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Fri, 18 May 2012 17:26:00 GMT

Port, OOCL Sign $4.6 billion, 40-year Middle Harbor Lease New terminal will be a model of green, modern technology

Fri, 06 Apr 2012 00:23:00 GMT

Port of Long Beach Executive Director J. Christopher Lytle and Orient Overseas Container Line CEO Phillip Chow signed a $4.6 billion, 40-year lease for the new Middle Harbor container terminal at a ceremony at OOCL’s Hong Kong headquarters on Tuesday, April 3.

The inking of the historic agreement was celebrated by officials from the Port and OOCL. They were joined by labor and maritime industry leaders representing the International Longshore and Warehouse Union and the Pacific Maritime Association.

“I can’t overstate the significance of this agreement,” Lytle said. “It is the largest and most far-reaching terminal lease ever at the Port of Long Beach.”

The lease gives OOCL and its subsidiary, Long Beach Container Terminal, LLC, exclusive use of the facility for 40 years. It will be the Port’s most technologically advanced and greenest terminal.

“The Middle Harbor Redevelopment Project is our flagship model for the ‘Port of the Future,’” Lytle said. “Once completed, it will ensure both the competitiveness of the Port of Long Beach, and our customer OOCL, for decades to come.”

Board of Harbor Commissioners President Susan E. Anderson Wise added: “OOCL has been a great business partner for the Port of Long Beach for many, many years, and I couldn’t be happier that they have made another long-term commitment to the Port. With this historic lease signing, we will move forward into the next phase of our successful business relationship.”

Accompanied by Port of Long Beach Harbor Commissioners Thomas Fields, Nick Sramek, Rich Dines and Doug Drummond, Wise presented to Chow a glass sculpture by California artist Paul Harrie as a token of the Port’s appreciation. As a gift to the Port, Chow presented a vase by a Hong Kong artist on behalf of OOCL.

The International Longshore and Warehouse Union (ILWU) joined in showing support for the project and the terminal. Attending from the ILWU was International President Robert McEllrath, ILWU International Vice Presidents Wesley Furtado and Ray Familathe, ILWU Local 13 President Joe Cortez, ILWU Local 63 President Michael Podue and ILWU Local 94 President Daniel Miranda.

Representing the Pacific Maritime Association (PMA), the employer organization which contracts with the ILWU, was President James McKenna, Coast Director Rich Marzano and Senior Vice President Steve Hennessy.

The Port will host a ceremonial ground breaking event in Long Beach in May to commemorate the historic partnership and the development.

Contact: Art Wong, Port of Long Beach Assistant Director of Communications/Public Information Officer, (562) 283-7702, (562) 619-5665 (cell), or wong@polb.com.

Peter Friedmann's View from Washington D.C. - November

Fri, 06 Apr 2012 00:14:00 GMT

As Congress enters the final six weeks of this First Session, and the President ramps up his reelection campaign, we find ourselves at a “tipping point”. Typically, these last few weeks in the year before Presidential elections can be a fertile time for substantive work by both Congress and the Executive Branch to address and resolve major issues. Both Congress and the President often run away from politically sensitive issues during an election year. We only have six weeks until we are in an election year. So it may be “now or never”.

On the positive side, we have seen some real accomplishments in the recent weeks. Free Trade Agreements with Korea, Panama and Colombia, which have been simmering on the back burner for four years, were finally passed. More technical, but still important trade legislation, also passed after long delays. Even the proposed Keystone Pipeline, which would carry oil from tar sands in Alberta down to the US Gulf Coast States, might eventually find the White House and Republican Congressional on the same page, and be approved (despite vehement environmental opposition). A comprehensive transportation infrastructure bill, already two years overdue, is finally inching forward. (What we need now is an injection of courage on the Hill to increase the gas tax – unchanged since the early 1990’s – to pay for highway and transit needs). Congress seems to agree that infrastructure spending is acceptable, and the Dept of Transportation has figured out some very good transport projects to fund under the TIGER program. There is reason to believe that more could get done before the New Year.

As you read this, global financial markets are watching Greece and now Italy, with great concern. The prospect of the break-up of the EU common currency, is putting extraordinary pressure on the Congressional “Super Committee” to find a way to reduce the US deficit by at least $1.3 trillion over the next ten years. It’s still a battle between those on the Super Committee who would protect entitlements from cuts, and those that will oppose tax increases. If they don’t get this done by November 23, it will be a major political failure, discouraging to both Wall Street and “Main Street”; worse, by prior agreement, failure to agree, and for Congress to approve a budget plan, would automatically trigger significant cuts to both civilian and military programs. It’s not clear how the American public would accept the kind of cuts in Federal spending that would result.

A bright spot is that exports are growing, mostly to Asia, while behind the scenes, the US Government and Pacific Rim countries such as Vietnam, Malaysia, Chile, Korea, etc are working toward a TransPacific Partnership that will reduce tariffs (if the protectionists in Congress will allow it), and thus further stimulate the flow of commerce from US manufacturers and farmers to newly opened Asian markets. Another development is the emergence of massive domestic oil resources in North Dakota; regardless of one’s views of fossil fuels versus renewable energy, reducing US dependence on imported oil will lead to meaningful improvements in our balance of trade, and thousands of new jobs.

So, in these weeks that Congress and the President pursue their last major accomplishments before ramping up their reelection campaigns, the environment here in DC is unsettled. We hold our collective breath as we hope, against the odds, that the 12 Senators and Congressmen on the Super Committee do not miss this historic opportunity to make real and lasting changes to the way we generate tax revenue, and the way we spend it. One thing Congress does very well – wait until the last minute. The deadline for the Super Committee is November 23. Don’t expect to see anything before the wee hours of November 24^th – Thanksgiving!

Regards,
Peter

Peter Friedmann
Of Counsel, Lindsay, Hart, Neil & Weigler, LLP

FBB Federal Relations
1120 G Street NW, Suite 1020 Washington, DC 20005
tel: 202-783-3333 fax: 202-783-4422
ourmanindc@federalrelations.com

Peter Friedmann's View From Washington, DC

Wed, 25 Apr 2012 21:45:00 GMT

For 9 months it has seemed that Congress and the President were only interested in one issue – the federal budget. And contentious, partisan battles had become 'the norm'. Battles between Democrats and Republicans, between the House and the White House, were a constant, and not much got done other than the budget and setting spending limits. While those are important, and the deficit remains the elephant in DC, other functions of the government require attention: transportation, infrastructure, trade, tax, etc. Yet it seemed that all the oxygen was being consumed by the budget and spending battles. All of a sudden that has changed, or, at least we have seen a glimpse of what can be accomplished when the Congress and White House feel they must find a solution.

This past week Congress passed three major trade agreements, opening new markets for US manufacturers, service industry and agriculture, defeated a misguided threat to trade with China, restored an important trade facilitation mechanism, and passed a limited worker training program. These had been languishing for months, in some cases years.

These trade agreements with Korea, Panama and Colombia were vigorously opposed by organized labor and their supporters on Capitol Hill and in the White House, which had refused to send the Agreements to Congress for nearly three years. Finally, as Korea and Colombia were entering into Free Trade Agreements with the European Union, with Canada, with Mexico, leaving US without competitive access to their markets, the White House was pressured into releasing the Agreements to Congress, and majorities were cobbled together in the House and Senate to pass them. What is remarkable is that we have decided we need to remain competitive in the global economy, and we have finally demonstrated the will and capacity to pass the laws which will allow US business to compete.

Keep in mind that the big news is still deficit reduction. The "Super Committee", comprised of 6 Senators and 6 Congressmen (half Democrat and half Republican) continues to meet, striving to find a way to reduce the deficit between $1.2 and $1.5 trillion over the next decade. They must reach an agreement, and present to the Senate and House, by November 23. Then Congress must vote to accept that agreement. Failure to do so would trigger automatic cuts totaling $1.2 trillion, divided equally between defense/homeland security (including Coast Guard) and civilian government programs. And then Congress will be back to battling over raising taxes or not, cutting entitlement (Medicare, Social Security, etc) or not, cutting or eliminating specific programs or even agencies.

The Super Committee is comprised of 12 Congress people with diverse viewpoints, some who have vowed they will not accept any tax increases, and others who have vowed not to accept any cuts in entitlement programs. Frankly, without one or the other, or better yet a combination of both, it will not be possible to reach real deficit reduction. So an agreement will require compromise. It's a tall order. Optimists only give it a 50-50 chance.

And until this work is completed, Congress cannot move forward with a meaningful jobs bill, or a transportation infrastructure (highway and transit) bill, or assign budgets to all the federal agencies, including Customs and Border Protection, the Corps of Engineers, the Defense Department, etc. Thus all Federal programs and their funding are "on the chopping block" through the end of the year.

In the meantime, there will be skirmishes on Capitol Hill as the business community and Republicans, emboldened by success in passing the trade agreements, will seek to derail new regulations being issued by the Administration. For instance, cement dust regulations by EPA, or trucking hours of service Regs by the Federal Highway Safety Administration, both of which are seen as "anti-business". Regulations will be a flashpoint between the House and the White House for the remainder of the year.

It is all very unsettled, and with the economy still in jeopardy, the stakes are high. But passing the trade agreements gives us some reason for hope that when push comes to shove, decisions, the right decisions, are possible.

Regards,
Peter

Peter Friedmann
Of Counsel, Lindsay, Hart, Neil & Weigler, LLP

FBB Federal Relations
1120 G Street NW, Suite 1020 Washington, DC 20005
tel: 202-783-3333 fax: 202-783-4422
ourmanindc@federalrelations.com

New BNSF Rail Facility Will Provide Significant Economic, Air Quality and Traffic Benefits for Southern California

Thu, 06 Oct 2011 19:10:00 GMT

$500 Million Facility Exceeds Port of Los Angeles’ Goals for New Projects

LOS ANGELES, September23, 2011 – BNSF Railway’s proposed Southern California International Gateway (SCIG) reached an important milestone today with the release of the Draft Environmental Impact Report (DEIR) for public review and comment. The SCIG project is designed to be the greenest intermodal facility in the United States. SCIG will allow containers to be loaded onto rail just four miles from the docks, rather than traveling 24 miles on local roads and the 710 freeway to downtown rail facilities. SCIG will allow 1.5 million more containers to move by more efficient and environmentally preferred rail through the Alameda Corridor each year, greatly reducing truck traffic congestion in Southern California.

The report concludes that SCIG reduces health risk to a far greater extent than even the port’s own goals for new projects. SCIG will also create thousands of good local jobs, remove more than 1.5 million truck trips from the 710 freeway every year, providing significant benefits for local and regional air quality and congestion relief.

In building SCIG, BNSF will clean up an existing industrial site and replace it with a state of the art facility featuring wide-span all-electric cranes, ultra-low emission switching locomotives and low-emission rail yard equipment.

In addition to these innovations, BNSF has committed to initially allow only trucks meeting the Port’s Clean Air Action Plan (CAAP) goal of 2007 or newer trucks to transport cargo between the marine terminals and the facility. Ultimately, by 2026, 90 percent of the truck fleet will be LNG or equivalent emissions vehicles. Trucks will be required to avoid residential areas by traveling on designated, industrial routes with GPS tracking to ensure adherence.

“The release of this report is a significant moment for green growth in Los Angeles,” said Matthew K. Rose, Chairman, and Chief Executive Officer of BNSF. “Railroads are the most environmentally-friendly mode of surface transportation. We have worked closely with the Mayor and other elected officials, staff and stakeholders to develop a $500 million facility that will be an important contributor to the rail system, the port and the regional economy, while at the same time benefitting our community and the environment. We believe that this facility proves that ‘green’ and ‘growth’ can go together as the mayor and the ports have long promised.”

The draft environmental impact report, which analyzes potential impacts from the project on topics ranging from air quality to traffic, includes the following key findings:

The Port of Los Angeles has set a health risk goal for new projects of not more than an additional 10 in a million excess cancer risks. SCIG far surpasses the Port’s stated goal with a reduction of cancer risk of 160 in a million.
SCIG will have a significant positive impact on traffic, both locally and regionally.

SCIG will eliminate more than 1.5 million truck trips from the 710, reducing congestion and improving air quality.

SCIG to Generate Green Growth and New Jobs

“With unemployment at 12 percent in Los Angeles County, opportunities to develop infrastructure while creating well-paying local jobs should be a high priority,” said Gary Toebben, President and CEO of the Los Angeles Area Chamber of Commerce. “This project is just the type of growth that is critically needed in the region and will send a signal to the business community that sensible growth is possible in the city of Los Angeles.”

During the three-year construction phase, approximately 1,500 jobs annually would be created, contributing more than $85 million in federal, state and local taxes.

Upon completion, SCIG will create up to 14,000 new direct and indirect jobs in Los Angeles and 22,000 new direct and indirect jobs in Southern California by 2036, according to a study by IHS Global Insight.

BNSF is in the process of finalizing a Project Labor Agreement with the Building and Construction Trades Council for the construction of SCIG. BNSF has also committed to create a local jobs training program and offer priority hiring for new jobs to qualified local job applicants.

BNSF looks forward to continued engagement with stakeholders at its updated website, BNSFConnects.com, on Facebook and on Twitter. As part of the environmental review process, stakeholders are also encouraged to submit their written comments for the official record to the Port of Los Angeles by December 22, 2011 to Christopher Cannon, Director of Environmental Management via mail or e-mail to ceqacomments@portla.org. They will be included in the Final Environmental Impact Report.

About BNSF

BNSF Railway is one of North America's leading freight transportation companies operating on 32,000 route miles of track in 28 states and two Canadian provinces. BNSF is one of the top transporters of consumer goods, grain, industrial goods and low-sulfur coal that help feed, clothe, supply, and power American homes and businesses every day. BNSF and its employees have developed one of the most technologically advanced, and efficient railroads in the industry. And we are working continuously to improve the value of the safety, service, energy, and environmental benefits we provide to our customers and the communities we serve. You can learn more about BNSF at www.BNSF.com.

Peter Friedmann's View from Washington DC

Wed, 25 Apr 2012 21:46:00 GMT

August 8, 2011

This month's "View" is being written from a town that finds itself in uncharted waters. My previous monthly Views have benefited from 20+ years here in Washington DC on Capitol Hill and then lobbying and interacting with Capitol Hill and the Executive Branch. But the developments of the past two months have us in uncharted waters – it is not at all clear whether the various behaviors of Congress and the White House over these past two decades can provide any guidance as to what we can expect over the coming months, which, as explained below, will be so pivotal.

Never in our lifetimes have the Dollar and the US Treasury bonds been anything other than the consensus safest place for the world to invest. Are they still? Congressional and White House action or inaction on five specific decisions coming this fall, will demonstrate to the American public and to the world whether they can govern in a way that can restore global confidence. Here they are, in the order they must be decided:

First, last year Congress failed to pass any appropriations bills. The result was a showdown this past spring over a budget for the current fiscal year 2011. You will recall that we came within hours of shutting down the government. In the end, the budget was agreed to, with billions of dollars cut from what had been an early blueprint for FY 2011. But now, that budget is set to expire on September 30. In “normal years”, Congress will have passed all 12 appropriations bills by Sept 30. Will Congress, in the three weeks it has upon returning from the August Recess, pass the appropriations bills, or a Continuing Resolution? The stakes are high, because failure to pass one or the other means another government shutdown, and will further undermine voters’ and global investors’ confidence in our government.

Second, today, every motorist pays 18.4 cents per gallon federal gas tax. This money is used to fund highway and transit construction and maintenance. This tax expires September 30. Will Congress pass a comprehensive transportation authorization bill, or at least extend the current federal gas tax? Again, the stakes are high; failure to do so would terminate highway and transit construction projects underway.

Third, as part of the debt limit compromise, a new "Super Congress" consisting of 12 Congresspersons and Senators (three House Democrats, three House Republicans, three Senate Democrats, three Senate Republicans) must propose further debt reduction measures by November 23, which Congress must pass by December 23. If the Super Congress cannot agree on such a package, or if Congress does not pass it, then $1.2 trillion in cuts (divided equally between defense and domestic programs, but excluding Social Security and Medicaid) automatically becomes law.

Fourth, Congress must find some funding source to assure that doctors payments for treatment of Medicare patients remain at current levels. Failure to do so by December 31 will mean that doctors will be paid 25% less for Medicare treatments, beginning this coming January – which means fewer doctors will accept Medicare patients.

Finally, in 1969 Congress enacted the "Alternative Minimum Tax" designed to limit the loopholes available to the roughly 200 wealthiest taxpayers. Today, due to inflation, the higher AMT applies to about approximately 4 million taxpayers, including many who are not considered “rich". Last year Congress adjusted the AMT to relieve 2 million taxpayers from the higher AMT tax scheme. But this is becoming highly controversial. Unless Congress extends those adjustments by December 31, millions of taxpayers will be paying significantly higher taxes than they have this past year.

These are five specific decisions that Congress and the White House must make between now and the end of the year. Arguably, each of these decisions is as controversial and difficult as was the recently completed debt limit increase. The nation and the world will be watching whether our Congress and our President can not only reach an agreement, but make the tough decisions that the world's financial community appears to be demanding. Typically Congress and the President prefer to avoid tough and controversial votes in the 12 months before the elections. But this year they will face the toughest votes of their careers, just as their reelection campaigns get underway.

We are indeed in “uncharted waters".

Letter Opposing City of Long Beach Request for Annual Transfer

Fri, 12 Aug 2011 19:47:00 GMT

The Los Angeles Customs Brokers and Freight Forwarders Association
together with other industry trade associations oppose the
City of Long Beach’s request for $16,920,700 from the Port of Long Beach.

Click here to read letter.

Letter to Senate Leaders Opposing Currency Legislation

Fri, 12 Aug 2011 19:49:00 GMT

Pretty soon you will be hearing about the revived effort to penalize imports from China, unless China allows its currency to float. Senator Charles Schumer (D-NY) plans to introduce the Currency Exchange Rate Oversight Reform Act of 2011 soon – it will be the same as the bill he introduced last year, which died when Congress adjourned. A long list of trade industry groups has signed a letter to Congress in opposition, including the PCC and local associations – you will see your local assoc on the attached letter.

Of the 12 Senators who have said they will introduce the bill, none are from the Pacific Coast. I think we will be able to keep our PCC Senators off this bill, but the House is a different matter. The House (with the D Majority) passed this bill last year (it died in the Senate), and currently Nancy Pelosi is leading an effort [a discharge petition requiring 218 signatures of House Members] to force the R leadership to bring this bill to a vote. An identical letter to the one attached, has been sent to the House, with the same PCC and all other signatories.

The bill directs the U.S. Department of Commerce to treat currency undervaluation as a prohibited export subsidy. It would not immediately penalize China for its alleged currency manipulation, rather it would allow the Commerce Department to impose countervailing duties on Chinese goods on a case-by-case basis if and when it determines that the undervalued Yuan serves as an export subsidy.

Schumer argues the Yuan’s low value results in the loss of American manufacturing jobs, since they cannot compete with imports from China that enjoy an artificially low dollar value. The sponsors of the bill hope that it would pressure the Administration to negotiate an agreement with the Chinese Government to de-couple the Yuan from the U.S. Dollar, and allow it to float. The Obama Administration has remained silent on the China currency bill, although it is likely that the President will oppose the legislation.

The trade community is united in opposition to this proposed legislation. It is feared that China could retaliate, as it did in 2009 when it imposed tariffs on U.S. poultry products after the U.S. imposed safeguard duties on Chinese-made tires. Such retaliatory tariffs would do more harm than good to U.S. job creation and economic growth at a time when the United States needs both.

The bill is backed by organized labor, including the AFL-CIO, as well as some domestic industries such as the American Wire Producers Association, the American Iron and Steel Institute, and the Tooling, Manufacturing & Technologies Association.

It should be kept in mind that while the currency issue attracts most of the attention in Congress, there are a number of other issues the U.S. is engaged in with China, including market access, indigenous innovation, and intellectual property rights. In fact, many groups, such as the U.S. Chamber of Commerce, say these issues are more important than the currency issue, although they acknowledge the Chinese currency continues to be undervalued.

Click here for PDF of Letter to Senate Leaders Opposing Currency Legislation