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Issue 6 2018 - Freight Business Journal


///US EAST COAST


New-look chassis scheme for South Carolina and Georgia Ports


South Carolina Ports Authority (SCPA) and Georgia Ports Authority


revamp


arrangements for container chassis to cater for growing traffic and in recognition that existing systems were no longer adequate. SCPA president


and chief


executive Jim Newsome said that the new structure would be known as the Southern States Chassis Pool. He added that the existing South Atlantic Chassis Pool, formed in 2006 and which currently provides about 40% of the chassis offered in CCM managed pools, had an ageing fleet and has not kept up in size with the growth of containerized trade


in the South-east.


Additionally, chassis provision is increasingly fragmented with about 40% of container moves


are handled by chassis provided outside of the pool structure. The Georgia Ports Authority


and the SCPA have filed an agreement


with the Federal


Maritime Commission (FMC) to work jointly to provide the new Southern States Chassis Pool. It will be operated by the North American Chassis Pool Cooperative (NACPC) described by Newsome as “a trucker- centric organisation that has focused from its inception on improving the quality of chassis on an at-cost basis.” The plan is to significantly


improve the quality of the chassis fleet in the South-east with features such as radial tyres, LED lights, and anti- lock brakes; increase the size of the chassis pool “to keep up with the explosive growth


New Atlanta boss for Hamburg Süd


Shipping line Hamburg Süd has promoted Christopher Messer to manager, South Atlantic sales based in Atlanta, GA reporting to Adilson Silva, assistant vice president, East Coast. He joined Hamburg Süd in


February of 2012 as account executive in Miami. In his new role he will


oversee a team of seven sales and sales support employees with responsibility for North Florida, Georgia, the Carolinas, Tennessee and Alabama.


in containerised trade in the Southeast”; and provide an “at cost” model. SCPA is meanwhile planning


for a 5% growth in container traffic, in its 2019 fiscal year financial plan adopted on 20 June. It projects boxes handled at


1.305 million compared with 1.24m expected to be handled in the 2018 financial year, which ended on 30 June. The port is also expecting


strong volumes at both its inland rail facilities in 2019, including a 13% increase in rail moves, at Inland Port Greer and 40,000 at Inland Port Dillon. The board has approved the


largest capital plan in SCPA’s history including the Hugh K. Leatherman Terminal, for which the port will invest $117.1 million


in construction, equipment, and its share of the access road. Other planned capital expenditures include $79.5 million in upgrades and modernization of


the


Wando Welch Terminal; $18.9 million at the North Charleston Terminal; and $19 million for the construction of the new SCPA headquarters, opening at the end of the year. South Carolina Ports


Authority said meanwhile that it had enjoyed the strongest July on record and second-highest monthly container volume in the port’s history, with 200,594teu handled during the first month of fiscal year 2019. July’s teu volume increased


10% year-on-year compared to 182,411 TEUs handled in July 2017 and almost surpassed the all- time highest monthly volume,


achieved in June with 201,163 TEUs. “July’s record volumes were strong start


a very to fiscal


year 2019,” said Newsome. “We look forward to continuing this momentum as the year progresses and expect to see fairly strong volumes into the fall.”


Inland Port Greer also


achieved its strongest July to date, with 9,798 rail moves in July. In the non-containerized cargo


market, Charleston handled 36,706 net tons of breakbulk cargo in July, including 12,462 finished vehicles. The ports authority


announced record container volume of 2.2 million teu handled during the 2018 fiscal year, up 3% over the previous fiscal year. SCPA also handled 201,163teu


in June, the single highest month for container volume in the port’s


history and a 10% increase over June 2017. June was a strong finish to the fiscal year, which began in July. As measured in pier


containers, or the number of boxes that moved across the docks of SCPA’s two container terminals, the port handled 115,696 containers in June and a total of 1.25 million containers in the 2018 financial year. Jim Newsome commented:


“June container volumes were exceptional, marking the first time our port has handled more than 200,000teu in a single month. We achieved the three highest months of container volume in the port’s history in March, May and June. As compared to 2010, SCPA has grown by over 900,000teu for a compound annual growth rate of 7%. Such growth is a significant accomplishment that reflects a broad expansion of the port’s cargo base, the commitment of our staff and the overall success of our maritime community.”


Jaxport gets deepening project under way


The US Army Corps of Engineers and dredging contractor Dutra began work on the Jacksonville Harbor Deepening Project in February 2018. The project should be completed in 5-6 years and will take the depth of the federal channel to 47 feet (14.3 metres). It will allow the largest ships currently calling at US East Coast ports to visit the port


cleared for landing Miami zone


The Miami-Dade Aviation Department (MDAD) recently gained final approval from the US Department of Commerce to designate Miami International Airport’s entire 3,230-acre land parcel as a Foreign Trade Zone (FTZ) magnet site. The magnet site designation


allows existing or prospective airport tenants


to operate manufacturing, warehousing


and/or distribution centres on airport property, and have their federal tariffs deferred, reduced or eliminated – providing time and cost savings for approved importers and exporters. “The MIA FTZ creates an attractive business opportunity for companies to begin or expand their operations directly on-site


at the passenger and cargo gateway of the Americas,” said Miami-Dade county mayor Carlos Jimenez. The new magnet site - an


expansion of Miami-Dade County’s existing FTZ 281 - will allow companies to receive and process materials and merchandise with reduced or eliminated Customs duties upon entry into the country at


more fully loaded. While Congress authorised a 13-mile deepening project, the Army Corps has divided the project into four sections beginning near the mouth of the river and Jaxport is currently focused on funding the first three segments to Blount Island in order to start receiving increased cargo aboard today’s larger ships as soon as possible. The fully authorized


Jacksonville Harbor Deepening Project includes the Dames Point Marine Terminal. New turning basins will be


added and there will be full two-way traffic with further widening at strategic locations. The estimated cost of the


MIA. Companies handling high-


traffic commodities at MIA - pharmaceuticals, textiles,


electronics, footwear, auto parts,


aircraft parts, avionics, machinery


equipment,


consumer goods and perishables - are expected to be FTZ applicants. To be an FTZ


initial three segments is $484 million. Final project costs will depend on contracts awarded for each of the segments. The Jacksonville Harbor Deepening Project is being funded through federal, state and Jaxport investments, plus contributions from specific private tenants and potentially from the City of Jacksonville. The federal government recently awarded the project $32.4 million to keep construction on track. This is in addition to the $21.7m commited in 2017, along with significant contributions fork the state of Florida. During the first six months


of fiscal year 2018 (ending 30 September 2018), Jaxport recorded 27% growth in total


operator, companies must first complete an application with PortMiami – the grantee of FTZ 281 – and then receive approval from US Customs and Border Protection. The expedited application process takes approximately 30 days. “Our FTZ magnet site approval dovetails perfectly


container shipments over the same period last year, moving 634,460teu. Asian container volumes


continue to grow, up 16% in the first six months of the fiscal year, with 209,803teu moved. During the past five years,


Jaxport has recorded an average of 21% annual growth in Asian container volumes. Puerto Rican volumes have also increased, growing 40% with 375,633teu moved, up from 267,827teu during the same time last year. As the primary US port for trade with Puerto Rico, Jaxport and its partners continue to supply aid to the residents following Hurricane Maria last September. Last year, Jaxport and


private operators moved more than 1.3 million teu, making Jacksonville the busiest container Florida.


port complex in


with our growth strategy as one of the world’s leading pharma hubs, as well as our efforts to become the e-commerce hub of the Americas,” said Miami- Dade Aviation Department chief of staff Joseph Napoli. “We look forward to opening new doors at MIA within the trade and logistics industries.”


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