Middle Harbor: Opening Soon
Port of Long Beach
On March 11, Long Beach Container Terminal (LBCT) will open the gates to the future at the Port of Long Beach.
That morning, LBCT will begin processing empty containers at Pier E, the first stage of operations at the world’s greenest, most technologically advanced marine container terminal.
The soft opening kicks off a two-month progression of increasing activity during which LBCT will phase in export deliveries, import pickups and on-dock rail operations at Pier E. By May, the terminal – the first half of a $1.3 billion modernization project known as Middle Harbor – will be fully operational.
“This represents a critical first step in ramping up for full commercial operations at Pier E,” said Port CEO Jon Slangerup. “We’re working closely with LBCT and all our industry partners to ensure a safe, smooth transition.”
Pier E, Middle Harbor and the Port
The March 11 truck activities come on the heels of more than a decade of planning and investment by LBCT, Orient Overseas Container Line (OOCL) and the Port to transform two aging marine container terminals into a 304-acre marvel. At full build-out, Middle Harbor will have the capacity to handle 3.3 million twenty-foot equivalent units (TEUs) each year. The depth of OOCL’s commitment to the Port is a 40-year, $4.6 billion lease – the largest of its kind for any U.S. seaport – signed in 2012.
When completed, Middle Harbor will have improved water access with 4,250 feet of wharf for working up to three big ships simultaneously, 48,000 feet of track to move up to 35 percent of cargo via on-dock rail, two gate complexes, and 2,250 grounded plugs for refrigerated cargo. State-of-the-art cargo-handling equipment will total 14 dual-hoist Super post-Panamax cranes, 70 automated stacking cranes, 72 automated guided vehicles, five rail mounted gantry cranes, 50 terminal tractors and 250 heavy-duty bomb carts that shuttle containers within the facility.
Over the last six months, LBCT has conducted extensive testing of all the new equipment and operational protocols at Pier E. The terminal has worked closely with the International Longshore and Warehouse Union, a key partner in its success.
“LBCT is committed to ushering in this new era the right way,” said LBCT President Anthony Otto. “This includes our investment in all zero-emissions cargo-handling equipment and comprehensive training.”
The massive redevelopment project coincides with the Port’s aggressive capital improvement program – more than $4 billion over a decade – to upgrade marine terminals, roadways, bridges and the rail network throughout the port. The Port’s single largest program is the Gerald Desmond Bridge Replacement Project, a $1.5 billion investment involving multiple agencies.
Given Pier E’s proximity to the bridge project (the terminal is southwest of the bridge and Pico Avenue), preparations for opening the new gates have included extensive outreach to ensure the entire supply chain is well versed in the new procedures and truck routes for moving cargo through the terminal, said Duane Kenagy, Capital Programs Senior Executive Lead for the Port.
“With the ongoing bridge construction along the Pico Avenue corridor north of Pier E’s new gates, trucks calling at the terminal will be traveling through a construction zone,” Kenagy said. “Ensuring the trucking community knows where to safely enter and exit the new terminal is a top priority for us all.”
What to Expect
Pier E truck lane mapFrom Day One, 100 percent of all truck transactions at Pier E will be by appointment only. Before trucking companies can make an appointment, they must first register on LBCT’s Trucker Portal, which goes live Feb. 26. The first appointment window opens several days later on March 1. Trucking companies are encouraged to pre-register, create log-ins and begin booking appointments as soon as possible.
The terminal will be paperless. Equipment Interchange Receipts (EIRs) will only be available on LBCT’s Trucker Portal.
Trucks will be able to enter Pier E only by turning left into the terminal from northbound Pico Avenue. The intersection is signalized, and northbound Pico Avenue will have a striped turning lane dedicated to trucks entering the terminal.
Pier E itself has been reconfigured so up to 70 trucks, if necessary, can queue inside the gate. Additionally, the truck-only left-turn lane on northbound Pico Avenue can accommodate a single line of queuing trucks, separating them from other traffic so all vehicles can move through the Pico Avenue corridor safely and efficiently. The Port has created the 4,000-foot truck-only lane to provide backup as a precautionary measure.
Trucks traveling southbound on Pico Avenue are prohibited from turning right to enter the terminal because the turning radius is too tight. Instead, they must continue south and loop around the Pier G petroleum coke barns to enter the dedicated Pier E truck lane on northbound Pico Avenue.
Trucks leaving Pier E will use a separate exit gate and turn right onto Pier D Street. Trucks leaving the terminal will have the right of way, while traffic on Pier D Street in both directions will be controlled by stop signs near the truck exit gate. Due to bridge construction, Pier D curves beneath the bridge to lead back to Pico Avenue where a signalized intersection controls the flow of traffic headed in all directions.
Electronic message boards will help guide traffic, and Port staff will monitor the new routes to determine if adjustments are needed. LBCT and Port engineering, transportation planning, tenant services, communications and security staff collaborated on the measures.
“We’ve been working closely to ensure traffic flow is properly handled and there will be minimal impact on gate access to our new terminal,” Otto said.
Outreach
LBCT and the Port are also conducting extensive outreach to the trucking community serving the port complex. During the last two weeks of February, LBCT representatives held six meetings, including one with the Harbor Trucking Association (HTA), to explain the new appointment and gate systems at Pier E. The Port is also notifying all licensed motor carriers in its Drayage Truck Registry – more than 1,400 businesses operating more than 16,000 drayage trucks – of Pier E’s new entrance and exit routes.
The Port and LBCT are also distributing fliers in English and Spanish with gate access information and a map of the entrance and exit routes. Another vital communications tool is the Port’s free LB Bridge mobile app, which can be downloaded for real-time traffic news, information, photos and videos of all lane closures and detours associated with bridge and nearby construction zones in the harbor.
LBCT deliberately chose a Friday (March 11) to open its gates, giving the terminal operator the weekend if any fine-tuning is needed. The terminal’s off-dock Pier B Street Chassis Yard is expected to open soon afterward at 1402 Pier B St. Operated by Pacific Crane Maintenance Co. (PCMC), the yard will be used for pickup, delivery and maintenance of chassis supporting operations at Pier E.
HTA Executive Director Weston LaBar commended the Port and LBCT for keeping the trucking community informed. “LBCT has also done an outstanding job of educating us about how the new terminal is going to work and the intricacies of moving cargo in and out of Middle Harbor once it opens.”
“As bridge construction continues, the trucking community knows we can expect some temporary disruptions and we need to be patient and not let that get in the way of overall progress,” LaBar said. “It’s a short-term inconvenience for what is going to produce more efficiencies and be a win-win for everyone. I really commend the Port and LBCT for all the time and effort and investment they’ve made to bring a world-class terminal to Long Beach.”
The Next Milestones
LBCT will phase in the remaining operations in two- to three-week intervals. “We can’t emphasize enough that all truck transactions will require appointments,” said LBCT General Manager Eric Gordon, who oversees the terminal’s yard and gate operations.
On March 23, LBCT plans to start receiving export cargo in advance for the first ship call at Pier E.
On April 7, LBCT will begin processing import cargo coinciding with the arrival of the OOCL Miami. The 8,888-TEU vessel will be the first ship worked at Pier E after it opens.
The modern terminal will make dual transactions, inbound and outbound, more convenient. Appointments must be made for both, and outbound and inbound containers must be the same size, Gordon said. “If trucks deliver a 20-foot container and want to do a dual transaction, they have to pick up a 20-footer. Likewise, if they bring in a 40-foot container and want to leave with another, it has to be a 40-footer.”
On-dock rail operations are scheduled to start in May.
What Else to Expect
For now, LBCT continues to operate Pier F as a separate terminal with no appointments. Although some preliminary construction for the final phase of Middle Harbor has begun, Pier F will remain open until 2017 when it will close to finish construction. While Pier F remains open, the off-dock chassis yard at 925 Harbor Plaza will continue to support its operations.
Middle Harbor is scheduled for completion in 2019. By then, the new bridge will also be finished and the old span may even be gone. Truck routes are likely to change again, and Port transportation planners and engineers will continue to develop the most efficient and safe routing with robust outreach.
The intensive preparation to ensure a smooth opening of Pier E is indicative of how closely the Port and all its supply chain partners are working together, Slangerup said. “As our Port of the future takes shape, we continue to collaborate to address every foreseeable detail to optimize the flow of cargo every day.”
FTC Extends Comment Period on Proposed Changes to Jewelry Guides
Federal Trade Commission
The Federal Trade Commission has extended the deadline for submitting public comments on proposed amendments to its Jewelry Guides.
The Jewelry Guides (formally, the “Guides for the Jewelry, Precious Metals, and Pewter Industries”) explain to businesses how to avoid making deceptive claims about precious metal, pewter, diamond, gemstone, and pearl products, including what types of disclosures are needed.
In 2012, as part of its systematic review of its rules and guides, the Commission sought public comments on the Guides’ costs and benefits, and on whether they should be repealed, amended, or retained in their current form. It also requested comments on specific issues concerning composite gemstones, pearls, diamonds, and precious metal alloys, as well as comments regarding any other issues or concerns about the Guides.
Based on comments received and on information obtained during a June 2013 public roundtable, in January 2016, the agency proposed, and sought public comments on, revisions to the Guides regarding below-threshold alloys, precious metal content of products containing more than one precious metal, surface application of precious metals, lead-glass filled stones, “cultured” diamonds, pearl treatments, varietals, and misuse of the word “gem.”
Based on a request by a trade association representing jewelry industry members, the FTC is extending the public comment period by 60 days.
The Commission vote approving the notice to extend the public comment period on the Guides for the Jewelry, Precious Metals, and Pewter Industries was 4-0. The notice will be published in the Federal Register soon. Instructions for filing comments appear in the Federal Register Notice. Comments must be received on or before June 3, 2016. All comments received will be posted on the FTC’s website. (FTC File No. G711001; the staff contact is Reenah Kim, Bureau of Consumer Protection, 202-326-2272)
Benjamin Franklin a Big First for Long Beach
Port of Long Beach
As recently as six months ago, the Port of Long Beach didn’t expect to host ultra-large container vessels like the CMA CGM Benjamin Franklin in the next five years.
“In November, CMA CGM came to us and asked, ‘How soon can you receive the ‘Benjamin Franklin?’” said Port Director of Tenant Services and Operations Glenn Farren.
The answer ended up being sooner than Port officials might have thought possible. The Benjamin Franklin, the largest container vessel ever to come to North America, visited SSA Marine’s Pacific Container Terminal (PCT) from Feb. 18-24, loading and off-loading almost 13,000 containers. The figure is a staggering two-and-half times more than Long Beach’s already world-leading 5,000 containers moved during a typical vessel call.
A lot of preparation went into the Benjamin Franklin’s stay. Chassis and trains were queued to speed the rapid movement of containers from the docks inland to warehouses locally and across the country. Scuba divers toiled in the deep to remove parking blocks, lashing poles and other miscellaneous debris from the harbor bottom. And late-year maintenance dredging of the Pier J turning basin ensured the pilots could maneuver the massive ship into Berth J268. Crane work was also required, with PCT raising some of its cranes from 126 feet to 152 feet.
To their credit, PCT had that last task covered, even before the Ben Franklin’s surprise visit became a possibility.
“Luckily, the crane raising was already in progress,” Farren said. "The operations team at PCT has always done a great job of looking ahead and preparing for the future."
Why did the world’s third-largest shipping line send one of the so-called big ships to Long Beach years before they were anticipated? Testing the Port’s ability to handle a vessel of the CMA CGM Benjamin Franklin’s size was one reason. The 18,000-TEU (twenty-foot equivalent unit) ship is more than 25 percent larger by capacity than anything the Port had handled before.
Stagnant economies in China and Europe were another factor. More and more, ocean carriers are routing larger ships to the West Coast because it’s more profitable than the Asia-to-Europe trade.
The price of a container move from China to Europe has dropped to less than $100 in the last 18 months, Port of Long Beach CEO Jon Slangerup told Tie Lines last month. Shipping costs between Asia and the United States are running between $800 and $900 per container.
“That’s why you’re seeing the 18,000-TEU vessels here way, way in advance of what we were planning for,” Slangerup said. “It’s not profitable to fill up a ship of that size as rates drop toward $50 per container.”
The Benjamin Franklin also officially entered service in Long Beach on Feb. 19 during an inauguration ceremony hosted by CMA CGM and attended by hundreds of elected leaders, port officials and industry executives.
In more big ship firsts, the Port of Long Beach will become the first and only seaport in North America able to handle an 18,000-TEU ship fully loaded when Long Beach Container Terminal opens Middle Harbor in April.
The $1.3 billion automated Middle Harbor terminal — nearly all-electric, near zero emissions — will be the most technologically advanced in the Western Hemisphere and stand as a green, highly-productive model for the shipping industry. When fully completed in 2020, Middle Harbor will be able to move 3.3 million TEUs a year, and handle 24,000-TEU ships.
The Port has an ongoing $4 billion capital program to modernize facilities to bring long-term, environmentally sustainable growth.
CBP at JFK Seizes Heroin in Sneakers
U.S. Customs & Border Protection
JAMAICA, N.Y. — An arriving passenger at John F. Kennedy International Airport tried to ‘sneak’ past U. S. Customs and Border Protection officers, but was stopped in his tracks.
On February 24, CBP officers stopped Mr. Perez Beltran, a United States citizen, who arrived on a flight from Santo Domingo, Dominican Republic. During the course of the inspection, CBP officers discovered a pair of sneakers in his luggage that appeared heavier than normal. CBP officers probed the sneakers and found a tan powdery substance that tested positive for heroin. Two additional pairs of drug-filled sneakers were discovered in his luggage as well.
Approximately 3 lbs. of heroin was seized, with an estimated street value of $90,000.
“This latest seizure demonstrates the vigilance of our CBP officers, and their excellence in detecting those who would try to smuggle these illegal substances,” said Robert E. Perez, Director, Field Operations New York.
CBP officers placed Mr. Beltran under arrest and turned him over to Homeland Security Investigations (HSI). He now faces federal narcotics smuggling charges and will be prosecuted by the U.S. Attorney’s Office in the U.S. Eastern District Court of New York.
All defendants are considered innocent until proven guilty.
United States and Honduras Achieve Breakthrough on Intellectual Property Protection and Enforcement
United States Trade Representative
New 2016 Work Plan will benefit American agriculture, creative industries, telecommunications, textiles and apparel and other exports that support high-paying jobs here at home by preventing piracy and intellectual property theft
Washington, D.C. – The Office of the United States Trade Representative (USTR) announced today that the Government of Honduras (GOH) has committed to undertake a series of actions to strengthen the protection and enforcement of intellectual property in Honduras after the United States took special measures last year to increase engagement on intellectual property enforcement there.
This breakthrough was reached after the United States carried out an Out-Of-Cycle Review of intellectual property protection in Honduras in order to determine if that country should be placed on USTR’s Special 301 intellectual property Watch List.
These new GOH commitments in the 2016 Work Plan will address concerns raised by the United States in the Out-Of-Cycle Review and will strengthen implementation of the CAFTA-DR commitments relating to intellectual property.
“Today’s agreement is an important success for the fair treatment of American businesses and workers, including in the dairy, creative industries, telecommunications textiles and apparel and industries,” said U.S. Trade Representative Michael Froman. “Honduras is to be commended for the new commitments it has made to advancing intellectual property protection and enforcement, and for the collaborative approach it has taken to resolving these issues with us.”
Intellectual property rights (IPR) enforcement is the principal focus of the commitments by the Honduran government. To bolster criminal enforcement, the GOH will substantially increase the number of prosecutors specializing in criminal IPR enforcement by the end of this March. The GOH has also committed to publish quarterly reports on prosecution case activity, in order to promote transparency and accountability as this plan is implemented.
Additionally, the Work Plan addresses signal piracy in cable and satellite transmissions. Prosecutors will work to efficiently resolve pending criminal investigations associated with this problem and GOH authorities will engage with rights holders to promote expanded use of administrative enforcement options. The GOH’s cable regulatory authorities have committed to accept right holder identification of authorized cable licensees, and to take appropriate administrative enforcement actions, including the imposition of fines and suspension of business licenses in appropriate cases. These regulatory authorities also committed to publish quarterly reports on administrative enforcement activity.
The Work Plan also addresses the need for greater clarity in the scope of protection for geographical indications (GIs). GOH authorities have committed to clarify how an interested party may seek clarification as to whether individual components of a compound geographical indication are generic and therefore not entitled to GI protection when used in isolation. The GOH has also made key commitments to clarify the possible generic status of individual terms in future cases, via public notices. For greater clarity as to the scope of GIs already granted, Honduran authorities have posted clarifying information on a GOH official webpage. Among the terms clarified as being generic in that information are “parmesano” (the Spanish language term for “parmesan”), “provolone,” and “bologna.” These commitments will assist U.S. food and agricultural producers, such as dairy farmers, to increase trade in cheese and meat products with Honduras.
Other commitments provide cross-cutting benefit. GOH authorities have committed to review draft measures to improve border enforcement through implementation of a customs trademark registry. The GOH also committed to reactivate the Interagency Commission to Combat Piracy and Counterfeiting in order to strengthen interagency coordination and cooperation in the protection of intellectual property rights in Honduras.