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Monday, April 15, 2024 | Back issues
Courthouse News Service Courthouse News Service

Port of Long Beach goes big on trains to relieve congested docks

The port envisions the $1.5-billion project will result in 35% of cargo moving out by train rather than by truck.

LOS ANGELES (CN) — The Port of Long Beach is embarking on a massive overhaul of its cramped and aging rail yard to enable more cargo to get moved off the docks by train and to cut down on the number of diesel trucks that are currently hauling the vast majority of containers inland.

Last month, the U.S. Maritime Administration issued a final environmental impact statement and approved the Pier B On-Dock Rail Support Facility, a $1.5-billion a project that will take about 10 years to complete. The approval clears the way for the port to seek federal funding for the undertaking that aims to put 35% percent of the import containers arriving from across the Pacific on trains.

The new yard is the centerpiece of four rail projects at the port to move cargo faster, more efficiently and more sustainably as the unprecedented increase of imports from Asia shows no sign of slowing down. Both the Port of Long Beach and the adjacent Port of Los Angeles, which together form the largest container port complex in the U.S., are trying to reduce their carbon footprint while at the same time coping with capacity constraints to handle the millions of arriving containers each year driven by unrelenting consumer demand.

"We will grow, and we will grow green," Mario Cordero, the executive director of the port, said at an April 28 ceremony for the completion of the first of the four rail projects, a double track that will allow four marine terminals to handle both arriving and departing trains simultaneously. "We want to eliminate trucks from the freeways and the neighborhoods."

The key issue the expanded rail yard will address is that there isn't enough space at the port currently to assemble thousands of loaded rail cars into enough single trains that can go straight from the port to major consumer markets in the interior U.S., such as Chicago, Dallas, or Denver. As a result, the bulk of the containers headed to those destinations are now hauled by truck to rail yards near downtown LA, about 17 miles outside the port, where they are put on trains, which is of course a lot more polluting and less efficient.

In addition, the existing rail yard doesn't have enough room to accommodate 10,000-foot-long trains, which are becoming the railroad industry's norm for container trains, so that arriving trains that length need to be broken up into smaller segments outside the port. This leads to more delays at street crossings in the vicinity and, again, more pollution and less efficiency.

"Rail is such an important part of that movement toward a greener, more sustainable community," Long Beach Mayor Robert Garcia said at the April 28 event. "We know that just one full train removes up to 2,000 trucks that come in and out of our port."

The new yard will add five 2-mile long arrival and departure tracks to accommodate these long trains. By comparison, the longest track in the Pier B yard currently is just 2,000 feet. The expansion will also more than quadruple the space at the support yard, from 20,000 to 93,000 feet of rail, to store and sort rail cars before they either go to a marine terminal to get loaded or get added to a departing train. The project also adds a resupply station for up to 30 locomotives.

As a result, more containers can be put directly on cars at the port's five marine terminals equipped with rails, where the containers are unloaded from the ships, and moved to the yard, where they can be assembled into trains by destination, thereby more than doubling the number of daily trains that are ready to depart the port for the Midwest and the Southern U.S.

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Rendering of the proposed Pier B On-Dock Rail Facility (Source: Port of Long Beach).

"We're hoping to convert more truck markets into train markets," Mark Erickson, deputy chief harbor engineer at the Port of Long Beach, said in a telephone interview. "This will help at the rail-side to alleviate the capacity issues at the port."

Although the entire project isn't scheduled be completed until 2032, the first phase is expected to be ready by 2025 and will double the yard's capacity.

As of now, trucks are still more cost efficient to deliver containers to destinations within a one-day trip from the two ports, such as Las Vegas and Phoenix. Trains, by contrast, are far more economical for longer journeys, Erickson said. But that requires locomotives and rail cars to be available in sufficient numbers at the ports as well as the infrastructure to assemble trains relatively quickly when containers are unloaded.

In the last few years, a growing amount of imports have been moved by train to the interior U.S. as distribution centers are built closer to where consumers live, said Nate Herman, senior vice president, policy, with the American Apparel and Footwear Association. But that development has been undermined by the significant disruptions at the freight railroads' operations both last year and more recently.

"They can't get the right equipment at the right place at the right time, and it's unclear why," Herman said in a telephone interview. "There's really not one good answer."

The two Southern California ports became national news last year when dozens of ships were idling off the coast because the docks were too congested to unload them. The logjam at the ports was part of nationwide supply-chain implosion caused by record numbers of imports combined with labor and equipment shortages in the railroad, trucking and warehousing industries from the Pacific coast across the country.

The supply-chain meltdown last year has been huge and game-changing for the apparel industry, Herman said. Clothing and footwear retailers, who need to have their often seasonable goods in the stores, or available online, at the right time of year, have been forced to move away from just-in-time supply chains to placing their overseas orders months longer in advance and holding more inventory to avoid shortages, according to Herman.

Given the U.S. trade imbalance, much more cargo gets imported than is exported, which means that equipment such as rail cars piles up at one end of the country, leaving a shortage at the West Coast ports. The expanded rail yard at Long Beach will be able to stack many more empty rail cars and build more flexibility into the system to meet shippers and retailers' needs, Erickson said.

LA and Long Beach have a historic opportunity to upgrade their aging facilities with their share of the $17 billion that last year's bipartisan infrastructure bill set aside to fix the nation’s ports. On top of that, California Governor Gavin Newsom in January proposed a budget that includes $2.3 billion for the state’s ports, including $1.2 billion for infrastructure and goods movement, $875 million for zero-emission equipment and infrastructure, and $110 million for a workforce training campus.

The Port of Long Beach already got a fiscal boost last year when the federal government awarded a $52.3 million grant, contingent on the now granted approval, to help fund the development of the Pier B rail project. That money is just a small fraction, however, of the $1.547 billion it's expected to cost to complete all the work over the next 10 years.

The project is complicated, and expensive, because the rail yard is surrounded by oil services and liquid bulk operations as well as other businesses, and a lot of the work will involve costly and time consuming projects to clear the site, Erickson said. This includes buying up properties and moving businesses, relocating oil and natural gas pipelines, as well as a flood-control pump station, and demolition and rebuilding of utilities networks without disrupting service to adjacent users.

Plans to overhaul the rail yard have been on drawing board for years but the timing of the project coincides with a new focus on the efficiency of the Southern California ports prompted by last year's supply-chain interruptions. Both LA and Long Beach already handled record numbers of import containers in the first quarter of this year, and shippers, worried about new delays caused by Covid-related shutdowns in China and the upcoming labor talks between longshore union and the marine terminal operators, are bringing in as much cargo as they can ahead of time.

Although the ports have made substantial progress clearing the unprecedented backlog of import containers from last fall, in recent months the so-called dwell time containers spend sitting on the docks before getting transported to their destination has started to creep up again. Both LA and Long Beach reported last month that in particular the number of containers that are waiting to get put on trains has reached alarming heights.

The main cause of the problem has been a lack of rail cars to put the containers on, which in turn is connected to congestion at the nation's largest rail hubs in the Midwest. U.S. Transportation Secretary Pete Buttigieg has been on the phone recently with the chief executives of two national railroads serving Southern California, Burlington Northern Santa Fe and Union Pacific, to urge them to address the shortage.

"Union Pacific’s West Coast port rail operations remain fluid, and we have ramped up rail shipments in recent weeks due to higher demand," the railroad said in a statement Wednesday. "We continue to proactively work with our customers managing shipments as the supply chain recovers from COVID-related disruptions."

Representatives of Burlington Northern Santa Fe didn't respond to requests for comment.

At one of the Port Long Beach's busiest marine terminals, about half of the containers that need to put on trains had been sitting there for more than 9 days in early April, Executive Director Cordero said at a board meeting last month.

"In normal situations, that dwell time would be no more than two or three days," Cordero said. "It's concerning because we can't afford to go back to where we were in the fall."

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Categories / Business, Economy, Environment, Regional

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