Container shipping company announces layoffs

By Elise Hamner, City Editor
Friday, January 11, 2008 | 2 comment(s)

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The press release went out Tuesday.

Maersk Line is laying off 2,000 to 3,000 workers. The company is the container shipping division of A.P. Moller-Maersk Group, the press release said.

The resulting news stories sent a shiver through some local folks biting nails over whether Maersk will decide to build a container shipping facility at Coos Bay. Reports indicated the huge shipping company’s decision to reorganize was due in part to the slump in U.S. trade.

Maersk said the move was “its new strategy to drive the turnaround of the business and return to sustainable profitability.” But it wasn’t just about layoffs. The division is reorganizing regional management, cutting middle managers and putting more decision-making in the hands of regional teams closer to the customers.

And still, local economic development advocates must be wondering what that might mean for talks between the Oregon International Port of Coos Bay and APM Terminals North America, Maersk’s U.S. operating division.

“I don’t think it really is related. I look at it as an adjustment to what’s happening in international trade,” said Martin Callery, the port’s director of communications and freight mobility, on Thursday.

A.P. Moller Maersk is based in Copenhagen, Denmark, and employs 110,000 people worldwide in almost 130 countries. APM Terminals, the division linked to Coos Bay, employs 19,000 people.

Apparently, talks still are a go, though Callery is mum on that.

“I just can’t say much more. We are constrained by a confidentiality agreement,” he said.

The port has hinted since October 2006 that a big container shipping company was eying Coos Bay. Last spring, state Sen. Joanne Verger announced it was Maersk sniffing around.

APM Terminals is seeking a location for a West Coast container shipping terminal to handle as many as 2 million 20-foot-long, standard-sized containers a year. For those vessels to call on Coos Bay, the shipping channel would need to be widened and deepened. The Oregon Legislature committed $60 million toward the channel project. So far, $5 million is going toward environmental studies. The other $55 million is locked in the state’s bank accounts until APM Terminals commits to the project.

That hasn’t happened yet.
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JONES wrote on Jan 14, 2008 5:48 PM:

APM MAERSK will not be coming to Coos Bay therefore NO channel deepening will be done.. This also effectively kills the Jordan Cove Energy Project as well.
With-out the deeper channel JCEP will not be able to bring in the really large(217,000 cubic meter) LNG Tankers. With only the smaller tankers being used (140,000 cubic meters)their profit margin takes a huge hit and they will lose their business case. Just do some basic math.. The pipeline carries 1 billion cubic feet per day which equals 365 billion cubic feet per year. The proposed 140,000 cubic meter tankers yeld approx. 2 billion cubic feet of natural gas per tanker ship. JCEP proposes no more than 80 shipments into our bay a year..80 billion times 2 billion equals 160 billion cubic feet per year. This means that the Jordan Cove Project will be 205 billion cubic feet SHORT when it comes to filling their pipeline.. You gotta ask yourself;;; WHATS UP HERE !!!

Thomas wrote on Jan 11, 2008 1:33 PM:

The business news paints a gloomier picture of Maersk's future. QUOTED: "CEO Kolding’s analysis of Maersk Line’s position, sent out in three letters to staff circulated early December, reveals an organisation in far worse state than any inside and outside the company had realised. He frankly admits to being “taken aback” by many of the findings, and is demanding a fundamental change in thinking, and says Maersk Line “is at a crossroads”. Their Coos Bay project is probably pretty low on the totem pole now, but if they were going to import nuclear waste for Yucca Mountain as many think, maybe this isn't such bad news for us afterall?


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