Thoughts on the 2007 Wildfires

The wildfires that swept across our county have taken a toll on us all. We all know someone who lost a home, who were evacuated from their homes or had family members affected by the fires. Many of us spent restless nights worrying that our homes could be next. On behalf of the Board of Port Commissioners and staff, I would like to express my deepest condolences to everyone affected by this tragedy.

The latest information on the fire conditions, plus information on where to go for help can be found on our Web site, www.portofsandiego.org. The Web site is continuously updated and includes live updates from KPBS news. I hope you will find this information helpful.

New Business Prospects Highlight Asia Trade Mission

Last month, I had the opportunity to travel to Asia on a trade mission with Commissioner Laurie Black; Ron Popham, the Port’s Senior Director of Maritime; Joel Valenzuela, the Port’s Manager of Maritime Trade Development and Stan Gabara, Executive Vice President of Pasha Automotive Services.

The trip was extremely productive and we met with over 50 individuals from 20 companies in Seoul, South Korea; Shanghai, China and Tokyo, Japan.

(Left to right) Ron Popham, Senior Dir., Maritime; C.S. Kwag, Port Captain in Seoul, South Korea; Port Chair Sylvia Rios; S.H. Seo, General Manager, Hyundai Merchant Marine and Commissioner Laurie Black at the offices of Hyundai Merchant Marine, Seoul, South Korea.

Keeping the Port’s Maritime Business Plan in mind as we met with shipping officials, we were able to accomplish what we set out to do – retain our current customers and secure new business.

Three key messages were echoed by many of the officials we visited: our customers are extremely pleased with the service they receive from the Port of San Diego; many Asian shippers doing business with other West Coast ports are frustrated with congested terminals; and West Coast imports from Asia will experience tremendous growth over the next few years. We will be monitoring this growth closely because it translates into added trade business for our port.

While in Seoul, we met with the General Manager of Dongkuk Steel. The company provides steel plates used by NASSCO for ship building. Dongkuk anticipates these shipments to steadily increase since NASSCO was awarded a $1 billion contract to build nine new ships. In addition to the steel for NASSCO, the Port has received shipments of windmill towers. We are working with Dongkuk to increase these shipments.

Also in Seoul, we met with Hyundai Merchant Marine (HMM). HMM is a worldwide company with headquarter offices in four countries and annual earnings of $5 trillion per year. The Port of San Diego has received project cargo, bulk cargo and steel plates from HMM and we’re working to expand this business into additional steel imports. Our limited dock space may hinder this, so we will be studying some of the potential scenarios that were outlined in the Maritime Business Plan and updating HMM when more space becomes available. Other companies we called on in Seoul were Eukor Car Carriers and STX – Pan Ocean. Both of these companies expressed an interest in future business with the Port.

A model of Shanghai at the City Planning Center of Shanghai, China.

Meetings in Shanghai also produced good results. Rickmers-Linie, a global project cargo and heavy-lift carrier, expressed interest in bringing more of its business to the West Coast. Rickmers has been shipping windmill parts to the Port and has been actively seeking additional project cargo for us. Star Shipping, another transportation company, is a regular carrier to our port. Star Shipping delivers bagged and bulk fertilizer, steel and project cargo. They have expressed interest in increasing European service to our port and adding niche breakbulk commodities from China.

In both Shanghai and Tokyo, we visited the offices of Eastern Car Line (ECL). The Port receives a shipment of windmill parts through this carrier from Japan every two weeks. In August of this year, ECL began monthly shipments of steel coils from China to the Port. ECL continues to promote the Port of San Diego to their customers and expects to begin a windmill and steel service from Japan and China that will arrive here every 10 days, beginning in October.

Also in Shanghai, we met with representatives from Chipolbrok, Gearbulk, Oldendorff and MOL Consolidation. The Port may begin receiving Chinese automobiles within the next 18-24 months through MOL’s partnership with Pasha Automotive Services.

(Left to right) Joel Valenzuela, Manager, Trade Development for the Port of San Diego; Board Chair Sylvia Rios; Port Commissioner Laurie Black; Stan Gabara, Executive Vice-President, Pasha Automotive Services; Yuishi Fukuda, Dept. Manager, Honda North America Division; Takashi Kaneko, Assistant Manager, Honda North America Division; Hidefumi Miura, Senior Staff, Honda North America Division and Ron Popham, Senior Director, Maritime, Port of San Diego at the Honda Motor Company headquarters in Tokyo, Japan.

In Tokyo, we met with ACT Maritime, which ships Honda automobiles to San Diego. The Port and Pasha Automotive Services have enjoyed a great working relationship with this company over the years. ACT Maritime committed to continue working with the Port and Pasha to maintain high-quality service in delivering Hondas to the U.S. market. We also met with Mitsubishi Heavy Industries, which ships windmill parts to our port and are discussing receiving windmill towers from China. In addition to these companies, and the Tokyo office of ECL, we visited K-Line Auto Carrier, Mitsui Osk Lines, Wallenius Wilhelmsen, the Japan Self-Defense Forces and Honda. The Japan Self-Defense Forces holds training exercises annually in San Diego and in Yuma, Arizona and has used the Port as a port of entry for its training equipment and vehicles.

The Port of San Diego receives about 250,000 Hondas annually. During our visit with Honda representatives, they expressed that they would like to ship high-end manufacturing equipment to Indiana through the Port of San Diego.

After meeting with our customers and potential new customers, it is clear to see why the Port’s maritime business plan projects an annual cargo growth of 15 percent. Many Asian companies that work with other West Coast ports may be looking to expand to niche ports, like ours, to meet their needs. We are committed to sustaining our great relationships with our maritime customers and will be vigorously pursuing upcoming cargo opportunities.

(Left to right) Ron Popham, Commissioner Laurie Black, Chair Sylvia Rios and Joel Valenzuela with staff from the Korea House restaurant in Seoul, South Korea.

Also in this issue…

“Bahia del Sol at the Big Bay” a Big Success

New Board Officers Elected for 2008

Three New Environmental Projects Approved for Funding

“Bahia del Sol at the Big Bay” a Big Success

A pilot project to spruce up Embarcadero Marina Park North kicked off this month with great fanfare. “Bahia del Sol at the Big Bay”, is a pilot project that the Port of San Diego is trying out to enliven Port parks. The goal for this project is to encourage visitors to use the parks. To accomplish this, the Port purchased patio furniture and games like croquet, checkers and chess. Musical performances and kite flying exhibitions rounded out the day’s activities as visitors sat back and took in the great views. A Port of San Diego informational booth was set up and Port staff were on hand to answer questions and take suggestions from the public. The project will continue throughout October and the Port may try it at its other parks in the future.

Visitors to Embarcadero Marina Park North enjoy a game of giant chess as part of the pilot project “Bahia del Sol at the Big Bay.”

New Board Officers Elected for 2008

At the October 9 Board of Port Commissioners meeting, the new officers for 2008 were elected. Commissioner Mike Bixler will be the new Chair and Commissioner Stephen P. Cushman will be the Vice Chair. Commissioner Dukie Valderrama will serve as Secretary.

Commissioner Bixler was appointed to the Board in 2002 to represent the City of Imperial Beach. His civic duties included serving as mayor of Imperial Beach from 1990 to 1998. While mayor, he also served as the chairman of the San Diego Association of Governments and the California Council of Governments. Commissioner Bixler currently is a vice president of Merrill Lynch Private Client Group.

Commissioner Cushman was selected in 1999 to represent the City of San Diego as one of the three San Diego commissioners. He was reappointed to his third term in March 2007. Commissioner Cushman has served his community extensively, with a background that includes participation on more than 60 boards and commissions. He is the chairman of the College of Business Administration Board for San Diego State University, Chairman of the Board of Directors for the Pacific Life Holiday Bowl, and is Vice Chair of the Board of Directors, San Diego Hospital Association. He was president of Cush Automotive Group until 2006.

Commissioner Valderrama has been on the Board since January 2005. Sworn in to represent the City of National City, he served for two years as a Director on the San Diego County Water Authority Board and was a member of the agency’s Engineering and Operations Public Affairs Special Budget Committee. His civic duties include serving on the City of National City’s Park and Recreation Commission and Chairman of the City’s Planning Commission. He was also the Chairman of the Board of the San Diego Construction Council, Inc. He is currently the President of A-D &D Drywall, Inc. and West Coast Scaffold, Inc.

Three New Environmental Projects Approved for Funding

The Port of San Diego’s Environmental Department has three new projects to add to its growing list of funded environmental projects. At the October 9 Board of Port Commissioners meeting, the Board unanimously approved funding for a project that will study the effects of copper contamination on organisms that live on the seabed of San Diego Bay. Scripps Institution of Oceanography will conduct the study, which will examine the tissue of the organisms, to determine the level of copper concentration. The study will examine how much copper found in the Bay can be attributed to copper-based paints. The paint was once routinely used to paint the hulls of recreational vessels to prevent deterioration. The study will be conducted over a two-year period and will cost about $173,046.

Another project receiving funding will restore parts of the D Street Fill, an area once used for nesting by the Western Snowy Plover. The area is located south of the Sweetwater Channel in South San Diego Bay. The San Diego Audubon Society will perform the project, which includes removing invasive plant species and replacing them with native plants. The Port is hopeful that the restoration will encourage the endangered bird to return to the site and reproduce. The project will be conducted over one year at a cost of $25,515.

A project to remove debris in Chollas Creek was the third project approved by the Board. Although Chollas Creek is technically off the Port’s tidelands, its waters flow into San Diego Bay. During the rainy season, the creek becomes extremely polluted. There will be weekly cleanups of the creek, performed by Urban Corps of San Diego. The Urban Corps is working with Groundwork San Diego, a non-profit environmental organization, to conduct field trips to the site with local elementary school children. The students will learn how removing invasive plant species and replacing them with native plants enhances the area’s habitat. This project will take place over two years at a cost of $82,640.

A section of Chollas Creek after a rainstorm. Debris from the creek floats downstream toward San Diego Bay. The Port has granted funding to Urban Corps of San Diego to clean up portions of the creek.