email: [email protected] • web site: www ... · more truck drivers. a direct pipeline of...

8
Volume 76, No. 8 August 2012 Published by the Virginia Maritime Association, Norfolk, Virginia email: [email protected] • web site: www.VAMaritime.com Seeking Answers on State’s Port Deal Break Down in Negotiations for New ILA Contract S ince the May 23 announcement by Virginia’s Secretary of Transportation, Sean Connaughton, that over 45 days earlier his office had received an unsolicited proposal from APM Terminals to operate the state-owned terminals for the next 48 years. The VMA has been gathering and providing information to our membership about this very important issue. Early on, Eric Sisco, President of APM Terminals Americas, generously agreed to provide an overview of their proposal to VMA’s Board of Directors and address questions. APM has made presentations to other groups and submitted an addendum to their original proposal in an effort to address concerns raised about the potential for discriminatory pricing and/or service; suggesting the Virginia Port Authority (VPA) have some oversight. Tony Kinn, Director of the Office of Transportation Public-Private Partnerships (OTP3), met with the VMA Board of Directors on June 26 to discuss the state’s process for considering proposals under the Public-Private Transportation Act (PPTA). The OTP3 office assured VMA they would conduct significant outreach in the performance of their due diligence and provide clarity to lingering questions about key dates, decisions to be made, and who had the authority to make those decisions. At his request, the Association followed up with a significant effort to put the OTP3 office in touch with stakeholders throughout the maritime community. To date, the VMA is not aware of any significant outreach to those stakeholders and the OTP3 has not clarified who has actual decision making authority. It remains VMA’s understanding that, while advice can be given by the VPA Board of Commissioners, legislators, and others, all the actual decision making authority lies in the hands of the Secretary of Transportation. The VMA has heard from numerous steamship line customers objecting to APM’s proposal because it would give a competitive advantage to Maersk Line, though Mediterranean Shipping Company (MSC) and CMA CGM have recently changed their stances. The VMA has also heard from shippers, other business organizations, and the cities of Portsmouth and Norfolk, continued on page 2 continued on page 3 O n August 22 the negotiations for a new International Longshoremen’s Association contract covering dockworkers at East and Gulf Coast ports broke down. The current contract expires September 30. Harold Daggett, President of the International Longshoremen’s Association (ILA), broke off talks with the United States Maritime Alliance (USMX). Shippers, concerned at the slow pace of progress in the negotiations, had already begun making contingencies and diverting some of their cargo away from East and Gulf Coast ports. The ILA is the largest union of maritime workers in North America, representing upwards of 65,000 longshoremen on the Atlantic and Gulf Coasts, Great Lakes, major U.S. rivers, Puerto Rico and Eastern Canada. The USMX represents employers of the East and Gulf Coast longshore industry. Membership consists of 24 container carrier members, including the 10 largest carriers worldwide, and every major marine terminal operator and port association on the East and Gulf Coasts. They have a website containing information about the 2012 negotiations with the ILA. In it you will find information regarding the current contract, the longshore industry, and news and updates. USMX labor updates website: www.usmxlaborupdates.com  

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Page 1: email: vma@portofhamptonroads.com • web site: www ... · more truck drivers. A direct pipeline of well-paying truck driving jobs in the region supports expansion of intermodal activity

Volume 76, No. 8August 2012

Published by the Virginia Maritime Association, Norfolk, Virginiaemail: [email protected] • web site: www.VAMaritime.com

Seeking Answers on State’s Port Deal

Break Down in Negotiations for New ILA Contract

Since the May 23 announcement by Virginia’s Secretary of Transportation, Sean Connaughton, that over 45 days earlier his office had received an unsolicited proposal

from APM Terminals to operate the state-owned terminals for the next 48 years. The VMA has been gathering and providing information to our membership about this very important issue.

Early on, Eric Sisco, President of APM Terminals Americas, generously agreed to provide an overview of their proposal to VMA’s Board of Directors and address questions. APM has made presentations to other groups and submitted an addendum to their original proposal in an effort to address concerns raised about the potential for discriminatory pricing and/or service; suggesting the Virginia Port Authority (VPA) have some oversight.

Tony Kinn, Director of the Office of Transportation Public-Private Partnerships (OTP3), met with the VMA Board of Directors on June 26 to discuss the state’s process for considering proposals under the Public-Private Transportation Act (PPTA). The OTP3

office assured VMA they would conduct significant outreach in the performance of their due diligence and provide clarity to lingering questions about key dates, decisions to be made, and who had the authority to make those decisions. At his request, the Association followed up with a significant effort to put the OTP3 office in touch with stakeholders throughout the maritime community. To date, the VMA is not aware of any significant outreach to those stakeholders and the OTP3 has not clarified who has actual decision making authority. It remains VMA’s understanding that, while advice can be given by the VPA Board of Commissioners, legislators, and others, all the actual decision making authority lies in the hands of the Secretary of Transportation.

The VMA has heard from numerous steamship line customers objecting to APM’s proposal because it would give a competitive advantage to Maersk Line, though Mediterranean Shipping Company (MSC) and CMA CGM have recently changed their stances. The VMA has also heard from shippers, other business organizations, and the cities of Portsmouth and Norfolk,

continued on page 2

continued on page 3

On August 22 the negotiations for a new International Longshoremen’s Association contract covering dockworkers at East and Gulf Coast ports broke down.

The current contract expires September 30.  Harold Daggett, President of the International Longshoremen’s Association (ILA), broke off talks with the United States Maritime Alliance (USMX). 

Shippers, concerned at the slow pace of progress in the negotiations, had already begun making contingencies and diverting some of their cargo away from East and Gulf Coast ports.

The ILA is the largest union of maritime workers in North America, representing upwards of 65,000 longshoremen on the

Atlantic and Gulf Coasts, Great Lakes, major U.S. rivers, Puerto Rico and Eastern Canada.

The USMX represents employers of the East and Gulf Coast longshore industry. Membership consists of 24 container carrier members, including the 10 largest carriers worldwide, and every major marine terminal operator and port association on the East and Gulf Coasts. They have a website containing information about the 2012 negotiations with the ILA. In it you will find information regarding the current contract, the longshore industry, and news and updates.  USMX labor updates website: www.usmxlaborupdates.com  

Page 2: email: vma@portofhamptonroads.com • web site: www ... · more truck drivers. A direct pipeline of well-paying truck driving jobs in the region supports expansion of intermodal activity

2

VIRGINIA MARITIMEASSOCIATION

OFFICERSChairman of the BoardCapt J. William Cofer

Presidentthomas W. Godfrey, Jr.

ViCe PresidentsJoseph a. dorto

raymond a. newlonshirley G. roebuck

exeCutiVe ViCe President & seCretaryarthur W. moye, Jr.

treasurerJudy m. Barrett

assistant treasurermichael W. Coleman

STAFFViCe President

david C. White

aCCountinG manaGer/Controllersam davis

exeCutiVe assistantJanice s. Klasek

eVents CoordinatorJennifer n. Parham

shiPdesK ClerKlynne h. stonum

memBershiP/PuBliCationCoordinator & editor

susan n. Wisniewski

ANChOR MEMbERSbranscome, Inc.CSX Intermodal

Maersk Line LimitedMcAllister Towing of Virginia

TownebankVirginia International Terminals

Virginia Pilot AssociationVirginia Port Authority

maritime Bulletin is published12 times a year by

Virginia maritime association.subscriptions are available through

membership in the association.

recipient of Presidential “e” and“e star” awards for excellence in export service

recipient of asae Communicationexcellence & honorable

mention award

IN THIS ISSUE

1 Seeking Answers on State’s Port Deal

Break Down in Negotiations for New ILA Contract

2 Seeking Answers on State’s Port Deal Cont’d

3 Maritime News

4 Port Statistics

5 News Briefs

6 VMA Highlights

7 Membership News

opposing any deal or expressing conditions that must be met before any changes are made to the port operations. The results of a survey of VMA members revealed an overwhelming majority of respondents either opposed a change or believed more information was needed.

On August 13, alternative proposals were submitted. While the office of the Secretary of Transportation would not release information about those proposals, the press reported the bidders to be the Carlyle Group and RREEF. The Carlyle Group is a Washington, D.C., private equity firm and was among three groups who submitted bids to run the port in 2009, with the state rejecting those proposals. RREEF is a real-estate investment arm of Deutsche Bank, the German banking giant. Virginia International Terminals, the VPA’s current terminal operating company, was permitted to submit a proposal showing its volume and revenue projections for the port if it remains the terminal operator.  These proposals were presented to the VPA Board of Commissioners on August 22 and a legislative panel convened by Governor McDonnell on August 24.

Members of the General Assembly have reported to VMA that since the submission of APM’s proposal, the Secretary of Transportation has been promoting an agenda of change because cargo volumes at the terminals have not yet exceeded pre-recession levels. However, the Virginia Port Authority reports 2012 May, June and July figures were the best on record for those months.On August 8, with a mission to promote, protect and encourage international and domestic commerce through the ports of Virginia, the VMA Board of Directors passed a resolution laying out principles that should be scrupulously adhered to in the evaluation of proposals for privatizing the state-owned terminals under the PPTA, and stating the Association is opposed to any contract

for privatizing the state-owned terminals that does not adhere to those principles. Copies of the resolution are enclosed in this edition of the Maritime Bulletin.The shipping community is on the brink of a very dramatic change and is being left out of this process. The state-owned terminals belong to the citizens of Virginia. The employment of nearly 1 of every 10 workers in Virginia is somehow connected to those marine terminals. Virginia’s citizens, most significantly, Virginia’s maritime community, are the shareholders the state must answer to as proposals to relinquish control of our marine terminals are considered. The permanent effects of these decisions are too important to be made on a fast track behind closed doors and without objectively informing and listening to those that understand it best.

Information and updates about proposals to operate the Port of Virginia are available on the VMA website at www.VAMaritime.com.

Seeking Answers on State’s Port Dealcontinued from page 1

Page 3: email: vma@portofhamptonroads.com • web site: www ... · more truck drivers. A direct pipeline of well-paying truck driving jobs in the region supports expansion of intermodal activity

3

MARITIME NEWS

VMA Truck Driver Recruitment Program; Financial Support Comes to End

break Down in Negotiations for New ILA Contract continued from page 1

T he Virginia Tobacco Indemnification and Community Revitalization Commission awarded the Virginia Maritime Association (VMA)  two grants, $320,000 in

2006 and $185,735 in 2009 for the Intermodal Carrier Truck Driver Workforce Development Program, an initiative of VMA’s Inland Transportation Committee. It was developed as a Virginia solution, focused on Southside and Southwest Virginia, to the national truck driver shortage, recognizing ever more drivers will be needed to move the cargo flowing through our ports.

The Commission supported the project because of the potential for Southside and Southwest Virginia to benefit from the economic engine of the Port of Virginia. Capitalizing on the Port’s success requires a reliable transportation network; in this case, more truck drivers. A direct pipeline of well-paying truck driving jobs in the region supports expansion of intermodal activity and encourages new port distribution activity. The geographic and traffic patterns of the Route 58 corridor make it a naturally advantageous location for Port related development.

The efforts of the VMA, Southside Virginia Community College (SVCC) and over two dozen private companies to increase awareness of truck driving careers across the Southwest and Southside of Virginia has been successful. The initiative resulted in expansion of training to Emporia through the SVCC, and community colleges in areas like Wytheville, Amelia County, Lord Fairfax/Winchester and Virginia Western opened new programs. The program has reached over 1,000 potential drivers, graduated 104 new drivers, and facilitated the hiring of over 133 drivers. Many of these drivers already work for motor carriers moving cargo in and out of the marine terminals. Some will end up serving the port after they gain more driving experience.

In 2011, the VMA launched the Drive the Port website which currently has twelve on-line training modules for drivers

interested in becoming Owner Operators.  Since then, more than 230 drivers have been given access to the program at no cost to them, their employers, or their training programs.  Approximately 40 drivers have completed the entire course, many with plans to become Owner Operators.

As an addition to the final version of the on-line system, a section was added for diesel mechanics to post their information and search for companies hiring in their field.  This expands the use of the site, not only for workers, but for companies in Southwest/Southside Virginia who need to fill positions. As the routes through these regions and the 58 corridor grow, connecting these workers to expanding companies is valuable.

At the end of June, the grant funds came to an end but VMA’s program will continue. The Association will continue to partner with SVCC, maintain and update the Drive the Port online recruitment and training program, and provide related information to workforce development agencies and community college programs.

In Virginia the ILA provides the waterfront labor at APM Terminals, Lamberts Point Docks, Newport News Marine Terminals, Norfolk International Terminals, and other facilities and union members are represented by the Hampton Roads District Council. Virginia employers of ILA labor are represented by the Hampton Roads Shipping Association.

Page 4: email: vma@portofhamptonroads.com • web site: www ... · more truck drivers. A direct pipeline of well-paying truck driving jobs in the region supports expansion of intermodal activity

PORT STATISTICS

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Page 5: email: vma@portofhamptonroads.com • web site: www ... · more truck drivers. A direct pipeline of well-paying truck driving jobs in the region supports expansion of intermodal activity

5

NE WS BRIEFS & ANNOUNCEMENTS

Chassis Pool Changes

T wo years ago Virginia Intermodal Management (VIM), which operates the Hampton Roads Chassis Pool (HRCP), began re-examining its chassis pool operation when the

ocean carriers announced their intent to exit from the chassis business.

VIM has announced HRCP will now offer two operating models that will allow steamship lines to opt out of the chassis business. The main objective during this transition is to ensure that there isn’t any disruption of service and that the operational efficiencies that have been gained by the marine terminals and motor carriers remain intact. Option 1: Ship lines that are not ready to transition will be allowed to operate under the current business model as contributors to the pool and accepting all billing for usage of the chassis. Option 2: VIM becomes the sole provider for assets needed for pool operations that are no longer contributed by the ship lines. This is achieved either through direct interchange from the chassis equipment supplier (CES) to VIM, direct lease from CES to VIM or lease of ship line owned assets to VIM.

Motor carriers can begin the process of signing-up to become users of HRCP chassis by going to: http://www.hrcp2.org/Home.aspx. Motor Carriers are encouraged to complete the registration prior to October.

HRCP II collaborated with IAS, developer of ChassisManager software, to provide a safe, seamless and smooth transition. The software will manage chassis rental functions, establishes and enforces chassis user acceptance criteria and business rules.  It also integrates with industry-specific insurance compliance clearinghouse.

Beginning September 1, Maersk Line at the Port of Virginia will no longer supply chassis. Chassis that are managed by Direct Chassis Link (DCLI) will be available for use on a daily rental basis at APM Terminals Portsmouth (APM), Norfolk International (NIT), and the CSX and Norfolk Southern rail ramps. Drivers using DCLI services must complete an interchange agreement ahead of the September 1 implementation date. Details on the interchange agreement and information about the implementation can be found at www.chassislink.com.

Chassis users, HRCP or DCLI, will be able to keep the chassis for multiple moves and for any container line, which reduces terminal congestion, pollution and facilitates the re-use of ocean carrier equipment. Empty movement to return chassis to terminals will be reduced, saving time, money and enabling green transportation.

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VMA HIGHLIGHTS

6

Committee Update

STRATEGIC PLANNING COMMITTEE (July 17 & 31): The committee continued its work with the adoption of a Vision Statement, a review of VMA’s previous Strategic Planning initiatives, the development of Guiding Principles to be followed by the Association, and began a discussion of VMA’s Strategic Goals through 2017. Recommendations from the Strategic Planning Committee will not be acted upon unless and until they are approved by the Board of Directors.

MARITIME bRIEFINGS COMMITTEE (July 19): The committee reviewed the Breakfast Briefing held Tuesday, June 12, 2012, with Joe Dorto of Virginia International Terminals, and Bill Franks of The CrossGlobe Group speaking on the topic “Bringing the Breakbulk”. Items discussed were attendance numbers, financials, room layout, quality of catering, and

suggestions for future briefings. The committee laid out a tentative schedule for holding three briefings a year.

COAL COMMITTEE (July 30): The committee and invited guests from the Hampton Roads Coal Association were advised the VMA has established a 55-Foot Ad-hoc Committee to explore channel deepening in support the coal export business. Mr. Hal Quinn, President & CEO of the National Mining Association, offered a presentation about “Coal Regulatory and Environmental Trends.” Questions and discussion followed about the effects of challenges to the coal industry on the exports through the Port.

The Association In Action

Throughout July, the VMA sought information related to the unsolicited proposal submitted by APM Terminals to operate the Port of Virginia, the process the state will follow

in considering such proposals, and to keep the membership informed on the matter. This included soliciting input from the VMA committees, conducting a survey of the VMA membership, issuing relevant bulletins and regularly updating the VMA website with any pertinent information. Comments were submitted at the July 24 meeting of the Virginia Port Authority Board of Commissioners to advise them of the actions of the Association and the results of the VMA membership survey.

One of the vital roles the VMA plays to promote and protect the interests of our members is to regularly educate and update legislators and policy makers on the importance and needs of Virginia’s maritime industry. Throughout July, the VMA did so in discussions with several members of the General Assembly.

Concerning port security and preparedness matters, the VMA has a seat on the Area Maritime Security Committee (AMSC) which is sponsored by U.S. Coast Guard Sector Hampton Roads and chaired by the Captain of the Port. The Association participates in some of the subcommittees that provide advice to the AMSC to ensure and maintain a safe, secure and

commercially successful port. The Marine Transportation System (MTS) Planning Subcommittee met July 12 to discuss issues concerning effective and efficient recovery of the MTS following a terrorist, weather, or other event affecting the Port.

The Association also participated in the July 13 meeting of the Freight Transportation Advisory Committee (FTAC). The FTAC is an advisory committee, providing input on the transportation requirements for freight movement, to the Hampton Roads Transportation Planning Organization which defines the transportation priorities for the region. Key agenda items included Public Outreach Initiatives, Planning for the 2012 Freight Summit, Discussion of MAP-21 (Federal Transportation Bill), and an update on the Hampton Roads Regional Freight Study.

On July 19, Virginia International Terminals held a Motor Carrier Summit in which the VMA was pleased to participate. The Federal Motor Carrier Safety Administration spoke to changes made to CSA Safety Measurement System. The other key topic was updates from Direct Chassis Link and the Hampton Roads Chassis Pool about recent developments in their businesses models for providing chassis.

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MEMBERSHIP NE WS

7

ADVERTISE IN ThE PORT ANNUAL

Promote your business and show your support for the Port and the VMA by placing an advertisement in the Port of Virginia Annual 2013.

For information on rates and specifications, contact the VMA at 757-622-2639.

NEW MEMbERS

Atlantic Coast District - ILALabor Organizations

400 W. Olney Road Suite CNorfolk (23507)

Mr. Larry A. Bachtell757-679-3481 Fax: 757-480-1606

[email protected]

Atlantic Lift Systems, Inc.Marine Equipment Sales/Rental

3501 Progress Road Norfolk (23502)

Mr. Allan I. Haynsworth757-466-9280 Fax: 757-461-8337

[email protected]

GE CapitalBanks/Investment & Mortgage Loans

100 East Shore Drive Glen Allen (23059)Mr. Kevin D. White

804-514-5875 Fax: 800-886-1240 [email protected]

RPM Warehouse LLCWarehouse

201 Dexter Street West Chesapeake (23324)

Mr. Carlos M. Quinones757-545-5566 Fax: 757-545-9465 [email protected]

TST Tactical Defense SolutionsConsultants

3465 Chandler Creek Road Suite 102Virginia Beach (23453)

Mr. Shawn J. Kuhle757-416-7610 Fax: 757-416-7613

[email protected]

VmAmemBer Benefits

Endurance Network ServicesDiscount pricing on

computer network services.

Contact Blake White 216-1374

OptimahealthCompetitive rates and Value-Added Benefits for health insurance.

Contact Jim Blassingham 533-4655

E-DentalGroup level dental Benefits

offered on an individual basis.

Contact ross Winfield 340-9777 ext. 355

Retirement Needsretirement plan evaluations

for business owners and trustees.

Contact Jim Blassingham 533-4655

Discounted Room Rates for Members and Guests

Visit VAmaritime.com for discount information.

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PRESORTED STANDARDU.S. POSTAGE PAID

NORFOLK, VAPERMIT NO. 1930

236 E. Plume StreetNorfolk, Virginia 23510

P.O. box 3487Norfolk Virginia

(757) 622-2639; FAX 622-6302www.VAMaritime.com

[email protected]

Club Contacts

September Club Events CalendarMon Tues Wed Thur Fri Sat/Sun

1/2

3 4 5 6 7 8/9

10 11 12 13 14 15/16

17 18 19 20 21 22/23

24 25 26 27 28 29/30

Customs Brokers & int’l freight forwarders Assn.CONTACT: Val Sutton • 853-1940

hampton Roads Coal AssociationCONTACT: Joe DeMatteo • 928-1520

hampton roads Global Commerce CouncilCONTACT: Peter Trocchiano • 201-9796

www.hrgcc.org

hampton Roads Traffic ClubCONTACT: Michael Hirsch • 485-4799

www.HamptonRoadsTrafficClub.org

ODU Maritime Institute Speaker SeriesCONTACT: Sara Russell • 683-3964

Organization for Women in Int’l Trade (OWIT)CONTACT: Sara Russell • 683-3964

Propeller Club - Port of NorfolkCONTACT: Taylor Miller • 440-7214www.PropellerClubNorfolk.com

Tidewater Motor Truck AssociationCONTACT: Frank Borum • 494-0276

Ed O’Callaghan • 450-8484 Troy Tibbetts • 544-0693

Virginia Ship Repair AssociationCONTACT: Sylvia Bell • 233-7034www.VirginiaShipRepair.org

Global Commerce Council7:30 Town Point Club

Propeller Club4:00 Oyster Roast, NIT

Crumbly Recreational Park

Traffic Club6:00 Holiday Inn,

Greenwich

Ship Repair Assn. with ASNE

11:30 Virginia Beach Convention Center,Virginia Beach, VA

Motor Truck Assn.6:00 Elizabeth Manor CC

Freight Forwarders12:00 Norfolk Waterside

Marriott

Virginia Maritime Association

MIC Golf ClassicCedar Point CC, Suffolk

11:00 Registration12:30 Shotgun Start