Portwatch Spring 2010

Channel-Deepening Project Begins!

It’s been a long road, paved with countless rallies, meetings, editorials, press conferences, budgetary discussions, debates, and grassroots efforts. But with a federal court decision on January 27, the way was cleared for the actual start of the Delaware River Channel-Deepening Project. The January decision didn’t announce the need for another study, or the possible start of the project, or any other kind of positive but heavily-qualified statement. It said that the U.S. Army Corps of Engineers could move from the routine maintenance dredging it was performing in a portion of the channel in the State of Delaware to actual channel-deepening operations, with the aim of deepening the Delaware River’s main channel from 40 to 45 feet. The Delaware River’s main channel passes through three states: Pennsylvania, New Jersey, and Delaware.

U.S. District Court Judge Sue L. Robinson, speaking on January 27 in Wilmington, Delaware, both rejected the notion that the Army Corps needed a Delaware state permit to proceed with the project, as well as other “states rights” issues opponents believed held sway over the channel, a designated federal waterway. Most significantly, she said, “Based on the volume of business passing through these ports, any loss in market share because the river cannot handle ships of a certain draft will harm the local economy. Congress has made the determination that it is in the public interest to proceed with the deepening project.”

In the course of her ruling, Judge Robinson noted that the industrial port system along the Delaware River supports about 75,000 jobs, generates billions of dollars in revenue and salaries, and contributes over $150 million in state and local taxes. Further, she noted that deepening the Delaware River to 45 feet was not appreciably different than the normal maintenance dredging that has regularly maintained the river’s 40-foot depth since World War II.

The ruling also rejected arguments that significant environment impacts would result from the deepening, noting that impacts from deepening operations “will be largely identical to impacts that have been occurring since 1973 with regular maintenance dredging”.

In a statement quoted widely in the media following Judge Robinson’s ruling, PRPA Chairman John H. Estey said, “This is great news for the tens of thousands of families whose livelihoods depend on Philadelphia-area ports and for the taxpayers who will reap the economic benefits of the deepening.”

Within days of the ruling, the U.S. Army Corps of Engineers switched from maintenance dredging operations to channel-deepening operations in the portion of the Delaware River channel known as “Reach C”, a major portion of the channel located in the state of Delaware. Judge Robinson advised the Corps to work closely with the states of Delaware, New Jersey, and Pennsylvania during future stages of the project.

The Delaware River Channel Deepening Project was conceived over 30 years ago and officially authorized by Congress over 20 years ago. In recent years, the Philadelphia Regional Port Authority became the local sponsor of the project, which will take about five years to complete. The project encompasses a 102.5 mile stretch of the Delaware River, from the Chesapeake Bay to Philadelphia’s Walt Whitman Bridge.

“Thanks to recent events, the Port of Philadelphia, and all our regional ports, will soon be able to welcome the biggest, most modern vessels in the trade today, as well as future vessels now being conceived and built,” said Mr. Estey. “Without this project, being undertaken as ports to the north and south of us are being deepened, too, or have already been deepened, we would quickly fall by the wayside and our business would simply go elsewhere.”

For the very latest news about the Delaware River Channel-Deepening project, please see PRPA’s web site, www.philaport.com, the specialized channel-deepening web site www.supportthedeepening.com, and future issues of this publication.

Philadelphia Regional Port Authority Welcomes Sea Star Line, LLC to Port of Philadelphia

John H. Estey, Esq., Chairman of the Philadelphia Regional Port Authority (PRPA) was pleased to announce on March 24 that Sea Star Line, LLC, a major carrier serving the US, Puerto Rico, and the Caribbean region, will begin calling PRPA’s Tioga Marine Terminal in Northeast Philadelphia beginning in April. Sea Star Line will initiate a weekly ship call beginning on Friday, April 23, and expects to bring a ship to Tioga Terminal every Friday after that. Sea Star will handle a variety of containerized cargoes, as well as roll on/roll off cargoes. Tioga Marine Terminal is operated by Delaware River Stevedores, Inc.

“This is great news for the Port of Philadelphia, and for one of our most efficient terminals,” said Chairman Estey. “Tioga Marine Terminal has two container cranes, a mobile harbor crane, ample space for containers, an experienced labor force, and so many other attributes. It’s a great fit for Sea Star Line.”

“To have fifty-two ships a year that we didn’t have before, that’s really saying something,” said PRPA Executive Director James T. McDermott, Jr. “Over the course of a year, those ships will provide thousands of ILA man-hours to our labor force, supporting and expanding the family-sustaining jobs that are so important to our operations. Indirect jobs, business revenues, state and local taxes, and many other economic spin-offs will also result.”

The Port will see many diverse, new cargoes as a result of Sea Star Line. A typical Sea Star vessel at the Port of Philadelphia will include cargoes such as consumer goods, chemicals, and machinery.

Sea Star Line President and Chief operating Officer Frank Peake extolled the virtues of the new service, noting that, “Tioga Marine Terminal is an ideal partnership because it provides ready access to highways and intermodal facilities, quick gate turns, on-site warehouse space, reefer plug availability, heavy-lift cranes, and ample space.”

Headquartered in Jacksonville, Florida, Sea Star Line offers cargo transportation services from North America to Puerto Rico and the Caribbean Islands. According to the company, Sea Star’s vessels are the most versatile in the trade, able to carry the widest range of unique and diverse cargoes. Company operations are certified ISO 9001, ISO 14001, meet Green Office standards, and were selected for the QMS Company of the Year Award. Sea Star recently received top honors as a recipient of the 2009 Logistics Management Quest for Quality Award in the Ocean Carrier segment.

PRPA will provide further information about Sea Star Line’s new service once it commences. Shippers who have an interest in this new service should contact PRPA’s Marketing Department at (215) 426-2600 at their convenience.

Finnish Paper Company M-real Selects Port of Philadelphia

On the heels of announcing a significant amount of new business at Tioga Marine Terminal, PRPA Chairman John Estey related another piece of excellent news on March 31, informing the port community that the northern European paper company M-real, based in Finland, had selected the Port of Philadelphia as its preferred US port of entry for its high quality paper products. Effective May 7, Wagenborg Shipping B.V., a major forest products carrier, will begin delivering M-real’s cargoes to PRPA’s Forest Products Distribution Center at Piers 78 & 80. The facility is operated by Penn Warehousing & Distribution Company, Inc.

“High-quality paper has long been one of our signature cargoes at the Port of Philadelphia,” said Chairman Estey on March 31. “So it’s especially appropriate that such a significant piece of new business for our port has now come from that industry.

The new cargo, which previously entered the US via the Port of Baltimore, will result in 18 to 24 new vessel calls per year at Piers 78 & 80, and about 150,000 metric tons of new cargo, according to projections. High-quality paper is shipped in heavy rolls in vessels designed especially for this sensitive cargo.

“The excellent reputation of Penn Warehousing & Distribution Company and its ILA/Teamster workforce, as well as the PRPA’s recent addition of a new warehouse designed for paper at nearby Pier 74, were major factors in M-real’s decision to relocate to Philadelphia,” said James T. McDermott, Jr., PRPA’s Executive Director. “This is great news for the port of Philadelphia, and we intend to provide a high level of service and support for M-real.”

John Brown, president of Penn Warehousing, welcomed the news. “We are delighted by M-real’s decision to come to the Port of Philadelphia,” he said. “Our labor force is specially trained for this work, and our facilities are designed to the safety and integrity of the cargo. We look forward to a productive working relationship with M-real.”

PRPA will provide further information about the new M-Real cargoes moving through the Port of Philadelphia once vessel calls commence in May.

Spotlight on Rickmers-Linie

Hamburg-based Rickmers-Linie, often referred to as simply “Rickmers Line” here in the United States, is one of the world’s leading specialists in the global sea transportation of project and heavy-lift cargo. With 175 years to its name, the company now provides a worldwide network of liner services for the transportation of breakbulk, project and individual heavy lift pieces, such as transformers, generators, railway locomotives, pleasure vessels and yachts. Rickmers currently owns or long-term charters 17 specialist vessels, spot charters others and has a novel chartering arrangement with the Japanese shipping company Eastern Car Liner Ltd. In 2006, the company established its own Japanese subsidiary, Rickmers (Japan) Inc. In November 2007 a subsidiary was also established in Korea under the Name Rickmers (Korea) Inc.

The German liner company offers an innovative Round-the-World “Pearl String” Service, with a unique concept offering fortnightly sailings, fast transit times and reliable schedules. With the Pearl String Service, Rickmers has revolutionized the shipment of heavy-lift and project cargoes, enabling customers to plan their cargo flows more easily.

The base ports served every 14 days by the service are Hamburg, Antwerp, Genoa, Singapore, Bangkok, Jakarta, Hong Kong, Shanghai, Dalian, Xingang, Qingdao, Masan, Kobe, Yokohama, New Orleans, Houston, Philadelphia, and back to Hamburg, but many other ports such as Ho Chi Minh City and Kaohsiung are called quite regularly as well. In addition, Rickmers offers a link between Europe and Australia, the Pearl String ships connecting in Singapore or, alternatively Shanghai with sailings operated by AAL/PAS. Here in Philadelphia, Rickmers’ vessels call at PRPA’s Tioga Marine Terminal, operated by Delaware River Stevedores.

The Pearl String Service is served by nine new identical 30,000dwt purpose-built Superflex Heavy Multi-Purpose Container (MPC) ships, which were designed primarily with project cargo in mind. The vessels are equipped with four large cranes, the two heaviest of which can be twinned for a lifting capacity of up to 640 tons. The main hatches are 32 meters in length to allow long loads to be accommodated below deck. Meanwhile, adjustable tweendecks allow for variations in cargo height. Furthermore, a dehumidifying system controls the air in all holds, ensuring protection from condensation for all types of cargo.

A regular liner service is also offered from Europe to the Middle East and the Indian subcontinent. Since older vessels operated in this service have been sold, the voyages to ME/India are currently being performed by charter vessels, until the company takes delivery of newbuildings earmarked for this service.

In cooperation with carrier ECL of Japan, Rickmers-Linie is operating a transpacific service, offering westbound departures from the US East Coast to Northern China, Korea and Japan.

The four 11,000 dwt vessels involved in this cooperation, Fortune Epoch, Reina Rosa, Millennium Falcon and Del Sol, come with heavy-lift gear capable of lifting loads of up to 120 tons. They were built between 1995 and 1998 and are equipped with RoRo ramps. Regular loading ports within the westbound service include Philadelphia, Charleston and Houston, with discharge ports Busan, Xingang, Qingdao, Shanghai, and Yokohama.

For added capacity in the transpacific trades, Rickmers-Linie has chartered the Sophie Rickmers and the Marie Rickmers. These 35,000 dwt conbulk vessels are regularly shuttling across the Pacific Ocean and connect Northern China, South Korea and Japan with Gulf and East Coast ports in the US.

In 2008, Rickmers-Linie started to invest in terminal facilities specializing in the handling of breakbulk, heavy-lift and project cargoes. In Antwerp, a joint-venture was formed with DP World and Conti-Lines, called DP World Breakbulk NV. Rickmers-Linie has a 20% share in this joint-venture. In Hamburg, Rickmers-Linie purchased a 25% stake in Wallmann & Co. and in Genoa, a stake in Terminal San Giorgio. These investments are part of a strategy to safeguard know-how and access to handling facilities for breakbulk and project cargoes. All this enables Rickmers-Linie to offer value added services such as packing, storage and other related services at the terminal level abroad.

This past summer, Rickmers Group celebrated 175 years of Rickmers’ involvement in the world of shipping. The anniversary was marked by the publication of the 175 years chronicle, “Rickmers at 175”. Those interested in obtaining a copy of the publication can visit the Rickmers web site at www.rickmers-linie.de, which is also a good place to learn more about the company’s current operations.

Please join the Chilean Earthquake Relief Effort! A message from the Chilean & American Chamber of Commerce

Dear friends of the Chilean and American Chamber of Commerce:

The 8.8 magnitude earthquake that struck the southern and central region of Chile early on Saturday, February 27 has displaced 1.5 million people and tragically killed hundreds more. The Chilean and American Chamber of Commerce, on behalf of its staff, Board of Directors, and members, offers our sincerest condolences and solidarity to those affected by the earthquake and all the people of Chile.

The Chilean Exporters Association (ASOEX) has reported that early indicators suggest that large parts of the fruit industry have emerged with minimal damage and short-term prospects for continued trade are good. For updates about unanticipated disruptions, please visit www.chileanfreshfruit.com.

We will be working with the Embassy and Consulate of Chile to lend assistance in this time of need and encourage you to support the active relief efforts currently underway in Chile.

To make a donation:

Contact the American Red Cross at 1-800-HELP NOW or 1-800-257-7575 (if you wish to speak to someone in Spanish), or mail your donation to the American Red Cross at P.O. Box 37243, Washington, D.C. 20013. A secure online payment can also be made at www.redcross.org.

To identify other active relief organizations, visit http://www.chile-usa.org/Howtohelp.htm.

Sincerely,

The Chilean and American Chamber of Commerce of Greater Philadelphia

Main headquarters:
200 South Broad Street, Suite 700
Philadelphia, PA 19102
Main phone: (215) 790-3627
Main fax: (215) 790-3600
General e-mail: cacc@greaterphilachamber.com
Visit us at www.caccgp.com

From the Desk of the Executive Director: Here’s a Priority for Everyone in Our Industry

Along with other port directors around the country, PRPA Executive Director James T. McDermott, Jr. was recently invited by the cargo logistics magazine “The Journal of Commerce” to contribute a short essay that would answer the following question: “What do you think will be a major challenge facing the port industry in the immediate future?” Mr. McDermott responded to the invitation and his essay appeared in the January 2010 edition of the magazine. We thought we’d share it with “PortWatch” readers.

As ports address challenges, one particular initiative becomes more important, more central to our operations, every day. It’s an initiative that was once a positive thing that we should do and is now a critical function that we must do- that is, addressing environmental concerns, more popularly known as “green port” initiatives.

Cleaner water, cleaner emissions, less congestion and conservation of resources are now regularly on the radar of the general public, not just environmentalists. Regular citizens want their corporate citizens to behave and operate responsibly. Economic activity and the jobs that activity creates are no longer their own justification. As we see more and more, if business activity can’t be conducted responsibly, communities are simply willing to do without it.

This doesn’t have to be a problem for America’s ports. Creating and nurturing trust with the communities surrounding our ports can only help our industry in the long run. Do you want to build a new terminal? A new warehouse? A new rail transfer facility? Deepen your shipping channel? Tell your community, in an enthusiastic manner, why you think it’s important (actually, on that last point, you already know that you have your work cut out for you).

More importantly, show the families and community organizations in your area that the environmental impact of your project is just as important to your port as the project itself, demonstrating that economic activity and a clean environment are not mutually exclusive goals. Peaceful coexistence between these goals may once have been a challenge, but new technologies and approaches are introduced almost every day that make it not only possible, but efficient and economical.

Tell your communities how you’re using these approaches to protect the environment even as you’re creating new jobs.

Do the work in keeping up with green port issues. Implement new green technologies, and publicize your efforts. Don’t put yourself in a position where you think you’re announcing a vital new project or piece of business for your region, only to have your region respond with, at best, a grim silence.

**Newly-built Lisbon Trader Delivers Huge Cocoa Bean Cargo to Pier 84**

The PRPA Marketing Department and members of the port community recently had the happy task of acknowledging not only a vessel’s maiden visit to a Port of Philadelphia cargo facility, but also its maiden voyage on the ocean after being built. This occurred on Wednesday, January 13, when port officials welcomed the M/V Lisbon Trader to PRPA’s Pier 84 cocoa bean facility.

The newly-built vessel was in port to deliver 18,000 metric tons of cocoa beans from Indonesia, among the largest cocoa cargoes to arrive at Pier 84 in recent years. Pier 84 is operated by Dependable Distribution Services, which has decades of experience in the world cocoa trade.

Participating in a ceremony aboard the vessel that day were PRPA Director of Marketing Sean Mahoney; Dependable Distribution Services President Harvey Weiner; Captain Dache Iulian, Master of the Lisbon Trader; and other members of the port community.

The vessel is owned by the Hamburg-based company Schiffahrts and was chartered by Unicargo Transport, another German company. The two companies hope to work with Dependable Distribution Services to arrange future cocoa shipments to Philadelphia.

“It’s always a pleasure to welcome a huge cocoa bean cargo to Pier 84,” said Mr. Mahoney that day, “but it’s doubly exciting when it’s a brand new vessel doing the honors. PRPA and its terminal operator pride ourselves on servicing, in an efficient and economical manner, the newest, most modern vessels entering the world’s trade lanes. We’ll do our best to make this the start of a long, productive relationship for all parties involved.”

Mediterranean Shipping Company Extends the Port’s Reach to Europe and Beyond

Several months after reestablishing direct container service between the Port of Philadelphia and ports in Europe and the Mediterranean region, the connection continues to be a major asset of PRPA’s largest facility, the Packer Avenue Marine Terminal. Since beginning in October of last year, Mediterranean Shipping Company’s direct weekly service to Europe and the Med has helped to keep a very busy facility even busier.

The Swiss-based Mediterranean Shipping Company, or MSC, was already a mainstay at the Port of Philadelphia prior to initiating the new service, as it regularly moved (and continues to move) cargo between the Port of Philadelphia and ports on the west coast of South America. MSC is the second-largest containership operator in the world.

“This new service is great news for our Port and the entire region,” said Thomas J. Holt, Jr., President of Greenwich Terminals LLC, when the new European service was announced. Greenwich operates PRPA’s Packer Avenue Marine Terminal.

Now, as we move well into 2010, the service continues to thrive, regularly moving cargo between major U.S. and European ports including Boston, New York, Philadelphia, Baltimore, Norfolk, Bremerhaven, Felixstowe, Antwerp, Le Havre and, via additional connections, Hamburg, Rotterdam, and several Mediterranean ports.

“In today’s challenging economy, it’s great for the Port to have a big selling point like MSC’s direct service to Europe,” said PRPA Director of Marketing Sean Mahoney. “And we’re doing our best to get the word out about it. For example, soon after the service started, MSC and PRPA conducted a comprehensive day-long workshop to introduce the service to our regional supply chain community. About 50 people attended and they were eager to learn about the new service. That workshop, along with an aggressive sales push by our marketing staff and the management team at Greenwich Terminals in the weeks and months that followed, has paid off. With the general economic downturn, we’ve certainly had some challenging days, but we’ve also generated a lot of new business. We continue to have high hopes for this service.”

Shippers interested in this exciting new service should call the PRPA Marketing Department at (215) 426-2600 and ask to speak to a PRPA marketing representative.

PRPA Hosts “Trade With Canada” Event

Activities by country-specific chambers of commerce are no strangers to our region. For example, the Chilean and American Chamber of Commerce has been active in the Philadelphia region for many years; so has the German-American Chamber. But Canada, the most important trading partner of the USA and the Delaware Valley, has never had an active chamber of commerce in our region. Until now, that is.

On Wednesday, February 24, the Philadelphia Regional Port Authority (PRPA) hosted the second event of the new Canadian American Chamber of Commerce Mid-Atlantic (CACMA). The new Chamber’s “Trade with Canada Networking Breakfast and Panel Discussion”, held at PRPA’s main headquarters, featured three speakers knowledgeable about doing business with the USA’s neighbor to the north.

“Given Canada’s importance to our region, we knew we needed a Chamber to represent and promote our trading interests,” said CACMA Board Member Brian Propp that day. “And based on today’s strong turnout, it’s evident there is a lot of interest in an active Chamber of Commerce to support the business relationships between our two nations.” Mr. Propp, a former player for the Philadelphia Flyers hockey franchise, is Vice President of The Judge Group, which specializes in technology consulting, corporate staffing and training, and audio/visual presentations.

The expert panel consisted of David Marshall, Canada’s Senior Trade Commissioner, and Consul in Philadelphia; Tony Ceballos, Director of the US Export Assistance Center in Philadelphia (part of the US Department of Commerce); and Brian Purdy, a senior marketing official for Canadian Pacific Railway. PRPA’s Senior Marketing Representative Dominic O’Brien moderated the panel.

Following a networking breakfast, Canadian Consul David Marshall gave an overview of both the US-Canada relationship and the Greater Philadelphia region’s overall economic relationship with Canada. He pointed out that over 300,000 Pennsylvania jobs are dependent on bi-lateral ties with Canada, either through trade or as a result of Canadian investment throughout the Commonwealth of Pennsylvania. Marshall noted that Canada is the #1 trading partner for Pennsylvania and New Jersey, and the #2 trading partner for Delaware. The Canadian Consulate in Philadelphia is staffed by professional diplomats and commercial officers from Canada, and offers advice, contacts, and support to companies in the mid-Atlantic region that conduct business with Canada.

Tony Ceballos, Director of Philadelphia’s US Export Assistance Center, spoke next. Mr. Ceballos’ office helps local businesses export goods and services to Canada. He reported that the US Commercial Service, part of the US Department of Commerce, covers all of Canada’s provinces with offices in Calgary, Montreal, Ottawa, Toronto, and Vancouver. He listed the best prospects for export sales to Canada, which include medical devices, safety and security equipment, agricultural machinery, and consumer electronics. Finally, Mr. Ceballos talked about the upcoming “RepCan Business Matchmaking Event”, and the Global Petroleum Show, both of which will take place in Canada and will be sponsored by the US Commercial Service. He urged Philadelphia area businesses to consider participating in these events.

Next, Brian Purdy of Canadian Pacific Railway (CP) explained CP’s role in supporting the US/Canada trade relationship. "CP is one of Canada's two Class 1 railroads linking Canada and the U.S., providing transcontinental service,” Mr. Purdy said. He pointed out the following facts: CP provides 3rd day delivery from Philadelphia to Montreal and Toronto; CP owns over 15,400 miles of track in Canada and the USA, and handles 2.4 million car loads each year; Philadelphia is CP’s southernmost rail head; and CP offers guaranteed refrigerated service, which is of particular benefit to a major perishables hub like the Port of Philadelphia.

Matt Wright of 5K Logistics was pleased with the event. “Our full service logistics company does a lot of business with Canada, he said. “In fact, we regularly move shipments to the Philadelphia region from Ontario. We look forward to supporting the new Chamber.”

CACMA’s Board of Directors includes Scot DeCristofaro representing the town of Gander in Newfoundland, E. Martin Heldring of TD Bank, Frank Jacketti of Purolator, Kelly Johnston of Campbell Soup Company, Dominic O’Brien of the PRPA, and Brian Propp of the Judge Group. The Chamber’s Chairman is Steven Richman of the law firm of Duane Morris.

CACMA’s first event was a luncheon featuring the new Canadian Ambassador to the USA, Gary Doer. His visit to Philadelphia was his first official visit outside Washington, DC. The Chamber will do a seminar on the financial and legal issues of doing business with Canada later in the year; possibly an event at a Flyer’s hockey game or a Toronto Blue Jays/Philadelphia Phillies baseball game; and a holiday party.

“There’s a lot of exciting things our new Chamber can do, said CACMA Board Member Frank Jacketti. “With a relationship as big as the one between our region and Canada, the possibilities are endless.” Mr. Jacketti is the Philadelphia Branch Manager for Purolator, the largest courier company in Canada, and an important freight forwarder.

For more information on the Canadian American Chamber of Commerce Mid-Atlantic, please visit http://cacmachamber.com.

Special thanks to PRPA’s Dominic O’Brien for filing the above report, as well as the related article below.

Philadelphia: “Canada’s Southernmost Port”

Americans learned many interesting facts about the USA’s neighbor to the north during the recent Winter Olympics in Vancouver, including the many cultural and historical ties between our two countries. Just as important, however, is our strong commercial relationship. Here are a few things you may not have known:

Canada is the #1 trade partner of the United States. It is also the #1 trade partner of both the Commonwealth of Pennsylvania and the State of New Jersey, and the #2 trade partner of Delaware. Additionally, it is the largest foreign direct investor in our region.

Canada is an integral partner with the Delaware River port community. Much of the fruit, meat, steel, and other commodities that regularly come into the Port of Philadelphia are in turn directly transported north into Canada, by rail and truck. Furthermore, during the winter months when the St. Lawrence Seaway freezes over, Greater Philadelphia becomes an even more critical gateway to the Canadian marketplace, as goods that normally arrive via ship in Canada are also sent to the Port of Philadelphia, which is open year-round, for eventual shipment north.

At any marine terminal on the Delaware River, you are likely to see trucks with license plates from Ontario, Quebec, and occasionally even from the far west Canadian provinces.

An essential link between the Delaware Valley and Canada is the Canadian Pacific Railway, a class-1 railroads that links Canada and the U.S. CP provides transcontinental service and its southern-most rail head is located in Philadelphia, where it utilizes the CSX Greenwich Yard in South Philadelphia as its intermodal base. Because this facility is located directly across the street from the PRPA’s Packer Avenue Marine Terminal, thousands of containers each year move efficiently from ship to rail, then right to the important Canadian marketplace. CP provides third-day delivery to Montreal and Toronto. Because of all the perishable cargoes that come into the Port of Philadelphia, CP offers a guaranteed refrigerated service on its intermodal trains. Breakbulk, or “conventional rail” operations, takes place at the CP facility in the Philadelphia Naval Business Center (the former Philadelphia Navy Yard).

Due to CP’s importance in the region, Philadelphia is often called “Canada’s Southernmost Port.” Paper rolls arriving at Piers 78-80; cocoa beans arriving at Pier 84, and steel arriving at Tioga Marine Terminal and Packer Avenue Marine Terminal all travel on CP to points throughout the northeastern USA and Canada. CP also services a variety of bulk cargoes moving out from our region.

Leo Holt Honored

PRPA sends it congratulations to Leo Holt, President of Holt Logistics Corporation, for being named the recipient of the Chilean and American Chamber of Commerce’s Twelfth Annual Friend of Chile Award on November 19. Leo and his family have been instrumental to the success of the Packer Avenue Marine Terminal and international business at the Port of Philadelphia in general. PRPA was extremely pleased to see its friend Leo Holt honored by Chilean/American trade, a critical component of the Port of Philadelphia.

PRPA Greets Irish Naval Vessel

The Irish Naval Service vessel “Le Eithne” visited Philadelphia this past July, and PRPA was pleased to greet the vessel, its captain, Commander David Barry, and its crew during the vessel’s stay at Penn’s Landing on the Delaware River waterfront. This was the first visit to Philadelphia for the vessel, considered the flagship of Ireland’s Naval Service. Senior staff members Bill McLaughlin, Don Brennan, and Joe Menta represented PRPA at an evening event aboard the vessel, accompanying other stalwart members of the Philadelphia port community including Dennis Rochford, President of the Maritime Exchange of the Delaware River and Bay and John Reynolds of Atlantic Logistics.

Michael Gabor Retires

PRPA wishes a happy and productive retirement for its friend Michael Gabor, who recently retired from Urban Engineers, Inc. after a long career with the engineering firm so often involved in maritime projects at the Port of Philadelphia. Mike joined Urban in 1992 after a successful 25-year engineering and contracting career, immediately using his vast maritime, highway, and bridge experience to take on a comprehensive array of projects at Urban. In his 17 years with Urban Engineers, he made marine engineering a specialty of the firm, and himself oversaw hundreds of completed projects. Upon retiring in January 2010, Mike closed out an amazing 49-year career. We’ll truly miss Mike, but genuinely salute him as he begins an exciting new phase of his life!

German Chamber Celebrates Milestone

The German-American Chamber of Commerce of Philadelphia recently celebrated its 20th year of active service with a gala event at Philadelphia’s Union League on November 20. Dinner, dancing, and a silent auction (which included a limited edition PRPA port print up for bid) were highlights of the evening, which celebrated “20 Years of Transatlantic Partnership in Trade and Commerce”. PRPA’s Senior Marketing Representative Dominic O’Brien has been PRPA’s main liaison to the German-American Chamber in recent years. PRPA congratulates the German-American Chamber of Commerce and looks forward to many more years of productive association.

PRPA and Panama Sign Historic Agreement

As briefly reported in our last issue, PRPA and the Panama Canal Authority (ACP) signed a Memorandum of Understanding on Wednesday, June 10, 2009 to encourage economic growth and commercial activity between the two entities. Signed by PRPA Chairman John H. Estey and ACP Administrator/CEO Alberto Aleman Zubieta, the MOU will help generate new business via a number of initiatives associated with strengthening and promoting all-water transportation between Asia and the U.S. East Coast via the Panama Canal.

Under the agreement, which is renewable after two years, PRPA and ACP will conduct joint activities and share best practices. Specific areas of focus will include marketing, research and data interchange, technical advancements, and personnel training programs.

“The memorandum of Understanding with the Philadelphia Regional Port Authority comes at a critical time in the world economy,” said Mr. Aleman. “This agreement highlights our shared goals of improving customer service and increasing service offerings and business opportunities. We look forward to working together for continued trade between Latin America, Asia, and the United States.”

In 2008, PRPA cargo transiting the Panama Canal (moving both to and from Philadelphia) totaled 1,906,343 long tons, representing about half of all cargo handled by PRPA facilities. That figure is up nearly 17,000 long tons from the year before.

“This agreement is especially appropriate at this time,” said Mr. Estey. “Both the Port of Philadelphia and the Panama Canal Authority are working on major projects that will allow us to welcome and service the world’s largest vessels. Our 45-foot channel deepening project and the improvements being made to the Panama Canal will together encourage the world’s largest, most modern vessels to use both the Panama Canal and the Port of Philadelphia in the service of their cargoes. We’re both going in a great direction and this agreement will only strengthen our alliance.”

Additional information about the Memorandum of Understanding, including the exact text of the document, can be found at www.philaport.com.

Port Community Mourns Loss of Dennis Latina

PRPA and the rest of the Delaware River maritime community lost a true friend on October 23 when Dennis Latina, Vice President of Delaware River Stevedores, Inc., passed away, a day after celebrating his 60th birthday.

Over the years, Mr. Latina was a fixture on the Delaware River waterfront, both at the Port of Philadelphia and the Port of Wilmington, Delaware. He was instrumental in bringing about numerous efficiencies at the Tioga Marine Terminal, home of the Port of Philadelphia’s critical Chilean fruit operation, as well as acting as a seasoned representative around the world for our regional ports. He was also widely known as a true gentleman who made time for everyone’s concerns, through his service on numerous boards and committees, or taking time during the course of his day to listen to the needs of a single longshoreman or crane operator.

“I’ll truly miss Dennis Latina,” said PRPA executive Director James T. McDermott, Jr. “I had the privilege of enjoying dinner with Dennis shortly before he died, and I was again reminded of what a quality person he was. Dennis was a sharp thinker with great business sense, but more importantly a truly caring human being. We’ve lost a lot with his passing, and we’ll always remember him.”

Upcoming WTA Events

As a proud, active member of the World Trade Association of Philadelphia (WTA), PRPA is pleased to publicize the following upcoming WTA events: the organization’s Annual Golf Outing will be held at the Little Mill Country Club in Marlton, New Jersey on Monday, June 14; and its Annual Banquet will be held at the Cescaphe Ballroom in the Northern liberties section of Philadelphia on Wednesday, September 15. For more information about these two sure-to-be-terrific events, visit the WTA web site at www.WTAPhila.com or give WTA Executive Administrator Deborah Ingravallo a call at (856) 642-3957. Let’s have a great turnout at both of these events!

New 667,000 Square Foot Produce Center a Step Closer to Reality

With the final piece of structural steel applied to the superstructure of the new Philadelphia Produce Center on Wednesday, October 14, the end is finally in sight: Philadelphia will soon have a bustling new regional produce market whose main centerpiece will be the largest indoor freezer in the world, a facility that will serve hundreds of regional produce vendors and retain for the city the famous produce operation.

Presiding over the official “Topping Off” ceremony at the site of the new facility was Philadelphia Regional Port Authority (PRPA) Chairman John H. Estey, Esq., who welcomed many supporters of the project to the dais, including Philadelphia Mayor Michael R. Nutter, Philadelphia City Council President Anna Verna, PA State Senator Lawrence Farnese, and PRPA Executive Director James T. McDermott, Jr. Also participating in the ceremony were those integrally involved in the project, including Sonny DeCrecchio, Executive Director of the Philadelphia Regional Produce Market and real estate developer Brian O’Neill of O’Neill Properties Group.

PRPA will be the landlord of the new Philadelphia Produce Center, PRPA’s first project of this scale outside the port district. PRPA, an independent agency of the Commonwealth of Pennsylvania, worked with other agencies of the Commonwealth, the City of Philadelphia, various financial firms, and the city’s produce industry interests to bring about the financing, construction, and leasing agreements for the new facility.

A diverse variety of individuals and organizations were thanked from the podium during the noon outdoor event, from the financial firm AIG (which came through with a loan at the height of last year’s financial crisis) to PRPA Chief Counsel Gregory Iannarelli, who oversaw numerous contractual and financial issues as they moved between several public and private interests during both the pre-construction and construction phases. Mayor Nutter also made it a point to acknowledge and thank Philadelphia’s expert union labor force for its skilled and efficient work.

Looking at the half-completed structure behind him on October 14, developer Brian O’Neill said from the podium, “If this facility was turned on its side and stood straight up, it would be taller than the Empire State Building. This is going to be the largest freezer unit in the world, and it’s here in Philadelphia. We all have much to be proud of today.”

PRPA is particularly pleased to be involved with this project, as the Port of Philadelphia is one of the country’s prime movers of perishable products, including winter fruit from Chile and bananas from Costa Rica. The current Produce Center in South Philadelphia has been a critical component of the port’s perishables operation for more than thirty years and the new center in Southwest Philadelphia will continue in that tradition, even more so due to the closer working relationship it will have with PRPA.

For more information about the Philadelphia Regional Produce Center, including news of its upcoming grand opening, see our next issue of this publication or check in at www.philaport.com.

AAPA Member Ports Testify On Crumbling Infrastructure

PRPA is pleased to share the following update on a key port issue, prepared by the American Association of Port Authorities (AAPA). PRPA is an active member of AAPA.

Members of the American Association of Port Authorities (AAPA) testified on Wednesday, March 17 at a United States House Transportation Appropriations Subcommittee hearing that congestion on our nation's highways is costing Americans billions of dollars in wasted fuel and time. They emphasized that congestion caused by inadequate road infrastructure and inefficient connectivity in the face of growing trade volumes has a huge impact on our ability to move goods into and out of the United States.

America's seaports are the critical link for access to the global marketplace and therefore depend on an efficient highway transportation system to allow U.S. farmers and manufacturers to sell their goods outside of the United States. According to AAPA President Kurt Nagle, "Improving access to seaport facilities is critical for the efficient movement of cargo, for reducing traffic congestion and emissions, and overall quality of life."

If the U.S. is to meet trade demands and address goals like the Obama Administration's initiative to double exports in the next five years, there must be a significant federal investment in freight transportation infrastructure, including connections to seaports, to make this a reality. Exports such as Midwest soybeans, Northwest wheat and Eastern coal, depend on our nation's seaports to reach their markets.

AAPA has been working with key policymakers to pursue a comprehensive platform of priorities for surface transportation reauthorization that will address intermodal connections and support the growing demands of international trade. As part of these efforts, we are pleased to have Congressman James Oberstar (D-MN), chairman of the House Transportation and Infrastructure Committee, provide the keynote luncheon address, and speaker Larry L. "Butch" Brown, chairman of the American Association of State Highway and Transportation Officials, participate in AAPA's Spring Conference in Washington D.C.

We are also delighted that AAPA members have been asked to testify at a Senate Finance Subcommittee hearing on the issue of congestion around seaports and capacity constraints on U.S. exports in the coming week.

Founded in 1912, AAPA today represents 160 of the leading seaport authorities in the United States, Canada, Latin America and the Caribbean and more than 300 sustaining and associate members, firms and individuals with an interest in seaports. As a critical link for access to the global marketplace, each year, Western Hemisphere seaports generate trillions of dollars of economic activity, support the employment of millions of people and, in 2008, imported and exported more than 7.8 billion tons of cargo, valued at $8.6 trillion, including food, clothing, medicine, fuel and building materials, as well as consumer electronics and toys. The volume of cargo shipped by water is expected to dramatically increase by 2020 and the number of passengers traveling through our seaports will continue to grow. To meet these demands, the AAPA and its members are committed to keeping seaports navigable, secure and sustainable.

March Sees Yet Another Huge Cocoa Bean Cargo

On the heels of the visit of the M/V Lisbon Trader in January (see article on page __), PRPA’s Pier 84 cocoa bean handling facility happily welcomed another cocoa vessel on March 18, one carrying even more cargo than the record-size January load.

On Thursday, March 18, PRPA officials and other members of the port community officially welcomed the m/v Warnow Star to Pier 84, which is operated by Dependable Distribution Services. Like the m/v Lisbon Trader, the Warnow Star was a brand-new vessel making its maiden call to the facility. The Warnow Star carried 18,250 metric tons of cocoa beans, destined for grinders and processors throughout our region.

Like the Lisbon Trader, the Warnow Star is owned by the Hamburg-based company Schiffahrts and was chartered by Unicargo Transport, another German company. The two companies hope to work with Dependable Distribution Services to arrange future cocoa shipments to Philadelphia.

During the course of a reception held aboard the vessel’s bridge that day, PRPA was pleased to present gifts to both the master of the vessel, Captain Livio Petricic, and to representatives of Unicargo, the vessel’s charterer.

PRPA Welcomes Two New Board Members

PRPA is pleased to announce the recent appointment of two new members to its Board of Directors. Philadelphia attorney Rhonda Hill Wilson was appointed to the PRPA Board on September 18, 2009, by Pennsylvania State Senator Robert J. Mellow, in his capacity as Senate Minority Leader. On March 9, 2010, Captain James R. Roche, President of the Pilots Association for the Bay and River Delaware, was appointed to the PRPA Board by Pennsylvania Lieutenant Governor Joseph B. Scarnati, III, in his capacity as President Pro Tempore of the Pennsylvania State Senate.

Rhonda Hill Wilson has been an accomplished personal injury lawyer for nearly three decades, licensed to practice law in Pennsylvania and New Jersey. She started her own firm in 1994, and since 1993 has also hosted a variety of radio programs covering political, legal, and social issues.

Captain James R. Roche is a longtime river pilot on the Delaware River, spending many years safely docking foreign cargo ships at port facilities in Pennsylvania, New Jersey, and Delaware. Last year, Captain Roche was elected President of the Pilots Association by his fellow river pilots.

“I welcome both Rhonda Hill Wilson and Jim Roche to the Philadelphia Regional Port Authority Board of Directors,” said PRPA Chairman John H. Estey, Esq. “It will be a pleasure working with them both in and out of the board room as we address our projects and challenges.”

Navy League Thanks PRPA

The Delaware River Port Authority’s Francesca O’Brien, acting in her capacity as President of the Philadelphia Council of the Navy League, recently presented a token of her organization’s appreciation to PRPA for its ongoing efforts in assisting the crews of U.S. Naval vessels visiting Philadelphia. Specifically, at PRPA’s February 17 board meeting, Ms. O’Brien presented a plaque from the USS Wayne E. Meyer, the Navy’s newest warship, to PRPA’s Bill Godfrey and PRPA Chairman John Estey. During the vessel’s recent stay in Philadelphia, PRPA assisted the crew with transportation to events at schools and hospitals throughout the region. Mr. Godfrey, PRPA’s on-staff automobile mechanic, was especially helpful, driving crew members to their events in the PRPA bus, and acting as a general tour guide. Thanks for all your help, Bill!

Port Hosts “Dinner: Impossible”

As host of the Food Channel’s “Dinner: Impossible” program, master chef Robert Irvine serves creative, gourmet dishes for small groups and large gatherings, all with little more than a moment’s notice and using only foods available at hand. Chef Irvine faced one of the biggest challenges of his career on Monday, November 2, when he was charged with feeding 150 longshoremen at PRPA’s Packer Avenue Marine Terminal, using only the ingredients of the shipping containers on the terminal that day. In the end, he produced a variety of tasty, exotic recipes- including ostrich and peacock dishes!- that impressed hungry workers more used to basic meat-and-potatoes fare. Check your listings for an encore presentation of this exciting episode, which still airs occasionally on the Food Channel. Special thanks to terminal operator Holt Logistics, for facilitating this special treat for the Port’s top-notch labor force!

Maintenance Team Heads Out

Following a long, hard winter, the PRPA Maintenance Department hit the streets at the first sign of cooperative weather to make some needed repairs around the Port. For example, a handful of Maintenance Department workers replaced a bollard at Pier 82 in South Philadelphia in Mid-March. Emphasizing indoor repairs during the winter months, PRPA’s Maintenance Department members are regularly spotted outdoors once the weather breaks, fixing roofs, laying concrete and asphalt, and making general repairs. PRPA appreciates your hard work, guys!

Piers 122 and 124 Demolition Project Completed

Seen at Piers 122 and 124 this past summer were great piles of scrap metal and wood from the demolition of the two South Philadelphia facilities. Commencing in summer 2009 and completed this past March, the demolition project dismantled all the old, rusted equipment and old railroad ties that were part of the coal and ore processing operation at the two piers in years past. PRPA engaged the firm Terrasan Environmental Solutions, Inc. to undertake the project. With the two piers now cleared of hundreds of tons of metal and wood, it will now be substantially easier to incorporate them into future port development projects, including PRPA’s proposed Southport terminal. PRPA acquired the long-unused piers from railroad interests in August of 2007.

Fruit Industry Faces Tragedy and Challenges

As this issue was being prepared for publication, twin developments worked together to cast a pallor over an otherwise healthy Chilean fruit season at the Port of Philadelphia. The recent earthquake in Chile, coupled with the U.S. Department of Agriculture’s declining of the subsequent request by PRPA and Chilean fruit industry officials to extend the Marketing Order for Chilean agricultural products, will result in several Chilean fruit vessels not delivering their intended cargoes to the Port of Philadelphia.

An extension of the Marketing Order, specifically Table Grape Import Regulation No. 4, which governs quality standards and in effect establishes the start and end of the imported fruit season, would have given the industry time to recover from the effects of the earthquake and assemble its final shipments to the Port of Philadelphia.

A full report on the 2009/10 winter fruit season at the Port of Philadelphia, including a final tally on how much these late-season developments impacted the season, will appear in our next issue.

Another Army Corps Project

In addition to the current Delaware River Channel-Deepening Project, the Philadelphia district of the U.S. Army Corps of Engineers is involved with a variety of other projects throughout our region, including a beach nourishment project in Ocean City, New Jersey. The beach nourishment project aims to replenish beach area lost over the years to tides and erosion. Sand for the project is being sourced from pre-approved “borrow sites’ out in the ocean.

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