FacebookTwitter    Archive | www.aapa-ports.org June 17, 2013

Los Angeles Port Signs Lease Extension with Yang Ming, Begins Development of Energy Management Action Plan

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The Port of Los Angeles joined Yang Ming on May 30 in signing an agreement extending the ocean carrier’s lease with the port for an additional nine years. Yang Ming’s current lease at the West Basin Container Terminal ends in 2021. The new agreement extends the term to 2030 and will generate port revenue between $365 million and $525 million, depending on cargo volumes. 

In conjunction with the lease extension, Los Angeles Mayor Antonio Villaraigosa signed a Memorandum of Understanding in Beijing to expand and modernize the Yang Ming terminal facilities at the port. As part of the agreement, the port will invest $122 million in improvements at the terminal, including construction of a 1,260 linear foot wharf at Berths 126-129, dredging to a depth of -53 feet at the newly constructed wharf, and expansion of the West Basin Intermodal Container Transfer Facility. The West Basin Container Terminal is a partnership between Yang Ming, China Shipping and Ports America. 

In other news, the port is undertaking an Energy Management Action Plan (E-MAP) initiative designed to improve energy efficiency. The E-MAP will serve as the port’s blueprint to identify, develop and implement various programs to improve energy efficiency, reliability, quality, cost and resiliency while keeping up with the accelerating electrification and energy demand at the port.

The port anticipates dramatically increased energy demand due to the expanded use of shore power; electric cranes, yard tractors and other cargo handling equipment; and future automation.

E-MAP elements will include assessing the port’s existing and future power demands and developing a contingency plan for resuming operations in the event of an unexpected loss in power and an Energy Technology Advancement Program. The latter will be modeled on an existing San Pedro Bay clean air program that funds the demonstration of new technology and new uses for existing technology. 

Outreach to promote energy-efficiency programs and services to port tenants, vendors and others also will be folded into the program. Such services will include the Energy Efficiency Technical Assistance Program (EETAP) being developed by the Los Angeles Department of Water and Power.

EETAP will offer technical expertise to commercial, industrial and institutional customers to help them plan and implement comprehensive solutions that reduce energy consumption and lower utility costs. All major container terminals at the Port of Los Angeles have agreed to pre-register for EETAP.

Throughout the development and implementation of the E-MAP, the port will collaborate with its business partners and the community to share information, concerns and program updates. A final roadmap is due to be presented to the Los Angeles Board of Harbor Commissioners later this year.

"We need to keep up with our ever-growing power needs but we also need to improve our overall power profile to provide the best possible service to our customers," said Port Executive Director Geraldine Knatz, Ph.D. "Improving our energy resiliency will also reduce the port’s vulnerability in the case of natural or man-made events. At the heart of the E-MAP is a fundamental commitment to following the best practices in all aspects of how we do business."

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