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Two finalist teams pitch Pier 27 management as labor leaders press for commitments

Port Commission, Port of San Francisco · May 14, 2013
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Summary

Metro Cruise Services and Ports America presented competing plans to operate Pier 27's James R. Herman Cruise Terminal, emphasizing customer service and event revenues. Labor representatives pressed both teams for firm commitments on union hiring and steady jobs; staff will return with a recommendation May 28.

Metro Cruise Services and Ports America gave competing presentations May 16 to the Port of San Francisco Commission as finalists to operate the James R. Herman Cruise Terminal at Pier 27 and manage parking, conferences and special events.

Metro Cruise Services President Stefano Borzone framed Metro's pitch around long local experience, integrated stevedoring and a plan to grow the port's cruise business to as many as 120 calls per year over time while preserving high customer-satisfaction standards. Metro said it would partner with Hartman Studios for event production and ImPark for parking operations.

Ports America presented a national-operations model, citing experience at Manhattan and Los Angeles cruise terminals and proposing an integrated package with Columbia Hospitality for events and local parking partners. Ports America's presenters said they can deliver cost efficiencies in security and operations and that their proposals had come in below the panel's low-cost scenario.

Labor voices at the hearing pressed both teams for concrete, written commitments. Michael Thompson, business representative for Teamsters Local 665, and other ILWU representatives asked how many full-time, steady ILWU jobs would be created for longshore and gate operations during both cruise and event work. "We want to know what the intent is of the two operators as to how many full time or steady ILW jobs they'll be hiring," David Hill, vice president of Local 34, said during public comment.

Ports America said it maintains a labor relations group and that its LA stevedoring arrangement was interim; Metro emphasized its existing relationships with unions locally but acknowledged the need for ongoing dialogue. "We have a business development plan and we'll coordinate closely with the Port and cruise lines," Borzone said, adding that Metro conducts joint marketing with the Port and CLIA.

Commissioners asked detailed questions about stevedoring capacity, marketing roles and the financial assumptions behind pro forma scenarios. Staff said the evaluation panel scored both proposals and will provide the panel's recommendation at the Commission meeting on May 28, when commissioners could vote on a management agreement.

Next steps: staff will present the evaluation panel's recommendation and supporting score sheets at the May 28 meeting. The Commission's discussion, the public's labor concerns and the proposers' financial models will be part of that packet.

Votes and formal outcomes: there was no award or vote on the Pier 27 operator at this meeting; staff expects to present a recommendation May 28.