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PCNC November 17, 2016: Red & White/Sandia Fuel Cell Ferry Project
By Joseph William Pratt, Sandia National Labs
The fuel cell ferry project (SF-BREEZE) examined the technical, regulatory, and economic feasibility of a zero-emission, high-speed passenger ferry powered solely by hydrogen fuel cells and its associated hydrogen fueling infrastructure within the context of the San Francisco Bay. In conjunction with a naval architect, a realistic, feasible vessel design meeting all performance specifications was produced. Collaboration with and evaluation by both the US Coast Guard and the American Bureau of Shipping did not reveal any insurmountable regulatory obstacles to deployment. The supply of liquid hydrogen to the vessel was examined and viable sites were found at the Port of San Francisco and the Port of Redwood City. Industrial gas companies were consulted and provided technically viable fueling facility designs. The current design of the zero emission ferry has a cost premium compared to a conventional diesel ferry. Cost reduction strategies specific to the vessel and leverage of those expected in the fuel cell electric vehicle market may result in future cost parity.
For more information: http://maritime.sandia.gov
PCNC Welcomes Red and White Fleet & Its Fuel Cell Ferry Project November 17th
By Stas Margaronis
A new zero-emission fuel cell driven electric ferry is proposed for San Francisco Bay!
Thanks to the Red and White Fleet, Propeller Club of Northern California members will be hearing about this exciting new marine technology project at the PCNC luncheon on Thursday, November 17th at Scott’s Seafood, Oakland.
The two speakers will be: Red and White Fleet CEO, Tom Escher and Joe Pratt, Principal Member of the Technical Staff at Sandia National Laboratories:
Thomas C. Escher serves as the President, CEO and Chairman of the Red and White Fleet. The company was founded by Tom’s grandfather, Thomas Crowley in 1892, making Red and White Fleet the oldest continuing Bay cruise and sightseeing company on San Francisco Bay. Tom began his maritime career as a sweeper, and has lived and worked in Asia and Europe. In 1997, Tom purchased 100{db7208756332b64820e32452d4dd3c17f07306fba093109b40ee1a7501f8ad6f} of the Red and White Fleet from other family members. Currently, Tom is a Director of the Fisherman’s Wharf Community Benefit District, the Port of San Francisco’s Maritime Commerce Advisory Committee, Fisherman’s and Seamen’s Memorial Chapel and the San Francisco National Maritime Park Association. He has served as a Trustee of Menlo College, Board member of the San Francisco Convention & Visitors Bureau, Director/Treasurer of the San Francisco Museum and Historical Society, was on the Market Street Railway Advisory Board and a Board member of the U.S. Travel Association – National Council of Attractions.
Dr. Joe Pratt is a Principal Member of the Technical Staff at the Department of Energy’s Sandia National Laboratories in Livermore, California. He received his Ph.D. from the University of California-Irvine at the National Fuel Cell Research Center. He has been involved in hydrogen and fuel cell research for nearly 15 years, and at Sandia he conducts research, development, and deployment activities to enable successful transitioning of hydrogen and fuel cell technology to commercially-viable products. His projects involve applying hydrogen and fuel cells in aircraft, in ports, on maritime vessels, for generators, construction equipment, material handling equipment and portable devices.
Background: Last year, the US Department of Transportation’s Maritime Administration (MARAD) asked Sandia to examine the feasibility of implementing a zero emission, high speed passenger ferry. The now-concluded SF-BREEZE project examined the technical, regulatory, and economic aspects of such a ferry powered solely by hydrogen fuel cells and its associated hydrogen fueling infrastructure for operating within the San Francisco Bay. In conjunction with a naval architect, a realistic, feasible vessel design meeting all performance specifications was produced. Collaboration with and evaluation by both the U.S. Coast Guard and the American Bureau of Shipping validated the regulatory acceptance of the vessel. The supply of liquid hydrogen to the vessel was examined and viable sites were found. Industrial gas companies were consulted and provided technically viable fueling facility designs. The current design of the zero-emission Red and White Fleet ferry has a cost premium compared to a conventional diesel ferry. Cost reduction strategies specific to the vessel and leverage of those expected in the fuel cell electric vehicle market may result in future cost parity. This presentation will provide an overview of these findings and opportunity for further discussion.
Port of Oakland: Journal of Commerce Senior Editor Speaks at PCNC (April 2016)
One of the world’s most influential shipping journalists is bullish on the Port of Oakland. Journal of Commerce Senior Editor Bill Mongelluzzo said this month he’s impressed with opportunities opening up here. But he cautioned that the Port community must pull together to realize its promise. “I see blue skies ahead for Oakland,” Mr. Mongelluzzo told an audience of 100 at a Propeller Club of Northern California luncheon. “You have the ability here, and the infrastructure is being developed; but it’s all about productivity and consistency.” The internationally renowned expert drew on decades of experience in summarizing the Port’s prospects. He said Oakland will be one of few U.S. megaports capable of handling the world’s biggest ships. Oakland has tall cranes and deep-water berths, to accommodate megaships, he pointed out. “The megaships are on the way and they’re here to stay,” he said. A concern, Mr. Mongelluzzo said, is a past reputation for problematic labor relations. The perception can result in some cargo loss from Oakland, he said. He countered that by saying that Oakland’s rank and file dockworkers are the most productive on the West Coast. Each crane operator moves 30-to-40 containers on an off ships every hour, he said, far outpacing competitors. The editor projected 3-to-5 percent cargo volume growth for Oakland and other West Coast ports in coming years. He said Oakland work practices must change to meet the increase. “Monday-through-Friday, 8-to-5 operating hours can’t happen anymore,” he said. “It won’t do the job.” Mr. Mongelluzzo spent eight hours visiting Port of Oakland operations before he spoke. His observation: “I’m optimistic, especially after the tour. Everyone here is stepping up to the plate.”
Amos Introduces Garamendi at Salute to Congress
The International Propeller Club of the United States held its 31st annual Salute to Congress in Arlington, Va. on April 23, 2015. For more than three decades, this event has allowed the Club to recognize Members of Congress for their support of the U.S. maritime industry.
The 2015 recipient of the Salute to Congress was the Honorable John Garamendi (3rd district of California), a member of the U.S. House of Representatives and ranking member of the House Subcommittee on Coast Guard and Maritime Transportation, as well as a member of the full House Committee on Transportation and Infrastructure and Committee on Armed Services. Nearly 250 guests were in attendance for the gala dinner.
Our own club president John Amos (who also serves as Pacific Coast Regional Vice President of the International Propeller Club) introduced Garamendi. “It was a terrific event,” Amos said. “And an honor to talk about Rep. Garamendi who at one time represented my district.”
Here is the video of the Propeller Club Salute to Congress 2015. Amos begins his remarks at 16:30. Video courtesy of MaritimeTV.
Captain San Juan Dunbar Will Be Missed
In memoriam
Captain San Juan Dunbar
International President, 2014-2015
It is with deep regret that we inform you of the death of the Club’s International President, Captain San Juan Dunbar, on Friday, April 24, in his hometown of Portland, Maine, after a short illness.
Captain Dunbar was a member of the Propeller Club for more than fifty years, having joined as a member of the Student Port at Maine Maritime Academy while still an undergraduate. After sailing abroad, he returned home to Portland, where he retired after many years as a harbor pilot. In retirement, he had split his time between Portland and Miami Beach, where he was also a member of the Propeller Club Port of Miami.
Captain Dunbar was dedicated to the Propeller Club and its mission, and served in a wide variety of roles at the local, regional and international levels of the organization: Port President and Board member, Regional Vice President, long-time member of the International Executive Committee and Board of Directors. He was elected First Vice President of the Club at our 86th Annual Convention in New Orleans, La., in 2012, and became International President at the 2014 Convention in Louisville, Ky. A profile of Capt. Dunbar appeared in our newsletter earlier this month.
Visitation is planned in Portland from 3-7 p.m. on Thursday, April 30, and funeral services will be held at 11 a.m. on May 1, with burial to follow. Captain Dunbar’s full obituary with additional details will appear in the Portland Press Herald on Tuesday, and will be also available on the newspaper’s website at that time.
To Captain Dunbar’s family, his colleagues in the Propeller Club Port of Portland, and to his many friends, we extend our deepest sympathies.
Under the bylaws of the International Propeller Club of the United States, the International First Vice President, Rick Schiappacasse, a member of the Propeller Club Ports of Baltimore and Jacksonville, will fill the remainder of Captain Dunbar’s term as President, which runs through the 2016 Annual Convention.
Tour Applied Weather Technology
Special event for members only
On Wednesday, April 8, Propeller Club of Northern California members are invited to tour the facilities at Applied Weather Technology in Sunnyvale. Accurate weather forecasting can have a huge impact on shipping. Go behind the scenes to see how AWT uses technology to provide weather data for about 50,000 voyages each year.
After the tour, lunch will be served. Space is limited to 30 members, so reserve your place now by emailing Club Secretary Adrienne Yee at ayee@seamenschurch.org. Once we’ve confirmed your reservation, you’ll be asked to send your check for $25 to our P.O. Box address:
The Propeller Club of Northern California
120 Village Square, Box 113
Orinda, CA 94563
Port of Oakland Q&A on Labor Settlement
Port of Oakland applauds waterfront contract settlement
Urges effort to speed up the pace of global container trade
The Port of Oakland today applauded the tentative agreement of a new longshore labor contract for the West Coast waterfront. At the same time, it called for efforts to accelerate the movement of global container trade.
“We are pleased that an agreement has been reached,” said Chris Lytle, the Port’s Executive Director. “Now it’s time for all sides to pull together and get cargo moving with the speed our importers and exporters need.”
Tentative agreement on a new 5-year contract between waterfront employers, represented by the Pacific Maritime Association, and the International Longshore and Warehouse Union (ILWU) was announced this morning. The two sides had worked without a contract since last July, their impasse slowing containerized freight operations from Seattle to Southern California. Once finalized, the contract will cover 29 U.S. West Coast Ports. It awaits union ratification.
The Port of Oakland has prepared a status update on what the settlement means and how long it will take to clear out the cargo backlog that has developed at all major West Coast ports. To see the update, click here. It is also available below.
The Port of Oakland did not participate in the contract negotiations. As a landlord port, it leases facilities to marine terminal operators who employ longshore labor.
With a contract in place, the Port said its top priority is immediate resumption of uninterrupted cargo operations. It called on terminal operators, labor, truckers and ocean carriers to join forces and quickly restore productivity. “Shippers are looking to us to accelerate the flow of cargo,” Mr.Lytle said. “We owe them our best effort.”
WHAT COMES NEXT?
After more than nine months of negotiations, a tentative contract agreement has been reached on the West Coast waterfront. The Pacific Maritime Association and International Longshore and Warehouse Union announced their settlement Feb. 20. The contract covers 29 U.S. West Coast ports including the Port of Oakland. Here’s a look at what the deal means for the maritime sector and global trade.
THE CONTRACT
Q: So this nine-month dispute is finally over?
A: Not quite. Union members must vote on the proposed contract. It’s not certain yet when that vote will be taken.
Q: Will there be more slowdowns, stoppages and delays in the meantime?
A: Both labor and management will hopefully commit to full productivity at the ports while ratification of the contract is pending.
Q: Why did this take so long?
A: A number of contentious issues were negotiated at length including labor jurisdiction, health and benefits, technology and arbitration.
Q: What are the highlights of the deal?
A: It’s best to get that from the two negotiating parties. The Port of Oakland was not involved in the contract talks. But reports indicate that key elements include an increase in wages and benefits, management agreement to pay the so-called Cadillac Tax on medical benefits and union jurisdiction over the maintenance and inspection of container chassis.
Q: How long will this contract last?
A: Five years.
Q: And then, more of the same at the next negotiation?
A: There’s a history of contentious bargaining over waterfront contracts. The hope is that both sides will recognize the need to settle future contracts without further damaging the economy.
RECOVERY
Q: Now can the Port go back to normal?
A: It could take 6-to-8 weeks for Oakland and other West Coast ports to recover from the cargo backlog. Cargo movement should improve soon, but it will take time to restore full productivity.
Q: Why will it take so long to recover?
A: Ships, containers and chassis are all out of balance. They’re not where they need to be to support cargo movement. Repositioning of these assets will take some time.
Q: What’s the Port of Oakland going to do to expedite cargo movement?
A: We’ve already instituted a number of extraordinary measures. These include: weekend gates, express lanes, additional truck parking and daily status reports for shippers. We’re working now with marine terminals, truck drivers and shipping lines on additional issues including chassis availability, demurrage charges and appointment systems.
Q: Will containers continue to be stranded for days and weeks inside the Port?
A: Terminal operators are developing plans to expedite the release of cargo. Once productivity is restored at the terminals and chassis and containers are back in full circulation, cargo delays should disappear.
Q: What about exports: will shippers be able to get their goods, especially perishables, on ships for foreign markets?
A: Export delays will disappear when shipping lines resume normal rotations. Some are omitting Oakland calls to compensate for significant delays after stopping in Southern California.
Q: What can cargo owners do to get their containers out of the Port?
A: They should contact the shipping line that transported their cargo or the marine terminal where it’s awaiting release.
Q: Will we continue to see long lines of trucks at terminal gates?
A: Waiting times have declined significantly in the past month. Periodic traffic build-ups are likely while full productivity is being restored at the terminals.
Q: Can we expect more slowdowns and suspended operations while the contract awaits ratification?
A: Both negotiating parties will hopefully commit to full cooperation in assisting the full recovery of West Coast ports. That should help minimize disruptions and delays.
CURRENT PORT STATUS
Q: What’s the backlog at the Port of Oakland right now?
A: Thirteen vessels are at berth and 16 are awaiting berths at the Port of Oakland. Those numbers should decline in coming days.
Q: What’s the status of imports stored in marine terminals?
A: In some cases it could still take several days for imports to be released from terminals. Look for improvement soon now that a tentative agreement has been reached.
Q: What about exports – will they still be delayed in getting loaded to ships?
A: That situation will also improve as vessels that have bypassed Oakland to overcome schedule delays return to normal rotations.
Q: Will truckers still face long waits at terminal gates?
A: Depending on the time of day, wait times could still be extensive at several terminals. Best times are usually early mornings.
Q: Is the Port operating at full productivity?
A: No. The rate of movement on vessels and in container yards has declined over the past three months. That should improve now that the contract impasse has been resolved.
Q: Why were ships avoiding Oakland?
A: Vessels calling the U.S. West Coast stop first at the ports of Los Angeles and Long Beach. Because of significant delays there, some were bypassing Oakland, returning instead to Asian origins to make up lost time. That practice could end soon with announcement of a tentative contract agreement.
Q: What happens to Oakland cargo if vessels truncate voyages in Southern California?
A: It’s discharged in Southern California and shipped via rail or truck to Oakland at additional cost.
Q: Is cargo volume increasing at the Port of Oakland?
A: It was. In 2014, the Port of Oakland set an all-time record for cargo volume. But volume declined 32{db7208756332b64820e32452d4dd3c17f07306fba093109b40ee1a7501f8ad6f} in January from the same period a year ago. Cargo volume has also declined at other major U.S. West Coast ports. Further declines are expected for February when the latest statistics are released in mid-March. The decline is attributed to the nine-month contract dispute on the West Coast waterfront.
PORT OF OAKLAND’S ROLE
Q: How could you let this contract dispute drag on for nine months?
A: The Port of Oakland was not part of the contract negotiations. The Port is a landlord, leasing facilities to marine terminal operators. Those operators hire longshore labor and negotiate contracts with the union.
Q: So you were powerless during this whole episode?
A: We had no authority to bring about a contract settlement. We did, however, advocate vigorously for a settlement and communicated continuously with the negotiators. We also worked closely with terminal operators, shippers and truckers to mitigate the effects of the dispute.
Q: If you’re only the landlord, what can you do help restore normal operations at the Port?
A: We’re already in discussions with the Port’s stakeholders on new measures to expedite cargo flow and clear out the backlog. We’re visiting other ports in search of new ideas. We’re also stepping up communication to customers to help them restore their supply chains.
IMPACT OF THE DISPUTE
Q: How much money did the Port of Oakland lose because of this dispute?
A: It’s too soon to tell if there has been a financial impact. The real risk is jobs. If shippers divert cargo permanently away from U.S. West Coast ports, jobs will be at risk. More than 73,000 jobs depend on the Port of Oakland. A large number of those could be jeopardized if cargo owners choose alternative gateways.
Q: Did the Port of Oakland lose business during this contract dispute?
A: Yes. January cargo volume was down 32{db7208756332b64820e32452d4dd3c17f07306fba093109b40ee1a7501f8ad6f} from a year ago. That was a result of the dispute. Other major U.S. West Coast ports experienced volume declines, as well.
Q: Why should shippers continue to use the Port of Oakland?
A: More than 85{db7208756332b64820e32452d4dd3c17f07306fba093109b40ee1a7501f8ad6f} of the imports routed through Oakland are for final destinations in Northern California. The Port of Oakland is the convenient gateway for that cargo. Likewise, for Bay Area and Central Valley exporters – Oakland is the best choice. The goal is to increase business through Oakland. The Port is gearing up with new developments that will make it the West Coast’s leading transportation and logistics center. This will include warehousing, transloading, cold storage and grain transport. Oakland is also an improving intermodal cargo gateway with good rail connections to the U.S. interior.
Q: How do you keep faith with shippers who lost business and money because they couldn’t get their cargo?
A: This is the top priority for the Port of Oakland. Service must improve. The Port must be easier to do business with. One-on-one meetings and customer forums help with understanding the needs of shippers. It’s the Port’s responsibility to meet those needs in collaboration with marine terminals, shipping lines and trucking companies.
About the Port of Oakland
The Port of Oakland oversees the Oakland seaport and Oakland International Airport. The Port’s jurisdiction includes 20 miles of waterfront from the Bay Bridge through Oakland International Airport. The Oakland seaport is the fifth busiest container port in the U.S.; Oakland International Airport is the second largest San Francisco Bay Area airport offering over 300 daily passenger and cargo flights; and the Port’s real estate includes commercial developments such as Jack London Square and hundreds of acres of public parks and conservation areas. Together, through Port operations and those of its tenants and users, the Port supports more than 73,000 jobs in the region and nearly 827,000 jobs across the United States. The Port of Oakland was established in 1927 and is an independent department of the City of Oakland. Connect with the Port of Oakland and Oakland International Airport through Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.
Alert: Senate Proposal Would Gut Jones Act
U.S. Senate to consider legislation to gut Jones Act domestic shipbuilding provisions
U.S. Senator John McCain (R-AZ) has proposed legislation that would eliminate the Jones Act requirement that vessels used in American domestic trade be built in U.S. shipyards. We expect a vote as early as Tuesday, Jan. 20, to attach this provision to the bill that would authorize construction of the Keystone XL pipeline, currently pending before the Senate.
U.S. maritime interests are very concerned about the results this proposal would have on the domestic maritime industry, devaluing investments that have already been made in American-built vessels and impacting hundreds of thousands of American jobs. You can read more about the proposal and the industry response here and in other maritime publications. http://bit.ly/1ucJDNB
Local Propeller Club members may want to contact their U.S. Senators as soon as possible to urge them to vote NO on the McCain amendment when it comes up for consideration next week. Those whose businesses would be impacted will want to be prepared to offer examples of the impact on your company and your community. All Senate offices can be reached through the U.S. Capitol Switchboard, 202-224-3121, and contact information for each Senator is available on-line at www.senate.gov.