PierPASS & Operations as a Solution to

Freight Congestion

FHWA Talking Freight SeminarJune 21, 2006Bruce Wargo

President & CEO, PierPASS Inc.

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1990 2002 2003 2004 2005 2010 2020

Millions TEU's

Projected Growth POLA/POLB

Port of Long Beach Planning & Development

POLA/POLB Land

27393012

3826

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4500

2005 2010 2020

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RE

S POLA

POLB

TOTALS

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 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

+ Labor, trains & cargo issues of 2002

+ Labor shortages & cargo of 2004= Assembly Bill 2041 mandating night gates

(subsequently withdrawn in favor of PierPASS industry solution)

An Industry Solution

• Creation of Marine Terminal Operator Group

• Consulted with transportation stakeholders• Cost study by consultant• Creation of PierPASS

PierPASSOffPeak 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 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 OffPeak

PierPASS labor costs approx $160-$180M annually

Then........

Now.......PierPASS OffPeak

PierPASS Covers All Container Terminals

PierPASS Outreach

• Industry meetings• Terminal meetings• Community meetings• Employee meetings

• Policy Makers• WEB • Events• Media

Advisory Committee

• Shipper

• Consignees

• Brokers

• Truckers

• ACTA

• Legislator

Registration: 12,639 Companies Nationwide

• Shippers/Consignees 7,589• Brokers

923• Consolidators 57• Freight Forwarders 1,405• Logistics Co’s 222

• NVOCC’s 557• Other 1,007• Steamship Co’s 76• Truck Co’s

803

So What Happened?• July 23, 2005 start• Labor supported PierPASS• 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 ResultsAugust - December

• Over 1.1M trucks on PierPASS OffPeak operations

• Over 10,000 trucks per night• 33%+ of all cargo moving to OffPeak• 40% of import cargo moving OffPeak• 42% of export cargo moving OffPeak• Peak season without major terminal disruption

PierPASS OffPeak

• 2.8 Million trucks 2006 (est.)

• 11,000-12,000 trucks per night (2006)

• 33-38% of all truck traffic to OffPeak 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 payment2. PierPASS receives payment, issues

payment notice to terminals3. Terminals receive payment notice, release

or receive cargo on PeakHours4. PierPASS makes weekly remittance to

Terminals

CARGO OWNERMAKES PAYMENT

PierPASS sends releaseto each terminal when claimedor paid

PierPASS sends each terminal pro rata share of collections every 1 or 2 weeks

Terminal provideslabor for night/weekendgates

(1)

(2)

(3)

Operational Benefits of the OffPeak 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 OffPeak Program

• Reducing Freeway Gridlock Reduces Air Pollution– PierPASS is reducing gridlock on the roads by spreading

traffic over days and nights

• Reducing a Truck’s Idle Time Reduces Air Pollution– PierPASS 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)

• PierPASS TruckTag (RFID) program (08/06)

Change To Export Receiving Process

• Now... (on PeakHours)– Deliver your export containers– Claim your booking numbers/containers– Pay with credit card or receive an invoice

• August... (On PeakHours)– Claim your booking numbers– Deliver your containers– Pay with credit card or receive an invoice

PierPASS TruckTag 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

PierPASS

www.pierpass.org

www.pierpass-tmf.org