With Containers, Automobiles & Other Cargoes on the Rise, the Port of Philadelphia’s 2010 Cargo Statistics Show Big Gains Over Previous Year
A recovering national economy, in conjunction with a variety of new business relationships established at the Port of Philadelphia in 2010, has resulted in a sizable gain in overall tonnage last year compared to 2009 levels. With 3,644,919 metric tons of cargo handled in 2010 compared to the 3,107,067 tons of cargo handled in 2009, overall tonnage at the Port of Philadelphia was up 17% last year, reported officials of the Philadelphia Regional Port Authority (PRPA) in a February 2010 announcement.
“Last year, we didn’t point to a challenging national economy as an excuse for a reduction in port business,” said PRPA Executive Director James T. McDermott, Jr. “We went out and aggressively sought new business, even if many believed it unlikely we could land it. What actually happened was the opposite: Hyundai and Kia made Philadelphia its preferred US East Coast port of entry, Sea Star Line established a major Puerto Rican service here, and M-real, a past port customer, returned to the Port of Philadelphia with its high-quality paper cargoes, to name three major new pieces of business that we attracted in 2010. On top of that, many of our previous cargoes and services moved in an upward trend, too. Now that the economy is showing signs of recovery, we’re already a step ahead.”
Mr. McDermott credits aggressive marketing by PRPA and its terminal operators, along with continued state investment in the Port’s terminals and facilities, as prime components in the turnaround that’s taken place, a turnaround that is occurring faster at the Port of Philadelphia than at other U.S. ports in the wake of the weaker economy of the immediate past years.
“Recent developments have been gratifying,” said Mr. McDermott. “Another example is our MSC European service, which commenced in 2009. Though busy at its outset, that service matured in 2010, significantly increasing activity at the Packer Avenue Marine Terminal.”
Both containerized and non-containerized cargoes all showed healthy gains in 2010. With 264,059 TEU’s of containerized cargo handled in 2010 compared to the 222,900 TEU’s handled in 2009, containers were up a dramatic 18%. Counted as tonnage instead of TEU’s, 1,860,097 metric tons of containers were moved in 2010 compared to the 1,682,356 tons of containers handled in 2009, an 11% gain.
Non-containerized cargoes also showed big increases. With 1,108,329 metric tons of non-containerized cargoes handled in 2010 compared to the 840,876 tons of handled the year before, these cargoes were up 32%. Particular highlights among non-containerized cargoes in 2010 include the following:
Automobiles: Primarily as a result of massive numbers of Hyundai and Kia automobiles that have been arriving at PRPA’s Packer Avenue Marine Terminal since spring of 2010, automobile business here went from being virtually non-existent in 2009 to about 69,000 units being moved in 2010. That business has continued strongly into 2011, with the regular arrival of Glovis automobile-carrying vessels at the Packer Avenue Marine Terminal, with processing of the vehicles taking place at the adjacent Pier 98 Annex Automobile Processing Facility. Computed as tonnage, 77,350 tons of automobiles moved through the Port in 2010, compared to the 496 tons of the same cargo handled the previous year.
Paper: The noted Scandinavian paper manufacturer M-real returned to the Port of Philadelphia after a several year hiatus in 2010, bringing along with it the company’s preferred ocean carrier, Wagenborg Shipping, resulting in a healthy 53% gain in forest products cargoes at the Port in 2010. 389,109 tons of forest products were handled last year here, compared to the 254,522 tons handled in 2009. As well as rolls of high-quality paper, forest products cargoes at the Port include pulp, lumber, and other wood products.
PRPA’s dedicated Forest Products Distribution Center at Delaware and Snyder Avenues in South Philadelphia is the principal handler of the Port’s forest products cargoes. A brand-new, state-of-the-art forest products warehouse opened at the Pier 74 portion of the facility last year, a major reason M-real’s paper cargoes returned to Philadelphia.
With 328,904 metric tons of fruit being handled at the Port of Philadelphia in 2010 compared to the 321,702 tons handled the previous year, fruit was up 2%. Fruit from Chile and bananas from Columbia are two of the major fruit cargoes regularly handled at the Port.
Liquid bulk cargoes were up 16%, with 676,493 metric tons of liquid bulk cargoes being handled in 2010 compared 583,835 tons handled in 2009.
While steel cargoes continue to be modest compared to 1980s and 1990s levels, steel experienced a 53% gain last year, with 170,215 metric tons handled. Cocoa beans (97,492 tons handled) and project cargo (39,156 tons handled) were roughly in line with 2009 figures.
“I believe that the Port of Philadelphia made the correct strategic move in becoming more aggressive, not less, in the wake of the national economic downturn of recent years,” reiterated Mr. McDermott. “Instead of waiting for things to turn around on the national level, we got out there and went to work. Principally, we got our 45-foot channel deepening project finally moving forward, and we made major strides in turning our Southport marine terminal project from a dream to a reality. Both of those initiatives signaled to the world that we seriously mean business, and directly or indirectly helped our cargo increases last year.
“The Commonwealth of Pennsylvania’s support of our activities and our strong partnership with our terminal operators were other key components,” Mr. McDermott continued. “We still have a long way to go, but we’re gratified to see so many strong examples that we’re moving in the right direction. Let me emphasize this: Our latest cargo figures demonstrate again what an important contribution a vibrant seaport makes to the state and local economy. Comparing 2009 to 2010, activity at the Port of Philadelphia generated a 29% increase in direct and indirect jobs, from 4,188 to 4,845, as well as bringing about a total increase in federal, state, and local revenue to $90.3 million from 63.9 million. Total business activity for 2010 amounted to $659 million, up from 2009’s $453 million. Clearly, it’s important for the Port of Philadelphia to be successful, because the stakes are so high.”
Sea Star Line Reaches 10,000-Load Milestone at Port of Philadelphia
This past February, after only ten months of operation at PRPA’s Tioga Marine Terminal, Sea Star Line, LLC marked a significant milestone: the movement of 10,000 loads through the Port of Philadelphia, with no visible signs of slowing in the wake of that achievement. Sea Star Line has operated a weekly service between Philadelphia and Puerto Rico since spring of 2010.
“We have exceeded our expectations with this new trade lane,” said Steve Hastings, President of Sea Star Line, commenting on the milestone. He further noted that Sea Star has recently invested more than $7 million on maintenance and improvements for the El Faro, the primary vessel operating in the Philadelphia/Puerto Rico service. This investment will permit the El Faro to continue to participate in the service for years to come.
With the commencement of Sea Star Line’s service last April, roll-on/roll-off cargo activity instantly became a new, regular sight at Tioga Marine Terminal, as all manner of cargoes began transiting between Philadelphia and Puerto Rico. Soon, a second vessel joined the El Faro, further boosting efficiency for Sea Star’s customers. Cargoes regularly moved by Sea Star Line vessels include automobiles, heavy equipment, domestic trailers and tankers, and standard containers. Sea Star Line vessels can also accommodate the newest 53-foot trailers, making shipping more efficient and affordable for its customers.
“We’ve worked hard to create a strong competitive advantage for both ourselves and the Port of Philadelphia,” said Mr. Hastings. “Between our roll-on/roll-off capabilities, and our ability to offer an unmatched speed to market, we see only continued growth and success. In fact, in light of recent business, it’s not a stretch to say that Philadelphia could quickly establish itself as the northeast hub for all major U.S./Puerto Rico trade.”
Officials of the Philadelphia Regional Port Authority echoed Mr. Hastings’s sentiments.
“In just a short time, Sea Star Line has made a tremendous impact at the Port of Philadelphia, and we applaud the company’s success,” said PRPA Director of Marketing Sean Mahoney. “Not only do its contributions to the Port significantly fuel our local economy, but it also further establishes Philadelphia as a major player in shipping and transportation in the U.S. northeast. We’d like nothing more than to see that trend continue.”
In addition to its current home at Tioga Marine Terminal, Sea Star Line has a further connection with our region, one dating back many years: the two vessels operating in its Philadelphia/Puerto Rico service, the El Faro and the El Yunque, were both built in Chester, Pennsylvania, at the old Sun Shipyard.
Headquartered in Jacksonville, Florida, Sea Star Line offers integrated transportation services to and from the United States, Puerto Rico, the U.S. Virgin Islands, and Tortola. With simultaneous roll-on/roll-off and lift-on/lift-off capabilities, Sea Star vessels have an industry-wide reputation for versatility and efficiency. You can learn more about the carrier by visiting www.SeaStarLine.com.
Scott Named Engineering Head
The Philadelphia Regional Port Authority congratulates Michael S. Scott, P.E., who was promoted to PRPA’s Director of Engineering on January 16, 2011.
Mr. Scott joined the PRPA Engineering Department in 2002, where he quickly became integrally involved with all major construction projects at the Port, as well as other critical engineering issues. Mr. Scott has 24 years of experience in the engineering field, including 17 years of experience in the maritime industry.
Mr. Scott first came to PRPA’s attention while working at Philadelphia-based Urban Engineers, Inc., which often successfully bid on PRPA engineering and design projects. Impressed with its interactions with Mr. Scott during those projects, the agency soon offered him a position at PRPA.
Educated at Temple University, Mr. Scott holds Professional Engineers Licenses in Pennsylvania and New Jersey. He resides in Garnet Valley, Pennsylvania with his wife Emily and his three children, Gregory, Elise, and Ava.
“Mike Scott is a great engineer, proving his chops on many, many occasions,” said PRPA Executive Director James T. McDermott, Jr. “His skills, temperament, and problem-solving ability make him a natural in our often complicated and challenging industry. I’m glad he’s at the helm of our Engineering Department.”
Mr. Scott replaces Charles J. Lawrence, P.E., PRPA’s previous Director of Engineering, who recently retired after 25 years of service to PRPA.
Korean Ambassador Visits Port’s Working Waterfront
In a visit coordinated by the U.S. Chamber of Commerce, PRPA welcomed Han Duk-soo, Ambassador of Korea to the United States, to PRPA’s Packer Avenue Marine Terminal on Thursday, February 17. During his remarks at the terminal, the Ambassador extolled the virtues of the strong business partnership between Korea and the Port of Philadelphia, and discussed the importance of the proposed U.S./Korea Free Trade Agreement. Among many port and government officials who welcomed Ambassador Han Duk-soo to Philadelphia was PRPA Executive Director James T. McDermott, Jr., who drew attention to thousands of just-arrived Hyundai and Kia automobiles at the Port, destined for shipment to dealerships throughout the U.S. For more information about the U.S./Korea Free Trade Agreement, visit www.uskoreafta.org.
Port Welcomes Senator Stack
PRPA welcomed Pennsylvania Senator Michael Stack (D-Philadelphia) to the Tioga Marine Terminal on Friday, February 11. Senator Stack wanted to discuss the value of port activity to Pennsylvania’s residents via the Pennsylvania Senate’s cable access channel, and requested using Tioga Terminal as a backdrop. The Senator’s idea proved to be a great one, as a Sea Star Line vessel was busy taking on and discharging cargo at the facility that day, providing a first-hand example of the kind of economic activity the Senator was discussing with his interviewer. The final result more than made up for Senator Stack, the Senate film crew, and various PRPA staff members having to brave a very cold day out on the Delaware River!
PRPA Spreads the Word at Breakbulk Conference
Director of Marketing Sean Mahoney and Marketing Representative Franklin Camp represented PRPA at the recent Journal of Commerce Breakbulk Americas Conference, held October 12-14, 2010 in Houston, Texas. “The Path Forward” was the theme of the annual event, with the Conference drawing a record 3,800 attendees and nearly 220 exhibits, both records for the show.
“This show is the largest gathering for the breakbulk shipping industry in North America,” said Mr. Mahoney. “Being that breakbulk cargoes account for nearly 30% of our overall tonnage, it makes sense for us to exhibit here and meet with current and potential customers who are looking for port facilities. It’s a Conference that PRPA has been a part of since the first show in 1989.”
Both Mr. Mahoney and Mr. Camp reported that, throughout the show, there was a sense of optimism towards the future outlook for breakbulk volumes, which translated into increased attendance numbers. “Traffic at our booth was noticeably heavier than at recent Breakbulk Conferences,” added Mr. Camp, “We were extremely pleased with the volume of inquiries we received concerning PRPA’s facilities.”
Adding to their own feeling of optimism was the fact that the Port of Philadelphia had much in the way of good news to share at the event: the beginning of the Channel Deepening Project, movement on the Port’s Southport initiative, the new automotive business with Hyundai and Kia, improving forest products volumes thanks to the opening of the new forest products warehouse at Pier 74 Annex, Sea Star Line’s Puerto Rican service at Tioga Marine Terminal, and improving overall cargo tonnage totals.
Hope for SS United States
Thanks to a $5.8 million contribution to the SS United States Conservancy by philanthropist and media entrepreneur H.F. “Gerry” Lenfest last August (which followed his $300,000 contribution in 2009), the organization was able to purchase the SS United States from Norwegian Cruise Line, owner of the vessel since 2003. The purchase prevented the retired, long-admired cruise ship from being scrapped, and has given the Conservancy time to identify investors to refurbish the ship for a variety of possible uses.
For the past several years, the still-majestic SS United States, which still holds the speed record for a trans-Atlantic crossing by a cruise ship, has been docked at PRPA’s Pier 82, where she regularly draws the attention of passersby. To learn more the SS United States Conservancy, or to make a contribution to help fund the Conservancy’s day-to-day efforts to save the vessel, please visit www.ssunitedstatesconservancy.org.
Agreement Advances Project to Create New Marine Terminal
PRPA’s plans for a new marine terminal along the Delaware River waterfront recently received a big boost.
A Concession Agreement was signed on Monday, November 1, 2010 between PRPA and the successful bidding team of Delaware River Stevedores Inc. and Hyundai Merchant Marine Corporation for the construction of Southport, the long-planned new marine terminal in South Philadelphia. The signing was the culmination of an almost two-year process that solicited and evaluated companies interested in being a partner with PRPA in the construction and operation of Southport. The Concession Agreement calls for the construction of a two-berth, 120-acre facility to be completed by 2020.
Southport Marine Terminal represents PRPA’s best opportunity to develop a modern container terminal south of the Packer Avenue Marine Terminal. Studies show that within 10 years of becoming operational, Southport is projected to create thousands of new jobs and inject more than $350 million in new business revenue into the Philadelphia regional economy each year.
Future issues of PortWatch will keep readers updated on the Southport project, as remaining issues in the process are addressed.
PRPA Welcomes Charles Kopp as the Port Agency’s New Chairman
In a March 1 announcement, Pennsylvania Governor Tom Corbett named Charles G. Kopp, Esq., an attorney with the Philadelphia-based law firm of Cozen O’Connor, as the Philadelphia Regional Port Authority’s new Chairman.
“Charlie Kopp has the institutional knowledge and expertise needed to guide PRPA’s important work,” Governor Corbett said in his announcement. “He has earned a well-deserved reputation as a consensus builder who delivers strong results.”
Mr. Kopp responded to his appointment with enthusiasm.
“I am honored by Governor Corbett’s appointment and share his goal to make the Philadelphia port the best in the nation as an integral part of his overall commitment to spur economic activity and create jobs,” Mr. Kopp said. “The future potential of the Philadelphia port is spectacular and I look forward to working closely with Governor Corbett, public officials in Philadelphia, public officials around Pennsylvania, and other interested parties to reach Governor Corbett’s goal of making the Philadelphia port the finest in the nation.”
An experienced tax lawyer, Mr. Kopp is familiar with all aspects of federal, state, and local taxation. He has also developed in-depth experience in corporate acquisitions and mergers. Mr. Kopp previously served on the Board of Directors of the Delaware River Port Authority, having been appointed to that entity by former Pennsylvania Governor Dick Thornburgh in 1986.
In related news, Governor Corbett also appointed Pennsylvania attorney John Skoutelas to the PRPA Board of Directors on February 10. Mr. Skoutelas is an attorney at Waste Management, Inc., a leading provider of integrated environmental solutions for businesses. The firm works with customers and communities to manage and reduce waste from collection to disposal while recovering valuable resources, and creating clean, renewable energy.
James T. McDermott, Jr., Executive Director of the Philadelphia Regional Port Authority, lauded both of Governor Corbett’s appointments.
“Charles Kopp is a sharp, intuitive guy whose presence will deliver strong dividends to this agency,” said Mr. McDermott. “His leadership qualities, and immediate grasp of the issues facing this port, were already plainly evident at the first meeting he chaired for us on March 8. Everyone at PRPA is looking forward to working with him.”
Regarding Mr. Scoutelas, Mr. McDermott said, “John Skoutelas will also be a big asset to us, especially in areas relating to environmental issues and challenges, increasing subjects of concern for all U.S. ports. His expertise in the environmental realm, along with his comprehensive legal and business experience, will be of great assistance to our board.”
Traffic Club Honors PRPA
The Philadelphia Regional Port Authority was named Company of the Year by The Traffic Club of Philadelphia at its 103rd Annual Dinner, held at the Hyatt Hotel on the Delaware River waterfront on Tuesday, January 25. The event was presided over by PRPA Director of Strategic Planning Nicholas Walsh, the Traffic Club’s Annual Dinner Chair and incoming President.
Upon presentation of the award that evening to PRPA Executive Director James T. McDermott, Jr., PRPA was lauded for a variety of initiatives and activities, especially its successful advancement of the Delaware River Channel-Deepening Project and the many new cargoes that began moving through the Port of Philadelphia in 2010.
“Thanks to our strong partnership with many of the great organizations here tonight, the Port of Philadelphia is not only surviving this tough economy, but in many ways performing stronger than ever,” said Mr. McDermott in remarks following the award presentation. “We must continue to work together as we face the challenges of the future, including the completion of our channel deepening project and the continued building of the family-sustaining cargoes so important to our region.”
Founded in 1908, The Traffic Club of Philadelphia is one of the nation’s oldest transportation clubs. This professional association promotes transportation and logistics in Pennsylvania, New Jersey, and Delaware through a broad base of members, sponsors, and volunteer officers. Comprised of representatives from manufacturing, railroads, motor carriers, ports, steamship lines, warehousing, airlines, governmental agencies, and other related entities, the Club’s membership reflects the richness and diversity of the transportation and logistics fields.
PRPA sincerely thanks The Traffic Club of Philadelphia for the great honor it bestowed on our agency on January 25. For more information about The Traffic Club of Philadelphia, visit the organization’s web site at www.tcphila.org.
PRPA Marketing Department Cites Virtues of the Port of Philadelphia During Visit to Pittsburgh
PRPA Senior Marketing Representative, Dominic O’Brien, along with Marketing Department colleague Frank Camp, recently traveled to western Pennsylvania to attend the Traffic Club of Pittsburgh’s 109th Annual Dinner on Thursday, March 17, and to meet with Pennsylvania exporters in the region. Close to 1,000 people attend the Traffic Club of Pittsburgh’s Annual Dinner, the premier gathering of traffic and transportation professionals in the US Mid-West.
While in western Pennsylvania, Mr. O’Brien and Mr. Camp took the opportunity to visit with shippers based in the area, to promote PRPA’s terminals, carrier services, and port programs. Mr. O’Brien and Mr. Camp were joined by Tom Mutz, Global Business Development Director for Penn Warehousing and Distribution (the operators of PRPA’s Piers 78/80 and 38/40), and by Mediterranean Shipping Company’s District Sales Manager for Western Pennsylvania and Western New York, Jeff Buirge, on a number of sales calls. Mediterranean Shipping Company currently operates two separate weekly container services at PRPA’s Packer Avenue Marine Terminal – one to the west coast South America and the other to North Europe.
“It really helps to meet with the major PA shippers in the Pittsburgh area,” commented Mr. O’Brien. “Meeting with current and potential customers face to face helps us to get the word out about steamship options at the Port of Philadelphia, and programs like our Pennsylvania Export Initiative.”
Mr. Mutz added, “We can’t thank MSC’s Jeff Buirge enough for his effort and hospitality during our visit to western Pennsylvania. He has once again proven to be a great ally of the Port of Philadelphia as we continue to promote MSC’s ongoing container services in Philadelphia and the supplemental services that Penn Warehousing and Distribution provides to shippers utilizing vessels for their import or export shipments.”
President’s Proposed 2012 Budget a Mixed Bag for America’s Seaports
The Philadelphia Regional Port Authority, an active member of the American Association of Port Authorities (AAPA) is pleased to present AAPA’s analysis of the President’s proposed Fiscal Year 2012 Budget, as it relates to seaports and the U.S. maritime industry.
With the recent release of President Obama's fiscal 2012 budget, the American Association of Port Authorities (AAPA), which represents seaports throughout the Western Hemisphere, is expressing both optimism and disappointment over various aspects of the budget pertaining to seaports and the efficient, safe and cost-effective movement of freight.
Kurt Nagle, AAPA's president and CEO, said that a potential bright spot for seaports in the Administration's proposed fiscal 2012 budget is the plan's heightened commitment to infrastructure investment. The budget includes a robust, six-year, $556 billion surface transportation authorization proposal, as well as a $50 billion up-front, first-year outlay which provides $2 billion for a National Infrastructure Investments program, similar to TIGER.
Last year, TIGER program grants funded $95 million in seaport-related infrastructure projects, including improvements to roads, rails, bridges, tunnels and navigable waterways that connect with ports.
Among the elements proposed for the Department of Transportation budget would be a National Infrastructure Bank (I-Bank) that would leverage federal dollars and focus on investments in projects of national and regional significance. The I-Bank would provide grants, loans, or a blend of both to an expanded list of eligible multi-modal projects, including highway, transit, rail, aviation, seaport and maritime initiatives. An example in the budget's supporting materials is that the I-Bank could support improvements in road and rail access to ports.
"AAPA applauds the Administration's desire to coordinate with the DOT budget to prioritize transportation infrastructure investments,” said Mr. Nagle. “However, we're concerned that the expanded variety of modes in the I-Bank compared to TIGER could cause funding for seaport-related infrastructure to be overshadowed by high-profile initiatives such as transit and intercity rail," said Mr. Nagle. "There needs to be a heightened federal focus on freight transportation," he added.
"While we're optimistic that certain seaport-related infrastructure could be funded through the I-Bank, the Administration's proposed budget cuts for the U.S. Army Corps of Engineers' Civil Works program misses the mark by failing to adequately fund the waterside infrastructure that is critically needed to restore the economic security of the nation, increase exports and create the jobs necessary for full economic recovery," continued Mr. Nagle. "Although we're mindful of the need to make necessary sacrifices to reduce the deficit, we believe the priority for programs and projects that enhance America's ability to move cargo and compete in world markets should be raised rather than lowered."
If approved, funding for the Corps' Civil Works program in fiscal 2012 would drop by more than a quarter-billion dollars to $4.631 billion. That includes a $6 million reduction in the draw from the Harbor Maintenance Trust Fund (HMTF) to $758 million. These cuts are in addition to the Administration's proposal to expand the authorized uses of the HMTF so that its receipts are also available to finance the federal share of other commercial navigation programs, such as the U.S. Coast Guard.
"Because development and maintenance of our federal navigation channels are critical for safe and secure access to America's seaports, AAPA is greatly disappointed with this portion of the Obama Administration's proposal," said Mr. Nagle. "It would cut more than 5 percent from last year's Civil Works program budget request, which was already 10 percent less than what was requested in fiscal 2009."
The Administration's proposed Civil Works program cuts run counter to its goals to create new U.S. jobs and promote exports, Mr. Nagle said. In addition, the reduction in the draw from the HMTF for maintenance dredging and the proposal to spend a portion of those funds for programs unrelated to maintenance dredging further reduces navigability into and out of America's ports.
"The annual Harbor Maintenance Tax revenues that are collected specifically for maintenance dredging must be fully utilized, and used as intended by law for this purpose only," said Mr. Nagle, noting that, currently, importers and domestic shippers pay approximately double the annual amount drawn from the HMTF for navigation maintenance.
In the environmental arena, funding for the Diesel Emissions Reduction Act, which was just reauthorized for five years and is a successful program that has provided significant public health benefits, is zeroed out in the Administration's budget proposal. On another front, the amount recommended for the Port Security Grant Program is the same $300 million level as last year. AAPA has consistently argued for the full $400 million in appropriations as authorized in the SAFE Port Act of 2006.
"Our nation's economic health and security depend largely on how well we can ensure efficient connections and deep-draft shipping access to our seaports in order to support exports, the more than 13 million jobs related to trade moving through our ports, and help America's economy prosper," Mr. Nagle said. "Over a quarter of U.S. GDP is accounted for by international trade, and as the budget process advances, we're hopeful that the Administration and Congress recognize the tremendous contributions that seaports make to the economy and jobs, and prioritize those programs accordingly."
Commenting on AAPA’s budget analysis, Philadelphia Regional Port Authority Director of Governmental & Public Affairs William B. McLaughlin said, “Like AAPA, the Port of Philadelphia is concerned about several key maritime issues as they relate to the President’s proposed budget. In particular, we are working with our regional bi-partisan Congressional delegation to assure that there is proper funding to continue the Delaware River Channel-Deepening Project.”
Founded in 1912, AAPA today represents 160 of the leading seaport authorities in the United States, Canada, Latin America and the Caribbean and more than 300 sustaining and associate members, firms, and individuals with an interest in seaports. As a critical link for access to the global marketplace, each year Western Hemisphere seaports generate trillions of dollars of economic activity, support the employment of millions of people and, in 2008, imported and exported more than 7.8 billion tons of cargo, valued at $8.6 trillion, including food, clothing, medicine, fuel and building materials, as well as consumer electronics and toys. The volume of cargo shipped by water is expected to dramatically increase by 2020 and the number of passengers traveling through our seaports will continue to grow. To meet these demands, the AAPA and its members are committed to keeping seaports navigable, secure and sustainable. To learn more about AAPA, visit the organization’s web site at www.aapa-ports.org.
Delaware River Channel-Deepening Project Sees Successes and Challenges
After years of concerted effort by the Delaware River regional maritime community, the Delaware River channel deepening project finally commenced in early 2010, bringing one step closer to reality the deepening of the Delaware River’s 104-mile main shipping channel from 40’ to 45’. Already, a significant portion of the project is complete: Reach C, an 11-mile stretch of the channel bordering the state of Delaware has now been deepened to 45’.
This major accomplishment largely occurred because legal decisions by the Federal Judiciary continue to be decided in favor of the deepening project. Shortly, the Third Circuit Court of Appeals will rule in a case brought by the state of New Jersey and some others to stop the project. If previous court rulings can be taken as a guide, it is expected that this case, too, will be decided in favor of the project.
However, challenges still remain, especially in the area of federal funding. PRPA is currently working closely with the Pennsylvania and Delaware congressional delegations, including Pennsylvania Senators Robert Casey and Patrick Toomey, to assure that needed funding to continue the project will be made available. PRPA has been joined in this effort by such organizations as the Maritime Exchange for the Delaware River and Bay, the Pilots Association for the Bay & River Delaware, the International Longshoremen’s Association, and the Brotherhood of Teamsters, among many other maritime organizations.
“Reach C of the channel deepening project was completed without incident,” said PRPA Executive Director James T. McDermott, Jr. “The negative environmental impact predicted by our critics did not occur, and we’re already seeing positive economic impacts, in the form of new business commitments from port users, even though the project is still far from completion. We’ve told the truth about this project from day one, and we must see it forward through completion.”
Further updates on this critically important project will be posted on PRPA’s web site, www.philaport.com, as well as in future issues of this publication.
Maersk Line and CMA-CGM enhance Philadelphia’s South American Connections
PRPA is pleased to announce the recent addition of two new weekly services at the Port of Philadelphia’s Packer Avenue Marine Terminal in South Philadelphia. Packer Avenue now hosts both Maersk Line’s Spondylus Service and CMA-CGM’s Black Pearl Service.
Both of these excellent services significantly enhance the Port of Philadelphia’s already impressive connections with major ports in South America. Specifically, these services will target the busiest ports on the west coast of South America, including ports in Ecuador, Panama, Chile, and Peru.
“We’re now seeing increases in both general cargo and refrigerated cargoes, particularly fruit, thanks to these two new services,” said PRPA Executive Director James T. McDermott, Jr. “Shippers doing business that involves a Philadelphia/South America connection now more than ever have one-stop shopping at the Port of Philadelphia.”
The Port of Philadelphia’s excellent array of South American services also includes a weekly service to the west coast of South America by Mediterranean Shipping Company (MSC).
Contact the PRPA Marketing Department at (215) 426-2600 or at marketing@philaport.com for more information about the Port of Philadelphia’s new enhanced services to South America.
Port Hosts “Seed Summit” to Discuss Issues Related to this Unique Port Cargo
PRPA often works with shippers and other maritime industry professionals to address the needs of specialized cargoes that move through the Port of Philadelphia. This was the case on Wednesday, February 16 when PRPA hosted a “Seed Summit” to kick off the impending seed importing season at Tioga Marine Terminal and Packer Avenue Marine Terminal.
Held in the large conference room at PRPA’s main headquarters, the Seed Summit brought together all the port partners integral to the success of the Port’s seed program for a morning of meetings and information exchanges. The emphasis of the gathering was hearing what services the Port’s importers and forwarders expected and needed when the seeds arrived at Philadelphia’s terminals in February and March, and their concerns about the efficient discharge and delivery of the cargo.
As pointed out by PRPA Director of Marketing Sean Mahoney, “Seed cargoes are ultimately loaded onto trucks for the trip to the farmlands of the Midwest. If the seeds arrive too late, germination may begin, lessening the value of the seeds, or the farmers may reject the cargoes altogether, because they needed the seeds in the ground by a certain time, and opt to plant another company’s seeds.” The summit allowed for the frank discussion of issues and concerns related to the Port’s seed cargoes, in order to minimize potential negative scenarios like the ones discussed by Mr. Mahoney.
Scott Frane, President of Pro-Ag Logistics said,” We are always very pleased with the level of service we’ve received in the Port of Philadelphia over the years. Everyone involved with the movement of the seeds through the terminals in Philadelphia recognizes the importance of getting the containers on the road to the farmers in the Midwest. We are always very thankful for the quick and efficient service we’ve received at the Port of Philadelphia. All of our partners here are integral to the success of the seed program.”
PRPA seed cargoes primarily originate in Chile and Argentina, and move through the Port of Philadelphia each winter and early spring. The seeds are used to grow a variety of crops.
With the retirement of Charles Lawrence and George Fedorijczuk, PRPA Says Goodbye to Two Pillars of the Port
With the recent retirement of PRPA Director of Engineering Charles Lawrence and PRPA Accounting Administrator George Fedorijczuk, the agency lost two port mainstays who provided strong guidance and unsurpassed institutional wisdom to two critical PRPA departments, Engineering and Finance.
Both gentlemen retired on January 4, 2011, with their combined years of state service surpassing six decades.
During a luncheon celebration for both employees, held at Romano’s Catering in northeast Philadelphia on January 4, PRPA Executive Director James T. McDermott, Jr. lauded the contributions of Mr. Lawrence and Mr. Fedorijczuk during their tenure at PRPA.
Of Mr. Lawrence, known to his friends and colleagues as Chuck, Mr. McDermott remarked, “Chuck Lawrence’s friendliness, sense of humor, and caring attitude to his fellow man could sometimes make you forget what a serious, top-flight engineer was ticking under that unassuming exterior. But we would all quickly remember when we sat around some blueprints with him or listened to his pitch about the best way to do something. His standard of excellence will be followed for years to come and he will be greatly missed.”
Mr. McDermott also singled out George Fedorijczuk’s unique contributions to PRPA. “In the early days of our agency, when procedures had yet to be created and mistakes were still being made, George Fedorijczuk joined us, bringing with him years of previous service at the Pennsylvania Liquor Control Board and the State Comptroller’s Office, as well as his own common sense and accounting acumen. He shortly sharpened up our financial operation with policies and procedures we observe to this day, and became a steady, invaluable day-to-day presence in our Finance Department. He, too, will be greatly missed.”
Mr. Lawrence and his family are now enjoying their extra time together, which includes working with their church to better the lives of the needy in Africa. Mr. Fedorijczuk is also enjoying the new, added time with his family, and they together continue to be very active in the Philadelphia-Ukrainian community.
Congratulations again, Chuck and George. PRPA will sincerely miss you both.
Hyundai and Kia Automobile Cargoes Deliver Jobs and Economic Activity to the City and Region
Since last August, motorists driving through the intersection of Delaware and Oregon Avenues in South Philadelphia, or looking down from the Walt Whitman Bridge while traveling to or from New Jersey, have more than likely seen a very dramatic sight: thousands of Hyundai and Kia automobiles, shiny and new and just arrived from South Korea, neatly parked at PRPA’s Automobile Processing Facility at Pier 98 Annex.
Hyundai Motor Company, and its logistics partner Glovis of America, have regularly and without interruption delivered these automobile cargoes to the Port of Philadelphia since the arrival of Glovis’ first auto-carrying vessel at the Packer Avenue Marine Terminal on August 2, 2010. By the end of 2010, over 69,000 automobiles had already arrived at the Port. And now, almost five months into 2011, the flow of cars remains unabated.
The agreement between Glovis and the Port of Philadelphia to bring the auto cargoes here came about via a concerted effort by PRPA, the Commonwealth of Pennsylvania, the Port’s ILA and Teamster workforce, Greenwich Terminals, LLC (operator of Packer Avenue Marine Terminal) and Philly Ro-Ro Partners (operator of Pier 98 Annex). All worked closely with Hyundai and Glovis to craft an agreement that resulted in Hyundai’s US-bound auto cargoes being diverted from their previous U.S. ports of entries in Newark, New Jersey and Baltimore, Maryland to the Port of Philadelphia.
Substantial investment by both the Commonwealth of Pennsylvania (about $1 million initially) and Philly Ro-Ro Partners (about $3.7 million), for the retrofitting of the Port’s facilities to meet the needs of Hyundai and Glovis, was integral to Hyundai’s decision to relocate to Philadelphia. That investment is still continuing into 2011, with $2 million being released by the Commonwealth of Pennsylvania in April to fund the paving of the “Whiskey” and “Savage” yards located adjacent to the Pier 98 Annex Automobile Processing Facility. The additional paved areas are necessary to handle the high volumes of cars that continue to arrive there.
Hyundai’s automobiles arrive thousands at a time via car-carrying vessels that dock at PRPA’s Packer Avenue Marine Terminal. Members of the Port’s International Longshoremen’s Association (ILA) workforce drive the cars off the vessels, turning them over to the Port’s Teamster workforce at a “point of rest” area near the vessels. The Teamsters then drive the cars across the street to PRPA’s Pier 98 Annex facility. While at Pier 98 Annex, the cars undergo various stages of processing: the cars are washed, any necessary repairs are made, and options are often added. Ultimately, car-carrying trucks deliver the cars to Hyundai and Kia dealerships throughout the region.
In addition to working with the Commonwealth to help bring about needed state investment to the operation, PRPA has provided other benefits to Hyundai and Glovis to encourage its business here. Most recently, PRPA helped the Pier 98 Annex processing operation attain Foreign Trade Zone (FTZ) status, resulting in substantial savings on import duties and other expenses associated with imported goods. PRPA is the grantee of Foreign Trade Zone #35, which covers Philadelphia and the southeastern Pennsylvania region.
Looking back on the process to attract Hyundai to Philadelphia, James T. McDermott, Jr., Executive Director of the Philadelphia Regional Port Authority, said, “It was a long, difficult road in many ways, with so many interests having to get on the same page. But nothing worth having is ever easy, and now we have an operation that brings over 100 vessels a year to the Port of Philadelphia, with each vessel delivering thousands of new automobiles. These auto cargoes have created almost 300 full-time jobs right here at the Port alone, with an additional 400 full-time jobs throughout our region. There are also taxes, business revenue, and other substantial economic benefits, all due to this cargo. I’m proud of everyone at this port who made this happen.”
Regional Port, Business, and Government Leaders Cut Ribbon for New Philadelphia Wholesale Produce Market
Following a September 2008 groundbreaking ceremony and an October 2010 topping-off ceremony (to mark the last piece of structural steel to be put in place), a brisk, sunny Friday, March 25 saw the occasion that regional leaders had been anxiously looking forward to for months: the ribbon-cutting ceremony for the new Philadelphia Wholesale Produce Market.
From a podium positioned in front of a huge display of colorful, fresh produce, PRPA Executive Director James T. McDermott, Jr. summed up what everyone at the event was feeling: “This is such a great day for us, as we see the end result of a long, challenging process with multiple aims: keeping the long-revered Philadelphia produce vendors here in Philadelphia, finding a new location for them to operate, and building a new facility that meets the needs of their very competitive business. Finally, as we cut this ribbon on this beautiful day, we celebrate the successful completion of all of those aims.”
Located on Essington Avenue in Southwest Philadelphia, the new Produce Market will house twenty-six vendors selling all manner of produce to both commercial entities and the general public. The facility replaces a previous facility in South Philadelphia, a facility about half the size of this new one. The Philadelphia Regional Port Authority was a primary member of the team that made the new Produce Market a reality, and will act as landlord for the facility.
In addition to Mr. McDermott, who acted as master of ceremonies, taking part in 1:00 p.m. ceremony was Philadelphia Mayor Michael A. Nutter; Pennsylvania State Senator Lawrence Farnese; President and CEO of the Philadelphia Wholesale Produce Market Sonny DiCrecchio and members of his organization; Philadelphia City Council President Anna Verna; and developer Brian O’Neill, founder and Chairman of O’Neill Properties, who in his remarks said that the new facility “…will be the New York Stock Exchange of vegetables, fruit, and produce trading.”
The 667,000 square foot state-of-the-art facility is nearly twice the size of the old facility in South Philadelphia and will be the first of its kind in the United States with a 100% fully refrigerated facility throughout the entire building. The new facility will prevent the cold chain from breaking from truck transport to loading docks to cold storage within the Produce Market. The building is constructed of steel, concrete, and insulated metal panels that are five inches thick to maintain the required refrigeration. It features 228 enclosed and fully refrigerated 50-foot wide dock areas, 40-foot ceiling heights, a skylight running the length and width of the building to provide natural lighting, a central walking concourse open to the public, second floor office space with secure access, and ten entrances to the building, with one main entrance for the public. The facility also includes an 18,000 square foot auxiliary building for recycling pallets and food products.
The Philadelphia Wholesale Produce Market came about through a cooperative effort spanning the region, a true public/private partnership encompassing city, state, and private funds to create a facility to service the needs of the produce vendors whose companies have been working together for more than a hundred years. PRPA was the agency to which the Commonwealth of Pennsylvania released its share of the project’s funds, about $150 million, with PRPA also working closely with the Commonwealth’s Department of General Services during the building’s construction phase. Now that construction is complete, PRPA will maintain onsite personnel at the Produce Market, working in a cooperative effort with the vendors there to assure the efficient operation of the facility and to monitor and protect the Commonwealth’s investment.
Though more than one speaker acknowledged that the ambitious nature of the project and the specific interests of each participating party sometimes resulted in days during the past year that were less than totally cordial, every speaker at the March 25 ceremony ultimately lauded the efforts and commitment of all the agencies and their various personnel who brought the project to fruition. In the end, however, it was talk of the facility itself that everyone returned to.
“Our new Philadelphia facilities will enable the Produce Market to compete and win in the global economy,” said Sonny DiCrecchio, President and CEO of the Philadelphia Wholesale Produce Market. “We believe that this facility will be without equal, and as a result we will be able to grow our business, add new jobs, attract new business opportunities, and enable Philadelphia to set the worldwide standard for best practices in the food distribution industry. Less than five minutes from three major interstate highways- 95, 476, and 76- as well as Philadelphia International Airport, and only ten minutes from the Port of Philadelphia, this new location enhances strategic distribution for all critical transportation methods including trucking, air freight, rail, and boat.”
About two hundred people attended the ribbon-cutting ceremony, including representatives of the Philadelphia Regional Port Authority, O’Neill Properties Group, the Philadelphia Wholesale Produce Market, the Philadelphia Industrial Development Corporation, organized labor, and other parties integral to getting the facility up and running, and operating on a daily basis. Following the ceremony, the gathering moved inside to see firsthand the produce vendors’ spectacular new home and to enjoy a catered reception.
The produce vendors are now in the process of moving into their new facility, and should be settled in and doing business by mid-spring. For more details about the new Philadelphia Wholesale Produce Market and its facilities and operation, please visit PRPA’s web site at www.philaport.com, the Philadelphia Wholesale Produce Market’s web site at www.pwpm.net, and future issues of this publication.
With All That’s New at the Port, Our Traditional Cargoes Are still Exciting to Us, Too.
Much of our news in the past months has involved exciting new cargoes and services at the Port of Philadelphia, the dedication of new facilities, and the advancement of bold initiatives like the Delaware River Channel-Deepening Project and the proposed Southport terminal. Just check inside this new issue of PortWatch and you’ll see what we mean.
In the midst of all this good news, however, it’s important not to lose sight of PRPA’s mainstay perishable cargoes, the cargoes that have reliably provided family-sustaining jobs and so many other benefits to the city of Philadelphia and the surrounding region. Handled in both traditional breakbulk fashion and in containers, these cargoes remain the backbone of the Port.
Driving along the Delaware River waterfront, these many cargoes are a daily sight at PRPA’s terminals and facilities. There are grapes from Chile, pears and apples from Argentina, bananas from Columbia, and cocoa beans from Africa, to name a few examples.
Accompanying these cargoes are a variety of handling methods, many quite modern and some not so different than they ways these cargoes were handled decades ago. More importantly, these cargoes are accompanied by the expertise of the Port’s top-notch labor force, who efficiently and safely get these cargoes off their respective vessels, into dockside warehouses, and eventually onto trucks for transport to their final destinations.
“The Port of Philadelphia continually looks forward, and that’s why we now have new cargoes like Hyundai and Kia automobiles moving over our terminals,” said PRPA Senior Deputy Executive Director Robert C. Blackburn. “But looking ahead doesn’t mean we’re forgetting about the importance of cargoes like fruit and cocoa beans, cargoes that put us on the map in the first place.”
Indeed, one new port development will make it easy to keep at least Philadelphia’s fruit cargoes in the forefront of people’s minds: the recent opening of the Philadelphia Wholesale Produce Market in southwest Philadelphia (see the article on page 2). Though not located in the port district, port officials have high hopes that this exciting new facility, to be overseen by PRPA, will help bolster fruit cargoes at PRPA’s marine terminals.
But until then, when you eat the grapes, pears, apples, and bananas that arrive here from around the world, or chocolate bars made from the cocoa beans regularly offloaded at PRPA’s Pier 84, think of the men and women at the Port of Philadelphia who helped put those delicious items within your reach.
Visitors From College of William & Mary Learn About Port Labor Issues
PRPA was pleased to help host a group of students from Williamsburg, Virginia’s College of William & Mary on Friday, March 11. The students were spending their spring break in Philadelphia meeting various labor leaders as part of the college’s Labor and Worker Justice Program, and used March 11 to concentrate on waterfront labor issues in our region.
Their chief contact that day was International Longshoremen’s Association (ILA) Local 1291 President Boise Butler, who is also a PRPA Board Member. Mr. Butler discussed with the students his full, busy history with the ILA, from his days as waterfront laborer to his current leadership role.
The students’ day at the port also included a tour of PRPA facilities, conducted by Mr. Butler with assistance provided by PRPA Senior Marketing Representative Dominic O’Brien and PRPA Marketing Representative Frank Camp.
New Security Booth Welcomes Visitors to Pier 98 Annex
Following months of utilizing makeshift structures at the entrance of the Pier 98 Annex Automobile Processing Facility, PRPA’s security officers were recently presented with a modern, weatherized, fully-equipped security booth at the busy facility, allowing them to better manage the constant flow of workers and vehicles that now move in and out of the facility since the arrival of Hyundai and Kia’s automobile cargoes at the Port of Philadelphia in mid-2010. The new booth also presents a clean, professional first impression of the auto facility, reflecting the top-notch operation within. PRPA’s security officers are a polished bunch, and we’re glad their new booth reflects the professionalism they all bring to the job!
O’Meara Assigned to Produce Market
PRPA congratulates William O’Meara, a longtime PRPA staff member who was promoted to PRPA Produce Market Manager, assigned to the Operations Department, on February 14, 2011. In his new position, Mr. O’Meara will act as liaison between PRPA and the new Philadelphia Wholesale Produce Market, located in southwest Philadelphia. PRPA is the landlord of the new, state-of-the-art facility, which replaces the previous produce facility in South Philadelphia.
Mr. O’Meara joined PRPA in 2003, initially assigned to the agency’s Maintenance Department. Prior to his most recent promotion, he was Administrative Aide to PRPA Executive Director James T. McDermott, Jr.
“Being a longtime, proactive resident of South Philadelphia, Mr. O’Meara already has solid relationships with most of the workers and vendors who will operate out of the new Produce Market,” said Mr. McDermott. “That fact, coupled with his eight years of experience at PRPA, makes him an excellent choice as our man on the scene at this spectacular new facility.”
PortWatch Honored
In the 2010 American Association of Port Authorities (AAPA) Communications Competition, PRPA’s official magazine, PortWatch, won an Honorable Mention in the Periodicals category. Essentially a Bronze Medal in the competition (AAPA’s three award levels are the Award of Excellence, the Award of Merit, and the Honorable Mention), the judges’ designation means that PortWatch is considered among the top three port publications in the Western Hemisphere’s maritime industry. Congratulations to all the PRPA employees who regularly contribute to PortWatch and helped it attain this honor. PRPA also congratulates Davis Advertising for its excellent design and layout work each issue.
There are many more pieces of news, as well as ample photographs, in the print edition of PortWatch. Get yourself on the print edition mailing list, or check out the PDF of the current issue (click here) to see what you’re missing.
