PierPASS

1
PierPASS Operations as a Solution to Freight
Congestion

• FHWA Talking Freight Seminar
• June 21, 2006
• Bruce Wargo
• President CEO, PierPASS Inc.

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Port of Long Beach Planning Development
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(No Transcript)
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IssuesGrowth And Community

• Air Quality regional issues
• Traffic commute challenges
• Noise neighborhoods near port
• Growth community acceptance
• Truckers poor turn times service

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IssuesGrowth 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

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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  (subsequently withdrawn in favor of PierPASS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)

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An Industry Solution

• Creation of Marine Terminal Operator Group
• Consulted with transportation stakeholders
• Cost study by consultant
• Creation of PierPASS

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PierPASSOffPeak Hours Program

• Provides a program for cargo owners truckers to
  work evenings and weekends
• Provides the funding for off peak hours
  operations through a Traffic Mitigation Fee (TMF)
• Shifts significant amounts of cargo movements to
  off peak hours reducing day time traffic and
  congestion

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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

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(No Transcript)
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Now....... PierPASS OffPeak
Then........
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PierPASS Covers All Container Terminals
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PierPASS Outreach

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

• Policy Makers
• WEB
• Events
• Media

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Advisory Committee

• Shipper
• Consignees
• Brokers

• Truckers
• ACTA
• Legislator

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(No Transcript)
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Registration 12,639 Companies Nationwide

• Shippers/Consignees 7,589
• Brokers 923
• Consolidators 57
• Freight Forwarders 1,405
• Logistics Cos 222

• NVOCCs 557
• Other 1,007
• Steamship Cos 76
• Truck Cos 803

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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

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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

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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

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Payment Flow

• Cargo owner makes online TMF payment
• PierPASS receives payment, issues payment notice
  to terminals
• Terminals receive payment notice, release or
  receive cargo on PeakHours
• PierPASS makes weekly remittance to Terminals

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

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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 Trucks 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

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In the Works

• Change of Export Cargo payment process (08/06)
• PierPASS TruckTag (RFID) program (08/06)

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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

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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

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PierPASS

• www.pierpass.org
• www.pierpass-tmf.org