Green ports
Monday, November 21, 2005
Journal of Commerce
BY BILL MONGELLUZZO

When shipping executives traveled to Sacramento on Nov. 4 for a meeting of California Gov. Arnold Schwarzenegger's task force on the movement of goods, they expected a discussion on how to develop the marine transportation system while limiting pollution. Environmentalists had other ideas. They treated the session as a forum on how to halt growth at ports.

That same day in Long Beach, the South Coast Air Quality Management District issued a seven-point announcement. The district said ports haven't been doing enough to prevent increased air pollution.

Ports in California are under growing environmental pressure, and they're not alone. At a time when cargo volume continues to grow, ports throughout the nation find themselves forced to increase spending to reduce air and water pollution.

Although all U.S. ports face demands to redesign facilities and replace equipment to lessen air and water pollution, the pressure may be greatest in California, where the ports of Los Angeles and Long Beach handle more than 40 percent of all U.S. containerized imports.

Long Beach had to spend $1 million to permit ships at a new terminal to operate from shoreside power. A program to reduce truck air pollution on Interstate 710 near the Southern California ports offers owner-operators up to $25,000 to replace old equipment. And shipping interests have had to fight off legislation to impose a $30-per-TEU fee divided among infrastructure, security and environmental measures.

"It's a national story. The industry has to take the Southern California effort seriously," said John McLaurin, president of the Pacific Merchant Shipping Association in San Francisco, the industry's lead representative on environmental issues in California.

The ports are spending tens of millions of dollars on projects they hope will mollify the most vociferous and well-funded environmental groups. Port officials consider multimillion-dollar "mitigation" projects a cost of doing business. "We're No. 1," said Bruce Seaton, interim executive port director at Los Angeles, which handled more than 7 million TEUs last year. "We need to be the leader in environmental matters as well."

It isn't easy. When the South Coast Air Quality Management District, a Southern California regulatory agency, issued its seven-point "clean port" initiative, it emphasized that the ports' initiatives to date, including Los Angeles's revolutionary program to cap emissions at 2001 levels, were inadequate. "The proposed no net increase plan for the Port of Los Angeles is a good start, but it's not enough," said William A. Burke, chairman of the AQMD.

Environmental organizations in California are emboldened by their recent successes in delaying marine terminal and intermodal rail expansion projects. They cite studies that have uncovered especially high rates of cancer and asthma along busy truck arteries such as I-710, calling these lifelines to the ports "diesel death zones."

Groups such as the Coalition for Environmental Health and Justice want more than just cleaner-burning engines in trucks and the use of alternative fuels in yard tractors. That coalition's subheading describes its true mission: "Communities United Against the 710 Freeway Expansion." A growing number of environmental and community activist groups want nothing less than to block further growth at the nation's largest port complex.

Many of the top U.S. container ports have grappled with environmental issues of one sort or another. In New York-New Jersey and Oakland, harbor dredging is the hottest issue. For metropolitan areas like Houston and Los Angeles-Long Beach, diesel emission issues are front and center.

Charleston learned a difficult lesson in 1999 when the South Carolina State Ports Authority attempted to build a large container complex at Daniel Island. Community groups jettisoned the project not because of air- and water-quality issues but because of the noise, bright lights and traffic congestion that a marine terminal would inflict on neighboring residents. The Bayport terminal under construction at Houston had to overcome similar opposition.

Even seaports located in cities such as Charleston, Savannah, Norfolk and Seattle-Tacoma that meet the Environmental Protection Agency's clean air standards are under scrutiny. The Natural Resources Defense Council, in its 2004 analysis of the top 10 container ports titled "Harboring Pollution," indicated it will pressure ports to reduce diesel emissions even if the ports are in areas that have met EPA goals.

Most ports have developed pollution-reduction plans in an attempt to satisfy environmental regulators and local community groups. The Port Authority of New York and New Jersey is implementing measures even if they are not required by regulatory agencies, said Port Director Rick Larrabee.

In line with its program to dredge the harbor to a depth of 50 feet, the port is spending $60 million to purchase and restore wetland areas. New York is retrofitting the Staten Island ferries with cleaner-burning engines and is working with other organizations to retrofit trucks. The port also is touting various environmental awards it has won. The port authority has created an environmental department and is participating in an International Organization for Standardization certification program for its environmental programs.

"We knew we needed to have a credible environmental agenda. We wanted to get out in front of it," Larrabee said.

The Port of Charleston went the legislative route to ensure that it has political as well as community support for its proposed container complex at a former Navy base, spokesman Byron Miller said. Charleston will follow all of the environmental requirements in the legislation, such as building direct highway access and overpasses into the facility to reduce the impact of truck traffic on the surrounding area, Miller said.

In Southern California, each lease for a new or expanded facility gives the port an opportunity to raise the environmental bar. With little waterfront land remaining for development, the Southern California ports use the leasing process as leverage to attract terminal operators committed to building the greenest facilities possible with today's technology. Cost is a secondary consideration.

Any new or expanded marine terminal in Southern California will include as standard features environmental measures such as shoreside power for operating vessels from "cold iron" at berth, yard tractors that burn clean diesel or alternative fuels, electric cranes and the use of diesel oxidation catalysts to reduce harmful emissions.

Environmental considerations permeate every port activity from the design and operation of marine terminals to how the lease is written, said Robert Kanter, director of planning at the Port of Long Beach. Environmental-impact studies will be performed according to the strictest standards and will consider all health risks associated with port operations, he said.

Port environmental strategy continues to evolve as terminals experiment with various technologies to determine which new options are available to reduce pollution. "We do the best we can at the moment while always looking to the future," he said.

Port planners fear, however, that no matter what they do, environmentalists will find some loophole in an environmental-impact report or will whip up community opposition to major projects such as BNSF Railway's proposed near-dock rail transfer yard.

BNSF's intermodal yard, which would be adjacent to Union Pacific's Intermodal Container Transfer Facility, about four miles from the harbor, highlights the Catch-22 environment in which port and intermodal projects now exist. Environmentalists have always urged ports to shift traffic from truck to rail, which provides significantly cleaner transportation.

BNSF's Southern California International Gateway would remove 1 million truck trips a year from I-710, but residents of the Wilmington and West Long Beach communities near the proposed site oppose the project because the short four-mile dray from the harbor would direct those truck trips through their neighborhoods.

Some transportation planners are beginning to doubt whether any major port-related project will be built in Southern California. They fear that environmental groups will attempt to kill any project that would allow the ports to grow.

A no-growth policy is not the intention of Schwarzenegger's task force on goods movement, said Barry Sedlick, undersecretary of the California Business, Transportation and Housing Agency, which co-sponsored the Nov. 4 hearing in Sacramento.

Sedlick noted that the task force's mission statement is to develop a plan for expanding California's maritime transportation infrastructure in an environmentally friendly way. The commission will submit its recommendations to Schwarzenegger next month.

State Sen. Alan Lowenthal successfully sponsored legislation two years ago to fine terminals $250 each time a truck with an appointment must wait in line for more than 30 minutes. Last year, he pushed marine terminal operators into extending their gate hours. He believes ports can grow without alienating their communities. His recommendations, however, could be difficult to follow.

Lowenthal said the ports should set a goal of zero emissions, with a plan that works toward that goal. He recognizes that today's technology cannot provide for zero emissions from port operations, and says interim goals such as no net increase in pollution should be included in the plan.

Lowenthal was interviewed this month at a Long Beach conference that discussed futuristic technologies such as a container shuttle from the harbor to inland transportation hubs that runs on magnetic levitation. Maglev, while a proven technology for mass transit, is unproven in the freight arena. Lowenthal said, however, that an environmental plan that keeps the door open to such technologies is necessary to win the support of environmentalists and community groups.

Transportation consultant Gill Hicks, former managing director of the Alameda Corridor Transportation Authority, said that to accommodate future demand for cargo facilities, transportation interests must move quickly to develop a growth strategy that also satisfies environmentalists. "The ports are losing the P.R. war," he warned.