april industry luncheon - crsoa

CRSOA February Industry LuncheonFebruary 2018

Industry Luncheon

TODAY’S PROGRAM

Featured Presentation: Port of Portland

Randy Fischer, Marine Marketing

Guest Speakers

USCG Industry Brief

MEMBER OF THE MONTH

Kent CashPort of Vancouver USA

Sector Columbia RiverMSU Portland, OregonUSCG Industry Brief

Marine Business Future Plans

Randy FischerMarine Marketing

We’ve Had Some Rough Roads…

Terminal 6 Overall Business Strategy

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www.advisian.com

Port of Portland T-6 Business Strategy

Consultant Business Study Findings

Nolan Gimpel, Project Manager, Advisian

January 10, 2018

Industry Leader Committee

Chair (1) – Linda Pearce, Port Commissioner

Ports (2) – Keith Leavitt, Port of Portland– Gary Neal, Port of Morrow

Exporters (3) – Stu Follen, SL Follen – Kit LaBelle, Hampton Lumber – Amer Badawi, Columbia Grain

Importers (4) – John Ducker, Columbia Sportswear – Patricia Villalonga (Bob Wilkerson),

The Kroger Group– Kevin Koronko, Dr Martens – Neil Salstrom, Toyo Tanso

Service Providers (7) – Del Allen, Allports– Brenda Barnes, George S. Bush – Jonathan Berndt (Brian Flood), Expeditors – Don Karls, Burlington Northern Santa Fe – Ken Norwood, Union Pacific – Greg Zanavich, Tidewater – Jana Jarvis, Oregon Trucking Associations

Labor (2) – Mike Stanton, ILWU Local 8– Bob Carroll (Diana Winther), IBEW Local

48 Carriers (2)

– Guy Stephenson, Westwood – Tom Yu, former Hanjin Shipping

Ex Officio (2): Sen. Bill Hansell and Rep. David Gomberg

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Task 1 – Industry Analysis• Carrier market in a state of flux• Excess capacity driving down rates• Ships increasing in size• Reduced competition in the market

Task 4 – Operating Models

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Operating

Control

Ris

k/R

ewar

d Semi-Operation

Concession

Landlord

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Task 6 – Financial Analysis

Terminal 6 Volumes vs. Breakeven (thousands of vessel moves)

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0

Consultant Findings and Conclusions

• Port must focus on a variety of options for shippers at Terminal 6.• “Mixed-use” of the terminal will improve financial performance.

– But losses are likely unavoidable if box volumes remain low.• Container volume/scale the key to profitability.• Prices must be set at “sustainable” levels and match expense growth.

– Prices failed to keep pace with expenses from 2002 – 2009.• Productivity must meet or exceed coastwide standards.

– Especially important in low volume situations.

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Consultant Findings and Conclusions (continued)

• Recovery of weekly transpacific service is key to serving shippers.• Success is a high bar.• Alignment needed on many levels for success:

– Container volumes and pricing goals are met.– Productivity goals are met.– Alternative uses are achieved and they contribute to supporting the

overall Terminal 6 facility.– Container footprint and costs are reduced.– Regional shippers and others support the direct call.

• The reason to pursue this line of business is to fulfill the Port’s mission of providing access for regional importers and exporters.

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Auto Imports and Exports Auto

Imports

Intermodal Yard

Container Capabilities

Multi-Use Facility

Berth 601 Berth 603Berth 604

Berth 605

Berth 607

Port of Portland Terminal 6

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Intermodal Train Loading

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Containers for SWIRE Vessel Loading

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Trucks for SWIRE Vessel Loading

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Next Up -Terminal 2 • 52 Acres Overall• Covered storage (7 acres)• Open storage area (27.5 acres)• 8,800 feet of rail track• Low dock

THANK YOU!

ANNUAL MEMBERSHIP MEETING IMMEDIATELY FOLLOWING THE INDUSTRY LUNCHEON

Columbia River Steamship Operators’ Association, Inc.200 SW Market Street, Suite 190

Portland, Oregon 97201admin@crsoa.net

www.crsoa.net

Kate Mickelson | Executive Directorkate@crsoa.net 503.505.3008

Hannah Milnes | Director of Member Serviceshannah@crsoa.net 971.280.3905