Page 27: of Maritime Logistics Professional Magazine (Mar/Apr 2017)


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That sort of relationship necessarily requires collaboration in the transcontinental rail network near downtown Los Angeles. some areas, even as both warily look to the changing landscape The series of bridges, underpasses and overpasses separate of liner shipping alliances in a post-Hanjin world, while trying freight trains from street traf? c and passenger trains, eventu- to secure the largest possible share of that intermodal traf? c. ally facilitating a more ef? cient transportation network.

Kenagy is both philosophical and at the same time, pragmatic Coopatition: Cooperation, sure, says the pragmatic, but also about what is ultimately a partnership, when the rubber meets competitive Kenagy, who also points to the bene? ts of the free the road. “My predecessor invented a term called ‘coopatition’ market system, one which produces his closest rival, a mere and I think that explains our relationship very effectively. We stone’s toss across the channel. “Yes, there are a number of obviously compete for business. I think that competition keeps ways we can work together,” he insists, but quali? es that state- both of us sharper and the entire industry and the nation ben- ment saying, “Again, the alameda corridor was a joint port e? ts from that economic competition. On the other hand, many project that we both equally bene? t from the high quality, fast issues lend themselves to cooperation & collaboration between rail access that this provides. But, we make each other better the two ports. Environmental issues come to mind. It is hard on a daily basis. I think you could apply that to any industry. for us to clean up the water without them cleaning up the water If we had only one airline, or just one shipping line – how at the same time. Air quality is another place where we can col- would the service be? Competition makes people improve laborate. We collaborate very carefully on our clean air action their game. From our perspective, our number one goal isn’t plan and our water cleanup plans.” competing with LA. Our number one goal is to improve and

The collaboration runs deeper, even into business processes. maintain our value proposition to our customers. If we do that,

In terms of supply chain optimization, both ports try to ? nd the market will take care of us.” out where a public port can drive more ef? ciency to bene? t the overall system. And then, there are security issues for two Intermodal, Environmental and Eff cient of the most important ports in North America, operating in It wasn’t too long ago that, faced with environmental issues, an edgy, perilous post-9/11 world. Close cooperation there the vast majority of businesses in any sector would implement ensures the safety of the massive freight gateway and the mil- so-called ‘green programs’ only when necessary; kicking and lions of people living in close proximity to the port(s). screaming all the way. That’s never been the case for the Port

One such cooperative project, now completed, was the all- of Long Beach, because embracing the environment is part important Alameda Corridor, a 20-mile-long rail cargo ex- and parcel of a more ef? cient port. Kenagy insists that Long pressway linking the ports of Long Beach and Los Angeles to Beach is already moving cargo very ef? ciently, and he says, 27


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