TRADE GROWTH AND REGIONAL IMPACTS

Richard Hollingsworth

Gateway Cities Partnership, Inc.

An Industry That’s Fits

• The Transportation Industry is a huge employer

• The jobs are in transportation not trade• The available jobs fit the population• Ten of thousands of people in this region

rely on the port for they livelihood.• But no one likes trucks• Transportation jobs are not high wage jobs

Transportation Jobs Fit

Educational Attainment (Adults 25 & Older)*

14.4%

26.6% 26.6%

18.3%

7.2% 5.3%1.8%

0%

10%

20%

30%

The Good The Bad and The Ugly

• Local Jurisdiction versus transportation– Tearing up the streets– Parking everywhere

• Industry view– Creating jobs– Creating wealth

• Commuter View– Clogging the freeways– Delays getting to and from work

Growth in the Ports

• Long Beach/Los Angeles 1990

Less than 3 million TEUS

• Long Beach/Los Angeles 1999

8,237,300 TEUS

• Increase of 274% in 9 years

• 200% increase projected before 2020

• That increase will come long before 2020

Truck Traffic Estimates

• Current traffic on the I710 36,300

• Projection 2020 on the I71091,930

• Total port traffic 2020 147,590

• 15% will migrate to weekend

• 30% will go to on dock rail

What will it look like

International Trade and Commuters (voters)

• No one likes driving surrounded by trucks

• 710 is a truck freeway

• Growing numbers of commuters and truckers compete for asphalt/concrete

• Commuters resent trucks

• Freight doesn’t vote

Temporal Distribution of Truck Trips

Distribution of Truck Trips Arriving at the Ports

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

12:1

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Temporal Distribution of Truck Trips

Distribution of Truck Trips Leaving the Ports

0.00%0.50%

1.00%1.50%2.00%2.50%

3.00%3.50%4.00%

4.50%5.00%

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4:15

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Air Quality

• California State University Long Beach Benchmarking Study

• 16,000 separate movements

• Waits of 1 to 2 hours are the norm

• Waits over 2 hours are common 40% +

• Waits of up to 4 four hours are significant

• Truck idling is a constant in the ports

Local Government Perspective

• Transportation is a cost center– Source of citizen complaints– Logistics operations eat up land– Relatively few jobs for land used– Not a producer of high wage jobs– Noticeable increase in on street parking of

containers – since reduction in free time

• Shut it out – South Gate, Gardena

Congestion

• Ocean terminals pushing more peak traffic• Transportation industry insensitivity

– Public Backlash– Commuter blames the truckers– Population growth brings more commuters– Truckers bear the brunt but do not control when

the freight moves– Lets not repeat the electricity debacle

Solutions• Widen Freeway – only way out• 10 years before any concrete is poured

– Major Infrastructure Study– Decide priorities– EIR/EIS– Design Freeway– Acquire property– Go to bid

Challenges and Solutions

• Killing the goose that lays the golden egg• Grounding of containers • Cities in the region like trade in principle

– Cost of street maintenance

– Not a good provider of city revenues

• Major benefits of trade are national • Major negative impacts are local• Tip O’Neill – all politics are local

Mitigation

• Implementation of clean diesel and particulate traps

• Importers/Exporters must provide off street container storage/parking or staging

• Shift some container moves to off peak hours.

• Longer shipping and receiving hours• Brief local officials