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HELLO, MY NAME IS MARIANNE VENIERIS. I AM THE EXECUTIVE
DIRECTOR OF THE CENTER FOR INTERNATIONAL TRADE AND
TRANSPORTATION AND THE DEPUTY DIRECTOR OF THE METRANS
TRANSPORTATION CENTER AT CALIFORNIA STATE UNIVERSITY,
LONG BEACH. THE VIDEO YOU ARE ABOUT TO SEE INCLUDES TWO
SCENARIOS ABOUT THE FUTURE OF GOODS MOVEMENT IN SOUTHERN
CALIFORNIA. BOTH SCENARIOS ARE FICTIONAL, HIGHLY SPECULATIVE
AND TAKE PLACE IN THE FUTURE, IN THE YEAR 2025. THESE SCENARIOS
WERE PRODUCED TO STIMULATE DISCUSSION AT CITT'S POINT
/COUNTERPOINT FORUM, HELD ON MARCH 28, 2012. THE FORUM WAS
RECORDED ON TAPE AND A WEBCAST AND CAN BE VIEWED AT
WWW.CCPE.CSULB.EDU/CITT. AGAIN, BOTH SCENARIOS ARE FICTIONAL AND
INVOLVE CREATIVE LICENSE FOR DRAMATIC EFFECT. NEITHER CITT
NOR METRANS ENDORSE EITHER OF THESE TWO VISIONS; WE PROVIDED
THEM IN THE SPIRIT OF OPENING UP A DIALOGUE. ENJOY THE VIDEO.
[ MUSIC ]
[ PAUSE ]
[ MUSIC ]
>> WELCOME TO THE SOUTHLAND NEWS NETWORK, 6 O'CLOCK REPORT
ON THIS DAY APRIL 1ST, 2025.
I'M YOUR HOST, BOB PERKINS.
NOW OUR TOP STORY TONIGHT INVOLVES THE RECORD BREAKING
NUMBERS FROM THE TWIN PORTS IN THE SAN PEDRO BAY.
BOTH THE PORT OF LOS ANGELES AND THE PORT
OF LONG BEACH ARE MOVING CONSUMER GOODS
AT A PHENOMENAL RATE.
OFFICIALS ESTIMATE THAT BETWEEN THE 2 PORTS,
NEARLY 25 MILLION TEUS,
THAT'S 25 MILLION 20-FOOT EQUIVALENT CONTAINERS WILL PASS
THROUGH THE LOCAL GOODS MOVEMENT SYSTEM THIS YEAR.
THESE VOLUMES WOULD'VE BEEN UNATTAINABLE 15 YEARS AGO.
SO LOOKING BACK AT THOSE DIFFICULT YEARS BETWEEN 2009
AND 2012, IT WAS TOUGH TO ENVISION THE FUTURE LEVEL
OF DEMAND AND THE SIMULTANEOUS ENVIRONMENTAL SUSTAINABILITY
OF THE HARBOR AS PART OF THAT BACKDROP.
THERE WAS A GENERAL ECONOMIC MALAISE
ACROSS THE NATIONAL LANDSCAPE.
IT WAS ALSO A TIME OF CONGRESSIONAL GRIDLOCK
AND MASSIVE FEDERAL AND STATE BUDGET DEFICITS.
TO MAKE MATTERS WORSE,
THERE WERE MAJOR DISAGREEMENTS REGIONALLY, LOCALLY
AND WITHIN THE COMMUNITY OVER THE ISSUES OF GROWTH, LAND USE,
AIR QUALITY, QUALITY OF LIFE,
THE SCOPE OF ADEQUATE INFRASTRUCTURE IMPROVEMENT
AND TECHNOLOGICAL UPGRADES WITH THE LABORS RELATED CONCERNS.
ALL OF THESE UNRESOLVED ISSUES THREATEN
TO ACCELERATE A MARKET SHARE DECLINE IN THE SAN PEDRO BAY
AS THE WORLD ECONOMY SUFFERED
THROUGH SEVERAL SERIOUS DOWNTURNS.
AT THAT TIME, COMPETITION FOR JOBS AND CARGO INTENSIFIED.
AS NEWER COURIERS THROUGH CANADA, MEXICO,
AND THE EXPANDED PANAMA CANAL MADE ALTERNATIVE PORTS
AND DELIVERY ROUTES FOR SHIPPERS MUCH MORE ATTRACTIVE
TO HELP ANALYZE OUR PAST AND HOW WE SUCCESSFULLY NAVIGATED THE
TRANSITION TOWARD ACHIEVING TODAY'S MILESTONE ANNOUNCEMENT.
WE HAVE WITH US ON A LIVE LINK, DR. JEREMY SANDERS [PHONETIC].
DR. SANDERS IS AN ECONOMIST AND A PROFESSOR OF TRANSPORTATION
AND URBAN PLANNING AT SOUTH BAY UNIVERSITY.
WELCOME DR. SANDERS AND THANK YOU SO MUCH FOR JOINING US.
>> THANK YOU FOR INVITING ME, IT'S A PLEASURE TO BE HERE BOB.
>> OKAY, SO LET'S CUT TO THE CHASE SIR.
GIVEN ALL THE PROBLEMS I JUST MENTION IN 2009 TO 2012.
HOW DID THIS SITUATION IN THE SAN PEDRO BAY
AND IN GOODS MOVEMENT GENERALLY FINALLY GET TURNED AROUND?
I MEAN SOME FOLKS THOUGHT WE WERE GOING TO BECOME AN
AFTER THOUGHT IN GOODS MOVEMENT
WITH DISCRETIONARY CARGO TAKING FLIGHT TO PANAMA,
CANADA, SEATTLE-TACOMA.
>> WELL FROM MY PERSPECTIVE LOOKING BACK,
I BELIEVE THE PIVOTAL MOMENT OCCURRED DURING THE ELECTION
CYCLE OF 2012.
ALL OF THE NEGATIVE ECONOMIC FACTORS YOU MENTIONED WERE
AT PLAY.
UNEMPLOYMENT WAS HOVERING AROUND 8.5 PERCENT NATIONALLY
AND BETWEEN 10 AND 12 PERCENT IN CALIFORNIA.
WHAT HAPPENED WAS THERE WAS A KIND OF GROUP EPIPHANY
THAT OCCURRED AMONG ALL STAKEHOLDERS
IN THE LOCAL GOODS MOVEMENT INDUSTRY.
THE FIRST PART OF THE EPIPHANY WAS REALIZING THAT WITH ALL
OF THE POLITICAL GRIDLOCK
AND THE MASSIVE GOVERNMENT DEBT LOAD,
THE ELECTIONS WERE NOT GOING TO SAVE US
FROM ECONOMIC AND SOCIAL DECLINE.
>> OH OKAY.
SO WHAT WAS THE SECOND PART OF THE EPIPHANY AS YOU SAY?
>> THE SECOND PART OF THE EPIPHANY WAS RECOGNIZING
THAT INDUSTRY AND COMMUNITY LEADERS HAD TO MOVE FORWARD
WITH A WORKING PLAN THAT WILL DIRECT US TOWARD A KIND
OF GREEN PROSPERITY IF YOU WILL.
GREEN CAN BE INTERPRETED IN 2 DIFFERENT WAYS,
BOTH THE ENVIRONMENTAL SUSTAINABILITY ASPECT
AND THE ABILITY TO GENERATE THE DOLLARS, GREEN BAGS.
IT TAKES TO SUPPORT INDUSTRY AND ALL OF THE DYNAMISM IT PROVIDES.
>> SO, WHAT WERE SOME OF THE OUTCOMES OF THAT EPIPHANY?
I MEAN CERTAINLY THERE MUST HAVE BEEN MANY FACTORS MOTIVATING A
CHANGE AND THE STATUS QUO.
>> OF THE MANY CHANGES THAT OCCURRED, THE PRIMARY
AND MOST IMPORTANT ONE WAS THE DESIRE
TO MEET EACH OTHER HALF WAY.
THIS SPIRIT WAS EMBODIED BY EVERY ONE INVOLVED
WITHIN THE INDUSTRY, LOCAL, GOVERNMENT AND THE COMMUNITY.
MANY WERE CERTAINLY MOTIVATED BY ENLIGHTENED SELF INTEREST
BUT NONETHELESS THE MOVEMENT TOWARD COLLABORATION WAS
THE KEY.
ONE OF THE RESULTS OF THIS COLLABORATION WAS THE CREATION
OF A JOINT POWERS REGIONAL GOODS MOVEMENT AUTHORITY KNOWN
AS THE RGMA.
>> AND, WHAT WAS THE POINT OF THIS RGMA?
>> THE PURPOSE OF THE REGIONAL GOODS MOVEMENT AUTHORITY WAS
TO PROVIDE OVERSIGHT, STRATEGIC PLANNING, DIRECTION, AND YES,
ASSESS AND COLLECT FEES AS APPROPRIATE
TO STIMULATE CHANGE AND IMPROVEMENT.
THE RGMA KEPT THE FOCUS ON 2 THINGS, EFFICIENCY
AND ENVIRONMENTAL SUSTAINABILITY.
TO SOME, IT WAS A BIG SURPRISE THAT SUSTAINABILITY
AND GROWTH COULD OCCUR SIMULTANEOUSLY.
ACTUALLY, IN CONCERT WITH ONE ANOTHER,
IN A COMPLIMENTARY FASHION.
>> OKAY, SO LET'S BREAK IT DOWN FURTHER.
ON THE ONE HAND, INDUSTRY WAS ALWAYS LOOKING FOR OPPORTUNITIES
TO GROW BUT ON THE OTHER HAND THE COMMUNITY ACTIVIST PERCEIVE
MORE TRUCKS AND TRAINS AND CONTAINERS
AS SIMPLY MORE POLLUTION AND MORE CONGESTION
AND MORE HEALTH PROBLEMS AND A REDUCED STANDARD OF LIVING.
SO, HOW DID THAT BASIC CONTRADICTION BECOME RECONCILED?
>> THERE WERE GOOD REASONS FOR BOTH SIDES TO GIVE GROUND
WHEN COMPROMISING FOR THE BENEFIT OF THE OTHER SIDE.
IN THE CASE OF INDUSTRY,
REGARDLESS OF STATE LEGISLATIVE ACTION OR CIVIL LITIGATION,
IT WAS CLEAR THAT CONGESTION AND POLLUTION HAD TO BE MITIGATED
AS MUCH AS POSSIBLE JUST TO MAKE THE TERMINALS
AND SURROUNDING AREAS FUNCTIONAL AT A HIGHER VOLUME LEVEL.
NOW, WHEN OF YOU SOLVED THE CONGESTION ISSUE,
YOU'VE ALSO STARTED TO SOLVE THE BIG PART
OF THE POLLUTION ISSUE USING ALTERNATIVE FUELS,
CLEANER TRACKS AND NATURAL GAS VEHICLES HELP TREMENDOUSLY
AS DOES IMPLEMENTING ALTERNATIVE MARINE POWERING
FOR SHIPS AT BIRTH.
ALSO AS A PRACTICAL MATTER, IT'S HARD TO WORK IN AN ENVIRONMENT
THAT DISABLES THE WORKERS
BECAUSE THE AIR QUALITY IS SO POOR.
NO ONE WANTS TO WEAR A GAS MASK JUST TO BE ABLE
TO GO TO WORK AT THE DOCKS
>> SO YOU'VE MENTIONED THE GRUELING LITIGATION
BY RESIDENTS LIVING IN THE SHADOWS OF THE BIG CRANES.
NOW MANY OF THOSE LITIGANTS HAD EXPERIENCED TRUCKS JAMMING THE
FREEWAYS DURING RUSH HOUR AND ONE RESPONSE
BY THE INDUSTRY WAS THE PURE PASS PROGRAM.
AND AS WE KNOW, EXPANDING THE LOGISTICAL OPERATIONS USUALLY
ENTAILS EXPANDING THE PHYSICAL FACILITIES
AND JUMP STARTING MORE DEVELOPMENTS
LIKE THE NEAR-DOCK RAIL TERMINALS
THAT WE NOW HAVE IN PLACE.
SO HOW DID INDUSTRY AND THE COMMUNITY COME TOGETHER IN A WAY
THAT ALLOWED FOR THIS KIND OF DEVELOPMENT AND EXPANSION
IN LIGHT OF THE EARLIER CONCERNS BY THAT SAME COMMUNITY?
>> WELL, YOU IDENTIFIED THE PURE PASS PROGRAM
WHICH SUCCESSFULLY INCENTIVIZED THE INDUSTRY
TO SPREAD OUT DELIVERY TIMES.
NOW UNDER PURE PASS, WE AVOIDED HAVING ALL OF THE TRUCKS LINING
UP BETWEEN 8 A.M. AND 5 P.M. DURING THE HEART
OF THE MORNING RUSH HOUR AND THE REST OF THE BUSINESS DAY.
IN ADDITION TO PURE PASS, THERE WERE MAJOR NEW DEVELOPMENTS
IN TECHNOLOGY THAT ENABLED THE TRUCKS
TO BECOME WHAT WE CALL SMARTER.
THIS TECHNOLOGY MADE THE TRUCKS MORE EFFICIENT IN TERMS
OF APPOINTMENTS, ARRIVAL TIMES
AND LOCATING PREFERRED NONCONGESTIVE TRAFFIC ROUTES VIA
GPS DEVICES AND THE EQUIVALENT SMART GATES AT THE TERMINALS.
>> SO WERE THERE OTHER TECHNOLOGICAL ADVANCEMENTS
THAT IMPROVED EFFICIENCY AND SUSTAINABILITY?
>> ABSOLUTELY.
IN ADDITION TO THE SMARTER TRUCKS AND CLEANER TRUCKS,
THE ELECTRIFICATION PROCESS AT THE TERMINALS
WHICH INVOLVED IMPLEMENTING COLD IRONING ELIMINATED THE USE
OF HEAVILY POLLUTING BUNKER FUEL IN SHIPS.
SHIPS AND PORT WERE ALWAYS ONE
OF THE MAJOR SOURCES OF AIR POLLUTION.
ANOTHER TECHNOLOGICAL ADVANCEMENTS SUGGESTED
BY THE RGMA, INVOLVED THAT ACROSS THE BOARD IMPLEMENTATION
OF CONSISTENT SOFTWARE STANDARDS AT THE TERMINALS.
NOW, THIS MADE THE CONTINUITY
BETWEEN TERMINALS MUCH MORE FLUID AND FLEXIBLE.
SOFTWARE CONTINUITY HELPED FACILITATE MORE EFFICIENT
MOVEMENT THROUGH THE GATES.
FOR LABOR, IT WAS AN ADVANTAGE
BECAUSE SKILLS BECAME MORE TRANSPORTABLE
FROM ONE TERMINAL TO THE NEXT.
>> SO THE STORY IS REALLY ABOUT DISCRETIONARY CARGO,
THOSE GOODS THAT ARRIVE AT A PORT BUT ARE DESTINED
FOR REGIONS BEYOND THE 400-MILE RADIUS.
THAT'S WHERE THE REAL CARGO GROWTH
AND DEMANDS OCCURS, CORRECT?
>> YES, THAT'S WHERE THE SAN PEDRO BAY HAD AN ADVANTAGE
IN TERMS OF CAPACITY AND GEOGRAPHY,
ESPECIALLY WHEN A MAJORITY OF GOODS WERE COMING FROM CHINA
AND PLACES LIKE KOREA, JAPAN, VIETNAM, TAIWAN, ET CETERA.
WHEN SOME OF THE MANUFACTURING SECTORS SHIFTED
TO EMERGING MARKET SUCH US INDIA AND LATIN AMERICA,
OUR ENHANCED CAPACITY WAS A KEY ADVANTAGE
IN HANDLING IMPORTED GOODS FROM THOSE AREAS AS WELL.
WHEREVER THE DISCRETIONARY CARGO COMES FROM,
IT'S TAKES A WELL-DEVELOPED RAIL SYSTEM THE MAKE THE INTERMODAL
DELIVERY SYSTEM WORK.
LOTS OF TRAINS REQUIRE LOTS OF GRADE SEPARATIONS
IF YOU ARE GOING TO KEEP THINGS MOVING
WITHOUT BRINGING URBAN STREETS TO A STANDSTILL.
THE ALAMEDA CORRIDOR WAS THE MODEL
FOR THE GRADE SEPARATION PROCESS WHICH CONTINUED DEVELOPING
UNDER THE RGMA'S GUIDANCE.
>> DOCTOR, I WANT TO ADDRESS THE COMMUNITY'S REACTION TO ALL
OF THESE AND HOW THE ACTIVISTS WERE ABLE TO FIND COMMON GROUND
WITH THE INDUSTRY AND ITS GROWTH.
>> WELL FOR THE COMMUNITY,
I THINK THERE WERE SEVERAL ISSUES THAT MATTERED.
THE HIGH UNEMPLOYMENT RATE HOVERING FOR SEVERAL YEARS,
IT MADE EVERYONE CONCERN, OFTEN YOU HEARD PEOPLE SAYING ANY JOB
OF IS A GOOD JOB IN A TOUGH ECONOMIC ENVIRONMENT.
IT BECAME CLEAR THAT A LOT OF THE JOBS RELATED TO THE PORTS
AND WAREHOUSING WERE NOT JUST GOOD JOBS,
THEY WERE REALLY GREAT JOBS COMPARED TO WORK
IN OTHERS SERVICE SECTORS THAT OFFERED LOW PAY.
NOW, THE RECOGNITION OCCURRED THAT THE HARBOR WAS NOT JUST
TO GENERATOR OF POLLUTION AND TRAFFIC,
BUT WAS ALSO THE LIFE BLOOD OF THE COMMUNITY
IN TERMS OF ECONOMIC ACTIVITY.
I'M SURE THAT REALIZATION WAS THE MOST IMPORTANT FACTOR.
NOW WHEN IT BECAME CLEAR
THAT REDUCING GOODS MOVEMENT MEANT ADDING MORE FRIENDS
AND NEIGHBORS TO THE UNEMPLOYMENT LINE,
SELF INTEREST BEGAN TO SWING IN FAVOR
OF COMPROMISE ON LITIGATION ISSUES.
FORECLOSURES IN ABANDONED HOUSES AND LOCAL SHOPS CLOSING
DOWN HAVE A WAY OF GETTING PEOPLES ATTENTION
AT THE NEIGHBORHOOD LEVEL.
>> BUT WHAT ABOUT ALL THE IMPORTANT HEALTH
AND LIFESTYLE ISSUES PEOPLE EXPRESSED?
>> HEALTH ISSUES WERE ALWAYS TO CONCERN
FOR THE COMMUNITY AS YOU WOULD EXPECT.
ULTIMATELY, PEOPLE TEND TO FEEL HEALTHIER AND HAVE A BETTER LIFE
WHEN THEY HAVE A JOB AS OPPOSED TO WHEN THEY'VE BEEN UNEMPLOYED.
CLEANER TRUCKS AND ALTERNATIVE FUELS ALSO MADE THE AIR CLEANER.
SO THE INDUSTRY WAS STARTING THE PASS THE ALL IMPORTANT SMELL
TEST, QUITE LITERALLY AND FIGURATIVELY.
I ALSO THINK IT BECAME MORE OBVIOUS
THAT A PRODUCTIVE THRIVING INDUSTRY GENERATES THE FUNDING
FOR MORE PROGRESSIVE TECHNOLOGIES AND SERVICES
THAT CANNOT ONLY CLEAN UP AFTER THE INDUSTRY BUT ALSO CONTRIBUTE
TO IMPROVING THE QUALITY OF LIFE IN THE URBAN SPHERE.
>> WAS THERE ANYTHING ELSE THE FEDS DID
TO HELP THE SAN PEDRO BAY IN TERMS
OF ENVIRONMENTAL MITIGATION?
>> WELL, BECAUSE LOCAL INDUSTRY AND LOCAL LEADERS TOOK CONTROL
OF MATTERS IN THE HARBOR, THE FEDS WERE ABLE
TO ASSIST THE LOCAL EFFORTS AND CAST AN APPROVING EYE
ON THE ENVIRONMENTAL PROGRAMS UNDER WAY IN THESE GREEN PORTS.
PERHAPS THE MOST HELPFUL THING DONE
AT THE FEDERAL LEVEL WAS THE DEVELOPMENT
OF A NATIONAL TRANSPORTATION STRATEGY FOR GOODS MOVEMENT.
>> SO HOW DID THIS NATIONAL TRANSPORTATION STRATEGY ENHANCE
THE GREEN PORTS MOVEMENTS?
>> SPECIFICALLY ON THE ECOLOGICAL SIDE,
THE NATIONAL TRANSPORTATION STRATEGY ADAPTED CONSISTENT
STANDARDS ACROSS THE BOARD FOR CLEAN AIR
AND ENVIRONMENTAL CONSIDERATIONS
AT ALL MARINE TERMINALS IN THE US.
NOW WITH THIS PREVISIONS AFFECTING EVERY PORT IN MORE
OR LESS EQUALLY, THE WEST COAST WAS NO LONGER PERCEIVED
AS BEING TOO GREEN THE BE BUSINESS FRIENDLY,
IT REALLY HELPED LEVEL OF PLAYING FIELD.
IN THE END, FORCING THE INDUSTRY TO UPGRADE
AND BECOME GREENER WAS TO THE ADVANTAGE
OF THE LOCAL OPERATIONS ONCE THE NATIONAL STANDARDS CAME
INTO EFFECT.
THE LA LONG BEACH HARBOR HAD ALL READY DONE A LOT
OF THE HEAVY LIFTING THAT OTHER PORTS
AROUND THE COUNTRY WERE FORCED TO DO LATER AT GREAT EXPENSE.
>> DOCTOR, IN THE FEW SECONDS WE HAVE LEFT IN THIS SEGMENT,
COULD YOU GIVE YOU US A FINAL THOUGHT TO CONSIDER
AS WE CELEBRATE THIS SUCCESS OF THE SAN PEDRO BAY.
>> BUT BEFORE I SAY GOODBYE, I JUST WANT TO SAY IN SUMMARY
THAT I'VE MADE IT SOUND LIKE ALL
OF THIS POSITIVE DEVELOPMENTS CAME ABOUT QUICKLY,
RATHER EASILY AND SMOOTHLY.
THE TRUTH IS THESE ACCOMPLISHMENTS WE'RE TALKING
ABOUT TODAY WITH 25 MILLION TEUS TRAVELING
THROUGH A GREEN ENVIRONMENTALLY FRIENDLY SYSTEM OCCURRED
AFTER A LOT OF EFFORT, A LOT OF PLANNING, COLLABORATION
AND A LOT OF JUST PLAIN HARD WORK.
IT WAS MORE THAN A DOZEN YEARS IN THE MAKING.
NOW YOU HAVE TO THINK IN TERMS OF AT LEAST A DECADE
WHEN IMPROVING YOUR GOODS MOVEMENT PROCESS.
>> OKAY, I THINK WE'LL LEAVE ON THAT NOTE.
THANK YOU AGAIN FOR JOINING US DR. SANDERS.
>> AGAIN, MY PLEASURE BOB.
>> OKAY, WE'LL BE RIGHT BACK.
[ PAUSE ]
[ MUSIC ]
>> WELCOME THE SOUTHLAND NEWS NETWORK, 6 O'CLOCK REPORT
ON THIS DAY APRIL 1, 2025.
I'M YOUR HOST, BOB PERKINS.
WE OPEN OUR NEWSCAST
WITH ANOTHER HUGE WAREHOUSE FIRE IN THE SOUTHLAND.
THIS IS THE THIRD ABANDONED WAREHOUSE TO GO
UP IN FLAMES IN THE PAST 10 DAYS.
THIS TIME, IT'S IN EASTERN LOS ANGELES COUNTY.
THE FIRST ONE WAS IN THE HARBOR AREA IN THE SECOND ONE
IN SAN BERNARDINO COUNTY.
SO FAR, NO ONE HAS COME FORWARD TO CLAIM CREDIT FOR ANY
OF THESE FIRES AND AUTHORITIES DO NOT KNOW
IF THERE IS ANY CONNECTION BETWEEN THE 3 BLAZES OTHER
THAN A POSSIBLE COPYCAT MOTIVE WITH THE LAST 2.
WHAT THESE FIRES DO HAVE
IN COMMON IS THEY ALL OCCUR AT NIGHT.
ALL 3 OF THE BUILDINGS WERE COMPLETELY EMPTY.
CONTAINING THESE INFERNOS REQUIRES SIGNIFICANT RESOURCES
FROM LOCAL FIRE FIGHTING AGENCIES
BECAUSE THE FIRES INVOLVED HUGE STRUCTURES.
THERE IS ALWAYS A THREAT THAT FLAMES WILL SPREAD
TO ADJACENT BUILDINGS.
WE INVITED A GUEST WITH AN INTERESTING PERSPECTIVE
ON THE FIRES TO JOIN US TONIGHT FOR DISCUSSION ABOUT THEM.
HE WAS DR. JEREMY SANDERS, AN ECONOMIST AND A PROFESSOR
OF TRANSPORTATION AND URBAN PLANNING STUDIES
AT SOUTH BAY UNIVERSITY.
HE IS WITH ON LIVE LINK, WELCOME DR. SANDERS AND THANK YOU
FOR JOINING US ON THE PROGRAM.
>> THANK YOU FOR HAVING ME THOUGH I WISH IT WAS
UNDER BETTER CIRCUMSTANCES.
>> SO PROFESSOR WHAT'S GOING ON OUT THERE
WITH THESE WAREHOUSE FIRES FROM YOUR PERSPECTIVE,
BOTH AS AN ECONOMIST AND AN EXPERT ON URBAN TRANSPORTATION?
>> UNFORTUNATELY BOB, I SEE THESE FIRES AS A SYMBOLIC END
OR A FLAMING OUT IF YOU WILL OF A LARGELY HUDDLED OUT INDUSTRY
IN SOUTHERN CALIFORNIA.
NOW LOOKING BACK 20 TO 25 YEARS AGO, WE HAD A THRIVING,
ROLLING GOODS MOVEMENT INDUSTRY HERE.
IT ONCE BURNT BRIGHTLY AS THE SOURCE OF ENERGY AND DYNAMISM
FOR THE LOCAL ECONOMY WHICH WAS REELING FROM A LOSS
OF MANUFACTURING JOBS.
NOW HOWEVER, BECAUSE DISCRETIONARY CARGO HAS MOVED
ON TO OTHER CHANNELS AND OTHER REGIONS,
THE INDUSTRY HAD DRAMATICALLY CONTRACTED SO THE ABIDING SOURCE
OF ENERGY, GROWTH AND OPPORTUNITY IS MELTING AWAY.
ONE AFTER ANOTHER THESE PAST 10 DAYS,
WE'VE SEEN THE ABANDONED VESTIGES
OF THAT INDUSTRY BURN TO THE CORE.
NOW IF YOU LOOK AT IT IN APOCALYPTIC TERMS,
THE METAPHORICAL ANALOGY WOULD BE SOMETHING
LIKE THE SUN BURNING OUT IN THE SKY AFTER HEATING THE EARTH
FOR MANY YEARS WITH LIFE GIVING ENERGY.
>> SIR, THAT'S QUITE A POWERFUL ANALOGY.
SO I'M WONDERING, WHAT HAVE WE LOST FROM THE CONTRACTION
OF THE GOODS MOVEMENT INDUSTRY IN SOUTHERN CALIFORNIAN
AND WHY SHOULD WE BE CONCERNED ABOUT IT?
>> I COULD WRITE A BOOK ABOUT ALL OF THE LOST OPPORTUNITIES
AND CONSEQUENCES OF THIS CONTRACTION.
IN FACT, THAT'S GOING TO BE MY NEXT PROJECT.
IN SUMMARY, WE'VE GIVEN AWAY ONE OF THE BEST OPPORTUNITIES WE HAD
TO KEEP A STRONG JOB BASE IN VIBRANT, GROWING LOCAL ECONOMY.
AS I MENTIONED A MOMENT AGO,
WHEN WE LOST THE MANUFACTURING JOBS
THAT STARTED HERE DURING WORLD WAR II AND REMAINED
UNTIL THE EARLY 1990S, 50 YEARS
OF SOLID STABLE MIDDLE-CLASS EMPLOYMENT DRIFTED AWAY
AND LEFT US WITH A MAJOR SOCIAL AND ECONOMIC DECLINE
THAT LASTED FOR ABOUT 7 YEARS.
OLD TIMERS IN THE REAL ESTATE BUSINESS REMEMBER IT WELL.
ONE OF THE INDUSTRIES THAT DEVELOPED RAPIDLY AND STEPPED
UP TO PROVIDE NEW OPPORTUNITIES
AND NEW RELATIVELY HIGH PAYING JOBS
FOR THE BLUE-COLLAR WORKING CLASS WAS THE GOODS
MOVEMENT INDUSTRY.
THERE WERE ABUNDANT JOBS FOR LONG [INAUDIBLE] IN CLERKS,
TRUCK DRIVERS, WAREHOUSE WORKERS, FREIGHT MANAGERS,
AND FREIGHT FORWARDERS.
WE ALSO HAD LOTS OF JOBS FOR RAILROAD EMPLOYEES
AND ALL MANNER OF LOGISTICS PERSONNEL.
>> SO ARE YOU SUGGESTING THESE JOBS
IN GOODS MOVEMENTS SUSTAIN THE COMMUNITY?
HOW DID THAT HAPPEN?
>> WELL WE NEED TO EMPHASIZE THE MULTIPLIER EFFECT.
ONE JOB WITH ONE PAY CHECK,
NOT ONLY UP TO SUPPORT A SINGLE FAMILY, IT ALSO A CONTRIBUTES
TO SUPPORTING OTHER JOBS AND BUSINESS IN THE COMMUNITY.
THE VAST MAJORITY OF A TYPICAL PAYCHECK IS SPENT TO COVER ITEMS
LIKE MORTGAGES, CAR PAINTS, GROCERIES, CLOTHING,
BASIC SUPPLIES AND ESSENTIALS.
WHAT'S LEFTOVER OFTEN PAYS FOR VARIOUS FORMS OF EDUCATION,
ENTERTAINMENT AND TRAVEL.
THE MULTIPLIER EFFECT KEEPS THE DOLLAR CIRCULATING THROUGHOUT
THE COMMUNITY AND PROVIDES LOCAL BUSINESSES WITH OPPORTUNITIES
TO EXPAND AND HIRE NEW EMPLOYEES.
BANKS AND CREDIT UNIONS ALSO BECOME STRONGER
WHEN PEOPLE HAVE MONEY AVAILABLE FOR NEW ACCOUNTS AND ALSO
WHEN PEOPLE HAVE THE ABILITY TO AFFORD LOANS FOR NEW PURCHASES.
>> SO WHAT HAPPENS WHEN A LOCAL INDUSTRY EXPERIENCES A
STEEP DECLINE?
>> WHEN WE HAVE AN INDUSTRY IN CONTRACTION, JOBS ARE LOST
AND THE MULTIPLIER EFFECT STARTS TO OPERATE IN REVERSE.
NOT ONLY TO THE NEWLY UNEMPLOYED PEOPLE BECOME TRAUMATIZED
AND SEE THEIR PURCHASING POWER BEGIN TO EVAPORATE,
BUT THOSE WHO ARE STILL EMPLOYED ALSO GETS SCARED
AND STARTS SCALING BACK ON THEIR SPENDING.
LOCAL BUSINESSES BEGIN TO FILL THE FRONT OF IT
AND START LAYING OFF THEIR EMPLOYEES.
EVENTUALLY, THESE LOCAL BUSINESSES CLOSE
AS THE CYCLE CONTINUES A DOWNWARD SPIRAL.
SOON, YOU HAVE FORECLOSURES IN THE NEIGHBORHOOD
AND THEN HOUSING PRICES PLUMMET, DEPRIVING PEOPLE
OF HARD EARNED EQUITY IN THEIR HOMES
AND MAKING IT DIFFICULT TO SELL PROPERTY.
>> SO THEN WHAT HAPPENS WHEN NOTHING INTERVENES
TO INTERRUPT THE DOWNWARD ECONOMIC SPIRAL?
>> THE CONSEQUENCES CAN BE DIRE.
WE LEARNED THAT IN THE GREAT DEPRESSION ALMOST 100 YEARS
AGO NOW.
LOCALLY, WHEN THE FORECLOSURES
AND BUSINESS CLOSINGS CONTINUE UNABATED, EVENTUALLY YOU END
UP WITH A LOT OF EMPTY BUILDINGS, VACANT HOUSES
AND ABANDONED WAREHOUSES.
OVERTIME, THESE EMPTY BUILDINGS CAN BECOME OUR RELIABILITY
IN A REST TO THE SAFETY AND SANCTITY OF THE COMMUNITY.
EMPTY BUILDINGS TEND TO ATTRACT MISCHIEF, VANDALISM, GRAFFITI,
THEFT AND EVENTUALLY ARSON.
THESE ARE ALL THE SYMPTOMS OF THE DECLINE.
>> WHEN YOU SAID EARLIER THAT WE GAVE AWAY THIS INDUSTRY
AND THE OPPORTUNITIES FOR GROWTH.
WHAT DID YOU MEAN BY THAT AND HOW DID WE GIVE IT AWAY?
>> IT WAS OURS TO LOOSE ABOUT 15 YEARS AGO.
GOODS MOVEMENT LIKE ANY INDUSTRY IS GOING
TO SEEK THE MOST PROFITABLE
AND MOST EFFICIENT ROOTS FOR DISTRIBUTION.
IN 2012, THE SAN PEDRO BAY WAS STILL HANDLING AS MUCH
AS 40 PERCENT OF THE GOODS THAT WERE IMPORTED TO THE US,
ABOUT 2/3 OF THOSE GOODS WERE DISCRETIONARY CARGO,
IN OTHER WORDS, BOUND FOR OTHER DESTINATIONS EAST
OF THE ROCKY MOUNTAINS.
DISCRETIONARY GOODS CAN COME INTO THE COUNTRY
AT A VARIETY OF LOCATIONS.
THE LOCAL HARBOR HAD THE CAPACITY
TO MOVE CONTAINERS QUICKLY FROM THE CARGO SHIPS
TO RAILROAD TRAINS THAT COULD TAKE IT ALL THE WAY
TO THE EAST COAST WITHIN A MATTER OF DAYS.
THE SYSTEM WORKED WELL AND WAS GENERALLY FAIRLY EFFICIENT
FOR ABOUT 35 YEARS.
>> SO WHY WAS THE SAN PEDRO BAY SO CRITICAL
TO THE NATION'S OVERALL GOODS MOVEMENT PROCESS
IN THOSE 35 YEARS?
>> BECAUSE NO OTHER FACILITY IN THE COUNTRY HAD THE CAPACITY
TO HANDLE THIS KIND OF MASSIVE VOLUME
ON THIS KIND OF GIGANTIC SCALE.
BUT THEN THINGS STARTED TO CHANGE
AND WE LOST THE ADVANTAGE.
ALSO WHEN EMERGING MANUFACTURING SECTORS DEVELOPED IN PLACES
LIKE INDIA AND LATIN AMERICA, WE MISSED THE OPPORTUNITY
TO ATTRACT THAT CARGO AND WE DIDN'T EVOLVE WITH THE TIMES.
AND WHAT'S WORSE, WE ALLOWED OURSELVES TO BE PICKED APART
BY OUR COMPETITION WHILE WE FAIL
TO SETTLE OUR OWN LOCAL CONFLICTS.
>> AND WHAT WERE THOSE CONFLICTS THAT ALLOWED OUR COMPETITORS
TO PICK AS APART AS YOU SAY?
>> THE PRIMARY CONFLICT WAS A LACK OF COLLABORATION AND A LACK
OF VISION ABOUT THE CONSEQUENCES
OF NOT COOPERATING WITH ONE ANOTHER.
NOW IF PORTS HAVE TO SPEND THEIR TIME
AND RESOURCES FIGHTING COURT BATTLES OR THREATS
OF LITIGATION, IT BECOMES DIFFICULT TO DO THE KIND
OF STRATEGIC WORK WHICH WILL DEVELOP FUTURE OPERATIONS.
ENVIRONMENTAL IMPACT PROCESSES
THAT TAKE FOREVER KEEP EVERYTHING IN LIMBO.
WHEN THE STATE LEGISLATURE IMPOSES ENVIRONMENTAL STANDARDS
THAT ARE A MAJOR IMPEDIMENT TO GROWTH OF ANY KIND
IN TRANSPORTATION, THIS ALSO SENDS A SIGNAL TO THE SHIPPERS
WHO WERE SHOPPING AROUND FOR BETTER ALTERNATIVES.
>> NOW REGARDING POLLUTION, ARE YOU SUGGESTING THAT PEOPLE HAVE
TO PUT INDUSTRY'S NEEDS AHEAD OF THEIR OWN HEALTH,
WELL-BEING AND QUALITY OF LIFE?
>> NO, NO.
I'M DEFINITELY NOT SAYING THAT.
PEOPLE SHOULD EXPECT TO LEAVE IN A RELATIVELY CLEAN ENVIRONMENT
WHERE THE QUALITY OF LIFE IS GOOD.
INDUSTRY NEEDS TO BE A CAREFUL STEWARD OF ITS RESOURCES
AND BE MINDFUL OF THE IMPACT ON THE COMMUNITY.
AT THE SAME TIME, INDUSTRY CAN'T DO EVERYTHING AT ONCE.
THE IMPORTANT THING IS TO MAKE PROGRESS
TO ADJUST THE CIRCUMSTANCES AS THEY ARISE AND TO BE LEADERS
IN THE KINDS OF INNOVATIVE CHANGE
THAT MAKE INDUSTRY SUSTAINABLE FOR EVERYONE.
THE INDUSTRY TRIED TO BE AS GREEN AS POSSIBLE
BUT IT WASN'T DOING ENOUGH OR DOING IT FAST ENOUGH FOR SOME.
>> I DON'T KNOW IF IT WILL BE COMPLETELY FAIR
TO BLAME THE INDUSTRY'S DECLINE
ON HEALTH CONCERNS BY THEIR COMMUNITY.
I MEAN SURELY IT'S MORE COMPLICATED THAN THAT.
WHAT ELSE HAPPENED THAT HASTEN THE DECLINE?
>> WELL ON ANOTHER NOTE, IT'S IMPORTANT TO TALK
ABOUT THE INTERSECTION TO FEES AND BONDS.
CONTAINER FEES ARE THE ELASTIC CONDUIT FROM CARGO MOVEMENT
TO INFRASTRUCTURE DEVELOPMENT.
WHEN CONTAINER FEES ARE ASSESSED FOR INFRASTRUCTURE IMPROVEMENT
THROUGH BOND FINANCING, SHIPPERS CAN OPEN JUSTIFY THE EXTRA
EXPENSE IF THE END RESULT IS MORE EFFICIENT MOVEMENT
TO THE PORT OF ENTRY AND THE RELATED INTERMODAL SYSTEM.
HOWEVER, WHEN LOCAL OR STATE GOVERNMENTS
AND REGULATORY AUTHORITY START
TO UTILIZE THE SHIPPER'S CONTAINERS AS CASH COWS
FOR MISCELLANEOUS REVENUE COLLECTION,
THE FREIGHT CAN TAKE FLIGHT FOR CHEAPER,
LESS BUREAUCRATIC DESTINATIONS.
NOW ONCE THAT FREIGHT LEAVES, GUESS WHAT?
THE LOCAL OR STATE AUTHORITIES THAT TOOK ON THE BOND THAT--
NOW FIND THEMSELVES UNABLE
TO FULLY SATISFY THE PAYMENT SCHEDULE.
THE FAULT ON THESE BONDS BECOMES A REAL POSSIBILITY.
>> OKAY SIR, I THINK WE'LL HAVE TO LEAVE IT ON THAT SOMBER NOTE.
WE'LL BE BACK IN A MOMENT WITH OUR NEXT STORY.
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