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July 21, 2014

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INTERNATIONAL MARITIME 40 THE JOURNAL OF COMMERCE JULY 21.2014 IN BRIEF n Cosco Plans New Ships After Sending 24 to Breakers China Cosco Holdings plans to buy five container ships capable of carrying 14,000 20-foot-equivalent units each to help replenish a fleet that has been cut aggressively this year. No prices were given, but the container ships could cost as much as $130 million each. China Cosco has been taking advantage of Beijing's new scrapping policy, which provides subsidies to carriers that demolish and build vessels in China. The line, which has sent 24 ships to the scrap yard this year, is renewing its fleet and replacing older vessels with new and more fuel-efficient ships in a bid to raise its profitability. n TRAC to Update Chassis Pool in NY-NJ TRAC Intermodal has launched a program to add or refurbish several thousand chassis in its Metropool, the largest chassis pool in the Port of New York and New Jersey. Within the next 12 to 18 months, TRAC expects its Metropool fleet to be updated with 4,000 to 5,000 new or refurbished chassis, CEO Keith Lovetro told The neutral pool has more than 20,000 chassis. TRAC is transferring 1,000 chassis from other locations as distant as the Pacific Northwest and Houston, Lovetro said. The company recently contracted to overhaul 1,500 existing Metropool units in the next 18 months, and is in a pilot program for a separate contract to refurbish another 1,000 units, he said. n Holt, South Jersey Port Corp. to Build Multipurpose Terminal South Jersey will get its first new marine terminal on the Delaware River in more than 30 years as a result of a partnership between Holt Logistics and South Jersey Port Corp. The two parties plan to build a multipurpose facility on two brownfield sites totaling 190 acres where a BP liquid bulk terminal and a Dow Chemical plant once stood. SJPC expects to complete the $170 million redevelopment of the Paulsboro terminal by next year. The terminal, which will have an on-dock rail spur on four miles of track that Conrail will operate, will connect with Norfolk Southern and CSX trackage. It's not yet clear what commodities the terminal will handle. JOC with retailers and other BCOs because when it comes to adding value to the supply chain, "they have a good handle on it," he said. After leaving FedEx Canada, Slangerup served as a CEO, director or board member of start-up companies including Mxi Tech- nologies, NEI Treatment Systems, Stuart Energy and Clear Edge Power, which are involved in alternative fuels for industrial users and vessel ballast water treatment solutions. Most recently, he served with Moelis Capital Partners, a New York private equity firm that consults on corporate acqui- sitions. His role at those companies was to build value and prepare them for acquisition. In his new post, Slangerup also must repair relations between the port and the city of Long Beach. That relationship cratered the past several years under then- Mayor Bob Foster. The mayor and city council angered marine terminal operators and shipping lines by changing the formu- las through which port money is channeled into the city's coffers. The port was in the unenviable position of having to spend billions of dollars to prepare its infra- structure for today's big ships while it was diverting millions of additional dollars into city coffers. Foster encountered opposition from some members of the harbor commission. The mayor and city council handled those issues by firing one harbor commissioner — the first time in the 100-year-old port's history that a commissioner was fired — and accepting the resignation of another. Two executive port directors — Dick Steinke and Chris Lytle — were caught up in the internecine warfare, and they left the port, opening the door for a nationwide search that ended with the selection of Slangerup. Slangerup met with Garcia, as well with the commission, and he is confident they are all on the same team. At a candidates' debate in Long Beach in late May before the may- oral run-off election, Garcia emphasized that if elected he had no desire to be a port director or harbor commissioner. Garcia said he would be the port's biggest sup- porter, but he would let the new executive director and the harbor commissioners do their jobs without interference. Slangerup views his experience with alternative fuels and green technologies as preparing him for one of the port's most significant missions, which is to promote growth while reducing harmful diesel emis- sions. The Middle Harbor terminal now under construction will fulfill that mission perfectly. At full build-out by 2020, it will have a capacity of 3 million TEUs. As virtu- ally an all-electric facility, it will be one of the cleanest container terminals in North America. For Slangerup, reducing consumption of diesel fuel is both a business proposition and an environmental goal, because the port and its tenants save money in operational costs while reducing emissions. "Environmental stewardship and economic value are two sides of the same coin," he said. Slangerup also looks forward to working with Gene Seroka, the new executive direc- tor at Los Angeles, to enhance the position of the Southern California ports as the largest U.S. container complex. Los Angeles-Long Beach each year handles more than one- third of all U.S. containerized cargo, and 40 percent of containerized imports from Asia. Long Beach alone handled 6.7 million TEUs in 2013, up 12 percent from 2012, but down from the port's peak performance of 7.3 million TEUs in 2007. I nd iv idu a l ly, L ong B e ach h a s a 27.5 percent share of the container market on the west coast of North America, and Los Angeles' market share is 33.9 percent, according PIERS, the data division of JOC Group. The two ports have a long history of working together on infrastructure projects such as the Alameda Corridor, Intermodal Container Transfer Facility and Clean Air Action Plan, while competing for business. Slangerup said that because he and Seroka, the former president of the Americas at APL, are new to the port side of the indus- try, they will bring fresh ideas to the harbor complex. "There is no baggage," he said. JOC Contact Bill Mongelluzzo at and follow him on Twitter: @billmongelluzzo.

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