PORT REPORT FROM AUGIE BEZMALINOVICH

  1. PAIP

Major public access Infrastructure projects will continue to move forward in next Fiscal Year with the Port expected to be in construction on various projects valued at $121 million and additional projects valued at $58 million in the design phase.    The ports unwavering commitment to investing in LA Waterfront infrastructure has never been more evident than now with $179 million worth of projects in the delivery pipeline including the long standing commitment to connect Wilmington to its historic waterfront.

Future investment through the Public Access Investment Plan is directly tied to actual and projected annual operating income results from 2015 through 2025 with the total estimated funding for new projects prior to the Covid-19 Pandemic based on the Port’s continuing economic activity.  Not surprisingly the Port’s business and financial outlook has been significantly affected by the current economic situation and there is no way to project when cargo volumes and Port revenues will fully recover.   We’re confident that our business will recover, we have much work ahead of us and the short term presents significant uncertainly.  Therefore, recommendations and decisions on the second round of projects for the Public Access Investment Plan will need to be delayed for a few months as the economic recovery takes shape.

Port staff and I will remain in close contact with all our stakeholders through frequent and consistent engagement.  If anyone has any questions or suggestions, please reach out to me.  We are always open to dialogue and finding ways to improve the process.

  1. CAAP

The ports of Long Beach and Los Angeles will update the public on progress toward the goals of the San Pedro Bay Ports Clean Air Action Plan during a Wednesday, June 24, meeting.

Due to the COVID-19 pandemic, the meeting will be held via WebEx, from 10 a.m. to noon. To participate in the meeting, click here to register and you will receive instructions on participating via computer or phone.

Regular advisory meetings were called for as part of the CAAP Update approved by the Long Beach and Los Angeles boards of Harbor Commissioners in November 2017. Records of prior meetings can be found here.

This is the second meeting of 2020 and the ninth under the CAAP 2017 Update.

The CAAP 2017 Update is a comprehensive strategy for accelerating progress toward a zero-emission future while protecting and strengthening the ports’ competitive position in the global economy. Since 2005, port-related air pollution emissions in San Pedro Bay have dropped 87% for diesel particulate matter, 58% for nitrogen oxides, and 97% for sulfur oxides. Targets for reducing greenhouse gases from port-related sources were introduced as part of the 2017 CAAP. The document calls for the ports to reduce GHGs 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. The Clean Air Action Plan was originally approved in 2006.

The ports will take public comments at the advisory meeting to receive input on CAAP implementation issues. The agenda will be posted on the CAAP website’s Stakeholder Advisory Group page prior to the meeting. For more information, visit cleanairactionplan.org.

The Port of Los Angeles and Port of Long Beach are the two largest ports in the nation, first and second respectively, and combined are the ninth-largest port complex in the world. The two ports handle approximately 40% of the nation’s total containerized import traffic and 25% of its total exports. Trade that flows through the San Pedro Bay ports complex generates more than 3 million jobs nationwide.

  1. Clean Truck Program

Joint Ports CTP Statistics

  • 17,966 trucks are in the PDTR
  • 3,293 MY 2014+ trucks registered in the PDTR since October 1, 2018
  • 60% trucks in the PDTR are 2010 EPA compliant trucks
  • 40% trucks in the PDTR are 2007 EPA Compliant
  • 60% of the moves are being done by 2010 EPA compliant trucks
  • 719 LNG trucks are signed up in the PDTR
  • 4.6% of the moves are being done by LNG trucks
  • There are 77 Low NOx trucks that use the .02 Cummins natural gas engines in the PDTR
  • There are approximately 20 Zero Emission Trucks in the PDTR

Clean Truck Fund Rate Resolution

  • Resolution Adopted by Joint Boards on March 9, 2020
  • Approved the 2020 Clean Truck Fund (CTF) Rate = $10 per Twenty-Foot Equivalent Unit (TEU) for loaded containers hauled by Heavy-Duty trucks that enter or exit Port terminals
  • Report back to Boards regarding exemptions

o   Near zero emission trucks exemption are to be evaluated

o   Zero emission trucks will be exempt from the CTF Rate for the life of the program

  • Cooperate with other Ports in establishing their own CTP
  • Meet annually to review the level of the CTF Rate

CTF Rate Contingencies on:

  1. Completion of Truck Feasibility Assessment, including evaluation of availability of trucks – Completed April 2019
  2. Completion of Clean Truck Rate Study – Completed February 2020
  3. Establishment of rate collection mechanism – Underway
  4. CARB adoption of low NOx manufacturing standard – Anticipated August 2020

 

  1. Ports O’Call

Covid closures of Retail, dining and entertainment assets and resulting effect on the financial markets has caused tenancy and financing issues across the commercial real estate markets. The pandemic has impacted retail, restaurant and entertainment operators in a significant manner. Restaurants have largely stopped looking for expansion opportunities and are focusing instead on their existing operations. Some retailers, including national chains, have walked away from signed leases, shuttered stores and filed bankruptcy.  The SPPM construction originally expected to commence in the 2nd quarter of 2020 has been delayed as a result of the current circumstances.  Currently construction is expected to begin in the 1st quarter of 2021.

 

  1. Front Street Beautification  Project

See #6 below – Front Street Beautification project has been combined with the State Route 47 (SR47)/Vincent Thomas Bridge and Front Street/Harbor Boulevard Interchange Reconfiguration.

 

  1. SR 47 off ramp

State Route 47 (SR47)/Vincent Thomas Bridge and Front Street/Harbor Boulevard Interchange Reconfiguration:

 

Schedule provided at previous Neighborhood Council Meeting (1/16/2019):

Environmental Documentation Completion: January 2019

Design Completion: Fall 2020

Construction Completion: Spring 2023

 

New Project Update (6/15/2020):

Environmental Documentation Completion: June 2019

Design Completion: Early Summer 2022

Construction Completion: Spring 2025

Due to unforeseen geotechnical site conditions found at the project site, the Port will perform additional testing and analysis to mitigate anticipated extensive settlement under the proposed freeway offramps.

This additional testing and analysis work will be coordinated with and approved by Caltrans and will delay the completion of our design work by approximately 18-months. Overall we anticipate these unforeseen soil conditions will result in a two year construction delay with Construction completion anticipated in Spring 2025.

 

  1. Outer Harbor Cruise Terminal

The cruise industry has been closed nationally since the beginning of the stay at home orders.  Cruise business is not expected to return until the 4th quarter.  We will not release the outer harbor cruise terminal RFP until the cruise industry has recovered and we are not clear on how long that will take at this point.

 

  1. Warehouse 1

We continue to market this development opportunity through the prospectus we released earlier this year.  Interest has been good despite the stay at home order, however we have not been able to host on site tours.  We are expected to release a request for information by the end of 2020 but that may be adjusted based on how consumer and development markets evolve in the next 6 months.