APEC port services network

Greening Our Ports: A Global Approach to a Global Issue

APSN WORKSHOP ON GREEN PORTS

Lunch Keynote Address

Geraldine Knatz, Ph.D.

September 19, 2011

THANK YOU AND GOOD AFTERNOON, EVERYONE.

GIVEN THE CALIBER AND DIVERSITY OF THE ATTENDEES OF THIS CONFERENCE, IT'S AN HONOR TO BE INVITED TO SPEAK TODAY, AND SHARE WITH YOU SOME HIGHLIGHTS REGARDING THE PORT OF LOS ANGELES' COLLABORATIVE SUCCESSES IN THE ENVIRONMENTAL ARENA.

THE CHALLENGE OF GREENING OUR INDUSTRIES ARE HEAVY CONSIDERATIONS TO WEIGH WHEN YOU STOP AND THINK ABOUT WHAT A DYNAMIC AND UNPREDICTABLE ENVIRONMENT PORTS TODAY MUST NAVIGATE. MANY PORTS ARE ROUTINELY IN THE VISUAL NEWS FRAME OF NATURAL DISASTERS, POLITICAL UNREST, PIRACY, AND GLOBAL ECONOMIC CONDITIONS. MANY OTHER PORTS FLY UNDER THE PUBLIC AND MEDIA RADAR. BUT THE FACT IS WE ARE ALWAYS IN THE PICTURE. AND, MORE THAN EVER, WE ARE EXPECTED BY OUR NATIONAL LEADERS AND LOCAL NEIGHBORS TO NOT ONLY MOVE THE CARGO THAT DRIVES GLOBAL TRADE, BUT MOVE IT IN INCREASINGLY CLEANER AND MORE RESPONSIBLE WAYS.

ON THE ENVIRONMENTAL FRONT, IN PARTICULAR, THE COLLABORATION WITHIN THE GLOBAL PORT COMMUNITY IS STRONG AND GROWING - AND IT HAS TO BE BECAUSE OUR INDUSTRY IS HISTORICALLY A POLLUTING BUSINESS. A BUSINESS WHOSE TRADITIONAL FUEL CAUSES HEALTH ISSUES FOR MILLIONS OF PEOPLE WORLDWIDE.

OUR INDUSTRY IS A HEAVY CONSUMER OF FOSSIL FUELS AND GENERATOR OF AIR EMISSIONS THAT COMPROMISE OUR ATMOSPHERE AND, MANY SAY, WILL PERMANENTLY ALTER OUR CLIMATE. GLOBAL WARMING, DIMINISHING RESOURCES AND LIFE-THREATENING POLLUTION ARE NO LONGER THEORIES. THEY'RE FACTS AND BECAUSE WE KNOW IT -- AS LEADERS IN OUR FIELD -- WE HAVE THE RESPONSIBILITY TO HELP CHANGE IT.

AND WE ARE! THERE ISN'T A MAJOR PORT, SHIPPING LINE OR TERMINAL OPERATOR THAT'S NOT ACTIVELY EXPLORING WAYS TO REDUCE POLLUTION AND CONSERVE RESOURCES IN PURSUIT OF CLEANER AND MORE SUSTAINABLE METHODS OF OPERATION.

BUT AS MUCH AS WE'VE ALL ACCOMPLISHED IN THE PAST FEW YEARS, WE STILL HAVE A LOT MORE WE NEED TO DO.

HOWEVER, LIKE MANY OF YOU, I WEAR ANOTHER HAT IN MY JOB - THE BUSINESS PERSON HAT. AS BUSINESS PEOPLE, WE RECOGNIZE THE MANDATE TO GO GREEN. BUT IT'S NOT A CARTE BLANCHE PROPOSITION.

ENVIRONMENTAL CHANGE COMES WITH A SIGNIFICANT PRICE TAG AND, IN THIS LINGERING STATE OF A GLOBAL RECESSION, ALL OF US ARE BEING CHALLENGED TO DELIVER GREEN WITHOUT DROWNING IN A SEA OF RED.

THE GOOD NEWS IS THAT, OVER THE PAST SEVERAL YEARS IN LOS ANGELES, WE DEMONSTRATED THAT WE CAN DO BOTH -- CLEAN THE AIR AND GROW OUR PORT. CERTAINLY NOT OVER NIGHT, BUT OVER TIME.

ALONG THOSE LINES, I'D LIKE TO SHARE WITH YOU SOME OF THE WAYS THAT OUR TEAM AND OTHERS ARE WORKING HARD TO MEET THE BOTTOM LINE WHILE BALANCING OUR ENVIRONMENTAL AND SOCIAL OBLIGATIONS.

(PAUSE)

FIRST, LET ME GIVE YOU A LITTLE BACKGROUND ...

TOGETHER, THE SAN PEDRO BAY PORTS OF LOS ANGELES AND LONG BEACH COMBINE TO CREATE THE BUSIEST GATEWAY FOR CONTAINERIZED CARGO IN THE WESTERN HEMISPHERE.

MORE THAN FORTY PERCENT OF ALL CONTAINER TRADE THAT ENTERS AND LEAVES THE U.S. GOES THROUGH SAN PEDRO BAY.

SO SOME MIGHT THINK THAT NOTHING SHORT OF A MAJOR RECESSION COULD NEGATIVELY IMPACT OUR CARGO VOLUMES. BUT IN L.A. - A NON-ATTAINMENT REGION IN TERMS FEDERAL AIR QUALITY STANDARDS -- WE KNOW BETTER. AND WE LEARNED IT THE HARD WAY.

IN THE LATE NINETIES -- JUST WHEN OUR CARGO VOLUMES WERE STARTING TO REALLY TAKE OFF -- THE STATE OF CALIFORNIA DECLARED DIESEL EXHAUST TO BE CARCINOGENIC.

AS IF IT WASN'T ENOUGH TO DEAL WITH THE MASSIVE CARGO AND CRUISE SHIP OPERATIONS THAT PEOPLE'S LIVELIHOODS DEPENDED ON, NOW WE HAD TO DEAL WITH ISSUES IMPACTING THEIR VERY LIVES.

THE RESULT OF THESE HEALTH CONCERNS AND RELATED THREATS OF LITIGATION WAS THAT WE WERE NOT ABLE TO BUILD PORT PROJECTS AND EXPAND THE TERMINALS IN L.A. AND LONG BEACH. FOR SEVEN YEARS, BECAUSE OF AIR QUALITY CONCERNS AND RELATED LEGAL THREATS, NEITHER THE PORT OF LOS ANGELES NOR THE PORT OF LONG BEACH WAS ABLE TO GET A MAJOR PORT PROJECT APPROVED.

OUR CUSTOMERS NEEDED MORE CAPACITY. OUR WORKFORCE NEEDED MORE JOBS. OUR CITY NEEDED MORE TAX REVENUE. THEY ALL NEEDED US TO GROW AND WE COULDN'T. A THICK LAYER OF AIR POLLUTION WAS BLOCKING OUR WAY TO THE FUTURE.

KNOWING WE HAD A DEEP, UNCHARTED OCEAN TO CROSS, WE BEGAN OUR VOYAGE INTO THE FUTURE. NOT IN PURSUIT OF A QUICK FIX, BECAUSE THERE REALLY WASN'T ONE. PEOPLE'S LIVES AND LIVELIHOODS WERE AT STAKE SO A COSMETIC SHORT-TERM BAND-AID WOULDN'T WORK. WHAT WE NEEDED WAS A COMPREHENSIVE LONG-TERM CURE.

OUR GOAL WAS TO REDUCE THE PORT'S HEALTH IMPACTS TO LEVELS BELOW THE REGULATORY THRESHOLD OF SIGNIFICANCE, AND THAT -- ON A PROJECT BASIS -- TO LESS THAN TEN INCREMENTAL CANCER CASES PER ONE MILLION PEOPLE OVER THE COURSE OF A LIFETIME. IN OTHER WORDS, DO EVERYTHING WE COULD TO MAKE IT MORE DANGEROUS TO DRINK A DIET SODA EVERY DAY THAN TO BREATHE THE AIR AROUND THE PORT OF LOS ANGELES.

WE NEEDED A MAP AND WE CREATED ONE. WE CALL IT OUR CLEAN AIR ACTION PLAN --OR "CAAP" FOR SHORT -- BECAUSE, AS YOU KNOW, EVERYTHING IN PORT OPERATIONS HAS TO HAVE AN ACRONYM.

FOR US, THE CAAP WAS A STRETCH-GOAL GUIDE FOR CUTTING EMISSIONS FROM VIRTUALLY EVERYTHING THAT MOVES BY ROUGHLY FIFTY PERCENT IN FIVE YEARS.

AND WE DID IT ... ALBEIT SLOWLY ... SOMETIMES DIRECTLY, SOMETIMES INDIRECTLY. IN SOME CASES, WE WERE THE INNOVATORS. IN MANY CASES, WE WERE DRAFTING OFF THE INNOVATIONS AND LEADERSHIP OF OTHER ORGANIZATIONS, BOTH BIG AND SMALL. BUT REGARDLESS OF HOW WE GOT THERE, BETWEEN 2005 AND 2010, FROM ALL PORT SOURCES WE REDUCED OVERALL PARTICULATE MATTER EMISSIONS 69-PERCENT, NITROGEN OXIDE EMISSIONS 50 PERCENT AND SULFUR OXIDE EMISSIONS 75 PERCENT FROM ALL PORT SOURCES.

AND WHEN WE ROLLED OUT THE CAAP AND BEGAN TARGETING DIFFERENT EMISSION REDUCTION OPPORTUNITIES, WE STARTED EXPLORING THOSE OPPORTUNITIES BY ASKING THE SAME SET OF QUESTIONS: WILL IT MAKE A SIGNIFICANT DIFFERENCE? HOW MUCH WILL IT COST? WILL IT BENEFIT OUR CUSTOMERS? WILL IT BENEFIT THE COMMUNITY? WHEN WILL WE SEE A RETURN, BOTH IN EMISSIONS REDUCTIONS AND IN ACTUAL DOLLARS?

WHAT WE'VE EXPERIENCED WAS BOTH THE YIN AND THE YANG. OUR FINANCIAL INVESTMENTS OFTEN MADE IMMEDIATE IMPROVEMENTS IN AIR POLLUTION.

THE RESULTS WERE CLEARLY MEASURABLE AND WE'RE CONTINUING TO SEE EMISSIONS DECLINES EVEN IN 2010, WHEN OUR CONTAINER VOLUME INCREASED 1.1 MILLION TEUs FROM THE RECESSION-RELATED DIP WE SAW IN 2009 VOLUMES.

ON THE FLIPSIDE, OUR INVESTMENTS WON'T BE QUICKLY RE-COUPED. THE PAYBACKS HAPPEN OVER TIME. FOR THE MAJOR INVESTMENTS, LITERALLY DECADES. IN MANY CASES, IT'S STILL TOO SOON TO TELL HOW LONG THE PAYBACK WILL TAKE ON SOME OF OUR MEASURES, BUT WE MADE THE INVESTMENTS BECAUSE WE KNEW THAT WE HAD TO!

SO HOW ARE WE AND THE COMPANIES WE DO BUSINESS WITH MAKING BUSINESS DECISIONS THAT BALANCE FINANCIAL GOALS WITH ENVIRONMENTAL GOALS? WELL, IT DEPENDS ON THE ULTIMATE RESULT. AND IT IS A BALANCING ACT.

ONE EXAMPLE IS OUR CLEAN TRUCK PROGRAM. LIKE MANY PORTS STILL HAVE TODAY, WE HAD A DRAYAGE FLEET OF COMPANIES THAT OPERATED BIG-RIGS THAT WERE AMONG THE OLDEST, MOST POLLUTING TRUCKS ON THE ROAD. THE DRAYAGE TRUCKS SERVING OUR PORT WERE AN AVERAGE OF 13 - 15 YEARS OLD WHEN OUR CLEAN TRUCK PROGRAM STARTED BACK IN 2008, AND THEY HAD AT LEAST ONE AND A HALF TO TWO MILLION MILES ON THEM. THE L.A. HARBOR WAS THE PLACE WHERE LONG-HAUL TRUCKS WENT TO DIE.

THIS WAS A PROBLEM BECAUSE AT THAT TIME OUR PORT COMPLEX WAS SERVED BY 12,000 TO 15,000 TRUCKS, AND THAT FLEET WAS THE LARGEST SOURCE OF LAND-SIDE POLLUTION RELATED TO PORT OPERATIONS.

SO A MAJOR COMPONENT OF OUR CLEAN TRUCK PROGRAM WAS A PROGRESSIVE BAN SCHEDULE TO PHASE OUT ALL THE OLD, HIGH-POLLUTING BIG RIGS FROM PORT OPERATIONS OVER A PERIOD THAT ENDS IN JANUARY 2012.

WE PARTIALLY FINANCED OUR CLEAN TRUCK PROGRAM WITH A DIRTY TRUCK FEE. IF YOU DIDN'T HAVE A USEPA 2007 OR NEWER EMISSIONS-COMPLIANT TRUCK, THE OWNER OF THE CARGO YOU'RE HAULING HAD TO PAY A $35-PER-TEU FEE TO COME INTO A PORT TERMINAL TO PICK UP YOUR CONTAINER.

AND, HECK, IN TERMS OF THE ECONOMY, THE FEE COULDN'T HAVE COME AT A WORSE TIME WHEN IT WAS IMPLEMENTED, JUST AS THE RECESSION WAS REALLY STARTING TO CRASH DOWN ON EVERYONE.

BUT THE TRUCKING COMPANIES AND THE CARGO OWNERS WERE PRETTY SMART. THEY RECOGNIZED RIGHT AWAY THAT THE FEE WASN'T GOING TO BE GOOD FOR THEIR BOTTOM LINE. SO THEY IMMEDIATELY STARTED MAKING PLANS TO BUY CLEAN TRUCKS AND AVOID THE FEE. SOME TRUCKING COMPANIES GOT THE CARGO OWNERS TO HELP FINANCE NEW TRUCKS.

OTHER TRUCKING COMPANIES GOT GRANTS FROM THE PORTS, OR FROM THE STATE. OTHER TRUCKING COMPANIES JUST BIT THE BULLET AND FOUND A WAY TO FINANCE THE TRUCKS THEMSELVES, BECAUSE NO MAJOR RETAILER WANTED TO BE ASSOCIATED WITH A FLEET OPERATOR USING OLD, DIRTY TRUCKS.

AS A RESULT, IN LESS THAN ONE YEAR OF FEE COLLECTION, EIGHTY-FIVE PERCENT OF THE TRUCKS SERVING THE SAN PEDRO BAY PORTS WERE 2007 MODEL YEAR OR NEWER. TODAY, THREE YEARS INTO THE PROGRAM, 97 PERCENT OF THE CONTAINER PICK-UPS AND DROP-OFFS AT OUR TERMINALS ARE MADE BY MODEL YEAR 2007 OR NEWER TRUCKS. BY JANUARY 1, 2012, THAT NUMBER WILL BE 100 PERCENT AS THE LAST OF OUR PROGRESSIVE BANS WILL GO INTO EFFECT. TRUCKS THAT DON'T MEET THESE EPA EMISSIONS STANDARDS WILL NOT BE ALLOWED TO OPERATE AT OUR TERMINALS.

(PAUSE)

YES, THE PROGRAM CAME WITH A COST. MORE THAN $200 MILLION DOLLARS WAS EXPENDED BY THE PORTS AND THE STATE OF CALIFORNIA TO HELP TRUCKING COMPANIES PURCHASE NEW BIG RIGS. BUT LET ME ADD THAT THIS IS A FRACTION OF WHAT OUR LOCAL DRAYAGE OPERATORS PUT IN ON THEIR OWN - ALMOST $800 MILLION -- KNOWING THAT THEIR INVESTMENT WOULD BE CRITICAL TO THEIR FUTURE. WE USED OUR DOLLARS TO LEVERAGE A MUCH GREATER INVESTMENT BY INDUSTRY.

WAS IT WORTH IT? FROM AN EMISSIONS AND HEALTH IMPACT STANDPOINT ... NO QUESTION ABOUT IT. NEXT TO CONTAINER SHIPS, DIESEL TRUCKS ARE THE BIGGEST SOURCE OF AIR POLLUTION WE HAVE AND THIS INITIATIVE IS MAKING A TREMENDOUS DIFFERENCE.

IS IT WORTH IT FINANCIALLY? IT WILL BE OVER TIME. AND IT CERTAINLY PAID OFF FOR THE LOCAL ECONOMY BECAUSE TRUCK DEALERS GENERATED HUNDREDS OF MILLIONS IN SALES DURING A PERIOD WHEN BIG TRUCK SALES THROUGHOUT THE REST OF THE COUNTRY HAD CRATERED DUE TO THE RECESSION.

AND FOR THE PORT - BETWEEN DECEMBER 2007 AND SEPTEMBER 2009, WE APPROVED SIX MAJOR TERMINAL AND WATERFRONT DEVELOPMENT PROJECTS. THAT'S REALLY UNHEARD OF IN OUR NECK OF THE WOODS WHERE SECURING ENTITLEMENTS FOR DEVELOPMENTS AND PROCESSING ENVIRONMENTAL IMPACT STATEMENTS IS USUALLY MEASURED BY THE GEOLOGICAL CLOCK, IN EONS.

PEOPLE ASK ME ALL THE TIME: WOULD YOU HAVE DONE IT DIFFERENTLY? IN HINDSIGHT, WE PROBABLY COULD HAVE DONE THIS PROGRAM WITHOUT FEES, JUST WITH BANS, BUT IT WOULD HAVE TAKEN A FULL 5 YEARS TO ACHIEVE THE DRAMATIC RESULTS WE SAW WITHIN THE FIRST 18 MONTHS OF THE PROGRAM.

NOW IF YOU KNOW ANYTHING ABOUT TRUCKING COMPANIES THAT WORK IN PORT DRAYAGE, YOU KNOW THAT THEY RUN LEAN. AND, FOR PLENTY OF GOOD REASONS, THEY'RE OFTEN VERY SET IN THEIR WAYS. EVERY NICKEL COUNTS. SO, WHEN WE TOLD TRUCKING COMPANIES AT THE START OF OUR TRUCK PROGRAM THAT WE WANTED TO ENCOURAGE USE OF ALTERNATIVE-FUEL VEHICLES, MORE THAN A FEW TRUCKERS TURNED THEIR NOSES UP AT US. THEY WANTED TO KNOW WHY WE WANTED TO MOVE AWAY FROM THE TRIED-AND-TRUE DIESEL ENGINE.

THE ANSWER, WE TOLD THEM, HAD TO DO WITH REDUCTION IN GREENHOUSE GASES, AND REDUCTION OF DEPENDENCE ON FOREIGN OIL. AND, OF COURSE, AN ALTERNATIVE-FUEL FLEET WOULD SUPPORT OUR CAAP GOALS.

SO, THE IDEA SLOWLY BEGAN TO PICK UP STEAM. WE HAD TO SPEND ABOUT $30 MILLION INCENTIVIZING THEM, BUT NOW WE HAVE ROUGHLY 900 LNG POWERED DRAYAGE TRUCKS OPERATING IN OUR PORTS. THAT'S 10% OF OUR DRAYAGE FLEET, AND THE LARGEST OPERATING LNG DRAYAGE FLEET IN THE UNITED STATES.

(PAUSE)

SOMETIMES THESE LNG TRUCKS GET A BAD RAP, BUT THEY ARE EQUIVALENT IN HAULING GRADES AND DISTANCES AS OUR CLEAN DIESEL TRUCKS.

DOES AN INVESTMENT IN ALTERNATIVE FUELED DRAYAGE TRUCKS MAKE FINANCIAL SENSE? WELL, THE COMPANIES THAT HAVE MADE THIS INVESTMENT NOW HAVE A TRUE COMPETITIVE ADVANTAGE. THEY'RE MARKETING THEIR LNG FLEETS TO SHIPPERS CONCERNED ABOUT THEIR GREEN HOUSE GAS FOOTPRINT. AND WHAT MAJOR SHIPPER, TRANSPORTATION OPERATOR OR TRADE GATEWAY THESE DAYS ISN'T CALCULATING THEIR CARBON FOOTPRINT?

IT'S BECOME A MAJOR SELLING POINT FOR EVERY MAJOR SERVICE PROVIDER IN THE GOODS MOVEMENT INDUSTRY.

(PAUSE)

WHILE AIR POLLUTION IN SOUTHERN CALIFORNIA HAS BEEN A HUGE ISSUE FOR US FOR MANY YEARS, IT WAS ONLY IN THE LAST FEW YEARS THAT WE DEVELOPED THE EXPERTISE AND THE TECHNOLOGY TO START CREATING THE SOLUTIONS NECESSARY TO REALLY ADDRESS THE PROBLEM.

THE SHIPS, TRUCKS, TUGS AND TRAINS WERE ALL HEAVY POLLUTERS AND UNTIL NEW TECHNOLOGIES ARRIVED, WE WERE GOING TO BE ANCHORED RIGHT WHERE WE WERE.

SO, IN 2006, THE PORTS OF L.A. AND LONG BEACH CREATED A TECHNOLOGY ADVANCEMENT PROGRAM, OR TAP, TO HELP FUND, TEST AND BRING TO MARKET THE MOST PROMISING CLEAN TECHNOLOGY CONCEPTS THAT OUR CUSTOMERS AND OTHER COMPANIES BROUGHT TO US.

THROUGH THE TAP, WE FUND THE TESTING OF INNOVATIONS THAT ULTIMATELY IMPROVE OPERATIONS, REDUCE COSTS AND ACHEIVE OUR GOAL OF AN EMISSIONS-FREE PORT. YES, SOUNDS CRAZY BUT THAT'S THE GOAL OF TAP -- AN EMISSIONS-FREE PORT. FOR EXAMPLE...

FOSS MARITIME, A WELL KNOWN TUG OPERATOR HERE ON THE US WEST COAST, CAME TO US AND SAID, "WE THINK WE CAN TAKE A LOCOMOTIVE GEN-SET ENGINE AND A FEW DOZEN BANKS OF BATTERIES AND CREATE THE WORLD'S FIRST DIESEL-ELECTRIC HYBRID TUGBOAT."

NOW WE WOULD HAVE NEVER COME UP WITH THAT IDEA ON OUR OWN, BUT THROUGH THE TAP, WE FUNDED THE PROTOTYPE AND THE FIRST "PRIUS OF THE SEAS" IS NOW HARD AT WORK EVERYDAY WITH GREAT RESULTS.

THE TUG'S ABILITY TO SHUT DOWN DURING LOW-POWER DEMAND FUNCTIONS REDUCES THE DIESEL ENGINE RUN TIME BY SEVENTY PERCENT.

WHAT'S THE BUSINESS JUSTIFICATION? IN THIS CASE, A FORTY FOUR PERCENT REDUCTION IN NITROGEN OXIDE AND PARTICULATE MATTER, UP TO THIRTY PERCENT IN FUEL SAVINGS AND ENGINES THAT WILL RUN FOR YEARS AND YEARS WITHOUT HAVING TO BE REPLACED.

ANOTHER TAP EXAMPLE ... A SOUTHERN CALIFORNIA COMPANY CALLED VYCON MANUFACTURES ADVANCED FLYWHEEL ENERGY STORAGE SYSTEMS.

WE TEAMED WITH THEM TO TEST BUILD THEIR SYSTEMS ON RUBBER-TIRED GANTRY CRANES. THE TECHNOLOGY STORES ENERGY THAT'S GENERATED DURING THE CONTAINER DROP AND SUPPLIES ENERGY DURING THE CONTAINER LIFT. ..... VERY COOL. THE RESULT IS A 25-PERCENT REDUCTION IN DIESEL PARTICULATE MATTER, 30-PERCENT REDUCTION IN NOx EMISSIONS AND 35-PERCENT SAVINGS IN FUEL CONSUMPTION.

IN ANOTHER INITIATIVE, WE FUNDED, TESTED AND ARE WORKING ON ROAD-CERTIFYING THE WORLD'S FIRST ALL-ELECTRIC HEAVY-DUTY PORT DRAYAGE TRUCK DEVELOPED BY A COMPANY CALLED BALQON.

WE DETERMINED THAT IF ALL THE DIESEL DRAYAGE VEHICLES WERE REPLACED WITH ELECTRICS, WE COULD PULL 427 TONS OF NITROGEN OXIDE OUT OF THE AIR EACH YEAR, AND 35,000 TONS OF CO-2. A HUGE REDUCTION! BUT WOULD IT BE A GOOD FINANCIAL INVESTMENT?

WELL, FACTORING IN FUEL AND MAINTENANCE, TRADITIONAL DIESEL-POWERED YARD TRACTORS COST CLOSE TO TWO DOLLARS PER MILE TO OPERATE AND HAVE A FIVE-YEAR ENGINE LIFE SPAN. THE BALQON ELECTRICS WILL COST JUST TWENTY CENTS PER MILE TO RUN AND LAST TEN TO FIFTEEN YEARS. AND DURING THIS TIME, WE'LL ENJOY TREMENDOUS FUEL SAVINGS AND NONE OF THE TRADITIONAL MAINTENANCE THAT COMES DURING THE LIFE CYCLE OF INTERNAL COMBUSTION ENGINES.

WE DID THE MATH AND MADE THE INVESTMENT. IN THE PROCESS, WE PAVED THE WAY FOR THE CREATION OF DOZENS OF NEW LOCAL "GREEN-COLLAR" JOBS BY PLACING THE FIRST FLEET ORDER OF TWENTY FIVE TRUCKS WITH A REQUIREMENT THAT BALQON OPEN ITS ASSEMBLY PLANT WITHIN LOS ANGELES CITY BOUNDARIES. IN FACT, THEY OPENED THEIR PLANT JUST THREE MILES FROM OUR PORT.

TODAY, I AM EXCITED TO REPORT THAT JUST LAST WEEK WE MET WITH ONE OF OUR DRAYAGE TRUCK OPERATORS THAT HAS NOW AGREED TO BEGIN TESTING THE TRUCK MAKING DELIVERIES TO AND FROM ONE OF THE NEARBY RAIL YARDS. WE ALSO HAVE YARD TRUCK VERSIONS OF THIS TRUCK BEING TESTED AT ONE OF OUR TERMINALS - SA RECYCLING - AND IN WAREHOUSES AT TWO OF OUR DRAYAGE TRUCK COMPANY YARDS. MORE OF THE YARD TRUCKS WILL BE TESTED AT TERMINALS THIS WINTER. IT'S PRETTY AMAZING TO THINK ABOUT, BECAUSE IT WASN'T LONG AGO THAT THIS WAS JUST A PROMISING DREAM.

AND HERE'S THE REAL SCARY PART-THERE'S NO STICK SHIFT SO I'VE DRIVEN THEM MYSELF.....JUST SO I KNOW I HAVE SOMETHING TO FALL BACK ON.

MOST RECENTLY, WE CO-FUNDED WITH THE PORT OF LONG BEACH - AGAIN, THROUGH THE TAP -- THE TESTING AND EVALUATION OF A ZERO EMISSION HYDROGEN FUEL CELL HYBRID ELECTRIC BIG-RIG AND HYBRID YARD TRUCK.

IN FACT, WE ARE REALLY STARTING TO MAKE A BIG PUSH TOWARD ZERO EMISSION VEHICLES. TWO MONTHS AGO, WE HELD A JOINT WORKSHOP WHERE THE BOARDS OF HARBOR COMMISSIONERS OF THE PORTS OF LONG BEACH AND LOS ANGELES MET TO CONSIDER A PLAN TO ESTABLISH A ROADMAP FOR DEVELOPMENT OF ZERO EMISSION TECHNOLOGIES FOR SEVERAL DIFFERENT PORT-RELATED OPERATIONS. THE COMMISSIONERS HEARD TESTIMONY ABOUT PLANS TO DEVELOP ZERO EMISSION TECHNOLOGIES FOR TRUCKS, CARGO HANDLING EQUIPMENT, AND EVEN TRAINS.

WE HOPE OUR ZERO EMISSION TECHNOLOGIES PROGRAM WILL LEAD US INTO THIS NEXT DECADE AND ALLOW US TO CONTINUE TO BE A LEADER IN AREAS SUCH AS CLIMATE CHANGE AND REDUCTION OF HEALTH RISK.

AND BY THE WAY, WHEN YOU NEXT COME TO THE PORT OF LA, YOU SHOULD CALL US AND MAKE PLANS TO TAKE A HARBOR TOUR ON OUR TOUR BOAT, THE ANGELENA II. WE'RE IN THE PROCESS OF PERFORMING THE WORLD'S FIRST RETROFIT OF A HARBOR CRAFT WITH TRADITIONAL DETROIT DEISEL INBOARD ENGINES. THOSE 40-YEAR-OLD ENGINES THAT NO LONGER MEET

CALIFORNIA EPA STANDARDS ARE BEING REPLACED BY A HYBRID PROPULSION SYSTEM USING COMPONENTS SPECIALLY DESIGNED AND MANUFACTURED IN GERMANY BY SIEMENS.

THE SYSTEM USES ASZIPODS - LIKE THE SYSTEMS PROPULSION SYSTEMS ON CRUISE SHIPS - EXCEPT THAT OUR SYSTEM WILL RUN ON BATTERIES WITH ONLY A SMALL BACK-UP DIESEL MOTOR. THE ANGELENA II RETROFIT WILL REDUCE VESSEL FUEL COSTS AND EMISSIONS BY MORE THAN 95 PERCENT AND ENERGY USAGE BY MORE THAN 50 PERCENT. WE ANTICIPATE THAT THE ANGELENA II WILL RETURN TO DUTY BY THE START OF THE NEW YEAR. IT SHOULD BE PRETTY COOL - AND QUIET. MAKE SURE YOU COME TAKE A RIDE WHEN YOU VISIT.

THAT'S A SMALL DEMONSTRATION PROJECT TO SHOW WHAT CAN BE DONE WITH HARBOR CRAFT ELSEWHERE IN THE FUTURE, BUT IT SPEAKS TO OUR BROADER GOAL OF ELECTRIFYING THE PORT WHEREVER WE CAN. WHY? BECAUSE, REGARDLESS OF YOUR POWER COSTS, OUR FUTURE -- THE FUTURE FOR ALL URBAN PORTS, IN PARTICULAR --- IS ELECTRIC AND RENEWABLE POWER.

ALONG THOSE LINES, I'D BE REMISS IF I DIDN'T TALK ABOUT OUR ALTERNATIVE MARITIME POWER OR "AMP" PROGRAM. AS SOME OF YOU MAY KNOW, IN 2004 LOS ANGELES WAS THE FIRST PORT IN THE WORLD TO CONNECT CONTAINER SHIPS TO SHORESIDE ELECTRICAL POWER.

BY PLUGGING SHIPS INTO SHORESIDE POWER AND SHUTTING DOWN THEIR DIESEL ENGINES AT BERTH, WE ELIMINATE THE RELEASE OF UP TO ONE TON OF EMISSIONS, PER SHIP, PER 24 HOURS.

ONCE WE STARTED USING THIS TECHNOLOGY, IT GAINED ACCEPTANCE. IN FACT, THE CALIFORNIA AIR RESOURCES BOARD HAS NOW PROMULGATED REGULATIONS THAT WILL REQUIRE 50 PERCENT OF CONTAINER SHIPS CALLING AT CALIFORNIA PORTS TO PLUG IN TO SHORE SIDE POWER STARTING JANUARY 1, 2014. SO, NOW, ALL PORTS IN THE STATE ARE GOING TO HAVE TO START BUILDING AMP INFRASTRUCTURE, THOUGH WE HAVE HAD A LITTLE BIT OF A HEAD START.

AND WHAT WILL BE THE ENVIRONMENTAL BENEFIT OF ALL THIS INVESTMENT? WELL, AT THE PORT OF L.A., OCEAN-GOING SHIPS ARE THE SOURCE FOR FIFTY-SIX PERCENT OF ALL DIESEL PARTICULATE MATTER, FORTY-EIGHT PERCENT OF ALL NITROGEN OXIDES AND NINETY NINE PERCENT OF ALL SULFUR OXIDES.

SO, THE OVERRIDING RATIONALE FOR THIS INVESTMENT WAS EMISSIONS -- NO QUESTION ABOUT IT.

THE OCCASSIONAL OIL AND FUEL PRICE SPIKES IN RECENT YEARS EVEN LED OUR CRUISE LINES TO PRESS US ABOUT FINISHING OUR AMP INSTALLATIONS AT THE WORLD CRUISE CENTER BECAUSE, LET'S FACE IT, CRUISE SHIPS WITH THOUSANDS OF PASSENGERS AND CREW MEMBERS PULL A LOT OF POWER. AND DEPENDING ON THEIR SOURCE OF POWER, THEY COULD BE SAVING MONEY BY AMPING.

IN TERMS OF RENEWABLE ENGERGY, WE'VE EMBARKED ON THE FIRST PHASE OF A MAJOR SOLAR POWER PROJECT THAT ULTIMATELY WILL GENERATE TEN MEGAWATTS OF ELECTRICITY THROUGH OVER ONE MILLION SQUARE FEET OF ROOFTOP SOLAR PANELS.

AS PART OF THIS EFFORT, 10 MONTHS AGO WE COMPLETED THE INSTALLATION OF 71,500 SQUARE FEET OF SOLAR PANELS ON THE ROOF OF OUR WORLD CRUISE CENTER. THE PANELS WILL GENERATE A FULL MEGAWATT OF ELECTRICITY - ENOUGH TO GENERATE NEARLY ALL THE ELECTRICAL POWER THE CRUISE CENTER NEEDS, MINUS THE SHORE-SIDE AMP POWER. ANY EXCESS POWER WILL BE FED BACK INTO THE CITY GRID.

FOR THIS PHASE, WE CALCULATE A TOTAL PAYBACK IN LESS THAN TWELVE YEARS, PERHAPS AS QUICKLY AS EIGHT. IN ADDITION, MANY OF OUR OTHER PORT TENANTS ARE ACTIVELY WORKING ON THEIR OWN SOLAR PLANS.

YOU MIGHT NOT BE ABLE TELL BY MY SUNTAN, BUT WITH OUR KIND OF WEATHER, SOLAR IS VITAL TO OUR FUTURE.

(PAUSE)

NO QUESTION ABOUT IT, I'VE BEEN THROWING AROUND SOME BIG NUMBERS. MILLIONS OF DOLLARS FOR NEW INFRASTRUCTURE, RESEARCH AND DEVELOPMENT, SUBSIDIES AND INCENTIVES. AND MANY PEOPLE WONDER WHETHER THESE COSTS WILL EVER BE RE-COUPED. BUT LET ME PUT THE ANSWER THIS WAY... WITHOUT THESE EMISSION REDUCTION INITIATIVES, OUR CAPITAL IMPROVEMENT PROGRAM WOULD STILL BE STUCK IN PARK AND WE WOULD PRESENTLY BE SPENDING NOWHERE NEAR THE MILLION DOLLARS A DAY IN CAPITAL DEVELOPMENT THAT WE ARE ROUTINELY SPENDING. OUR HANDS WOULD STILL BE TIED IN TERMS OF PROVIDING OUR CUSTOMERS WITH THE KIND OF BUSINESS CERTAINTY THEY COULD BANK THEIR FUTURE ON. WE WOULDN'T BE GENERATING THE 8,000 CONSTRUCTION JOBS OUR ACTIVE PROJECTS ARE PRESENTLY SUPPORTING, OR GENERATING ESSENTIAL TAX REVENUE FOR THE CITY, THE REGION AND THE STATE.

UNLESS WE MADE THESE INVESTMENTS, THE FUNDEMENTAL ISSUES THAT CAST A SMOGGY SHADOW ON OUR PAST WOULD CAST THE SAME DARK SHADOW ON OUR FUTURE.

SO BY MAKING THE ENVIRONMENTAL INVESTMENTS THAT ARE NECESSARY, WE HAVE ENSURED A BRIGHTER BUSINESS CERTAINTY FOR TOMORROW. AND WE'RE ALREADY SEEING THE RETURNS.

(PAUSE)

SO, I'VE SPENT A FAIR AMOUNT OF TIME TALKING ABOUT OUR COLLABORATIVE PROJECTS AT THE LOCAL AND REGIONAL LEVEL, BUT THAT'S JUST A STARTING POINT FOR THE BROADER DIALOGUE FROM WHICH WE CAN ALL BENEFIT AS WE LOOK FOR WAYS TO SHAPE GREENER, MORE SUSTAINABLE AND TRULY 21ST CENTURY PORT AND MARITIME INDUSTRIES. THOSE BROADER COLLABORATIVE FORUMS ARE REALLY THE HORIZON THAT WE ALL NEED TO SET OUR SITES ON BECAUSE, AS INDIVIDUAL PORTS, WE'RE A LINK IN AN ELABORATE GLOBAL SUPPLY CHAIN SO WE CAN'T GO TOO FAR IN TERMS OF CREATING LOCAL STANDARDS, POLICIES AND PRACTICES.

LOOKING FORWARD, WE NEED TO OPEN UP ADDITIONAL AVENUES OF OPPORTUNITY THAT ENABLE INNOVATIVE PEOPLE TO COME TO US AND SHARE WHAT THEY KNOW AND PROPOSE FORWARD-THINKING APPROACHES TO THE ENVIRONMENTAL CHALLENGES ALL OF US FACE EACH AND EVERY DAY. TO THAT END, I WANT TO WRAP UP WITH THREE EXAMPLES...

I MENTIONED EARLIER THAT MANY OF THE EMISSION-REDUCTION INITIATIVES WE EMBARKED ON CAME FROM OUR CUSTOMERS, LIKE THE HYBRID ELECTRIC FOSS TUGBOAT, FOR EXAMPLE. IT WASN'T LONG AFTER WE CREATED THE TECHNOLOGY ADVANCEMENT PROGRAM THAT THE PORT OF LOS ANGELES EMBARKED ON AN INITIATIVE WITH OUR TWO LOCAL HARBOR AREA CHAMBERS OF COMMERCE. RECOGNIZING TWO THINGS - OUR PORT IS A BIG LABORATORY FOR TESTING CLEAN TECHNOLOGY INNOVATIONS, AND WE COULD HELP GENERATE LOCAL ECONOMIC DEVELOPMENT -- WE CO-FOUNDED THE CREATION OF A TECHNOLOGY INCUBATOR CALLED PORT-TECH L.A. TO ATTRACT CLEAN TECH ENTREPRENUERS TO THE LA HARBOR AREA AND PROVIDE THEM WITH THE KIND OF SUPPORT SERVICES THAT INCUBATORS IN OTHER DISCIPLINES PROVIDE.

JUST LAST WEEK PORT TECH L.A. HOSTED ITS SECOND ANNUAL PORT-TECH EXPO, WHERE ENTREPRENEURS WERE PROVIDED WITH AN OPPORTUNITY TO SHOWCASE AND PITCH THEIR INNOVATIONS TO INVESTORS AND THE PORT TENANTS WHO CAN HELP TEST THOSE INNOVATIONS IN A REAL OPERATING ENVIRONMENT. TO DATE, FIVE COMPANIES HAVE JOINED PORT TECH LA - WITH TECHNOLOGIES SUCH AS CONVERSION OF DIESEL-POWERED HEAVY DUTY VEHICLES TO PROPANE FUEL AND DEVELOPMENT OF AN INTEGRATED DIESEL PARTICULATE FILTER WITH EXHAUST GAS RECIRCULATION FOR MARINE APPLICATIONS. ANOTHER COMPANY USES CO2 TO CULTIVATE FUEL-RICH ALGAE.

THIS INCUBATOR PROVIDES YET ANOTHER AVENUE FOR COLLABORATION WITH THE PRIVATE SECTOR AND HELPS THE MOST PROMISING CLEAN TECHNOLOGY APPLICATIONS BECOME CERTIFIED AND MARKET-AVAILABLE AS QUICKLY AS POSSIBLE.

EXAMPLE 2: BACK IN 2006, WHEN OUR AIR QUALITY ISSUES IN LOS ANGELES WERE CRASHING DOWN ON US AND WE WERE QUICKLY REALIZING WE DIDN'T HAVE ALL THE SOLUTIONS, WE LEVERAGED OUR EXISTING SISTER-PORT RELATIONSHIP WITH THE PORT OF SHANGHAI AND ALSO PARTNERED WITH MARAD AND THE USEPA TO HOST THE FIRST PACIFIC PORTS CLEAN AIR COLLABORATIVE CONFERENCE. IT WAS DESIGNED FROM THE BEGINNING AS A FORUM TO HOLD TECHNICAL DISCUSSIONS BETWEEN STAFFS FROM DIFFERENT PORTS AND SHARE BEST PRACTICES IN LOWERING PORT RELATED AIR EMISSIONS.

ABOUT 150 PARTICIPANTS FROM MORE THAN 25 PORTS AND RELATED ENTITIES FROM AROUND THE PACIFIC RIM TRAVELED TO LOS ANGELES TO ATTEND THE INAUGURAL CONFERENCE. IN 2008, THE PORT OF SHANGHAI HOSTED THE SECOND CONFERENCE, AND THOSE DISCUSSIONS FOCUSED LARGELY ON CLIMATE CHANGE.

ON FEBRUARY 22nd, 2012, WE WILL RECONVENE FOR THE THIRD TIME - ONCE AGAIN IN LOS ANGELES. THE FOCUS OF THIS CONFERENCE WILL BE TO TALK ABOUT ALL ASPECTS OF PORT SUSTAINABILITY - ECONOMIC, SOCIAL AND ENVIRONMENTAL.

LASTLY, I WANTED TO TALK ABOUT PORT COLLABORATION AT THE GLOBAL LEVEL AND SPECIFICALLY SHARE WITH YOU SOME RECENT EXCITING AND VERY IMPORTANT DISCUSSIONS FACILITATED BY THE IAPH -- THE INTERNATIONAL ASSOCIATION OF PORTS AND HARBORS. I'VE BEEN A MEMBER OF THIS ORGANIZATION FOR NEARLY 15 YEARS AND AM HONORED TO BE ITS CURRENT PRESIDENT. AND IN MY OPINION, THE BIGGEST CONTRIBUTION IAPH HAS MADE IN THE PAST DECADE IS THE CREATION OF THE WORLD PORTS CLIMATE INITIATIVE, OR WPCI.

THROUGH WPCI, FIFTY-FIVE OF THE WORLD'S KEY PORTS HAVE COMMITTED TO REDUCING THEIR GREENHOUSE GAS EMISSIONS. THESE PORTS FIRST CONVENED IN 2008 AT THE PORT OF LOS ANGELES AND IN RECENT YEARS THEY HAVE COLLABORATED TOGETHER TO CREATE AN IAPH TOOLBOX THAT PROVIDE PORTS EVERYWHERE WITH QUICK ACCESS TO THE TOOLS THEY NEED TO START THE PLANNING PROCESS FOR ADDRESSING THEIR OWN AIR QUALITY AND CLIMATE CHANGE IMPACTS. AGAIN, THE INFORMATION IS FOR ALL PORTS - YOU DON'T HAVE TO BE AN IAPH MEMBER PORT TO ACCESS IT. YOU CAN FIND IT ONLINE BY TYPING "WORLD PORTS CLIMATE INITIATIVE" INTO YOUR SEARCH ENGINE.

TODAY, THE WPCI BREAKS OUT INTO VARIOUS SUB-GROUPS, OR THEMES, INCLUDING CARBON FOOTPRINTING, LEASE AGREEMENT TEMPLATES, INTERMODAL TRANSPORT, CARGO HANDLING EQUIPMENT, ON-SHORE POWER SUPPLY, LNG FUELED VESSELS, AND DEVELOPMENT OF AN ENVIRONMENTAL SHIP INDEX. THE PORT OF LOS ANGELES LEADS THE CARBON FOOTPRINTING SUB-GROUP. LAST YEAR, OUR GROUP OF 11 PORTS FROM AROUND THE WORLD COLLABORATED TOGETHER TO CREATE AND RELEASE THE CARBON FOOTPRINTING GUIDE FOR PORTS.

THIS PAST MAY, WE FOLLOWED UP THIS EFFORT BY RELEASING AN INTERACTIVE CARBON CALCULATOR THAT PORTS EVERYWHERE CAN USE TO ESTIMATE THEIR ANNUAL GREENHOUSE GAS EMISSIONS. RECENTLY, WE WERE VERY PLEASED TO SEE THAT THE PORT OF JURONG [JER-RONG] IN SINGAPORE -- A PORT THAT HANDLES LESS THAN 1 MILLION CONTAINERS A YEAR -- RELEASED A CARBON FOOTPRINT REPORT BASED ON THE PROTOCOLS DEVELOPED BY OUR GROUP. THIS SHOWS HOW OUR COLLABORATION THROUGH THE INTERNATIONAL ASSOCIATION OF PORTS AND HARBORS HAS HELPED OTHER SMALLER PORTS RECOGNIZE AND PROACTIVELY ADDRESS THEIR GREENHOUSE GAS EMISSIONS.

ONE FINAL EXCITING INITIATIVE I WANT TO SHARE WITH YOU IS THE COLLABORATION AMONG IAPH MEMBER PORTS TO DEVELOP AN ENVIRONMENTAL SHIP INDEX. THE ENVIRONMENTAL SHIP INDEX, OR ESI FOR SHORT, IDENTIFIES SEAGOING SHIPS THAT PERFORM BETTER IN REDUCING AIR EMISSIONS THAN REQUIRED BY THE CURRENT EMISSION STANDARDS OF THE INTERNATIONAL MARITIME ORGANIZATION. THE ESI EVALUATES THE AMOUNT OF NITROGEN OXIDE AND SULPHUR OXIDE EMISSIONS THAT ARE RELEASED BY A SPECIFIC SHIP AND INCLUDES A REPORTING SCHEME THAT CALCULATES THE GREENHOUSE GAS EMISSION OF THE SHIP.

SO FAR, THE PORTS OF AMSTERDAM, ROTTERDAM, OSLO, ANTWERP AND HAMBURG ARE PARTICIPATING IN THE PROGRAM, AND BY THE END OF THIS YEAR THE PORTS OF LOS ANGELES, BREMEN, KEIL, GRONINGEN, ZEEBRUGGE, GENT AND WILLHELMSHAVEN ALL PLAN TO SIGN ON.

THE ESI IS DESIGNED TO BE USED BY PORTS TO REWARD SHIPS ACCORDING TO THEIR CLEAN FEATURES, INCLUDING BY PROVIDING ESI REGISTERED SHIPS WITH A DISCOUNT TO THE HARBOR FEES THEY WORLD NORMALLY PAY. AS OF JULY 1st, 368 SHIPS HAVE BEEN REGISTERED IN THE INDEX, WHICH IS A GOOD INDICATION TO US THAT THE ESI WILL PROMOTE THE CONSTRUCTION OF CLEANER SHIPS AND EVENTUALLY BE LEVERAGED AS A PROMOTIONAL INSTRUMENT BY SHIPPERS AND SHIP OWNERS.

IN LOS ANGELES, WE SEE AN INTERNATIONALLY ACCEPTED AND CLEARLY DEFINED "CLEAN SHIP" INDEX AS ANOTHER TOOL TO HELP INFLUENCE THE INDUSTRY. WE'RE ALSO A FIRM BELIEVER IN PROVIDING INCENTIVES AND RECOGNITION TO OUR CUSTOMERS THAT SIGN ON TO THE ESI BECAUSE THEY'RE HELPING US CONTINUE TO REDUCE OUR OVERALL EMISSIONS.

WHILE THE ESI PROVIDES A VESSEL SCORING METHOD, IAPH MEMBER PORTS ARE STILL SHAPING THE PROGRAM SO THAT THE SCORING CRITERIA AND REWARDS CAN BE DETERMINED BY INDIVIDUAL PORTS. FOR THE LOS ANGELES VERSION OF THE ESI, FOR EXAMPLE, WE WILL FOCUS ON, AMONG OTHER THINGS, ASSIGNING MORE POINTS TO SHIPPERS THAT USE LOWER SULFUR DISTILLATE FUEL AND DEPLOY SHIPS TO OUR PORT THAT ARE AMP-READY SO WE CAN PLUG THEM INTO SHORE-SIDE POWER.

SO THAT'S A LOT OF PROGRESS ON THE INTERNATIONAL FRONT. BUT IF YOU WANT ANOTHER SIGN THAT THE MARITIME INDUSTRY IS CHANGING OUR WORLD, HERE'S A BIG ONE: THIS PAST JULY, THE INTERNATIONAL MARITIME ORGANIZATION ADOPTED A NEW RULE THAT NEWLY BUILT SHIPS THAT ARE CONTRACTED AFTER JANUARY 1, 2013, MUST MEET STANDARDS FOR GREENHOUSE GAS EMISSIONS THAT PROGRESSIVELY GET TOUGHER OVER TIME.

IT'S BEEN SAID THAT THE MARITIME INDUSTRY WAS 500 YEARS OF TRADITION UNMARKED BY PROGRESS. WELL, WE CAN'T SAY THAT ANYMORE! TODAY THE ONLY INDUSTRY IN THE ENTIRE WORLD THAT HAS AN INTERNATIONAL REGULATORY SCHEME TO REGULATE GREENHOUSE GAS EMISSIONS IS THE SHIPPING INDUSTRY. THIS IS A HUGE ACCOMPLISHMENT AND SOMETHING PORTS THE WORLD OVER SHOULD TOUT TO THEIR SURROUNDING COMMUNITIES.

SO, I HOPE I'VE PROVIDED YOU WITH SOME GREAT EXAMPLES OF HOW PORTS AND INDUSTRY STAKEHOLDERS ARE COLLABORATING AT ALL LEVELS. I THINK THE OUTLOOK IS VERY ENCOURAGING, BUT WE NEED TO BE OPEN-MINDED AND UNRELENTING IN OUR QUEST FOR NEW KNOWLEDGE AND IDEAS. WE NEED TO BE OPEN TO ORGANIZATIONS, LARGE AND SMALL, THAT ARE GENERATING GREAT IDEAS AND INVENTING THE FUTURE -- BOTH INSIDE AND OUTSIDE THE MARITIME ARENA.

AND THAT'S WHY I FEEL COMFORTABLE IN URGING ALL OF US TO COMMIT TO INCREASING OUR COLLABORATION. IT'S ONLY BY DOING SO THAT WE CAN LEAD OUR INDUSTRY, OUR RESPECTIVE GOVERNMENTS, AND THE GLOBAL COMMUNITY IN THE DIRECTION THAT WE ALL NEED TO GO.

IT'S BEEN A PLEASURE TALKING TO YOU. THANK YOU SO MUCH FOR YOUR TIME AND ATTENTION.

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