Trends in Marine Terminal Trends in Marine Terminal Operations ManagementOperations Management

Lynn TarkentonLynn Tarkenton

Port of VA Port of VA Performance/ForecastPerformance/Forecast

0

500000

1000000

1500000

2000000

2500000

2002 2003 2004 2005 2006 2007

*9% Annual Growth 2005 – 2007*

1.44M1.65M

1.81M1.98M

2.15M2.34M

Distribution CentersOver 80 Distribution Centers located in VA

Channel DeepeningChannel Deepening

Terminal EfficiencyTerminal Efficiency

The Port operates 3 Marine Terminals and The Port operates 3 Marine Terminals and an Inland Port.an Inland Port.-- All operations are grounded with Live All operations are grounded with Live

Gate Straddle Carrier formatsGate Straddle Carrier formatsCargo Velocity is key to productivity, Cargo Velocity is key to productivity, service and revenue for the future.service and revenue for the future.Cargo Velocity is defined as the Cargo Velocity is defined as the ability to handle maximum volume with maximum efficiency

Cargo Velocity EnhancementsCargo Velocity EnhancementsEmpty BenchmarksEmpty BenchmarksEmpty Container Yard Empty Container Yard –– Off TerminalOff TerminalES Lots on TerminalES Lots on TerminalChassis Pool PortwideChassis Pool PortwideIT InitiativesIT InitiativesEquipment ReliabilityEquipment ReliabilityTrucker SupportTrucker SupportOff Terminal Loaded LotOff Terminal Loaded LotContainer Demurrage PenaltiesContainer Demurrage Penalties

Empty BenchmarksEmpty Benchmarks

Limits empties on terminal, by shipline, Limits empties on terminal, by shipline, based on historical export needbased on historical export need

Improves vessel and transfer zone Improves vessel and transfer zone productivity and trucker productivity and trucker turntimesturntimes

Relieves overall terminal congestion Relieves overall terminal congestion

Empty Container Empty Container Yards (CY)Yards (CY)

Empty Container YardEmpty Container Yard

The Port established, in 2004, two offThe Port established, in 2004, two off--dock Empty dock Empty Container YardsContainer Yards

Together, both yards remove from the terminals, over 6,000 Together, both yards remove from the terminals, over 6,000 empty containersempty containers

Reduces Gate Queue/Quicker Trucker Turn Time/Reduces Reduces Gate Queue/Quicker Trucker Turn Time/Reduces Terminal CongestionTerminal Congestion

Empty Container YardEmpty Container Yard

Removes 700 gates/transfer zones transaction per day Removes 700 gates/transfer zones transaction per day from marine terminalfrom marine terminal

Adjacent to or within 1.5 miles of TerminalsAdjacent to or within 1.5 miles of Terminals

Port EDI visibility to customersPort EDI visibility to customers

ILA Labor supportedILA Labor supported

Empty Storage (ES) LotsEmpty Storage (ES) Lots

On terminal empty container storage for On terminal empty container storage for vessel exportsvessel exports

Allows trucker to go directly to ES Lot, Allows trucker to go directly to ES Lot, bypassing transfer zonebypassing transfer zone

Live lift operation Live lift operation –– shorter turntimesshorter turntimes

Empty Storage (ES) LotsEmpty Storage (ES) Lots

Lessens demand on the transfer zoneLessens demand on the transfer zone

Saves stack area for vessel loadsSaves stack area for vessel loads

Average inventory is 2,000 containers with Average inventory is 2,000 containers with a capacity for 4,000a capacity for 4,000

PortPort--wide Chassis wide Chassis PoolPool

PortPort--wide Chassis Poolwide Chassis Pool

The Port establishes the first portThe Port establishes the first port--wide wide chassis pool in October 2004.chassis pool in October 2004.

Over 5000 chassis are eliminated and Over 5000 chassis are eliminated and removed from terminal facilities.removed from terminal facilities.

Over 25 acres of land are reclaimed due to Over 25 acres of land are reclaimed due to reduced chassis on facilities.reduced chassis on facilities.

PortPort--wide Chassis Poolwide Chassis Pool

M&R is standardized for all chassis.M&R is standardized for all chassis.

Motor Carriers can use the same chassis for Motor Carriers can use the same chassis for multiple moves thus reducing dwell time.multiple moves thus reducing dwell time.

Utilization during 2005 Peak Season Utilization during 2005 Peak Season –– 81.4%.81.4%.

HRCP II increased chassis use from 32.6 moves HRCP II increased chassis use from 32.6 moves per year to 41.7 moves per year. per year to 41.7 moves per year.

IT InitiativesIT Initiatives

Off Terminal Container Services (OTCS) for Virtual Off Terminal Container Services (OTCS) for Virtual Empty Yard Empty Yard –– “Street Turns”“Street Turns”

Navis Prime Route and Expert Decking for Transfer Navis Prime Route and Expert Decking for Transfer ZoneZone

Drayage Automation to “Top Pick” Drayage Automation to “Top Pick”

TIR AutomationTIR Automation

Website Tracking EnhancementsWebsite Tracking Enhancements

OTCS Virtual Empty YardOTCS Virtual Empty Yard

Interchanges Occur Off TerminalInterchanges Occur Off Terminal–– The Port feeds OTCS websiteThe Port feeds OTCS website–– Truck interchanges occur in their websiteTruck interchanges occur in their website–– OTCS feeds the Port interchangeOTCS feeds the Port interchange–– The Port feeds shipline interchange in EDIThe Port feeds shipline interchange in EDI

Equipment Equipment ReliabilityReliability

Equipment ReliabilityEquipment Reliability

Measure downtime against preventive Measure downtime against preventive maintenancemaintenance

Transitioning from calendar based to Transitioning from calendar based to meter based preventive maintenancemeter based preventive maintenance

Trucker SupportTrucker Support

Trucker SupportTrucker Support

Include in decision making processInclude in decision making process-- Advisory CommitteeAdvisory Committee

-- Tidewater Motor Trucking AssociationTidewater Motor Trucking Association

-- ITC ITC –– Inland Transportation CommitteeInland Transportation Committee

Trucker SupportTrucker Support

Create/Improve Service ToolsCreate/Improve Service Tools-- Truckers’ web page Truckers’ web page –– container container trackingtracking-- Phone callPhone call--up system up system –– container statuscontainer status-- Chassis Pool Chassis Pool –– Good/Bad CorralsGood/Bad Corrals-- Chassis Repair Support on and off terminalChassis Repair Support on and off terminal

Dedicated Staff Liaison PositionDedicated Staff Liaison Position-- Quick, constant, complete communicationsQuick, constant, complete communications

Labor RelationsLabor Relations

The Employer’s Group, Hampton Roads Shipping The Employer’s Group, Hampton Roads Shipping Association fosters the relationship between Association fosters the relationship between

Management and the I.L.A.Management and the I.L.A.

Monthly meetings between Union Officials Monthly meetings between Union Officials and Managementand Management

Safety Programs and IncentivesSafety Programs and Incentives

SemiSemi--Annual Presentation to the rank and Annual Presentation to the rank and filefile

--

The FutureThe Future

CraneyCraney IslandIslandMarine Terminal Phase I Marine Terminal Phase I -- 20172017

Road and Rail Connector to Route 164