Port's blockbuster deal with Hanjin in trouble, Korean company ready to nix Jax

[thelakelander]

In a potential blow to Jacksonville gaining a Hanjin Shipping terminal, the Korean company told the Jacksonville Port Authority in a Nov. 16 letter that a standstill on labor talks means Hanjin “will no longer be able to spend any more time or resources on this venture.”

The letter was written by G.S. Choi,  a high-ranking Hanjin executive who came to Jacksonville a year ago for the ceremony that signed an agreement between Hanjin and the Port Authority.
The agreement set Hanjin on course to build a terminal near the Dames Point bridge. It would make Jacksonville a major player in handling Asian-based cargo shipped to East Coast ports.

The terminal could be open for business in 2013, but construction is contingent on Hanjin first reaching agreement with the International Longshoremen’s Association on labor issues.
Hanjin officials did not return calls for comment Wednesday.

full article:
http://jacksonville.com/business/2009-12-09/story/ports_blockbuster_deal_with_hanjin_in_trouble

[buckethead]

Is automation a sticking point for union labor? Is it a wage issue?

I'd hate to think the Union was sticking it to Jax, the port, Korean firm and ultimately themselves by stifling innovation.

[Johnny]

That's terrible news for Jacksonville...

[mtraininjax]

Lake - You are a muckraker, when you want to be. Nancy Rubin, Jaxport spokesperson:

Port Authority spokeswoman Nancy Rubin said JaxPort and Hanjin have talked since the port received the letter. She said she could not speak on behalf of Hanjin, but she said port officials remain confident the labor issues can be resolved.

“We think this is all going to work out,” she said Wednesday.

So the union does not want to eliminate jobs and cause containers to be unloaded using automation, I say EF-Them.

[reednavy]

Nice, unions ruin everything from US Automakers to Levi's.

[CS Foltz]

Once upon a time Unions were needed! That time has passed and then some!

[civil42806]

Lake - You are a muckraker, when you want to be. Nancy Rubin, Jaxport spokesperson:

A muckraker?  All he did was post a news story.

[vicupstate]

This could just be a ploy to get union concessions. It wouldn't be the first time a shipper has done so. 

[Overstreet]

There are plenty of possiblities here. Maybe it is,

1. Ploy for barganing position with the union.

2. Excuse for not coming to JAX due to ecconomic down turn.

3. Actual deal stopping stumbling block in negociations with the union.


Often times it is not the wages it is the work rules.  I really know nothing about the port and the unions involved. I do know that back when the Barnett Tower was bidding The Auchter Company, a local construction company, was trying to keep that job a local project but was competing against several out of town non-union companies. TAC tried to negotiate with the unions to make them more competitive and the unions wouldn't go for it. The project went to Morse Diesel from out of town and Auchter went non-union.

[tufsu1]

I think the union issue is just an excuse....the reality is Hanjin may want to delay or get out purely because shipments are down due to the global recession.

[buckethead]

Doesn't seem too far outside the scope of possibility.^

[CS Foltz]

Well could be a ploy or not. Global shipping is down from the numbers that I have seen but not sure if they are down enough for Hanjin to go elsewhere! Seems a bit strange but it is possible.........after all Jaxport has an agreement but nothing is set in stone and they don't have a financial interest that I am aware off. This is strictly a Jacksonville bet on the long range outlook!

[Ocklawaha]

I think the union issue is just an excuse....the reality is Hanjin may want to delay or get out purely because shipments are down due to the global recession.

BINGO! I agree TUFSU, we could be screwed. This isn't bad news boys and girls, this has the making of a full-out thermonuclear disaster. We should do anything and everything in our power to not only keep the Hanjin deal together, but the Hamburg Sud and Maersk possibilities hot on the burner too.

OCKLAWAHA

[copperfiend]

Lake - You are a muckraker, when you want to be.

Seriously?

[vicupstate]

Maersk announced publicly that it was pulling out of the port of Charleston earlier this year.  They account for 20% of the total tonnage there.  The problem being union issues.

Immediately, the State Port Authority and the legislature got busy and got Maersk to reverse course a few months later. I think the unions made some significant concessions.

You can search on Maersk at the Charleston.net site for more details.