More jobs leaving California for Mexico

The election is barely over and we already have jobs leaving California, and more jobs being terminated in spite of how “wonderful” AB32 is supposed to be for crating those green jobs. The pro Prop 23 crowd has been telling everyone that that the green jobs it may create will pale in comparison to other jobs it will cost, but it’s obvious a significant number of voters decided to believe in the green fantasy and ignore fact and common sense.

Again, mere days after the election, we have a new one to tell you about that may cost hundreds of thousands of jobs in California and perhaps some elsewhere. Not those green jobs, but regular jobs, held by blue-collar workers who will soon be in the unemployment line. Truckers and longshoremen will be taking it in the shorts because their California jobs will be heading to Mexico! Ever heard of Punta Colonet, Baja California, Mexico? From their own blog please read the following……

PUNTA COLONET Mega-Port Is a GO!

Jose Rubio Soto, Mexico’s Executive Coordinator of the Punta Colonet Multimodal Project, said yesterday that planning for the mega-port 130 miles south of Ensenada is completed, and construction will begin in 2011. Bids will be accepted in the first quarter of 2011. Speaking at a Tijuana Innovation forum, he said the project is Mexico’s #1 infrastructure initiative, and that 19 companies have expressed interest in bidding on its construction and operation. Depending on the final design that is selected, he said the cost could reach five billion dollars. The port is expected to handle six million containers per year, mostly from Asia and destined for the U.S. and Canada; a new rail line will connect the mega-port with a U.S. trans-shipping center. The project involves 33,000 hectares plus 9,000 in reserve, and envisions port services areas as well as industrial, residential and business zones.

Juan Molinar, head of Mexico’s Communications and Transportation Secretariat, in an interview yesterday, confirmed that improvement in the global economic environment has convinced his government to move ahead with the long-delayed Punta Colonet project. He said the tender for construction bids will be launched soon, and the project will be “scalable”, meaning it will be built in stages, growing over several years to its ultimate capacity of six million containers/year.

Now why would they want to put a mega-port in Baja, California, Mexico? The costs are much lower and there are far fewer regulations like AB32 to deal with. People in Mexico get paid significantly less than in California. No unions, no benefits, no overpriced worker’s comp, no pollution control laws, cheap land, cheap housing and bureaucrats who can usually be taken care of with a little mordita, make it all the better.

The steamship lines, truckers, railroads and shippers won’t have to put up with AB32 and CARB  (the California Air Resources Board). They won’t need to deal with an agency that has no compunction about lying by using phony Ph.D’s and inflating diesel emissions by 340%? They won’t have to deal with regulations that require diesel trucks to not idle for more than 5 minutes and they won’t have to hook their ships up to onshore energy while in port. The first onshore power unit recently installed in San Francisco cost $5.2 million, not cheap and many more need to be installed. Something else not required in Mexico no doubt.

Thousands of truckers going to/from ports with older diesels now have to retrofit them to reduce pollution at a cost of about $20,000 per truck, or buy a newer diesel truck that meet their emissions criteria. If they don’t they’re banned from the port. The Mexican truckers won’t have to put up with that, thus keeping the costs of trucking down.

California has even gone so far as to try to tell the railroads what to do about idling trains, but were shot down in Federal court on the basis of interstate commerce law. Had they not been shot down this would have again increased costs to the railroads, which we all know will get passed on to consumers in the end, not only in California, but elsewhere in the US.

Now that we’re stuck with AB32, south of the border down Mexico way is looking pretty good right now to the steamship lines, not to mention other businesses. Soon more and more  jobs will be leaving California, you can bet on it. NAFTA will allow the Mexicans to transport it across the border to hook up with US truckers and rail, avoiding the costs associated with the California ports and regulations. I wouldn’t be surprised if the Mexicans avoid California totally and import into the US via Arizona or New Mexico.

The rich guys like Schwarzenegger, Cameron and Styer who promoted this, will merely move to greener pastures, leaving Californians stuck with the results of their vanity and greed. Those jobs that AB32 was supposed to provide will either be in another state, Mexico or offshore. While California might end up with cleaner air, the populace won’t have jobs, money, or food so it will be moot.

If you want an idea of the magnitude here are some pertinent facts about the ports of Oakland, Long Beach and Los Angeles:

  • The Port of Los Angeles 1st busiest port in the United States; 16th busiest in the world, 6th busiest in the world when combined with the neighboring Port of Long Beach
  • 80 shipping lines call at the port of LA
  • 2,179 vessels dock there per year
  • The port is responsible for 1.4 million jobs in California, 3.3 million jobs in the United States, $58.7 billion in California trade value, $240.4 billion in US trade value, $5.1 billion in state tax revenue and #21.5 billion in federal tax revenue
  • The port of Oakland claims nearly 200,000 jobs are related to cargo movement there
  • The Port of Oakland is the 4th largest container port in the United States and 20th in the world

I can’t say that Mexico will steal off of this, but money talks, green BS walks. There will probably be a lot of jobs heading south of the border forever.

More CO2 Insanity!

Source: Kill Carb

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2 Comments

Filed under AB32 California, Climate Change, Co2 Insanity, Global Warming, Government, Politics, Prop 23

2 responses to “More jobs leaving California for Mexico

  1. rogerthesurf

    You betcha.

    If you have ever studied economics or even read Milton Friedman, you will know the following activities create unemployment, just as you are describing above.

    1. Governmental Red Tape
    2. Governmental Taxes and Levies on business
    3. Poor Governmental legislation that business people see as threatening their business in the future.
    4. Minimum wages
    5. Laws or regulations which increase business costs.
    6. Taxes and levies on essential materials/supplies necessary to run the business.
    7. Governmental subsidies on projects which are not economic viable. (If they were viable they would not need the subsidy)
    8. Foolish use of the tax payers money. (for every job created by government spending, there will be more than one lost by the taxation needed to pay for the job creation.)

    Commiserations California, I reckon you have it all.
    If its any help, be assured that you are not alone in the world. As far as I can see, nowadays the only place of possible refuge that I am aware of is ironically, the Peoples Republic of China who have learnt the socialist lesson hard and well.

    Cheers

    Roger

    http://www.rogerfromnewzealand.wordpress.com

  2. sally

    That blog you quoted from (http://puntacolonetmega-port.blogspot.com) has an interesting video news report on plans for the Mexican megaport – http://puntacolonetmega-port.blogspot.com/2010/10/news-report-on-planned-punta-colonet.html. It’s going to be massive, and a real drain on U.S. longshoremen jobs.