Business at Port's Marine Terminals Shows no Signs of Slowing

Recently we've been reading in the newspapers and watching on the local television news about an idea to double deck the Port of San Diego's Tenth Avenue Marine Terminal so that it could be used for multiple functions, for example, a sports venue. Those supporting the idea believe that the terminal could host a sporting event for the public while the Port conducts its normal maritime activity. There's a misconception floating around that the Port's maritime activity is experiencing a lull and that the Tenth Avenue Marine Terminal could be put to better use.

In reality, the Port's maritime activity is to surging. In March, a shipment of heavy equipment arrived from Korea. The cargo included 24 modules that will be used for a new power plant in Otay Mesa. Some of the modules weighed 173 metric tons. This shipment was the result of a recent trade mission that the commissioners made to Asia. The trip resulted in commitments from the Port's current customers to continue doing business with the Port and also earned the Port several new trade customers.

On a particularly busy day last March, the Port had another vessel off-load 4,500 cubic meters of power and boiler plant parts at the Tenth Avenue Marine Terminal. Two other vessels were working at the same time - one was unloading 3,800 tons of fertilizer and also included three rudder parts for a ship being built at General Dynamics/NASSCO. In addition, a ship working for Dole Fresh Fruit company unloaded a shipment of refrigerated containers with bananas and other fresh fruit. Three fuel barges that transport bunker fuel and marine diesel fuel also conducted normal operations at the terminal throughout the day.

This past fiscal year, ending June 30, 2007, the Port witnessed a 62 percent gain in break bulk cargo. This type of cargo includes bagged cement, fertilizer, lumber, miscellaneous steel products and industrial cargo used for power plants and other building projects. This cargo is referred to as break bulk because the products don't fit into containers.

At the National City Marine Terminal, auto imports are also seeing an increase. Automobile imports were up by almost 19 percent and that number is expected to grow with the potential of new auto business from China.

Last year, the Port released its Maritime Business Plan. The plan demonstrates that maritime cargo operations generate $1.6 billion annually and support 19,298 regional jobs. The plan also highlights that $100 million in state and local taxes are generated from maritime activity at the Port and forecasts an annual cargo growth of 15 percent.

Bags of fertilizer, each weighing over a ton, were offloaded from the vessel Star Osakana at the Port's Tenth Avenue Marine Terminal on March 17, 2008.

Also in this issue…

Two Harbor Police Officers Presented with Life Saving Commendations

Board of Port Commissioners Authorizes Funding for Fiscal Year 2008-2009 Financial Assistance Program

Port's Fee for Service and Marketing Sponsorship Program Awards $812,500 to 23 Organizations

Port to Seek State Grants to Assist with Reducing Air Emissions

New Development in Store for Shelter Island Marine Sales and Services Site

Spotlight on Tenants: The Jankovich Company

Capital Development Program for Fiscal Years 3009-1013 Receives Commissioner Approval

Two Harbor Police Officers Presented with Life Saving Commendations

Corporal David Marshall and Officer Brad Wiebke of the Harbor Police Department were recognized at the April 8 Board of Port Commissioners meeting for their roles in a county-wide police incident that took place on December 31, 2007. The two officers were presented with life saving commendation award certificates and life saving shirt bars to wear on their uniforms for saving the life of a suspect who fell over the San Diego-Coronado Bay Bridge. The officers also attempted to save the life of a City of Oceanside K-9 unit that went over the bridge with the suspect.

The chase began in Oceanside when a California Highway Patrol officer noticed the suspect driving erratically on Interstate 5. Ignoring the officer's orders to stop, the suspect continued to drive south on the freeway, ultimately ending up on the San Diego-Coronado Bay Bridge. A patrol officer from the Oceanside Police Department, who had also gotten involved in the chase, released its K-9 unit, a Belgian Malinois named Stryker, to subdue the suspect. Both the suspect and Stryker fell over the side of the bridge and into San Diego Bay. The distance of the fall was over 200 feet.

Corporal Marshall and Officer Wiebke were in a Harbor Police vessel and saw where the suspect and Stryker hit the water. They pulled them both from the water and were able to revive the suspect, who at first showed no signs of life. They also attempted to revive Stryker by performing cardio pulmonary resuscitation (CPR), but the dog did not survive. The suspect was taken to an area hospital and continues to recover.

Corporal Marshall is a 13-year veteran of the Harbor Police and Officer Wiebke is a three year veteran.

Harbor Police Officer Brad Wiebke and Corporal David Marshall were presented with Life Saving Commendations on April 8 at the Board of Port Commissioners meeting.

Board of Port Commissioners Authorizes Funding for Fiscal Year 2008-2009 Financial Assistance Program

The Port's Financial Assistance Program awarded $384,800 in cash funding and $161,104 in Port services to several community organizations. The funding is to be used for events or programs that benefit the community by promoting commerce, navigation, fisheries and recreation in one or more of the Port's five member cities. This year, the Port received 55 applications totaling $716,139 in requested funds.

After a team of Port staff reviewed each application and narrowed the amount of funds, the financial Assistance Advisory Committee - a committee comprised of three commissioners, representatives from the San Diego Port Tenants Association and community leaders from the Port's member cities - was presented with staff recommendations. The recommendations were then presented to the Board of Port Commissioners for final approval.

Events that qualify for Port funding must provide recognition of the Port's sponsorship in all of their marketing and publicity and provide evidence that at least 25 percent of their budget is provided by other sponsors.

Some of the groups receiving funding for the fiscal year 2008-2009 are the Alpha Project for the Homeless Winter Shelter Program, California Ballet Association's California Heritage Project and the San Diego Oceans Foundation White Seabass Restocking Project.

Port's Fee for Service and Marketing Sponsorship Program Awards $812,500 to 23 Organizations

The Port of San Diego's Fee for Service program, a program to sponsor or contract with organizations in exchange for a service that directly assists the Port with achieving its strategic goals, awarded $812,500 to 23 organizations. The amount was approved by the Board of Port Commissioners at the April 8 Board meeting. In addition, 13 organizations will receive assistance through District services. Services may include assistance with special events that may need electrical power, trash pickup, parking assistance or help with setting up equipment. The estimated amount for Port services is $660,000.

In order to qualify for funding, applicants must provide proof that their event or program provides direct benefit to the Port, businesses on Port tidelands and the greater San Diego region.

Organizations receiving funding for the fiscal year 2008-2009 include the Maritime Museum of San Diego for the Festival of Sail, the San Diego Armed Services YMCA for the annual 4th of July fireworks show and the San Diego Economic Development Corporation.

Port to Seek State Grants to Assist with Reducing Air Emissions

The Port of San Diego is moving forward with implementing its Clean Air Program and will be applying for two state grants for assistance. Grant funding from Proposition 1B will assist with measures aimed at reducing air emissions associated with operations at the Tenth Avenue Marine Terminal. Funding is intended to be used to replace or retrofit older model trucks doing business at the Port and installing shore-side electrical power at the Tenth Avenue Marine Terminal. Funding from the State of California Carl Moyer Grant program will also help with this measure. At its March 4 Board of Port Commissioners meeting, the Board authorized the Port to apply for funds available in the two grants.

The Port's draft Clean Air Program was presented at the February Board of Port Commissioners meeting. The program identified four methods to reduce air emissions around Port tidelands. These include replacing or retrofitting older model trucks, replacing or retrofitting cargo handling equipment, requiring ships in port to plug into shore power and reducing the speed of vessels traveling to and from San Diego Bay.

It is estimated that the cost to replace an older model truck is $100,000 and the cost to retrofit trucks with a diesel particulate filter is $10,000. The cost to install shore-side power at the Tenth Avenue Marine Terminal is between $3 million and $5 million per berth.

State law will require that the Port of San Diego have shore side power available by 2014. In addition, the state will begin enforcing truck replacement and retrofitting in December 2009. The Port would like to implement these programs sooner to help improve the air quality in the neighborhoods adjacent to the terminals.

New Development in store for Shelter Island Marine Sales and Services Site

A Marine Sales and Services site on Shelter Island Drive will soon be redeveloped to include a new, two-story, 10,850-square foot building with a modern, nautical design. At the March 4 Board of Port Commissioners meeting, the Board authorized a 60-day exclusive negotiating agreement with Island Partners, LLC to develop a marine sales and services site on Shelter Island. If all terms of an option and lease are agreed upon between the Port and the developers during the 60-day period, then the project can move forward. The development will be Leadership in Energy & Environmental Design (LEED) Certified, a national recognition that requires the use of sustainable materials and conservation of water and energy.

Other aspects of the project include a new, 9-foot wide public promenade and public art. The developers will also be working with the Marlin Club of San Diego to provide space for its ongoing activities. The Marlin Club provides a free, certified marlin and fish weigh station for the angling public. The waterside design will include 1,225 linear feet of usable dock space with 25 boat slips. The parking lot will include spots for 42 vehicles, two new driveways and accessible parking.

A rendering of the Shelter Island Marine Sales and Services building on Shelter Island, as proposed by Island Partners, LLC.

Spotlight on Tenants: The Jankovich Company

New Double Hulled Fuel Barge at Tenth Avenue Marine Terminal Provides Service to Cruise and Cargo Vessels

Port of San Diego tenant The Jankovich Company has been providing bunker fuel and marine diesel fuel to cargo and cruise vessels since 1991. In addition, the company provides jet fuel to airlines serving the San Diego International Airport.

Fuel for vessels is transported by barge and via pipeline at the Port's Tenth Avenue Marine Terminal, while the fuel for the airport is delivered by way of an intricate underground pipeline system.

The Jankovich Company operates the fueling facility at the Tenth Avenue Marine Terminal, where three of the company's six fuel barges are berthed. The barge Payton J is a brand new, double-hulled design that helps protect the environment. This type of design is mandated for all barges by the year 2015 and prevents any fuel spill from a penetration of the outer hull. If this were to happen, the interior hull would prevent any leakage of petroleum.

The new fuel barge was built in Oregon and can carry 13,000 barrels of heavy fuel and 1,200 barrels of diesel fuel. The fuel is used to service cruise and cargo vessels calling the Port. The availability of fuel at the Tenth Avenue Marine Terminal has played a major role in increasing the number of cruise ships operating in San Diego. As with most maritime businesses, The Jankovich Company provides 24-hour, seven days a week service to the maritime industry.

Port tenant The Jankovich Company has purchased a new double-hulled fuel barge. The barge is safer for the environment because its double hull design helps prevent against fuel leaks. Here the barge is being used to supply fuel to Holland America's cruise ship, Zaandam.

Capital Development Program for fiscal years 2009-2013 Receives Commissioner Approval

The Port's Capital Development Program for fiscal years 2009-2013 was adopted by the Board of Port Commissioners on March 4. Nearly $96 million was allocated to continue funding projects that are in the current Capital Development Program, plus eleven projects that were designated as high priority. The high priority projects include providing shore power at the Tenth Avenue Marine Terminal, Cruise Ship Terminal and Broadway Pier; funding for preparation of the Environmental Impact Report for wetlands mitigation in the Chula Vista area, relocation of the public restroom at Pepper Park in National City; additional funding for the Palm Avenue Street End Improvement project in Imperial Beach, preliminary design for the cruise ship terminal at the B Street Pier, additional funding for the former BF Goodrich South Campus Pavement and Demolition Project, conference center site demolition in Chula Vista, a feasibility study on a parking garage at Grape Street, Imperial Beach sand replenishment, improvements to the marine terminals and the possible acquisition of maritime property.

A rendering of the proposed design for the Palm Avenue Street end project, one of the projects in the Port's Capital Development Program.