Container shipping analyst Lars Jensen, the principal at Copenhagen-based Vespucci Maritime Consulting, warned that tensions between Russia and the Ukraine could spill out into cyberattacks on critical infrastructure, including ports.

Jensen warned the element of risk has risen drastically in the last weeks. “I cannot stress enough how seriously this should be taken.”

Jensen was addressing the Propeller Club of Northern California (PCNC) on February 8th.

Recalling the 2017 cyberattack that shut down the ocean carrier Maersk, Jensen said:

“Remember that in 2017 Maersk was brought down by a cyberattack. They were completely down for a week, and it took several weeks to get back up and running. Maersk was purely collateral damage of a Russian-backed cyberattack on the Ukraine. Several thousand companies got hit on that attack.”

Today the risk of damage could be far worse: “Fast forward to the situation right now with Russia on one side and NATO and the Ukraine on the other… In the last few weeks, authorities in Britain, Canada and the United States have warned that this is a significant risk against critical infrastructure. So, this threat has to be taken very seriously. U.K. authorities are reporting cyber activities that are very similar to those that preceded the cyberattacks of 2017.”

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The fourth Storms, Flooding and Sea Level Defense conference focused on nature -based solutions to defense against flooding and storm surges impacting coastal communities and ports in the United States. Panelists also discussed new developments in Singapore and the Netherlands.

The November 3rd conference took place virtually and was a joint production of the Society of American Military Engineers and the Propeller Club of Northern California.

Jim Patti, President, ‎International Propeller Club of the United States emphasized the importance of a strong merchant marine and a U.S.- built Jones Act fleet to support increased maritime growth in areas such as dredging and maritime commerce.

SOCIETY OF AMERICAN MILITARY ENGINEERS

Retired Brigadier General Joseph Schroedel, Executive Director, Society of American Military Engineers welcomed the participants and urged collaboration between maritime and coastal stakeholders in addressing resiliency challenges.

Arvind Acharya, President, Society of American Military Engineers, San Francisco praised the participation of SAME chapters in the conference and for supporting of resiliency goals.

The speakers and subject titles were as follows:

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The Propeller Clubs of Northern California and of Los Angeles and Long Beach convened a joint forum to discuss the impact of U.S. railroads on California ports.

On September 14th, maritime stakeholders from Northern and Southern California attended the virtual event where they heard the following reports:

Jessica Alvarenga, government affairs director Pacific Merchant Shipping Association (PMSA), reported that average rail dwell time for containers moving on rail destined for Midwest destinations from the Ports of Los Angeles and Long Beach averaged “11.8 days in June.”

However, on September 17th, PMSA reported the rail dwell time had declined to 8.2 days:

“Dwell time in August for containers leaving via rail was down compared to the month before. The railroads worked hard to drop the average dwell time for containers leaving via rail to 8.2 days, down from 11.3 days in July. 42.7% of containers leaving on rail remained on terminals for more than 5 days, also down from 53.4% the month before.”

In January of 2021 the average rail dwell time at the two Southern California ports was “7.9 days,” Alvarenga said.

She explained that the rail dwell time is measured from the time the container “leaves the terminal once it’s been offloaded from the vessel” until the container departs by rail for Midwest destinations.

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In an interview with AJOT, Elaine Forbes, executive director, Port of San Francisco said the Port could be facing up to an $80 million deficit by the end of 2021. She is hopeful about an economic rebound in 2022 and that $250 million designated by the State of California for ports’ recovery might be partially utilized to reduce Port losses suffered during the pandemic.

Earlier this month, Forbes told the San Francisco Board of Supervisors: “The Port is in a crisis. We have cut our capital budget to below life support. We’ve used our savings and we will be facing layoffs of essential employees without support and tools to right our ship. Our revenues have fallen nearly 50% for a total loss of $60 million and a projected $80 million over the next two years.”

Since then, Forbes said that California Governor Gavin Newsom has decided to allocate $250 million for California ports recovery. The funds come from the $26 billion California received as part of the American Rescue Plan Act.

Forbes noted that the funding for ports must first be approved by the California Legislature and then meet the approval of the Governor’s Office of Business and Economic Development (GO-Biz). The office will decide on final allocations: “The Port of San Diego is facing similar problems that we are. Other ports may also seek assistance,” she said.

As a result, “we are looking at the end of the year before we can get relief. In the meantime, we might be able to obtain a $20 million loan from the City of San Francisco to tide us over and avoid having to make draconian cuts in staff and Port operations.”

Forbes said that the loss of cruise ship revenue hurt the Port’s revenues during the pandemic. Rent payments have also plummeted from the Port’s tenants. The Port forgave about $14 million in rent for 225 tenants during the ‘shelter in place’ mandates that included restaurants and other businesses shutting down during the COVID crisis. The Port has also deferred collecting tens of millions of dollars in rent from others. Parking revenue has also declined.

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PMSA’s Jacob Warns Oakland A’s Howard Terminal Ballpark and Condos Pose “Long-Term Threat” to Port of Oakland Maritime Operations

Mike Jacob, vice president and general counsel, Pacific Merchant Shipping Association (PMSA), called the recently-released City of Oakland draft Environmental Impact Report (EIR) analyzing the Oakland A’s proposed ballpark and condominium complex at the Port of Oakland’s Howard Terminal “inadequate.”

Jacob said the report was vague in its analysis of the complex’s impact on harbor trucking, air quality and container rail movements.

Jacob warned that, if approved, the A’s project poses “a long-term threat to growth at the Port of Oakland.”

Nevertheless, the City of Oakland is moving forward with approving the complex at a time when the Port of Oakland:

• Attracted new container ship business from the Ports of Los Angeles and Long Beach
• Attracted it first port of call ocean carrier service from Asia with CMA
• Is the only the third port in the United States to handle 18,000 twenty-foot unit mega-container ships
• Is installing new mega-container ship to shore cranes at the Oakland International Container Terminal built in China by ZPMC. 

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Jim McKenna, president of the Pacific Maritime Association (PMA), reported that the Ports of Los Angeles and Long Beach have seen the highest number of COVID cases among U.S. West Coast ports and that thirteen longshore workers have so far died.

McKenna, who spoke to the Propeller Club of Northern California on February 2nd, said that approximately half of the current 855 COVID cases afflicting longshore workers at the Ports of Los Angeles and Long Beach had occurred since January 1st.

McKenna reported that there have been 74 COVID cases in Northern California including two longshore worker deaths and 110 cases at ports in Oregon and Washington with no deaths.

McKenna said “we mourn this loss of life and are working with the ILWU to constantly provide the best protection for our workforce so that they can continue to do the vital job that they do to support the U.S. supply chain.”

McKenna said that the State of California had elevated the importance of longshore workers as essential to receive COVID vaccines, but at the moment no vaccines are available.

To assist longshore workers who become ill, the ILWU and the PMA have established two web portals. One portal allows longshore workers to report positive and negative tests of the virus and a second portal allows longshore workers, who have been taken ill by the virus, to be compensated during their convalescence.

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