Issue link: http://digital.nexsitepublishing.com/i/269434
24 February 2014 www.cargobusinessnews.com porT NewS porT NewS pmSA heAd: "poliTicAl drAmA" AT loNg beAch porT ThreATeNS AbiliTY To compeTe P a c i f i c M e r c h a n t s S h i p p i n g Association President John McLaurin spoke directly of the "political drama" at the Port of Long Beach and how it damages the competitiveness of nation's busiest port complex in his first State of Trade and Transportation address in early February. Laying out the worries of shipping lines and terminal operators, McLaurin said the ongoing "political drama" between Long Beach city and harbor o f f i c i a l s a n d i n s i d e t h e H a r b o r D e p a r t m e n t t h r e a t e n e d t h e p o r t , which has "long has been the goose that laid the golden egg for the city of Long Beach." "My members — the tenants and customers of the Port of Long Beach who are responsible for over 70 percent of the revenue generated at the port — are tired of the drama and theatrics," McLaurin said. He pointed to effects of the port power struggle, ranging from infighting among harbor commissioners to Mayor Bob Foster's 2010 veto of a $220-million port headquarters he said was too expensive. D r a m a o v e r t h e p a s t f e w m o n t h s includes the city's review of port travel, Foster's removal of former harbor board President Thomas Fields in November, and two days later the resignation of former Harbor Commissioner Nick Sramek, who said he was fed up with commission politics. Fields and Sramek attended the trade talk. The PMSA head highlighted the loss of people from the Harbor Commission and staff, including Fields, Sramek, and former executive director Chris Lytle, who jumped ship to lead the Port of Oakland in the summer. " T h e s e d e p a r t u r e s h a v e b e e n a function of politics rather than normal organizational turnover," McLaurin said. "It's been suppressed, and I think what John did was bring it out in the open, and it's critical now because we're in an election year," Fields said, referring to political tension at the port. "We are going to have a new mayor and possibly seven new council members. I just hope that these people are far more aware of the significance of this port and how it impacts not just the city, but the region and this whole country. … We need to get our act together." "It felt like a shot across the bow about how we're doing things," Long Beach mayoral candidate Doug Otto said. For more of the Press-Telegram story: presstelegram.com T e r m i N A l g i A N T p o r T S A m e r i c A refiNANceS debT U.S. terminal operator Ports America announced it refinanced the debt of both Ports America, Inc. and MTC Holdings into a single, unified capital structure. "This financing consolidates the separate legacy credit facilitates of MTC and PAI into one integrated financing and provides for a long-term capital structure that will give the company the flexibility and runway to continue to be successful," said Kevin Brown, Ports America's chief financial officer. The refinancing consisted of a new 5-year, $475-million senior secured c r e d i t f a c i l i t y, t h e c o m p a n y s a i d , including $170 million of revolving credit and letters of credit, and new 7-year, $375-million Holdco financing. The senior facility was provided by a group of new and existing lenders led by Royal Bank of Canada, and CPPIB Credit Investments provided the Holdco facility. CPPIB will own 10 percent equity participation in the company, while H i g h s t a r C a p i t a l w i l l r e m a i n t h e majority owner of Ports America, the statement said. "The refinancing and investment allows us to continue to strengthen our position as an industry leader and best in class terminal operator," said Ports America CEO Michael Hassing. "Most importantly, our management and staff remain dedicated to ensuring future growth, value creation, and world class customer service." Ports America, headquartered in New Jersey, currently operates in more than 42 ports and 80 locations. JAxporT AwArdS icTf deSigN/build coNTrAcT JaxPort announced this week it has made a deal for an intermodal container transfer facility to be built and designed by The Dana B. Keynon Company. The ICTF, to be located at Dames Point, will facilitate the direct transfer of containers between ships and trains. "The construction of an ICTF is an absolute requirement for our port to remain competitive and to ensure we are offering the best services to our customers," said JaxPort CEO Brian Taylor. Expected open for business in 2015, the port says the new complex will provide existing and future customers with enhanced intermodal connections, including direct access to CSX rail lines and the U.S. highway system, including I-95, I-10, I-295 and I-75 via I-10. The U.S. Dept. of Transportation awarded JaxPort a $10 million TIGER g r a n t t o w a r d t h e d e v e l o p m e n t o f the facility, and the State of Florida Department of Transportation will contribute $20 million to the project. The Jacksonville, Florida port has issued a request for proposals from qualified firms to serve as a Rail Yard Operator, which will be responsible for the management, maintenance and operations of the ICTF. heAd of porT AuThoriTY of NY/NJ orderS probe iN bridge ScANdAl Port Authority Executive Director Pat Foye has ordered the bi-state agency's inspector general to investigate the