Good afternoon or good morning.
Welcome to the seminar series.
I will be moderating today's seminar.
Today's topic is operations a solution to freight congestion.
Please be advised that today's seminar is being recorded.
Today we will have two speakers Bruce Wargo and Randy Butler.
Randy joined in November of 2003, his transportation experience includes 30 years of experience all the many positions.
And General Director of intermodal plan as the Technology Team Program Manager and Freight Manager of Operations his responsibility includes the ITS major initiatives,
cost/benefit methodology corporate technologies, intermodal freight technology freight information highway and a proposed cross town improvement project that brandy will be speaking about today.
Randy has a bachelor of Science and Engineering Technology.
A concentration in information systems and he is currently completing a master of transportation policy operations and logistics.
Bruce Wargo is the president of PierPASS which introduces off-peak hours programs for Los Angeles and Palm Beach.
He now heads up an effort that includes computer system development, accounting and financial systems and the customer Service Center for PierPASS operations.
Mr.Wargo has been working on the broader front since 1970, and has managed several green container and Northern and Southern California.
He has been directly involved with the design and construction of new Fargo facilities including introduction of new technology for gate and yard operation.
In addition, to contract and marketing, he is overseeing the implementation of joint ventures, construction of near the facilities and on-site assessment of foreign and domestic business opportunities.
Mr.Wargo has served on several employer labor relations divisions.
I would now like to go over a few logistical details prior to starting the seminar.
Today's seminar last 90 minutes, 60 minutes allocated for the speakers and final the demands for audience question and answer.
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Fine, I would like to remind you that this session is being recorded a file containing audio and visual portion will be posted to the web site.
The size of the file, recorded files cannot be saved your own computer.
The PowerPoint presentations will be available within the next week and I will notify all attendees of the availability of PowerPoint the recording and a transcript of the seminar.
We encourage you to direct others in your office to access the recorded seminar.
At this time for going to go ahead and start with the first presentation and today's topic is operations as a solution to a great congestion.
Our first presenter will be Mr. Randy Butler.
If we think of questions during the presentation or any of the other presentations please type them into the chat area on your screen.
Questions will be answered in the last 30 minutes of the seminar.
With that, I will turn it over to Randy.
Thank you, Jennifer.
The project that I'm right to be speaking about is referred to as the Kansas City Crosstown Improvement project and I refer to it throughout the presentation as C2.
This is a working group that is in place between government and industry that looks at new ideas and innovations that can improve productivity through technology in the intermodal workplace.
The presentation today will cover a little bit of the background, we will discuss the problem statements, some of the community and business impacts, potential solution.
What do we see as solutions and key issues.
We will talk why we chose Kansas City and I will emphasize this is potential pilot.
Some of the pieces have already been funded for this project, but the major piece is still in process of funding.
We will talk about the partners and their significance as stakeholders and finally our next step in summary.
The move to intermodal freight within the U.S. often requires the use of multiple truck modes in addition, to the primary movement by rail, ship or air.
There are numerous reasons.
Sometimes it takes advantage of the favorable cartage grades, other times it is necessitated by but the imitations of the infrastructure.
Often dictated by delivery and scheduling requirements.
This characteristic of intermodal transportation requires the interchange of intermodal traffic between modes, often in or near metropolitan areas were freight terminals are warehousing and distribution facilities are located.
During these interchanges freight traffic is often loaded on trucks or short movements through or around metropolitan areas.
Roads provide critical freight links throughout the United States, especially on long-haul trips where they offer a very competitive alternate to long-haul trucking.
There is a break in the real infrastructure that prevents an interrupted coast-to-coast service.
It's moving freight by rail from one side of the Mississippi River basin from the other such as from the port of Long Beach to the Central Ohio region typically requires an interchange via truck at one of the handful of midwest cities.
Rail to rail interchanges, there are five major east, west interchange exchange points for rail to rail traffic.
Chicago, Kansas City, Memphis, New Orleans, and St. Louis, shown on the graphic.
Chicago is the largest with 1,200 trains moving through the region daily.
This is also 20,000 daily intermodal truck moves moving through Chicago.
All six of the class one railroads interchange in Chicago and there are more than 20 really guards throughout the city.
Port to port interchanges provide critical freight links for movement importing into the United States.
Once intermodal for its richest ports in the U.S.
It must be transported to other mode before reaching final destination.
Because of majority imports to not have expansive on dock real facilities, the first leg of that journey is often a cross town movement in the arrival city.
Airport interchange provides a critical freight links for high value, time sensitive goods.
In many of the city's these goods must be transported from the airport to nearby distribution centers before they can be shipped to a final destination.
This interchange is nearly always by truck, creating a third source of cross town movements.
This figure how offers an overview of the major U.S. cargo handling points.
Why do we choose Kansas City for this potential pilot?
Chicago is the largest example of crosstown problem, they are a large number of risks associated with trying to pilot a study in such a large, complex environment.
The scope of the project would be too large and the pilot would be highly visible in a city such as Chicago any difficulties encountered in development and deployment would be magnified under such circumstances.
In addition, a pilot study in Chicago is more expensive than a small city.
Kansas City is the second largest rail hub in the U.S. and has been determined to be or reasonably in a place to attempt a pilot study.
Smaller rail hubs are also affected by across town moves and this project is applicable in Kansas City.
When the problem may not be significant, benefits will be seen in results directly transferable to other cities.
Terminals from the UP to the V and KC and MS.
These movements are anywhere from about 200 to 400 a day, depending on the current traffic volumes.
Basically, because of the number of truck moves that represent cross town rubber tire interchanges great conditions that adversely impact the transportation
not prepared the safety of the motoring public and the security of quality of life of citizens and communities through which they take place.
They add to the overall traffic congestion, increased the volume of pollutants, and in the case of empty those represent safety risks.
As freight train continues to grow these conditions will also grow.
Volume increases without significant changes in business practices, and to change volumes are expected to increase proportionally to overall freight volumes.
The volume of freight moved in the United States has been steadily increasing as predicted to continue doing so.
The volumes of goods moved of intermodal traffic has been steadily increasing since the early 1980s.
Between 1990 and 2000, U.S. international trade doubled from 900,000,000,000 to 2.2 trillion.
Any addition seizing crosstown into changes need to add congestion in already strained great infrastructure.
The Federal Highway Freight Analysis framework predicts significantly worsening congestion by the year 2020.
These images graphically depict the predicted growth in daily traffic volumes between 1998 and 2020.
Enough that it is along the Mississippi River basin and the coastal areas where many of the crosstown into changes occur.
That the most serious problems appear.
In addition, to an increase in overall to the truck volumes, Federal Highway data points to increases in truck traffic within urban areas.
The same problems exist in air quality.
Of the 35 cities we've identified as locations of major rail and port or airport hubs, 25 or classified as non attainment or one or more quality air standards by the EPA.
The frequency of trips, amount of time spent inside and at the gates of terminal facilities and the proportion of trips generated in large urban areas, air quality degradation is promulgated by across town moose.
The low protective the day of the trade operators which are less environmentally friendly.
Emptying and bobtailing those between facilities reposition equipment or pick up loads create a significant portion of overall truck traffic.
Inefficiencies' model result in additional potentially unnecessary truck trips which create note revenue for trucking companies.
Unfortunately, cost of these laws must be regained some more in the supply chain and generally built in the carriers rate schedule resulting in higher overall transportation costs.
One of the largest contributing factors in the efficient and to change operations is that the lack of mo's which results in fragmented carrier operations.
Because operations and not integrated across those all opportunities are lost and the result is that asset and shipment visibility in the mission is not accurate
and is rarely shared and separate, isolated databases promote inconsistency in data quality and quantity.
Lastly, communication between all the self optimum with a heavy reliance on human intervention.
Fax and e-mail ID are main forms of communication in many of these companies.
In addition, to being a pure cost of the system, bobtail truck moves are inherently unsafe.
Studies have shown the bobtail configuration results in the highest crash rate of any tour configuration to a study done by the University of Michigan,
1999, found that bobtail crashes occurred six times as often involving single or double configuration.
The table shows a number of the rate of crashes for each configuration.
The study concluded the bobtail configuration clearly has the most serious problem safely negotiate the highway system.
When I come bobtail and other empty truckloads in freight terminals represent a security risk.
Among other concerns because these are not linked to individual shipments, they often not subject to comprehensive security reviews.
The issue shot and the list are identified in stakeholder interviews in Kansas City recently.
The reliance and across town interchanges to move intermodal freight in many cities reduces the quality of life of citizens of those communities.
Bobtail most large number of trucks on city streets present a safety issue, increased congestion and contrary to degradation of roadway bubbles and service quality.
Under the direction of carrier productivity continues to play a and a shortage and truck drivers across the three committee.
Housing increases and the cost of goods.
These conditions and the cost satiated with building an infrastructure and the general public resistance to the acquisition of the roadway right of way means that building new roads to solve such problems is not a viable option.
Introduction to the solution.
The stakeholders of the recognized to be a sustainable, a strong business case must exist.
Namely, the various stakeholders in the interchange environment must receive a sufficient value in a solution in order to participate in it
and number of factors were considered in formulating the operating model in which CTIP might be delivered.
The CTIP project seeks to leverage technology advancements in a way that would maximize benefits to the public while minimizing the cost to both the public sector and the private sector.
Fundamental to the project consists of an integrated set of solution that is aimed at removing any commission sees
by more closely linking operations among stakeholders and in enabling transportation providers the support tools that in a book more informed operational decisions.
The next site offers additional detail on how each of these components will be used.
The CTIP will be delivered to a public, private partnership that includes participation of city government, Metropolitan Planning Organization, State Departments of Transportation and U.S.
Department of Transportation in addition, to railroad and trucking companies, steamship lines.
The intermodal exchange database, the wireless updating, the chassis utilization tracking, these portions of the solution are intended to be revenue producing enterprises.
Although they will be run for a not-for-profit organization, each component to produce enough revenue to prepare for operations maiden's costs associated with implementing the solution.
One additional piece not shown on this side that we are in process of completing is referred to as the interchange capacity management or ICM.
Modeling and simulation of different load handling practices.
As the project develops we will be including it as part of CTIP.
The CTIP project is expected to improve the efficiency and safety of the transportation at park.
As well as reduce negative environmental factors that are brought on by crosstown interchanges.
Eliminated unnecessary across town those will reduce the overall number of trucks on the road where they list is expected to reduce congestion, pollution and increase safety.
Ain't reducing bobtail most will remove the overall volume of inherently unsafe track configuration from the roadway.
Industry estimates nearly 50 percent of the bobtails could be removed or eliminate in this process of this project.
The CTIP project will provide benefits for private industry, elimination of unnecessary and the bobtail will improve carrier efficiency.
The implementation of the CTIP solution will provide increase reliability and availability of data to carriers and facility operators.
This data can be used to facilitate the improvement of overall operation deficiency.
This next table contains the results of preliminary analysis regarding the business case issues identified earlier in the presentation.
As you can see, we've attempted to address the key considerations associated with providing a substantial solution by identifying opportunities from various partners to identify returns on investment.
In addition, we've made initial conclusions regarding expendability of the solution, the role of state and local governments.
Each of these answers is subject to modification and negotiation among the partners.
The pilot study must bring together city and state government as well as private industry if the project is to be successful.
This table shows the anticipated partners and their contributions.
Each of the members of the project team which they will expand to encompass more regional and national stakeholders, represents critically important contribution to the project.
This slide reflects the primary objectives of the major partner groups for the CTIP project.
As you can see, the Transportation Security Administration is already committed nearly $700,000 for security related park which his party begun.
Additional funding, though it's not guaranteed as been solved to the DOT in joint program office.
My office has requested a modest budget for a final seven for the project and expects to make a presentation to the duty Management Council sometime within the next seven months to gain commitment for the overall project.
As discussed earlier, a successful business case can only be define what effective stakeholders are committed to the project's success.
The CTIP project constitutes a true public private partnership.
The stakeholders listed have committed to supporting CTIP, there will be critically important that only to development but the deployment and evaluation.
The institutional and business framework is currently under way and the next step for the CTIP project involves developing a concept and performing a user needs assessment.
My office has issued a test order for the support but the Federal Highway Operations contract has received proposals from the contractors.
We should have a decision in the next few weeks and expect to get started immediately on board to make the award.
The figure here shows that we consider it to be a major task that lay ahead 47 including development overall institutional and business primer.
The tactical connectivity developers and the operations and the direction of the project partners.
This reflects that CTIP will be a major multi-year undertaking.
In summary, we've discussed the crosstown into changes occur frequently and are expected to grow in number as freight volumes increase.
We've shown how these interchanges are currently the efficient and present a negativity addition see that creates safety environmental issues for the communities where they occur.
The court and made a intermodal solution -- the public, private partnership has been developed to support multiple component deployment of the cross town improvement project.
Initially deployed in the Kansas City area the solution will be repeatable, scalable and expandable such as can be implemented in other locations with minimal alterations.
Our next steps to secure the funding to the project forward and begin work involved with defining use three requirements.
Thank you, Randy.
I see we have a few questions.
But will get to those after the next presentation and the question and answer session.
I'm now going to bring up our next presentation and the next presenter is Bruce Wargo of PierPASS incorporated.
If you have questions for Bruce or Randy, please type them in.
Please send your questions to all participants so that way we can make sure everybody sees them.
Also indicate which presenter your question is directed towards.
So with that, Bruce, you can get started.
Good morning, everybody.
I'm with PierPASS as you pointed out.
PierPASS is really only operating here in Southern California and parts of Los Angeles and Long beach.
I'm here today to talk a little bit about how PierPASS as an operational process has benefited the community and improved on the congestion and issues here.
As you are all aware of we have some fairly significant growth curves ahead of us in the next few years.
These growth curves seem to be panning out.
Last year we had around 7.2% growth and this year were projected to exceed 10% growth in California.
What that translates as pretty significant, a 10% growth is approximately 1.5 TEUs.
It's a fairly daunting task to provide for capacity in Southern California, as I mentioned we do have growth that is fairly well known to be coming.
We do not have additional space that is being developed in time for this gross so the challenge in the future is going to be how to operate more efficiently
getting more volume through the same amount of acres in the same amount of infrastructure, bridges, highways and railroads.
As an example, by 2010, we should only be adding about nine or 10% more capacity on the terminal side, but there shouldn't be probably three times that in terms of TEU.
The starkly there was little attention paid by the community, but in the last five years there's been quite a bit of interest.
Due to the fact that there's been a general complying in the body of life issues here.
Air quality being number one.
It's really a state issue, but it's significant the a regional issue here.
A lot of the air quality issues are attributed to the port activity.
So there's a nexus between the growth and the perception by the community on air quality.
Additionally, traffic has been incredibly difficult, approximately 50 percent of the cargo that comes and goes out of the harbor is by trucks.
So we're talking about a significant number of trucks.
Along with the trucks comes the noise.
Poor neighborhood groups have been fairly active in addressing not only city commissions, but also port commissions on these issues.
This has kind of lead to a general question about growth in general.
Is it something that is desirous of the community?
Do they want to see the ports grow?
Or do they want to somehow restrict the growth?
It's actually a question they talk about.
Truckers, not only is a national problem but is a significant issue in Southern California.
The port turned times and the rate structure has led to quite a turnover in the trucking community.
We see a significant amount of turnover with regard to harbor to harbor haulers and that's going to be a challenge in the future not only for the port, but for the industry in general.
We do have limited land resources as I pointed out.
The ports would feel pretty free to develop properties in traditional ways.
Those ways have been challenged in court and there's a significant amount of challenge to the process these days so future land is going to be?
The freeways have been around a long time.
There are some plans to improve the freeways, but again, those plants could be 15 to 20 years away.
The ports of Los Angeles are serviced by three major bridges.
Those bridges are in need of replacement, and again, will be costing a lot money and takes a considerable amount of time to replace.
We have some real challenges with the infrastructure in terms of servicing the ports.
Again, a lot of this led to some negative legislative action from the community legislators.
There was a lot of problems not only with the community but in terms of training and longshore issues back in 2002 and 2004.
This all led to assembly build 2041, which was to mandate the use of night gates as a solution to congestion and problems in the community.
The favor of a business solution by the terminal operators which essentially is PierPASS and I will get to that in a minute.
By providing business solution to the policy makers face of the benefits and voluntarily withdrew their bill.
The terminal operators on this issue took the lead here in Southern California and formed a group to deal with this problem and required approval by the Federal Maritime Commission
in order to regain their antitrust community but essentially formed a group to deal specifically with congestion and security.
This group consulted with a lot of the stakeholders in the transportation chain here, not only where houses and trucking communities, but also cargo owners.
There was a major cost study done by a consultant, and the basis of the study was not only the cost of the program as proposed, but also the anticipation of the benefits in terms of traffic mitigation.
That group created a company called PierPASS in order to affect actual operation.
The group of terminal operators sits on a large board and PierPASS essentially works for the board of terminal operators.
PierPASS off-peak hours program that were engaged in here, does provide a way for cargo owners and truckers to work during these off-peak hours, thus avoiding a lot of the daytime congestion.
It does have some benefits will get into it in a minute.
The program also provides a funding mechanism, this program is completely funded by the cargo owners.
They pay a fee for the use of the daytime gates which essentially subsidizes the nighttime operations.
The word goal was to shift a significant amount of cargo from days to nights, that was essentially our objective.
We were very surprised at the success of our first year.
We had originally estimated at approximately 20 percent of the traffic would be moved to nights, but within the first five months, the number was 33%.
So very successful program.
People want to avoid the fee, but enough people were coming days to continue the funding of the program.
This program this is a feat against all the international cargo that import and export cargo moving through the ports of Los Angeles and Long beach.
The peak hours are currently defined as 3:00a.m. to 6:00 p.m. Monday through Friday.
So if your import containers or export containers move in or out of the terminals that are subject to the fee.
The current fee is $50 for a 20-foot container and $100 for a 40-foot container.
The collection of those fees goes to PierPASS, and then PierPASS distributes all of those collections to the marine terminal operators to offset their cost for the night time gates.
Those annual costs are approximately 160 to $180 million.
This is significant amount of cost and expense, but lane that expense across all the cargo that's at succumbing to Long Beach and Los Angeles during the daytime hours does seem to be a bearable cost.
If you look at our calendar, it looks something like this.
You come in Monday through Friday, 3:00 a.m. to 6:00 p.m., the green boxes are the PierPASS gates there are actually a thousand and those gates essentially are free.
The great blocks we call them wild cards but terminal operators are free to buy gates on those days or nights at their own discretion but they are not part of the program.
It had a significant change in the traffic patterns here in Southern California.
The picture and the lower left was a routine event, price a day, both directions.
You can imagine the difficulties that would pose on a major freeway.
This picture is probably about five miles from the port, so on a given day those trucks would be essentially closing down the 710 freeway from Los Angeles into Long Beach in to the port of Los Angeles.
Now that PierPASS is in effect, that traffic has significantly changed.
You see a lot more activity at night.
That's changed the traffic patterns on days significantly, it seems to have garnered a lot of success from the community.
A key factor at PierPASS in the off-peak hours program is the fact that it applies to all the container cargo terminals.
So we really don't have anybody that operating outside of the program.
That's an important item because if we didn't hit would essentially create a competitive environment and essentially and eventually he wrote the program.
So all terminals big and small are part of PierPASS.
There's been a significant amount of time and money in out bridge.
It spent a lot of time not only in industry means but community meetings getting people to understand the concept, the reasons that we need to charge these fees, the benefits of the program.
We spent a lot of money and time on meeting with policy makers, web defense, and quite frankly, although expensive, it had a tremendous payoff.
We were pleasantly surprised that the amount of support received from not only the community but policy-makers in general, locally and throughout the state.
We don't operate necessarily in a vacuum.
We get a lot of input from other stakeholders on an ongoing basis.
We need approximately three times a year not only with shippers but other interested parties, but truckers, legislators and brokers.
Act, as you may or may not know is the Alameda Corridor Transportation Authority they pay a significant role in moving goods here in Southern California so that are a part of our advisory committee.
We essentially give them a lot of opportunity for feedback, we bounce space ideas off of them, process changes.
They find that a very valuable access to PierPASS.
As you can imagine, the Internet plays a very large part in our program.
Essentially, it's the only way he can pay the fees.
We have a pretty robust system not only for the process behind PierPASS, but also the internet.
Again, all the activity that the brokers and cargo owners are using through the Internet.
We don't take phone calls, faxes, blank checks, we don't do any of that.
That's been very cost effective for our program.
We did have a very short time line on developing this program.
There was a lot of pressure from policy makers in the community to make it happen before the peak season in 2005.
We did ramp up very quickly and today we have over 12,000 companies nationwide that are registered with PierPASS and the majority of them play an active role.
A lot of them are in just to get the information, but essentially, the shippers, freight-forward brokers are playing a large roll.
We do have about 1,000 accounts that are billable accounts.
We do turn out a lot of invoices to those shippers and consignees and brokers.
I wasn't the only one that had a lot of concern about this thing working in the beginning.
Back in July of 2005, we did start, aside from all of the concerns, the waterfront labor did support the program.
In spite of a lot of negative concerns from the trucking community about the wages and their own set of problems, truckers did show up and have continued to show up.
Policy-makers have been very supportive of our program.
They view this as an effective example of how private industry can come up with a solution to a community problem.
Again, the traffic on the freeway system is visibly improved.
I get calls routinely from people I don't know telling me how much it has changed.
It's been a very visible, positive impact in the community.
Additionally, the congestion at the terminal gates have been reduced.
Hasn't completely gone away because we are a busy port, but we've taken a very large chunk of the daytime traffic and moved it to nights and it has been proved the key to congestion.
In the five months of August and December, we moved 1.1 million trucks to the off-peak program.
That's a very of trucks in such a short amount of time.
We routinely last year saw 10,000 trucks a night.
I would like to always point out is the line 10,000 trucks up bumper to bumper, that would stretch from Long Beach to San Diego.
That's every night.
It's been a significant change in the traffic patterns and the weight trucks operate.
33 percent of all the cargo is moving to the off-peak hours and on the import side, about 40%.
That was a little bit more than we had actually anticipated in terms of the import cargo and the export cargo obviously, has enjoyed a lot of the night time activity.
But you still get a lot of empty activity, chassis activity intermodal activity on both shifts.
We had a peak season last year without a major terminal disruption.
The two years prior to 2005, we had significant problems with our peak season our terminal operations.
I'm sure you all read about not only the congestion but the railroad and labor issues be had.
Last year was a very good year for ports of Long Beach and Los Angeles.
Very little congested.
Hopefully, in 2006, we are going to continue this trend.
We're going to do close to three million trucks on these off-peak gates appeared I have seen the night time traffic picked up a bit.
Pretty much consistent with the general increase in traffic, so that shouldn't be surprising, but it is nice to see that.
The turn time within the terminals has been fairly consistent, about 25 to 35 minutes within the terminal.
There is to time outside, but the time inside the gates is 25 to 35 minutes on average.
We did create an awful lot of new jobs at night.
The ongoing terminal operations because they are full-service at night instead of the it services,
we have a lot of city jobs at night for these dates and of course that's a lot of the reason there's a longshoreman that do like the program.
We have had a positive effect on the velocity of cargo through the terminals, by doing this, the terminals have actually created some capacity going forward, they will be able to use as volumes increase.
All good news and hopefully 2006, will be another year or have no issues.
Regarding the payment flow, PierPASS is essentially a program all about collecting money.
We do spend a lot of time counting in and making distributions to our members.
Again, the payment is all done on line.
We receive those payments, and when we do, we send those notices to the terminals and the terminal is free to receive or to deliver cargo.
We do make that weekly reluctance to the terminal operators.
The cash flow is essentially important to them because they do have the labor and they do make those payrolls every week.
In a very untraditional way in our business, the cash flow is important and our terms are net term credit accounts and of course credit card payments -- that's been a very important aspect at PierPASS, cash flow.
I've represented that kind of cash flow here.
Graphically, it's very simple.
Using the internet so many people are used to using the Internet for merchandise, purchases and for payment of bills that just seemed the obvious way to go
and has really proved to be essentially the cornerstone of our process and the success our cash flow to the terminal operators, but we're very happy about that.
As I pointed out to the operational benefits we have had a positive affect on congestion.
We have improved the freeway congestion that is the genesis of the complaints from the community.
The port operators are actually getting better use of their assets not only their cranes and trucks, but their computer systems and the facilities in general.
Additionally, the truckers have had a better experience.
They're making more trips per shift, essentially making more money.
That's been a benefit for them that we had hoped for, not necessarily to be part of the program, but we realized a trucker makes better turns they make more money.
That has had a positive effect.
Environmentally speaking, we have made the comments that reducing gridlock on the freeways and highways does reduce air pollution.
As you can imagine the truck queues at the ports in the mornings it was incredibly long those trucks were idle for hours and hours.
That's changed and we've obviously had a positive impact on the air pollution from a truck idling perspective.
All good news.
Again adding to some of the benefits of the program that was really an operational program intended to reduce congestion getting the side benefit of reducing environmental pollution.
We're making changes to the program.
We are going to be changing the export cargo payment process in August.
Exporters will be required to claim their booking numbers prior to delivery of containers during peak hours.
Off-peak hours are free.
Keeping the concept of the program to move up more cargo at nights.
We are going to be launching shortly a RFID program that take the trucks.
We distributed over 10,000 tags to the trucking community to attach to their trucks.
We will be using those tags to monitor the access and exit the trucks from the marine terminal.
There will be some additional benefits to tracking trucks to the new terminal.
Again, we are changing those hours for export process.
During the peak hours, export containers, are being received and exporters are going back in after the fact in making payments.
We are going to change that in August and get them to step up and make their bookings prior to delivery during peak hours and that will have a positive impact on our billing process and reduce our costs.
The Truck Tag Program is really going to be an interesting program.
It has the full support of the Coast Guard and the Department of Homeland Security.
We will be tracking trucks that come and go and it will be interesting first step toward the clip process that seems to be coming down the road for all the ports in America.
We will integrate the requirements into our Truck Tech Program.
It should not be as disruptive.
We're pretty excited about that.
That's my presentation.
Thank you very much.
Thank you, Bruce.
Before we get into the question and answer session, I'm about to bring up a slide on the Freight Pier to Pier program.
This side will provide a little more information on that.
It will also have the web address at which you can go to, to obtain more information.
It's a great new program.
A way for to learn from each other and share information so I encourage you to go to the website and learn more about that program.
I'm going to start with questions for Bruce Wargo, since, Bruce has finished up your presentation.
I do encourage everybody to continue typing in questions for both Bruce and Randy, and real people try to get through all of them.
If we have time will open up the phone for questions.
Bruce, the first question for you is has the traffic mitigation fee cost shippers to move to another port?
The answer to that is yes, but a very small number.
We had a growth last year of over seven percent.
This year -- I attribute some of that migration not because of the sea, but there was a general concern by the cargo owners of were we going to have a another meltdown in Long Beach in 2005?
I think a lot of that migration had to do with that more than but there are people who indicated that they have left because of the fee, but not many.
In fact, we've actually had a pretty good growth this year today, and I expect -- I would expect that the consistency in the port being able to provide services and transportation is more important than the CTIP.
The next question be have for you is do you know if the California DOT or anybody else has measure the level of service on the effect of high with before and after implementation of PierPASS?
The Alameda Corridor Transportation Authority measured that and they indicated on the roadways that they monitored which we're not all the roadways,
but the majority of them, they sought a reduction of 25 percent of the traffic on those roadways because of 25.
It was important for somebody else to come in in an accurate measure the difference, that's what they did.
The next question we have is do you expect the PierPASS mitigation fee to reduce current growth projection has the green shippers threatened to ship cargo to other ports?
Again, I don't believe the you see will convince people to go to other ports.
It's probably a good idea for the big shippers like Wal-Mart and Target, those large companies should have a strategic plan because things do happen of course.
I would say generally, no, we have not seen a large migration or movement of cargo to other ports.
Other ports have had an increase.
I think Seattle, had a pretty good increase last year and Oakland and Houston saw an increase.
But I like to point out to those people they are going to have their own congestion problems shortly.
We need to be thinking long term.
I've seen some articles for the East Coast is indicating they're having some congestion problems.
I would just point out to those other port authorities they need to sit back and take a look and see where they are in terms of providing for the future because L.A.
and Long Beach continued to grow in spite of cargo that is actually moving to other ports.
The next question have truck trips being spread of the non peak times are they generally in the least few hours of the evening?
Didn't go from days to night, they went from afternoons and evenings and essentially what happens is we see slower mornings and busy afternoons and we see busy early evenings
and slow late night that's been a problem in a sense that we don't see a lot of use in the facilities after 11:00 at night and hopefully we're going to see some changes in that.
In talking to some of the truck companies that had night time ships, their drivers made a lot of trips every night, a lot more than they would have made the other way.
I think over time the trucking community will start to see the benefit of both the day and night shift.
What impact if any has the shift of truck traffic to off-peak hours had on highway related accidents?
I've been a few calls to the California Highway Patrol, they were not aware any significant change in the accident patterns regarding trucks.
Having said that, I have heard about some accidents at night, but generally nothing than we normally get.
A lot of times you see trucks overturning on off ramps or on ramps which ultimately leads to a freeway problem, but I'm not aware of any significant increase in those accidents.
The next question is directed to you, Bruce, but Randy feel free to jump in.
The question is what is a cross town interchange?
I will let Randy, answer that.
The crosstown interchange basically exist when one carrier has to move a container or trailer to another rail carrier and there is no means of what refer to as a steal and wheel interchange available for them to do that.
Also, it can happen when there's a time sensitivity of shipments where steel to steel wheel into changes take an excessive amount of time
and doing it by crosstown with a truck saves the shipper and the carrier time in moving the box from one terminal to another.
We have a field questions fluff for Bruce and then we would jump over to questions for Randy.
The next question is to have insight on what the economy needs to be to make the program at PierPASS work?
One of the concerns that was routinely voiced before we started the program -- and I've heard this voice in New York, New Jersey, was it won't work because nobody is open at night.
An essential part of the program is to change that institutional thinking.
We need to be open at night in many places in order to have the ports continue to grow.
If we don't, then the ports won't grow.
Prior to the program, begun a lot of by in from a lot of the large importers on Target and Home Depot and those sized companies
who had agreed to support the program because they were already open at night, it took a minor change for them to get involved.
The program, if you look at it is a carrot and stick approach.
And because the costs are so high, it's important that the funding mechanism is effective.
So if nobody showed up at night, everybody would pay for the daytime activity in the terminal operators would collect their money and not have any business to conduct.
But that didn't happen.
As I pointed out about 33 percent of the traffic moved to a night and higher percent of importers and exporters moving cargo at night than the overall number.
The important thing is there is enough to activity on daytime to continue to fund the program.
We recently increased the fee by $10, but that in itself did not really have much of an impact.
I didn't see any migration from the harbor here to other ports because of that.
I think the important thing to understand in this approach, there was no economy scale that needed to be achieved it basically was going to cost you to come on days, it would not cost.
Come on nights.
We have two or questions for you.
The next one is, is the benefit cost document produced available on the web?
I believe is.
It is not, it will be paired it would be on PierPASS.org.
I believe its there.
We've actually just updated it and we will be posting that shortly.
It just check out PierPASS.org.
The final question is has there been an air quality analysis completed that estimates the reduction in emissions due to PierPASS?
That's a great question.
I believe the answer is that you come down to Southern California there's about 15 different organizations constantly measuring the air quality so it's an industry down here.
Other people are measuring that.
I believe all the ports of California and Long beach.
But will let them quantify it.
We will now move onto questions for Randy Butler.
If you do think of additional questions please feel free to type them in and as I mentioned we will open up the phone lines.
Randy, the first question we have is if you could please define bobtail.
The term bobtail is a trucking industry term, it prefers to a truck moving without a trailer or a chassis, pulling a chassis or container.
It's normally seen again, in the metropolitan areas moving containers between one location to another and sometimes there's not a return route so they have to return back to the next location without a container
or without a trailer cracks in the next question is the communication protocol for acquiring and producing information and I don't know who had typed in a response
and said that has not been specifically identified as the communication protocol it does represent an attractive solution.
The issue will be addressed during the development of user requirements and concept of operations.
Couldn't have said it better myself.
They keep, Paul.
Right now we are in the process of developing user requirements and concept of operations and this certainly will be considered.
The next question is please expand on planned CTIP measures outlined inside 21.
I will bring up that slide.
The intermodal exchange data base will be an open architecture basically were pulling the information together from many different sources
and bringing in the movement informational associated with the Union Pacific and as the CSX and Burlington Northern and putting it into a database that can be used with applications.
When a truck delivers a blow in across town interchange to a rail terminal and at that time they will be able to look into the database either their dispatcher or that are a small company on an operator type environment
and see if there is another potential move them back to another location, they may be moving to another rail terminal, his maybe he delivery of a load to a customer.
Those applications will be a role based and only information that is correctly associated with participant will be able to be viewed date wireless, updating, again, it will be his application that will run with the intermodal.
For looking to provide hot spots within terminals in their 802.11b or cell-phone information, some type of application that the driver would be able to receive information readily about availability of Lotus.
And the chassis utilization system will be focused on repositioning its assets.
Sometime chassis, especially in an environment where Jesse's are not in an open pool, that is required for the container.
The real-time traffic monitoring -- The State of Missouri this currently have an earmarked referred to as KC Scout which they are monitoring metropolitan traffic.
We would like to be able to give that information to the community to be in this CTIP Project any type of rerouting that would be required and also an application to support improved travel time.
The next question is who was the Missouri DOT point of contact for the Kansas City CTIP Project.
I was trying to find that as we were going through that.
I will have to get back to this participant.
It's a local person in Kansas City that has been focused on Kansas City Scout.
We've also been dealing with a Mid-American Planning Commission and also KC SmartPort.
Those two organizations are focus on improving the Kansas City movement freight to the entire metropolitan area.
The next question is what is the technical basis for CTIP has any body considered building a rail to rail transfer points?
Those points exist today.
It's not a matter of having that capability, steel wheel interchange, sometimes it's a point of the congestion.
It is a time factor of moving containers from one railroad to another through the mass -- sometimes it takes two days to get a train across Chicago
and as much easier to take a box off of one terminal and make an outbound train and another rail terminal in the same day versus try to take two to three days to get across Chicago.
The congestion factor has a lot to do with the overall movement of the containers.
RFID tracking of equipment specifically containers being considered?
Is in place today is that the Union Pacific facility is using it to track train containers in and out.
All the facilities in Kansas City and most in Chicago have some means of identifying the containers.
Not all the containers have these attacks.
We are considering this in the security portion of the project looking at what benefits may lie in other tracking devices if necessary.
Can CTIP be applied to...
It possibly could be.
We haven't considered that.
We focused on the rail terminals, air cargo, the port facilities and certainly there's other applications in CTIP as we start to grow and understand what the true benefits are.
In response to the Missouri contact, Paul wrote in asking will that beat Mark Winter?
I believe is, yes.
By the way, he is supporting us on this project.
We've gotten through all the questions that have been typed in.
Audrey, if you could give instructions to and able attendees to ask questions over the phone?
Ladies and gentlemen, if you wish to ask a question, press start one on a touch-tone telephone.
As a reminder, it is star one on your touch-tone telephone.
We do have a question from the line of at the swing.
This is Abbey Swain.
I was wondering if you could give me a sense of what sort of pushed back you've got from neighborhoods that have experienced increased night time or evening traffic during the off-peak hours that terminals are now operating?
They usually voice their complaints through their elected officials.
And those officials usually bring it to my attention.
Usually and assembly person or city council person, but I don't know what I can do about people who choose to live near the freeway,
but again, the larger benefit is to reduce the overall congestion not only for those living near the Harbor but for those trying to get some more on the freeways.
I usually leave it up to the officials to go back to there constituents on the benefits of the program.
I do talk quite a bit in public.
I hear those kind of comments.
I tried to give them as much positive news as I can.
The reality is, is that PierPASS does not control the growth of the trade.
It's just a reality that is current here in Southern California and our challenge is to deal with that growth and trade in the most efficient and positive way we can.
So PierPASS does do that in changing the dynamic of the traffic patterns for all the citizens in Southern California.
I was asking that because I was trying to figure out the dynamics of promoting such a system here.
I think it's one of those greater good concepts, you know, essentially there are a lot of people that are affected by the ports of Los Angeles and Long Beach so there needs to be a larger plan.
PierPASS also is just a Band-aid.
It's only a temporary fix.
It gives the stakeholders about five, 86 years to plan a larger, strategic initiative that will deal with long-term growth, not just seek short-term congestion issues.
As a reminder, star one to register your question.
And at this time I show there are no questions inside the queue.
Since we don't have anymore questions type it in, we will and a little early today.
I want to thank both presenters for two great presentations and thank everybody for attending today's seminar.
The PowerPoints as well as the recording of this seminar and a transcript will be available within the next week on the Freight Planning website
and I will send out an e-mail to everybody in attendance to let you know when those materials are available.
The next summer will be held on July 19th, entitled Truck Parking Issues.
I encourage you to sign up for the seminar.
I encourage you to join the freight planning list serve.
Thank you everybody enjoying the rest of your day.
Ladies and gentlemen, this does conclude our presentation.
At this time, you'll be disconnected and enjoy the rest of your day.