September 9, 2021

The Honorable John Garamendi                                                                         The Honorable Dusty Johnson

U.S. House of Representatives                                                                        U.S. House of Representatives

2368 Rayburn House Office Building                                                              1714 Longworth House Office Building Washington, DC 20515                                                  Washington, DC 20515

Dear Representatives Garamendi and Johnson,

On behalf of the undersigned companies and trade associations representing US importers, exporters, transportation providers and other supply chain stakeholders, we are writing to express our strong support for the Ocean Shipping Reform Act of 2021 (OSRA21) which you have introduced. We believe the reforms included in OSRA21 will help address longstanding, systemic supply chain and port disruption issues which have been further exacerbated by the COVID-19 pandemic.

The ongoing supply chain challenges that face the nation’s exporters and importers are having a significant effect on their economic recovery during the pandemic. While the supply chain has been stretched from end-to-end, there are systemic issues that need to be addressed in the maritime cargo sphere. For many years, the issue of detention and demurrage has been a problem leading to significant cost increases for cargo owners and truckers, many times due to issues beyond their control. We certainly welcomed the Interpretive Rule on Detention and Demurrage as published by the Federal Maritime Commission, but we need more than just “guidance” that is not being followed by ocean carriers nor marine terminals, leading to hundreds of millions of dollars in unfair penalties against US shippers and their transportation partners. The legislation will seek to formalize this rule and truly define the parameters for these charges.

Foreign markets are critical to American businesses, particularly US farmers and ranchers, with more than 20% of agricultural production going abroad. Problems obtaining ocean containers of any kind, combined with difficulty securing vessel space at any price, are jeopardizing livelihoods and economic recovery. The attention given these unreasonable practices and the reforms proposed in OSRA21 are critical to reversing those challenges facing not only US exporters but also US businesses that rely on imports.

The legislation will also seek to update key provisions of the Ocean Shipping Reform Act, which has not been updated in over two decades. The maritime transportation system has changed significantly during those decades. While some maritime transportation system changes have been a positive for the industry overall, we need to ensure the regulations remain applicable to today’s reality. With the creation of the carrier alliances, contraction of the number of carriers in the market, changes to chassis management, and others, we believe the time is right for these important reforms.

We thank you for your strong leadership on this issue to ensure that the ongoing supply chain disruption and port congestion issues are addressed. This will help ensure US

competitiveness and continued economic recovery. We look forward to working with you to ensure passage of this important legislation.

Sincerely,

Propeller Club Los Angeles / Long Beach Phone: 714.316.5269

Fax: 714.632.5405

info@propellerclublalb.org www.propellerclublalb.org

June 29, 2021

The Honorable Pete Buttigieg

Secretary of the U.S. Department of Transportation 1200 New Jersey Avenue, SE

Washington, DC 20590

Re: FY 2021 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Program – Pier B Early Rail Project

Dear Secretary Buttigieg:

We are writing to express our strong support for Port of Long Beach’s $168.8 million Pier B Early Rail Project, which is seeking $25 million in grant funding from the FY 2021 Rebuilding American Infrastructure with Sustainability and Equity (RAISE). The Project is the initial phase of the overall Pier B On-Dock Rail Support Facility (Program), which will dramatically expand the Port’s on-dock rail capacity.

Spanning more than a decade, the Program entails reconfiguration, expansion and enhancement of the existing Pier B railyard in the nation’s second-busiest port to sufficiently accommodate the expected demand of cargo to be moved via on-dock rail into the foreseeable future, accept and handle longer container trains, and improve efficiency of on-dock intermodal operations. The Project is comprised of three connected, but independent components namely - the Locomotive Facility, the West Expansion Infill, and the East Expansion. The Project will, in alignment with the overall Program objectives, construct new tracks, as well as realign and improve existing tracks and roadways, to increase safety and operational efficiency. These initial rail installations, delivered an estimated six years before completion of the overall Program, will allow critical operations to occur while the remaining phases of the Program are completed.

The Propeller Club of Los Angeles-Long Beach, was chartered July 28, 1939 and has been the leading maritime organization in the Los Angeles-Long Beach area. This chapter is part of the Pacific Coast Region of the Propeller Club of the United States.

Together with the Port of Los Angeles-Long Beach, this region includes the Port of San Diego, Port of San Francisco, Port of Port the Columbia River, Port of Tacoma, Port of Seattle and the Port of Honolulu.

The Club is governed by a President, First Vice President, Second Vice President, Secretary- Treasurer and Board of Governors. Committee chairs and members are responsible for planning the various activities of the club. The committees include: Programs/Special Events, Seafood Feast, Education, Golf, Membership, Legislative, Public Relations and Reception.

Propeller Club of Los Angeles-Long Beach PO Box 10 | Manhattan Beach, CA 90267 www.propellerclublalb.org

Benefits from the Project include:

• ·       Align with the overall Program to support more efficient use of “on-dock” rail at the Port’s marine terminals, which will in turn ease roadway traffic congestion and improve air quality.
• ·       Provide much needed capacity to the entire San Pedro Bay port complex rail system.
• ·       Reduce the number of light-engine moves on the San Pedro Bay rail network between remote fueling facilities and port terminals.
• ·       Reduce switching moves and open main tracks for through movements, while generating less emissions and less idling through decreased locomotive dwell time.
• ·       Promote a mode shift that would allow more containers to be transported directly by rail to and from the on-dock and supporting rail yards rather than transported by truck to near-dock and/or off-dock rail facilities;
• ·       Receive and depart up to 10,000-foot-long trains, within the confines of the rail yard, to accommodate the increasing use of longer trains by the Class I railroads.
• ·       Support the San Pedro Bay Port Complex’s goal of maximizing transport of goods via on-dock rail.

Southern California is home to America’s leading container port complex, handling 40 percent of our nation’s imports and 25 percent of exports. The Port directly and indirectly supports 1 in 5 jobs in Long Beach, 576,000 jobs in Southern California, and 2.6 million jobs nationally. Trade moving through the Port generates $46 billion in tax and revenue contributions each year. The United States Department of Agriculture ranks the Port of Long Beach among the top 20 U.S. ports moving waterborne agricultural trade; the Port cumulatively supports $374 billion of total economic output across the U.S. economy.

The Port of Long Beach has been working diligently to ensure essential goods are delivered promptly throughout the challenges of the pandemic. Despite the current disruptions, the Port has and will continue to play a vital role by ensuring that our supply chains remain resilient.

Significant investments in port infrastructure are crucial to ensure an efficient supply chain and our nation’s access to global markets.

We respectfully request USDOT approval of this RAISE grant application and appreciate your consideration and leadership. Questions regarding this letter may be directed to David Arsenault, President of the Propeller Club of Los Angeles / Long Beach. David can be reached by phone at 714-272-4741 or by email darsenault555@gmail.com.

Sincerely,

Propeller Club Los Angeles / Long Beach Phone: 714.316.5269

Fax: 714.632.5405

info@propellerclublalb.org www.propellerclublalb.org

Propeller Club of Los Angeles-Long Beach PO Box 10 | Manhattan Beach, CA 90267 www.propellerclublalb.org

June 29, 2021

The Honorable Pete Buttigieg

Secretary of the U.S. Department of Transportation 1200 New Jersey Avenue, SE

Washington, DC 20590

Re: FY 2021 Port Infrastructure Development Program (PIDP) – Pier B Early Rail Project Dear Secretary Buttigieg:

We are writing to express our strong support for Port of Long Beach’s $168.8 million Pier B Early Rail Project, which is seeking $52.3 million in grant funding from the FY 2021 Port Infrastructure Development Program (PIDP). The Project is the initial phase of the overall Pier B On-Dock Rail Support Facility (Program), which will dramatically expand the Port’s on-dock rail capacity.

Spanning more than a decade, the Program entails reconfiguration, expansion and enhancement of the existing Pier B railyard in the nation’s second-busiest port to sufficiently accommodate the expected demand of cargo to be moved via on-dock rail into the foreseeable future, accept and handle longer container trains, and improve efficiency of on-dock intermodal operations. The Project is comprised of three connected, but independent components namely - the Locomotive Facility, the West Expansion Infill, and the East Expansion. The Project will, in alignment with the overall Program objectives, construct new tracks, as well as realign and improve existing tracks and roadways, to increase safety and operational efficiency. These initial rail installations, delivered an estimated six years before completion of the overall Program, will allow critical operations to occur while the remaining phases of the Program are completed.

The Propeller Club of Los Angeles-Long Beach, was chartered July 28, 1939 and has been the leading maritime organization in the Los Angeles-Long Beach area. This chapter is part of the Pacific Coast Region of the Propeller Club of the United States.

Together with the Port of Los Angeles-Long Beach, this region includes the Port of San Diego, Port of San Francisco, Port of Port the Columbia River, Port of Tacoma, Port of Seattle and the Port of Honolulu.

The Club is governed by a President, First Vice President, Second Vice President, Secretary- Treasurer and Board of Governors. Committee chairs and members are responsible for planning the various activities of the club. The committees include: Programs/Special Events, Seafood Feast, Education, Golf, Membership, Legislative, Public Relations and Reception.

Propeller Club of Los Angeles-Long Beach PO Box 10 | Manhattan Beach, CA 90267 www.propellerclublalb.org

Benefits from the Project include:

• ·       Align with the overall Program to support more efficient use of “on-dock” rail at the Port’s marine terminals, which will in turn ease roadway traffic congestion and improve air quality.
• ·       Provide much needed capacity to the entire San Pedro Bay port complex rail system.
• ·       Reduce the number of light-engine moves on the San Pedro Bay rail network between remote fueling facilities and port terminals.
• ·       Reduce switching moves and open main tracks for through movements, while generating less emissions and less idling through decreased locomotive dwell time.
• ·       Promote a mode shift that would allow more containers to be transported directly by rail to and from the on-dock and supporting rail yards, rather than transported by truck to near-dock and/or off-dock rail facilities;
• ·       Receive and depart up to 10,000-foot-long trains, within the confines of the rail yard, to accommodate the increasing use of longer trains by the Class I railroads.
• ·       Support the San Pedro Bay Port Complex’s goal of maximizing transport of goods via on-dock rail.

Southern California is home to America’s leading container port complex, handling 40 percent of our nation’s imports and 25 percent of exports. The Port directly and indirectly supports 1 in 5 jobs in Long Beach, 576,000 jobs in Southern California, and 2.6 million jobs nationally. Trade moving through the Port generates $46 billion in tax and revenue contributions each year. The United States Department of Agriculture ranks the Port of Long Beach among the top 20 U.S. ports moving waterborne agricultural trade; the Port cumulatively supports $374 billion of total economic output across the U.S. economy.

The Port of Long Beach has been working diligently to ensure essential goods are delivered promptly throughout the challenges of the pandemic. Despite the current disruptions, the Port has and will continue to play a vital role by ensuring that our supply chains remain resilient. Significant investments in port infrastructure are crucial to ensure an efficient supply chain and our nation’s access to global markets.

We respectfully request USDOT approval of this PIDP grant application and appreciate your consideration and leadership. Questions regarding this letter may be directed to David Arsenault, President of the Propeller Club of Los Angeles / Long Beach. David can be reached by phone at 714-272-4741 or by email darsenault555@gmail.com.

Sincerely,

Propeller Club Los Angeles / Long Beach Phone: 714.316.5269

Fax: 714.632.5405

info@propellerclublalb.org www.propellerclublalb.org

Propeller Club of Los Angeles-Long Beach PO Box 10 | Manhattan Beach, CA 90267 www.propellerclublalb.org

THE INTERNATIONAL PROPELLER CLUB

of the United States

An international business network dedicated to the promotion of the maritime industry, commerce and global trade.

NATIONAL MARITIME DAY MAY 22, 2021

May 22 marks National Maritime Day commemorating the 202^nd anniversary of the crossing of the Atlantic Ocean by the first steamship SAVANNAH. This crossing revolutionized the transportation of goods and passengers around the world. No longer were ships subject to the fluctuations of the wind. Predictable shipping schedules could be established.

The maritime industry continues to grow and improve its’ services. The invention of containerized shipping meant that cargoes could be loaded and unloaded quickly. Shipping lines built on that by inventing the double-stacked train that facilitated the growth of containerized shipments by train.

Today’s modern fleet of containerships carry more than 20,000 containers per vessel.

The Department of Defense depends upon maritime shipping to move military supplies to where they are needed overseas. During World War II, over 6,700 mariners sacrificed their lives moving equipment and personnel in support of this war. Merchant Mariners had the highest death rate of any of the U.S. military services. Freedom in Europe could not have been won without the merchant mariner.

During the COVID-19 pandemic this past year, maritime workers risked their lives and the lives of their family members by ensuring that goods continued to flow to meet growing consumer demands.

Conversely, the pandemic forced the cancellation of thousands of cruise ship voyages resulting in unemployment for thousands of workers. Many people do not realize the number of people that it takes to successfully operate a cruise ship – from the mariners onboard, the cooks and hotel staff, the pilots that safely navigate these ships through our coastal waters – all the way down the supply chain to the farmers that supply the tens of thousands of dozens of eggs and other foods consumed on these floating cities weekly.

So if you see a maritime worker, thank them for everything they do and the risks they take to put food on your table, televisions in your house, and logistical support for the U.S. military.

Respectfully, Sincerely,

Propeller Club Los Angeles / Long Beach Phone: 714.316.5269

Fax: 714.632.5405

info@propellerclublalb.org www.propellerclublalb.org

September 22, 2020

Honorable Gavin Newsom Governor

State of California State Capitol Building Sacramento, CA95814

Dear Governor Newsom,

RE: AB 3214 (Llm6n) oil spills: financial security, fines, and penalties- Veto Request

I am writing on behalf of the Los Angeles & Long Beach Port of The Propeller Club of the United States to register our opposition to Assembly Bill 3214 {Llm6n) and to respectfully request your VETO of the bill.

The Propeller Club of Los Angeles/Long Beach serves the nation's largest maritime gateway and port complex. Our association is comprised of members representing the many ocean carriers, harbor service craft, terminals, motor carriers, rail carriers, intermodall equipment providers, warehousing, logistics service providers, cargo owners, government agencies and labor unions associated with international goods movement through our ports.

The bill was originally Intended to address concerns over a 2015 pipeline spill. However, the 8111 as worded, will also apply to ships for simple accidental oil spills. The Insurance and re-Insurance markets which Insure nearly all of the ships operating to and from California have advised that they will be unable to provide the necessary coverage or affordable premiums for ships calling In California because of the newly proposed penalties. Thus, shipping companies and beneficial cargo owners will be forced or further motivated to reroute cargo to alternative ports outside of California This legislation will unfortunately  make California ports less competitive resulting In a further reduction in market share which has already been under siege and ultimately Impact the many jobs that are connected to the goods movement industry in California.

We respectfully request you VETO this bill.

Sincerely,

President

Propeller Club of Los Angeles & Long Beach

                              

July 14, 2020

Dear Members of the State Legislature,

The undersigned trade associations, organizations, and businesses altogether represent a broad cross-section of the California economy, including such industries as retail, manufacturing, agriculture, aerospace, and warehousing. The importance of a robust goods movement sector throughout the state cannot be understated. The sector services the states critical industries, supports 1 in 3 jobs in California and 1.6 million trade-related jobs in Southern California, and generates direly needed tax revenue. Moreover, the sector ensures that critical supplies can be available during the current crisis. We are requesting that Governor Newsom and the Legislature consider the importance of California's goods movement industry sector and take action to reverse the decline in market share before California permanently loses jobs and direly needed state revenue.

West Coast Ports Face "Significant" Continual Decline in Market Share.

• A recent analysis, prepared for the Pacific Merchant Shipping Association (PMSA) by international trade economist Jock O'Connell found that West Coast ports' market share has declined 19.4 percent since 2006.

• Dropping from 46.8% market share in 2006 to 37.7% in 2019, the impacts of these factors resulted in approximately 5.6 million fewer containers traveling through West Coast Ports versus competing gateways had West Coast ports maintained their market share.

  
  

  Loss of Market Share Impacts the State's Largest Employers, Increases Costs for Consumers, and Deprives the State of Infrastructure Investment, Environmental Benefits, and Tax Revenues.

• The loss of market share impacts many of California's leading employers, including retail, trucking, warehouse and distribution centers, ports, railroads, marine terminals, and export industries such as agriculture and aerospace.

• Infrastructure improvements and operational costs will be borne by California residents, as discretionary import cargo is diverted to East and Gulf Coast Ports.

• Trade routes are established over time and around infrastructure such as rail, warehouses, and distribution centers. Loss of market share means that investments in infrastructure are happening in other states, not California, resulting in more jobs and higher state and local tax revenues elsewhere and fewer jobs and state and local tax revenue here.

  
  

  We propose that you take the following steps to address the major causes of the loss of market share:

• Promote California ports as the most efficient and environmentally progressive ports in the nation.

• Meet the challenge from East and Gulf Coast states whose governmental leaders promote and invest in their ports and goods movement industries.

• Re-examine the state and regional regulations that are creating a disincentive to use California gateways. Determine whether the policies, particularly in environmental areas, are backfiring and encouraging more greenhouse gas emissions by sending more business to ports that are far behind California's climate program.

• Reconcile state laws encouraging environmental and efficiency mandates with the need to re-train workers to adapt to a changing work environment.

Thank you for your consideration of this request and please contact me if you have any questions or need additional background on the issues raised.

Sincerely,

Signatories:

Pacific Merchant Shipping Association Pacific Maritime Association California Trucking Association

NAIOP California

San Pedro Chamber of Commerce Harbor Trucking Association

San Gabriel Valley Economic Partnership California Business Properties Association Harbor Association of Industry & Commerce Inland Empire Economic Partnership Industry Business Council

Customs Brokers Association of Northern California California Railroad Association

Propeller Club of Los Angles & Long Beach