financing strategies: case study of the gerald desmond...
TRANSCRIPT
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Financing Strategies:
Case Study of the Gerald Desmond Bridge
Dr. Allison Yoh
Division of Transportation Planning
AAPA Infrastructure Development and Financing Seminar
March 10, 2016
San Diego, CA
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$180 Billion in Trade2nd Busiest U.S. Port
Gateway for clothing, toys, shoes, furniture
About the Port of Long Beach
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San Pedro Bay Port Complex
Port of Los Angeles Port of Long Beach
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Why is Southern California Goods Movement So Important to the Rest of U.S.?
Importing the Goods of a Nation
43% of America’s goodsExtensive hwy/rail infrastructure in Southern California
Local and Regional Demand
40% stays in the region18 million consumers/producers in Southern California
National Supply Chain Logistics
Over 1 Billion Square Feet of WarehousesDistribution centers in CA serve many states
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SCAG Regional Goods Movement System
• Six Commercial
Airports
• Four Major
Seaports
• 9,000 lane miles
of freeways
• Two Class I
railroads
• Three
international
border
crossings
• Abundant
warehousing
facilities
• Large internal
market
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Ships Are Getting Bigger
CMA CGM Corte Real arrived @ POLB on 11/8/2013Capacity: 14,000 TEUMax. Draft (water depth): 52’Height (Beam): 168’ Width: 98’ (8-Lane highway) Overall Length: 1,200’ (3.3 football fields)
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CMA CGM Benjamin Franklin arrived @ POLA on 12/26/2015Capacity: 18,000 TEUHeight: 197’Length: 1,300’ (longer than the Empire State Building is tall)Width: 177’ (half a football field) Net tonnage: 116,000
…and BIGGER.
Photo: LA Times
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And Just How Big Is A Big Ship?
Fact: The largest container vessels calling the Port of Long Beach today
are wider than the new Panama Canal locks, to be completed in
2015.
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Challenges for Surface Transportation System
• Meeting Future Demand
• Trucks serve primarily local uses and intra-regional
• Goods movement dependent industries will drive traffic growth
• Intermodal and rail
• Managing “Surges”
• More congestion – truck access; crossings
• Accelerated roads/bridges deterioration
• Inadequate funding for O&M
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• Obsolete and deteriorating
• Low clearance
• Isn’t capable of handling growth
• Needs to be replaced
Gerald Desmond Bridge
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• Design-build• Cable-stayed design• 205-foot vertical clearance• 3 lanes w. full shoulders (ea. direction)• Emergency lanes• Bicycle & pedestrian facility• Scenic overlooks
New Bridge Features
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Project Partners
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$1 billion Gerald Desmond Bridge Replacement
Iconic Bridge$1.47 billion
Gerald Desmond Bridge Replacement Project
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Project Budget: $1.49 Billion
$950 $960
$1,100
$1,263
$1,492
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Sep 2010 Jul 2012 Apr 2014 Oct 2013 Sep 2015
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Funding Sources ($ millions)
SAFETEA-LU$100
Other Federal$5.8
State/SHOPP$16.50
State/HBP$211.8
State/TCIF$329.8
State/CMIA$153.7
LA Metro$28.6
POLB Committed
$114
POLB/Other$181.8
POLB/TIFIA$325
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• Partnership is key
• Internal grants management capacity
• Satisfying conditions of multiple grants
• Matching
• Reporting
• invoicing
• Schedule
• QA/QC reviews
• Audits
Funding Arrangements
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• Unique conditions of funding
• Design Build
• Multiple grants on one project, or multiple projects on one grant?
• FASTLANE and TIGER – bundling/components
• End-to-end, systems, scaled benefits
• Project development timeframes
Funding Arrangements (cont.)
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Final Remarks
• Mega projects are being delivered at POLB
• Funding gaps to be resolved
• Competition among trade gateways remains fierce
• Environment of great infrastructure need and limited funding
• Sustainable/equitable funding for freight infrastructure and on-going O&M