What are some of the biggest challenges and initiatives facing the Port of Oakland heading into 2005?
Our biggest challenge from a maritime operations perspective is deep water. We have a major dredging operation underway but we would like to speed up the project. The federal government has not been able to pay its share of the dredging project at a pace that parallels the window of opportunity we have right now to gain first-port-of-call status. We need to be able to accommodate the larger container ships that are being built. However, in order to do that on a regular basis we’ve got to deepen the Oakland channel to minus 50 feet. We’re going forward with a strategy to invest more of our share of the cost of the dredging project up front. That way we can accelerate the project and keep us on track to handle more first-port-of-call business.
With the recent spillover of vessel calls to Oakland from the L.A.-Long Beach ports due to Peak Season congestion there, is it possible we’ll see more container carriers turning to Oakland for their first call inbound on the West Coast?
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The Port of Oakland could certainly serve as a relief valve. We’ve completed our Vision 2000 maritime expansion program, which means we currently have almost twice the capacity we had before. We’ve got 29 post-Panamax cranes, of which a dozen are super-post-Panamax, with more on the way. We are already working on expanding our share of the West Coast first-port-of-call business. And once we’ve deepened our channels we will be ready to routinely welcome ocean carriers at Oakland that have the newer, larger container vessels in their fleet. The amount of international trade coming into the U.S. through its seaports is expected to continue climbing, so I don’t think we’re going to see the congestion issue going away anytime soon.
What is the Port of Oakland currently doing and looking to do in the commerce security realm? Any additional comments on security funding, or the lack thereof?
We’ve made a lot of important security improvements at the Port of Oakland since 9/11, but there’s a lot more to do. As a landlord seaport, we don’t have direct responsibility for day-to-day security. We’re more involved in security projects such as implementing a new emergency communications system, adding video surveillance, and improving fencing — the types of physical changes you would see at the marine terminal facilities.
With regards to commerce we’re pleased to be a certified member of Customs-Trade Partnership Against Terrorism (C-TPAT), which happened in the fall of last year (2003). As you probably know, C-TPAT is a government/business initiative to increase cargo security while at the same time improving the flow of trade.
Post-9/11 security at seaports poses a huge economic challenge. We are all looking for new funding for financing post-9/11 security measures. At the Port of Oakland, we’ve applied for somewhere between $70-80 million in federal seaport security grants, but we’ve received only about $7 million so far. It’s understandable since all the ports around the country need to share the funds. Security infrastructure costs can be prohibitive; there’s a real need for more financial support from the federal government on this.
What is the vision of the Port of Oakland looking out to the year 2020?
We’ll have access to a portion of former Oakland Army Base land, which has the potential to be used in many ways. We’ll make the decisions of how to best use the land depending on the needs of our tenants and the demands of the marketplace. Over the next few years we will be reconfiguring some of the marine terminals for greater efficiency. We will likely also realign and expand one of the two near-dock rail facilities.
Industry experts say national maritime trade volumes are expected to double by 2020. However, some economists estimate that the doubling could occur much earlier due to American consumer demands. Everything we’re doing at the Port of Oakland is moving us in the direction to be prepared to handle that growth.
Outside of the seaport, another very important issue that needs to be addressed is improving the efficiency and capacity of both the U.S. and international freight transportation system over the next 10 years. I believe that’s going to be critical in order to avoid the congestion that is already threatening the system’s present ability to provide reliable service.
Did your career in the private sector of transportation prepare you for the top job at a public port authority?
If you had asked me years ago when I was in the Marines what I’d be doing at this point in my life, I never would have guessed that I would be running an international seaport. This is definitely a major milestone in my career.
Now I have experience in both the public and private side of the Port of Oakland’s operations. I’ve spent three years as Director of Maritime here at the port, and prior to that I was area vice president, Northern California for Marine Terminals Corp. where I was responsible for the overall productivity, safety, and profitability of the company’s Northern California division. As a former customer of the port, my experience certainly has made it a lot easier for me to understand what it’s like to be on the other side of the table and what has to happen to make things work, all of which has provided me with the opportunity to direct the port’s activities in a way that is more sensitive to our customers. We’re developing strategic partnerships and will be keeping the focus on our business and the needs of our customers.
I’m grateful to have had the kind of work background that has brought me to where I am today. I’m very excited about the possibilities for the port and feel honored to have the chance to play a role in its future.
