Shipping Group Fears Long Beach Left High, Dry

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A shipping trade association is sounding its sirens over a recent string of high-level staff departures at the Port of Long Beach, alleging that meddling by port commissioners is hindering the staff’s work and harming the industry.

Just before the Memorial Day weekend, port Executive Director Christopher Lytle announced he was leaving to assume the top post at the Port of Oakland. Lytle moved into the top job at Long Beach in late 2011.

Also last month, Robert Kanter, managing director of environmental planning, announced his retirement. In addition, Sean Strawbridge, managing director of trade development and port operations, resigned.

The Pacific Merchant Shipping Association, which represents most of the major shipping companies, said these departures convey an image of dysfunction at the top levels of port administration.

The association’s president, John McLaurin, told the Business Journal last week that he believes meddling by some commissioners was a major factor behind the staff departures.

“The commission has been micromanaging staff, questioning what should otherwise be routine staff decisions,” he said. “The politics going on here has hindered the ability of port staff to function effectively. People are losing faith in the governance of the port, and that is what is causing the shippers so much concern.”

Commissioners rejected the allegations.

After Lytle’s resignation, McLaurin wrote a letter to port commission President Susan Wise, saying that many of the port’s shipping customers are growing increasingly concerned.

“Recent events, with the latest being the unexpected announcement of Chris Lytle, coupled with other key staff departures, are making us concerned about the future direction of the Port,” McLaurin wrote in the May 24 letter.

He also urged the commission to choose a successor “of similar stature and capability” to Lytle, who came to the port in 2006 from the shipping industry.

A port spokesman said no administrators would comment for this article and referred all questions to the commission.

Culture change

McLaurin said the culture of the commission changed with the appointments in summer 2011 of Richard Dines, a longshoreman, and Doug Drummond, a former Long Beach police officer who also served on the City Council. He said that the commission started to question staff decisions more frequently and order more decisions sent back for further review.

As a result, McLaurin said, administrators can’t focus on the potential loss of business the port could suffer with the upcoming opening of a widened Panama Canal.

“It takes away the order and predictability the port needs internally as it prepares to face the challenge of increased competition,” he said.

But Dines and Drummond both said last week that the shipping association’s concerns are misplaced. They both denied that the commission has been meddling excessively in staff decisions and said the recent string of departures has more to do with the port’s low salaries, which they say are below the averages at other West Coast ports.

“My feeling is that the PMSA is making a mountain of something that’s not there,” Dines said. “I’ve talked to our customers directly and they aren’t raising any red flags. We let the staff do what they do best. And as a result, we continue to be recognized as a business-friendly port and to win over customers.”

Drummond acknowledged some tensions, but said those were policy issues, not meddling. Specifically, he cited the debate over whether to build a new shipping terminal called Pier S.

“The PMSA is pushing for this, but I’m against it because we have a glut of shipping containers,” he said. “So, when I ask questions about the need for a terminal, they see it as ‘meddling.’”

Drummond said he does share the PMSA’s concern over the recent string of departures, which he attributes to the port’s salaries for top-level executives being lower than many of its peers.

“Look, when the Port of Oakland can come in and offer Chris (Lytle) $4,000 more a month than we’re paying him, it should come as no surprise that he will take that offer,” Drummond said. “We have good staff and it’s no wonder that other organizations are beating at our door, looking to hire our people. We need to look at that salary structure.”

Lytle’s annual salary at Long Beach was $275,000 and he will be earning $325,000 at Oakland. Drummond said the commission is reviewing pay issues now.

Dines said he, too, would like to raise the salaries of top-level port staff to prevent further defections. But salaries are governed by Long Beach city policy and any increases would have to be negotiated with other city officials.

In the meantime, Dines said he would push for the commission to look first at internal candidates when it considers an interim replacement for Lytle this week. Lytle himself has been reported as saying he has suggested two outside candidates to the commission.

“We have a fabulous farm team internally, so we should start there,” Dines said.

Randy Gordon, chief executive of the Long Beach Area Chamber of Commerce said it’s crucial that the commissioners focus on getting the best qualified replacement for Lytle.

“We feel that if they find the right executive director with the right qualifications, hopefully the turnover will stop,” Gordon said. “This is such a critical appointment because the port represents one out of every eight jobs in our region.”

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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