1. The Port of Long Beach: A major U.S. hub for global trade
As international business students, your primary focus is on the import-export trade.
Chances are sooner or later you’re going to have to do business at a seaport.
Certain high-end, expensive items are shipped by air.
But most of the world’s imports and exports are moved by ship. As you know, it’s the most cost effective way to ship goods.
I’m know that a lot of your studies focus on global business issues – the global perspective.
For today, I’m going to focus in a bit and give you a perspective of a U.S. seaport.
How a U.S. Port operates.
What types of products come through the Port.

2. Port of Long Beach
Premier gateway for U.S-Asia trade, major Southern California economic engine
What are some of our major trading partners globally.
What are some of our advantages as a West Coast Port
I’ll talk about some of the competitive challenges we are facing.
How we are addressing and overcoming those challenges.
I’m also going to talk about how we are addressing environmental challenges.
So let’s get started…

3. No Tax Dollars
Revenues come from leasing marine terminals, with net income reinvested in Port improvements.
The Port of Long Beach is a premier U.S. gateway for trans-Pacific trade, served by more than 140 shipping lines with connections to 217 seaports around the world.
About 4,000 ships call here every year, and as the second-busiest container seaport in the United States, we handle a wide range of cargo valued at $155 billion annually.
Much of what you find in your shopping mall came through the Port.
Most of our trade is with Asia, and roughly two-thirds of that is with China.

4. Commissioners
Appointed by Mayor, confirmed by City Council, five-member Harbor Commission governs the Port.

5. Supporting the Economy
1 in 8 Jobs
in Long Beach*
Trade through the Port supports one in every eight jobs here in Long Beach and more than 300,000 jobs in the region.
30,000 people employed in goods movement-related work

6. $180 billion a year
Imports include furniture, electronics, clothing, footwear and toys. Exports include waste paper, cotton and leather hides.

7. Long Beach Container Cargo Volume
2013 was 3rd busiest year in port history behind 2006 and 2007

8. Long Beach Container Totals Up
Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers

9. Diverse Cargo
3,200-acre Port moves cars, crude oil, petroleum coke, lumber and container cargoes.

10. 2nd Busiest U.S. Container Port Port of Long Beach
Millions of Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers

11. Ports of Long Beach, Los Angeles
9th Busiest
Port Complex in the World
Millions of Twenty-foot Equivalent Units (TEUs) or 20-foot-long containers

12. Top Exports
By weight, the leading outbound commodities are petroleum coke, petroleum products, coal, chemicals and minerals.

13. 4,136,000 pet coke = 2 million cars tons of
More than 4 million metric tons of pet coke exported in FY2013.
Mostly shipped to Japan and China.
Can be used as a fuel, or to manufacturer steel and aluminum.
Petroleum coke is residue from refining of crude oil.
If not exported, then disposed.
Like disposing of 2 million cars each year.
Equivalent weight.

14. Top Imports
By weight, the leading inbound commodities are petroleum, machinery, vehicles, minerals and chemicals.

15. 18,000,000 crude oil = 6.75 billion gallons of gasoline tons of
18 million metric tons of crude oil was imported through Long Beach in FY2013.
This oil came from Iraq, Mexico, Ecuador, Panama, Canada, Russia.
If all of the crude oil was refined into gasoline, the 18 mil metric tons would produce nearly 7 billion gallons of gasoline for our cars.

16. Top Box Imports
By containers, the leading inbound products are furniture, apparel, electronics, metal goods and toys.

17. Top Box Exports
By containers, the leading outbound products are wastepaper, foods, metal goods, plastics and animal feed.

18. Top Trading Partner China accounts for
two-thirds of Long Beach’s import containers and
half of exports.

19. Competitive advantages
Frequency
With more ship calls and bigger facilities, Long Beach provides greater flexibility.
Our advantage is the flexibility shippers have in moving goods through Southern California.
We have the port facilities to handle more ships, and the biggest ships.
We have more trains.
And more trucks.

20. Reliability
Served by BNSF and UP railroads, Long Beach is connected coast to coast.

21. % Imports Shipped by Rail
38%
Off-dock 6%
Near-dock
We give you multiple options for moving cargo by train.
38% of our imports goes directly on trains, either on-dock, near-dock and off-dock, and heads across the country
-- 24% ondock (20% in POLB, and 27% in POLA)
-- 6% ICTF
-- 8% off-dock at East LA
30% is transloaded, re-loaded into domestic containers, before being loaded onto trains.
This is first trucked out of the ports.
Then transloaded and sent to off-dock yards in East LA, Colton, San Bernardino
32% is trucked and STAYS LOCALLY
24%
On-dock

22. Nation’s Largest Distribution Network
The Port is supported by 900 million square feet of warehouses and distribution centers.
Footwear giant Skechers opens $250 million distribution center in 2011 in Moreno Valley in Riverside County.
The Skechers facility includes a building that is designated as a Port of Long Beach Foreign Trade Zone, to avoid duties while products are prepared for export.
Highland Fairview, developer of the Skechers center, is proposing to build 41.6 million sf of additional distribution centers in Moreno Valley.

23. Big Ships Coming
Of new vessels on order, more than half of capacity will come from 10,000-TEU-plus ships.
Source: Alphaliner, March 2014

24. 12,500-TEU Ship The MSC Fabiola arrived in March 2012 .
Our industry is entering the “Big Ship Era” and the Port of Long Beach is one of the few U.S. ports that can welcome today's biggest ships.
Our wharves, terminals and even our bridges have to be modified to accommodate these giant ships and offload their goods onto the network of trucks and trains destined for every congressional district in this country.
After years of investment in deep-water berths and mega-terminals, Long Beach welcomed a series of the biggest container ships to ever call at a North American port in 2012, culminating with the arrival of a nearly 14,000 TEU vessel.
A “TEU” is a twenty-foot equivalent unit, which is equal to one 20-foot-long cargo container.
One of the biggest ship last year is already too big to pass through what will be the expanded Panama Canal that is opening in 2015.
The larger ships are more efficient and cleaner, both at sea and in port.
The Port of Long Beach is Big Ship Ready with its commitment to first-class facilities, infrastructure, customer service and the development of green and sustainable operations.

25. 13,000 TEUs
The MSC Altair came in July 2012.

26. Largest to Call North America
The 13,800-TEU MSC Beatrice came in Sept –too wide to pass through the expanded Panama Canal.

27. Maersk Line has ordered 20 18,000-TEU vessels, which will be phased in gradually over the next couple of years on the trade route between Asia and Europe, with the first due for delivery at the end of June 2013.
China Shipping placed an order in early 2013 for five 18,000-TEU ships.
Really Big Ships
Maersk and China Shipping have ordered 18,000-TEU vessels.

28. As Tall As… 14,000 TEU Ship (1,250 ft.) Boeing 747 7,100 TEU Ship
USS Nimitz
(1,092 ft.)
14,000 TEU Ship
Empire State
Building
(1,454 ft.)
(1,250 ft.)

29. As Wide as…
A 14,000-TEU vessel is 167 feet wide, larger than a 10-lane freeway.

30. Investing in the Future
To continue our positive momentum, the Port is investing $4.5 billion this decade to modernize our facilities even further to meet evolving industry needs.
It's the biggest capital improvement program at any U.S. port.
Recently, the Long Beach Board of Harbor Commissioners approved a $788 million FY 2014 capital improvement budget – the Port of Long Beach’s biggest ever.
Investing in the Future
The Port has begun a $4.5 billion upgrade of its facilities to stay competitive

31. Middle Harbor
305-acre facility will be one of the most technologically advanced terminals in the world.
The improvements include our $1.2 billion state-of-the-art Middle Harbor terminal.
This 305-acre facility will be one of the cleanest and most efficient container terminals in the world.
It’s capacity is 3 million TEUs – more than double the current capacity with half the air emissions.
Currently our six container terminals are averaging roughly 1 million TEUs each.

32. Before Construction Pier E Pier F F 10 F 6 E 26 E 24 E 22
To help you see how many projects we’re working on at the same time, and our time line, let me show you this animation.
(Click, animation).
As you saw, this is a very big, challenging, but very exciting program for us.
Now let me discuss how Phase 2 is shaping up.
E 26
E 24
E 22
1 million-TEU capacity

33. $1 billion Gerald Desmond Bridge Replacement
We are also moving forward with our $1.1 billion replacement for the Gerald Desmond Bridge, which carries 15 percent of all imports brought from overseas into the U.S.
The iconic new bridge will become an exciting addition to the Southern California skyline.
Our capital plan also includes a billion-dollar investment in railroad infrastructure to provide speedy, safe and efficient access in and out of the Port.
As a result of all this investment, more than 5,000 construction jobs were created in 2012.
And putting hard hats to work is just a side benefit of keeping the Port competitive and growing, so that we support even more permanent, trade-related jobs.
Desmond Bridge Replacement
Roadway for iconic cable-stayed bridge will rise 200-feet above the water

34. The Green Port
Long Beach leads the way in reducing impacts of Port operations with Green Port Policy and Clean Air Action Plan
Of course we must protect our environment as we take advantage of the opportunities to grow.
In 2005, the Port of Long Beach committed to a Green Port Policy, which is now integrated into every aspect of Port operations.
In 2006 we adopted a Clean Air Action Plan.
Our Port team has been amazingly innovative and effective with both cleaner operations and new technology.
Green Flag, Clean Trucks, Shore Power --- program after program has been successful in improving air quality.

35. Clean Trucks
Port program replaced 11,000 vehicles, reducing truck emissions by 90%.
Certainly at the top of the list of our green successes is the Clean Trucks Program.
All of the 11,000 drayage trucks that serve the Port of Long Beach are newer, cleaner models.
And the best news is that there's a 90% reduction in air pollution from the truck fleet.

36. Pier Pass
To ease congestion, terminal operators charge a daytime fee to encourage nighttime trucking operations.
Before PierPass was created in 2005, the ports and nearby roads were congested because nearly all trucks worked during the day.
To ease congestion, terminal operators now charge a daytime Traffic Mitigation Fee of $133 for a forty-foot container.
This has encouraged a shift to free nighttime and weekend PierPass OffPeak gates.
The PierPass gates have grown to handle approximately 55 percent of all container traffic at the ports, accommodating more than 23 million truck transactions, and greatly eased congestion on city streets and nearby freeways during daytime business hours.

37. Plugging In
Beginning in 2014, half of the container ships will plug in for shore power while at berth.
We’ve also been moving forward with shore power, which allows ships to plug into clean electricity while docked.
The Pier C shipping facility operated by Matson Navigation and SSA Terminals recently became the latest Port of Long Beach terminal to be equipped with shore power.
Pier G (ITS and K Line) have shore power.
BP’s oil terminal has shore power.
By 2014, all six of our container terminals will have shore power capabilities.
Half of all container ships will have to plug in for power.
By 2020, 80 percent of container ships will have to plug in.

38. Green Flags
96% of vessels slowed within 20 miles to reduce air emissions; and 83% slowed with 40 miles.

39. -81% Since 2005 Reduced Emissions Improving Air Quality
The Port has cut diesel pollution by 81%, on its way to becoming the world’s first
zero-emissions port
The bottom line is that since 2005, the Port has reduced diesel pollution by more than 75 percent.
And our goal is to be the world's first zero-emissions port.

40. The Port has awarded $15 million in mitigation grants to offset the environmental impacts of Port operations.
The grants have funded filters on air conditioning systems at schools and senior facilities.
Projects include a mobile respiratory health clinics.
And to reduce greenhouse gases, the port is funding gardens and tree plantings.
Digging In
Port mitigation grants are funding the planting of 6,000 trees in Long Beach.

41. Learning Games
Youngsters learn about Port operations at civic and neighborhood events.

42. Inform and Engage
The Port hosted a weekend of train tours for 2,500 visitors.

43. The Future is Big
We face big challenges, but we see big opportunities that will bring a promising future to the Port of Long Beach
We believe our Future is Big.
Thank you!

44. Staying connected www.polb.com www.facebook.com/PortofLB
Stay informed and visit the Port’s website. You can sign up to receive the latest information about various projects, community tours, education programs and services.
Become a friend of the Port
Follow the Port on Twitter
And check out our award winning videos on Youtube.