Issue link: http://digital.nexsitepublishing.com/i/42918
News, Trends, Analysis 9 transportation, energy, natural resources, utilities, water, communications and other social support services. "We remain committed to California's future and the investment opportunities that run deep between our coastline, mountains and valleys," said Rob Feckner, President of the CalPERS Board of Administration in a statement. "We are prepared to increase our investments in infrastructure with our first and foremost goal being on investment returns, and a secondary goal of supporting essential community services that are crucial to continued economic development, a safe environment, and healthy schools and communities." CalPERS said it has already invested $203 million in physical infrastructure and infrastructure-targeted private equity funds around the state. CalPERS said its pension fund has also lent its "AAA" rating to California cities and counties for credit enhancement of more than $326 million in infrastructure bonds. "Infrastructure is an integral part of the CalPERS investment portfolio," said George Diehr, chair of the CalPERS investment committee. "We're looking for long-term economic value by providing safe, reliable, efficient and high quality services that are vital to California that not only meet our risk- return objectives, but that we believe have the extra benefit of creating jobs and ultimately improving the economic climate," Diehr said. The CalPERS investment staff is expected to bring an outreach and implementation plan back to the Pension Fund's Investment Committee in October. million vehicles being hauled in the next six months — the most such collective volume in at least five years. "The one thing that's supporting their business is car carriers," said Janet Lewis, a Hong-Kong based Macquarie Group Ltd. analyst in an interview with Business Week. "Dry-bulk is at an abysmally low level and container ships are making a loss," she said. The ocean auto-carriage sector with its specialized vessels has reportedly been immune to the drop in rates in other shipping markets due to long-term contracts that make it difficult for any new potential competitors to enter that marketplace. "It's very difficult for lines to enter the Japanese and South Korean markets because local companies are so strong," said Huang Xiaowen, managing director of China Shipping Container Lines Co in the Business Week report. After Japan's auto exports took a server hit after that country's major natural disaster in March, a rebound could reportedly occur in part due to domestic manufacturing facilities getting back to full production speed by the end of October. Europe's largest auto-carrier, Wallenius Wilhelmsen, reported a "strong rebound" in its Japan business in June, according to an email to Business Week by the shipping firm's chief financial officer, Benedicte Bakke Agerup. "The Japanese car producers have shown an impressive performance in getting production and export back to almost pre- tsunami levels," she said. For the full Business Week story: www.businessweek.com "Our issue right now is to take a look at what's been happening and where we are today and how do we end up improving the performance of the port going on from here on out," Connaughton said in an interview after speaking at a Hampton Roads Global Commerce breakfast function as reported by the Virginian-Pilot. Virginia Governor Bob McDonnell replaced 11 of 12 VPA board members this summer amid reported concerns from state leadership over the port authority's slower rebound from the recession than close competitors New York-New Jersey and Savannah. "The thing is that we just were looking at the board and saying, 'OK, how do we get the strongest board possible to deal with the situation?'" Connaughton said. The state D.O.T. secretary reportedly said VPA Executive Director Jerry Bridges' job is secure, but that several areas of the port's business will be scrutinized. "Is it the structure? Is it the people? Is it the focus?" he queried. The VPA receives $35 million a year from the state for capital improvements combined with millions of dollars in revenue bonds, the Virginian-Pilot reported. The port has a capital plan that projects its Hampton Roads facility should have the capacity to handle 9.5 million TEUs by 2040. "To get there, that means [the port has] to start growing — today — 250,000 TEUs per year," Connaughton said. For the full Virginian-Pilot story: hamptonroads.com www.cargobusinessnews.com September 2011 T