april industry luncheon - crsoa
TRANSCRIPT
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 [email protected]
www.crsoa.net
Kate Mickelson | Executive [email protected] 503.505.3008
Hannah Milnes | Director of Member [email protected] 971.280.3905