# Presentation: 517672

## PierPASS & Operations as a Solution to Freight Congestion 

- FHWA Talking Freight Seminar
- June 21, 2006
*Bruce Wargo*
*President & CEO, PierPASS Inc.*

## Port of Long Beach Planning & Development

## Slide 3

## 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- _Assembly Bill 2041_ mandating night gates (subsequently withdrawn in favor of Pier*PASS industry solution*)

## An Industry Solution

- Creation of Marine Terminal Operator Group
- Consulted with transportation stakeholders
- Cost study by consultant
- Creation of Pier*PASS*

## PierPASSOffPeak 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

## 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 Pier*PASS* labor costs approx $160-$180M annually

## Slide 10

## Then........

_*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

## Slide 15

## 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 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 1.1M 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

- Cargo owner makes online TMF payment
- Pier*PASS* receives payment, issues payment notice to terminals
- Terminals receive payment notice, release or receive cargo on PeakHours
- Pier*PASS* makes weekly remittance to Terminals

## (1)

- CARGO OWNER
- MAKES PAYMENT

- PierPASS sends release
- to each terminal when claimed
- or paid

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

- Terminal provides
- labor for night/weekend
- gates

- (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](http://www.pierpass.org/)_
- _[www.pierpass-tmf.org](http://www.pierpass-tmf.org/)_