Ports & Transportation

NEWS - Ports & Transportation

Senators urge FAA to cut costs without affecting safety or efficiency

April 24, 2013 – U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., on Friday strongly urged Federal Aviation Administration (FAA) Administrator Michael Huerta to reconsider his plan to furlough air traffic controllers and reduce staffing in towers to cut costs as a result of the Budget Control Act of 2011. Such furloughs would create thousands of delays each day at all major airports across the country, and the senators told Huerta in a letter to find other ways to cut costs without affecting efficiency or safety.

Isakson and Chambliss warned in their letter that “between 3,800 and 6,000 flights per day will experience delays as a direct result of these furloughs. To put this into perspective, the worst weather day during 2012 produced 2,600 flight delays.” The furloughs, which went into effect Sunday, have already caused widespread delays at airports across the country, including at Hartsfield-Jackson Atlanta International Airport.

The senators also stated, “It is our belief that the FAA is not pursuing every avenue possible to save money without affecting its overall mission, which is to ‘provide the safest, most efficient aerospace system in the world.’ While we understand that safety remains the top priority for the FAA, we would encourage you to review other areas to reduce costs, such as in non-personnel, travel, and consultant accounts, before implementing air traffic controller furloughs.”

The full text of the senators’ letter is below.

Administrator Michael Huerta
Federal Aviation Administration
800 Independence Ave., SW, Room 1010
Washington, DC 20591

Dear Administrator Huerta:

Members of Congress and staff were notified today of the Federal Aviation Administration’s (FAA) decision to furlough air traffic controllers, effective just three days from now on April 21.  It is our understanding that the decision will require one furlough day per pay period, totaling 11 furlough days for the remainder of FY2013, and will reduce staffing in towers by 10 percent.

Based on the information we received today from the FAA’s Air Traffic Organization (ATO), this 10 percent reduction in air traffic controller staffing is anticipated to cause significant and consistent passenger and cargo delays.  Overall, the FAA predicts that between 3,800 and 6,000 flights per day will experience delays as a direct result of these furloughs.  To put this into perspective, the worst weather day during 2012 produced 2,600 flight delays. As you know, the FAA defines a delay by 15 minutes or more.

According to the airline industry, the FAA has acknowledged that airlines will have to extend their operation schedules into the late evening or early morning hours, or cancel flights all together.  When you take into consideration high load factors and peak travel hours/days, passengers will most likely be unable to book or even rebook flights, as a result of such cancelations.

It is our belief that the FAA is not pursuing every avenue possible to save money without affecting its overall mission, which is to “provide the safest, most efficient aerospace system in the world.” While we understand that safety remains the top priority for the FAA, we would encourage you to review other areas to reduce costs, such as in non-personnel, travel, and consultant accounts, before implementing air traffic controller furloughs.  We also encourage you to remain, as your mission states, “accountable to the American public and stakeholders.” 

In order to better understand the FAA’s plans for dealing with sequestration, please provide our offices with your methodology for arriving at this decision.  Additionally, in the future, we would appreciate the courtesy of being informed well in advance when decisions of this magnitude are contemplated.

Sincerely,

Saxby Chambliss                                                                           Johnny Isakson

NEWS - Ports & Transportation

Board approves additional investment in Greer inland port

April 17, 2013 - The Port of Charleston is having its strongest fiscal year for container volume in five years, according to results announced today at the regular meeting of the South Carolina Ports Authority (SCPA) Board of Directors.

During the first nine months of the fiscal year which began July 1, the SCPA's box volume was up 10 percent over the same period last year, with 1,160,999 20-foot equivalent units (TEUs) handled at the SCPA's two container terminals in Charleston through March 2013.

"We are pleased that our actions to increase volume are bearing fruit," said Jim Newsome, president and CEO of the SCPA. Newsome noted that the upcoming fourth quarter of the fiscal year traditionally has been a period of strong numbers. "There are a number of deployments of large vessels which should further influence volume, especially on the export side."

The Port of Charleston handled 136,877 TEUs in March, a 1.5 percent increase over the same month last year and a 13.8 percent increase over March 2011.

Bulk and breakbulk tonnage similarly posted positive year-over-year results during the first nine months of the fiscal year. The SCPA's non-containerized facilities in Charleston and Georgetown handled 1,205,194 pier tons of cargo from July to March, a 14.5 percent gain from the same period in fiscal year 2012.

In other action, the SCPA Board approved $12.9 million in additional funding toward the South Carolina Inland Port (SCIP) in Greer, SC, currently under construction. The project's design is now more than 90 percent complete with a projected opening in September 2013.

"What we have is a much more robust facility than initially planned," Newsome said. "We have designed and will construct the inland port to bring optimum benefit to our customers and a greater return on investment over the longer term."

Located 212 miles from the Port of Charleston, the SCIP will serve as the extension of the SCPA's coastal facilities in the middle of the largest concentration of in-state port customers in the Upstate region of South Carolina. Importantly, the facility immediately will convert 25,000 existing truck trips on I-26 to rail transportation. The SCIP will have an expected capacity of 40,000 containers at start up and, with the newly approved funding, will grow its capability to around 80,000 lifts a year.

The board also approved the transfer of 2.24-acres of property to Clemson University for the wind turbine testing center under construction in North Charleston on the former Navy Base. The property will be used to house an electrical power station for the Clemson University Restoration Institute wind turbine project.

Jasper Ocean Terminal Board of Directors Meets in Charleston

The board of directors of the Jasper Ocean Terminal Joint Project Office (JPO) met Tuesday at the South Carolina Ports Authority Administration Building in Charleston.

The JPO Board received the interim market and economics report from engineering firm Moffatt & Nichol, which serves as project manager for the future 1,500-acre marine terminal. Moffatt & Nichol will continue work to finalize the report for review at the JPO’s June meeting. The JPO Board also will review the fiscal year 2014 at the next meeting.

In other business, the Board approved the minutes of its Oct. 15, 2012, meeting and received financial reports.

NEWS - Ports & Transportation

April 15, 2013 – The president's budget once again includes funds to continue Charleston's Post-45 Harbor Deepening, a project designated last year by the administration as one of its priority infrastructure projects. Released today, the fiscal year 2014 budget includes a $1.165-million allocation to continue the considerable progress on the project's feasibility study, now at its midpoint.

"We are grateful to the administration for including Charleston's project in the budget for a second year in a row, as well as their commitment of resources to expeditiously advance our project," said Bill Stern, chairman of the South Carolina Ports Authority (SCPA) Board of Directors. "This funding means that Charleston's study can proceed to completion with absolutely zero funding restraints, as both the federal and the port's contributions have been fully committed at this point."

The feasibility study is cost-shared 50/50 between the federal government and the SCPA, which committed to accelerate its half of the study funds as needed to continue advancing the project. A national measure to modernize U.S. Army Corps of Engineers' Civil Works projects targets completion of the feasibility study and necessary reviews by September 2015 at a cost of $13 million or less. The Draft Environmental Impact Statement is scheduled to be released next year.

"Leaders at all levels of government have recognized the Port of Charleston's importance to the state's, the region's and the nation's economy, and we are thankful for the efforts of our Congressional Delegation, led by Sen. Graham and Congressman Clyburn, the South Carolina Legislature and Mayor Riley." Stern said.

Last session, the South Carolina General Assembly set aside $300 million to cover the estimated cost of construction for a 50-foot deepening project in Charleston. The funds would cover both the state's 60 percent share of the project's cost as well as the federal government's 40 percent share, if needed, thereby removing any funding constraint.

The president's budget also included $14.825 million for maintenance dredging in Charleston Harbor.

Overall allocations to civil works for the fiscal year that begins Oct.1 are $4.7 billion, a 5.5 percent decrease from the 2012 enacted level. The President's Budget "focuses on the highest priority work within the agency's three main missions," which includes commercial navigation, and "emphasizes investments in construction projects with high economic and environmental returns," according to the document. The Corps' investigations budget includes funding for studies related to the deepening of eight U.S. ports, including four East Coast ports, two Gulf ports and two West Coast ports.

Importantly, the budget summary notes that the Administration's Task Force on Ports is developing a nationwide strategy to guide investments related to port infrastructure, creating a network "that is more efficient, safe, secure, resilient and environmentally sustainable." The budget document also notes that the Administration is working with the Corps to establish a national Infrastructure Bank to help finance port deepening projects and other major water resource activities.

The Corps stated in its Reconnaissance Study in 2010 that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet." Last July, the administration named the Charleston Harbor Post-45 Project as one of seven projects in five ports for We Can't Wait, a new initiative targeted to expedite the most critical infrastructure projects in the country.

With 45 feet of depth at mean low water, Charleston currently has the deepest channels in the region and can handle ships drafting up to 48 feet on high tide. Deepening Charleston Harbor to 50 feet will open the port to handling larger post-Panamax container ships 24 hours a day.

Nearly 20 percent of the port's ship calls so far in 2013 were vessels drafting greater than 39.5 feet, the current maximum depth at the Panama Canal. Ocean carriers are beginning to shift services in the Asia-U.S. East Coast trade to utilizing the Suez Canal in order to deploy larger vessels and take advantage of economies of scale.

Already this year, 21 ships with actual docking or sailing drafts 43 feet or greater have called Charleston, which is the only port in the region today able to handle these vessels.

NEWS - Ports & Transportation

SBJ Staff Report

April 8, 2013 - The U.S. Occupational Safety and Health Administration recently recognized Delta Air Lines' Airport Customer Service and Technical Operations in Savannah as its newest Voluntary Protection Programs Star sites. Delta -- the first major airline participant in the VPP program -- now operates 15 airport and aircraft maintenance locations across the United States with the Star site designation.

OSHA VPP is an initiative designed to recognize workplaces with outstanding safety systems and performance. Less than one percent of the 10 million work sites in the United States share this distinction. In VPP management, employees and OSHA establish cooperative relationships at workplaces that have implemented a comprehensive safety and health management system and have achieved an exemplary record of occupational safety and health among their employees.

"We are very proud of our Savannah team for their unwavering commitment to Delta's deepest core value -- safety," said Ken Hylander , senior vice president -- Corporate Safety, Security and Compliance. "OSHA's VPP Star status is a great validation of Delta's culture of safety and working together."

Delta's Savannah operation met the multipoint safety and health analysis and successfully completed an intensive on-site inspection by OSHA staff, which included proactive measures to prevent fatalities, injuries and illnesses through a system focused on hazard prevention and control, worksite analysis, training, management commitment and employee involvement.

The Savannah operation worked for more than a year to earn Star site status, according to the company.

Delta began participating in the VPP program in 2001 when its 2.7 million-square-feet Atlanta Technical Operations facility became the first aircraft maintenance base in the industry to earn Star site status. Other locations with Star status include additional facilities in Atlanta; Augusta, GA.; Colorado Springs, CO.; Columbus, OH; Washington, D.C.; Melbourne, Fl..; Jacksonville, FL.; Dayton, OH.; Ontario, Calif.; and St. Louis. Additionally, Delta wholly owned subsidiary DAL Global Services maintains Star status at Columbus, Ohio; Colorado Springs, CO.; and Jacksonville, FL.

NEWS - Ports & Transportation

April 4, 2013 - The South Carolina Ports Authority (SCPA) and the South Carolina Department of Health and Environmental Control (DHEC) have extended their air quality partnership through 2018, more than a decade after first formalizing their cooperation to reduce port-related emissions.

The Memorandum of Agreement (MOA) between the two agencies was the first of its kind in South Carolina and is the state's longest-running collaboration on air quality within the public sector.

The new agreement continues work begun in 2007 to improve air quality in the area andexpands the SCPA's commitments to evaluate and implement ways to minimize emissions at the port and across the tri-county region. The MOA took effect on March 31 and runs through the fall of 2018, with the opportunity to renew.

"This is a great example of interagency cooperation at the state level to support job creation and improve quality of life for our citizens," said Gov. Nikki Haley. "As we continue to streamline processes to help businesses grow in our state, this voluntary collaboration helps the environment without adding red tape."

"Our partnership with DHEC is an integral part of our overall environmental efforts, recognizing that a healthy, working port and a cleaner environment can be mutually compatible goals," said Jim Newsome, president and CEO of the SCPA. "The Port of Charleston today is known as a leader among ports in this region for environmental stewardship. We will continue to make environmental gains through efforts aligned with the competitiveness of our industry."

As part of the agreement, DHEC will provide technical assistance and expertise in support of the SCPA's operational improvements and environmental efforts.

"This agreement is above and beyond what the law requires," said DHEC Director Catherine Templeton. "This collaboration is a practical example of pursuing economic development while taking voluntary measures to reduce impacts and responsibly protect the environment."

The SCPA has committed in the MOA to a number of specific air quality measures, which include:

• Funding an ambient air monitoring station within the Charleston region that will measure air quality for a period of 23 months;
• Replacing retired equipment with cleaner equipment at all facilities;
• Designing the South Carolina Inland Port in Greer to accommodate electric gantry cranes for stacking containers;
• Continuing to use ultra-low sulfur diesel (ULSD) fuel in all port-owned equipment and evaluate the use of cleaner fuels and new technology that is commercially viable;
• Requiring clean construction contractor guidelines for Tier 2 or higher emissions standards for equipment as well as the use of ULSD; and
• Continuing periodic air emissions inventories to quantify port-wide air emissions.

The Port of Charleston was the first port in the region to commission a comprehensive air emissions inventory. The baseline inventory measured 2005 port-related air quality from the sea buoy to the county lines of Charleston, Berkeley and Dorchester counties - an area of roughly 2,500 square miles - and indicated that port-related emissions accounted for five percent or less of total pollutants in the area.

Subsequent inventories to measure 2011 and 2017 port-related air emissions will track the effect of the SCPA's truck replacement program and repower projects for cargo-handling equipment as well as new federal fuel standards for ocean-going vessels calling North American ports. The Environmental Protection Agency estimates that the Emissions Control Area (ECA) regulation will reduce ship-related air pollution by up to 85 percent.

Since 2007, the local maritime community has successfully received Diesel Emissions Reduction Act (DERA) and American Recovery and Reinvestment Act (ARRA) funding to help implement more than $5.5 million in various retrofits, upgrades and engine replacements to container-handling equipment, trucks, tugs and other marine equipment.

In addition, the MOA recognizes operational productivity, such as low turn times for trucks, high crane production and the SCPA's rail drayage program, as key to air emissions reduction. These efforts mean ships spend less time at the SCPA's docks and trucks are processed in and out of the terminals more rapidly and log fewer empty miles on local roadways.

NEWS - Ports & Transportation

SBJ Staff Report

April 2, 2013 - The $50 million in additional port deepening funds proposed by Georgia Gov. Nathan Deal has been approved by the state legislature and now awaits the governor’s signature, according to the Georgia Ports Authority today.

Along with previous funding, Georgia has now allocated $231.1 million toward the state’s portion of the Savannah Harbor Expansion Project (SHEP) from 42 to 47 feet.

“This infrastructure investment is crucial not just for the port, but for the economy of Georgia and the entire Southeast,” said Deal, in making the announcement on the upcoming signing.   “A deeper Savannah Harbor means greater efficiency for 21,000 U.S. companies, 75 percent of which are headquartered outside of Georgia.  A U.S. Army Corps of Engineers study has shown that SHEP will reduce shipping costs for private companies by at least $213 million a year.  Neither Georgia nor this nation can afford to delay a project that provides customers with a tool that reduces their costs.”

The new funding was part of Gov. Deal’s FY2014 budget request, and included in the final version of the state spending plan passed by the General Assembly last Thursday.

“The strong actions by the General Assembly and the governor indicate the level of commitment across the state to see the harbor deepening completed,” said GPA Board Chairman Robert Jepson. “We appreciate the broad support among state leaders for our deepwater ports, which serve as economic engines supporting 352,000 jobs across Georgia.”

Overall, the cost of the project is anticipated to be $652 million. The Record of Decision, signifying final federal approval for the project, was issued in October 2012, clearing an important hurdle toward federal construction dollars.

“The Record of Decision means the project has been determined safe for the environment by our federal agencies, including the Environmental Protection Agency, the Fish and Wildlife Service and the National Marine Fisheries Service,” said GPA Executive Director Curtis Foltz. “Additional studies by the Army Corps of Engineers show a 5.5-to-1 benefit to cost ratio, meaning that for every dollar spent on the deepening, the nation will reap $5.50 in benefits.”

NEWS - Ports & Transportation

GPA protects and maintains dozens of old growth oak trees

April 26, 2013 – The Georgia Ports Authority announced today a commitment to put dozens of historic trees located on GPA property under protective governance, now and into the future.

“These massive oaks located on GPA property are awe inspiring and have been here long before we were,” said GPA Executive Director Curtis Foltz. “Today, on National Arbor Day, the Georgia Ports Authority is making an official commitment to protect and preserve these natural and historic assets.”

About a dozen trees that are more than 200 years old are located on GPA’s Garden City Terminal. Of those, the two oldest are both estimated to be more than 360 years old.

Local arborist Shannon Baughman said the GPA’s sustainability effort protecting trees – including an avenue of oaks estimated to be more than 125 years old – is notable for its scope.

“It’s impressive to see so many trees of this age in one area,” Baughman said. “The oldest here are more than 100 years older than the celebrated Chandler Oak located in downtown Savannah.”

The two oldest trees are located at the Garden City Terminal off of GA 25. The oldest is 92 inches in diameter and is estimated to have taken root in 1645. The second oldest is 91 inches in diameter, and is estimated to have taken root in 1649. Baughman estimated each tree’s age based on its diameter.

GPA, one of only a few commercial areas in Savannah that hosts a large stand of mature oaks, maintains the trees with regular pruning and has had lightning protection installed on the oldest trees.

"Mature live oaks are very important to Savannah and our history,” Baughman said. “Promoting their health through proper care is essential. Protecting the trees from lightning strikes is an additional step to prolonging their lives."

Four trees, one more than 250 years old, located at the new Container Operations Building were preserved during the building process and the building was even repositioned to provide optimal growing conditions for the trees.

“Our mission is to grow our business in environmentally responsible ways,” said Foltz. “Protecting the tree canopy around the fourth busiest container port in the nation is just one project we’ve undertaken as part of our sustainability initiative.”

GPA Board Chairman Robert Jepson noted that while the GPA has tripled its container traffic over the past 10 years, it has also cut in half its emissions per container moved.

“This phenomenal business growth calls for proactive environmental strategies, and the Georgia Ports Authority will remain at the forefront of sustainable practices in the maritime industry,” Jepson said.

Find more information about GPA’s sustainability effort at GeorgiaPortsSustainability.com.

NEWS - Ports & Transportation

Designation brings total Delta sites to receive U.S. agency’s highest recognition for workplace safety to 15

March 25, 2013 – The U.S. Occupational Safety and Health Administration on Friday recognized Delta Air Lines’ (NYSE: DAL) Airport Customer Service and Technical Operations in Savannah as its newest Voluntary Protection Programs Star sites. Delta — the first major airline participant in the VPP program — now operates 15 airport and aircraft maintenance locations across the United States with the Star site designation. 

“We are very proud of our Savannah team for their unwavering commitment to Delta’s deepest core value — safety,” said Ken Hylander, senior vice president – Corporate Safety, Security and Compliance. “OSHA’s VPP Star status is a great validation of Delta’s culture of safety and working together.”

Delta’s Savannah operation met the multipoint safety and health analysis and successfully completed an intensive on-site inspection by OSHA staff, which included proactive measures to prevent fatalities, injuries and illnesses through a system focused on hazard prevention and control, worksite analysis, training, management commitment and employee involvement. 

The Savannah operation worked for more than a year to earn Star site status. 

Delta began participating in the VPP program in 2001 when its 2.7 million-square-feet Atlanta Technical Operations facility became the first aircraft maintenance base in the industry to earn Star site status. Other locations with Star status include additional facilities in Atlanta; Augusta, Ga.; Colorado Springs, Colo.; Columbus, Ohio; Washington, D.C.; Melbourne, Fla.; Jacksonville, Fla.; Dayton, Ohio; Ontario, Calif.; and St. Louis. Additionally, Delta wholly owned subsidiary DAL Global Services maintains Star status at Columbus, Ohio; Colorado Springs, Colo.; and Jacksonville, Fla.

OSHA VPP is an initiative designed to recognize workplaces with outstanding safety systems and performance. Less than one percent of the 10 million work sites in the United States share this distinction. In VPP management, employees and OSHA establish cooperative relationships at workplaces that have implemented a comprehensive safety and health management system and have achieved an exemplary record of occupational safety and health among their employees.

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World’s Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 319 destinations in 59 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground.