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Facility Expansion: New York, Los Angeles

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New York City to Activate Maritime Shipping Hub in Brooklyn

The U.S. Maritime Administration (MARAD) has officially designated the South Brooklyn Marine Terminal (SBMT) and nearby Red Hook Container Terminal part of America’s Marine Highway System, making these cargo operations eligible for federal support.

"By investing in port and marine transportation infrastructure, New York’s leaders are investing in an efficient transportation system that will connect goods to the city and cut congestion on the region’s bridges and tunnels," said MARAD Administrator Paul "Chip" Jaenichen. "This project underscores the need for the Obama Administration’s GROW AMERICA Act, which will provide the long-term funding certainty to support further critical infrastructure projects nationwide."

These announcements are considered key milestones in New York City’s ongoing efforts to reestablish Southwest Brooklyn as a shipping hub and underscore its interest in the long-term phased development of a deep water container port in New York harbor.

"This is a big step towards putting our waterfront back to work. Soon, cargo ships will be docking here in Brooklyn, bringing good jobs, taking trucks off our streets and helping spur this growing industrial hub," said Mayor Bill de Blasio. "This transformation is happening because of the dogged advocacy of our congressional delegation, our partners in the City Council and our colleagues at the Port Authority, with whom we’ve worked together to bring this new port online."

In January 2015, New York City Economic Development Corporation (NYCEDC) and the Port Authority of New York & New Jersey co-sponsored an application to the MARAD to designate existing and future barge service across New York Harbor as a segment of the American Marine Highway Program. The new route will provide access to origins and destinations east of the Hudson River for freight arriving and departing the Port Newark Container Terminal, further enhancing New York Harbor’s cross harbor freight network and supporting existing container-on-barge service between Global Container Terminals in Bayonne and Staten Island.

In May, the city council approved a long-term master lease between the city and the NYCEDC to activate an industrial maritime facility at the South Brooklyn Marine Terminal. Upgraded rail connections at the site make SBMT the only marine terminal in Brooklyn, Queens, and Long Island capable of handling ocean-going vessels, barges and rail on the east side of New York Harbor.

The agreement provides for the formation of the Sunset Park Waterfront Planning and Jobs Task Force to assist in long-term planning for the future of the waterfront and balance the City’s industrial goals with the needs of the Sunset Park community. NYCEDC predicts activation of SBMT will result in "hundreds of jobs on the working waterfront."

"If we are to remain competitive as a region, we must address the need for additional cross-Hudson transportation capacity," said Port Authority Port Commerce Director Richard. "This initiative is one of the many solutions to help mitigate the already limited resources used to transport cargo in the New York and New Jersey region. The barge service creates the extra benefit of reducing congestion and the port's environmental footprint."
NYCEDC and the port authority are both AAPA Corporate members.

Los Angeles To Start Construction on Yusen Terminal Improvements

The Port of Los Angeles will begin construction this summer on a two-year project to improve the marine container terminal operated by Yusen Terminals LLC. The Los Angeles Board of Harbor Commissioners has awarded a $44.6 million contract to upgrade berths, and backlands at Berths 212-224.

"This project consists of strategic improvements to make Yusen a more agile terminal and strengthen our competitive edge," said Port Executive Director Gene Seroka. "In addition to making the best use of port property, it incorporates green features and practices that further our commitment to the highest environmental standards."
 
"Yusen is pleased to work with the Port of Los Angeles to improve our wharf and terminal," said Alan McCorkle, Vice President of West Coast Operations for NYK Ports. "This project will allow Yusen to handle vessels and move cargo more efficiently for our customers."

NYK Ports consists of Yusen Terminals LLC and Ceres Terminals Inc., which are sister companies jointly owned by the NYK Group and Macquarie Infrastructure Partners III.

Based on design, project management, and construction costs, the port’s total investment is estimated at more than $67 million. That includes cost for an on-dock rail project which will be performed under a separate contract in 2016. Additionally, Yusen estimates it could invest more than $60 million in support of the project. About $8 million of the port’s costs will be paid from California Proposition 1B Transportation Bond funds.

Yusen operates the 185-acre container terminal under a long-term lease with the port that extends through 2026. The project is part of the port’s larger capital program aimed at enhancing berth, gate and rail efficiencies at all Los Angeles marine terminals. During the next five years, the port plans to invest more than $800 million in its facilities.

The Yusen project consists of upgrading wharf, and backland infrastructure. The improvements will allow Yusen to simultaneously work three container ships of up to 13,000-, 11,000- and 6,500- TEU capacity, respectively.
To date, the terminal’s largest caller at has been an 8,500-TEU vessel. It terminal typically receives 6,500-TEU ships and works two vessels concurrently.

Major project elements include:
  • Deepening Berths 214-216 from 45 to 53 feet and Berths 217-220 from 45 to 47 feet.
  • Adding up to four new ship-to-shore gantry cranes and raising some existing cranes to equip the terminal with up to 14 operating Post-Panamax cranes, including eight Super Post-Panamax cranes with a maximum outreach of 197 feet, or 22 container rows across.
  • Extending the wharf crane rail infrastructure that supports lateral repositioning of ship-to-shore cranes by adding 1,500 feet of crane rail at Berths 217-220.
  • Adding four new alternative maritime power (AMP) boxes at Berths 217-220 to provide shore to ship electrical connection facilities.
  • Increasing Yusen’s on-dock rail capacity 25 percent by adding a single 2900-foot line of loading track to accommodate higher container volumes in a short period of time when large ships call.
The project incorporates 25 measures to mitigate environmental impacts during construction and ongoing terminal operations.They include using the cleanest construction equipment, implementing noise reduction strategies and recycling building materials for use on-site or other construction projects.

Green practices include:
  • By January 1, 2017, 95 percent of the ships calling at the terminal will comply with the Port’s expanding Vessel Speed Reduction Program and slow to 12 knots with 40 nautical miles of Point Fermin.
  • By 2026, NYK-operated ships calling at the terminal must run on shore power for 95 percent of the time they are at berth.
Independent energy audits will be performed every five years. Energy-saving technology will be used wherever possible throughout the facility.

The construction project is expected to generate about 592 jobs during construction and add more than 2,200 permanent direct and indirect jobs to the Southern California economy through 2026. Construction will be performed under a project labor agreement designed to facilitate timely project completion, ensure fair wages are paid and promote use of local labor.
 

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