Leveraging Ports for Sustainable Economic...

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Leveraging Ports for Sustainable Planning and Development

Michael Vanderbeek Manager of Business Development

Port of Long Beach

vanderbeek@polb.com

Southern California as a Case Study

Sustainable Economic Development

Key Policy Question

• How do you BALANCE benefits & impacts within port

cities/regions to ensure that international trade is a

sustainable, net benefit enterprise to stakeholders?

Presentation Outline

The Ports of LB/LA

Ports + Economic Development + Sustainability

Port-Region Collaboration As An Implementation

Instrument

The Ports of LB/LA

Instrument

Long Beach/L.A. As A Single Gateway Source: Oak Ridge National Laboratory. BTS. Containerization International

Southern California’s Ports - LB and LA

Ports of LB and LA - Benefits

More than $320 billion USD worth of cargo handled in 2011

• Nearly 40% of all U.S. containerized trade

• All 50 U.S. states served by Southern California ports

• $120 billion USD in wages

• $30 billion USD in State (California) and local taxes

Ports of LB and LA - Benefits

Approximately 3.5 million jobs across U.S. are linked to

Southern California ports

• Approximately 700,000 jobs in Southern California (five

county) are linked to port activity

• 9% of all regional employment is port/trade-related

• 12% of Long Beach employment is trade/port-related

Ports of LB and LA - Impacts

Traffic

• Constant flow of trucks and trains

• Major user of public infrastructure (roads, bridges,

Public Health

• Major regional contributor of Sulfur Oxide (SOx)

• Major regional contributor of Nitrogen Oxide (NOx)

• Major regional contributor of Diesel PM

Land Use

• Absorbs thousands of acres of premium (sort of) urban

waterfront real estate in SoCal

Port Impacts - not just SoCal

Far from water...but close to population centers

Birmingham, AL

North Baltimore, OH Dallas, TX

Joliet, IL

Key Question for Planners

Good Traffic Bad Traffic

How do you reconcile these seemingly opposite but integrally

connected urban situations as a planner?

The Ports of LB/LA

Instrument

What Is Economic Development?

Economic development refers to “the sustained, concerted

actions of policymakers and communities that promote the

standard of living and economic health of a specific area. Such

actions can involve multiple areas including development of

human capital, critical infrastructure, regional

competitiveness, environmental sustainability, social

inclusion, health, safety, literacy, and other initiatives.”

-Wikipedia

How Do Ports Perform?

Development Goal Area Port Contribution

human capital POTENTIAL BENEFIT

critical infrastructure BENEFIT

regional competitiveness BENEFIT

environmental sustainability IMPACT/POTENTIAL BENEFIT

social inclusion IMPACT/POTENTIAL BENEFIT

health/safety IMPACT

Sustainable Economic Development

Key Policy Question

• How do you balance benefits and impacts within port

cities/regions to ensure that domestic & international trade

and goods movement are a sustainable, net benefit

enterprise to stakeholders?

Possible Answer

• By leveraging port activity and regional collaboration to

make economic development a mechanism for

sustainability

The Ports of LB/LA

Instrument

Green Business Incubation: PortTechLA

PortTechLA Mission

“To attract and mentor companies with technologies

that will enable the Port, and ports worldwide, to meet

their immediate and future environmental, energy,

security and logistics goals”

PortTechLA Services

• Provide physical space for technology companies near

the ports

• Business and IPR mentoring, financing seminars

• Provide access to angel investors and VC opportunities

Port of Los Angeles, City of Los Angeles, San Pedro Chamber of Commerce,

Wilmington Chamber of Commerce, Long Beach Chamber of Commerce

Green Tech Commercialization: TAP

TAP Mission

“To accelerate the verification and commercial

availability of promising new “green” port-related

technologies”

TAP Goals

• Encourage innovation

• Demonstrate effectiveness in order to facilitate

commercialization

• Reduce emissions and other environmental impacts

Port of Long Beach, Port of Los Angeles, participating companies

Community Benefits: Mitigation Grants

Part of comprehensive strategy to offset impacts of port-related

operations

• Health-care and senior facilities

• Schools and related sites

• Greenhouse gas emissions reduction projects

$17.4 million spent to date

• $5 million to educate families on asthma care, screen at-

risk populations for respiratory illness, and build a

cardiovascular disease diagnosis laboratory

Port of Long Beach, Long Beach Unified School District

Workforce Development: ITEP

ITEP (International Trade Education Program) Mission

“To produce job-ready, college-prepared graduates by

marshaling the financial, social, and intellectual resources of

the trade, transportation and logistics industries.”

ITEP Goals

• Prepare at-risk students for the meaningful employment

• Infuse school curriculum with industry based programs

• Develop business skills in students

• Provide access to internships and create an employment

pipeline for program graduates

Port of Los Angeles, California State University, U.S. Coast Guard, Comerica Bank,

Aquarium of the Pacific, Securitas, Watson Land Company, numerous others…

How Do Ports Perform?

human capital POTENTIAL BENEFIT

environmental sustainability IMPACT/POTENTIAL BENEFIT

social inclusion IMPACT/POTENTIAL BENEFIT

health/safety IMPACT

How SHOULD Ports Perform?

human capital BENEFIT

environmental sustainability BENEFIT

social inclusion BENEFIT

health/safety BENEFIT

Conclusions - Part I

Trade benefits are disbursed; trade impacts are concentrated

Demonstrating local benefits beyond wages is increasingly

important to justify costs (impacts) of port development,

expansion and even existing operations

Planners must understand the critical role of goods movement

in urban economics

Leveraging port influence and operations to facilitate

sustainable economic development by focusing on innovative

solutions to planning problems is key

Conclusions - Part II

Ports CANNOT address the complex issue of how benefits and

impacts are distributed

Ports CAN approach economic development more holistically

in collaboration with regional partners to leverage their

influence and operations to:

• Build additional human capital in port-adjacent areas;

and to

• Mitigate their impacts by helping to develop and

support environmentally preferable technologies as well as

community-focused benefits

Leveraging Ports for Sustainable Planning and Development

Michael Vanderbeek Manager of Business Development

Port of Long Beach

vanderbeek@polb.com

Southern California as a Case Study

Sustainable Ports…

Sustainable Cities

April 16, 2012

Noël P. Comeaux, PMP, AICP Office of Port Infrastructure

Maritime Administration/DOT

Past-Chair, Transportation Planning Division

American Planning Association

Shipping Routes

Source: Cincinnati Barge & Rail Terminal

Ocean exploration has been around

since…wind.

Modern shipping involves 1000’

container vessels & larger bulkers:

o Stimulating commerce

o Supplying energy

Import Freight Corridor – Examples

U.S. Surface Transportation System

Livability?

Evergreen Container Vessel – being loaded and unloaded.

Port “Sustainability” & Urban Planning

Economic Development /

Competitiveness

Competing Land Uses

Vehicular Impacts

Complimentary Land Uses

Mitigating Impacts

Terrorist / Hazard Mitigation

Economic Development / Competitiveness

Sustain or increase throughput

capacity of key commodities

Initial & Adapting Industrial-

Commercial Urban Development

• For coastal & navigable waterway

population centers

Trade & Hence Job growth

Retail development for passenger

ferry services

Residential development near

• Supporting commercial & industrial development

• Port facilities

Marine terminals adjacent to waterfront parks

Obsolete cargo terminals versus:

• Potential waterfront park land

• Retail Development

• High-rise residential development

Vehicular Conflicts

Highest & Best Land Use?

Competing Land Use

Vehicular Impacts

Truck versus…

• Passenger vehicles

Near port facilities

On inner-city highways

• Bicycle movements

• Pedestrians

Class 8 Diesel Truck Emissions

Truck Parking

Ferry services

• Passenger vehicles v. pedestrians/bicycles

Complimentary Land Use

Viable commercial & industrial

development

• Near port facilities

Nearby, retail development

• For passenger/commuter ferry services

Commercial / industrial business

Impacts

Emissions

Hazard Events

Vehicular Impacts

Terrorist/Hazard Events

Source: Virginia Department of Transportation

Trucks and Cars on Interstate-64

Mitigating…Impacts

Flood/noise walls

Dedicated/grade-separated roadways

• Trucks v. other - cars, bikes & pedestrians

Vegetative Buffer Zones

Emissions Reduction

EPA Clean Diesel Program

• Truck & Maritime

Re-use of obsolete port facilities

• Recreational park (Seattle, New Orleans)

Working with developers

Educating community

• Community Outreach

• Viewing facilities/platforms to see port operations

Terrorist/Hazard Events

Post-Event Recovery

• Evacuating people

• Post-event shelters

• Relief supplies

• Homeland security/military equipment

Providing facilities for unloading, maintenance, or reconnaissance.

Sustainable Development /Planning

• Evacuation alternatives to local roadway network

• Shelter-in-place facilities

On land or water

• Develop facilities for given events

MARAD Programs

America’s Marine Highway Program

• Short Sea Shipping

• Provide additional freight network capacity on viable waterways for given market

• Benefits: roadway congestion, emissions & risk

Port Infrastructure Program

• Guam: 30,000 U.S. Marines (planned)

And families

• Enables MARAD to continue supporting the Government of Guam through the Port’s redevelopment, to handle more cargo for new US personnel and local population.

Port Sustainability Initiatives

Port of Long Beach

• Michael Vanderbeek, Manager of Business

Development

Organisation for Economic Co-

Operation & Development (OECD)

• Olaf Merk, Project Manager

Regional Competitiveness & Governance

Division, Public Governance & Territorial

Development Directorate

Contact Information

Mr. Noël P. Comeaux, AICP, PMP

• Maritime Administration

• Contact Information:

Noel.Comeaux@dot.gov

202-366-5527

Sustainable Ports,

Sustainable Cities:

The case of Hamburg

Olaf Merk (OECD)

16 April 2012, APA National Planning Conference, Los Angeles

OECD and Port-Cities

• Organisation of Economic Co-operation and Development (OECD), based in Paris

• 34 members: developed market economies

• Port-Cities Programme (2010-2013): network, case studies and synthesis report

• www.oecd.org/regional/portcities

• One of the case studies: Hamburg

Hamburg and Europe’s “blue banana”

Hamburg in 17th century

Hamburg nowadays

Lessons from Hamburg

1. Create economic value for the city

2. Balance port-city land use

3. Mitigate impacts and facilitate pride

4. Align institutional interests

1. Create economic value

• Port production value: € 8.3 bn (2010)

• Port jobs: 78,902 (2010)

• Output multiplier: 1.71

• Challenge: opportunity costs and spill-over effects to other regions

• So: need for economic value for the city

Port used as an economic asset for the city:

• Ship building, ship repair

• Maritime headquarters

• Maritime education and research

• Ship finance, brokers, consultancy

• Regional industries requiring quay access

• New opportunities: renewable energy

Intensified by the impact of the crisis (lost market share)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Rotterdam Antwerp Hamburg

Port Area

Policy approaches:

• Sensitivity of port to land productivity

• Land compensation deals (HafenCity)

• Anticipation legal nuisance complaints

• Regional freight strategies (Logistics Initiative Hamburg)

Noise, air pollution, congestion, land use

Policy approaches:

• High rail share in hinterland modal split

• Building codes

• Greening terminals

• Opening up the port (port anniversary, Hamburg Cruise Days, bike paths in port)

Policy approaches:

• High rail share in hinterland modal split

• Building codes

• Greening terminals

• Opening up the port (port anniversary, Hamburg Cruise Days, bike paths in port)

4. Align institutional interests

• Port/urban: two separate planning laws

• Public/private: city shareholder of port, terminal operator and carrier

• City/suburbs: de-concentration of logistics

• Between states: the river connecting Hamburg to the sea is in other states.

• State/federal: investment for dredging, links to hinterland

Sustainable ports

Sustainable cities

The case of Hamburg

olaf.merk@oecd.org

Leveraging Ports for Sustainable Economic...

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