Ronald J. Silva

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Short Sea Shipping for California and the West
Coast - A Complete Door to Door System -
By Ronald J. Silva President/Owner Westar
Transport
Matthew P. Tedesco, Ph.D. Technical and
Management Consulting
Office [phone] rsilva_at_westartransport.com
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Contents

• Who is Westar Transport?
• Why is Westar Transport Interested?
• What is Short Sea Shipping (SSS)?
• Proposed Westar Transport SSS Model
• What are the Benefits?
• What are the Challenges?
• Reference Material
• Roll-On/Roll-Off Vessel Overview
• CCDOTT Project Overview
• Existing Operations

Westar Transport
Westar Transport
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Who is Westar Transport?

• Westar Transport has moved truckload freight over
  the 11 Western States with an emphasis on
  California and the West Coast for over 24 years.
• Company operations include dispatch, billing,
  accounting, shop services, and marketing.
• Westar Transports primary yard and offices are
  in Selma, CA. Currently there are 64 full time
  employees, which include 50 company drivers,
  operational and maintenance staff and 15
  independent contractors (owner-operator trucks).
• The companys success is a result of its
  emphasis on customer services and safety.
• Westar Transport sees Short Sea Shipping as the
  solution to critical problems facing the trucking
  industry today
• Driver shortages
• Congestion and lost revenue
• Increasing concerns over emissions
• Increasing concerns over safety, security, and
  liability
• The challenge of increasing freight volumes

We View Short Sea Shipping from the Perspective
of a Door to Door Transportation Enterprise
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What is Short Sea Shipping?
Northern California 150 mile terminal service
area

• Short Sea Shipping is the diversion of domestic
  and international cargos that move by highway
  from major metropolitan areas to major
  metropolitan areas by water along coastal routes.
• - It is also the diversion of International
  cargos from large municipal ports to the smaller
  ports closer to the cargos final destination.
  This provides port congestion relief, and takes
  trucks off the Highway between the ports.

Fresno
Southern California 150 mile terminal service
area
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West Coast Short Sea Shipping Model

• Thousands of trucks that currently run on the
  Highway daily between these port service areas
  could be diverted off the Highways between them.
• Any type of trailer can be routed onto the ships
  or barges.
• Ships will provide next day service in 400 mile
  markets, matching todays truck service.
• Ships will carry 600 to 700 trailers each.

Seattle
Portland
Northern California
Humbolt Bay
An estimated 4,000 to 8,000 trucks per day could
be diverted in the start-up model
Southern California
Currently 10,000 trucks per day travel into L.A.
and 10,000 trucks travel out of L.A. each day.
Westar Transport
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The OperationNorth to South Model

• Trucks work in 100 to 150 mile radiuses picking
  up and delivering daily freight.
• Trailers of all types are moved into the terminal
  where they are loaded onto ships.
• The ships move down the coast to the opposite
  terminal and the process starts all over again.
• Truck operation will reduce empty miles driven.
• Any type of trailer with any cargo can go onto
  the ships.

Loaded
Loaded
Loaded
Pittsburg, CA
Empty
Empty
Empty
Empty
We will create truck load saturated areas,
producing more capacity to the shippers.
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The OperationNorth and South Modal
When over flow cargo reaches a point where ships
can be filled, we then bring more ships into
service and take the trucks off the roads. Short
Sea Shipping can grow with it.

• Cargo moves by truck when ship is full.
• Drivers move to and from a drop yard back to the
  origin terminal.
• Drivers still go home daily.
• Drivers can be based out of any terminal.
• Gives drivers the opportunity to relocate and
  stay with the same employer.

Northern CA
Each driver makes two trip
Each driver makes one trip
It is a system that can easily grow to meet
freight capacity demand.
When the day shift driver ends his shift, the
night shift driver uses the same truck.
Better utilizing assets
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Loading a Ro-Ro Ship
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How the barge feeder will pull containers from
all terminals. At the Port of Los Angeles and
Port of Long Beach.
Roll-on Roll-off terminal
International containers sit in port for 6 to 10
days.
International containers can move by short haul
truck under bond (like off dock rail) to a Ro/Ro
terminal to be loaded onto barges. This will
pool all the available volumes from all the
terminals. The containers are consolidated on
the barge going to the smaller ports. Barges are
used where time is not critical, barges are
cheaper but slower.
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How the barge feeder will pull containers from
all terminals. At the Port of Oakland

• Containers may be consolidated by short haul
  clean fuel trucks from all terminals and moved by
  barge to Sacramento, Stockton, and Pittsburgh for
  Los Angeles bound freight. This can be done using
  2007 truck models with less diesel or LNG.
• Dedicated water front for three barges will be
  required for the systems to work properly
• This system will move containers faster from the
  terminals, providing through put, and will
  provide increased capacity at the container
  terminals.

Stockton
Sacramento
Pittsburgh
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Port of Long Beach
Coastal Ro-Ro Ships
San Diego
Port Hueneme
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The Barge Feeder Operation ModelNorthern
California
Port Pittsburg
Oakland
Barges carry 512 trailers or containers on
chassis 2-Barges per day (round trips)2,048 daily
512,000 annually.
Westar Transport
Designated water front areas will be necessary if
a barge system is to exist.
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The Barge Feeder OperationSouthern Model
Pollution Reduction 6,150 tons of NOX/ 15 tons of
Particulate Matter
Pollution Reduction 200 tons NOX / 15 tons of
Particulate Matter Annually
LA/LB Port
Barges carry 512 trailers or containers on
chassis 2-Barges per day (round trips)2,048 daily
512,000 annually.
Pollution Reduction 250 tons of NOX/ 15 ton of
Particulate Matter Annually
Westar Transport
Barges can be loaded at a roll-on roll-off
terminal, trailers are then moved by short haul
trucks and pull volume from all terminals.
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Why build short sea shipping?
It reduces congestion, pollution, and improves
highway safety.

• The Benefits
• Short Sea Shipping reduces congestion and
  pollution by removing thousands of long haul
  trucks off the highway, and in doing so will
  increase highway safety.
• Reduces Green house gases in the Central Valley
  and through out California
• Reduces dependence on foreign oil by using less
  diesel daily.
• Short Sea Shipping can be used for an Emergency
  Relief System on the West Coast.
• A local truck operation
• - Uses half the truck drivers required in over
  the road system. Will help fill part of the
  national truck driver shortage that is scheduled
  to increase in the next ten years.
• - Short Sea Shipping takes long haul drivers and
  turns them into local drivers.
• 1) Use small trucks and trailers with spread
  axles that can haul more weight on heavy loads,
  small trucks will eliminate 1 out of every 10
  loads shipped.
• 2) Local trucks work in shorter routes allowing
  the opportunity to convert trucks to cleaner
  alternative fuels like LNG.
• 3) Local Drivers get home daily, and do not have
  to sleep in the truck allowing them better rest,
  allows better family and community involvement.
• 4) Smaller local trucks have more visibility and
  shorter turning radius. These trucks will be
  safer in traffic and on city streets.
• 5) Empty flat beds can be double stacked on the
  ships when moving empty, taking more trucks off
  the highway.
• 6) Divers will work 1-shift and go home. The
  trucks, with a fresh driver each shift, can work
  day and night if the customers allow it.

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Why build short sea shipping?

• Benefits (continued)
• - Reducing pollution
• By diverting thousands of trucks off the highway
  thousands of tons of emission are removed from
  those areas the highways run through. The ships
  will be the cleanest that can be built and
  emissions are moved out to sea where trade winds
  can better disperse them.
• An estimated 4,000 to 8,000 tons of NOX
  and 200 to 400 tons of PM can be removed annually.

- Increase highway safety By removing
thousand of trucks daily from the highways along
coastal routes, lives will be saved due to
the reduction in truck related accidents.
An estimated 200 to 400 lives per year could be
saved.
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Why Pursue Short Sea Shipping?
Cost of expanding U.S. Highway system is
significant
Existing Transportation System Inadequate!

• More Congestion
• Increased Pollution
• Infrastructure Inadequate
• Truck Driver Shortages
• Hampers Economic Growth
• Increased Accidents

• New highway cost 32 Million per lane mile
• Expanding I-5 to provide one single lane 335
  miles running North and South10.7 Billion! 4200
  trucks with safe distance creates 335 miles of
  lane
• A Short Sea shipping start up cost 80 less and
  provides the same amount of highway lane.
• New interchange costs over 100 Million each

Adding Lanes is Costly, and Only Mitigates
Congestion Short Sea Shipping is Less Expensive
and has a Broader Impact. Short Sea Shipping is
the only system that does not interfere with the
current systems while under construction.
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Westar Transports Perspective

• Available truckload capacity continues to be a
  primary concern
• Trade will double in the next 10 to 15 years
• Trucking struggles to meet the challenge
• hours-of-service, 6 to 9 rate hikes (each year
  predicted)
• continually rising fuel costs
• shortage of qualified drivers (bad today worse
  tomorrow)
• driver pay package increases
• Emissions restrictions
• Truck and rail will lack adequate capacity to
  meet the challenge
• Fuel costs continue to rise
• Highway congestion will continue to escalate
  need alternative modes
• Port congestion will continue to escalate
  market for feeders will grow
• Environmental concerns will continue to shape
  transportation
• Drivers will continue to leave the industry
• Logistics costs will continue to grow as a
  percentage of product costs

We Need More Options!
Short Sea Shipping is needed in order for the
logistics system to grow to meet the current and
future demand
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Challenges We Face

• Secure funding to finish the on going study work
  to determine cost of operation and social
  benefits.
• Modify Harbor Maintenance Tax (HR3319) so it will
  not collect on domestic cargos. We need all
  California Members of Congress to Support HR3319.
  Congressman Jim Costa has agreed to co-sponsor
  the bill.
• Secure financing for start-up. If the operation
  will not produce sufficient returns for investors
  to fully fund the start-up the state or federal
  governments will need to help fund the Start-up
  so the investors will participate, or loan an
  operator funding.
• Find available and financially feasible ports and
  labor, especially in Southern California and
  Northern California.
• The government should not subsidize short sea
  shipping with-out subsidizing the trucking it
  will compete with.

The ships, barges, trucks, trailers, ports, and
the cargos already exist.
Short Sea Shipping is the missing link to the
supply chain.
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Dual-Use
Roll-on Roll-off vessels can be used in time of
need and during peace time to move military
cargo. Vessels can also move goods in and out of
areas when natural disasters or terrorist attacks
make roads inaccessible.
Ro-Ro Terminals are Strategic Terminals! Ro-Ro
Vessels Provide Benefits to Military
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Ro-Ro OperationsAlready Successful in Niche
Markets
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TOTE Existing Roll-On/Roll-Off (Ro/Ro)

• Conventional displacement vessel
• Length Overall 839' 0
• Beam 118' 0
• Maximum Draft 29' 6
• Speed 24 kts
• Trailer Capacity 600 F.E.U.
• Auto Capacity 200
• Cargo Deck Area 360,000 sq. ft.
• Load/Unload time less than 9 hours
• Cost per vessel 175 M (2002 dollars)
• Two vessels, NASSCO, 2002/2003

Short Sea Shipping is Already Successful in Niche
Markets
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TOTE In-Port Ro-Ro Operations
Fast Turn-Around at Ports is Critical Ro-Ro
Terminals are Simple and Efficient. In the study
we will look at slips so both sides of the ship
can be unloaded at the same time.
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Crowley and Trailer BridgeRo-Ro Barges

• Largest Ro-Ro Barges in the World
• Triple-Deck
• 736 x 104
• 512 FEU capacity
• 340 53 trailer
• Travel at 9 to 10 knots
• Serve Florida to Puerto Rico market

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Study
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• The Center for the Commercial Deployment of
  Transportation Technologies (CCDoTT)
• Chartered university center at California State
  University, Long Beach (CSULB)
• Partnership of academic institutions, government,
  and commercial corporations
• CCDoTT project is a program operated by the CSULB
  Foundation
• Implemented to enable the Department of Defense
  (DOD), through the United States Transportation
  Command (USTRANSCOM), and the Department of
  Transportation (DOT), through the Maritime
  Administration (MARAD) and other participants to
  leverage advanced transportation technologies
• Mission
• Leverage advanced transportation technologies
  including emerging High-Speed Ship systems and
  Agile Port Terminal systems in solving defense
  and commercial transportation infrastructure
  problems
• Conduct sponsor applied research and development
  in support of defense and commercial
  transportation infrastructure initiatives
• Provide a bilateral technology transfer/dual use
  bridge between the DOD and commercial industry
• The prime contractor is the CSULB Foundation. 
  USTRANSCOM and MARAD have oversight
  responsibility for the CCDoTT project.  MARAD
  serves as the contracting entity for the CCDoTT
  project and is responsible for authorizing
  project and financial activities.  MARAD
  collaborates with USTRANSCOM to ensure that
  programs are compatible with commercial and
  military related objectives.

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• Westar is Teamed with MANALYTICS for Fy-05
  funding (300K)
• Market Data
• Economic and Transportation Systems Model
• Ship/Barge Design(s)
• Port Access
• Emissions
• Financing Plan
• Enabling Technologies
• CCDOTT Team
• CDI Marine (Band, Lavis and Associates) Naval
  Architects and Marine Engineers
• Westar Transport Trucking and Logistics
• National Steel and Shipbuilding Company (NASSCO)
  Builders of TOTE vessels
• Matthew P. Tedesco Technical and Management
  consultant
• Scully Capital Financial models and access to
  financing
• Manalytics Market data (International to
  Domestic Interface)
• San Joaquin Valley Air Pollution Control District

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West Coast Short Sea Shipping

• There are FOUR possibilities of how short sea
  shipping can be funded and built here in
  California and the West Coast. The study will
  look at the result of these four scenarios
• Short Sea Shipping can be built with 100
  investors money. The investors will demand at
  least a 15 profit each year. There are currently
  3 interested investors, but they must see the
  study results first. ( They will not fund a
  study.)
• The study may prove that Short Sea Shipping will
  not create an adequate return on investment of
  15 as required by investors, and will need the
  publics help to provide the funds for the
  start-up modal. (Subsidize) If marine industry is
  subsidized it would be un-fair to the trucking
  industry.
• Federal and State loans may be necessary to
  provide the start-up cost to the operator. This
  would allow the system to have a low to no
  interest rate on a loan that will help short sea
  shipping lower operating costs. The loan can be
  viewed as the publics investment or trade in
  return for the social benefits. This chosen
  operator should agree to commit 90 of their
  bottom line in profits over the life of the loan
  to growth, to keep up with freight growths
  demand. This would not subsidize short sea
  shipping, and would be fair to trucking and all
  other transportation industries as the system is
  built.
• Short Sea Shipping must be built, but in the case
  that California doesnt think it will save money
  for the state in roads and lives, leaving it only
  in concept and study will prove More air
  pollution, more congestion, and continued
  accidents that are up to 200 lives lost a year.
  This will increase the current work load of the
  Council of Government, Business, Transportation,
  and Housing, and Cal-Trans because they dont
  have the available funds or ability to keep up
  with the demand of Californias population, or
  the future in increased cargo volumes.

Westar Supports Our Troops and Red Fridays
Each Friday we wear RED in Support of Our Troops.
Ron silva CEO- Westar transport 9220 e. South
ave. /Selma, ca. 93662 P [phone]/F (559)
834-3133 E rsilva_at_westartransport.Com Please
visit us at www.Westartransport.Com