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Caribbean Shipping Association Kenneth Riley Presenter President – ILA Local 1422 Charleston Vice-President – International Longshoremen's Association
Caribbean Shipping AssociationKenneth Riley
PresenterPresident – ILA Local 1422 Charleston
Vice-President – International Longshoremen's Association
THE OTHER SIDE OF AUTOMATIONJUSTIFICATION FOR INTRODUCING AUTOMATION OR NEW
TECHNOLOGY IN THE PORTS
INCREASE VOLUMES
LIMITED SPACE
PRODUCTIVITY
COST REDUCTION
EFFICIENCY
SHORTAGE OF LABOUR IN THE FUTURE
BUT ALSO FASHION “ THEY DO IT. SO WE HAVE TO DO IT, BECAUSE IT IS PART OF COMPETITION.”
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…And then came Containerization
Break-Bulk Port Transitionsto Containerization
AutomationKilled the Ports of Georgetown & Port Royal
THE OTHER SIDE OF AUTOMATIONPORT OF ROTTERDAM
6TH LARGEST PORT IN THE WORLD
CONTAINER CAPACITY -12 MILLION
FIRST PORT TO AUTOMATE/LATE 80’S
BEFORE CONTAINERIZATION 25,000 DOCKWORKERS
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THOSE NUMBERS SHRUNK TO 8000
4000 IN CONTAINER SECTION – NUMBERS STILL DECLINING
EVERY LONGSHORE FUNCTION EXCEPT THE LASHING OF CONTAINERS HAS BEEN IMPACTED BY AUTOMATION
AUTOMATING THE PORTS IS A JOB ELIMIMATING PROPOSITION
AUTOMATED TERMINALS IN ROTTERDAM: CONTAINER MOVES AVERAGES 23 PER
HOUR FLAT AND PREDICTABLE COST INSTEAD OF VARIABLE
COSTWHEN THERE ARE NO SHIPS THE COST IS STILL THERE LESS BARGAINING POWER FOR TERMINAL OPERATORS
BECAUSE OF FIXED COST AND FLAT PRODUCTIVITY SHIPPING LINES DEMAND INCREASE PRODUCTIVITY
WITH LARGER VESSELS
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THE OTHER SIDE OF AUTOMATIONPORT OF LOS ANGELES
THE CITY OF LOS ANGELES HARBOR DEPARTMENT PLANNING &ECONOMIC DEVELOPMENT DIVISION –NOT SURE ABOUT IMPACT OF AUTOMATION
COST STRUCTURE AND BUSINESS MODELSNOT SURE OF IMPROVEMENTS IN EFFICIENCY IMPACT ON JOBS AND DEMAND FOR LABOR IMPACT ON EXISTING TERMINALS
AND STILL THE DEVELOPMENT OF AUTOMATED TERMINALS CONTINUES
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THE OTHER SIDE OF AUTOMATIONPORT OF LOS ANGELES
DEPARTMENT’S ANALYSIS SAYS: EXPECT 40 TO 50% REDUCTION IN WORKFORCE AT THE AUTOMATED FACILITY
TRA PAC EXAMPLE IN LOS ANGELES‐ AUTOSTRAD AUTOMATION REDUCED THE NUMBER OF WORKERS
NEEDED PER CRANE BY 53%‐ THE TERMINAL ONCE SERVED BY 400 LONGSHORE WORKERS‐ TERMINAL OPERATORS SAYS “ AUTOMATION MEANS NEW JOBS”NOW ONLY 200 LONGSHORE WORKERS NEEDED A LOSS OF 332,800 MAN HOURS IN THE CASE OF TRAPAC, 40 NEW MECHANICS WERE HIRED THAT IS A MERE 20% OF JOBS THAT WERE LOST
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AUTOMATING THE PORTS IS A JOB ELIMINATING PROPOSITIONADVANTAGES
ONE OF THE GREATEST ASSETS FOR CITY, STATE OR REGION
A GENERATOR OF JOBS
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AUTOMATING THE PORTS IS A JOB ELIMINATING PROPOSITIONDISADVANTAGES
LOCAL RESIDENCES ON DAILY BASIS MUST CONTEND WITH:
TRUCK TRAFFIC
RAIL TRAFFIC
BALLAST WATER
OTHER ENVIRONMENTAL ISSUES
NOISE AND LIGHTNING
THERE MUST BE A TRADEPFF. THAT TRADEOFF SHOULD BE IN TERMS OF GOOD PAYING FAMILY SUSTAINING JOBS.
WITHOUT THOSE GOOD PAYING JOBS, OF WHAT REAL VALUE THEN ARE THE PORTS TO CITIZENS OF THAT COMMUNITY?
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Organized Labor
“Bargains for Balance”
“Balance in the
Workplace”
“Balance in the Community”
“Balance in Business”
AUTOMATING THE PORTS IS A JOB ELIMIMATING PROPOSITION
AUTOMATED TERMINALS IN ROTTERDAM: CONTAINER MOVES AVERAGES 23 PER
HOUR FLAT AND PREDICTABLE COST INSTEAD OF VARIABLE
COSTWHEN THERE ARE NO SHIPS THE COST IS STILL THERE LESS BARGAINING POWER FOR TERMINAL OPERATORS
BECAUSE OF FIXED COST AND FLAT PRODUCTIVITY SHIPPING LINES DEMAND INCREASE PRODUCTIVITY
WITH LARGER VESSELS
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AUTOMATING THE PORTS IS A JOB ELIMIMATING PROPOSITION
CONVENTIONAL TERMINALSCONVENTIONAL OPERATIONS ARE FASTER
THEN AUTOMATED OPERATIONSCONTAINER MOVERS ON CONVENTIONAL
TERMINALS AVERAGES 40 MOVES PER HOUR MANNED OPERATIONS: WHEN THERE ARE NO
SHIPS, THERE ARE NO LONGSHOREMEN AND LESS COST
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Automation Vs Technology
AutomationReplaces personnelImpersonal
TechnologyEnhances productivityGrows & supports communities
Economic prosperity rains down into the community
American waterfront jobs pay 35% more than average
EFFECTS OF AUTOMATION ON LOCAL ECONOMY
MACHINES DO NOT PAY SALES TAXES OR SUPPORT LOCAL INFRASTRUCTURE
MACHINES DO NOT PAY INCOME TAXES OR SOCIAL SECURITY TAXES TO SUPPORT OUR SOCIAL SAFETY NETS FOR UNEMPLOYED, UNDEREMPLOYED AND FOR PEOPLE WHO CAN NO LONGER WORK
MACHINES DO NOT EARN INCOMES AND DO NOT SUPPORT FAMILIES
IN MOST PORTS WHERE A CBA IS IN PLACE THE EMPLOYER PROVIDES A HEALTHCARE PLAN FOR WORKERS
WHEN THE JOBS ARE GONE, THE HEALTHCARE DOLLARS ASSOCIATED WITH THOSE JOBS WILL BE GONE AS WELL.
BIG IMPACT FOR HOSPITALS, THEIR STAFF AND THEIR FAMILIES
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Healthcare
OUR JOB TODAY WAS TO SIMPLY REMIND YOU THAT THERE IS ANOTHER SIDE TO AUTOMATION
I HOPE WE HAVE SUCCEEDED
EVERY YEAR HUNDREDS OF THOUSANDS OF BREAD WINNERS ARE IN THE UNEMPLOYNENT LINE BECAUSE OF REDUNDANCY CAUSED BY AUTOMATIONTHE ECONOMIC IMPACT TO THE LOCAL COMMUNITY IS
GREATLY DIMINISHED BECAUSE OF AUTOMATION, HIGHER UNEMPLOYMENT, LESS SPENDING AND FLEEING PROFITS
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Kenneth RileyPresenter
President – ILA Local 1422 CharlestonVice‐President – International Longshoremen's Association
