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But
the port is not simply investing in infrastructure
and waiting for business to pick up again.
It is actively pursuing customers with key
incentive programs to bring the biggest,
cleanest ships in the industry to Long Beach.
Earlier
this year the port's management put forward
a proposal to cap dockage fees at $8,641
per day for vessels longer than 345 metres.
According to market sources, these larger
vessels would typically pay over $11,000
per day. So that is a significant saving.
"Another
incentive program that the port has approved
is its Green Ship Award Program, which offers
discounts of up to $6,000 for carriers that
call at Long Beach with clean ships.
Additionally,
carriers can enjoy a $10-per-TEU rebate
for all containers moved through the port
via rail between August 1 this year and
July 31, 2013.
These
proposals were approved back in July and
became effective in August. Mr Lytle said
he expects the programs to prove successful
for the port.
"We
expect very good results from our customer
base and our prospective customers. By capping
our dockage rates we are encouraging the
newest, cleanest vessels to come into the
Port of Long Beach. Already we're handling
the newest, cleanest vessels in that 14,000
TEU range.
"By
incentivising more business in the rail
sector that is discretionary business, and
that is really important to us and our future,"
he said.
The
threat of an east coast port shutdown in
late 2012 had successfully been postponed.
However, as we now enter into 2013 the situation
is still far from diffused.
Some
market insiders believe that if a strike
does take place then it will likely occur
in the lead up to the Chinese New Year period¡Xa
time of year that typically sees a brief
spike in shipping demand.
But
for Mr Lytle, he sees little joy in a strike
on the east coast, even if it does draw
more volumes to the west coast.
"I
hope that there is a resolution to the issues
out on the east coast. I don't think anybody
wants to see a labour disruption or a strike.
That could be very devastating for our economy
in the long run. So I hope that they get
that settled.
"But
I am very pleased with what I see on the
west coast in terms of our working relationship
with the union out here," he said,
noting that relations between the ILWU and
the employers have never been better than
they are now.
With
so many projects now underway, or soon to
commence, and with numerous incentive programs
to attract more business to the port in
place, coupled with some encouraging signs
concerning the health of the US economy
and an apparent content labour force at
the port, it is easy to see why Long Beach
port officials like Mr Lytle are optimistic
about the future.
A
long-term, or "marathon" point
of view certainly seems the logical way
to approach the market today.
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