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The Business Journal presents a special report on the San Pedro Bay ports and a focus on financial services.
Citation preview
11th Annual Pulse of the Ports:Peak Season Forecast
Wednesday, April 29, 2015 | 7 to 10 a.m. Event will be webcast live at www.polb.com/pulseports
2015 SOUTHERN CALIFORNIA
Cover1Cover4PortWrapApril14_PortAnniversary 4/24/15 10:23 AM Page 1
Mo�att & Nichol
Mallory Alexander International Logistics
Mediterranean Shipping Company (USA)
Federal Maritime Commission
BNSF Railway
Duncan and Son Lines, Inc.
UPS, South California District
Journal of Commerce
11th Annual Pulse of the Ports:Peak Season Forecast
Make your reservations online at www.polb.com/pulsersvp
Wednesday, April 29, 2015 | 7 to 10 a.m. Pacific Ballroom (Sports Arena) at the Long Beach Convention Center 300 E. Ocean Blvd. Long Beach, CA 90802 Event will be webcast live at www.polb.com/pulseports Event Parking: Parking structure next to the Pacific Ballroom Complimentary breakfast and free parking
2015 SOUTHERN CALIFORNIA
All Clear? Ready fWith the Poris the supply chain r
o Clear? Ready f for a Pts of Long Beach and Los With the Por
eady fis the supply chain r
eak?or a PAngeles digging out and getting back to normal,ts of Long Beach and Los s peak shipping season? Hear industr’earor this yeady f
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Donna Lemm,Mallor
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esident Prornia District South Calif
Q&A ModerBill Mongelluzzo,Journal of Commer
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Senior Editor
Cover1Cover4PortWrapApril14_PortAnniversary 4/24/15 10:23 AM Page 2
April 28-May 11, 2015 www.lbbusinessjournal.com
SPECIAL REPORT – FOCUS ON THE SAN PEDRO BAY PORTS – PAGES 20-36
The Port Of Long BeachWorking Towards A Better Supply Chain And Planning For A Competitive Future
� By SAMANTHA MEHLINGER
Senior Writer
L ast August, Jon Slangerup became chief executive of the Port of Long Beach (POLB)
during one of the most challenging times in its history, as it contended with unprece-
dented levels of congestion and gridlock throughout the supply chain. As the port comes
out on the other side of that congestion, Slangerup is focused on restoring port operations
to full velocity, and creating the superior infrastructure and supply chain efficiencies nec-
essary to compete with other ports, not just regionally but throughout the world.
“Our goal here collectively through the port complex is to not just recover but to actually
increase and improve our value proposition through certainty of [cargo] delivery and ve-
The Port Of Los AngelesImproving Supply Chain Efficiencies
And Investing In The Future� By SAMANTHA MEHLINGER
Senior Writer
G ene Seroka assumed the role of executive director of the Port of Los Angeles(POLA) in the midst of what he and others in his field have often referred to as a
“perfect storm” of changing variables impacting the supply chain – a labor dispute, a short-age of truck trailers needed to move containers, larger vessels calling the port and otherissues all converged at once to create unprecedented congestion. That storm resulted in amassive line of 35 ships at anchor in the early months of 2015, and cargo stacked on dockswaiting for distribution and shipment.Since then, the dispute over longshore workers’ contracts has been settled and both San
Port of Long Beach Chief Executive Jon Slangerup
Port of Los Angeles Executive Director
Gene Seroka
Changing Economic Factors And Potential Impacts To TheFinancial Services Industry
City’s Police, Fire DepartmentsSeek ‘Alternative Funding
Sources’ As Budget Cuts Loom� By SAMANTHA MEHLINGER
Senior Writer
D espite slower than ex-pected growth in the na-
tional economy in the firstquarter, economists have a posi-tive outlook for the national andstate economies for the remain-der of the year. Strong economicfundamentals such as job growthand rising incomes lend them-selves to more spending and in-vestment activity, which shouldboost the financial services in-dustry. The main caveat to thatoutlook is the unanswered ques-tion as to what effect an expectedincrease in the federal funds ratewill have on the industry.During the first quarter of 2015,
the U.S. economy was hindered bya few factors, all of which weretemporary disruptions. Accordingto Mark Vitner, managing directorand senior economist for WellsFargo, and Steven Cochrane, man-
aging director of Moody’s Analyt-ics, those factors included: mas-sive congestion at West Coastports, which hindered shipmentsand retail sales; a drop in oilprices, which caused decreased in-vestment and hurt job growth inthe energy industry; and bad win-ter weather in the Northeast.“All of that could very well have
cut the pace of economic growthby about half of what we mighthave expected in the first quarter,”Cochrane said. For the most part,with the exception of a lag in in-vestments in energy, the factorscausing the slower growth are inthe rearview mirror.Although economic growth was
stifled a bit on the national scale,Vitner said California fared better.“While the U.S. economy slowedin the first quarter, there is reallyno evidence California’s economyslowed,” he said.“We’re seeing that job growth re-
Councilmember-elect Daryl Supernawand his wife, Cheryl, are all smilesafter declaring victory on electionnight. See story on Page 5 (Photo-graph by Diana Lejins)
� By SEAN BELK
Staff Writer
W ith a $12 million budgetcut to public safety ex-
pected over the next three fiscalyears because of rising pensioncosts and declining oil revenue,police and fire departments, al-ready operating with skeletoncrews, are now exploring “alterna-tive funding sources.” The Long Beach City Council’s
Public Safety Committee, at anApril 17 meeting, discussed theoptions, including applying forgrants, imposing a first responderfee, partnering with nearby agen-cies and creating a fire district. The committee is composed of
3rd District Councilmember SuziePrice, who serves as chair, 8thDistrict Councilmember AlAustin, who serves as vice chair,and 5th District CouncilmemberStacy Mungo, who serves as amember but who was absent.
During a budget study sessionof the city council on March 3,city staff projected a three-yearbudget deficit of $17.6 millionfrom Fiscal Year 2016 to FiscalYear 2018. Next fiscal year, which starts
October 1, the city will see only a$1 million shortfall, according tocity staff. However, staff is expect-ing a $9.3 million deficit in FiscalYear 2017 and a $7.4 milliondeficit in Fiscal Year 2018. Using “proportionate share”
targeted budget reductions thatcap public safety at about 70 per-cent of the General Fund, staffexpects an $8.73 million budgetcut to the police department anda $3.34 million cut to the fire de-partment over the next three fis-cal years. Price and Austin both expressed
concerns about the projected cutsto police and fire departments,adding that both departments have
(Please Continue To Page 26)(Please Continue To Page 24)
(Please Continue To Page 7)(Please Continue To Page 12)
Former U.S. Secretary of Commerceand Trade Representative Mickey Kan-tor sat down with the Business Journalto discuss some of his views on inter-national trade. Ambassador Kantor isbeing honored by the Los AngelesChamber of Commerce at the WorldTrade Week Kickoff Breakfast on May5. See story on Page 31. (Business Jour-nal photograph by Michael Gougis)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:54 PM Page 1
Inside This Issue5 Newswatch
• Daryl Supernaw Overcomes Union, Money To Win• Long Beach Transit Recommends BYD Buses, Again• New, Restored Shops Open Aboard The Queen Mary• ‘Discover Zaferia’ Treasure Hunt Is May 2• ‘Smart’ Parking Meters Being Installed, Higher Rates• Kashiwabara Assistance League’s First Executive Dir.• On Stage Music Academy Celebrates Grand Opening• Beyond LED Lighting Opens In North Long Beach
10 Real Estate• Ocean Center Building Construction Begins In Summer• Scoping Meeting On Civic Center Project Is April 30• Belmont Pool Public Hearing Is May 2• Commercial Real Estate Council Luncheon Is May 21
14 Financial Services• Wells Fargo Continues Small Business Initiative• House Passes Cybersecurity Legislation, Senate Next
16 PerspectiveRealty Views By Terry RossHealthWise By Gary Feldman, M.D.Trade And Transportation By Tom OSmall Business Dollars & Sense By Ben AlvaradoEffective Leadership By Mick Ukleja
18 Art MattersPresented By The Arts Council For Long Beach
19 The Nonprofit PagePresented By The Long Beach Nonprofit Partnership
20 Special Report: San Pedro Bay PortsInternational Trade OverviewPort Of Long Beach’s Slangerup, continued from Pg. 1Port Of Los Angeles’ Seroka, continued from Pg. 1Environmental Progress At Each PortFocus On Security At Both PortsU.S. Customs: Stopping Countefeits In Their TracksInterview With Former Commerce Secretary KantorNautilus International Holding Moving To Long BeachWorld Trade Week Calendar Of Events
Free: Long Beach Business Journal Digital Edition, Monday Morning Coffee, NewsFlash
Sign up at: www.lbbusinessjournal.com • Follow us on Twitter: @LBBizJourn
2 Long Beach Business Journal April 28-May 11, 2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 4:36 PM Page 2
2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:55 PM Page 3
April 2
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:55 PM Page 4
Daryl Supernaw Overcomes UnionMoney, Local
Endorsements To Win Council Seat
� By GEORGE ECONOMIDES
Publisher
Facing a large war chest funded primarilyby unions and a near-unanimous endorse-ment of his prime opponent by localelected officials, Daryl Supernaw pulledout a convincing victory on April 14 in aspecial election for the vacant 4th DistrictLong Beach City Council seat. He is sched-uled to be sworn into office at the May 2city council meeting.Supernaw’s decades of involvement in
the 4th District – which stretches from ElDorado Park on the east to parts of Cam-bodia Town on the west – separated himfrom his top opponent, Herlinda Chico,who was unable to point to any communityservice for district residents.The opposition to Supernaw may have
been unprecedented in Long Beach CityCouncil elections. Supporting union fa-vorite Chico were: Mayor Robert Garcia;Vice Mayor Suja Lowenthal; Coun-cilmembers Lena Gonzalez, Suzie Price,Dee Andrews, Roberto Uranga, Al Austinand Rex Richardson; the Long Beach Po-lice Officers Association; Long BeachFirefighters Local 372; CongresswomanJanice Hahn; State Senator Ricardo Laraand Assemblymember Patrick O’Donnell.And it didn’t stop there: Current schoolboardmembers John McGinnis and MeganKerr, city college trustee Sunny Zia, for-mer assemblymember Bonnie Lowenthaland former state senator Betty Karnettealso opposed Supernaw.Simply put, it was a who’s who of the
Long Beach liberal, pro-union establishment.It was O’Donnell’s vacating of the 4th
District seat that resulted in the specialelection, costing Long Beach taxpayersmore than $160,000. O’Donnell had beenelected to a third term in June 2012, beat-ing Supernaw and telling voters he wouldserve his full four years. Less than 18months into his term, he ran for state as-sembly, replacing Lowenthal, who hadtermed out. Speculation is that O’Donnellthumbing his nose at his 4th District con-stituents contributed to Chico’s loss.The unions invested heavily to get her
elected: $44,150 from the Los AngelesCounty Federation of Labor AFL/CIO;$22,000 from the Long Beach Police Offi-cers Association; and $11,100 from theLong Beach Firefighters Local 372. Addi-tionally, Chico raised more than $65,306 indonations (as of April 8), primarily fromunion groups or individual union members,resulting in more than $140,000 betweenindependent expenditures and donations.Those numbers may increase slightly whenthe final tallies come in. Supernaw raised $23,424 in direct con-
tributions. Independent expenditures camefrom Long Beach Citizens in Support ofDaryl Supernaw ($19,733); Long BeachChamber Political Action Committee($3,331); and Los Angeles County Busi-
ness Federation ($2,969), resulting in atotal of $49,457 or about one-third of themoney backing Chico. Additionally, Supernaw had the support
of retired police officer John Watkins, whofinished a close third in the 2012 primaryfor the 4th District, and L.A. County Su-pervisor Don Knabe. Supernaw also hadeditorial endorsements from the BusinessJournal, Press-Telegram and Beachcombernewspapers.Supernaw told the Business Journal that
he plans to establish a field office “thatwill be maintained throughout my tenure.Many 4th District residents have ex-pressed the need.” �
Long Beach TransitRecommends BYD(Again) For Battery
Bus Contract� By SAMANTHA MEHLINGER
Senior Writer
A little more than a year after LongBeach Transit had to cancel its contractwith Chinese-based company Build YourDreams (BYD) Motors Inc. for 10 zero-emission battery powered buses, thetransit company’s board of directors wasexpected to vote yesterday, April 27, onwhether to yet again award the contractto BYD.The final negotiated terms of the con-
tract with BYD for the purchase of thebuses, plus supporting technology andparts, is $9,675,410. After factoring in theimplementation of wireless electric vehiclecharging equipment and a contingencybudget, the total project cost is$11,069,319, according to a Long BeachTransit (LBT) staff report. “BYD’s proposal was deemed the most
responsive and responsible, and met LBT’srequirements for zero-emission buses,”LBT’s staff recommendation report ex-plained. The report noted that BYD hasprovided 20 battery-powered buses toAmerican customers since 2014. Last year, BYD and Long Beach Tran-
sit mutually agreed to cancel the originalcontract when the U.S. Federal TransitAdministration (FTA) informed the twoparties that BYD had not been in compli-ance with its disadvantaged business en-terprise requirement at the time thecontract was awarded in March 2013.Meeting that requirement was necessaryfor LBT to use a $9.5 million grant it hadreceived from the FTA to fund the pur-chase of zero-emission buses.LBT reissued a request for proposals
for the project last September. Other bid-
April 28-May 11, 2015 Long Beach Business Journal 5
Special Election Results4th District City Council Seat
Daryl Supernaw 2,293 51.7%
Herlinda Chico 1,940 43.7%
Don Lindemann 205 4.6%
Voted at Precincts 6.4%
Voted by Mail 10.2%
Voter Turnout 16.5%Source: City Clerk’s Office, City of Long Beach
NEWSWATCH
(Please Continue To Page 6)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:55 PM Page 5
April 2
ders included Proterra, a North Carolina-based company with a track record forproviding battery powered buses to mu-nicipal governments and agencies, andNew Flyer, a Canadian bus manufacturerwith facilities in Minnesota and Ala-bama. Proterra has provided electric busfleets to five American transit agencies.Information about New Flyer’s past cus-tomer base is not readily available, al-though the company does have a contractto replace the San Francisco MunicipalTransportation Agency’s entire fleet withelectric buses.When BYD originally won the project
contract in 2013, it had no facilities in theUnited States. To meet the FTA’s BuyAmerica requirement, it built a facility inLancaster, California, to construct thebuses. As the contract progressed, somebasic framework was still performed inChina. Faulty work from that facility ne-cessitated LBT to send inspectors toChina to assess the situation. From that point forward, a number of
roadblocks arose. In December 2013, the
FTA halted Altoona testing, required ofall buses hitting U.S. roadways, on thebus model intended for Long BeachTransit when questions arose as towhether or not the correct bus was beingtested.BYD’s Lancaster facility came under
fire in late 2013 from the state depart-ment of industrial relations, which citedthe company for paying Chinese workersat that location less than minimum wage,providing inaccurate or incomplete wagestatements, and not allowing two 10-minute rest breaks each shift. The mini-mum wage citation was dismissed whilethe latter two issues were upheld with re-duced fines. In the midst of these issues, BYD hired
famed attorney Lanny Davis, perhapsbest known for his work for Hillary andBill Clinton, to represent the company’sinterests.If approved, the project is to be funded
by the FTA’s $9.5 million Transit Invest-ments for Greenhouse Gas and EnergyReduction grant, California Proposition1B Bonds and a $700,000 grant from thePort of Long Beach.LBT spokesperson Kevin Lee said that,
if everything goes smoothly, the busesshould be delivered by fall of 2016. �
6 Long Beach Business Journal April 28-May 11, 2015
� By SAMANTHA MEHLINGER
Senior Writer
Restored to recall its glory days of more than 80 yearsago, the shopping gallery at the Queen Mary formallyopened on April 23 with all new shops, after undergoingmonths of renovation.The gallery, located on the ship’s Promenade Deck, en-
compasses 2,000 square feet of retail and lobby space.Restoration began when Event Network, a merchandisingand retail services company, was hired by the Queen Maryoperators to revitalize the ship’s shopping experience.The task of restoring the shops to their former glory
involved attention to detail such as matching originalwood surfaces, according to a press release from theQueen Mary. In some cases, it was discovered that orig-inal features of the ship had been covered up for func-tionality purposes. During the ceiling restorationprocess, for example, acoustical tiles were removed touncover features that had long been concealed.“We are willingly obliged to ensure that any repairs or
improvements to the ship are in keeping with original de-signs and historic preservation standards,” John Jenkins,general manager of the Queen Mary, said in the QueenMary’s statement. “These demands resulted both in chal-lenges and construction delays; but the end-result is cer-tainly worth the effort, and I’m sure our guests will agree.”
Throughout the shops, restoration work includedmatching and installing linoleum flooring, restoring amarble fireplace hearth and installing “rectangular tuftedleather panels” reflective of work done to the QueenMary following World War II. Non-original light fixtureswere also removed and replaced.“These and other painstaking upgrades were made for
one reason alone; there is no other ship anywhere likeour Queen Mary,” Jenkins stated.New shops include: the Portside Marketplace, with
women’s gifts, apparel and souvenirs; the CenterlineBoutique, with gourmet foods and desserts; the Star-board Shop, with men’s accessories and furnishings;and a wine tasting room serving Malibu Family Wineryvintages. There is also a new Wyndham Vacations Vis-itor’s Center. “When Cunard designed the ship’s interior spaces,
there was a master plan,” Jenkins stated. “Warm, lux-urious interiors welcomed shoppers with a nautical el-egance that was all Queen Mary. To resurrect thisexperience and to rekindle that spirit throughout theship . . . including our retail outlets . . . continues tobe my priority.” The shops at the Queen Mary are open daily from 10
a.m. to 10 p.m., subject to change. �
(PhotographS by the Business Journal’s Evan Patrick Kelly)
New, Restored Shops Open Aboard The Queen Mary
The wine tasting room and emporium at the Queen Mary is oneof several new shops put in place by Event Network, a firm hiredby the Queen Mary to revamp its shopping gallery. Johanna Felix(left), media representative for the Queen Mary via FreemanMcCue Public Relations, celebrates the opening of the new shopswith Jennifer Wolfe, wine tasting room manager.
The Queen Mary’s new Starboard Shop sells men’s accessories and apparel as well as furnishings and gifts.
Queen Mary visitors enjoy glasses of Malibu Family Wine vintages outsidethe ship’s new wine tasting room and emporium, which is part of its recentlyrenovated shopping gallery.
NEWSWATCH
Transit Board Expected
To Select BYD Bus(Continued From Page 5)
‘Discover Zaferia’ Treasure Hunt Is May 2The East Anaheim Street Business Alliance (EASBA) is hosting its third annual “Discover Zaferia” treasurehunt event this Saturday, May 2. Registered participants will walk the historic business district alongEast Anaheim Street between Junipero Avenue on the west and Pacific Coast Highway to the east, look-ing for answers to clues they receive at the start of the event. Participants will find prizes and answerswhile collecting raffle tickets from participating businesses along the way. For a $5 registration, partic-ipants receive an event t-shirt and lunch. At the conclusion of the event, participants will have severalchances to win prizes worth up to $5,000. The finish line festival, sponsored by Farmers & MerchantsBank (F&M), features family-friendly activities. Registration begins at 9 a.m. at the F&M Bank parkinglot at 3104 E. Anaheim St. EASBA represents nearly 400 businesses that are part of the East AnaheimStreet Business Improvement District. For more information or to register, visit www.zaferia.com or call562/494-3800. Pictured are: Rod Wilson, left, EASBA president, and Jim Scallon, managing partnerof Coastal Motor Group Collision Center. (Photograph by the Business Journal’s Evan Patrick Kelly)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:55 PM Page 6
already been scaled back because of priorbudget deficits. “I just don’t know how they could func-
tion given the needs of our city and thecurrent staffing levels at both of those de-partments,” Price said at the committeemeeting. “It’s just inconceivable to methat we could have a functioning policeand fire department with another $12 mil-lion cut. Both departments have taken amajor hit.”Austin noted that the police depart-
ment’s gang enforcement unit was elimi-nated two years ago because of budgetcuts, adding that then-Police Chief JimMcDonnell had stated the departmentwould direct other resources to make upfor the loss. “The gang enforcement unit was elimi-
nated and I had some great reservationsabout that and I still do,” Austin said. “Ithink we need to focus more in that area interms of crime and activity throughout alarge part of our city.”Long Beach Deputy Police Chief David
Hendricks said an additional funding op-tion is for the police department to try totap into more state and federal grants. He said the police department already
applies for federal grants through theUrban Areas Security Initiative (UASI)and the Port Security Grant Program andstate grants through the CaliforniaCoverdell Program and the State Commu-nity Oriented Policing Services (COPS)Grant Program. Hendricks said the police department
also receives funding through AB 109 andgrants from the California Office of Traf-fic and Safety. Fire Chief Mike DuRee said the fire de-
partment is looking at similar grant op-portunities; however he noted that somegrants come with hiring requirements and“financial burdens” that the departmentmight not be able to fulfill. “Some fit and some don’t,” he said.
“The ones that do fit we compete for, and,as I mentioned earlier, we get a prettygood amount of those and we try to de-ploy the funding appropriately.”The next funding option the department
is looking at, DuRee said, is utilizing a“first responder fee,” which would in-volve charging for emergency medicaland ambulance services. He said pending state legislation would
allow the city to receive a larger portionof federal funding if the city were to im-pose a first responder fee that DuRee saidwould recover costs for treating and as-sessing patients on the scene. He said fire agencies in California that
utilize a first responder fee include thecities of Anaheim, Sacramento, Glendale,Pasadena, Folsom and Novato.“The fire department continues to ex-
plore the first responder fee as a potentialrevenue source and we do plan on provid-ing written communication on this subjectto the full city council in the comingweeks,” DuRee said. In a memo sent to Councilmember
Price, the Long Beach Firefighters As-sociation (LBFA) Local 372 proposesthat the city form a fire district as an al-
ternative funding source, adding thatthere is no more room to cut at the firedepartment.According to the memo, the fire de-
partment’s staff is at a “historic low” of111 personnel, and since 2004 the de-partment has had to cut 77 sworn fire-fighters and eliminate six fire enginesand one fire truck. The LBFA states that response times
for fire service are increasing and the de-partment is running out of ambulancesavailable to respond to 911 calls, addingthat there is no surge capacity when majorincidents occur, and that the departmentis running out of operational personnel tohandle the current call volume. “The fire department has endured dev-
astating cuts over the past decade and, tobe frank, further cuts to sworn operationalpersonnel will result in putting citizen’slives at risk along with the lives of oursworn firefighters,” the memo states.In a phone interview with the Business
Journal, Rex Pritchard, president of theLBFA, said that creating a fire districtwould work similar to the city’s enterprisefunds for gas and water departments inthat it would be separated out from theGeneral Fund. The way it would work is that a portion
of property taxes would be dedicatedspecifically to support the fire depart-ment. Residents would have the option ofpossibly increasing the property tax allo-cation, but that wouldn’t necessarily be arequirement, he said. “We can’t go down the same course
we’ve been going down,” Pritchard said.“There’s something that has to be lookedat . . . There are many different ways toapproach this, but something has to hap-pen. We just can’t cut sworn firefightersanymore.”According to the LBFA, the cities of
Brea and Fullerton have already imple-mented such a model. Another option is for the fire depart-
ment to subcontract out its services toneighboring government agencies, suchas the City of Signal Hill or Los Angelesor Orange counties, which would enableto city to receive additional funding. DuRee said he isn’t sure Signal Hill
would be open to the option since the citydiscontinued contracting with LongBeach for fire services years ago, optingto stay solely with the Los AngelesCounty Fire Authority. However, he saidsubcontracting out services to the City ofCompton might be another possibility. “If the opportunity was there, we would
be interested in exploring that discussion,sure,” DuRee said. Meanwhile, both departments are look-
ing at additional ways to tighten theirbelts and streamline operations. For instance, Hendricks said that by the
end of this year the police department isimplementing a new system that allowscitizens to file their own police reportsonline for nonemergency property crimes,thereby dedicating resources toward moreserious crimes. Price ordered that the discussion be
continued to the next Long Beach PublicSafety Committee meeting in the next fewmonths before being forwarded to theLong Beach City Council’s Budget Over-sight Committee and the full city councilfor further review. �
April 28-May 11, 2015 Long Beach Business Journal 7 2015
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ings; inery
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Alternative Funding For
Public Safety Sought(Continued From Page 1)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:55 PM Page 7
Long Beach Installing New ‘Smart’Parking Meters, But The Rates Are Higher
� By SEAN BELK
Staff Writer
The City of Long Beach has begun in-stalling more than 1,600 “smart” parkingmeters that accept debit cards and creditcards, phasing out coin meters, in thedowntown area and on 2nd Street in Bel-mont Shore. With the new parking meters, however,
rates will increase from 50 cents to 75cents an hour in Belmont Shore, to $1 anhour in the downtown area, to $1.50 anhour in the downtown “core” and to $2 anhour at The Pike. According to a statement from the city,
the smart meters will “improve LongBeach’s on-street parking to meet consumerneeds and desire for payment convenience.”As parking meters are installed over a
four-week period, the new rates will takeeffect immediately, according to city staff.The city is offering a “First Five Free” pro-gram that allows drivers to park free forfive minutes for quick errands.The new meters come with large, backlit
screens that inform motorists when a meteris not enforced for a holiday or specialevent. Users can also prepay time up to twohours before paid parking periods begin. Motorists will also eventually be able
to locate parking on a smart phone appthat identifies open parking spaces, ac-cording to city staff. City staff said that the city is maintain-
ing its practice of net revenue neutrality,so the costs of the meters don’t exceedrevenue collected. The new meters don’t accept “cash keys”
but will accept credit cards at no extracharge, according to city staff. The parking meters are enforced from 10
a.m. to 7 p.m., excluding holidays, in Bel-mont Shore; 9 a.m. to 9 p.m., includingholidays, in the downtown core; 9 a.m. to6 p.m., excluding Sundays and holidays, indowntown; and 9 a.m. to 9 p.m., includingholidays, at The Pike. �
Kashiwabara Is the FirstExecutive Director Of TheLocal Assistance LeagueAnnette Kashiwabara was recently named exec-utive director of the Assistance League of LongBeach (ALLB), a nonprofit organization withmore than 900 volunteer members and 10 phil-anthropic programs benefiting the local commu-nity. ALLB is the largest chapter of the AssistanceLeague, a national nonprofit. Kashiwabara hasserved as ALLB’s director of development since2009, and now becomes the organization’s first-ever executive director. Prior to joining the staffof ALLB, she served as executive vice presidentof the California Conference for Equality and So-
cial Justice, and hasworked in marketing andcommunity relations rolesat the Long Beach DayNursery and CommunityHospital Long Beach. Sheis a boardmember oflocal nonprofit groupsLong Beach Cares andthe Long Beach Commu-nity Foundation, and has
been recognized by Mayor Robert Garcia forher work in the community. Kashiwabara holdsa bachelors in nursing from California State Uni-versity, Long Beach and a masters in nursingfrom University of California, Los Angeles.
8 Long Beach Business Journal April 28-May 11, 2015
Jose Silva, an employee for the Long Beach PublicWorks Department, installs a new “smart” park-ing meter in Downtown Long Beach. The city isinstalling 1,600 new smart meters that acceptcredit and debit cards in downtown, BelmontShore and the Pike, replacing coil-only meters.(Photograph by the Business Journal’s EvanPatrick Kelly)
On Stage Music Academy Celebrates Grand OpeningHusband and wife Bill and Tam McRae, pictured, held the grand opening for their new business, OnStage Music Academy, on April 18 at 2221 Palo Verde Ave., Suite 2-I. A long-time teacher and profes-sional musician and composer, Bill McRae had been toying with the idea of opening a music school formany years, he told the Business Journal. With the help of the Small Business Development Center ad-ministered by Long Beach City College, he was able to achieve that goal. The school, which is openMonday through Saturday, offers lessons in pop and rock instruments including voice, guitar, drums,bass, piano and keyboard, saxophone and ukulele. All ages are welcome to take courses at the academy– students’ ages range from younger than 1 year old to more than 60 years old, McRae said. Specialparent-children classes are offered for children up to 5 years old. For older kids, there is a program forstudents aged 5 to 10 years old. Individual lessons are also available. “We’re about getting people anexperience of being a musician – not just learning lessons, but being an actual musician,” McRae said.“That includes learning enough skills so that students can play together in a band setting, actually perform,record and have the interactive experience of working with other people, which is so much different thanif you just play in your room by yourself.” On Stage Music Academy currently has five instructors, andMcRae is looking for more. The academy’s hours are: Monday to Thursday from 10 a.m. to 9 p.m.,Friday from 10 a.m. to 6 p.m., and Saturday from 9 a.m. to 5 p.m. For more information, call 562/598-0111 or visit www.onstagemusicacademy.com. (Photograph by the Business Journal’s Evan Patrick Kelly)
Beyond LED Lighting Opens In 8th DistrictEngineer Derek Gong, pictured, shows off products available from Beyond LED Lighting, a new store inLong Beach’s 8th Council District. The 15,000-square-foot store held its grand opening at 2010 E. SouthSt. on April 16 with city officials, including 8th District Councilmember Al Austin, attending. BeyondLED Lighting, which is owned by Aamir Notta and co-owned by Sales & Marketing Manager JasmineLynn, provides energy-efficient indoor and outdoor lighting solutions for commercial, industrial and res-idential properties. The company operates both as a retailer and wholesaler of these products. “BeyondLED Lighting can take on any project, regardless of size,” a statement on the company’s website said.“From customer specifications we can specify, design and manufacture all types of built-to-order LEDproducts, from lights to huge-scale displays.” For more information, call 800/959-2786 or visit www.Be-yondLEDLighting.com. (Photograph by the Business Journal’s Evan Patrick Kelly)
NEWSWATCH
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Moffatt & Nichol AppointsSam Mansour As VP Of Rail/Transit DirectorInternational engineering firmMoffatt & Nichol, which isheadquartered in Long Beach,named Sam Mansour as its newtransit director and vice presi-dent of rail. Mansour has morethan 30 years of experience inthe field of rail transit and railfreight transportation. He worked for Metrolink forover a decade in design and project managementroles, and served for four years as director of en-gineering services for Southern Pacific Railroad’sWestern Region. The majority of his career hasbeen in senior management “providing planningand design services for commuter rail, transit,grade separation, freight, intermodal facilities andrail yard projects,” according to a statement fromMoffatt & Nichol. Mansour holds a bachelors de-gree in civil engineering from the University ofUtah and is a registered professional engineer inCalifornia and Colorado. He is also a member ofseveral engineering and rail-focused national or-
ganizations, including the American Society ofCivil Engineers and the Railway Asso ciation ofSouthern California.
Randall Lert Joins HalbertHargrove As Co-Chief Investment OfficerHalbert Hargrove, a Long Beach-based financialinvestment company, appointed Randall Lert to theposition of co-chief investment officer. He comes tothe company after retiring from global investmentconsulting firm Russell Investments, where he heldroles as chief investment officer and chief portfoliostrategist. In those positions, he oversaw research,development and portfolio management. He alsohas experience in financial modeling, investmentstrategies and technology systems, and more. Priorto his work at Russell Investments, he co-foundedan asset management firm called Parametric Port-folios. In his new position, he is responsible for“ongoing analysis of the firm’s asset allocationsand investment offerings,” according to a press re-lease from Halbert Hargrove. “Halbert Hargroveis a stronger company today because Randy [Lert]is a part of it,” Russ Hill, chairman and CEO ofHalbert Hargrove, said in a statement.
Governor Names Jesse Torres Deputy Director For Small BusinessGov. Jerry Brown appointed Jesse Torres as thedeputy director for small business and smallbusiness advocate for his Office of Businessand Economic Development. Torres has servedas the regional director of the Los AngelesSmall Business Development Center (SBDC)Network at Long Beach City College – the 7thlargest federally funded SBDC in the nation –since 2011. At the SBDC, Torres oversawbudget operations. Previously, he served as re-gional director of the Orange County and In-land Empire SBDC Network. From 2005 to2011, Torres held roles as Pepperdine Univer-sity’s director of alumni and corporate rela-tions, and director of alumni relations. Prior tothat, he held the position of associate directorof development, grants and communications forthe Geffen Playhouse from 2002 to 2005. Tor-res has a masters degree in business adminis-tration from Pepperdine University.
Comprehensive Child Development Names Peter Bostic As New Executive DirectorComprehensive Child Develop-ment (CCD), which providesearly childhood education andcare to disadvantaged familiesfrom Long Beach, San Pedroand Wilmington, announcedthat it has hired Peter Bostic asits new executive director.Bostic, who has more than 30 years of nonprofitmanagement experience and worked for theYMCA for 20 years, replaces Tammie Kyle,founder and 30-year veteran of CCD. Bostic alsohas a decade of experience raising charitablegifts for higher education and is the former exec-utive director of Leadership Long Beach and theLong Beach Public Library Foundation. CCDserves 3,000 children daily and operates fivechildcare facilities, supports 20 family childcarehomes and oversees close to 700 nutrition pro-grams throughout greater Los Angeles
2015
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April 2
Ocean Center Building Construction Slated ToStart In Early Summer
� By SAMANTHA MEHLINGER
Senior Writer
Work to transform the historic Ocean Cen-ter Building at 110 W. Ocean Blvd. into amixed-use property with multi-family hous-ing units and ground floor retail is expectedto start this summer, according to MichaelBohn, design director and senior principal ofproject designer Studio One Eleven.The adaptive reuse of the building from
an office use into residential and retail useshas been approved by the city. “We are justwaiting for the building permit,” Bohn said.The permit should be issued early in thesummer, and construction will then beginimmediately. If everything goes smoothly,the project should then be completedwithin 15 to 18 months, he projected.Office users, all of whom received two
months’ notice to vacate, had occupiedabout 30 percent of the building, Bohnsaid. The owner, Levy & Associates, wasrequired to give only one month’s noticebut felt it appropriate to provide extra timefor the businesses to relocate. The Downtown Long Beach Associates
(DLBA) has made efforts to help thosebusinesses relocate elsewhere in thedowntown area. “The DLBA is dedicated to assuring that
all downtown tenants keep their home inDowntown Long Beach, which is why we
hosted a special gathering of brokers toprovide resources to vacating Ocean Centertenants at Rock Bottom Brewery on March11 of this year,” DLBA President and CEOKraig Kojian said in a e-mailed statementto the Business Journal. “We are absolutelycommitted to keeping their presence indowntown,” he said. Kojian continued, “How we organize
and facilitate in a leadership role is key toour operations; we go beyond acting asspectators in these situations and actuallyexercise proactive measures. After all, thecomplexity and difficulty of moving abusiness in such a short period of time canbe overwhelming and we provide assis-tance in any way we can.”The cost of the Ocean Center project is
currently unknown, as Levy & Associateshasn’t yet selected a contractor to performthe work, but Bohn said he expects the in-vestment to be at least $13 million.Built in 1929, the building holds the sta-
tus of a historic landmark, necessitatingwhat Bohn called “sensitive demolition” onthe interior. “It would be the demolition orthe removal of insensitive additions thathave been done over time,” he explained.Over the years, “There were a lot of horri-ble additions and renovations that weredone that were just completely out of con-text [to the building’s character].”The design entails retaining the full orig-
inal character of the exterior of the buildingand the “vast majority” the interior’s char-acter, such as marble wainscoting, Bohnsaid. Some corridors will be reduced insize, he added. These plans were approvedby the Long Beach Cultural Heritage Com-
10 Long Beach Business Journal April 28-May 11, 2015
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mission and the state government.Plans for the building include as many as
80 multi-family units, the majority ofwhich will be studios, Bohn said. Someone-bedroom and two-bedroom units arealso planned. The building’s tiered designfeatures a few outdoor roof decks, whichmay be used for a community room, dogpark, and health and fitness area. The de-sign is aimed at appealing to the millennialgeneration, according to Bohn.National retailers have already expressed
interest in occupying ground floor retailspace, although no leases have been signed,Bohn said. “There is a very well-known na-tional sit-down restaurant that wants to be inthere,” he said. A coffeehouse, wine bar andfast-casual dining establishment have alsoexpressed interest in the location, he added.Once leases have been signed for the
ground floor retail space, Studio One Elevenplans to work with tenants to design parkletsfor outdoor dining along Pine Avenue. Bohnhopes the presence of retailers at the OceanCenter building will help better connect theoceanfront to the downtown core. �
Scoping Meeting OnCivic Center ProjectSet For April 30
� By SEAN BELK
Staff Writer
A draft supplemental environmental im-pact report (EIR) on the Long Beach CivicCenter rebuild project will be discussedduring a public scoping meeting this Thurs-day, April 30, from 5 to 6:30 p.m. at theLong Beach Main Library, lower lobby, at101 Pacific Ave., downtown. The project, being developed by Plenary
Edgemoor Civic Partners (PECP) through apublic-private partnership, includes buildinga new city hall, a new port headquarters anda new main library in addition to redevelop-ing Lincoln Park and adding private devel-opment with a 30-story residential tower. The city is moving forward with the
major downtown redevelopment after seis-mic studies, conducted in 2005, 2006 and2013, indicated that the current city hallbuilding and the main library, which wereboth built in the late 1970s, would be publicsafety risks in an earthquake and are “sig-nificantly seismically deficient.” For more information on the civic center
project, visit www.lbciviccenter.com. �
Public Meeting Scheduled May 2 OnBelmont Pool Rebuild
� By SEAN BELK
Staff Writer
The public has a chance to provide inputon and learn about the latest plans for themore than $103 million project to rebuildthe Belmont Pool facilities in Long Beach.A public meeting on the project is sched-
uled for 9 a.m. on May 2 in the EmpireRoom of the Seaport Marina Hotel, locatedat 6400 E. Pacific Coast Hwy.City officials will present updates on site
and facility layout plans along with anoverview of the design philosophy, guidingprinciples and project constraints and op-portunities, according to a meeting notice. The public will have a chance to provide
input on the conceptual design and programrequirements that were approved by the citycouncil last October. The public will also re-view architecture of similar facilities.
City staff will present an anticipatedschedule for the draft environmental impactreport (EIR) for the project and for futurepublic meetings. For more information, contact Rachael
Tanner, Long Beach program specialist, [email protected].
Local Commercial Real Estate Council ToHost Luncheon May 21� By SEAN BELK
Staff Writer
The Long Beach Commercial Real EstateCouncil is hosting its annual luncheon from11 a.m. to 1 p.m. on May 21 at The WestinHotel, 333 E. Ocean Blvd. in DowntownLong Beach. The luncheon theme is “De-signs of Tomorrow,” as commercial real es-tate professionals will discuss key trendsand new practices in development that areshaping the future of commercial real es-tate, including paperless/address-free of-fices and sustainable practices. During the event, Long Beach Mayor
Robert Garcia will give a welcoming ad-dress, followed by honored speaker RyanAltoon, executive vice president of Ander-son Pacific, LLC, who will discuss sustain-able building practices; and keynotespeaker Lewis Horne, president of CBRichard Ellis Greater Los Angeles. Tickets for non-members are $85 ($95
after May 15). For more information,please visit www.lbcrec.com. �
April 28-May 11, 2015 Long Beach Business Journal 11 2015 REAL ESTATE
Los Alamitos Construction of a new 70,000square-foot multi-tenant medicaloffice building on the campus ofthe Los Alamitos Medical Center(LAMC), located at 3751Katella Ave., was recently com-pleted. The $37 million project,developed by Mission Hills-based Pacific Medical Buildings(PMB) and designed by Irvine-based Boulder Associates, alsoincludes a six-level, 1,077-space parking structure (pictured) that serves both the hospital and the medicaloffice building. The project is the first phase of LAMC’s master plan, a part of an integrated medical campus.The plan includes construction of a 167-bed care facility, three medical office buildings and the Total CarePavilion, providing cancer, imaging and infusion services. The second phase of the master plan will includea new 92-bed patient care building and expanded services. (Photograph provided by PMB)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 11
mains very strong and hours worked amongthose folks who are working have increased,so they are earning a whole lot more money,”Vitner noted. Cochrane agreed. “People arefinding new jobs and often getting 10 to 15percent pay increases when they quit one joband move on to the next,” Cochrane ob-served. “And job growth is pretty broadacross most industries . . . with the exceptionof the energy industry,” he added.Stronger economic fundamentals are ev-
idenced by positive activity in the bankingindustry, according to Henry Walker, pres-ident of Farmers & Merchants (F&M)Bank, which has $5.6 billion in assets and,as of December 31, 2014, was ranked136th in the country (out of 1,778 largecommercial U.S. banks) by the Federal Re-serve Board. “In banking, we’re reflectiveof the overall economy, and there is goodmoney and a good inflow of deposits in2015,” he told the Business Journal. “Thereis good, strong loan demand in 2015 andcredit quality is exceptional right now.”These factors, as well as increasing in-
comes and job growth, seem to point to apositive outlook for lending. “From a fi-nancial perspective, where we are in thebusiness cycle is that conditions have beenstrong enough for a long enough period oftime that we are beginning to see folks takeon the types of endeavors that usually in-volve borrowing money,” Vitner said.“We should see stronger demand for con-
sumer lending, and particularly mortgagelending,” Cochrane projected. Vitner ex-plained that stronger job market fundamen-tals are having a corresponding impact onhome sales. “Now that home prices have re-
bounded, job growth has picked up and rentsare rising pretty dramatically, we’re seeinghome buying increasing,” Vitner said.Cochrane said that banks might begin eas-
ing up on lending standards for mortgageloans to generate more business, whichwould ultimately be positive both for banksand homebuyers. “It may just take a whilefor the banks to recognize where that de-mand is and manage their lending standardsto accommodate that demand,” he added.Commercial real estate is also experienc-
ing investment growth, Vitner observed.“The strength in California’s job markethas meant that commercial real estate hasdone very well, and demand for office andindustrial space has been very strong,” hesaid. “We have seen the dollar volume ofsales of commercial properties has in-creased pretty dramatically.”Michael Miller, president and CEO of
International City Bank (ICB), a LongBeach-based independent business bank,told the Business Journal that the commer-cial real estate lending portion of his bank’sbusiness has experienced the largest per-centage growth in comparison to its otherservices so far this year.Income and job growth is also positively
impacting the wealth management and in-vestment industry. “If we see continued im-provements in wage increases, that willdefinitely contribute significantly to contin-ued growth,” Nathan Lee, first vice presi-dent of wealth management and financialadvisor at the Long Beach branch of MerrillLynch, told the Business Journal. He saidhis industry is also “getting a tailwind . . .from the large rapid decrease in petroleumprices,” which have dropped from about$100 per barrel to around $57 per barrel.While job growth and rising incomes are
positive economic factors, Lee said thoseelements necessitate more risk assessment.
“As a result of what people perceive to bea stronger economy, you start to see shiftsin people’s comfort level with risk,” he said.“We have to continue to talk about manag-ing risk,” he emphasized.For the past year or so, at the forefront of
any conversation about the financial serv-ices industry has been the question as towhen the Federal Reserve (Fed) will in-crease the federal funds rate, which essen-tially functions as the base rate of interestrates offered by U.S. lenders. Vitner,Cochrane and Walker all said they expectedthe Fed to raise interest rates by Septemberof this year – but not by more than 100basis points (1 percent). Both ICB and F&M are planning for an
interest rate increase. Lee said MerrillLynch projects interest rates will remainlower for a longer period than others arepredicting. Lee, Miller and Walker all indi-cated that 2015 should be a year of growthfor their businesses. Assuming interest rates don’t increase by
more than 1 percent, Walker sees no threatto the banking industry. “It is probably notgoing to be any good for banking, but Idon’t think it is necessarily going to hurtbanking,” he said. “But I don’t think it willbe well received. I think anything about 50basis points will stifle the economy,” headded. “The consensus from a lot of peopleis that, if they [interest rates] do move, theyjust can’t move much.”Cochrane pointed out that most entities in
the financial services industry are ready foran increase in interest rates. “The industryexpects this to happen,” he said. “It would al-most be more of a surprise at this point if theFed didn’t raise interest rates in September.” Still, the Fed’s activities may pose some
risk to the financial services industry, ac-cording to Vitner and Cochrane. Due to aninternational and national weakness in
bond markets, the Fed may have to increaseits short-term debt obligations more fre-quently, Cochrane explained. “If the Fedhas to continue moving on raising short-term rates, we could get a very flat yieldcurve so there is very little difference be-tween the Three-month Treasury Bill and a10-Year Treasury Note,” Cochrane said, re-ferring to short-term and long-term debtobligations issued by the Fed. “As the yield curve flattens, it makes life
more difficult for banks that want to take in. . . [short-term] deposits with usually a lowcost and lending it out at a higher rate longerterm,” Cochrane explained. “That’s howbanks work. And so any time the yield curveflattens, it makes it more difficult for themto manage the pricing of loans.” Cochranesaid he wouldn’t expect to see this effectuntil 2017, and only if there is still down-ward pressure on long-term bond yields.“The other risk is that, with interest rates
this low, we have had a lot of folks going outand trying to find higher yields someplaceelse,” Vitner said. “I am concerned that whenthe Fed begins to raise interest rates that wewill see that some of the valuations of com-panies that have been established throughprivate equity investments may unravel a bit.”On the other hand, keeping rates too low
may cause problems as well. “I do thinkthat where the Fed may be a little compla-cent is they say, ‘What’s the risk of keepingrates down so low?’ I think that one of therisks is that it may allow for bubbles to de-velop in some parts of the economy,” Vitnerexplained. He speculated that the Fedmight not see any threat to the financialservices industry if it keeps rates low be-cause it is gauging risk based on problemsthat sparked the Great Recession. “Whattrips us up in the next recession is not likelyto be the same thing that got us in the lastrecession,” Vitner asserted. �
12 Long Beach Business Journal April 28-May 11, 2015FINANCIAL SERVICES
Henry Walker, president of Farmers & Merchants Bank, believes the outlook for the banking industry in 2015 is stable, if not positive. The bank recently reported that its interest and dividend income was $48.7million in the first quarter of 2015. Other first quarter financial results included a net interest income of $46.9 million and a net income of $16.7 million. Each of these figures represented increases from the sametime period last year. Walker stands by the teller window still serviced by his father, Kenneth G. Walker, who celebrated his 88th birthday earlier this month. (Photograph by the Business Journal’s Evan Patrick Kelly)
The Economy And
Financial Services(Continued From Page 1)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 12
2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 13
April 2
� By SEAN BELK
Staff Writer
With optimism among small businessowners at its highest level since the reces-sion, Wells Fargo is continuing a commit-ment to help them find capital whileproviding guidance and online resources,whether for startups or expansions.
It’s all part of an initiative rolled outlast year called “Wells Fargo Works forSmall Business,” which focuses on pro-viding small business owners with accessto financing, online tools and help frombusiness-focused bankers across thecountry.
Ben Alvarado, regional president ofWells Fargo’s Southern California regionthat serves customers in San Diego, Or-ange and Imperial counties as well asLong Beach, told the Business Journalthat, despite new and growing small busi-nesses seeing healthier financials, manyare “underserved” and lack access to re-sources, such as banking and credit.
“We know that, in order to keep theeconomy going and continue the reboundthat we’re seeing, we need to help smallbusinesses,” he said. “This initiative is re-ally about putting the tools and resourcesthat small business owners can use in oneplace that’s really easy to access and pro-vide them with online knowledge as wellas in-branch knowledge from one of ourbusiness bankers.”
According to the U.S. Small BusinessAdministration’s Office of Advocacy, the28 million small businesses in the UnitedStates account for 99 percent of employer
14 Long Beach Business Journal April 28-May 11, 2015FINANCIAL SERVICES
Wells Fargo Continues Small Business Initiative With Assistance In Capital And Online Resources
Ben Alvarado, regional president of Wells Fargo’s Southern California region, overseeing operations in San Diego, Orange and Imperial counties, aswell as Long Beach, said the bank’s initiative for small businesses focuses on providing resources regarding “growth, knowledge, capital and community.”The website is: www.wellsfargoworks.com. (Photograph by the Business Journal’s Evan Patrick Kelly)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 14
firms in the country and 64 percent of thenet new private-sector jobs in the econ-omy.
Wells Fargo’s initiative was unveiled inMay of last year to coincide with thecompany’s Small Business AppreciationCelebration, an annual event from May 1to June 30.
Starting before National Small Busi-ness Week, the event highlights the ac-complishments of small businesses andprovides business owners with offers tosave time and money, including a Busi-ness Platinum Credit Card with rewards,
as well as Merchant Services and Op-tRight Payroll Solutions.
Last year, Wells Fargo introduced thesmall business initiative with the launch ofits website, www.wellsfargoworks.com,offering business and financial guidance.Alvarado said the website provides helpon four key subjects that small businessowners said they need information on themost: “growth, knowledge, capital andcommunity.”
Through articles and online videos, thesite gives owners tips on how to growtheir business, how to build an effectivebusiness plan, etc. The knowledge pieceprovides education and answers to ques-tions about running a business, he said.
In terms of capital, the online resourceand bankers provide small business own-ers with information about how to accesssuch funding sources as a line of credit
or financing for equipment or real estate.Lastly, the site helps businesses learnhow to connect with their community,such as other businesses and peers, Al-varado said.
Since the initiative was launched in2014, the most common need for smallbusinesses has been access to capital, Al-varado said.
“Confidence is building with our smallbusiness owners,” he said. “So whetherthey want to buy that extra piece ofequipment or they want to hire a fewmore employees, oftentimes they’ll lookfor capital, how they can get approved forfinancing and what source of financing isthe best for them.”
Wells Fargo, which states that it hasbeen the top lender for small businessesin the United States for 11 consecutiveyears, launched the initiative with a goal
to extend $100 billion in new lending tosmall businesses by 2018.
In 2014 alone, Wells Fargo extendedmore than $18 billion in new lending tosmall businesses, Alvarado said. Focus-ing on helping customers find access tocredit has helped Wells Fargo maintainits high status for small business loans,he added.
Alvarado pointed out that small busi-ness owners may connect with otherbusiness owners and experts through thewebsite. Business owners are also ableto share and discuss on social media orthrough a blog at www.wellsfar-goworks.com/run/blog-for-success.
Business owners may also speak withone of Wells Fargo’s 32,000 business-fo-cused bankers located at branches acrossthe country, he said. To make an appoint-ment by phone, call 800/416-8658. �
April 28-May 11, 2015 Long Beach Business Journal 15 2015 FINANCIAL SERVICES
House PassesCybersecurityLegislation
� By GEORGE ECONOMIDES
Publisher
On Wednesday, April 15, the House ofRepresentatives passed the ProtectingCyber Networks Act in a 307 to 116 vote.The bill, which is awaiting a vote on asimilar bill in the U.S. Senate, aims tomake it easier for corporations and gov-ernment agencies to share data related tocybersecurity threats, including informa-tion about hacker attacks.The bill was opposed by 55 civil liber-
ties groups, including the American CivilLiberties Union and Freedom of the PressFoundation, claiming in a letter that thelegislation “significantly increases the Na-tional Security Agency’s access to per-sonal information,” and allows the federalgovernment to use the information for“purposes unrelated to cybersecurity.However, the American Bankers Asso-
ciation, which calls itself the “voice ofthe nation’s $15 trillion banking indus-try,” sent a letter thanking Congress. Inthe letter, ABA President & CEO FrankKeating wrote:“ABA congratulates the House for
passing the Protecting Cyber NetworksAct and the National Cybersecurity Pro-tection Advancement Act. These billswould foster a more robust cyber infor-mation sharing framework while provid-ing liability protections that balance theneed for privacy protection. � �“It is critical that Congress pass threat
information sharing legislation to addresstoday’s challenges and stay ahead of to-morrow’s threats. We appreciate the strongleadership shown by Chairmen [Devin]Nunes and [Michael] McCaul and Rank-ing Members [Adam] Schiff and [Mike]Thompson in steering this critical legisla-tion through the House with strong bipar-tisan votes. � �“We are encouraged by the House’s ac-
tions and urge the Senate to move for-ward soon on the Cyber InformationSharing Act, similar legislation spon-sored by Chairman Richard Burr andVice Chairman Dianne Feinstein. Banksinvest hundreds of millions of dollars an-nually to put in place multiple layers ofsecurity to protect sensitive consumerdata. Implementation of these bills wouldcontinue to build upon the existing cy-bersecurity partnership across sectors,which is critical to protecting our countryfrom these threats.” �
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April 2 16 Long Beach Business Journal April 28-May 11, 2015
Attention deficit Hyperactivity disorder
(AdHd): Understanding the diagnosis
Attention deficit hyperactivity disorder (ADHD) is one of the mostcommon childhood brain disorders in the United States. According
to the Centers for Disease Control and Prevention, approximately 11percent of children 4 to 17 years of age, 6.4 million kids, have been di-agnosed with ADHD as of 2011.A child with ADHD might have trouble focusing on tasks or sub-
jects because the parts of their brain that controls attention and filtersout distractions is underactive and less mature compared to a child
without ADHD. Common symptoms of ADHD include difficulty staying focused,difficulty controlling behavior and hyperactivity.A child with ADHD might do some of the following things more frequently than other
children: daydream a lot; frequently forget or lose things; squirm or fidget; talk too much;have trouble taking turnsThere also are several different types of ADHD, depending on which symptoms are
the strongest in the child:• Predominantly Inattentive Presentation – It is hard for the child to organize or finish
a task, pay attention to details, or follow instructions or conversations.• Predominantly Hyperactive-Impulsive Presentation – The child fidgets and talks a
lot. It is hard for the child to sit still for long periods of time and feels restless and hastrouble with impulsivity.• Combined Presentation – Symptoms of the above two types are equally present in the child.There's no way to tell if a child has ADHD from blood tests, X-rays or other medical
investigations. Doctors diagnose ADHD based on history, interviews and special evalu-ations – such as rating scales, computer-based assessments and learning tests. The causes and risk factors for ADHD are unknown, but current research shows that
genetics plays an important role. In addition to genetics, researchers are studying otherpossible causes and risk factors including:• Genes – Researchers are looking at several genes that may make people more likely
to develop the disorder.• Brain injury – Children who have suffered a brain injury may show some behaviors
similar to those of ADHD. However, only a small percentage of children with ADHDhave suffered a traumatic brain injury.• Environmental exposures – Studies suggest a potential link between cigarette smok-
ing and alcohol use during pregnancy and ADHD in children. In addition, preschoolerswho are exposed to high levels of lead may have a higher risk of developing ADHD.• Premature delivery – Premature children face higher rates of health problems as a
result of being born early, and are also more susceptible to developing ADHD. If your child has ADHD, you can help by structuring situations in more positive ways. For example, restrict the number of playmates to one or two, to prevent overstimulation. Your child may be eligible for school-based support for their difficulties in attention. In order to make sure that your child is receiving the proper attention at school, be
sure to discuss their specific needs with their teacher or school counselor.If you or your doctor has concerns about ADHD, you can take your child to a specialist
such as a child psychiatrist, child psychologist or developmental pediatrician.(Gary Feldman, M.D., is the medical director of the Stramski Children’s Develop-
mental Center at Miller Children’s & Women’s Hospital Long Beach)
Tomorrow’s entrepreneurs:
energy Waiting To Be Tapped
Author Rchard Florida reminds us thatthe greatest periods of economic
gloom happen to also be the greatest pe-riods of economic innovation. So we have doom and gloom followed by
periods of high growth and living standards.And it’s not the government or centralbanks, but the younger generation that will
drive its upsurge. The economic ingenuity is being democra-tized more every day. It is so much easier to set up a businesswith many customers . . . thanks to cyberspace. A 20-some-thing can come up with an idea and present it to 500+ friendson one social media instrument alone. It used to take muchlonger to get your message out to that many people. Now itcan happen with the push of a button.
One of the attributes that Millennials share is an imaginativeorientation. They are much more experimental than older gen-erations as a whole. These are the digital natives. Technologyis their first language. This group (2.1 billion worldwide – 80million in the U.S.) will sense and seize this entrepreneurialspirit in far greater proportions than the older generations.Walk into a classroom or workplace that is saturated with
Millennials and you will walk away with the impression – assubjective and anecdotal as it is – that there is a lower propor-tion of pessimism and gloom than in other groups. Some writethis off as naivety, elitism and entitlement. What is overlookedis the imaginative entrepreneurial spirit that exists.Look at some facts. In 1998, surveys showed that in Britain
48% of young Millennials (those who are today in their late20s and early 30s) wanted to start their own businesses. In2012 it went up to 49%. Both groups surveyed were teenagers.In the U.S. the entrepreneurial energy is waiting to be
tapped. This will help drive future job creation since smallbusinesses are responsible for creating most of the new jobs.According to the Gallup-HOPE Index, nearly 8 in 10 students(77%) in grades 5-12, say they want to be their own boss.45% say they plan to start their own business. 42% say theywill invent something that changes the world. The majorityof the students also demonstrated persistence and a willing-ness to assume risk. 91% were not afraid to take risks
even if failure was a possibility. 85% said they never give up. Yet, even though the American student population demon-
strates attitudes that describe entrepreneurs, they are not gettingall the help they need from adults or the educational system. Parents, schools, and businesses can make a difference by
creating an atmosphere and opportunities to cultivate theimagination of these young people who range from preteensto those in their late 20s. If their entrepreneurial spirit is en-couraged, they will achieve more than has ever been done.This creative spirit is not just for profit. Much of their
energy is directed toward social enterprise and nonprofits.They focus just as much on social change as they do oncommercial gain.Our educational system should take note. There needs
to be a strong priority in encouraging risk-taking, entre-preneurialism and the development of technical skills.Let’s keep their minds and hearts engaged by using their
well-developed imaginations to solve problems and innovate.The future success of our economy relies on young people.(Mick Ukleja keynotes across the country on topics re-
lated to leadership. He is president of LeadershipTraq andauthor of several books, including co-author of Managingthe Millennials. His clients have included Fortune 500 cor-porations and non-profit organizations. Check his weeklyblog at www.leadershiptraq.com.)
HealthWise
By Gary
Feldman, M.d.
By Mick
UklejA
decoding Five Myths About
Security And data Breaches
S ecurity and data breaches don’t favor one organization or industryover another, and are taking place every day. Companies should
consider the “how” of a breach (as opposed to the “who”) to evaluatetheir exposure to a similar event. Retail operations remain a target tohackers due to the volume of information in their systems: credit cardinformation, confidential information for loyalty programs, and em-ployee data. The victims of these attacks are an organization’s most val-ued assets, employees and customers.Until recently, many thought data risk was trivial compared to other
threats such as theft, slip and falls and workplace violence. But with data compromiseoccurring at much greater frequency, it’s one risk you shouldn’t underestimate. Reputa-tional harm stemming from a poorly managed data breach can be catastrophic. Five myths you can’t afford to believe:1. Data theft is not a problem for me, my company is too small. Data privacy is aconcern for organizations of any size, though between rogue employees, data thieves,negligence, careless staff and unscrupulous business associates your company couldbe at risk. 2. We can afford to self-insure the risk. According to a recent Ponemon Institute study,the average cost for a small breach could easily exceed $200,000 – a sum that manycompanies cannot easily absorb. The majority of funds to respond to a breach need tobe liquid. Breach vendors typically look for payment before or at the time service is ren-dered, and payment for postage is required when the letter is mailed, not 30 days later.3. Coverage is expensive and hard to get. Competition, claims experience, and a largerpool of buyers have made network security and privacy liability coverage more cost ef-fective and easier to obtain than even just a few years ago. 4. Our general liability policy will cover us. General liability insurance covers bod-ily injury and property damage as well as advertising injury and personal injury. Thecourts have consistently stated that data is not property because it is intangible, there-fore not covered. 5. We have vendors who handle our sensitive information and credit card transac-tions; if they have a breach, it’s their problem not ours. The data owner (the personor entity collecting the data) is ultimately responsible for what happens to that data. Thus,a breach at a trusted business vendor could still lead to your obligation to provide noti-fication and a decision whether to offer credit monitoring. Your contracts may requireindemnification by your vendor, but if the breach is large enough, indemnification mightnot be enough to cover the costs or your vendor could file for bankruptcy.Organizations can’t afford to figure things out after a breach occurs. It’s much more
cost effective to have a ready-to-use incident response plan, an on-call forensics expert,and a privacy attorney on retainer. Then, when a potential issue is identified, your or-ganization can act to mitigate the effects of a breach, deter any potential litigation, andrespond to inquiries from regulators. Employers should also look for insurance partnerswho can help them identify financial risks and develop customized solutions to betterprotect their organization.(Ben Alvarado, a 23-year veteran of Wells Fargo, is the president of the bank’s South-
ern California Region, which stretches from Long Beach to Orange, Imperial and SanDiego counties.)
Small Business Dollars & SensePERSPECTIVE
Effective Leadership
By Ben
AlvArAdo
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 16
April 28-May 11, 2015 Long Beach Business Journal 17 2015
Socal Housing needs not Met
B ack in the good old days before the Great Re-cession when Southern California homes
regularly appreciated at double-digit rates andpeople referred to their houses as ATMs, it wasn’tunusual for economists and government agenciesto bemoan the fact that the available housing andnew housing being produced were not enough toprovide for the number of people in our local area.That all came to a halt with the housing bubble
and the economic calamity that ensued. Homes in Southern Cali-fornia – and around the country – couldn’t sell for the askingprices, or even in many cases the mortgages against them. So sup-ply was not a real problem.Now, the pendulum is swinging back to that time when available
housing was at a premium. It is no secret the builders left the mar-ket in droves during the recession and have come back in with trep-idation and new challenges – such as difficulty finding availableland, which is a growing issue in the coastal areas of our region.According to information provided by the website, Zillow, there
isn’t enough new housing being built to accommodate new resi-dents. The situation is even more critical when you look at the highlyurbanized city centers and the demand in these areas. U.S. Censusinformation from July 2013 to July 2014 shows that only 254 unitswere being built for every 1,000 new individuals in the L.A. area;in Orange County it was 428 units; in San Diego it was 205 units;and in Riverside it was 177 units for every 1,000 new individuals.Granted not every single new individual reported needs a new
place to live. About 40% (give or take depending on the area) ofeach county’s residents are under 18 and thus don’t require addi-tional housing units. However, even after accounting for this re-duction, new adults moving to the area still outpace new unitsbeing built – something that is a problem again just like before theGreat Recession.Many prognosticators believe that the shortage of land in the
higher-priced coastal areas will drive many residents to the InlandEmpire and the various markets of Riverside-San Bernardinocounties where there has traditionally been more bang for the buckwhen it comes to housing prices. But this also brings the question
of highways to accommodate workers if they need to go west forjobs – or will the employers go where the workers are, and moveinto these outlying areas?Steve PonTell, president and CEO of Rancho Cucamonga-based
National Community Renaissance, said cities and counties needto start planning for more housing if Southern California is goingto grow, and noted that the state as a whole is a million housingunits short of meeting demand.“In Southern California alone, that number is 600,000, which
means we would need to build 600,000 units just to break even,”he said. “When demand exceeds supply to that level, prices riseand fewer people – fewer workers – can afford to live here. Em-ployers then leave because they can’t afford to pay their employeesenough. The ripple effect on our overall economy is staggering.”According to the California Association of Realtors, 47% of
households in the Inland Empire could afford a median-pricedhome during the third quarter of 2014, versus 32% throughoutGreater Los Angeles. In Orange County, only 20% of householdscould afford a median-priced home. Even so, the affordabilityindex for the Inland Empire has dropped during the past year, from51% of households being able to afford a median-priced homeduring the comparable period in 2013.Because of this affordability factor, more people are opting to rent
rather than buy in today’s market – but they still need places to live,and this is leading the way to more multi-family housing demand.In 2014, the vacancy rate in California was only 1.2% for prop-
erty otherwise occupied by homeowners (including those sold to ahomebuyer and awaiting occupancy, and unsold, as well as vacanthomes not for lease), and 4.5% for rental (apartment) properties.For historical comparison, 1.2% is about average for California
homeowner vacancies, having settled at this level after rising dur-ing the overbuilding years of the Millennium Boom and droppingduring the following recession. However, today’s rental vacancyrate is well below average. This indicates these new residents areprimarily seeking rental properties, not ownership. When rentalvacancies fall below average, the price of rents naturally rises.Thus, new residential construction will undoubtedly be concen-
trated in the multi-family sector to accommodate this trend. But,as of now, all residential building is lagging behind the increasingdemand because of the number of new residents coming intoSouthern California. (Terry Ross, the broker-owner of TR Properties, will answer any
questions about today’s real estate market. E-mail questions to Re-alty Views at [email protected] or call 949/457-4922.)
By Terry
roSS
Realty Views
The Whole Story
I f you’re like me, your e-mail inbox is full ofnews summaries from anynumber of news outlets.There’s more informationavailable to review on adaily basis than ever be-fore. Of course, that
makes it even more critical to be a discern-ing reader, otherwise you risk getting onlypart of the story, and it’s often the part youwant to hear.Case in point: this past week I received
two press releases from the American As-sociation of Port Authorities (AAPA) onthe same day. Both had to do with thehealth of the nation’s trade sector. The firstannounced the release of a report preparedon behalf of AAPA by Pennsylvania-basedMartin Associates on the economic impactof the nation’s coastal port system.The report is an update of a similar study
done in 2007, prior to the economic down-turn. It concludes that, between 2007 and2014, tax revenues at all levels (federal,state and local) generated by the port andtrade sector increased by more than 50%;
jobs (both direct and indirect) generatedby port-related activity increased 74% to23.1 million; and personal wages tied toport-related employment doubled to $1.5billion. The Martin Associates report alsoconcluded that the average annual salaryof those directly employed by port-re-lated businesses is now roughly $54,000.Bottom line impact: the movement ofcargo through coastal ports was respon-sible for more than a quarter of the U.S.GDP in 2014.The second press release was the other
side of the coin. It presented the findingsof a survey of port authorities as part ofAAPA’s 2015 The State of Freight report,and cautioned that the health and well-being of U.S. ports is threatened by a lackof investment in the landside infrastructurethat makes port operations possible. Theheadline was that one-third of U.S. sea-ports need infrastructure improvements inorder to be able to accommodate growththrough 2025, let alone longer term in-creases in trade volumes.Landside infrastructure includes access
roads, bridges, tunnels and rail corridors.Each of these has suffered as a result of in-creased traffic placing increased pressure
on a network never designed for theamount of cargo now moved through theports. While levels of congestion vary,one-third of U.S. ports report that $100million of improvements in their landsideconnections are needed in the short term.In the absence of these improvements,
congestion at the docks will translate intocongestion at the gates which will thenspill over on to the local road and rail net-works. Intermodal transfer points can beparticularly challenging bottlenecks. Allof this has a negative impact on port pro-ductivity of course, but has broader im-plications for the supply chain as awhole. The AAPA State of Freight Reportsuggests that some ports in this countryhave seen a 25% decrease in productivitydue to rising cargo volumes and the re-sulting congestion. They’re not alone inmaking this argument. The American So-ciety of Civil Engineers gave the U.S. in-frastructure a grade of D+ in its 2013report card.It’s not surprising that the two AAPA re-
ports were released at the same time. U.S.ports should be touting their successes,particularly after a prolonged period ofnegative and/or flat growth in the wake ofthe economic recession. In Southern Cali-fornia, showing signs of recovery is evenmore important given the black eye theports took as a result of the very visible im-pacts of congestion-related delays in mov-
ing cargo in 2014. The backlog is stillbeing cleared.While many people pointed to labor ne-
gotiations as the cause of the congestion,it was a much more complicated set of cir-cumstances that caused the problem, cir-cumstances that have not yet been fullyresolved. These include equipment short-ages exacerbating both the congestion andthe resultant delays.But they also included the impact of
larger vessels discharging larger andlarger amounts of cargo at peak periods,placing unprecedented demands on thesystem. If this fact was not highlightedin the AAPA report, it’s perhaps becausethe audience for the State of Freight isnot the ocean carrier but the policy mak-ers (and consumers) who struggle to takeon the added burden of paying for infra-structure improvements despite the costsof congestion and the benefits (environ-mental, economic and otherwise) of anefficient supply chain. So the ports arewise to offer a not so gentle reminderthat business is good but could be better.Both messages need to be heard amid allthe noise. (Dr. Thomas O’Brien is the executive
director of the Center for InternationalTrade and Transportation at CSULB andan associate director for the METRANSTransportation Center, a partnership ofUSC and CSULB.)
Trade And Transportation
By ToM o’Brien
EDITOR & PUBLISHERGeorge Economides
SALES & MARKETING EXECUTIVEHeather DannSTAFF ASSISTANTLarry Duncan
EDITORIAL DEPARTMENT
SENIOR WRITER
Samantha Mehlinger STAFF WRITER
Sean BelkCONTRIBUTING WRITER
Michael GougisPHOTOJOURNALISTEvan Patrick KellyCOPY EDITORPat Flynn
The Long Beach Business Journal is a publication ofSouth Coast Publishing, Inc., incorporated in the Stateof California in July 1985. It is published every otherTuesday (except between Christmas and mid-January)– 25 copies annually. The Business Journal premieredMarch 1987 as the Long Beach Airport Business Jour-nal. Reproduction in whole or in part without writtenpermission is strictly prohibited unless otherwisestated. Opinions expressed by perspective writers andguest columnists are their views and not necessarilythose of the Business Journal. Press releases shouldbe sent to the address shown below.
OfficeSouth Coast Publishing, Inc.2599 E. 28th Street, Suite 212
Signal Hill, CA 90755Ph: 562/988-1222 • Fx: 562/988-1239
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Vol. XXVIII No. 8April 28-May 11, 2015
PERSPECTIVE
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ART MATTERSBrought To You By The Arts Council For Long Beach • www.artslb.org
Long Beach Business Journal 18April 28-May 9, 2015
Gallery Corner Did you know that Long Beach is the home to world class traditional Khmer art forms? Beyond the fact that Long Beach
has the largest concentration of Cambodians living outside of Cambodia, our city acts as host to a variety of groups that
preserve and promote Khmer arts. Deep in the heart of Cambodia Town, Long Beach master artists are training the next
generation of students to preserve Cambodian heritage. World class art organizations, like Khmer Arts Academy, are ded-
icated to fostering the vitality of these traditional arts. Khmer Arts Academy offers free training to apprentice artists, who
then perform at a variety of locations and events around town. The organization works to train emerging artists in dance,
costuming, mythology, and stagecraft. Outside of arts organiza-
tions, Long Beach hosts a multitude of parades and celebration
events that honor traditional Khmer art forms. This month at the
Cambodia Town Culture Festival, local artists and culture bearers
presented a wide array of traditional culture exhibitions includ-
ing classical dance and music, painting, religious practices, tex-
tiles, dress-making, Cambodian language and calligraphy, and
more. However, the festival is just one part of the Cambodian
culture vibrantly lived here in Long Beach. To learn more about
the variety of Cambodian events and art forms in Long Beach,
visit www.khmerarts.org, www.cambodiatown.org, or
www.cam-cc.org.
� By SHEFALI MISTRY
University Art Museum
California State University, Long Beach has a
prestigious history in the arts, with an interna-
tional reputation far beyond being a regional,
commuter school. In 1965, the
then-called California State College
at Long Beach held the California
International Sculpture Sympo-
sium. Organized by Sculpture pro-
fessor Kenn Glenn and artist Kosso
Eloul, it paired nine artists with
local industrial partners like Beth-
lehem Steel, Fellows & Stewart
Shipyard, and North American Avi-
ation to create monumental works
to be sited throughout the Edward
Killingsworth designed midcentury
campus. The first of its kind in the
United States, the symposium
brought to Long Beach interna-
tionally recognized artists to
merge art and technology, gar-
nered international press, in-
spired further programs
(curatorial advisor to Glenn,
Maurice Tuchman, went on to
found LACMA’s famous Art and
Technology initiative), and put
the city on the art world map.
Intended to launch a greater
public art initiative in Long
Beach, the nine pieces compris-
ing the Monumental Sculpture
Collection became the nucleus
of what is now the CSULB Out-
door Sculpture Collection. The
collection has grown to twenty-six works and includes
Robert Irwin’s Window Wall, the site-specific landscape-
framing gem at the School of Art, work by local favorite
Claire Falkenstein, and works like the iconic Carlson/Bloc
Tower, the centerpiece of campus (and subject of count-
less postcards, diploma frames, and graduation an-
nouncements), which now adorn the campus with little
understanding of their history or significance.
This year, the University Art Museum and CSULB
celebrate the 50th anniversary of the internationally
acclaimed symposium and collection. However, over
fifty years, the works have suffered the wear and tear
of the elements and are in need of conservation and
restoration work. What would normally be a huge
undertaking for the campus be-
comes the perfect case study for
the Getty Conservation Institute’s
Outdoor Sculpture Research initia-
tive. The GCI, conserving works
worldwide, has prioritized the
sculptures on campus. Think
about what this means - for UAM’s
collection, the campus, the city
of Long Beach - we have world-
class artworks in our midst, wor-
thy of the Getty, and on par with
those around the world. In a city
committed to the arts, this is a
source of pride. No culture in his-
tory has thrived without strong
support of the arts, and Long
Beach is no different.
This fall, the UAM presents
Far-Sited: Sculpture Sym-
posia 1965/2015, an exhibi-
tion exploring the
behind-the-scenes dynamics
of this historical event, in-
cluding works of art, film,
press, personal letters, and
more from the archives, on
display for the first time. In
addition, as part of the col-
laboration with the GCI, and
in partnership with the Mu-
seum of Latin American Art, international confer-
ence Far-Sited: Creating and Conserving Art in Public
Places, will be held at CSULB October 16-18, 2015,
examining new trends, technologies, and alternative
practices in public art, and the role of conservation
for art in the public realm.
Join UAM in our celebration, learn more, adopt a
sculpture for conservation, and sign up for the con-
ference at www.far-sited.org. �
Art Matters in theBanking Industry� By SARAH BENNETT
Arts Council for Long Beach Contributor
The banking industry and the arts might sound like two op-
posing worlds, but in Long Beach, they have always been
seamlessly connected.
Two of the city's hometown financial institutions – Farmers &
Merchants Bank and the International City Bank – both have long
histories of supporting and engaging with local arts. And both have
downtown locations full of rich creative histories in themselves.
Farmers & Mer-
chant's main of-
fice is the Italian
Renaissance Re-
vival structure on
the corner of 3rd
Street and Pine
Ave. Built in 1923
by noted Los An-
geles architects
Aleck Curlett and
Claud Beelman, it
resembles a Greek
or Roman temple
and to this day
contains richly de-
tailed terra cotta
cladding.
“It’s been main-
tained exactly the way
it was when it was
built, other than the
computer and electric-
ity systems that we in-
stalled,” says Phil
Sblendorio, Senior
Vice President at
Farmers & Merchants
Bank. “The compli-
ments we get from
our main office is very
gratifying.”
Beyond maintaining
architecturally signifi-
cant structures as
branches (its Bell-
flower location is also
notable), Farmers &
Merchant commits itself to the arts through a variety of philan-
thropic efforts. Last year, for example, the bank sponsored the Arts
Council for Long Beach's State of the Arts address, and it makes an-
nual donations to everything from the Long Beach Symphony to
the Aquarium of the Pacific.
“In public schools, the arts have kind of gone to the wayside. It's
not a big priority,” says Sblendorio. “That’s a problem because I truly
believe that the arts really inspire creativity. The future of coming
up with ideas and imagining comes from that side of the brain and
we don’t put that much emphasis on it anymore unfortunately.”
Former International City Bank CEO Jane Netherton has always
had a personal connection to the arts, one that she attached her
employers name to whenever possible during her 28 years with
the company.
Through Netherton sitting on the boards of local arts groups,
co-chairing galas and assisting with fundraising efforts, the small
community bank was able to support organizations like the In-
ternational City Theatre and Musica Angelica without major fi-
nancial input.
“Anytime I’m personally involved, the banks name is attached
to me since I was the CEO, therefore the bank gets exposure,”
Netherton says. “I live and work in Long Beach and I think it’s so
important. If you live and work in a city you need to give back to
it. That’s my personal feeling.” �Khmer Krom troupe performing Chaiyam, a Cambodiandance, at the 2015 Cambodia Town Culture Festival.
FAR-SITED: The UAM Celebrates 50 Years of Public Art
Detail image of Farmers and Merchants Bank 3rd andPine Location
Farmers and Merchants Bank 3rd and Pine.
Installation of Piotr Kowalski’s Now, 1965.Image provided by CSULB University Archives.
Joop Beljon, Homage to Simon Rodia, 1965. Image pro-vided by CSULB University Archives
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 18
One of themost importantcomponents ofnonprofit man-agement isforming andmaintaining agreat board ofdirectors. As anonprofit, youmight be lookingfor new boardmembers. As anindividual you
might be seeking to serve, orhave been asked serve, on aboard of a nonprofit. After manyyears of serving on and chairingnonprofit boards, I was asked toshare my thoughts on this, whichI am pleased to offer.
How to Find “Mr. orMs. Right” Board MemberIf you are looking to enhance a
nonprofit board of directors, becertain of your needs. It is moreimportant to fill board seats withindividuals who have a sincereinterest in the mission of your or-ganization and can add value toit, rather than filling a seat forthe sake of meeting a bylaw re-quirement. While having a fullboard is essential, adding “afriend of a friend” who is lookingto get on a board - any board -to enhance a resume could notonly harm your organization bytying up an active seat, but couldalso damage its reputation andstanding in the community.
Filling a vacant seat is only ben-eficial when it is occupied by anindividual who can add value toyour organization. Start with aface to face conversation with acandidate.
Be prepared by:• Having a document of expec-
tations and requirements of boardmembers so both you and thecandidate can ascertain the ap-propriateness of an appointment.
• Asking the board candidatequestions about what they willbring to the board and how theybelieve they can assist in achiev-ing the goals of your missionstatement.
• Having the Chair or Vice Chairat the meeting (if you are the Ex-ecutive Director or CEO) indicatesthat the board is active. It alsoprovides a different perspectiveon the meeting.
• Do not under sell board re-sponsibility. A big mistake that hasbeen made many times is to tell apotential candidate that it “doesn’ttake much of your time” and “wedo not ask a lot of our board,” asthat could be exactly what you get.
Another major component of re-cruiting and maintaining yourboard, is succession planning. Asboard members age, have thenext generation ready and trainedto take a leadership role on theboard. Build and grow your boardcarefully, looking for individualsthat have expertise in areas thatare important to your organiza-tion. The search for board mem-bers is ongoing. Don’t wait until aseat is available to start yoursearch. Be mindful and alwayskeep your eyes open for a personthat would be a good fit for yourorganization. By doing this, youwill be more successful in growingthe organization’s ability to servethe needs of the community andindividuals that the organization isfounded to serve.
How to Find the Right Nonprofit Board for YouFirst, let me just put this out
there clearly: joining a boardshould not be done to enhanceyour resume. Not only are youdoing the organization and its ben-eficiaries a disservice, you are tak-ing a seat that could be filled bythe many people in the communitythat are eager to add value bybeing an active participant.
Make certain you:• Understand the organization’s
structure and mission and you arepassionate, or at least somewhatpassionate, about what they do.
• Reach out to either the Execu-tive Director/CEO or the BoardChair and express your interest atbecoming involved.
• Ask enough questions to see ifyou are a good fit.
• Can meet the board’s expecta-tions and requirements
• Understand that board mem-bers do not run the organization,but do play the role of assisting theExecutive Director or CEO whereneeded and when asked.
• Can be an advocate of the or-ganization.
• Think being a board memberwould be fulfilling to you, as wellas the organization.
• Take the time to research themany organizations in our commu-nity, find out what their missionsare, and how they deliver their pro-grams to see which one fits withwhat you would like to be involved.
• Most of all, make certain thatyou are joining for all the right rea-sons, not just because someoneasked you to do it.
The old saying that “you onlyget out of something what you putinto it” is not just a cliché. It is atruism and the experience ofbeing involved in something thatmakes people’s lives better or en-hances the community can be ex-tremely rewarding. Whether youare an individual looking to join aboard or an agency nonprofit or-ganization looking for a board
member, I wish you the best ofluck in finding the right fit.
(Jane Netherton currently Chairsthe Long Beach Community Foun-dation Board, the CSULB Board ofGovernors and the Queen MaryHeritage Foundation Board. Shealso serves on the Executive Com-mittee of Musical Theater West,and is Past Chair and current BoardMember of the Long Beach AreaConvention and Visitors Bureau.)
THE NONPROFIT PAGECurated By The Long Beach Nonprofit Partnership
The area’s regional capacity builder, serving local organizations to strengthenand grow through leadership, education and collaboration. Offering:
Professional Development & TrainingNetworking & Collaboration
Custom Training & Consulting ServicesInformation Resources
To learn more, visit us at www.lbnp.org.4900 East Conant St., Building O-2, Suite 225, Long Beach, CA 90808
562.888-6530
Capacity Corner: Upcoming Calendar of EventsFrom the Nonprofit PartnershipEssentials of Human Resources Certificate ProgramThursdays, April 30-June 4, 2015; 2-5:00 pm (in San Pedro); This 6-session certificate program willprovide the knowledge and practical skills for human resources administration and management.Meet the Funders – Capcity Building: Advocating Your PositionMay 19, 2015; 8-9:30 am; Join select funders and grantees as they discuss best techniques in ad-vocating for capacity building support.Introduction to Program EvaluationMay 21, 2015; 9 am–4 pm; Demystify evaluation and receive tips and tools to help your or-ganization get started on evaluation.From our Partners2015 Nonprofit Benchmarks StudyMay 6, 2015; 11 am (webinar); Join this free webinar to learn how you can use NTEN’s bench-mark study data to transform your online programs. For more info, visit: nten.org.Professional Advisor Breakfast – Addressing Client Competency Issues for Attorneys, CPAs and Financial PlannersMay 7, 2015; 7:30-9:00 am; For more information and to RSVP, visit: longbeachcf.org.Training Staff to Supervise VolunteersMay 17, 2015; 9:30 am-Noon; Learn techniques and investigate methods to coach others tomanage volunteers & broaden the impact of your programs. For more information, visit:doviala.org.Meet Gilbert Tran of the federal Office of Management and BudgetWednesday, June 3, 2015; 7:30-10:00 am.RSVP for this unusual chance to ask all the questions you have ever had about the OMB UniformGuidance. For more information, visit: calnonprofits.org.
Nonprofit Board Membership Essentials
Jane NethertonChair, Long Beach
Community Foundation
Nonprofit NewsWelcome to . . .Peter BosticExecutive DirectorComprehensive Child DevelopmentSusana SgniemExecutive DirectorUnited Cambodian Community John Royce Membership CoordinatorHistorical Society of Long Beach
Long Beach Business Journal 19April 28-May 9, 2015
A New Focus forNonprofit BoardsShape Mission and Strategic Direction• Shape and clarify mission and vision• Engage actively in strategic deci-
sion making and policy decisions
Ensure Leadership and Resources• Select, evaluate and develop theCEO or Executive Director• Ensure adequate financial resources• Lend expertise; provide access topeople (i.e. community, elected offi-cials, funders) to meet organiza-tional need• Enhance the reputation of the or-
ganization
Monitor and Improve Performance• Oversee financial management,ensure appropriate risk management• Monitor performance, ensure ac-
countability• Improve board performance• Use board time effectively and ef-
ficientlySource: The ABC’s of a High Functioning Board,
Mike Hoff, Hoff Consulting
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 19
� By SAMANTHA MEHLINGER
Senior Writer
T he ports of Long Beach and Los An-geles both moved record-breakingamounts of cargo in March, making
great strides in processing a buildup ofships waiting in the harbor and containersstacked high on terminals. Goods move-ment through the ports had been at a nearstandstill in the first month and a half of2015, as a congestion crisis was pushed togridlock due to heated and prolonged con-tract negotiations with longshore workers. The congestion crisis began in August,
ahead of the peak shipping season, due toa combination of changing factors impact-ing the supply chain. Ocean carriersformed alliances and began shipping theirgoods on much larger ships than WestCoast ports had typically handled. As Portof Long Beach (POLB) Chief ExecutiveJon Slangerup discussed during his State ofthe Port presentation in January, the oceancarriers did not arrange their cargo in anyparticular order, creating difficulties un-loading the massive ships. Also at issue wasa shortage of chassis, the trailers used bytruckers to haul containers.In October, reports began surfacing that
fewer longshore workers than normal werebeing deployed to the San Pedro Bay ports,further exacerbating congestion problems.From January through early February, con-tract negotiations between the InternationalLongshore & Warehouse Union (ILWU),which represents longshore workers, andthe Pacific Maritime Association (PMA),which represents the employers of thoseworkers, seemed to reach a standstill – andso did cargo movement through the ports.
In February, the Port of Los Angeles(POLA) experienced a 10.2 percent de-crease in total cargo volumes in compari-son to the previous year, while the POLBwas hit with a 20.1 percent decline. The ILWU and PMA reached a tentative
agreement in mid-February, and work tomove containers resumed its normal pace.In March, the POLA had its second busiestmonth in its history, experiencing a 17.3percent year-over-year increase in cargovolumes. The POLB had its busiest Marchever with a 32 percent increase in cargovolumes from the same month in 2014. Bymid-April, the backlog of ships at anchorin the harbor waiting for entry to the portswas completely cleared thanks to the ports’speedy processing.Through the first three months of the year,
the Long Beach port experienced a 3.3 per-cent decrease in overall cargo traffic, whilethe Los Angeles port saw a 5.5 percent de-crease. Still, economists and international
trade analysts expect the ports to reboundfrom the congestion crisis, regain businessthey lost and achieve growth in overall cargovolumes by the end of the year.“If you were to set aside the congestion
and the labor dispute [that occurred] atWest Coast ports, theoretically this shouldbe not just a very good year for port activ-ity, but probably a record year or at least anear-record year for container activity atlocal ports,” Robert Kleinhenz, chief econ-omist for the Los Angeles County Eco-nomic Development Corporation, told theBusiness Journal.Steven Cochrane, managing director of
Moody’s Analytics, explained that strongeconomic fundamentals ought to translateto a good year for the ports. “We’re seeinga bit of acceleration in wage growth . . .[and] hiring rates seem to be improving,and improving very quickly,” he said. Jobswitching – when someone leaves one jobfor a higher-paying position – is also on the
rise, he noted. “Income growth ought to bebetter this year than it was last year.Stronger income growth [coupled with] astronger dollar ought to bring in strongerimport flows through the San Pedro Bay.”An April report by the National Retail
Federation and international trade consult-ing firm Hackett Associates projected a17.2 percent increase in imports throughthe San Pedro Bay ports over the next sixmonths compared to the same time periodlast year. For the year, the report forecasteda 2.7 percent increase over 2014, equatingto about 7.9 million twenty-foot equivalentunits (TEUs) of total cargo volumesthrough POLA and POLB.Ben Hackett, principal of Hackett Associ-
ates, told the Business Journal there are threereasons he expected the San Pedro Bay portsto rebound from a difficult start to the year. “One is the congestion, or the backlog,
is clearing up fairly rapidly,” he said. “Secondly, the cost of shipping to the
U.S. East Coast is about twice as much tothe West Coast.” During the congestion cri-sis, some shippers diverted cargo from Asiathrough the Panama and Suez Canals – butHackett expected that the differential costof doing so, which is about double, wouldbring that business back. “Thirdly, the East Coast ports are con-
gested due to too much cargo showing up,”Hackett said. “We think that, overall, themarket shares [of trade to the San PedroBay ports] will revert back to what theywere before December.”John Husing, economist and owner of
Irvine-based Economics & Politics, Inc.,also said that the two ports would certainlyrebound from the congestion issues they
20 Long Beach Business Journal April 28-May 11, 2015SAN PEDRO BAY PORTS
As The San Pedro Bay Ports Recover From Epic Congestion, Cargo Volumes Are Expected To Rebound
Looking north toward the Port of Los Angeles and the Palos VerdesPeninsula. At bottom right is part of Pier T at the Port of Long Beach.(Photograph provided by the Port of Los Angeles)
Longshore workers atthe Port of Long Beachoversee the placementof a shipping containeron a chassis, equip-ment used by truckersto haul containers. OnFebruary 20, the Inter-national Longshore &Warehouse Union andPacific Maritime Asso-ciation agreed to a ten-tative labor contract forlongshore workers atWest Coast ports,bringing an end tomonths of protractednegotiations. (Photo-graph provided by thePort of Long Beach) (Please Continue To Page 23)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 4:16 PM Page 20
2015
Page 23)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 21
April 2
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 22
faced over the past several months. His pro-jection is that the ports should see recordor near-record level growth this year. Thereis a good chance that, combined, the portswill exceed the record-level 8.2 millionTEUs of cargo traffic they experienced in2006, he said. “They will certainly exceedeight million TEUs,” he added.The projected growth is mainly attributed
to imports, with a stronger U.S. dollar andbetter income levels making imported goodsmore affordable for consumers. Exports, onthe other hand, may take a hit this year. “Thefact that the value of the dollar is on the risemeans that our exports are less competitive,”Kleinhenz explained. “The export side ofthe story is one that causes us concern, andit’s not clear at this point how the exports aregoing to play out in the year.”Cochrane said that U.S. exports have al-
ready begun a downward trajectory. “Wehave data on export flows of goods and com-modities by region, and they have fallen inevery region since late last year, and prettysharply,” he said. Due to Asian economiesbeing stronger than those in Europe, “Thedownturn in [exports in] the west has beenless severe than elsewhere,” he noted. Hack-ett said exports ought to remain sluggish forat least six more months, if not longer. Kleinhenz noted that the efforts the twin
ports are making to resolve supply chain is-sues that caused the congestion crisis arealso a factor in projected growth. Workingwith stakeholders throughout the supplychain, the ports are seeking to identify and
resolve impediments to efficient goodsmovement. The ports are able to undertakethis task under an expanded discussionagreement, which was authorized by theFederal Maritime Commission in February. Executives from the two ports met in
March for preliminary talks. On April 22,the ports held a forum on supply chain op-timization at Long Beach City Hall withrepresentatives from all components of thesupply chain – ocean liners, labor, cargoowners, terminal operators, truckers, rail-roads and more. Making these efforts is necessary for
the ports to remain competitive, accordingto Cochrane, especially as a widenedPanama Canal is set to open some time inthe next year or two, which may divertsome traffic to the East Coast. “Just intalking with people who work at some ofthe port authorities here on the East Coast,they definitely saw an uptick in shipmentsfrom Asia [during the West Coast ports’congestion crisis],” Cochrane said, addingthat data backs up that claim.“This certainly illustrated a willingness
to use alternative ports when they had to. Soit does create some risk for the [San PedroBay] ports, particularly with the newer portexpansions in the Southeast as the ports thathave been gearing up for the [Panama]canal expansion,” Cochrane explained.Husing and Kleinhenz don’t expect the
Panama Canal expansion to be much of athreat, however, because, while it will beable to handle larger ships, it will not beable to handle the massive ships topping18,000 TEUs currently on order by majorocean carrier lines. �
April 28-May 11, 2015 Long Beach Business Journal 23
San Pedro Bay Ports(Continued From Page 20)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 23
April 2
locity improvements,” Slangerup said in an
interview at the port’s headquarters.
In early 2015 – during the worst of the
congestion caused by a confluence of is-
sues including contentious labor negotia-
tions, massive shipments of cargo and a
shortage of the equipment truckers use to
haul containers – more than 30 ships were
at anchor awaiting entry to both the POLB
and the Port of Los Angeles (POLA). On
April 20, the POLB announced that the
backlog of ships had finally been cleared.
“I don’t know that we’re completely nor-
mal, because we still have a bunching of
vessels out there in the ocean,” Slangerup
said in reference to ships seeking entry to
the port. “But the good thing is we’re now
processing [them] within a day or so.”
The port had the busiest March in its his-
tory this year after full operations resumed
when a tentative contract resolution for
longshore workers was reached between the
International Longshore & Warehouse
Union and the Pacific Maritime Associa-
tion. Before that point, fewer workers than
necessary were being deployed to move
load and unload ships since at least October.
“All of the containers that were sitting
out at anchor are now processed,”
Slangerup said. “We’re congested, but
we’re not at gridlock like we were during
the height of the congestion crisis.”
Part of the reason the port is still contend-
ing with a backup of containers is that when
cargo owners diverted their shipments to
other ports due to the gridlock, the railroads
repositioned their assets to accommodate
those moves, Slangerup explained. About 70
percent of containers that pass through the
port move by rail, he noted. The port is work-
ing with the railroads to rectify that issue.
Despite a lingering backup of containers,
Slangerup said the volume of cargo traffic
through the port for the month of April is
tracking at about a normal pace. “We
should be back to where we normally are
by May. The question will be, how does
May shape up, and beyond?”
That question may linger for some time
as the port works to regain the confidence
of the beneficial cargo owners who di-
verted their shipments elsewhere during the
peak of the congestion crisis.
“The biggest job here is clearly dealing
with regaining the freight that was diverted.
I mean, there is no question that there was
a significant amount of diversion,”
Slangerup said. “So we want to make sure
that we get all or more of that back. We’re
working very hard on that.
“A lot of people in various venues have
asked me, ‘With all the things that have hap-
pened, what’s the new normal?’” Slangerup
reflected. “In my view, the new normal must
be better than anything we’ve ever had in
the past. Take our best day, and it’s got to be
a step [up] improvement over that.”
Improving The Supply Chain
Working in partnership with other
stakeholders in the supply chain,
the POLB has been working for months to
create a more efficient flow of goods
through the port complex.
One of the principal causes of the con-
gestion crisis was that truckers within the
port complex were facing difficulties pick-
ing up and dropping off chassis, the trailer
equipment used to haul containers. At the
root of the issue was a change in owner-
ship over the equipment. When ocean lines
sold off the chassis to three local compa-
nies last year, the model for chassis use be-
came more complicated. Truckers had to
pick them up and drop them off at specific
locations rather than interchangeably,
causing delays. This began occurring dur-
ing peak season, as goods were shipped in
advance of Christmas.
The Port of Long Beach partnered with
the Port of Los Angeles and the three chassis
companies to create a new model of chassis
use, called a gray pool or gray fleet, which
was officially launched on March 1. The
model allows for more interchangeable use
of the equipment. “We are happily satisfied
that the new gray fleet of chassis seems to
be functioning well,” Slangerup said. “The
next big test of that is getting as much of that
asset base ready for peak [shipping season]
as possible. We’re really right now very fo-
cused on peak planning, because we simply
don’t want a repeat of last year.”
The port also recently extended the use
of a vacant plot of land on Pier S for tem-
porary storage of containers and chassis to
help facilitate a smoother flow of goods
through the port. The extension, granted by
the harbor commission in March, lasts
through September.
Investing In The Future
To enhance its competitiveness and
prepare for a changing shipping in-
dustry, the Port of Long Beach currently
has more than $4 billion in capital im-
provement projects underway.
The fact that ocean carriers are investing
in bigger and bigger ships necessitates up-
grading infrastructure to accommodate
them, and the Port of Long Beach is doing
just that with its Gerald Desmond Bridge
Replacement Project and Middle Harbor
Redevelopment Program.
“We anticipate in the next five years to see
18,000 TEU [twenty-foot equivalent unit]
vessels calling to port here. And beyond that
we have 21,000 TEU vessels on order by
certain customers that we know are going to
call at our port,” Slangerup said. “So the big
ships are big and getting bigger.”
The Gerald Desmond Bridge, which
hovers over the entryway to the port’s inner
channel, is being demolished and replaced
with a higher cable-stayed bridge to allow
for bigger ships to pass beneath it. The
bridge will also be wider to accommodate
more traffic on its deck.
Last year, Caltrans ordered a redesign of
the original bridge plans to “beef up the
structures of the bridge” for safety reasons,
Slangerup said. The resulting year’s worth
of extra engineering work resulted in mil-
lions of dollars in change orders. In about
a month, port staff will request a project
budget increase from the Long Beach
Board of Harbor Commissioners to accom-
modate the change orders, Slangerup said.
The port is currently funding the added
costs, but staff is working to identify alter-
native sources of funding. The current
budget is about $1.3 billion.
Despite these issues, the bridge is on
track for completion in 2018, Slangerup
emphasized.
The $1.3 billion Middle Harbor Project
is currently on schedule and on budget. The
project involves combining two aging ter-
minals for Long Beach Container Terminal
(LBCT), a division of Orient Overseas Car-
rier Line, creating deeper water, and outfit-
ting the new terminal with zero-emission
technology and some of the largest cranes
in the world to accommodate larger ships.
Work on the first phase of the project
should be substantially completed by July,
allowing LBCT to perform testing on the
terminal before it goes live early next year,
Slangerup said.
The port is also investing about $1 bil-
lion in creating more on-dock and near-
dock rail infrastructure. Currently, about 23
percent of cargo moves via on-dock rail,
meaning it is moved straight from a ship
onto rail. Near-dock rail infrastructure al-
lows cargo to move from ship to rail over
a very short distance, although not via di-
24 Long Beach Business Journal April 28-May 11, 2015SAN PEDRO BAY PORTS
Phase I of the Middle Harbor project in the Port of Long Beach is expected to be completed this summer and operational in Jan-uary 2016. The complex, operated by Long Beach Container Terminal, a division of Orient Overseas Carrier Line, features zero-emission technology and equipment to handle the world’s largest ships. (Photograph provided by the Port of Long Beach)
Jon Slangerup(Continued From Page 1)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:56 PM Page 24
rect transfer. The port’s current program to
expand this infrastructure would allow 35
percent of cargo to be moved via on-dock
rail, thereby eliminating truck trips and re-
ducing air emissions, Slangerup explained.
In addition to these capital improve-
ment projects, the port is moving forward
with a project Slangerup has dubbed En-
ergy Island. Although the concept is still
preliminary, if eventually approved, the
project would involve installing a variety
of energy-generating mechanisms such as
wind turbines, fuel cells and solar panels.
The idea is that the port would be able to
function entirely on its own energy gener-
ation from sources resistant to cyber at-
tacks, and might even be able to
contribute surplus energy to Southern Cal-
ifornia Edison’s power grid.
The plan would both ensure security for
the port and benefit the regional environ-
ment, Slangerup noted. He would also like
to include a water treatment and desalina-
tion plant in the plans, which could provide
an added benefit to the community.
“We are now in the stage of doing the de-
tailed planning for a phased approach to En-
ergy Island,” Slangerup said. “We have
[taken] three trips now to Washington,
D.C., and Sacramento, where we are getting
our lawmakers involved,” he noted, adding
that the port is also working to identify po-
tential sources of funding. The port has al-
ready met with Southern California Edison,
Southern California Gas, the city’s gas and
oil department, South Coast Air Quality
Management District and the U.S. Navy, all
of which are part of what Slangerup views
as the project’s key stakeholder group. �
April 28-May 11, 2015 25 2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 25
Pedro Bay ports have imple-mented a series of initiatives toget the cargo left over from con-gestion moving. Now, POLAterminals are still stacked highwith containers filled with im-ports for U.S. consumers – butthe line of ships at anchor hasfinally disappeared. In an interview with the Busi-
ness Journal at the POLA’sheadquarters in San Pedro,Seroka said his No. 1 prioritynow is “returning our port backto a sense of normalcy so thepeople within the supply chain– our stakeholder groups as wellas the cargo owners – can regaina sense of confidence in theservices that we put forwardhere.” He intends to instill thatconfidence by creating a “senseof predictability within the sup-ply chain and a reliability of theservice that we offer.”“We have worked pretty dili-
gently on both sides of the portcomplex to really get the cargomoved through the ports and outto the cargo owners as swiftly aswe can,” Seroka said.In terms of container traffic,
this March was the busiestMarch ever for the Port of LosAngeles, and the second busiestmonth in its history. That’s notbecause of an influx of newbusiness; Seroka attributed thespike in traffic to the speed withwhich the dozens of containerships left over from the peakcongestion period were un-loaded and loaded. “Both ports have really gotten the back-
log down to a level now where we have areally good and clear line of sight as to howwe need to get that cargo processed throughour complex,” Seroka said. Terminals at the POLA were still operat-
ing at more than 100 percent capacity as ofmid-April. “We’ve got more cargo on theterminals than is normally planned for ona daily basis, but the output of cargo goingthrough the gates is also at record num-bers,” Seroka pointed out.While both San Pedro Bay ports are now
operating above and beyond a normal pace,for months they were bogged down withcongestion and work slowdowns, causingsome customers to grow impatient andreroute their shipments elsewhere. “Weknow through meetings directly with thecargo ownership community that a lot offolks have taken cargo and moved it via theEast Coast or Gulf Coast,” Seroka said.“We’re in talks right now to see how we canearn that cargo back.”“There is no doubt that there is at least
one-third of our cargo [that] is purely dis-cretionary, and potentially even more,”Seroka said. “Which means we not onlyhave to prove that we can get back to beingthe nation’s number one container port byvolume, but prove that through our con-veyance process.”Seroka called the record-breaking move-
ment of cargo through the port in March “ademonstration of how swiftly we can work
and take a heavy volume of cargo and moveit through the port complex.” Another demonstration of the port’s abil-
ity to quickly move cargo came a fewweeks ago, when three 13,000 TEU shipsvisited the port’s APM Terminal at once.“That created more than 34,000 [cargo]moves – the highest move count of densefashion in the United States to date,”Seroka emphasized. “We hope that demon-strates our sincerity to the cargo ownerpublic and the other stakeholders that . . .we are the port of choice.”
Creating Supply Chain Efficiencies
Over the past several months, thePOLA has partnered with other
trade stakeholders to implement new sup-ply chain strategies. To address a short-age of chassis, the equipment truckersuse to haul containers, the POLA workedwith the Port of Long Beach and thethree local chassis companies to make iteasier for truckers to pick up and drop offchassis. The new model was tested inFebruary and has been fully operationalsince March 1.“The interoperable nature of the chas-
sis pool allows for better inventory plan-ning at these [pick up or drop off]locations to have the right amount ofchassis at the proper time available upondischarge or loading of the vessels,”Seroka explained. “And we have seen,
based on the numbers, some very goodprogress in this area.”Another way the port is facilitating the
flow of goods is by creating a “peel-off ”program in which large shipments fromhigh-volume customers are quickly movedto a “near-dock yard where they are sortedfor destination to inland distribution cen-ters,” according to a POLA statement. Theport partnered with Pasha Stevedoring &Terminals, trucking firm Total Transporta-tion Services Inc. and major retailers on thisprogram. The peel-off initiative, which wasannounced in March, has had encouragingresults and may be expanded, Seroka said.The POLA is also experimenting with
technology to help cargo move morequickly through the supply chain. The portrecently partnered with Cargomatic, aVenice Beach company, to implement aGPS-based technology to quickly attracttruckers to the harbor to pick up and delivercargo to customers. The platform is similarto phone applications used to call taxis. “The unique facet about this [Cargo-
matic] application is that once the deliv-ery is completed, the trucker will be paiddirectly online . . . which will allow themto not only get more turns from the oper-ational side but to have stricter controlsover their finances,” Seroka said. “Wehave been testing this at China Shipping’sfacility at West Basin Container Terminaland we hope to roll this out to other ter-minals in the near future.”
Investing In World Class Infrastructure
Beyond returning theport to a sense of nor-
malcy, Seroka is most focusedon continuing to provide“world class infrastructure”for the port’s customers. “Over the past eight and a
half months that I have beenon the job, we have made astrong effort to ensure that wehave very good relationshipswith the [ocean] liner compa-nies and the terminal operatorsto get an understanding ofwhat their business plans aredown the line so we can bereadily prepared for that,”Seroka said. “What we have today is
ships calling our terminalsthat were designed twodecades ago for vessels halfthe size that are coming herenow,” Seroka said of the needfor infrastructure investments.“We are in the midst of ourannual budgeting process forthe city, as a proprietary de-partment, and we put a keenfocus on capital improve-ments that will carry us notonly for the next fiscal yearbut for the next 10 years.”Major improvement projects
for four terminals within thePOLA are planned to breakground over the next twoyears. Next year, the port isstarting a five-year, $510 mil-lion improvement project forthe TraPac Terminal, a sub-sidiary of Japan-based MitsuiO.S.K. Lines Ltd. That project
includes extending wharves, creatingdeeper water at berths, building a new on-dock rail facility, installing new cranes,upgrading backlands and more. Similar capital improvement projects
for terminals operated by Yusen TerminalsInc., Yang Ming and Everport are sched-uled to begin in 2016. Those projects willcost $49 million, $122 million and $40million, respectively.The $383 million Transportation Im-
provements Program, which began thisyear, will ultimately “improve freeway ac-cess to port facilities, eliminate trafficmovement conflicts, improve existingnon-standard elements and accommodateexisting and future traffic conditions forport and background traffic,” accordingto a POLA statement. The goal of theproject, along with improving traffic, isto reduce truck traffic on roadways usedheavily by the public.The port is further focusing on the
community through its recently approved$400 million 10-year Public Access In-vestment Plan, which includes an array ofprojects aimed at improving the public’saccess to and enjoyment of the harbor wa-terfront. “We have already got projectsoutlined throughout the harbor area ofWilmington, Harbor City and San Pedrofor immediate development and planning,many of which have already been put intothe recommendations for the 2015-16budget,” Seroka said. �
26 Long Beach Business Journal April 28-May 11, 2015SAN PEDRO BAY PORTS
Gene Seroka
(Continued From Page 1)
“Over the past eight and a half months that I have been on the job,
we have made a strong effort to ensure that we have very good
relationships with the [ocean] liner companies and the terminal
operators to get an understanding of what their business plans
are down the line so we can be readily prepared for that.”
Gene Seroka, Executive Director, Port of Los Angeles
(Photograph by the Business Journal’s Evan Patrick Kelly)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 4:18 PM Page 26
2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 27
SAN PEDRO BAY PORTS28 Long Beach Business Journal April 28-May 11, 2015
� By MICHAEL GOUGIS
Contributing Writer
S ometimes change takes place soslowly that it’s hard to see progress.It takes a decade from birth for an av-
erage male child to grow three feet inheight. It takes more than a decade for aninvestment, at a seven percent com-pounded interest rate, to double. On a dailybasis, the changes are all but invisible.But after that decade, the child looks
nothing like the infant, and the investmentis literally twice the amount you startedwith. The changes, over time, are dramatic.For the Port of Long Beach, it has been
a decade since it adopted its Green Portpolicy. And the port is celebrating that an-niversary with no small degree of satis-faction. Even with the bumps in the roadand the challenges, the environmental im-pact of the port on the surrounding com-munity, the air and the water has changedso significantly that it is almost hard tocomprehend.“We’ve really made a lot of progress,”
Rick Cameron, managing director of plan-ning and environmental affairs at the Portof Long Beach, told the Business Journal.At the heart of the policy has been the
Clean Air Action Plan. Developed with thePort of Los Angeles, the first area of atten-tion was the fleet of trucks servicing theports. Because semi-tractors are so expen-sive and so durable, they tend to remain inuse for a very long time – think of how longlocomotives stay on the rails.But these older trucks were a major
source of air pollution, and thus a greatdeal of effort was focused on reducingtruck pollution.“One of the centerpieces of the Green
Port policy, and the priority at that time,was the Clean Air Action Plan,” Cameronsaid. “The reason that was a priority wasbecause of the impacts of the diesel emis-sions associated with mobile sources – all
of the activity at the port, the vessels, thetrucks, the trains, the cargo handling equip-ment were all sources of a lot of emissions.Diesel particulate matter has been identi-fied by the state as a carcinogen. It hadhealth effects. So that became a priority.“From 2006, which was the initial adop-
tion of the Clean Air Action Pla, one of thesignature programs that came out of theplan was the award-winning Clean TrucksProgram, where we were able to transformthe port truck drayage fleet. That was about15,000 to 16,000 trucks. We were able to,over a period of three years, change outthose older trucks into 2007 or later modeltrucks that met EPA standards. That’s oneof our success stories that I believe cameout of the policy, the resolve of our board,and was focused on protecting those com-munities that were most impacted by thattruck traffic. We’re very proud of that. It’sa focal point for us.”Not all of the diesel pollution came
from trucks. Ocean-going container shipscan burn fuel in the middle of the Pacificthat cause relatively little environmentalimpact. But at dock, those ships are amajor source of pollution. The port hascreated a system to provide electricalpower to ships at dock, allowing them to“cold-iron” (turn off their engines) andeliminate even more pollution.“We’ve invested hundreds of millions of
dollars in ship-to-shore power,” Cameronsaid. “We have provided all the infrastruc-ture to allow container vessels to shut offall their vessel power. Today, more than 50percent of the container vessels that comeinto our port are connecting and shuttingoff their engines. In 2017 and 2018, thepercentage goes up to 70 percent, then 80percent, of all vessels that call on our port.That’s a huge success story.”Port officials realized early on that the
marketplace by itself wouldn’t bring aboutnew technologies needed to help minimizethe port’s environmental impact. The Tech-
nology Advancement Program has been atool by which new technologies get a shotat being tested in real-world conditions.“We have a lot of emerging technologies
that haven’t been demonstrated or used ina marine environment or in the equipmentthat is used to support our activities in theport,” Cameron said. “We developed thisprogram to allow these vendors, the man-ufacturers of these technologies, to comein and find partnerships – whether it is onthe vessels, the equipment operators, orthe trucking companies – and demonstrateutilizing their technologies in an activemode so we can test the actual use of itfrom the emissions side, as well as thecost-effectiveness side.”One contemporary illustration of this idea
is a test for new fuel cell/electric trucks,Cameron said. The program is helping toput a small fleet of the vehicles on the roadfor real-world testing, not just of the trucks,but the system needed to operate them.“That’s important because it starts to (tell
us) how it will operate in a duty cycle, whattype of infrastructure is necessary outsideof the vehicle itself,” Cameron explained.“Is there a need for charging? Where arethey going to get hydrogen or other fuelsources? We have to think about it from thetechnology and from demonstrating it in anoperating sense so we can get a sense of thecost-effectiveness of it and the ability tocommercialize it and deploy it.”Some of the most dramatic changes to
the port are invisible to the naked eye, un-less you are under the surface of thewater. The port’s Water Resources ActionPlan was designed, again in collaborationwith the Port of Los Angeles, to preventcontaminated runoff from entering thewater, and to clean the polluted soil at thebottom of the harbor.“The overall water quality in the ports
meets all of the standards. Where we havehad a problem is where we’ve had con-taminated sediment and how that contam-
ination is released,” Cameron said.“We’ve had a lot of success in cleaning uplegacy contaminated sediments. As wedredge the channels (for bigger containerships), we’re re-using that material. It’svery much like recycling asphalt and con-crete. It’s very sustainable.“Once we take those legacy contami-
nants out of there, and we introduce bestmanagement practices for handling stormwater, we’re making sure that we don’t re-introduce those contaminants. It’s all veryconnected. And what we’ve seen isprogress of the abundance and the diver-sity of the species found in the harborcomplex – and in their habitat. Whatwe’re seeing is, over the past 10 years, wesee the number grow. We’re starting to seedifferent kinds of plants pop up. That’s re-ally our metric. We feel as though we’vebeen very successful.”As for the future, look at the port’s Mid-
dle Harbor project.“We’re looking for zero-emission or
near-zero emission technologies,” Cameronsaid. “That is where we are headed. We’vedone a really good job at cleaning up dieselequipment over the past 10 years. We’vealso introduced alternative fuels, whichgets us off diesel, which is very important."But where we need to be, as a port com-
plex as well as for the region and the healthof our community, is that we need to findthe next generation of technologies thatcompletely get us off combustion,”Cameron stressed. “We’ve been able to dothat in small-scale demonstrations. Our goalin the future is to be able to expand that. OurMiddle Harbor project is a good example ofthat. Within the fence line of Middle Harborthere are no diesel combustion sources. It iscompletely zero-emissions. That really iskind of a model as to where we need to be,from a business point of view and from ourenvironmental emissions goals, and from asustainability point of view of meeting ourgoals on all fronts.” �
Port Of Long Beach: Celebrating A Decade Of Environmental Progress
Rick Cameron is managing director of planning and environmental affairs for the Port of Long Beach.(Photograph by the Business Journal’s Evan Patrick Kelly)
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2015
ss
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SAN PEDRO BAY PORTS30 Long Beach Business Journal April 28-May 11, 2015
� By MICAHEL GOUGIS
Contributing Writer
W ith a decade of solid environmen-tal progress in the books, Port ofLos Angeles officials are looking
forward to the expansion of activities inthe future while still meeting the environ-mental needs of the local population –man, animal, flora and fauna.“Just because we’ve (nearly) met the 2023
goals doesn’t mean that our job is done. Weexpect that the port is going to continue togrow in future years,” said Lisa Wunder, ma-rine environmental manager for the Port ofLos Angeles. “As it grows, that will meanadditional throughput, and the associatedemissions are going to grow. So even thoughwe meet the 2023 numbers, it’s still an ex-isting effort to continue compliance.”With an increased focus on reducing the
environmental impact of the port – which,together with the Port of Long Beach, isthe busiest industrial harbor in NorthAmerica – has come dramatic reductionsin air pollution and related emissions, saysChristopher Cannon, the port’s director ofenvironmental management.“We didn’t have as much as a focus on it
as we do now,” Cannon said. “We’ve had agreat deal of success in recent years incleaning up the drayage truck fleet. Whenwe started, the average drayage truck was12 to 13 years old. They had huge emis-sions, especially in the area of diesel par-ticulate matter. Once we started theprogram, we started working with the ARB[California Air Resources Board] again. Allwe really did was take their requirementsthat kicked in in 2014 and moved them up. “By 2010, we had the majority – between
70 and 80 percent – of our fleet 2007 emis-sions-compliant,” Cannon continued. “Andthe result was over a 90 percent emissionsreduction in particulate matter. That is dra-matic. The trucks were a big part of it. We
had trucks that were early 1980s and earlierthan that. We phased in our Clean Truck re-quirements and focused on getting the old-est trucks off the road first. Each year, wehad a new phased-in requirement.”And with new, even tighter regulations for
drayage trucks looming at the beginning ofthe next decade, truck operators are movingforward and purchasing trucks today thatmeet the standards for years into the future.“The truck fleet keeps on getting
cleaner,” Wunder said. “In the past month,we passed the mark where 30 percent ofour trucks meet the 2010 standards, thenewest engine standard available.”
“Now that we’ve got people thinkingabout clean trucks, now they’re starting ontheir own buying newer and newer trucks,”Cannon added.Big changes in the ocean-going vessels
themselves and the way that they are pow-ered, in motion and at dock, have resultedin equally dramatic reductions in emissions.“We’ve had a lot of collaboration and
support from our industry partners,” Can-non said. “They’ve really embraced ourprograms and a lot of them are, as youknow, voluntary programs. They’ve reallystepped up and begun to implement a lot ofthe programs to reduce emissions.“For example, low-sulfur fuel now is a
requirement – and because of the low-sul-fur fuel requirements, extending out now to200 miles, we expect that we’ll make ourSOx 2014 goals easily when we see thosenumbers. It started as a voluntarily pro-
gram. But that, along with our speed reduc-tion program, really helped to reduce ourship emissions by a large, large amount.And the speed reduction helped with dieselparticulate reduction and NOx, too.”The extent of the success is found in the
numbers.“Our emissions goals for 2014 and for
2023 – we’ve nearly met them,” Cannonsaid. “We’re at 80 percent reduction in dieselparticulate matter, 57 percent reduction inNOx, a 90 percent reduction in SOx. We’vehad a lot of success, and we’re very proud.”There are other ways to measure success
when it comes to environmental recovery.
One of them is visible to the naked eye.Look down into the water in the port, andyou see fish – a lot more fish than used tobe seen in the facility.Better practices have meant that, in lay-
man’s terms, bad stuff doesn’t wind up inthe water any more. Storm runoff, dis-charge from the docks and the vessels, allhave been studied and analyzed, resultingin new ways to deal with the stuff thatused to pollute the water.“Because of the practices and programs
that we have implemented, we are veryproud to say that the water is clean,” Can-non said. “Here we have the largest port in-dustrial complex in North America and oneof the largest in the world. You’d think withall of this industrial activity you would havewater that reflected that. In fact, the wateris very clean. The marine vegetation isgrowing. We see fish swimming up the
channels, and dolphins – we are thrilled.We monitor the water here, and we haven’texceeded a (pollution) standard in a while.”Electricy and efficiency will be watch-
words for future environmental develop-ments at the port. No matter how clean aninternal combustion engine is made, it willstill emit some pollutants. Better to focuson replacing those power sources withzero-emission sources – which, generally,means electric-powered devices. Pluggingships into shore electricity has eliminateda significant source of pollution. But thattakes more electricity, and port officialshave to make sure that the power is therewhen someone throws the switch.“We realize that we can’t rest on our lau-
rels,” Cannon said. “The city and the statehave set greenhouse gas goals. We have towork with our industry partners to addressthose issues. We have to continue to reduceemissions, because as the port’s throughputincreases, we’re going to have to keep emis-sions low. As a matter of fact, when youhave more throughput, that means moreemissions, so the actual emissions per TEUare going to have to continue to go down.“We think our electricity use could
triple,” Cannon continued. “If we’re goingto triple our electrical energy use, we’regoing to have to do some planning on elec-tricity and power availability, resiliency,quality and cost-effectiveness – and ofcourse sustainability.”Efficiency isn’t just a good idea from a
business point of view. It’s good from anenvironmental point of view as well.“Improving efficiency is one of the most
important goals from the environmental sideand from the business side,” Cannon said.“Getting goods to market quicker, gettingships unloaded faster, helps our customers,helps the marketplace and it also – by havinggoods moved in and out of the port faster –reduces emissions. Efficiency is an extraor-dinarily important goal for us.” �
April 2
Environment, Economics And
The Future: The Port Of Los Angeles
Looks Forward
Christopher Cannon is the director of environmental management for the Port of Los Angeles, and Lisa Wunder is marine environmental manager. (Photograph by the Business Journal’s Evan Patrick Kelly)
“We’ve had a lot of collaboration and support from our industry
partners. They’ve really embraced our programs and a lot of them
are, as you know, voluntary programs. They’ve really stepped up
and begun to implement a lot of the programs to reduce emissions.”
Christopher Cannon, Director of Environmental Management, Port of Los Angeles
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SAN PEDRO BAY PORTS 2015 April 28-May 11, 2015 Long Beach Business Journal 31
W hen you boil it
down, international
cooperation on com-
merce does a better job of making the
world a better place for everyone than
disengagement ever can, according to
someone who has negotiated some of
the most complex and influential
trade agreements in history.
In an interview with the Business
Journal in his high-rise downtown
Los Angeles office, former U.S. Sec-
retary of Commerce Mickey Kantor
insisted that continued, extensive
economic engagement with countries
like China and Mexico creates bene-
fits here and abroad.
“My view of that is you embrace
other nations until they indicate to
you that they do not want your affec-
tions,” said Kantor, this year’s recip-
ient of the Stanley T. Olafson Award,
presented by the Los Angeles Area
Chamber of Commerce to an out-
standing member of the world trade
community.
“I’ve always said to people about
trade rules and trade laws and reg-
ulations – would you have us do
this global economy without any
rules whatsoever? Is that what you
want? That’s really the base ques-
tion here. And of course that’s not
what you want.
“What about the environment?
What about labor protection? What
about corruption? What about things
that we know we want to have some
impact on? Trade is the best way to
do that. Either we have rules or we
have none at all. We don’t win in that
kind of world. We don’t win.”
Much of Kantor’s focus nowadays,
as a partner at the Los Angeles of-
fices of the Chicago-based interna-
tional law firm of Mayer Brown, is
on trade with Asia and, in particular,
China. Relations with that country
are important not just to the U.S., but
to the ports of Long Beach and Los
Angeles, the economic engines of the
region, he said.
“COSCO is the largest shipper in
the port, in the twin ports of Long
Beach and L.A., which I have to say I hope one day come
together. Together they would save money, they would be
more efficient and we could compete better . . .
“With the editorial over . . . China is critical to our future,
as we are to China’s. It’s not a one-way street. It’s impor-
tant in terms of investment, technology, education, all
kinds of things where we’re frankly way ahead of China.
They need what we have. They have the population and
the growth and the commitment. We have the background
and the . . . largest economy in the world, one of the most
educated populations in the world. China would like to ex-
emplify what we are, and we ought to take them up on it.”
Still, relations between the two countries are not as solid
as Kantor would like, he said.
“Our relationship with China is,” Kantor paused, looking
for exactly the word he wanted to use, “spotty sometimes.
I worry about that. I think we’re not sure if China is going
to be a future friend or a future foe. I am, let’s say, disap-
pointed that we did not invite China into the Trans-Pacific
Partnership – yet. We will. We should have earlier, in my
view. What it’s done is cause a little bit of tension. China
now has the Asian Infrastructure Bank they’ve put together
and we’ve been excluded from that.
“That is not a pattern I want to see happen – we exclude
China, they exclude us, we don’t cooperate or embrace
each other, we’re not looking to work together. The econ-
omy is where you can really find common ground. On
strategic or political issues you can have differences. On
the economy, we have common goals.”
Kantor said the best way to make sure that China re-
mains a future friend is engagement – which does not mean
endorsement or approval of everything the country does.
“It’s not a matter of blindly being in league with China.
It’s a matter of being smart. [China has] 1.2 billion, 1.3 bil-
lion people, the largest nation on the face of the earth and
the second-largest economy in the world. Why wouldn’t
we have a good, solid, professional eyes-wide-open rela-
tionship with them?
“You don’t need to endorse all their policies. We don’t
agree with their policy of some control over the press or
how they deal with certain religions and so on. But that
doesn’t mean we can’t walk and chew gum at the same
time. You can criticize and try to move China in a direction
that you think is appropriate. You can work with them in
the areas where you agree and you have common interests.”
Moving forward on trade has proven to be common
ground for both countries, Kantor stressed.
“We have continued opening our ports to each other. We
have opened ourselves to investment from China, as they
have from us,” Kantor said. “There have been problems
from time to time. Our Committee on Foreign Investment
[in The United States] has been very tough on investments
from China and security issues when they invest in the
United States – as they should be. I think they’ve been a little
bit too overboard, but that’s me. They’re trying to be careful.
I used to sit on that committee, long ago
when dinosaurs roamed the earth.”
China has taken its own steps toward
becoming a member of the international
business community, Kantor noted.
“Their regulations have become
more liberal in terms of allowing in-
vestments in and allowing invest-
ments out. They’re trying to become
a real international market. They
know it’s important to them. They
know that they can’t grow to the ex-
tent that they want to grow to unless
they do,” Kantor said.
“We’re getting there. I’m impatient.
Everyone’s too impatient. We want it
to happen tomorrow – it’s not. But
when I look back . . . We negotiated
the first trade agreement with China to
join the World Trade Organization
back in the 1990s, and they joined in
2000. It was a long, four- or five-year
negotiation. We gave them a seven-
page, single-spaced typed document –
in the end, they agreed to do every-
thing on that piece of paper.”
China’s decision to join the World
Trade Organization (WTO) was a
major step forward, Kantor said.
“We have taken them to the WTO
courts – and won! – when they have
violated those agreements. It’s the
only international organization where
there are courts and sanctions, and
people agree to them. It’s a really im-
portant thing. It creates a rule of law,”
said Kantor, one of the key negotiators
in the creation of the WTO.
“There are a lot of international tri-
bunals. This is the only one on the
civil side with sanctions that stick. In
1993, when we in the Clinton Admin-
istration were trying to put the World
Trade Organization together, it was a
fight within the administration as to
whether there should be sanctions at-
tached. President Clinton and Vice
President Gore were for them. But it
was a big argument because it was so
unusual to have them in an interna-
tional treaty. And it’s worked. And it’s
worked well.”
Kantor also was key in the negotia-
tions that led to the creation of the
North American Free Trade Agreement (NAFTA) involv-
ing the U.S., Canada and Mexico. Looking back, he calls
the pact effective but in need of revision.
“We did well. Did we do perfectly? Absolutely not,”
Kantor said. “I negotiated NAFTA. It’s time that we up-
dated it. No trade agreement is perfect. Now NAFTA is 22
years old. I’d like to say I’m prescient, but I’m not, and no
one around that table back then was prescient. We have
more jobs, more investment, more growth, in all three
countries as a result of NAFTA. But it’s not perfect. We
need to get back to the table, and say, OK, folks, what do
we need to improve? What hasn’t worked?
Kantor said that NAFTA’s environmental protections
need to be stronger as do the protections for labor. “We
didn’t understand what kinds of problems could arise,”
Kantor said. “Those are the areas where we need to get
back to. I think it’s important. Agriculture, particularly
with Mexico, certain issues have arisen. There are a
number of areas where we need to say, ‘look, we are
neighbors, friends, why can’t we get back to the table?’
We’re not going to tear the whole agreement apart by
doing it. We can only improve it. Twenty-two years is a
long time in today’s world. Look at what’s happened
since – there were no cell phones! There was no Inter-
net! It didn’t exist when we [negotiated] NAFTA. And
we don’t think we can improve it? Oh please – give me
a break! Get at it, folks!” �
China, NAFTA And
International Trade:
A Conversation
With Former
U.S. Secretary
Of Commerce
Mickey Kantor� By MICHAEL GOUGIS
Contributing Writer
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 31
April 2
� By SEAN BELK
Staff Writer
I t’s been a long time coming for NautilusInternational Holding Corp. that todayowns a string of port services sub-
sidiaries while remaining in the business ofstevedoring – loading and unloading cargofrom vessels – as a terminal operator at thePort of Long Beach for 92 years. The corporation, which is expanding and
relocating its headquarters from Wilming-ton to Long Beach this year, has maritimeroots that go back to 1852 as the CaliforniaStevedore and Ballast Co. in San Francisco,assisting with bulk shipments during theGold Rush era. Back in those days, there were no exports
coming from California. Rocks were cartedfrom a nearby hill and used as ballast to sta-bilize sailing ships that were empty on re-turning voyages, explained JamesCallahan, Nautilus International HoldingCorp. president and CEO, in an interviewwith the Business Journal. After the San Pedro Bay ports began de-
veloping nearly a century ago, the corpo-ration established itself at the Port of LongBeach in 1923 with the MetropolitanStevedoring Co., which was later rebrandedas Metro Ports, one of four subsidiariesowned by Nautilus International. While many businesses pursued the ex-
plosion of containerized trade on the WestCoast, Metro Ports went in a different di-rection, capturing a niche market – bulkcargo – while eventually taking on otherport services, such as risk management andcruise ship industry support.
Today, the corporation handles a varietyof bulk commodities and port services with30 operations in 19 states around the coun-try and an additional operation in Canada. “We’re a niche stevedore,” Callahan said.
“We like to say, ‘if it doesn’t move in a con-tainer, that’s what we handle.’ Whether it’sdry bulk products, liquid bulk products ortraditional break-bulk products, from steelto auto or whatever, anything that doesn’tgo into a container, we handle it.”Nautilus acquired companies and even-
tually rebranded them in 2008 as four mainMetro subsidiaries, providing: stevedoring,terminal operations, logistics, risk manage-ment and cruise ship passenger services.The subsidiaries are known as Metro Ports,Metro Cruise, Metro Shore and Metro RiskManagement. Most technological advancements have
focused on containerization, but the pri-mary goal for improving equipment andprocedures in the bulk cargo industry hasinvolved “safety and efficiency,” mainlybecause of the types of commodities,Callahan said.
“The advances have been in trying tofind the greatest efficiencies and safetyfor moving the cargo no matter what it is,”he said. “It might be a windmill bladethat’s half a football field in length or justa crate of liquid fertilizer. How do youmost efficiently and safely transfer thatcommodity?”Callahan added that different advanced
equipment is needed based on whether thebulk commodity is transferred to a termi-nal, ship, train or truck.
Cleaning The Air
For more than 50 years, Metro Portshas operated a dry bulk terminal on
Pier G in the Port of Long Beach, assist-ing exports of sulfur, petroleum coke,coal and other bulk commodities to for-eign countries.Last year, the Port renewed Metro’s lease
for another 20 years for continued bulkcargo operations. For more than a decade,the company has made significant invest-ments and changes toward becoming moreenvironmentally friendly.
This year, the Port of Long Beach is cel-ebrating its 10-year anniversary of itsGreen Port Policy, a comprehensive planpassed in 2005 that has distinguished theport as a leader in environmental steward-ship through aggressive initiatives aimed atprotecting the community from harmfulimpacts of port operations. Metro Ports has been involved in a num-
ber of those initiatives. Even before the pol-icy was put in place, the terminal operatormade changes to its dry bulk facility, in-cluding putting all bulk commodities undercovered storage and making sure conveyersare covered as well after new state regula-tions were put into effect in 2001. “There’s been a lot of advancement,”
Callahan said. “Everything is designed tominimize any impact on the environment.”Callahan, who has been with the corpo-
ration for 35 years, said that moving to azero-emissions status at the Port of LongBeach is a long-term vision of the port andthe entire maritime community.“I’ve seen a great evolution from the
time I started, and we’re really at a wonder-ful point now where we have this commit-ment and vision by the port to take it to thenext step,” he said. “It will be a process thatdoesn’t happen overnight.”Metro Ports has already made significant
efforts in “greening” its own equipment byswitching out old diesel engines for mod-ern ones while changing to alternative fuelsources, including liquid natural gas (LNG)and electric power, in order to “eliminateas many particulate matters as possible,”Callahan said. For instance, the corporation acquired and
32 Long Beach Business Journal April 28-May 11, 2015SAN PEDRO BAY PORTS
James Callahan serves as chairman, president and CEO of Nautilus International Holding Corp., the parent company for Metro Ports, Metro Cruise, Metro Risk Management and Metro Shore. The corporation,which has a more than 90-year relationship with the Port of Long Beach as a terminal operator for a dry-bulk facility on Pier G, is moving its headquarters from Wilmington to Douglas Park in Long Beach by theend of the year. (Photograph by the Business Journal’s Evan Patrick Kelly)
Nautilus International/Metro Ports Has Deep Maritime Roots In Bulk Cargo, Port Services
Pictured is the rendering of the new 40,000-square-foot headquarters for Nautilus International Hold-ing Corp. under construction at Douglas Park in Long Beach.
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 32
put into use one of the first ever ultra-lowemission locomotives at its dry-bulk facility. More recently, Pier G has served as a beta
test site for developing innovative technol-ogy that enables bulk cargo vessels to re-duce emissions from diesel engines at port.The new technology, which was funded
by the Port of Long Beach while Nautilusprovided “intellectual capital,” is also costeffective for bulk cargo shippers.Port sources have confirmed that convert-
ing ships to electric shore power, also knownas cold ironing, can cost anywhere from$500,000 to $800,000. And, for bulk cargohandlers, which call sporadically at the portand sometimes only once a year, paying forsuch upfront costs would force them to lookfor business elsewhere, Callahan said. However, the new technology, known as
the Advanced Maritime Emissions ControlSystem (AMECS), provides an alternativeto cold ironing by reducing emissions fromvessels at port without the hefty costs as-sociated with modifying vessels. Developed by Rancho Dominguez-based
Advanced Cleanup Technologies, Inc.(ACTI), the new technology, which wasfirst used on locomotives, involves operat-ing a 100-foot robotic arm to attach a de-vice to the smoke stack of a vessel,removing 90 to 99 percent of emissions, ac-cording to ACTI.
Committing To Long Beach
In March, Nautilus International brokeground on a new 40,000-square-footheadquarters on 2.57 acres at Douglas Parknorth of the Long Beach Airport. Callahan said the corporation is relocat-
ing from its current 30,000-square-footbuilding in Wilmington, where it has beenlocated for 26 years, in order to expand andto show a commitment to Long Beach. “The No. 1 impetus to move was to
allow room for growth,” he said. “Beyondthat, we wanted to position ourselves inLong Beach.”According to a statement from Nautilus
International, the new building is beingconstructed on the northeast corner ofWorsham Avenue and Cover Street. Thecorporation expects to complete construc-tion by December. The new location will house approxi-
mately 80 personnel, with the capacity toadd nearly 50 more employees. The build-ing is expected to be Leadership in En-ergy and Environmental Design (LEED)certified, with eight electric vehiclecharging stations and a carport structureutilizing solar panels. Callahan called Long Beach a “very pro-
gressive” and “business friendly city” withpotential for future growth. “We like what we see developing in Dou-
glas Park,” said the Long Beach native. “Welike the tenants that are there, and we wantedto be a part of that program. We are in veryclose relationships with the Port of LongBeach . . . so we wanted to demonstrate ourcommitment to the Port and City of LongBeach by relocating to that location.” Looking ahead, Nautilus International
plans to expand the products it handles aswell as its geographic area, as interna-tional trading partners develop further,Callahan said. “We hope to continue to expand our in-
ternational operations,” he said. “We’re justlooking to safely and efficiently handle asmany cargoes as we can.” �
April 28-May 11, 2015 33 2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 33
April 2
� By SEAN BELK
Staff Writer
K eeping the nation’s largest port com-plex safe while making sure cargomoves smoothly through the harbor
is no easy task. It takes a seamless collab-oration of local, state and federal agenciesto work with international trade partnersto protect the public and the flow of com-merce from potential threats. Though the ports of Long Beach and Los
Angeles may compete for business, whenit comes to security measures, they worktogether as one “mega” seaport, sharing in-telligence, data and technology. Millions ofdollars a year are spent on efforts to combatterrorism, intercept counterfeit goods andprepare for natural disasters.
After all, with more than 40 percent ofthe nation’s cargo moving through the twinports, what may seem like a small anomalymay turn out to have a devastating impacton port operations, threatening the UnitedStates economy and the nation’s safety. Two leading port security professionals
– Randy Parsons, director of security forthe Port of Long Beach (POLB), andMichael Hillman, assistant chief of portpolice for the Port of Los Angeles(POLA) – spoke to the Business Journalto discuss some of the top challenges forport security and the latest measurestaken to address them. A major challenge for securing such
avast port complex is making sure allagencies providing security, both publicand private, are effectively communicat-
ing with terminal operators and shippingcompanies, Parsons said. “We need to make a substantial effort
that we all know the same thing at thesame time and that we have accurate andtimely reporting of what’s going on in theport,” he said. “That way, it really helps usin our decision making as to how andwhere we use our resources.”In Long Beach, the port utilizes its own
harbor patrol, which has authority to accessall marine terminals, monitor ships on thewater and check trucks and trains on land.The harbor patrol is stationed at the JointCommand and Control Center (JCCC) atPier F along with the POLB’s own securitydivision. The POLB also partners with theLong Beach police and fire departments. The POLA uses its own port police divi-
sion along with a security unit. In addition,the port partners with the Los Angeles Po-lice Department, the L.A. County Sheriff’sDepartment and the L.A. Fire Department.For intelligence gathering and during
emergencies, both ports collaborate witheach other while partnering with the Cali-fornia Highway Patrol, the U.S. Depart-ment of Homeland Security, the U.S. CoastGuard, the U.S. Customs and Border Pro-tection, Marine Exchange and the FederalBureau of Investigation (FBI). In total, there are nearly 30 different al-
lied agencies required to “work together asone” to keep the ports safe, said Hillman,who oversees a security component at theLos Angeles port police division.“In my 47 years in law enforcement, I
have never seen such a collaborative and
34 Long Beach Business Journal April 28-May 11, 2015SAN PEDRO BAY PORTS
� By SEAN BELK
Staff Writer
Once a cargo container is loaded on aship in a foreign country and sent on itsway to the United States, the U.S. Cus-toms and Border Protection (CBP)springs into action. Teams begin scouringover required electronic data to decipherexactly where the shipment originatedand if its contents are “legit.” If there are any anomalies, such as a
wrong address or an unknown importer, theCBP may target the container to be checkedat one of its warehouses for counterfeitproducts after the cargo enters the harbor.And, if the container is listed as “high risk,”then it may be X-rayed directly on the ma-rine terminal to scan for weapons or bombs. “We do an analysis of everything com-
ing in and then we’ll select containers forexamination so that, by the time the vesselis here, we’ve already given instructionsto the terminal operators and to the ports,”Jaime Ruiz, a CBP spokesperson, told theBusiness Journal. “Those containers can-not exit the ports without being cleared byU.S. Customs.” The United States saw a slight drop in
seizures of counterfeit products last yearcompared to 2013, but the number of fakegoods coming into the country still re-
mains relatively high compared to nearlya decade ago, according to a recent reportfrom the CBP.The CBP and the Homeland Security In-
vestigations (HIS) of U.S. Immigration andCustoms Enforcement (ICE) reports that infiscal year 2014 there were 23,140 seizuresof counterfeit products, about 5 percent lessthan the 24,361 seizures reported the prioryear. However, the report also states thatlast year was the third busiest year forseizures since 2005.The counterfeit seizures in 2014 had an
estimated worth of $1.2 billion, represent-ing the value of the goods had they beensold at the manufacturer’s suggested retailprice, according to the CBP. Ruiz said the ports of Long Beach and
Los Angeles see the most counterfeit goodsin the United States, handling about 40 per-cent of all counterfeit seizures in the country.Therefore, it’s safe to say that about $500million worth of counterfeit products wasseized at the twin ports last year. He notedthat the CBP’s West Coast regional branchis located in Downtown Long Beach. “It’s pretty concerning in terms of
counterfeits,” Ruiz said. “Folks are stillputting themselves at risk by buying fake,untested products.”He noted that most counterfeit products
continue to come from China (63 percent)
and Hong Kong (25 percent). Canada,however, jumped to third place last year,with 1 percent of counterfeit goods comingfrom that country, indicating a new trend,Ruiz said. Though buying fake designer shoes may
seem harmless, money exchanged for coun-terfeit goods often goes to internationalcrime networks that support terrorism andchild labor rather than creating jobs and taxrevenue in the United States, Ruiz said. “To be clear, intellectual property theft
is not a victimless crime,” Sarah Saldana,director of ICE, said in a statement. “Thevictims are American businesses, and theemployees whose jobs are dependent onintellectual property-intensive industries.
Counterfeiting is a crime of global pro-portions. And, when property rights areviolated, American jobs are lost, businessprofits are stolen and, ultimately, con-sumers are cheated.”Ruiz said the CBP enforces hundreds of
laws and uses industry standards at theports to protect intellectual property rightsof companies and the public’s safety. Henoted that a national center for electronicsstandards is located in Long Beach. Wearing apparel/accessories continues to
be the top counterfeit commodity seized,according to the CBP. However, other prod-ucts, such as consumer electronics andpharmaceuticals/personal care, listed as thesecond and third most fake products seizedlast year respectively, pose more of a dan-ger to the public, Ruiz stressed. Though many fake products are sold on-
line, intellectual property theft doesn’t gounpunished, he said. The CBP reports thatthere were 683 arrests, 454 indictments and461 convictions regarding crimes involvingintellectual property right thefts. Ruiz added that customs “duties” on
imported goods is a major revenue gener-ator for the United States federal govern-ment. He said the CBP collects about $30billion a year from duties on imports withabout $10 billion generated at the SanPedro Bay ports. �
Port Security: Keeping The Ports Safe In An Intricate ‘Threatscape’
The Top 10 Counterfeit Commodities Seized In 20141. Wearing apparel/accessories2. Consumer electronics3. Pharmaceuticals/personal care4. Handbags/wallets5. Footwear6. Watches/jewelry7. Optical media8. Computers/accessories9. Labels/tags10. ToysSource: U.S. Customs & Border Protection
U.S. Customs: Stopping Counterfeits In Their Tracks40 Percent Of Counterfeit Seizures In Nation Come From Local Ports
Randy Parsons, director of se-curity services for the Port ofLong Beach, oversees morethan 80 security personnel,including harbor patrol offi-cers. The 20-year veteran ofthe Federal Bureau of Investi-gation also directs the U.S.Homeland Security program,including 24-hour patrols,anti-terrorism programs andsecurity coverage, for the3,000-acre port complex.(Photograph by the BusinessJournal’s Evan Patrick Kelly)
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 34
cooperative group as where I’m at now,” hesaid. “It’s phenomenal.”A key priority is keeping abreast of dif-
ferent threats, Hillman said, adding thatsome of the more common incidents theports have been looking out for includehuman trafficking, drug smuggling and ac-tive shooter situations. He said the “threatscape” at the ports
also includes natural disasters, such asearthquakes, hurricanes and storms thathave the potential to damage port infra-structure and disrupt the flow of contain-ers. The ports also deal with hazards,including fires, as well as criminal inci-dents that may take away resources fromother areas, Hillman said. In recent months, a big challenge has been
dealing with port congestion caused by alabor dispute last year, Parsons said. Thoughport officials have confirmed that traffic isback to normal, the ports have had to adjusttheir security procedures to monitor the in-creased ship, rail and truck activity in deal-ing with the backlog of cargo, he said. “We just have to be a little more vigilant
of all those areas of the water, rail and trucksand keep a closer eye on how the transporta-tion is moving,” Parsons said. “From a secu-rity perspective, we don’t particularly like itwhen things cluster together.”Several hundred closed-circuit television
(CCTV) cameras placed throughout the en-tire San Pedro Bay port complex enableboth ports to monitor concentrations ofvessels, trains and trucks, he said. “We can use our systems to train on the
areas that are the busiest,” Parsons said.“Our communications centers keep watchon the cameras and they can direct eitherpatrol boats on the water or landside pa-trol to any areas where we see problemsstarting to arise.”Hillman said both ports are also concerned
about the international “scheme of things”and if there are any “organized groups” thatwould want to disrupt commerce. International threats are particularly con-
cerning for the cruise ship industry, he said,adding that 432,000 passengers may becoming and going out of the Port of LosAngeles from cruise ships on a yearlybasis, becoming a target for terrorism.Since 9/11, law enforcement has been re-
quired to escort cruise ships in and out ofthe harbor, Hillman said. However, securitymeasures at cruise ship terminals have been“considerably enhanced” in the last twoyears, he said. “In order to be able to get in front of any
potential threat, there is a very high profile
presence that we maintain in and aroundthe cruise ship industry,” Hillman said. He said the ports are also enhancing ca-
pabilities to search for “radiological mate-rials” on container ships. Recently, bothports collaborated with various local lawenforcement agencies, including the FBI,to launch a new radiological scanning sys-tem, Hillman said. The new technology, which has already
been in place at ports on the East Coast, in-volves being able to scan ships out on thewater for nuclear material, using highly so-phisticated devices, he said. In the future,the ports hope to utilize advanced “aviationresources” to be able to scan ships beforethey even enter the harbor, Hillman said. Another major concern for security is the
potential for “cyber attacks,” he said, addingthat both ports have dedicated major re-sources in recent years to protect online dataand develop a “cyberhood watch program”in collaboration with the FBI. Through the program, the ports have
been able to recruit various terminal oper-ators and tenants to share informationabout any online intrusions. These cyber at-tacks, which may occur thousands of timesper day, are then communicated to the portsto be mitigated by their information tech-nology (IT) systems and shared with theFBI for further investigation, Hillman said. “We are attacked thousands of times a day
. . . from a variety of different countries andsources from all over the world, but we havethe infrastructure and the firewall to be ableto mitigate that,” he said. “Both the ports ofLong Beach and Los Angeles are workingvery, very collaboratively with the FBI.”
Last year, the Port of Long Beach beganimplementing its Virtual Port program,which enables the port to integrate about50 different public data sets, such asweather, tides and shipping schedules, intoa “one-stop” online source, generating acomplete operational floor plan of activityin and around the port complex. Parsons said the Virtual Port program,
which was developed with the help of nu-merous local, state and federal law enforce-ment and public safety agencies, continuesto evolve as more data sources are added. The program assists with “incident man-
agement, business continuity and resiliency.”A main goal for port security, Parsons added,is to “identify patterns and trends of activityor behaviors that seem out of the ordinary.”
Being at the forefront of technologicaladvancements enables the ports to allocatemost funding toward operating and main-taining systems that are already in place, hesaid. However, Parsons added that, “tech-nical assets can never replace personnel.”The ports dedicate funding for security
equipment and personnel through their op-erating budgets while also receiving federalgrants through the Port Security Grant Pro-gram and the Urban Areas Security Initia-tive, both administered by FederalEmergency Management Agency (FEMA).“It’s a balance of what kind of people and
what kind of equipment we need, to stayahead of the game in the port environ-ment,” Parsons said. “We take that balanc-ing act very seriously.” �
April 28-May 11, 2015 Long Beach Business Journal 35SAN PEDRO BAY PORTS 2015
In partnership with the State of California Emergency Management Agency and the U.S. Department of Homeland Security, the Port of Los Angeles has de-veloped the country’s first Maritime Law Enforcement Training Center (MLETC), located at 300 E. Water St. in Wilmington, to train state and local law en-forcement personnel. MLETC training staff is comprised of members of the Los Angles Port Police, Los Angeles County Sheriff’s Department, Los AngelesPolice Department and Long Beach Police Department. (Photograph by the Business Journal’s Evan Patrick Kelly)
tor of se- e Port of es more rsonnel,
trol offi- teran of
f Investi- he U.S.
rogram, patrols,
ms and for the
omplex. Business
k Kelly)
Michael Hillman, a 42-year veteran of the L.A.Police Department andformer assistant sherifffor the Orange CountySheriff-Coroner Depart-ment, was hired in2013 as assistant chiefof the L.A. Port Police.
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:57 PM Page 35
Calendar Information Provided by the
Los Angeles Area Chamber Of Commerce
www.lachamber.com
May 1Southern California Welcome Luncheon
with Prime Minister Shinzo Abe
Noon – Millennium Biltmore Hotel
506 S. Grand Ave., Los Angeles
Contact: jas-socal.org or 310.965.9050
Japan-U.S. Economic Forum
1-3 p.m. – Millennium Baltimore Hotel
506 S Grand Ave., Los Angeles
Contact: [email protected] or 213.624.8855
www.jetro.go.jp
May 2U.S.–Myanmar Exchange & Gala Dinner
5:30-10 p.m. – Hilton Los Angeles
555 Universal Hollywood Dr., Universal City
Contact: [email protected]
usmmexchange.com
May 589th Annual World Trade Week
Kickoff Breakfast
7:15-10:30 a.m. – Beverly Hilton Hotel
9876 Whilshire Blvd., Beverly Hills
Contact: [email protected]
www.worldtradeweek.com
2015 Los Angeles Trade Numbers Exclusive
Insights & Trends
10:30-11:30 a.m. – Beverly Hilton Hotel
Executive Meeting Center
9876 Whilshire Blvd., Beverly Hills
Contact: [email protected]
www.ustradenumbers.com
May 6-7USDOC Export Regulations Seminar
Radisson Hotel Newport Beach
4545 MacArthur Blvd., Newport Beach
Contact: [email protected]
www.export.gov/irvine
May 7Global Trends & Economic Forecast
10:30 a.m.-1:30 p.m.
DoubleTree by Hilton Torrance
2133 Hawthorne Blvd., Torrance
Phone: (310)540-5858
torrancechamber.com
Recurrent Product Code Review
Processing Update and Requirements
Affirmation of Compliance Overview
8 a.m.-4 p.m.
El Camino College Business Training Ctr.
13430 Hawthorne Blvd., Hawthorne
Contact: [email protected]
www.lacbffa.org
May 13Diplomacy Begins Here Summit
8:30 a.m.-6 p.m.
Loyola Marymount University
1 Loyola Marymount University Dr.
Los Angeles
Contact: [email protected] or 213.388.1428
www.ivcla.org
Shenzhen – Los Angeles Innovative and
Entrepreneurial Environment Conference
5:30 p.m., Hotel Irvine, Salon B
17900 Jamboree Rd., Irvine
Contact: [email protected]
213.628.9888 • www.shenzhenoffice.org
May 14USA – Global Synergy
Consul Generals Dinner
5:30-9 p.m.
City Club Los Angeles
555 S. Flower, 51st Floor, Los Angeles
Phone: 213.620.9662
Orange County World Trade Week
Breakfast & Forum
8 a.m.-Noon
Hilton Irvine. 18800 MacArthur Blvd, Irvine
Contact: [email protected]
www.irvinechamber.com
Air Cargo Day:
4th Annual Trade Show & Conference
11 a.m.-2 p.m.
Proud Bird Restaurant
11022 Aviation Blvd., Los Angeles
Contact: [email protected] or 818.421.4843
www.laaca.us
May 15The 89th Annual World Trade Week
& International Trade
Delegates Luncheon and Trade Fair
8:30 a.m.-1:30 p.m., Hilton Long Beach
701 W. Ocean Blvd., Long Beach
foreigntradeassociation.com
May 16Waves n’ Wheels/
Free Harbor Boat Tours
10 a.m.-3 p.m.
Location 1:
Banning’s Landing
100 E. Water St., Wilmington
Location 2:
Downtown Harbor
600 Sampson Way, Berth 84, San Pedro
www.portoflosangeles.org
May 16-17International Conference
on Cyber Security
Pine Room Commons (CSUSB)
5500 University Pkwy, San Bernardino
Contact: [email protected]
iccs2015.iaasse.org
May 19What you Need to Know to Comply
with FDA Requirements
8:30-11 a.m., Holiday Inn Torrance
19800 S. Vermont Ave., Torrance
Contact: [email protected]
www.fda.gov
May 19-2321st Annual Inland Empire
World Trade Conference
Marriott Hotel
3400 Market St. Riverside
Contact: www.ciedec.com
May 20Introducing the ASEAN
Economic Community
8 a.m.-3 p.m., Crowne Plaza
Los Angeles Harbor Hotel
601 S. Palos Verdes St., San Pedro
Contact: [email protected]
www.asean.org
May 21What You Must Know to Protect
Your Intellectual Property in China
8 a.m.-4:15 p.m.
UC Irvine School of Law, EDU 1111
401 East Peltason Dr. Irvine
Contact: [email protected]
or 949.660.7105
cs.decsocal.org/ipchina.html
May 27Global Market Opportunities Workshop
8-11:30 a.m., The Grammy Museum
800 W. Olympic Blvd. #245, Los Angeles
Contact: [email protected]
May 2818th Annual
International Business Luncheon
10:30 a.m.-1:30 p.m.
Sacramento Convention Center
1400 J St., Sacramento
Contact: www.norcalwtc.org
Thank You AdvertisersThe following companies and public
sector entities made the 2015 Focus
On International Trade possible:
• California State University, Long Beach
• Crowley
• Eastern Car Liners (Americas)
• FuturePorts
• Long Beach Container Terminal
• Moffatt & Nichol
• Pacific Crane Maintenance Company
• Pasha Stevedoring & Terminals
• Port of Long Beach
• Port of Los Angeles
• Ports America
• TruckingWebCam.com
– Long Beach Business Journal
World Trade Week Events Calendar May 2015
1_LBBJ_APRIL28_2015_PortAnniversary 4/25/15 3:58 PM Page 36
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