Pier PASS Operations as a Solution to Freight

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Pier. PASS & Operations as a Solution to Freight Congestion FHWA Talking Freight Seminar

Pier. PASS & Operations as a Solution to Freight Congestion FHWA Talking Freight Seminar June 21, 2006 Bruce Wargo President & CEO, Pier. PASS Inc.

Port of Long Beach Planning & Development

Port of Long Beach Planning & Development

Issues: Growth And Community • • • Air Quality – regional issues Traffic –

Issues: Growth And Community • • • Air Quality – regional issues Traffic – commute challenges Noise – neighborhoods near port Growth –community acceptance Truckers – poor turn times & service

Issues: Growth And Infrastructure • Terminals – limited land – Only 9% more land

Issues: Growth And Infrastructure • Terminals – limited land – Only 9% more land available in 5 -10 years • Freeways –time & money to expand – Could be 15 -20 years • Bridges – time and money to replace – Could be 10 -15 years to replace

Negative Legislative Action + Concerns from the Community + Lack of Productivity by terminals

Negative Legislative Action + Concerns from the Community + Lack of Productivity by terminals + Labor, trains & cargo issues of 2002 + Labor shortages & cargo of 2004 = Assembly Bill 2041 mandating night gates (subsequently withdrawn in favor of Pier. PASS industry solution)

An Industry Solution • Creation of Marine Terminal Operator Group • Consulted with transportation

An Industry Solution • Creation of Marine Terminal Operator Group • Consulted with transportation stakeholders • Cost study by consultant • Creation of Pier. PASS

Pier. PASS Off. Peak Hours Program 1. Provides a program for cargo owners &

Pier. PASS Off. Peak Hours Program 1. Provides a program for cargo owners & truckers to work evenings and weekends 2. Provides the funding for off peak hours operations through a Traffic Mitigation Fee (TMF) 3. Shifts significant amounts of cargo movements to off peak hours reducing day time traffic and congestion

How Does It Work? • All laden international cargo is assessed a Traffic Mitigation

How Does It Work? • All laden international cargo is assessed a Traffic Mitigation Fee if it moves during Peak Hours of Monday-Friday 3 AM-6 PM • TMF currently set at $50/20’ & $100/40’ • These funds go to pay for the extra Off. Peak Pier. PASS labor costs approx $160 -$180 M annually

Now. . . . Pier. PASS Off. Peak Then. . . .

Now. . . . Pier. PASS Off. Peak Then. . . .

Pier. PASS Covers All Container Terminals

Pier. PASS Covers All Container Terminals

Pier. PASS Outreach • • Industry meetings Terminal meetings Community meetings Employee meetings •

Pier. PASS Outreach • • Industry meetings Terminal meetings Community meetings Employee meetings • • Policy Makers WEB Events Media

Advisory Committee • Shipper • Consignees • Brokers • Truckers • ACTA • Legislator

Advisory Committee • Shipper • Consignees • Brokers • Truckers • ACTA • Legislator

Registration: 12, 639 Companies Nationwide • • • Shippers/Consignees 7, 589 Brokers 923 Consolidators

Registration: 12, 639 Companies Nationwide • • • Shippers/Consignees 7, 589 Brokers 923 Consolidators 57 Freight Forwarders 1, 405 Logistics Co’s 222 • • NVOCC’s Other Steamship Co’s Truck Co’s 557 1, 007 76 803

So What Happened? • • July 23, 2005 start Labor supported Pier. PASS Truckers

So What Happened? • • July 23, 2005 start Labor supported Pier. PASS Truckers showed up in spite of a lot of talk Some public complaints but overall positive Policy makers were very pleased Traffic on the 710 Freeway visibly improved Congestion at terminal gates reduced

5 Month Results August - December • Over 1. 1 M trucks on Pier.

5 Month Results August - December • Over 1. 1 M trucks on Pier. PASS Off. Peak operations • Over 10, 000 trucks per night • 33%+ of all cargo moving to Off. Peak • 40% of import cargo moving Off. Peak • 42% of export cargo moving Off. Peak • Peak season without major terminal disruption

Pier. PASS Off. Peak • • • 2. 8 Million trucks 2006 (est. )

Pier. PASS Off. Peak • • • 2. 8 Million trucks 2006 (est. ) 11, 000 -12, 000 trucks per night (2006) 33 -38% of all truck traffic to Off. Peak gates 25 -35 minutes inside terminal (average) 300+ new jobs at night Increase of cargo velocity on terminal

Payment Flow 1. Cargo owner makes online TMF payment 2. Pier. PASS receives payment,

Payment Flow 1. Cargo owner makes online TMF payment 2. Pier. PASS receives payment, issues payment notice to terminals 3. Terminals receive payment notice, release or receive cargo on Peak. Hours 4. Pier. PASS makes weekly remittance to Terminals

CARGO OWNER MAKES PAYMENT (1) (2) Pier. PASS sends release to each terminal when

CARGO OWNER MAKES PAYMENT (1) (2) Pier. PASS sends release to each terminal when claimed or paid (3) Terminal provides labor for night/weekend gates Pier. PASS sends each terminal pro rata share of collections every 1 or 2 weeks

Operational Benefits of the Off. Peak Program • Reduction of congestion at port –

Operational Benefits of the Off. Peak Program • Reduction of congestion at port – Provides more hours of operation • Reduction of congestion on the freeway – Spreads traffic out beyond commute hours • Better utilization of port assets – Adds velocity to containers and higher use of terminal equipment • Better turn times for truck drivers – More trips in work shift = more $$$ for drivers

Environmental Benefits of the Off. Peak Program • Reducing Freeway Gridlock Reduces Air Pollution

Environmental Benefits of the Off. Peak Program • Reducing Freeway Gridlock Reduces Air Pollution – Pier. PASS is reducing gridlock on the roads by spreading traffic over days and nights • Reducing a Truck’s Idle Time Reduces Air Pollution – Pier. PASS is reducing idle time at the terminal gates by reducing the number of trucks queued up to enter or leave across days and nights

In the Works • Change of Export Cargo payment process (08/06) • Pier. PASS

In the Works • Change of Export Cargo payment process (08/06) • Pier. PASS Truck. Tag (RFID) program (08/06)

Change To Export Receiving Process • Now. . . (on Peak. Hours) – Deliver

Change To Export Receiving Process • Now. . . (on Peak. Hours) – Deliver your export containers – Claim your booking numbers/containers – Pay with credit card or receive an invoice • August. . . (On Peak. Hours) – Claim your booking numbers – Deliver your containers – Pay with credit card or receive an invoice

Pier. PASS Truck. Tag Program • Issue up to 10, 000 RFID tags to

Pier. PASS Truck. Tag Program • Issue up to 10, 000 RFID tags to trucks that call the ports of LA and LB • Links to driver data base via antennas • Deliver driver/truck company data base to MTO security gates • Use RFID tag to expedite secure entry and exit of marine terminals • Will support TWIC process

Pier. PASS www. pierpass. org www. pierpass-tmf. org

Pier. PASS www. pierpass. org www. pierpass-tmf. org