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Port of Los Angeles and GE Transportation Build On Early Success of Pilot with Commercial Agreements Worth Up to $12 Million
Teams scale digital pilot, adding terminals and shipping lines throughout Port to help goods move more efficiently through America’s largest container port
LOS ANGELES, Aug. 21, 2017 – (NYSE:GE) – Less than a year since launching a first-of-its kind digital solution to keep cargo flowing efficiently through America’s largest container port, the Port of Los Angeles and GE Transportation are expanding the program to include all container terminals and shipping lines at the Port.
Because of the pilot’s success, the Port of Los Angeles and GE Transportation have agreed to new commercial agreements worth up to nearly $12 million and extended their relationship for at least five years. The agreements, subject to review by the Los Angeles City Council, will be far reaching, supporting approximately nine million TEUs (20-foot shipping containers), more than 15,000 truck providers and thousands of cargo importers.
“With our container volumes at record highs, the GE digital shipping solution is critical to our future success,” said Gene Seroka, executive director of the Port of Los Angeles. “The GE portal is an investment in the long-term growth of the Port of Los Angeles and tells our stakeholders and customers that we take seriously our responsibility to find new ways to drive efficiencies and optimization. We believe this project will not only move the needle but could be a game changer.”
Based on the initial pilot results, the Port of Los Angeles anticipates efficiency gains of between eight and 12 percent as the enhanced solution is rolled out across the Port.
To inform the next phase of the collaboration, the Port of Los Angeles and GE Transportation surveyed users involved in the initial pilot. Results were overwhelmingly positive with most respondents agreeing the data in the portal is easy to understand and easy to access.
“This project has been a home run,” said John Ochs, senior director at APM Terminals, the site of the pilot project. “The Port of Los Angeles has transformed data into information that can be utilized by stakeholders to optimize their goods movement processes.”
“The Port of Los Angeles and GE Transportation have become the global leaders on trying to digitize the supply chain and bring efficiencies to the maritime industry,” said Weston LaBar, executive director of the Harbor Trucking Association. “A trucking dispatcher may visit up to 40 websites a day just to coordinate cargo movement into the port complex. Having a single portal, a single reference point, will create new levels of efficiency that we’ve been seeking for a long time.”
The survey also uncovered areas for improvement. For example, users said they would like to see more terminals and shipping lines integrated into the solution, which is reflected in the new commercial agreement. Additional areas for progression include improving the level of detail users can access about each shipment, and increasing their access to shipment data across the supply chain.
“The initial results of the pilot are resonating with partners and providing an opportunity for us to collaborate on expanding the work. It’s a major step toward exploring how a system like this could be developed and implemented for other ports in the U.S. and abroad,” said Jamie Miller, president and CEO at GE Transportation. “This is a game changing effort for business, the economy, investors and consumers.”
For ongoing updates about the partnership, visit http://getransportation.com/port-of-la.