Easily the most momentous change in our industry is the dawning of a new era of environmental awareness and responsibility. At the Port of Long Beach, we have enacted a Green Port Policy: a code of ethics for protecting air and water quality, the soil and sediments, the marine wildlife habitats and the people of our community. We will conduct business in a sustainable way that protects the economic and environmental vitality of our community now and for future generations.
We have called on our business partners to join in our green port programs. We are offering "Green Flags" to honor vessel operators that reduce speeds so that their ships pollute less. As an added incentive, we are offering more than $2 million a year in discounted dockage fees to fleet operators who comply.
We are negotiating environmental covenants into terminal leases. Two of our enlightened customers have already signed "Green Leases" - "K" Line through its International Transportation Service subsidiary, and the partnership of Matson Navigation and SSA Marine. Their investments combined with ours will cut air pollution by 90 percent from their operations.
We are reaching out to the Port of Los Angeles and collaborating on a Clean Air Action Plan, which aims to reduce air pollution from port operations by at least 45 percent within the next five years. The plan requires the best technology and practices to protect the environment. It means bringing in a new, modern cargo-handling fleet - trucks, yard-hostlers, ships and trains that meet the highest standards. Where appropriate, we are requiring cold ironing, a system where ships plug into electricity at the berth so they can shut off their polluting diesel engines.