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PORT OF STOCKTONPORT OF STOCKTONANNUAL REPORT 2016
PORT OF STOCKTON
PORT OF STOCKTONP.O. BOX 2089, STOCKTON, CA 95201-2089
2201 WEST WASHINGTON STREET, STOCKTON, CA 95203
COPY CONTRIBUTOR: REED FUJII
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Saga Future importing steel products from Korea
THE COMMISSIONERS
BACK ROWCommissioner Gary ChristophersonCommissioner Sylvester AguilarCommissioner Stephen Gri�enCommissioner Michael Du�y
FRONT ROWChairman R. Jay AllenCommissioner Victor MowVice Chair Elizabeth BlanchardPort Director Richard Aschieris
Today, the Port of Stockton is where you can find people working every day handling goods carried by ships from all over the world. The local workforce operates ships, trains, trucks, forklifts, cranes and a variety of dock equipment. Other personnel are busy performing security, maintenance, accounting and purchasing duties. Employees of Port tenants accept shipments of goods while others prepare the goods to be delivered throughout the United States.
Meanwhile, planners, engineers and surveyors are focused on the future; developing plans to build new bridges, widen existing roads, rehabilitate old railroad tracks and dredge the Stockton Ship Channel. These plans are turned into reality by construction workers who are welding pipes, laying rebar and pouring cement; creating the infrastructure that makes the Port a vibrant part of the economic foundation of the San Joaquin Valley. In addition, the Port’s marketing and real estate employees are coordinating with existing businesses and reaching out to other potential tenants and shippers to bring even more jobs to the Port.
In 2016 the Port enjoyed another strong year with a total tonnage of nearly four million metric tons valued
at $1.5 billion. There were a combined 464 ship arrivals and departures and the Port’s seven million square feet of warehousing was 93 percent leased to a wide variety of tenants. These businesses handle everything from powdered milk to steel, sinks, fertilizer, to a variety of agricultural goods. The combination of maritime and real estate activities generated more than $56 million in revenue, the second highest year in our history.
The Port of Stockton also remains committed to identifying environmental projects that protect the region. Projects like the restoration of sand dunes; recreating habitat for endangered butterflies and plants; and creating nesting places for barn owls who in turn, provide a non-toxic way to control the mice and rat population which could undermine levees in our region and ruin agricultural goods.
We invite you to come and see the Port of Stockton, an exciting and vibrant inland seaport, by participating in our boat tours held each summer by visiting our website at www.portofstockton.com.
We hope you enjoy our 2016 Annual Report!
COMMISSIONER & DIRECTOR’S MESSAGE
2016 ANNUAL REPORT
A PORT’S VIEW 03
RICHARD ASCHIERISPort Director
MICHAEL DUFFYCommissioner
SYLVESTER AGUILARCommissioner
GARY CHRISTOPHERSONCommissioner
R. JAY ALLENChairman
VICTOR MOWCommissioner
ELIZABETH BLANCHARDVice Chair
STEPHEN GRIFFENCommissioner
Stevedore gear awaiting use shipside
DEDICATED TO SUPERIOR SERVICE
2016 ANNUAL REPORT
A PORT’S VIEW 05
ACCOUNTING/FINANCEDianna BakerDirector of Finance
Michelle BowlingController
Jeannine AnchartechaharEsmeralda CorreaLesli DiehlKristy EmersonMaria PerezRicardo ToledoMichelle Zepeda
ENVIRONMENTAL & PUBLIC AFFAIRSJe� WingfieldDirector of Environmentaland Public A�airs
Jason CashmanManager of Environmentaland Regulatory A�airsRita KoehnenVictoria Lucero
EXECUTIVEYvonne IshimotoAssistant to the Director/Secretary to the Board
FACILITIES, DEVELOPMENT & PLANNINGJuan VillanuevaDevelopment & Planning Manager
Steve CookerlySuperintendent
Ricardo NavarroSuperintendent
Scott BallardBob BelmontGreg BurchamJanice DiasMike Elrod
David GentryEduardo GomezDean HarrRandall HawleyKazuo HigashiGary JohnstonDale MatsonEverardo MendozaBob MyersEric OsterlieAlex PerezEmployee of the Year
Cara PickeringCharles PiggeePete RamirezSteve Trindade
HR/ADMINISTRATIVEKatie MillerHuman Resources Manager
Judy BaumannFernando GaliciaRenee RamirezAl ReftMelanie Rodriguez
INFORMATION TECHNOLOGYTim DeerinckTricia RosenowWally Wallick
OPERATIONSJason KatindoyDirector of Maritime Operations
Chris MountjoyOperations Manager
Je� VineSuperintendent/Safety O�cer
David CraditAssistant Superintendent
Bodie GonsalesAssistant Superintendent
Mike MillerAssistant Superintendent
Jared WilkeyAssistant Superintendent
Jose ArmentaRebecca BarronDaniel BautistaChristopher BustosMarilyn CarterJoseph CastroLinda ChristisonTravis ClingerJuan ConstantinoRobert DeandaLacy EdwardsArturo GamboaCecilio GomezHugh LimAlfredo MayaJill McAuli�eRaul MontanezSam MontanezKyle MoutrayRigoberto RuizZachary TylerJoseph Wallick
PORT POLICEGeorge LernerDirector of Homeland Security
Steve NicholsLieutenant
Mike Archibeque Noel AvilesLillian CraigSuzanne CraigFritz EnclunaMisty Escobar
Kraig HigashiBill HuttonRick LeChugaAlbert LiwanagJim MayCurtiss McConnellJim MitchellTyler MouaMonique SanchezRobert SanguinettiAllen Standley Darrel WadeRoger Williams
PROPERTY MANAGEMENTSteve EscobarDeputy Port Director Real Estate & Port Development
Debbie CalliProperties Manager
Elise Hermesky
MARKETINGPete GrossgartMarketing Manager
TELECOMMUNICATIONSRuss Nicholas
GRANTS ADMINISTRATIONSteve Larson
GOVERNMENT AFFAIRSMelissa Whitener
RICHARD ASCHIERISPort Director
OPERATIONAL EFFICIENCY 07
A PORT’S VIEW 01
ENVIRONMENTALLY FOCUSED 20
COMMUNITY TIES 22
PORT NEWS29
The recovery of the U.S. economy paired with American consumers’ growing hunger for organic foods helped define this year’s top commodities. Cargo volume remained strong at 3.9 million metric tons, slightly more than 2015 and second only to the 4.1 million metric tons tallied in 2014. Needs for commodities like cement and steel products are on the rise for today’s revitalized construction industry. Agricultural commodities such as bulk corn used in organic animal feeds increased 180 percent, while imports of gypsum used as a soil conditioner nearly doubled from 2015.
Attracting shippers that handle di�erent commodities continues to be a primary goal for the Port. “There’s a conscious e�ort to diversify our cargo mix and enable us to weather economic storms,” said Marketing Manager Pete Grossgart. This strategy, combined with attracting companies that need space for facilities as well as access to ocean transport and the global market, contributes to the Port’s annual cargo volume – roughly four million metric tons each of the last three years. “Our maritime team works very closely with Port Property Management to increase these targeted long-term property leases that currently make up 30 percent of the Port’s maritime tonnage,” said Jason Katindoy, Director of Maritime Operations.
The latest example of a premiere Port tenant is Union Pacific Railroad (UP). In early 2016 UP opened their new rail welding facility at the Port. This facility receives 480-foot steel rails from Japan via a custom-built ship to dockside at the Port’s West Complex. “Unique opportunities are available at the Port with our facility capabilities, rail connections, flexibility and innovative operations,” added Grossgart.
INNOVATIVE OPERATIONS
OPERATIONAL EFFICIENCY 07
SHIP MOVEMENTS & TONNAGES
TONNAGE BREAKDOWN
COMMODITIES ON THE RISE
SHIP MOVEMENTS ( TOTAL 232 SHIP CALLS )
Q1: 61 Q2: 66 Q3: 51 Q4: 54
SHIP TONNAGES ( 3,879,754 METRIC TONS )
Q1: 866,100 Q2: 1,135,481 Q3: 877,749 Q4: 1,000,424
ANHYDROUS AMMONIA
ANIMAL FEED
BAGGED CEMENT
BAGGED FERTILIZER
BAGGED MAGNESIUM
BAGGED RICE
BULK BEET PELLETS
BULK CEMENT
BULK COAL
BULK CORN (ORGANIC)
BULK FERTILIZER
BULK PADDY RICE
BULK RICE
BULK SOY BEANS
BULK SULFUR
BULK TIRE CHIPS
COTTONSEED
FOOD GRADE OIL
GYPSUM
LIQUID FERTILIZER
MOLASSES
PROJECT CARGO
STEEL PRODUCTS
34,917
39,928
223,429
9,045
43,133
160,312
81,424
658,120
221,856
1,768
326,417
149,408
5,000
4,001
10,475
7,472
159,071
108,310
530,486
793,003
135,142
147,195
29,842
34%2014 63%
2015
1%2016
RICE
93%2014
57%2015 11%
2016
STEEL
50%2014
227%2015
42%2016
CEMENT
PERCENT INCREASE PER YEAR
2016 ANNUAL REPORT
The Port of Stockton, where oceangoing ships and barges load/unload a variety of commodities such as liquid fertilizer, cement, sulfur, steel and molasses, has a dynamic working waterfront. Less visible, but still accounting for roughly half of the Port’s operating revenue is property management. Management of Port property includes leasing to a large variety of commercial tenants and provides electric utility services to the West Complex. Invaluable to Port operations, the rental properties and utility provide a steady, reliable income stream, counterbalancing the more volatile maritime and logistics activities.
Attracting tenants to the Port is accomplished by highlighting its unique mix of location, transportation assets, available facilities and support for commercial and industrial development. It sits at the heart of California’s Central Valley hub of interstate, regional and local transportation systems. In addition to seagoing access to the global marketplace, the Port o�ers connections to both Union Pacific Railroad and BNSF Railway. Unlike many other California ports, here
at the Port of Stockton, there is room to continue expanding for current and future tenants. These convenient growth opportunities are a result of an acquisition back in 2000 of more than 1,400 acres of the former Rough and Ready Island naval base. Examples of current tenants who have expanded their operations at the Port include Union Pacific’s rail welding facility, Pacific Ethanol Inc. as well as Alamillo Rebar Inc.’s fabrication and distribution center.
Alamillo Rebar provides and installs concrete reinforcing steel for construction projects throughout the Western United States. Alamillo’s Stockton plant receives reinforcing steel from around the world by ship and by rail from domestic suppliers, and then ships out via truck fabricated arrays for walls, columns and beams. The Benicia-based company conducted an extensive search before deciding to build in Stockton, where it now employs between 40 to 50 workers.
“We looked all over because it is hard to find facilities with rail service and access to water transportation,”
reported Joe Alamillo, Vice President of Alamillo Rebar Inc. “But the key was finding a large enough space to build the facility we needed.”
PORT REAL ESTATE MEANS BIG BUSINESS
2016REAL
ESTATEProperty Management revenues
up four percent this year
Aerial of West and East Complexes
Erin Jenkins, from Best Logistics, had a similar experience in locating at the Port. “The decision to locate at the Port was driven by ease of logistics, access to a skilled labor force and proximity to either our customers or suppliers,” said Jenkins.
Key elements that continue to make the Port attractive to business partners are the hundreds of acres available for development; capacity as an electric utility; a streamlined environmental review process; as well as a sta� fully versed in commercial and industrial development. Port o�cials have projected four percent growth in property management revenues in their current fiscal year as business partners expand operations at the West Complex which holds five million square feet of warehouse space.
Steve Escobar, Deputy Port Director for Real Estate and Development, sees strength among the Port’s building materials businesses that include: steel and cement, fertilizer and agricultural product processors and distributors, as well as a growing contingent of green, sustainable businesses. The latter include biofuel producers and recyclers handling tires, paper, green wastes, construction materials and railroad ties. “Looking ahead,” says Escobar, “the Port will continue to thrive with a number of new development projects on the horizon!”
2016PORTSTATS
One tenant alone added 50 new jobsat the Port with their new facility
OPERATIONAL EFFICIENCY 09
Property Management$24,466,009
Terminal$25,459,343
Grant Revenue$4,105,967
Interest$132,673
Warehouse$2,204,263
Other$268,929
Revenue CentersTotal: $56,637,184
Steel pipe awaiting delivery to a worksite
CARGO TYPES &PROPERTY LEASING
REVENUE CENTERS
FINANCIALS
OPERATIONAL EFFICIENCY 11
CARGO TYPES & PROPERTY LEASING
General Cargo
Dry Bulk Cargo
Liquid Bulk Cargo
Property Management
Other
TOTAL
FY2016
11,053,420
11,037,896
5,572,290
24,466,009
4,507,569
56,637,184
FY2015
11,694,092
11,554,935
5,013,107
24,644,949
9,120,064
62,027,147
FY2014
9,366,030
13,288,974
4,345,233
22,597,226
4,391,058
53,988,521
FY2013
5,664,740
8,980,419
3,916,601
20,125,942
5,826,254
44,513,956
REVENUE CENTERS
Terminal
Warehouse
Property Management
Other
Interest
Grant Revenue
TOTAL
BY THE NUMBERS
FY2016
25,459,343
2,204,263
24,466,009
268,929
132,673
4,105,967
56,637,184
FY2015
26,026,517
2,235,617
24,644,949
94,068
48,384
8,977,613
62,027,148
FY2014
25,184,767
1,815,471
22,597,226
411,459
29,098
3,950,502
53,988,523
FY2013
17,430,126
1,632,309
20,125,942
974,705
50,854
4,299,943
44,513,879
FY2013
$5M
$10M
$15M
$20M
$25M
FY2016
General Cargo
Dry Bulk Cargo
Liquid Bulk Cargo
Property Management
Terminal
Warehouse
Property Management
Interest
Grant Revenue
FY2013
$5M
$10M
$15M
$20M
$25M
FY2016
2016 ANNUAL REPORT
Mount Owen importing Steel Products from Korea
2016 ANNUAL REPORT
2016 TRADE PARTNERS
OPERATIONAL EFFICIENCY 13
The Port continues to maintain strong trade relationships with more than 55 countries around the world, 28 of which were active in 2016. Steel, cement, gypsum, non-gmo corn, fertilizer and more, all made up our growing list of commodities that resulted in another successful year. Commodities topping the export chart were bulk sulfur and coal with liquid fertilizer and bulk cement leading the year’s imports. With 232 ship calls, goods movement remained at an all-time high for the third consecutive year! Our leading trade partners for 2016 were Japan and China. Japan benefited more than any other country,
receiving almost half of the Port’s exports for bagged rice, bulk beet pellets, coal and tire chips. Out of 28 countries, China dominated imports for animal feed, bulk cement, bulk fertilizer, liquid fertilizer and steel, equaling almost 700,000 metric tons delivered to the Port. In total, the Port exported over 1.3 million metric tons of American products and imported more than 2.5 million metric tons for an estimated cargo value of $1.5 billion. 2016 marked the Port’s second busiest year on record for cargo tonnage and spurred opportunity for additional waterfront jobs due to the mix of labor intensive cargo such as steel products.
NORTHAMERICA
HawaiiMexico
GuatemalaNicaragua
OCEANIAAustralia
New Caledonia
EUROPEEstonia
BelgiumGermany
ItalyNetherlands
NorwayRussiaTurkey ASIA
ChinaIndonesia
JapanKorea
KuwaitMalaysia
TaiwanUAE
Vietnam
SOUTHAMERICA
ArgentinaBrazilChilePeru
Trinidad
The gangway welcomes you aboard
OUR BUSINESS PARTNERS
2016 ANNUAL REPORT
OPERATIONAL EFFICIENCY 15
ACX Pacific Northwest Inc.ADA Inc.Advance Bus & Truck Driving SchoolAFW, Inc.Ah-Tye, DennyAlamillo Rebar, Inc.Alfalfa Supply Inc.Allen Engineering Contractor, Inc.American Containers, Inc.American Legion, Karl Ross Post #16American River Ag, Inc.Anderson, Ricky and JenniferBazaz, Gurmeet S.Best LogisticsBestcare Express Inc.Buckeye Terminals LLCBulk Warehouse Services CompanyC Trans, Inc.CALAMCOCalaveras Cement CompanyCalifornia Agri Inspection Co., Ltd.CalPortland CompanyCapital Feed, Inc.Carry TransitCatch All BaseballCellar, RaymondCencal Recycling, LLCCentral California Railcar RepairCentral California Traction CompanyCentral Valley Ag Grinding, Inc.Ceres Marine Terminals, Inc.Chemstation of Northern CaliforniaChild Abuse Prevention CouncilCity of StocktonClean PlanetClearwire, LLCComgen Construction, Inc.Community FuelsContanda Terminals LLCCounty of San JoaquinCounty Plumbing and RestorationCustom Spraying, Inc.CVCYD.B. Western Inc.Delroy's DeliDelta Yacht ClubDepartment of Water ResourcesDowling, Bob
DR Pipeline, Inc.DTE Stockton, LLCEducation Across Africa, Inc.Emergency Food BankEnterprise CommunicationsFerguson Enterprises, Inc.Gilton Resource Recovery, Inc.Giovannoni FarmsGlobal Logistics ConsultingGolden Bear Insurance CompanyGolden State Bridge, Inc.GPT Properties TrustGreen Man MaterialsGrogan, EdH.J. Baker & Bros., Inc.Hammer Head Protection, Inc.Hendrix Forklift ServiceHickinbotham, West and AmyHolland LPHolt Repair & Manufacturing Inc.Holtz, Peter, CPAHydrogen Technologies, Inc.Industrial Railways Co.Integrated Biometric Technology, LLCInternational Raw Materials LTD.Intsel Steel West-California, LLCJunior Aid of StocktonKeep On TruckingKloeckner Metals, US.Kustom Materials Laminators, Corp.LDA Partners LLPLos 3 HermanosLovotti AirLowe's HIW, IncM & L CommoditiesMac SpecialtiesMarine Inspection, LLCMartin Operating PartnershipMelissa & Doug, LLCMerfish Pipe & Supply, LLCMetropolitan Stevedore Co.Motta, JosephMT Railcars, Inc.N. C. CateringNautilus Data TechnologiesNext Energy, LLCNorth American CompositesNorthern CA School of Construction
Old World Industries, LLCOnions Etc., Inc.Pacific Ethanol, Inc.Pelton Shepherd IndustriesPereira StudiosPinnacle Ag ServicesPitbull Truck Lines, Inc.PUENTESQuality O�ce LiquidationsR.W.L Investments, Inc.Ramsey ExpressRevel, CynthiaRich Turner PhotographicsRobinson, Scott and KristinaRoss Island Sand & GravelRoyal White Cement, Inc.RSL Operating, Inc.S.T. Services/NUSTAR EnergySan Joaquin Co., Info Systems Div.San Joaquin County Sheri�'s Dept.SFPP, L.P.Sheedy DrayageShipyard Sports Grill and BarSSA Marine, Inc.St. Mary's High SchoolStockton Civic TheatreStockton Police DepartmentStockton Police O�cer's AssociationStockton Professional FirefightersStockton Volleyball ClubTarga Terminals, LLCTBM Sand & Storage Logistics, LLCTesoro Logistics Operations LLCT-Mobile West, LLCTrans-Hold, Inc.Transload SolutionsTransloading LogisticsTransmarine Navigation Corp.Transmeridian Warehouses Inc.Union Pacific RailroadUniversity of the PacificVicNRG, LLCVictory Blue, LLCWeber Point Yacht ClubWest Wind USAWestway Trading CorporationWilmar Oil & Fats, LLCYara North America
Ships crew observe longshore labor handling bundled pipe destined for a nearby construction project
The Port generates thousands of jobs from truck drivers and warehouse workers who move goods, to chemists and welders working onsite at renewable fuel plants or the steel-rail facility. However, the heart of employment at the Port along the waterfront is on the rise.
Steve Gri�en, Secretary/Treasurer of the International Longshore and Warehouse Union (ILWU) Local 54, also a Port Commissioner, directly knows the opportunities occurring at the Port. As a dispatcher for the Union, he has experienced the increase in activity first hand. “The last two years have been the busiest I’ve ever seen,” stated Gri�en.
One particular commodity keeping the Port busy is steel. Increased imports of steel – in the form of beams for construction, pipe, rolls of sheet steel, angle iron, wire rod and reinforcing bar – are among the most
labor-demanding to handle from ship to dock to transport. “It takes a lot of people to work the steel,” reported Gri�en.
Along with steel, other key commodities for the Port are on the rise as well including fertilizer, rice and cement. As cargo movement expands, so does demand for hands on the waterfront. Over the past three years, the ILWU Local has expanded its core membership by nearly 40 percent and more than doubled the number of casual, part-time dock workers. With the steady flow of cargo, the ILWU Local continues to assess the need for increased members.
Among those capitalizing on a job along the waterfront at the Port is Jeremy Terhune, a former
Peace Corps volunteer and founder and Executive Director of Puentes, a nonprofit
organization that operates the Boggs Tract Community Farm, located on Port property. Port Director Richard Aschieris loves to see the increase in cargo, but even more so the benefit it provides to the greater community. “Creating job opportunities for members of our community is a core mission of the Port and as a bi-product of increased goods movement, jobs bring a lasting value to our community,” stated Director Aschieris.
WATERFRONT JOBS ON THE RISE
17
2016CREATING
JOBSLocal Union expands by 40% and doubled
part-time dock workers to support diverse cargo
SSA lift going to work on West Complex
2016 ANNUAL REPORT
OPERATIONAL EFFICIENCY
Port Interns: Alma Bautista and Devin Swycinsky
The Port’s Internship Program has been around since 2005 and Katie Miller, Human Resources Manager takes great pride in designing and implementing a program that provides real-life experience. “An internship is an opportunity to not only use and develop industry-related knowledge and skills, but also enhance skills that are transferable to any professional work setting,” stated Miller. “When reviewing applicants, we first evaluate what projects or activities are happening at the Port to ensure it is a good fit for both the Port and the intern,” explained Miller.
In 2016, the Port had seven interns who worked within several departments including Accounting, Human Resources, Marketing, Operations, Property Management, and Environmental and Public A�airs. Participants included students from the University of California, Los Angeles and UC Davis; California State University Maritime Academy; California State East Bay; and University of the Pacific. An example of a strategic intern hired for the program was Devin Swycinsky, a University of the Pacific senior accounting
student. When Devin came onboard, he was immediately absorbed into an internal Port utilityaudit. The month-long audit had Devin combing through records, checking for accuracy and developing a review report that was formally presented. Michelle Bowling, Port Controller and Audit Manager stated,“It was really impressive how Devin jumped in, worked side-by-side with our team and prepared a report to present to management.” From his perspective, it was a unique opportunity that will make him a more attractive job candidate after college. “Working at the Port is something that not many people can say they have done,” said Mr. Swycinsky. “It gave me much better insight into my chosen career path.”
Another Port intern Alma Bautista, also a student at the University of the Pacific studying human resources
and marketing, got a real-life glimpse of a key activity and role for a human resources
professional – hiring sta�. As an intern hired into the Port’s Human Resources (HR) Department, Alma’s first duties were to assist with recruitment, screening and hiring the rest of the summer interns. Along with recruiting interns, Ms. Bautista also researched and provided input on how to revise employee evaluation forms as well as coordinated weekly internship events. When asked how she felt about her internship, Alma quickly responded, “This experience for me confirmed that HR is the right major and where I want to take my career!”
INVESTING IN THE FUTURE
2016INTERN
PROGRAMPort internships bring real-life experience to
guide candidates towards their future success
Interns on Port Boat Tour
2016 ANNUAL REPORT
OPERATIONAL EFFICIENCY 1 9
Ship inbound approaching Tule Island
The Aeration facility operated by the Port is like a breath of fresh air, at least for fish and other aquatic life in the Stockton Deep Water Ship Channel. Built as a demonstration project to maintain healthy oxygen levels in the Channel and San Joaquin River, the project has developed into a proven method; one that has received continued support from agencies and organizations interested in protecting the aquatic ecosystem of the waterways.
This year, Port o�cials also took the first steps toward a major habitat restoration project that could put materials from annual Channel dredging to good use. Little Mandeville Island is a 348-acre feature in the San Joaquin Delta that is best described as a “former” island with breached levees and submerged farmland. Je� Wingfield, Director of Environmental and Public A�airs said that by using dredged material from ongoing ship channel maintenance, the Port could rebuild Little Mandeville Island’s levee system, creating wetlands and upland habitat as well. “At this point we are evaluating all potential options and engaging other agencies to partner,” said Wingfield. Port environmental programs also look to freshen the air we breathe. Under the Clean Trucks Program, companies
leasing buildings or grounds agree to use trucks that meet or exceed current EPA air pollution standards for their Port of Stockton operations. Environmental Manager Jason Cashman said the Port-driven initiative has been a tremendous success. “Since 2007, we’ve secured about 450 clean trucks among our tenants. That helps clean up the air in this area and the Valley,” explained Cashman.” In addition, the Port’s entire fleet of cargo-handling equipment, such as forklifts and front-end loaders, have been retrofitted with diesel emission control devices; reducing emissions of particulate matter and nitrogen oxides.
Energy e�ciency is yet another key initiative for the Port that focuses on providing tenants with economic electric power and services. The Port sponsored Energy E�ciency Program provides monetary incentives to tenants who install state approved light fixtures and e�cient electric motors. In 2015, the Port provided a $17,173 incentive to one of its largest tenants for their lighting upgrade e�orts, resulting in a savings of over 300,000 kilowatts per year. Also as part of this program, the Port is currently installing LED lighting along Port owned streets.
PROTECTING THE SAN JOAQUIN VALLEY
2016 ANNUAL REPORT
ENVIRONMENTALLY FOCUSED 21
AERATIONReduced days
of low dissolvedoxygen from180 to less than two
HABITAT420 acres of
land purchasedfor habitat
related projects
EQUIPMENTAll cargohandling
equipment is retrofitted with diesel emission
control
PRESERVEProud sponsor of Easy Being
Green and Coastal
Cleanup Day
TRUCKS Clean Truck Agreement bringing in 450 clean
trucks
Star Kirkenes arriving to a perfect Stockton day
DONATING
Meeting needs from a sculling
hull for the disabled to
winter jackets for kids
LEARNING
Supporting science
programs in area
elementary schools
YOUTHVolunteering as
coaches or with children in
need
EVENTS
Engaging local community by participating
and sponsoring
events
TOURSHosting more
than 1,500 community
members on Port guided boat tours
COMMUNITY PRIDETHE PORT TAKES GREAT PRIDE IN THE STOCKTON COMMUNITY.
HERE IS WHAT COMMUNITY PRIDE MEANS TO US.PARTNERING
Teaming with Women
Transportation Seminars (WTS) a nonprofit
organization to introduce
young women to the maritime
industry
Just being located somewhere does not make you an active and valuable part of a community – it takes proactive action and commitment. The Port takes great pride in its location and focuses each year on implementing a robust Community Outreach Program aimed towards education, building partnerships, and strengthening the community. That’s why the Port’s list of sponsorship opportunities, community events and initiatives continue to grow.
25TH ANNUAL ROTARY READ-INIn February, a team of 10 Port sta� volunteered to read to students from Monroe Elementary School ranging in age from Kindergarten to Third Grade as part of the Rotary Read-In. Sponsored by the four Stockton-area Rotary Clubs, the Rotary Read-In promotes literacy
among children in the community and provides them with a great learning experience. The Port team joined hundreds of volunteers to read to students in a total of 870 classrooms at 63 elementary schools throughout the community. As part of the program, over 1,000 books were also donated.
ANNUAL ADOPT-A-FAMILY PROGRAM During the 2016 holiday season, the Port reached out to the Child Abuse Prevention Council (CAPC) of San Joaquin County to volunteer for their Adopt-A-Family program. Port employees generously donated a wide variety of gifts to 28 area children as part of this special program. In total, over 400 gifts and grocery
store gift cards were handed out to families the Saturday before Christmas at the San Joaquin County Fairgrounds. “The Port is proud to be a part of the Stockton community and participating in this program is just another way to enhance the lives of our neighbors,” said Director of Environmental and Public A�airs, Je� Wingfield. “Without our help and other participating organizations, this remarkable Adopt-A-Family program would not have had the broad success we saw this year.”
ANNUAL LIGHTED BOAT PARADE On the evening of December 3, the Port had the honor of leading the 35th Annual Delta Reflections Lighted Boat Parade with its fire boat – Sunrise. The event, hosted by the Marina West Yacht Club, is a festive way to start the holidays. The annual parade includes roughly 50 colorful, sparkling boats and with the hundreds of spectators, the event raises thousands of dollars for local charities.
THE POWER OF GIVING BACK
2016GIVING
BACK
Port Sta� step out into thecommunity to lend a hand
Port staff donated over 400 giftsfor 28 local Stockton children in need
2016 ANNUAL REPORT
2016 ANNUAL REPORT
BOAT TOUR GOLD STAR PROGRAMThe Port has seen many successes over the years with its Community Outreach Program, but none more complete than the free boat tours. The tours of the Port have captured the hearts of thousands of community members ranging in age from seniors to school age children. Each summer, attendees are o�ered a trip through time as they learn of the earliest maritime freight movement along the Delta while getting a fresh perspective of the current goods movement industry. While learning about history and the Port, attendees witness first hand ocean going ships passing by, longshoremen busy at work on the docks and the abundant wildlife and habitat that call the Delta their home.
This year, the Port partnered with the Sacramento Chapter of the international non-profit organization, Women Transportation Seminars. WTS as it is known focuses on advancing women in the transportation industry. The organization’s educational initiative Transportation You, targets area schools to engage with and introduce young women to the world of transportation. The boat tours were a perfect fit for the program and in September 15 young women from a Sacramento inner city school were hosted by the Port. For half of the girls, the tour marked their first experience on a boat; for all, their first time learning or talking about goods movement. With this special tour among the many others in 2016, the Port continues to extend a hand out to the region through engagement and education.
2016 ANNUAL REPORT
COMMUNITY TIES 25
2016BOAT
TOURS
The Boat tours are an amazing wayto connect to the Valley & Stockton community
2016 ANNUAL REPORT
Top left: Port hosts hundreds at annual “State of the City” Event Top right: Union Pacific Railroad Chairman, President and CEO Lance Fritz addresses the crowd at the UP Rail Welding Facility ribbon cutting
Bottom center: First Annual “Port Mixer” held at the Albert Lindley House
UP RAIL WELDING FACILITY RIBBON CUTTING CEREMONYFall marked another big milestone for the Port when Union Pacific (UP) christened their new rail welding facility at the Port. A ribbon cutting ceremony, jointly hosted by UP, Sumitomo Corporation of Americas and the Port, commemorated the occasion. The new $18 million facility occupies 38 acres of the Port’s West Complex and consists of a 90,000 square foot rail storage structure with a 200-foot span overhead
crane, an 18,000 square foot welding and inspection building as well as 17,000 feet of new rail. Specifically for this project, the Sumitomo Corporation constructed the world’s first long-rail transport ship, the M/V Pacific Spike. This custom-built ship will carry rail from Japan to the Port facility for further distribution throughout the United States.
THE STATE ROUTE 4 EXTENSION IMPROVES ACCESS TO THE PORTA partnership between Caltrans and the San Joaquin Council of Governments, the $140 million project extends the Crosstown Freeway west from Fresno Avenue to Navy Drive to eliminate truck tra�c within the Boggs Tract neighborhood and improve Port access. The old terminus at Fresno Avenue created extreme congestion and less than ideal conditions on local roads as some 6,500 vehicles, including 4,400 long-haul trucks, traveled through the Boggs Tract community on a daily basis to access the Port and other neighboring industrial uses.
While the entire project will not be complete until 2017, Caltrans and Port o�cials celebrated the completion of the State Route 4 ramp extension in the fall. “For more than 150 years, the Port has been where goods and people intersect. The completion of this project will be beneficial to e�cient goods movement and create direct access to the Port,” commented Port Commission Chairman R. Jay Allen.
18TH ANNUAL STATE OF THE CITYEleven years running, the Port has welcomed over 1,000 community members from across the region to the Annual State of the City luncheon. Co-sponsored by the Greater Stockton Chamber of Commerce, the City of Stockton and the Port, the high-profile event showcases the City’s economic, educational and cultural development while highlighting the future. By hosting the event at the Port, attendees are able to experience, often for the first time, what life is like at a bustling inland Port.
PORT OF STOCKTON MIXER With the ongoing infrastructure improvements happening within and around the Port, goods movement and new business partner opportunities, the Port had plenty to share and celebrate at their first annual Port Mixer. On September 22nd, Port Commissioners and the Director hosted an evening mixer at the Albert Lindley House (formerly known as the Commander’s House). The Mixer created the opportunity to share 2016 progress and future initiatives and plans for the lively Port.
A YEAR OF CELEBRATION
COMMUNITY TIES 27
2016SPECIALEVENTS
Convenient access, available space and facilities, flexible operations and strong community values have the Port celebrating success
2016 ANNUAL REPORT
Steel coils prepped for local manufacturing
PORT IN THE NEWS
PORT NEWS 29
JANUARYCentral Valley Business Journal (cvbj.biz.com): Port sees second-best year
The Record (Recordnet.com): Port sees record in Ship Tra�c
FEBRUARYThe Record (Recordnet.com): Economic impact continue to grow at Port of Stockton
The Record (Recordnet.com): Port of Stockton Outlook: Following up record-setting years at Port of Stockton
The Record (Recordnet.com): Port Aiming High
MARCHThe Record (Recordnet.com): Google barge to head north
APRILThe Record (Recordnet.com): Stockton Port’s BondRating Upgraded
MAYCentral Valley Business Journal ([email protected]): Port Profits from Organic Corn Import Boom
JUNEThe Record (Recordnet.com): Port of Stockton O�cials Adopt $52.9 Million Budget
JULYCentral Valley Business Journal ([email protected]): Port Lays Out“Conservative” Budget
AUGUSTGlobal Trade: Niche ports are pushing for growth
SEPTEMBERCentral Valley Business Times: Rare painting of Stockton Port acquired by Crocker Art Museum
NOVEMBERThe Record (Recordnet.com): Rubber recycling plant coming to Stockton
THE PORT SAYS THANK YOU2016 was a year of success, celebration and bittersweet moments for Port sta�. After decades of committed service, five valuable sta� members and managers retired from successful careers at the Port. The years of service among this amazing and dedicated group totaled 190 years, demonstrating the strength of the Port team and undeniable satisfaction in working in the dynamic maritime industry. The Port thanks each retiree for their partnership and service.
James CooperInformation Technology39 years of service
Larry LockmillerOperations39 years of service
Mark TolliniOperations41 years of service
Mike TylerOperations34 years of service
David ZendejasMaintenance37 years of service
2016 ANNUAL REPORT
AMERICAN ASSOCIATION OF PORT AUTHORITIES For the 50th year, the American Association of Port Authorities (AAPA), the unified voice of seaports in the Americas, recognized ports across the U.S. for exemplary communications projects and programs. The Port of Stockton was honored to receive the Award of Excellence in the category of Best Advertisement Series for the “I’m a Part of the Port” advertising campaign. The Port was the only port in North America to receive the top honor. The campaign features thumbnail profiles of individuals who directly or indirectly benefit from the Port’s work. These include importers, local schools who receive $5 million in tax revenue from operations, and even wildlife, specifically the owl box program that provides homes for owls to nest and rear owlets. The owl box program is an environmentally friendly rodent control e�ort to decrease rodent population with the focus on maintaining levee integrity.
The Port also received an Award of Distinction for its redesigned marketing brochure in the category of Promotional. The Port utilizes the marketing brochure to communicate with legislative representatives,
industry leaders, local community stakeholders, potential business partners and tenants. The brochure is a valuable tool in communicating and building understanding ofPort operations.
The final AAPA award received by the Port was the Award of Merit for recognition of the Spirit of the Port, a partnership between the Port and the Delta Sculling Center (DSC). The Stockton-based organization provides people of all abilities access to fitness, health and recreation including the sport of sculling. The Port contributed to DSC’s mission by donating the Spirit of the Port – a two-seat sculling boat for people with disabilities. The Spirit of the Port is unique and highly valuable to DSC because it accommodates adaptive rowers who otherwise could not be on the water.
GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE U.S. AND CANADAIn 2016, the Port Finance Department earned the Certificate of Achievement for Excellence from the Government Finance O�cers Association for the Port’s Financial Reporting. This honor has been bestowed upon the Port annually for almost two decades straight.
PORT HONORS
2016AAPA
AWARDS
The Port of Stockton was the only port in NorthAmerica to receive AAPA’s Award of Excellence, the
highest honor, for their innovative ad campaign
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ANNUAL REPORT 2016
PORT OF STOCKTON
PORT OF STOCKTONP.O. BOX 2089, STOCKTON, CA 95201-2089
2201 WEST WASHINGTON STREET, STOCKTON, CA 95203
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