McLean's - American Shipper

ut Bay Area leaders see the sameconcept as crucial to expansion ofthe Oakland port.In this case, Sacramento couldliterally and euphemistically bean inland port.“You have the potential to gettrucks off the road,” King said.“As the port here grows, we haveto take on issues that address environmentalstewardship, and thiscould potentially accomplish thatas well as put Northern Californiaon a higher growth path in termsof global trade.”Port partnershipThe ports of Oakland and Sacramento are looking to link upto promote common interests — Oakland to expand its reachinto California’s central valley, and Sacramento to survive financially.Over the next few months, the ports will work to:• Improve operating efficiencies.• Create a synergistic marketing strategy.• Extend Oakland’s maritime industry relationships andalliances to Sacramento.• Consolidate and leverage governmental, business andprofessional alliances.• Development new sustainable business and new revenuesbetween the two ports.• Reduce pollution through a possible waterborne cargobarging operation.• Eliminate operating losses at the port of Sacramento.• Develop and fund needed infrastructure at the Port ofSacramento.• Develop environmental enhancement and mitigationprograms at the Port of Sacramento using successful programsdeveloped by Oakland.End Of The Road. Of course,if all goes according to plan, Sulpiziomight not be around to seeit. If the two ports are successfulin attracting a terminal operatorto manage the port’s five berthsand bulk handling equipment, itwill mean a significant downsizingof port staff.Sacramento has been run as an operationalport since its inception in 1963, so themove to privatizing operations representsa paradigm shift, Sulpizio said.“Port staff would be downsized to anominal group and folded into the city,”he said.It will likely be run by Mike Luken, theCity of West Sacramento’s port manager.“We’re hoping the relationship will providea steady stream of revenue,” Luken said.“From a city standpoint, it would be greatto see the port have success. It doesn’t doanybody any good to have a vacant industrialfacility in the middle of the city.”Aside from management, the governanceof the inland port is also due for a radicalchange. For years, it has been a politicalfootball, tossed around between four governmententities — the cities of Sacramentoand West Sacramento and the counties ofYolo and Sacramento.The port lies entirely within the city ofWest Sacramento and Yolo County, but thosefour agencies shared seven seats on the portboard — and, ironically, Sacramento cityand county had the board majority.That changed in September, when theSacramento-Yolo Port District Commissionvoted to dissolve the four-party board.Currently, West Sacramento has fourseats on the board, and Sacramento andYolo and Sacramento counties each haveone. Soon, Sacramento city and countywill withdraw.Sulpizio said the more streamlined boardwill only make the port more attractive toprivate terminal operators.“The wild card is whether terminal operatorssee this as a revenue opportunity toprivatize,” he said. “We hope that the politicalstability (on the board) and the Oaklandname will give us some clout.”King said Oakland will determine overthe next few months whether Sacramento’stransport insurance plus innovationInsurance for:Transport and logistics operatorsPorts and terminalsCargo handling facilitiesShip operatorsContact TT via your brokeror at any point in the networkNew JerseyTel +1 201 557 7300San FranciscoTel +1 415 956 6537LondonTel +44 (0)20 7204 2626www.ttclub.commarketing@ttclub.comTRANSPORT / PORTSfinancial problems are, indeed, ahindrance to consummating a portpartnership.“Our view is that’s more behindthe Port of Sacramento now,” Kingsaid. “The arrangement betweenthe two ports should contributeto the health of Sacramento. Ofcourse when you start the relationship,you have to work out thedetails. But we’re focused on thefuture of the two ports rather thanthe administrative and economictroubles.”Longtime Target. And that’sbecause Oakland officials havelong eyed the City of Sacramentoand its surrounding suburbs as apotential growth market.“I don’t think you can considerthe Port of Sacramento as a competitorto us,” King said. “We’vealways thought of Sacramento,because of its proximity to theCentral Valley, as more or less withinour sphere. But we never really thought,let’s have an arrangement with the Port ofSacramento.”That changed when the governance andfinancial problems in Sacramento forcedAMERICAN SHIPPER: APRIL 2006 89