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of JAXPORT is considerable; it is estimated that its business impact in Jacksonville and Duval County is in the region of $400 million a year, across the whole gamut of activities. Direct economic revenues are only part of the story; ports and their users need services ranging from construction and maintenance to accounting, banking, legal and other support services. While the Port Authority employs only around 160 people, a further 7,000 are directly tied to it and a further 43,000 jobs are indirectly affected or induced by the port. They in turn spend money on local services. “JAXPORT is supposed to be an economic engine for Jacksonville. The new terminal will increase employment in the port only marginally—about 1,600 directly and 4,000 indirectly—but MOL will be bringing in goods we haven’t had before.” It will start doing so in July, when the fi rst ship will bring a cargo to the existing facilities before moving to its new terminal in January 2009. The last such major expansion of JAXPORT’s docks was in the 1960s, when Blunt Island terminal was constructed; it’s unlikely to be so long before the next one. Come 2015, the Panama Canal capacity expansion program will have been completed, and JAXPORT is examining the implications. It is undertaking a project with the Army Corps of Engineers to study dredging the channel in order to increase draft capacity to 45–50 feet. As well as accommodating ships designed to use the new Canal, it will enable more ships to berth without waiting for the tides to be right. Jacksonville Port Authority in 2020 is likely to be an even busier, more prosperous place. May 08 www.bus-ex.com 21 use of MOL (Mitsui OSK Lines). It is scheduled for completion in December 2008, with the fi rst ships docking for business the following month. “We’re spending around $180 million on dredging the berth and building the terminal—the port behind it, the roads, storm channels, stormwater ponds, and so on. Yates Construction, from Philadelphia, Mississippi, is the major contractor,” says Murphy. “The vertical buildings, the canopies and port entrance and exit roads represent an investment of $30–$40 million; the lead contractor is Tower Group, from Fort Lauderdale. The remainder has gone toward clearing, engineering, design, and environmental impact assessment and mitigation.” On such a huge project, one would expect a degree of cost and schedule adjustment, but JAXPORT has achieved something quite amazing. “We’ve kept change orders to less than $300,000, from $200 million of contract work—a tiny deviation from budget. The credit for that goes to David Smolder, who we assigned as project manager.” One example he gives is the disposal of dredged dirt. “We had 100,000– 200,000 cubic yards of excess dirt—good quality sand, an excellent building material—sitting on the terminal. We worked with our procurement people and contractors to sell it at $1 a yard. So it didn’t cost us a dime to dispose of it.” Funding has come from what he describes as a “collage” of sources: loans and grants from the State of Florida, bond issues by JAXPORT itself, and investment from TraPac itself. “We looked under every bushel for money for this project,” Murphy says. It was well worth it, as the economic importance JacksonvillePortAuthority “We’ve kept change orders to less than $300,000, from $200 million of contract work—a tiny deviation from budget. The credit for that goes to David Smolder, who we assigned as project manager”

processing plant in Lemont, Illinois. The petroleum coke is used primarily in the making of aluminum, molybdenum is used in making steel alloys, and the rare earth mine produces lanthanides, which are used in communications equipment as well as aerospace, military applications and hybrid cars. “The merger under the Chevron brand has been a positive move, especially in terms of attracting the kind of people we like to recruit,” says Chevron Mining president and CEO Mark Smith. Most of Chevron’s coal goes to steam-powered generating plants. “One of our mines is what we call a ‘mine to mouth’ setup, where the power plant is located immediately adjacent to the mine; another mine is about an hour away from another plant by train; the third mine is a few hours away from a plant by train. We try to take advantage of the geographic niche we work in, serving our industrial and power customers 22 www.bus-ex.com May 08 Operational excellence is a cornerstone for the way Chevron Mining does business, president and CEO Mark Smith explains to Gary Toushek Chevron Mining Inc., headquartered in Englewood, Colorado, was created in 2007 as a subsidiary when parent company Chevron Corporation merged its mining operations—the former Pittsburg & Midway Coal Mining Co., which has been a subsidiary of Chevron for many years, and Molycorp Inc.—into one unit. P&M, founded in 1885, was one of the oldest continuously operating mining companies in the US, with two surface coal mines in Wyoming and New Mexico and an underground coal mine in Alabama. Molycorp, formed in 1920, operated an underground molybdenum mine in Taos County, New Mexico, and a surface rare earth mine in Mountain Pass, California. It was part of Unocal, acquired by Chevron in 2005. Also through the Unocal acquisition that year, the corporation acquired Chicago Carbon Company, which operated a petroleum coke thetalk Walking