Caribe alcancen el éxito económico. En lugares como Nassau los beneficios económicos que aportan los puertos marítimos son muy evidentes. La vasta cantidad de operaciones de carga en contenedores y al granel que se perfilan a lo largo de la playa de Nueva Providencia, y los más de tres millones de visitantes que pasan por la principal terminal de pasajeros en Nassau Harbour, dan prueba de los beneficios económicos que se derivan directamente del puerto. Como es el caso con otros puertos del Caribe, los buques de carga traen una amplia gama de bienes de consumo y los buques de crucero son portadores del poder adquisitivo de los turistas. Indiscutiblemente, es el dinero que gastan los turistas lo que ayuda a que los residentes de las Bahamas y de otras islas puedan costearse las necesidades básicas. Con una limitada producción local, la mayoría de las islas caribeñas deben depender de las importaciones para gran parte de los artículos necesarios en su diario vivir. A la misma vez, el turismo es uno de los principales motores económicos de las islas, con numerosos visitantes que llegan a bordo de los cada vez más grandes buques operados por destacadas compañías de cruceros. En los puertos del Caribe enfrentamos el reto de dar cabida a estos dos sectores de vital importancia la carga y los cruceros reconociendo que cada uno es esencial para nuestro bienestar económico. Balancear las operaciones de carga y de cruceros puede ser una tarea difícil. Aquí, en Nueva Providencia, estamos en medio de conversaciones para considerar la relocalización de las operaciones de carga lejos del centro de la ciudad, quitándolas de la vista de los pasajeros que entran al muelle en los buques de crucero y, a la vez, aliviar la congestión en las calles de la ciudad relacionada con el movimiento de carga. Otros temas que se están discutiendo aquí y en otros lugares del Caribe tienen que ver con decisiones sobre la expansión de instalaciones de cruceros necesarias para manejar los enormes complejos turísticos flotantes que las compañías de crucero están introduciendo en el mercado. El diálogo con los ejecutivos de las líneas de cruceros deben incluir el compromiso de que los buques tocarán puerto con continuado en la página 15 {14} AAPA SEAPORTS MAGAZINE

17 {VIEWPOINT} continued will be of a frequency sufficient to justify expenditures on channel-deepening projects and terminal enhancements. Foreign investment in cargo facilities, such as at Freeport Harbour, has brought additional economic benefits to some Caribbean ports.at Freeport, most of the cargo containers that move through the port are neither destined for nor originating in the Bahamas. Rather, these boxes are in transshipment, stopping on Bahamian soil as they are moved from a vessel inbound from one of a plethora of ports throughout the world to another ship that will take them to their ultimate destination. Of course, operations of this transshipment hub are a boon to the Bahamian economy, providing good-paying jobs and other economic benefits. In short, it is virtually impossible to imagine those who live on the islands of the Caribbean subsisting without our ports. Through efforts such as the American Association of Port Authorities Port Professional Technical Assistance Program, or PPTAP, and other AAPA informationsharing initiatives, we are engaged in the exchange of expertise that will aid us in meeting the dual challenges of accommodating the cargo and cruise activities which sustain us. Together, we are securing the future of the peoples of the Caribbean. la suficiente frecuencia como para justificar los gastos relacionados con los proyectos de profundización de los canales de acceso y la remodelación de las terminales. La inversión extranjera en instalaciones de carga, tales como en Freeport Harbour, ha traído consigo beneficios económicos adicionales para algunos puertos caribeños. En Freeport, la mayoría de los contenedores de carga que transitan a través del puerto no tienen a las Bahamas como origen ni como destino final. Más bien, estos contenedores son de transbordo, que hacen escala en suelo bahamés según son descargados de buques provenientes de una plétora de puertos de todo el mundo, para luego ser cargados a bordo de otros buques que los han de transportar a sus diversos destinos finales. Desde luego, las operaciones de este centro de transbordo representan una euforia económica para la economía de las Bahamas, proporcionando empleos bien remunerados y otros beneficios económicos. En resumen, es virtualmente imposible imaginar a los que viven en las islas del Caribe subsistiendo sin nuestros puertos. A través de esfuerzos tales como el Programa de Asistencia Técnica Profesional para los Puertos (PPTAP) de la Asociación Americana de Autoridades Portuarias, y otras iniciativas de intercambio de información, estamos compartiendo experiencias y conocimientos que nos ayudarán a enfrentar el doble reto de tener espacio para las actividades de carga y de cruceros, que son nuestro sustento. Juntos, estamos garantizando el futuro de los pueblos del Caribe. higher! At PB, we help our clients reach new heights. We draw on the specialized expertise of our ports & marine group, backed by the multidisciplinary skills of 10,000 professionals in 150 offices worldwide, to develop innovative approaches to strategic consulting, planning, design and construction management of ports & marine facilities. To reach higher, call or visit For career opportunities or other information about PB (Parsons Brinckerhoff), please visit w w w. p b w o r l d. c o m {15}

18 from the desk of Julián Palacio Latin American Coordinator American Association of Port Authorities {VIEWPOINT} Ports of Latin America face efficiency challenge Because they need to be efficient in today s highly competitive world market, Latin American ports are in an important phase of their development. Notwithstanding, most governments in Latin American countries have not taken the decisive actions necessary to ensure their domestic supply chains (e.g., highways, railroads and waterways) are upgraded to the point that the ports can operate at peak efficiency which most Latin American port executives will freely admit is necessary to effectively compete in the global market. Examples of Latin American port developments include: In Brazil, the government has created a Port Special Secretary s Office, at a technical ministry level (although it is still too early to judge the effectiveness of this new government position), through which to channel more than US$1 billion of transportation logistics investments annually through 2010 into Brazilian ports, the most important of them being Santos, the main port of Latin America; In México, with an approximately US$2 billion investment, the government is close to developing what will perhaps be its greatest port infrastructure achievement to date the mega-project of Punta Colonet. The government hopes this new port will channel much of the freight into the U.S. Southwest that the dual ports of Los Angeles and Long Beach do not have the capacity to receive because of expected congestion in the next few years; In Argentina, the province of Buenos Aires in developed a US$450 million public-private investment plan for projects such as dredging and port capacity expansions, among them in the province s two most important port areas the private marine terminals in Buenos Aires and at the Port of Bahia Blanca; In Chile, where the port model is one of the most advanced in the region, privatization is taking place at Talcahuano, the last remaining government-run port; In Ecuador, after many years of unprofitable attempts, the government has just privatized the port at continued on page 17 Puertos de Latinoamérica enfrentan reto de la eficiencia Debido a la necesidad de ser eficientes en el extremadamente competitivo mercado mundial de hoy día, los puertos de Latinoamérica se encuentran en una importante fase de su desarrollo. Sin embargo, la mayoría de los gobiernos de los países latinoamericanos no han tomando las acciones decisivas necesarias para garantizar que las cadenas de suministros nacionales (P.ej., carreteras, ferrovías y vías navegables) sean mejoradas al punto de que los puertos puedan operar a su máxima eficiencia algo que la mayoría de los ejecutivos portuarios latinoamericanos admiten abiertamente es necesario para competir eficazmente en el mercado global. Algunos ejemplos del desarrollo portuario latinoamericano son: En Brasil, el gobierno ha creado la Secretaría Especial de Puertos, a nivel ministerial, pero con carácter técnico (todavía es muy pronto para juzgar la efectividad de ésta nueva dependencia gubernamental), a través de la cual se ha de canalizar la inversión de más de $1.000 millones al año en los puertos brasileños el más importante de los cuales es Santos, el principal puerto de Latinoamérica para la logística del transporte. Dicha inversión anual seguirá hasta el 2010; En México, con una inversión de aproximadamente $2.000 millones, el gobierno está próximo a desarrollar lo que quizá resulte ser su mayor logro en infraestructura portuaria hasta la fecha: el megaproyecto de Punta Colonet. El gobierno espera canalizar a través de dicho puerto gran parte de la carga destinada al sudoeste de los EE UU y que los puertos de Los Ángeles y Long Beach no tienen la capacidad de recibir debido a la congestión que se anticipa en los próximos años; En Argentina, la provincia de Buenos Aires desarrolló en el un plan de inversiones público-privadas de $450 millones, destinados a proyectos tales como dragado y expansión de la capacidad portuaria. Varios de estos proyectos se realizan en las dos áreas portuarias de mayor importancia en la provincia: las terminales privadas en Buenos Aires y el Puerto de Bahía Blanca; En Chile, cuyo modelo portuario es de los más avanzados de la región, se está privatizando Talcahuano el último puerto aún controlado por el gobierno. continuado en la página 17 {16} AAPA SEAPORTS MAGAZINE

19 {VIEWPOINT} continued Guayaquil, as it did recently with the port at Manta and some years before with the port at Esmeraldas; In Panamá, the government is not only beginning the Panama Canal channel extension, but is planning to build another transshipment container port on the Pacific Ocean side of the canal; In El Salvador, the country is quickly advancing the Puerto La Unión project, with which it hopes to serve all Central America as a regional distribution logistic center; In Perú, the recently privatized container terminal at Callao (near the capital city of Lima), is expected to be one of the most promising ports on Latin America s Pacific coast; In Uruguay, the country is preparing a bid to build a dry port (a facility where cargo can be temporarily stored and transferred to awaiting trucks and trains without congestion) near Montevideo, which would solve the problem of seaport congestion there due to its constant growth during the last few years; and In Colombia, the government has just finished negotiations with private-sector contractors for a En Ecuador, después de varios años de intentos infructuosos, el gobierno acaba de privatizar el puerto de Guayaquil, como hiciera recientemente con Manta y algunos años atrás con Esmeraldas; En Panamá, el gobierno no sólo va a empezar la ampliación del Canal, sino que planea construir otro puerto de transbordo de contenedores del lado que da al Pacífico; En El Salvador, el gobierno lleva bastante adelantado el proyecto del Puerto La Unión, con el que pretende servir a toda Centroamérica como centro logístico de distribución regional; En Perú, la recientemente privatizada terminal de contenedores en El Callao (cerca de Lima, la capital) se espera que sea uno de los más promisorios puertos de la costa del Pacífico latinoamericano; En Uruguay, el país está preparando una licitación para la construcción de un puerto seco (una instalación donde la carga se puede almacenar temporalmente y luego ser pasada a camiones y trenes, sin congestión) cercano a Montevideo, lo que resolvería el problema de la congestión portuaria resultante de su constante crecimiento durante los últimos años; y forplanning,designandconstructionofportfacilities, intermodalrailandothertransportationinfrastructure ports & harbors rail & transit highways & bridges tunnels water&waterresources information management public private partnership Erik Stromberg Practice Leader, Ports & Harbors Millburn,NJ Mississauga, ON Pensacola,FL Pleasanton,CA {17}

20 {VIEWPOINT} continued concessions contract extension of its main ports, on both the Atlantic and the Pacific coasts, through 2033, during which time the contractors have agreed to make facility investments exceeding US$1 billion. Ports in Colombia I would like to take this opportunity to refer in detail to the case of Colombia, since this is a country where the most recent port expansion measures have taken place. Paradoxically, adversities which the country has had to face for many years including guerrilla terrorism and drug trafficking have helped make Colombia one of the most booming countries in Latin America and its port redevelopment measures are also booming. Although the port s efficiency has declined somewhat in recent years because of the government s indecision to extend concession agreements to private-sector operators for the port s infrastructure, this situation was just resolved with an agreement that permits the port to extend private-sector concession investments up to the year (Cartagena had already negotiated with the government a decade before to extend a concession agreement with which it had already began making new infrastructure investments.) The latest agreement should give new energy to prepare Colombia s ports to handle increasingly challenging international competition. Being aware that expected efficiency for the country s ports could only be achieved with infrastructure, equipment and technology investments, the government of Colombia moved two years ago to develop an experimental quality-assurance program with Andean Development Corp. CAF, Guarantee Brand Foundation of Valencia Autonomous Government, Spain, and Valencia Port Foundation. In April, these three groups created a not-for-profit entity, the Latin American Association of Port Quality. To offer the customer an integral guaranteed service, it is necessary that all links of the [logistics] chain are committed to be adjusted to specific standards and its services meet the minimum characteristics, said Mr. Enrique Sapiña Lleó, manager of the Guarantee Brand Foundation. It would not be useful for enterprises to develop by themselves a good job, if other enterprises involved in the chain would not follow the same job level, since services quality is determined, in many cases, by the weakest link or which link operates the worst in the chain. In relation to the containerports of the four countries with which the Latin American Association of Port En Colombia, el gobierno acaba de finalizar las negociaciones con contratistas del sector privado para la extensión de los contratos de concesión de sus principales puertos tanto en el Atlántico como en el Pacífico hasta el 2033, durante cuyo tiempo los contratistas han acordado invertir en exceso de US$1.000 millones en instalaciones portuarias. Puertos en Colombia Me gustaría tomar esta oportunidad para referirme en detalle al caso de Colombia, ya que este es un país donde se han tomado las más recientes medidas con relación a la ampliación portuaria. Paradójicamente, las adversidades que el país ha tenido que afrontar durante varios años incluyendo el terrorismo de guerrilla y el tráfico de drogas han hecho de Colombia uno de los países más pujantes de Latinoamérica, y sus medidas de desarrollo portuario también están resonando. Aunque la eficiencia del puerto ha decaído un poco en años recientes, debido a la indecisión del gobierno de extender los convenios de concesión para la infraestructura portuaria a operadores del sector privado, esta situación se acaba de resolver mediante un convenio que le permite al puerto extender las concesiones para la inversión del sector privado hasta el año (Cartagena ya había negociado con el gobierno una década atrás para extender un convenio de concesión con el que ya había comenzado a realizar nuevas inversiones en la infraestructura.) El más reciente convenio debe inyectar nuevos bríos para preparar a los puertos de Colombia para hacer frente a la cada vez más intensa competencia internacional. Conscientes de que la eficiencia prevista para los puertos del país sólo se podrían lograr con inversiones en infraestructura, equipos y tecnología, el gobierno de Colombia decidió dos años atrás crear un programa experimental de garantía de calidad con la Corporación Andina de Fomento (CAF), la Fundación Marca de Garantía del Gobierno Autónomo de Valencia, España, y la Fundación Valenciaport de la Autoridad Portuaria de Valencia. En abril, estos tres grupos crearon una entidad sin fines de lucro denominada Asociación Latinoamericana de Calidad Portuaria. Para ofrecerle al cliente un servicio integral garantizado, es necesario que todos los eslabones de la cadena (de logística) se comprometan a que su actuación se ajustará a estándares específicos, y que sus servicios cumplirán con las características mínimas, dijo el Sr. Enrique Sapiña Lleó, gerente de la Fundación Marca de Garantía. De poco serviría a las empresas desarrollar por sí solas un buen trabajo en ese sentido, si otras empresas involucradas en la cadena no secundaran al mismo nivel su labor, dado que la calidad de los servicios viene determinada, en muchos casos, por la calidad {18} AAPA SEAPORTS MAGAZINE