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PORT

SprInG/SUMMEr 2006

por t of oa kl a nd n EWS MaGa ZI nE

news

Maritime Director on

Global Commerce

ata launches Hawaii flights · China Conference · Waterfront access

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contents

features

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14 21 25 28

opEnInG Up tHE WatErfront Port Creates Public Access for All to Enjoy

tHE fUtUrE of Global CoMMErCE & port opEratIonS An Interview with Maritime Director Wilson Lacy

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port SponSorS tHE 5tH annUal CHIna ConfErEnCE

INTERNATIONAL RELATIONS MARITIME AVIATION

Vietnam trade mission; Sharing expertise in Morocco; Hosting a Japanese delegation

Strategic Alliance with Port of Sacramento; Mega-ships call Oakland; Record-setting year

5 FROM THE EXECUTIVE DIRECTOR 7 FROM THE BOARD PRESIDENT 8 AROUND THE PORT

Commissioners' Reception; Union Point Park; Maritime personnel update

ATA launches Hawaii flights; Concession opportunities at the Airport; Master Plan open house

30 THEN AND NOW

Maritime operations

SUSTAINABILITY

Reducing emissions; New public access video and map; Port employees give from the heart

SPRING/SUMMER 2006 ·

port of Port Commissioners 2005/2006 of oakland Oakland Board

GovErnanCE

The Port of Oakland is governed by a seven-member Board of Port Commissioners. The Board oversees the use of income from Port properties, approximately 16,000 acres stretching from the borders of Emeryville in the north to San Leandro in the south. The commissioners are nominated by the Mayor and appointed by the City Council. They are residents of the City of Oakland and serve staggered four-year terms without compensation. Their responsibilities are vast and require a great deal of their time, all donated to the Port.

PORT

news

Port of Oakland News Magazine SPRING/SUMMER 2006 ExECUtIvE dIrECtor

Jerry Bridges

dEpUty ExECUtIvE dIrECtor

Joseph Wong

dIrECtor of avIatIon kEnnEtH S. katZoff ­ President

Partner in the law firm of Katzoff & Riggs

Steve Grossman

dIrECtor of MarItIME

Wilson Lacy

dIrECtor of CoMMErCIal rEal EStatE antHony a. batarSE, Jr. ­ First Vice President

President and Chief Executive Officer of Lloyd A. Wise, Inc.

Omar Benjamin

pUblISHEd by

The Communications Division

darlEnE ayErS-JoHnSon ­ Second Vice President

Principal of Ayers-Johnson & Associates, Executive Director of "Friends of Faith" Fancher, a non-profit health organization

dIrECtor of CoMMUnICatIonS

Harold Jones [email protected]

ManaGEr, CoMMUnIty & pUblIC rElatIonS frank kIanG ­ Commissioner

Chairman of the Board, President and Chief Executive Officer of Metropolitan Bank and its holding company, Met Financial Corporation

Diann Castleberry [email protected]

ManaGInG EdItor

Marilyn Sandifur [email protected]

davId kraMEr ­ Commissioner

Executive Director Emeritus of Social Services Union­ American Federation of Nurses Local 535, Service Employees International Union; Labor Relations Consultant

art dIrECtor

Vaughn Filmore [email protected]

ContrIbUtorS

Diane Fraser, Rosemary Barnes, Cheryl Friedman, Doug Mansel, Meg Vasey, Lila Zinn, Jo Ann Yoshioka-George, Pamela Bell, Richard Sinkoff, Robert Bernardo, Monica Tell, Tim Leong 530 Water Street Oakland, CA 94607 Phone: 510.627.1100 Fax: 510.839.1766 www.portofoakland.com

JoHn protopappaS ­ Commissioner

President and Chief Executive Officer of Madison Park REIT

patrICIa a. SCatES ­ Commissioner

Senior Vice President and Regional Manager of Wells Fargo East Bay Commercial Banking

· PORTNEWS

from the executive director

Creating a high-performing enterprise

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ur vision is to be a world-class port, serving the traveling public and national and international transportation providers. This issue of Port News substantiates we are well on our way to achieving just that. With our new strategic business plan, we are making Port customers and stakeholders our first consideration in all that we do. We are creating a high-performing enterprise by engaging all employees as agents for improvement and change, and we are strengthening our financial stability by increasing revenue and giving careful attention to expenses. At Oakland International Airport, the Terminal Improvement Program is well underway. We are attracting new concessionaires and we extend a hearty welcome to ATA Airlines. All of these endeavors will make flying from OAK more convenient and pleasurable for travelers. (See pp. 25 to 27.) The Oakland seaport continues its record-setting growth, largely due to our having prepared for the future when making our plans to improve our marine terminals and intermodal facilities to support more trade with Asia. This summer, we will take possession of a portion of the former Oakland Army Base, where we intend to expand and enhance our connections with the railways that are vital to the efficient movement of goods. (Read more about the global shipping industry in an interview with Wilson Lacy, Director of Maritime, see p. 18.) We also are strengthening and developing relationships with ports and shippers around the world. In April, we welcomed shipping industry representatives and other executives to the 5th Annual China Conference here in Oakland. The event was geared for those either currently engaged in or looking to enter China-North America commerce, which is rapidly growing. (See pp. 12 to 13.) In recent months, Port officials have traveled to Morocco and Vietnam to share information and build the foundation for new business relationships. In closing, I want to recognize a technological innovation that made possible much of our growth: containerization. Ben E. Nutter, the Port's Executive Director from 1962­1977, helped make the transition to containerization here in Oakland. Fifty years ago Malcolm McLean created this new way of handling cargo that dramatically reduced shipping costs and created a wave of international trade that has yet to reach its peak. We intend to ride that wave, putting in place the people, technology and infrastructure needed in the 21st century. Jerry Bridges

Executive Director, Port of Oakland

SPRING/SUMMER 2006 · 5

Community Giving

The Port of Oakland and its employees are committed to helping others whether through monetary donations to worthwhile causes or volunteerism. To date Port employees have given over $400,000 in scholarships through the Asian Employees Association and the Port of Oakland Employees Scholarship Program. Port employees, through an annual giving campaign, donated over $191,000 to local charities for 2005. The Port has given over 650 computers to schools and organizations in need of technology tools.

Due to the extraordinary disasters in 2005 both in the U.S. and overseas, the Port established matching funds to raise a combined total of over $78,000 for Tsunami and Katrina Relief.

Working for you to make a difference... www.portofoakland.com

from the board president

local governance generates local benefits

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his winter, Congress debated the possibility of a foreign-owned company operating six U.S. ports. Along with security concerns, issues of local control also were raised. Here at the Port of Oakland, the Board of Port Commissioners is responsible for setting policies governing all Port operations at the Oakland seaport, Oakland International Airport (OAK), and in our Commercial Real Estate and other activities. We take this responsibility seriously and are proud of the growth Oakland has achieved. (See chart, p. 24.) Job growth is part of that success. Through the efforts of our Employment Resources Development Program and our Port tenants, we have placed 1,700 people in jobs and generated $10 million in earned wages over the past five years. Looking more broadly, the Port's economic impact in the region is responsible for supporting some 55,000 jobs, and for approximately 668,000 related jobs nationwide. We continue to plan for growth at Oakland International Airport. The Board of Port Commissioners recently approved the Airport's Master Plan. This plan, which was developed by Airport staff and was shaped by a Stakeholder Advisory Committee composed of representatives of neighboring cities, community groups and Airport tenants, will guide Oakland International Airport's future over the next 20 years. (See p. 27.) More proof of the Port's commitment to local communities can be seen in our new video and brochure featuring public access at the Port of Oakland. These highlight some of the beautiful parks, trails and open spaces that the Port has created along the waterfront. (See p. 28.) We have opened up more than 1,000 acres for the public to explore and enjoy. The video is being broadcast on Oakland's public access TV channel and the brochure will be available on the web site. On behalf of the board, we remain firmly committed to our mission: "...enhancing the economic, social, and environmental well-being of the City of Oakland and the region, while generating earnings to reinvest in our activities." Underlying all of our actions is a genuine desire to build positive, lasting relationships with our neighboring communities and with public agencies. These collaborative partnerships are crucial to maximizing the Port's economic benefits to the region. We thank our community and business partners and all of our stakeholders for working with us to create lasting mutual benefits for current and future generations. Kenneth S. Katzoff

Board President, Port of Oakland

SPRING/SUMMER 2006 ·

around the port

reception honors port board officers

1. Port Board President Kenneth S. Katzoff (L), Port Board second Vice President Darlene Ayers-Johnson, Oakland Councilmember Nancy Nadel (R) 2. Oakland Council President Ignacio De La Fuente . Port Board first Vice President Anthony A. Batarse, Jr. . Alameda County Administrator Susan Muranishi (L), Port Board second Vice President Darlene AyersJohnson, President of the Alameda County Board of Supervisors Keith Carson (R)

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port's new airport Concessions disadvantaged business Enterprise program-- first in U.S. to receive faa approval

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Bernida Reagan, Director of Social Responsibility

he Port of Oakland, owner/operator of Oakland International Airport, is the first agency in the U.S. to obtain FAA approval for its new Airport Concessions Disadvantaged Business Enterprise (ACDBE) program. The new program was developed to meet new FAA requirements for all airports. Oakland International Airport (OAK), as a large hub airport,

submitted its proposed program well ahead of schedule. The goal was to obtain approval quickly, in anticipation of the Concessions offerings contained in OAK's Terminal 2 extension and new opportunities opening up in 2008. That submittal followed outreach and solicitation of input into the program from the local and DBE community. FAA approval came March 24, 2006.

· PORTNEWS

around the port

Union point park

Children flying kites during the grand opening of Union Point Park.

On September 10, 2005 the Oakland community celebrated the Grand Opening of Union Point Park. The festivities included music, children's activities, food and a formal dedication ceremony. The park reflects the vision and collective efforts of a broad range of community groups, agencies, and individuals including the Unity Council, the Trust for Public Land, the City of Oakland, the Port of Oakland, the University Oakland Metropolitan Forum, PGA Design, and Mario Schjetnan of Grupo de Diseno Urbano. This nine-acre park offers waterfront access, park activities, and attractive open space.

Mac at Sea

Guest speaker Clarence Thomas of ILWU local 10 engaged high school students in a discussion about career opportunities in the maritime industry as part of the Mac At Sea program.

"We are thankful to the Oakland Board of Port Commissioners, the Port's senior management, our legal department and our colleagues in the community for their support in the creation of this new program," said Bernida Reagan, Director of the Port's Social Responsibility Division at a public outreach forum in February. "We look forward to working with all of you to help us meet and exceed our goal over the next three years," added Reagan. "In designing our program and goal, we looked at upcoming opportunities, availability of DBEs in our market area to provide goods and services, and past participation of DBEs in our concessions programs," stated Cleminatu McKinney with the Port's Social Responsibility Division (SRD). "The FAA approved our three-year goal of 18.7%.

That represents an average level of inclusion for disadvantaged businesses on all concession opportunities that we anticipate during that period," added McKinney. The opportunities include food and beverage, retail, indoor advertising, telecommunications, business services, baggage, luggage and carts and personal services. The Port will use various methods to secure the participation of disadvantaged businesses. These will include structuring of concession opportunities, outreach to small business groups and minority chambers, bonding and financing support, distribution of information through the media and the internet, and business development assistance through the Port's many partnerships with local agencies and technical assistance providers.·

SPRING/SUMMER 2006 ·

around the port

Maritime Changes--moving forward

new General Manager, Maritime operations, Marketing and Security

Mr. Ray King is the Port of Oakland's General Manager of Maritime Operations, Marketing and Security. The Maritime Division has annual revenue of approximately $150 million dollars and is one of three business lines at the Port along with Aviation which operates Oakland International Airport and the Port's Commercial Real Estate Division, which oversees more than 1,000 acres of Port property. King's customer responsibilities include: Shipping lines, terminal operators, railroads, truckers and various logistics service providers. He also interfaces with the local business community, citizen and neighborhood groups and environmentalists. In addition to his other duties, King directs the teams responsible for the maritime division's Radio Frequency Identification (RFID) pilot program, the Global Positioning System project and the electronic payment program. Prior to assuming his current responsibilities, King worked on major contracts and procurement. King has also worked as a consultant for KPMG, an international accounting firm. He has a graduate degree in business from Stanford University.

Maritime Manager of Marketing and business development

Mr. Ron Brown has been appointed Manager of Marketing and Business Development in the Port of Oakland's Maritime Division. Brown has been a leader on the maritime marketing team for the past year. Brown comes with extensive experience in marketing, development, and planning within the commodities and transportation sector. Brown has his MBA from Duke University. In this new position he has been developing and implementing strategic marketing initiatives to support Port of Oakland customers in the rapidly growing global market.

port facilities Security officer

Mr. Mike O'Brien, former Commander, United States Coast Guard, now retired, will head the Port of Oakland's seaport security efforts in the new position called Port Facilities Security Officer. The Port of Oakland's General Manager of Maritime Operations, Mr. Ray Boyle retired. Following 9/11 Boyle handled seaport security at the Port of Oakland. The Port is thankful for Boyle's 31 years of service and his dedication to establishing a quality baseline level of security at the Oakland seaport. O'Brien has spent over 25 years with the U. S. Coast Guard, the first 23 as an officer, attaining the rank of Commander. O'Brien most recently served two years on the Eleventh District staff as the Port Security Specialist for the entire District. His assignment in that position focused on implementation of the provisions of the Maritime Transportation Security Act. One of O'Brien's first tasks is to work on the next round of federal seaport security grant applications.

new Chief Wharfinger

The Port of Oakland has a new Chief Wharfinger. Mr. Chris Peterson has been promoted to the position following the retirement of Mr. Dave Adams. Adams retired in 2005, and the Port is thankful for his 24 years of dedicated service. Peterson has been a part of the Maritime Division's team of wharfingers responsible for monitoring and managing the Port's Maritime Division property for 14 years. The wharfinger is the key contact for a Port maritime tenant and acts as a property manager, facilitator and ombudsman. As Chief Wharfinger, Peterson will be responsible for the wharfinger team.

10 · PORTNEWS

around the port

Port Promotes

A recent group of Relief Airport Custodians, pictured with the Airport Coordinators, Human Resource staff and ERDP staff. Front row from left--Patricia Seals, A/P Coordinator, Gishela Portugal, HR Technician. Relief Custodians: Marie Raspberry, Victoria Lara, Carlos Silva, Wogenie Kassa and Mario Morale. ERDP staff: JoAnn Yoshioka-George, Supervisor; Port Job Researchers: Renee Abraham, Pamela Bell and Lawrence Sumpter (not pictured) Top row from left--Kevin Young, A/P Coordinator, Relief Custodians: Rupert Malbrue, Fitsum Chiffa, Prophet Sarhim and Derrick Mapp.

JOBS

"We contribute directly to achieving the Port's mission of enhancing the economic, social and environmental well being of Oakland and the region," said Jo Ann Yoshioka-George, ERDP Supervisor."Since 2000, we have placed 1,700 people in jobs where they have earned $10 million in wages." Prophet Sarhim, another Relief Custodian at the Airport added his endorsement, "ERDP was a great service in that it assisted me in job research and placement. The staff was very informative and persistent in helping me find gainful employment." More information is available at www.portofoakland.com. Click on Job Center, then ERDP. ·

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ata entry clerks, security guards, administrative assistants--since 1980, the Port's Employment Resources Development Program (ERDP) has placed thousands of people in jobs with Port tenants. Rupert Malbrue is one of them. Malbrue first came to the ERDP when he was laid off by the Oakland Unified School District. After a year of diligent searching, he was hired by Kaiser Air as a Gate Security Guard. After two-and-a-half years in that position, the firm replaced the guards with technology and Malbrue returned to ERDP for assistance. This was a stressful time for Malbrue. His wife worked, but her income alone could not support them and their 9-year-old daughter. When the phone

rang with the news that Malbrue had landed a job as an Airport Relief Custodian, he was elated. "This job came right on time," he said. "Christmas was just around the corner and unemployment was about to end. I love working at the Airport and being part of the swing shift." The ERDP, a department within the Social Responsibility Division, works collaboratively with Port tenants and other Port departments to place candidates. Its job list, updated monthly, includes an average of 100 open positions. The list is posted on the Port's Website and is distributed to community organizations. The ERDP also promotes its services at job fairs and other community events.

SPRING/SUMMER 2006 · 11

international relations

ChinA

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ith trade between China and North America topping $260 billion, there was plenty to talk about at the 5th Annual China Conference, presented by Marine Digest & Cargo Business News and sponsored by the Port of Oakland. This premier event was an opportunity for shippers, importers, exporters, carriers and logistics/transport professionals, transportation infrastructure experts, port professionals, economists and policymakers to exchange ideas, network and pursue new business opportunities. The conference featured a world-class panel of economists, market analysts and policy experts who discussed China's vital role in the global economy. It also included presentations from experts and industry leaders from every segment of the market, among them:

5th Annual

Port Sponsors

Conference

· China-North America economic, trade and policy issues · China-North America Transportation Leaders' Forum · China Shipper Case Studies--supply chain business models · China's Distribution Network · China's Emerging Middle Class and What China is Buying "Industry experts anticipate that trade with Asia will double by 2020 and imports to the U.S. will triple," said Jerry Bridges when asked about the importance of trade with China. "Three of the top ports by volume of business and seven of the fastest-growing ports in the world are in China. Obviously, this is a market we are keenly interested in. We are proud to be the principal sponsor of this conference here in Oakland and provide a forum for important perspectives on trade with China." ·

12 · PORTNEWS

international relations

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technology development and his company's recent acquisition of logistics service provider G-Log. . Julia Saia, Director, Global Supplier Performance, The Home Depot, emphasized the importance of learning to speak Chinese and gaining a basic understanding of Chinese culture and history in order to create successful business partnerships in China. 5. John k. C. Cheng, Honorary Advisor China Railway Container Transport Corp. Division of Ministry of Railways, Peoples Republic of China, updated conference attendees on the growth of intermodal rail in China and other important developments and challenges.

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1. Port of Oakland Deputy Executive Director Joseph Wong moderated a panel of China-North America Transportation leaders discussing supply, demand, sustainable transport, capacity, growth and collaboration efforts between the two giant regions of commerce. 2. Keynote speaker James l. McGregor and author of One Billion Customers: Lessons from the front lines in doing business in China talked about his 15 years of experience as a resident of China, a foreign correspondent, and a businessman. . Keynote speaker Jon S. Chorley, Vice President, Supply Chain Execution and Product Management Strategy, Oracle, focused on a China-U.S. supply chain presentation including groundbreaking RFID

SPRING/SUMMER 2006 · 1

international relations

vietnam

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ort Commissioners Anthony A. Batarse, Jr. and Darlene AyersJohnson, accompanied by the Port's Director of Communications Harold Jones and Port Attorney David Alexander, traveled with Vietnam's Consul General Dr. Tran Tuan Auhn to Ho Chi Minh City (formerly Saigon), Da Nang and Hanoi in February 2006. Other Bay Area business people and representatives from the Stanford Hospital and Clinics rounded out the delegation. The trip resulted in a formal Memorandum of Understanding with the two Vietnamese ports agreeing to cooperation and developing a meaningful relationship offering assistance and advice on port management, marketing, design and operation of their ports. ·

tradE MISSIon

"Our message to everyone we visited was that the Port of Oakland is interested in learning more and in developing what we hope will be a long-lasting relationship with Vietnam's two major seaports in Ho Chi Minh City and Danang," Port Commissioner Batarse said. "The government has aggressive plans for developing these two ports, which are only two of nearly 100 ports in Vietnam," Port Commissioner Ayers-Johnson said. "Vietnam is a country on the move. Its people have tremendous energy and pride."

1 · PORTNEWS

international relations

Exchanging Environmental Expertise in Morocco

Morocco visit

Above left--Boats berthed at the Port of Agadir. Above right--Port of Oakland's Richard Sinkoff (L) with Port of Agadir team.

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he Port of Oakland is offering its environmental expertise to one of the United States' oldest allies, the kingdom of Morocco. Environmental Planning Supervisor Richard Sinkoff and John Betterton, Secretary to the Board of Port Commissioners, traveled to Morocco in December 2005 on a technical assistance mission. Their trip was part of a Cooperative Agreement signed with the Port of Agadir in 2004. The agreement promotes exchanges related to the environment, security, port management, engineering, cargoes and communication.

The focus of the visit was a two-day workshop to develop pilot projects addressing Agadir's critical environmental challenges. Sinkoff later presented the workshop's findings and recommendations to the General Director of all of Morocco's ports in Casablanca. They included measures to: · Reduce contamination of fruits and cereals for export by cargoes held in the mineral port. · Design open space to enhance Agadir's visual image. · Remove and treat fish-processing waste and debris from vessels.

In February 2006, the Port of Agadir sent its first implementation plans for the pilot projects to the Port of Oakland for review. "We are very pleased to have had this opportunity to share with the Port of Agadir Oakland's model for participatory planning which values input from port stakeholders," said Richard Sinkoff. "Strengthening relationships and reaching out in new ways with our international colleagues is an important part of promoting goodwill between the Port of Oakland and other parts of the world," Sinkoff concluded. ·

Japanese delegation visits port

Left--The Japanese Aichi Prefectural Assembly visited the Port of Oakland in February 2006 to broaden its understanding of California state and municipal governments and to study some of California's experiences with industries such as agriculture, hi-tech and tourism promotion.

SPRING/SUMMER 2006 · 15

opening Up the Waterfront

Port Creates Public Access for All to Enjoy

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he Port of Oakland is vital to the Bay Area economy--goods move through its seaport, people through its airport. And increasingly, the Port is integral to the region's environment--opening up the waterfront to the public, attracting families, boaters and bicyclists, and offering protection to wildlife and wetlands. The first transformation along the waterfront was Jack London Square, which opened more than 50 years ago. Since then the Port of Oakland has opened a half-dozen parks, cleared a continuous shoreline path from High Street along East Creek and the Damon Slough and created salt marshes and wetlands to shelter waterfowl, fish and native plants. Environmental responsibility is an important part of the Port's mission. The Port's efforts to protect, enhance and make the waterfront accessible also are part of its commitment to being a good neighbor. Come enjoy the waterfront! For more information about public access, log on to the East Bay Regional Park District's website at www.ebparks.org or call 510-562-PARK, log on to the City of Oakland's website for its Parks and Recreation Department at www.oaklandnet.com or call 510-238-PARK, or log on to the Port of Oakland website at www.portofoakland. com or call 510-627-1100. ·

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MIddlE Harbor SHorElInE park facilities: picnic/BBQ areas, bike and pedestrian paths, observation tower and overlooks, playing fields, beach, amphitheater, fishing pier and boat launch, interpretive historical and natural resource signs, restrooms, parking lot. Hours: dawn to dusk, with a curfew from 10 p.m. to 5 a.m. location: at the end of Middle Harbor Road/7th Street, Oakland. public transit access: AC Transit line 13.

JaCk london SqUarE facilities: shops, restaurants, cafés and bars, marinas and guest berths, walkways and plazas, picnic areas, fishing pier, restrooms, parking. directions: located at the foot of Broadway; from downtown Oakland, pedestrians, bicyclists and cars can follow Broadway south; from the east, pedestrian and bicycle access along the Shoreline path, through the Alice Street Mini-Park. public transit access: AC Transit lines 72R and 51.

UnIon poInt park facilities: playground and playing fields, picnic areas, marina, restrooms. Hours: dawn to dusk, with a curfew from 10 p.m. to 5 a.m. location: at the intersection of Embarcadero and E. 7th Street. EStUary park facilities: Aquatic Center, picnic/BBQ areas, bike and pedestrian paths, fishing pier, restrooms, parking lot with some double stalls for boat trailers. Hours: dawn to dusk, with a curfew from 10 p.m. to 5 a.m. location: S.E. of the Embarcadero, along

16 · PORTNEWS

partners in creating open space at the port of oakland includes: association of bay area Governments California Coastal Conservancy California department of boating and Waterways California department of parks & recreation City of oakland East bay regional park district league of Women voters San francisco bay Conservation and development Commission San francisco bay trail project trust for public land Unity Council Waterfront action West oakland Community

the Oakland Estuary; pedestrian and bicycle access through Lake Merritt Channel Park. public transit access: AC Transit line 72M, from Lake Merritt BART station. EMbarCadEro CovE facilities: fishing pier and stations for cleaning fish, boat launch, benches and picnic tables, wheelchair accessible. Shopping, restaurants and marina nearby. Hours: dawn to dusk, with a curfew from 10 p.m. to 5 a.m. location: along the waterfront from 9th Avenue to Livingston Street; accessible by pedestrian and bicycle path along Embarcadero Road.

frUItvalE MInI-park The San Antonio-Fruitvale District's waterfront makes neighbors of residents, industry and commercial enterprises. The one-acre Fruitvale Mini-Park below the Fruitvale Bridge offers views of a working drawbridge and the houseboats along the Alameda shoreline. facilities: fishing pier, benches. Hours: Dawn to dusk. directions: by pedestrian ramp just east of Fruitvale Avenue at Alameda Avenue and the Tidal Canal. public transit access: AC Transit 19 and 63 to the Fruitvale BART station.

MartIn lUtHEr kInG Jr. SHorElInE facilities: picnic and play areas, playing fields, fishing piers, boat launch ramp, restrooms, parking. Hours: 5 a.m. to 10 p.m. location: Mlk: at the end of Edgewater Drive, off Swan Way and from Doolittle Drive; Arrowhead: from Swan Way, near Doolittle Drive. public transit access: AC Transit Line 98.

SPRING/SUMMER 2006 · 1

Port of Oakland positions itself to handle increasing global trade.

1 · PORTNEWS

The Future of Global Commerce & Port Operations

AN INTERVIEW WITH MarItIME dIrECtor...

Wilson Lacy

POrt News: Given the recent controversy over the foreign operations of terminals at six U.S. ports, what are your thoughts about how U.S. ports operate in the global economy? Lacy: Trade and shipping, by their very nature have always been international endeavors. And while U.S. firms have always participated whole-heartedly in global trade, there are very few U.S. companies in the shipping industry itself. There are a couple of reasons for this. One is that shipbuilding and port operations are long-term businesses, with lots of upfront costs. Secondly, other countries provide more government support, subsidies or tax incentives for the infrastructure needed in shipping and port operations. The result has been vertical integration: the same companies that build and sail the ships also take responsibility for operating the marine terminals where they are loaded and unloaded. And most of those firms are home-based outside the U.S. PN: How are the Port of Oakland's marine terminals operated? L: Typical of the industry, we lease our marine terminal facilities to the private sector. Of our eight terminals, two are operated under lease to U.S. firms and six are leased to the California or American subsidiaries of firms owned outside the U.S. in Japan, Taiwan, Singapore, Korea and Denmark. These arrangements have been in place for years and they all are with historically upstanding, reputable companies.

Wilson Lacy has been director of the Port's Maritime Division since 2004. Prior to his position at the Port of Oakland Mr. Lacy was a Senior Vice President of Operations and Chief Officer of Pasha Maritime Services, the third largest stevedoring company on the West Coast. Mr. Lacy received his Bachelor of Arts from Southwest University in MO. He is a member of the master Stevedore Association, the California Steamship Association, and the Defense Transportation Association.

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SPRING/SUMMER 2006 · 1

PN: Should foreign ownership of marine terminal operators be a security concern?

L: Regardless of who operates the terminals, they have to comply with all U.S. federal security regulations and with international guidelines. Here at Oakland, security is a responsibility shared by the U.S. Coast Guard and the U.S. Bureau of Customs and Border Protection, the California Highway Patrol, the Alameda County Sheriff's Department and the Oakland Police Department. The Port and the marine terminal operators also have private security guards and high-tech systems in place. Additionally there are armed U.S. Customs officers at each of the marine terminals where Customs utilizes the Radiation Portal Monitors. Every container from a foreign country has to pass through the radiation detection system before it can leave the Port area. Plus, it should be remembered that most U.S. ports, including the Port of Oakland, are locally governed with public oversight. Our Board of Port Commissioners is comprised of seven members who are nominated by the Oakland mayor and appointed by the City Council. The marine terminal operators are not part of that process. PN: What trends do you see in global trade, and how are they playing out in Oakland? L: The growth we anticipated is happening and the preparations we made for it in our Vision 2000 program are paying off. In 2005, we saw approximately 20% growth in our inbound cargo volume, with much of that growth coming from Asia--in particular from China, which is fast becoming a manufacturing center of the world. We also are getting far more discretionary cargo-shipments that are headed for destinations outside of Northern California and that could have gone to another West Coast port. This is where our investment in deepening our harbor, in increasing our number of super post-Panamax cranes and upgrading our rail connections are setting us apart from the competition. PN: Speaking of rail, what can you tell us about the Central Corridor Initiative?

Wilson L acy

PN: What else is on the horizon?

intermodal rail service between the West Coast and markets throughout the country. That import growth, coupled with the movement of domestic goods is straining the nation's rail system. The Port of Oakland, the Union Pacific Railroad and transportation officials of the Western states are forming a partnership to identify, fund and build projects needed to reinvigorate the Central Corridor. Without significant investment in our railroad system, the ability to move goods throughout the country will be severely limited. We believe it's vital that the Central Corridor be rebuilt as an economic gateway for America.

L: Later this year, we will take possession of part of the former Oakland Army Base, where we plan to expand our rail access by building the Outer Harbor Intermodal Terminal. We also are forming a strategic alliance with the Port of Sacramento. We believe this will provide for the more efficient flow of cargo in and out of Northern California, while creating jobs in the Sacramento area. It also will have significant, positive environmental benefits. PN: What are some of the Seaport's current environmental undertakings? L: Environmental responsibility, along with social responsibility and relieving congestion, is fundamental to the way we do business at the Port of Oakland. We are working our way through a $9 million multi-year maritime air quality program. Our Environment and Safety Department is drawing up a list of effective projects that will complete that important commitment. The Central Corridor Initiative also will reap environmental benefits by shifting a significant amount of discretionary cargo movement from trucks to trains. We've built a beautiful park in the heart of the seaport called Middle Harbor Shoreline Park. It surrounds a shallow water habitat that we're constructing with clean dredged materials. What's amazing is to see the wildlife already flourishing in the area even though we are still working on that project. Looking for a moment at social responsibility, our Vision 2000 investments, our channel deepening project and the increased cargo movements they made possible, are creating thousands of jobs. To sum it all up...we've made substantial infrastructure investments at the Oakland seaport for goods movement. We are sincerely committed to strengthening our business and community relationships. And we are continuing to improve our maritime operations to remain the fourth busiest containerport in the United States--a world class seaport. ·

L: Rail is absolutely critical to the flow of commerce in the U.S. and certainly here in California. In 1869, when the golden spike was driven into place in Promontory Point, Utah, newspapers hailed the new transcontinental railway as "one of the most important channels of trade and commerce in the world." With improvements to the Central Corridor, which begins here in Oakland and passes through Nevada, Utah, Colorado and Wyoming, we can revitalize a crucial part of America's rail infrastructure. In 2005, over 57% of all imported goods came through West Coast ports, and a significant amount of that cargo moved by

20 · PORTNEWS

maritime

The volume of inbound cargo at the Port of Oakland is growing as international trade with the United States continues to expand.

Port of Sacramento

T

Creating a Strategic Alliance between the Ports of Oakland and Sacramento

he Ports of Oakland and Sacramento have set up plans to strengthen their relationship. They have crafted a Memorandum of Understanding that will set the stage regarding the Port of Oakland's role in connection with the Port of Sacramento's management and operations. With the volume of international cargo moving through U.S. ports expected to double by 2020, Kenneth S. Katzoff, President of the Oakland Board of Port Commissioners, said, "This strategic alliance is one of many innovative ideas that we believe could support our efforts to handle our growing business, create new revenue, improve the quality of life for our respective communities and further our efforts to reduce pollution, perhaps through a barging operation between the two ports." A three-phased approach to the long-term strategic alliance has been developed. Some of the activities and timeframes are as follows: Phase One (January­June 2006): The ports secure a terminal operator to provide maritime services in Sacramento; preparation of a strategic plan; development of a Terminal Operations Franchise; financial and contractual negotiations. Phase Two (July 2006­December 2007): Assist in Sacramento's efforts for channel deepening; assist in marketing the Port of Sacramento; joint development of performance measures; reporting of performance results to port commissioners.

See page 23 4

SPRING/SUMMER 2006 · 21

maritime

Mega-Ships

Making Oakland

a port-of-Call

O

rders of French fries and colas aren't the only things being super-sized in the Bay Area these days. Mega-ships like the Hanjin Dallas are calling regularly at the Port of Oakland. The 8,000-TEU (twenty-foot equivalent unit) class vessel, deployed in Hanjin Shipping's Asia-U.S. West Coast service, made its maiden voyage to the Oakland seaport in January 2006. "Everything we've done over the last several years has been expressly to keep the Port of Oakland competitive as an international gateway," said Wilson Lacy, the Port's Director of Maritime. "The arrival of the Hanjin Dallas clearly demonstrates that the

significant investment we've made in our infrastructure was the right thing to do." Those investments, totaling more than $1 billion, include the Vision 2000 program, the Oakland Harbor Deepening Project, and other maritime improvements. The work included expanding the seaport, providing greater container handling capacity, the continuing harbor deepening project, and adding 17 high-tech super post-Panamax cranes. The Hanjin Dallas is an example of the larger, more efficient vessels built to handle the increased volume of trade between the U.S. and Asia. It is an imposing ship--wide enough

to hold 18 rows of containers and nearly 1,000 feet long. "You really can't believe it until you see it," said Ron Brown, Manager of Business Development and Marketing in the Port's Maritime Division. "We're very pleased to welcome this new ship." Not only is the Port of Oakland seeing more super-sized container ships, in recent years, the Oakland seaport is adding first port-of-call deployments. That means a vessel sailing from Asia to North America as part of a TransPacific service is making its first U.S. stop at the Port of Oakland. ·

22 · PORTNEWS

maritime

MARITIME U p d a t E S

GoldEn GUardIan 2005

Last November, the Port of Oakland participated in the Golden Guardian 2005, the statewide Homeland Security exercise. The event gave response and prevention agencies from all branches of government the opportunity to work together in a simulated crisis environment. More than 2,500 participants representing 160 local, state and federal agencies in the Sacramento and Oakland areas tested their ability to deter, respond and minimize the effects of a possible terrorist attack or major natural disaster during the simulation.

nIGHt GatES

The Port of Oakland initiated a trial project to extend gate hours at one of its eight international marine terminals in the fall of 2005 for approximately three months. These extended hours of operation, commonly referred to as "night gates," were for exports only and provided additional opportunities for shippers, trucking companies, and truckers to take advantage of reduced congestion on local highways and expedite the movement of commerce through the Port of Oakland. The night gates trial project ran during the peak shipping season. It took trucks off the road during the day, relieving some traffic congestion and reducing emissions. It benefited the agricultural export community as it provided opportunities for truckers to get to the Port during non-peak hours, creating an efficient turnaround time. The Port of Oakland would like to recognize the generous cooperation of Stevedoring Services of America, which hosted this project at Oakland International Container Terminal (OICT). The OICT was designated as the terminal for extended gate hours on a trial basis because of the multiple shipping lines that make regular calls at that marine terminal.

4Port of Sacramento

Phase Three (January 2008­2016): Grant of an exclusive eight-year Terminal Operations Franchise; further development of performance assessments. The Port of Oakland's Executive Director Jerry Bridges executed the Memorandum of Understanding (MOU) in April 2006. The Port of Sacramento's Manager Mike Luken commented, "The strategic alliance makes good business sense for both ports." Commissioner John Protopappas, Chair of the Port of Oakland's Commercial Real Estate Committee, said, "We're excited about this partnership. We are looking at all alternatives that might improve our efficiency and increase capacity. The alliance with the Port of Sacramento provides the opportunity for improving goods movement in the state and beyond, into America's heartland." ·

SPRING/SUMMER 2006 · 2

maritime

another record-Setting year for Maritime

The Port of Oakland experienced a dramatic rise in the volume of imported cargo in 2005. Imports grew more than 20 percent from the previous year (2004). Container sizes are measured by an international standard called a TEU or Twenty-foot Equivalent Unit. Containers vary in size but most containers are about 40 feet in length (two TEUs). 2004 Imports 2005 Imports Import growth over 2004 2004 Exports 2005 Exports Export growth over 2004 694,314 TEUs 836,258 TEUs = 20.4% 813,716 TEUs 846,579 TEUs = 4.0%

2 · PORTNEWS

aviation

ATA launches four daily flights to Hawaii

Carrier Makes Strategic Move to oak from Sfo

A

pril 27, 2006, ATA Airlines announced plans to move its operations to Oakland International Airport (OAK) from San Francisco International Airport (SFO). ATA is offering four daily nonstop flights between Oakland and Hawaii: two round-trips to Honolulu and one to Maui. ATA will also be the only airline to offer daily nonstop service between the mainland and the Hawaiian city of Hilo. "Our move to Oakland is not only a win for ATA customers who will continue to enjoy our convenient and affordable travel options to Hawaii, it also brings the islands to thousands more who are served through our partnership with Southwest Airlines," said ATA Chairman, CEO and President John Denison. "These passengers will be able to enjoy connections to Hawaii out of Oakland from 25 different cities nationwide." "Given Oakland International's convenience to downtown San Francisco, low fares and on-time results, ATA's move to Oakland International just makes sense. OAK delivers the kind of service ATA customers have come to expect," said Steve Grossman, director of aviation for the Port of Oakland. "In 2005, sixty percent of Oakland's 14.4 million passengers traveled on ATA's partner, Southwest Airlines, offering a sizable base of customers seeking low-fare options to destinations such as Hawaii." ·

SPRING/SUMMER 2006 · 25

aviation

C

OAK Travelers to Enjoy New and Improved Food, Beverage and Retail Concessions

individuals representing firms that manage and operate concessions at other U.S. airports. These firms are competing for the prime concessionaire contract opportunity for most retail and food/beverage operations at the airport. The contract with the current prime concessionaire expires in mid-2008. New concession services will be needed in Terminal 2 when the new seven-gate concourse opens in August 2006, as it is not included in the current prime contract. The Port's vision is to offer local, regional and national food and beverage brands to satisfy airport passengers' needs for quick food or dining, beverages and purchasing gifts, newspapers, books and magazines. Experience shows that airport passengers prefer brands that are proven, genuine and successful. In addition, they are patronized more and generate higher sales. "Oakland and the Bay Area offer a wealth of proven local brands that will be key to creating a unique sense of place and differentiating Oakland International from other airports. We are also encouraging interested firms to partner with small businesses from the local community," said Steve Grossman, Port of Oakland's Director of Aviation. Additionally, the meeting included information on the Airport Concession Disadvantaged Business Enterprise (ACDBE) participant requirement. Approximately 62 potential ACDBE concessionaires attended, met the prime concessionaires and learned about doing business at the airport. For more information, please visit oaklandairport.com. ·

hanges in air travel have increased demand for food, beverage and retail amenities in airports. Due to increased federal security measures, travelers are now encouraged to get to the airport earlier. Also, airlines are moving away from serving food on flights. Both factors increase the demand for food service on the ground. In February, the Port of Oakland held an informational, outreach meeting about concession opportunities at Oakland International Airport (OAK). The opportunities at the airport have attracted significant interest. It is the largest single airport concession contract, measured by potential gross revenues generated over the term of the lease that will be awarded in the U.S. in 2006. The event attracted a number of

Cnn dElIvErS tHE nEWS to travElErS In tErMInal 1 GIft SHop

OAK's Terminal 1 news and gift shop located next to the passenger security checkpoint had a facelift. The new Oakland CNN Newsstand resembles a CNN news studio. The storefront features an electronic display with a steady stream of news and information. Inside, travelers receive up-to-the minute news coverage via televisions tuned to CNN. CNN-themed souvenirs and sundry items are available for travelers' gift needs and in-flight convenience.

26 · PORTNEWS

aviation

Master Plan Open House

C

ommunity leaders and members came together at an open house in January to learn more about Oakland International Airport's 20-year master plan. The plan was prepared by airport staff and shaped by a Stakeholder Advisory Committee, comprised of representatives of neighboring cities, community groups and airport tenants. This very successful event at the Hilton Hotel located near the airport attracted over 150 interested local community leaders, elected officials, business leaders, regulatory agencies, airport tenants and consultants. Oakland City Council member Larry Reid and San Leandro Mayor Shelia Young were among the attendees. Airport staff shared the following key master plan outcomes and recommendations:

· The master plan focuses on the near-term (2010 to 2012) and longterm (2025) based upon new land-use maps. · The primary focus of the master plan is on potential near-term projects (2010 to 2012) and accommodating forecast airline passenger activity in the near-term. · Projects are not recommended to accommodate long-term (2025) forecasts, which are speculative and not reasonably foreseeable at this time. Also, a new South Field (air carrier) runway is not recommended in the master plan. · Air cargo growth is focused on existing air cargo tenants; a lowgrowth air cargo forecast is recommended as the Port intends to de-

emphasize marketing new air cargo airlines and service. Since June 2004, airport staff has been working closely with the Stakeholder Advisory Committee to prepare a master plan for OAK. The Oakland Board of Port Commissioners adopted a resolution approving the master plan for Oakland International Airport (OAK) at the March 8, 2006, board meeting. This resolution allows the airport to move forward with identifying specific development projects through 2025. For additional information, visit oaklandairport.com. ·

AVIATION U p d a t E S

JEtblUE aIrWayS InaUGUratES nEW daIly nonStop flIGHt to fort laUdErdalE, florIda

In January, jetBlue Airways began nonstop service between OAK and Fort LauderdaleHollywood International Airport. "This important new service marks the first-ever nonstop flight from Oakland International to Florida," said Steve Grossman, the Port's Director of Aviation. "jetBlue's continued investment in Oakland is a win for the airline, the Airport and Bay Area travelers, who I am confident will positively respond to this new and convenient service." jetBlue now operates 16 daily flights to five nonstop destinations from OAK: Boston, Fort Lauderdale, Long Beach, New York (JFK) and Washington, DC (Dulles). jetBlue is OAK's second largest carrier.

SoUtHWESt aIrlInES addS SErvICE In 2006

Southwest Airlines continues to grow its already major operation at OAK. In February the airline added six new flights to four existing destinations. With these added flights, Southwest now operates 138 daily nonstops to 19 U.S. cities from OAK. The new flights are: · One to Albuquerque (daily total: 3) · One to Orange County (daily total: 9) · Two to Burbank (daily total: 16) · Two to San Diego (daily total: 20) "Southwest Airlines customers are traveling at record rates, and they're asking for more flights," said Joyce Rogge, Southwest Airline's Senior Vice President of Marketing. "We're simply giving our customers what they want."

SPRING/SUMMER 2006 · 2

sustainability

rEdUCInG EMISSIonS

The Port's Truck Replacement Project is one part of a larger environmental initiative to reduce diesel emissions. Port truck drivers are able to trade in their 1986 or older trucks and receive up to $25,000 toward the purchase of a 1999 or newer truck. With up to $2 million in funding, the project aims to replace approximately 80 trucks with more fuel- and emission-efficient vehicles. Pictured here at a Port workshop for truckers is Tim Leong (third from left), who oversees this innovative project for the Port's Environment and Safety Department.

opEn SpaCE at tHE port of oakland

New Video and Map Highlight Public Access

M

ost people may know the Port of Oakland best for its giant cranes--a symbol of the Port's responsibility for keeping California's economy strong. But the Port plays another vital role--as the steward of the land it owns and manages for the people of California. That stewardship is the topic of a new video produced by the Port of Oakland and aired on Oakland's public-access tele-

vision station, KTOP. An accompanying map provides details on the 1,000 acres of waterfront land owned by the Port that is open to the public. "The Port has long been an advocate of public access and environmental awareness along the waterfront," said Board of Port Commissioners President Kenneth S. Katzoff. "We are grateful for the ongoing collaboration and support of hundreds of people

from the community, local government, regional organizations, and agencies that have helped us create these open spaces." In addition to parks, the Port has created acres of wetlands for marine life and has contributed 20 miles to the San Francisco Bay Trail and provided facilities for recreational boating. ·

2005 EMployEE GIvInG UpdatE

Port of Oakland Employees Give from the Heart

H

eeding the call of the 2005 Giving Campaign to "give from the heart," Port of Oakland employees donated $270,000 to needy causes last year. Their generosity reached victims of the tsunami in Southeast Asia and of the earthquake in Pakistan. Funds were raised to aid people whose lives were turned upside down by the hurricanes along the Gulf Coast. And 16 community agencies and charities in the Bay Area participated in a two-day Giving Campaign Agency Fair. "The fair gives people a chance to learn about organizations close to home and to learn about the kind of support needed," said Joe Echelberry, Director of Administration and Chair of the 2005 Giving Campaign. With Port matching funds and employee contributions, the amount raised far exceeded the ambitious $150,000 goal. "I am very proud of our accomplishment," Echelberry concluded. ·

2 · PORTNEWS

then and now

M

aritime operations dramatically changed in the 1900s between the first and second half of the twentieth century. In the 1950s at the Port of Oakland, cargo was still handled in small separate units called break bulk. Loose cargo such as nuts, sand, cement and fertilizer were moved from ship to shore by skilled stevedores. It would take as

long as three weeks to discharge and load a freighter. Containerized shipping is the most significant change in cargo handling in modern times. The technology of transporting giant boxes (containers) transformed shipping worldwide. Under Executive Director Ben E. Nutter, the Port of Oakland became one of the pioneers of large-scale

containerization in the 1960s. Today a ship can be discharged and loaded in a matter of hours. With the use of giant container cranes, the longshore workers handle massive containers at a brisk pace moving more than 1 million of these super-sized boxes through the Port of Oakland each year. 2006 marks the 50th anniversary of containerization. ·

0 · PORTNEWS

TM

SUBSCRIBE TODAY 747.1060

PRST STD U.S. POSTAGE PAID OAKLAND, CA PERMIT #308

530 Water Street Oakland, California 94607 www.portofoakland.com

Mission Statement

We devote our skills and resources to providing the highest quality facilities and services to our airport, real estate, and seaport tenants and customers. Through their activities and our policies, we enhance the economic, social, and environmental well-being of the City of Oakland and the region, while generating earnings to reinvest in our activities.

2 · PORTNEWS

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