January 1, 2008 On the Waterfront 2008 shapes up to be perfect storm for ports By Kristopher Hanson Long Beach Press Telegram     It's here. 2008.     The year of "wild cards" economists warned about in '07.     The "perfect storm" of potential waterfront labor trouble, industry revolt and government regulation that could have long-lasting impacts on operations at local ports.     New environmental initiatives, cargo fees, labor uncertainties, a slumping economy, national elections, security regulations, legal battles, Olympic games and a few other factors point to at least some upheaval in coming months.     Their impact is unknown at this point, but here's a few issues to watch out for in 2008. Environment     Rules to curb diesel pollution adopted by port authorities in Long Beach and Los Angeles in 2007 go into effect this year, beginning with an Oct. 1 ban on all pre-1989 trucks, which make up more than 10 percent of harbor drayage.     Meanwhile, greens in 2008 will push to capitalize on recent successes with trucks by focusing attention on emission-heavy freight ships and cruise ships.     Retailers and shippers, who have had mixed success in recent years fending off regulations, will probably dig their heels in at some point and opt to challenge regulators in court.     So far, though, legal challenges have met varying degrees of success.     In September, the shipping industry's effort to overturn a state law requiring freight ships to use low-sulfur fuel within 22 miles of California's coast was blocked on appeal.     The rule, meanwhile, remains in place. Security     It took more than six years post-9/11 for America to adopt a security program for the nation's port workers, and many questions remain as to its ultimate effectiveness.     The Transportation Worker Identification Credential was rolled out in mid-December, but has loopholes that allow most people to enter a waterfront marine terminal as long as they are "escorted" by a credentialed worker.     To obtain a credential, workers have to clear a federal background check which screens for major crimes like murder, espionage and drug trafficking.     It also checks residency status, which may disallow many truck drivers who now work around the ports.     It remains unclear just how many people will be denied a card and what impact the program will have on local labor supplies.     So far, no major disruptions have been reported. Labor     Leadership representing more than 11,000 longshoremen along the West Coast will begin bargaining for a new labor contract around February.     The current pact expires July 1, and both labor reps and terminal operators are looking to avoid a repeat of 2002, when a breakdown in talks resulted in a 10-day lockout that temporarily crippled the national economy.     This time around, talks may center on healthcare issues and terminal operators' desire to implement 10-hour shifts. Fees     In December, port authorities in Long Beach and Los Angeles adopted a $35 tax on each twenty-foot-equivalent container moved in or out by diesel truck. The fee also applies to larger containers, so a 40-footer will be taxed $70.     Expected to generate more than $1.6 billion by 2012, the fee will subsidize the replacement of nearly 17,000 diesel trucks working the harbor.     Cargo owners, and not truck drivers, will pay the tax. By 2012, all trucks will need to meet federal 2007 diesel truck emission standards.     Commissioners are also expected to adopt an additional $35-per-TEU infrastructure fee. That money would go toward road, rail and bridge projects which improve the flow of goods out of the seaport.     A vote on that tax is expected by spring.     Finally, Gov. Arnold Schwarzenegger has indicated support for a $30-per-TEU tax on containers moved through the ports of Los Angeles, Long Beach and Oakland.     The statewide tax, written in a bill authored by State Sen. Alan Lowenthal, D-Long Beach, is up for consideration in coming months. It would generate $500 million annually for environmental programs and infrastructure.     Copyright 2008 Long Beach Press-Telegram