Perspective on the Trucking Industry Jim Gill California Cartage Company March 23, 2006

“Count on Us” A Busy Day at Anchor in LB/LA Port June to December 2004

“Count on Us” A Busy Day at Terminals in LB/LA Port

“Count on Us” Port Terminal Congestion Day to Night

“Count on Us” What A Difference A Year Makes Mid-Year 2004 to 2005 Comparison

“Count on Us” What A Difference A Year Makes Cont. End-Year 2004 to 2005 Comparison

“Count on Us” LA/LB Port Trade in 2005 and Estimated 2006  Los Angeles = 7.5 Million TEUs  Increased 2.3%  Long Beach = Nearly 7.0 Million TEUs  Increase of 16%  Estimated Increase in 2006 = 8%

“Count on Us” Major Importers Impact on Ports

“Count on Us” Major Commodities

Phoenician Proverb All you need for successful international trade is: A Buyer, a Seller, a Boat, and a Truck!

“Count on Us” Presentation Agenda Growth Trend of Long Beach/ Los Angeles Key Performance Indicators for Trucking - Cost of Operations - Number of Daily Turns (Productivity) - Supply of Trucking Manpower Impact of Pier Pass Issues and Concerns

“Count on Us” Million (TEU) News on the Ports Growth Trend at Long Beach/ Los Angeles Port Twenty-Foot Equivalent Units (TEU) 28,000 Truck Trips /day By % 50,000 Truck Trips /day By % 60,000 Truck Trips /day By % 80,000 Truck Trips /day** By 2020 Business is Good !! Are There Enough Resources? Source*: and Source**: and

“Count on Us” Presentation Agenda Issues and Concerns Impact of Pier Pass Key Performance Indicators for Tucking - Cost of Operations - Number of Daily Turns (Productivity) - Supply of Trucking Manpower Growth Trend of Long Beach/ Los Angeles

“Count on Us” Key Performance Indicators for Trucking Insurance100% Fuel 60% Registration (Tractor Plates) 90% Maintenance 30% Cost of Operations Source: Independent Truck drivers survey

“Count on Us” Presentation Agenda Key Performance Indicators For Trucking - Cost of Operations - Number of Daily Turns (Productivity) - Supply of Trucking Manpower Growth Trend of Long Beach/ Los Angeles Impact of Pier Pass Issues and Concerns

“Count on Us” Average Number of Daily Turns (Productivity) Key Performance Indicators for Trucking Avg. Daily # Turns -50% Source: Independent Truck drivers survey Decrease in Productivity = Shortage of Drivers Increases

“Count on Us” “Driver market is the tightest it has been in 20 years… it is critical we find ways to tap a new labor pool, increase wages and recruit new people into the industry that keeps our national economy moving.” By Bill Graves President of ATA Spring 2005 Key Performance Indicators for Trucking Supply of Trucking Manpower

“Count on Us” USA Supply of Truck Drivers Both Heavy and Tractor-Trailer Key Performance Indicators for Trucking Source: Country: USA Area: All States Supersector: Transportation and Utilities Industry: Truck Transportation 2004: -20,000 Drivers 2014: -111,000 Drivers Source: ATA Study, May : -20,000 Drivers 2014: -111,000 Drivers Source: ATA Study, May 2005 Trucking Manpower Supply

“Count on Us” Both The City of Los Angeles and Long Beach Supply of Truck Drivers both Heavy and Tractor- Trailer Key Performance Indicators for Trucking Source: State: California Area: Los Angeles-Long Beach-Glendale, CA Metropolitan Division Supersector: Transportation and Utilities Industry: Truck Transportation -20% Trucking Manpower Supply

“Count on Us” Issues and Concerns 1.The Shortage of Drivers is Increasing New Truck Driver Shortage Turnover is Above Normal 2.Drivers Are Working Fewer Hours (HOS) so fewer Turns Are Made Waiting Time is Not Being Compensated for 3.A Rise in the Cost of Operations: Maintenance, Fuel, etc. 4.A 30 – 40% Decrease in Both Revenue and Productivity 5.No Change in Rates for Approximately 15 Years Supply of Truck Drivers Supply of Trucking Manpower

“Count on Us” Supply of Truck Drivers 1.Interest qualified drivers, hire them, and make them want to stay  Rise in Productivity of Drivers 2.Keep the ports open longer  PIER PASS(?) 3.The Automate Interchange Process  *OCR, **RFID *OCR: Optical Character Recognition **RFID: Radio Frequency Identification 4. Improve the efficiency between the ocean terminal and the drivers Obstacles and Solutions

“Count on Us” Presentation Agenda Issues or Concerns Impact of Pier Pass Key Performance Indicators for Trucking - Cost of Operations - Number of Daily Turns (Productivity) - Supply of Trucking Manpower Growth Trend of Long Beach/ Los Angeles

“Count on Us” Impact of Pier Pass on the Trucking Industry 1.Start up very difficult Change driver lifestyle Driver slow to accept night work Need additional compensation Additional compensation received slow acceptance 2.Driver acceptance Based on their ability to make more money More money equates to more turns per shift Drivers forced to nights by client pressure Impact of Pier Pass on Drivers

“Count on Us” 1.Start up very difficult Additional staffing and cost to drayage firms Increased concerns of security Increased cost of insurance Impact of Pier Pass on the Trucking Industry Impact of Pier Pass on Drayage Firms

“Count on Us” 1.Pier Pass Benefits Added a second shift to move volume Reduced traffic in peak hours 2.Pier Pass Deficiencies Has not increased turn times Has not put increased money in drivers pockets A need for continual roll over day to night gate Need for continuous work- no terminal down time 3.Future Pier Pass Concerns Pier pass fee to increase by mid year Drivers want part of the increase to haul nights Price rise will drive more importers to off peak Impact of Pier Pass on the Trucking Industry Benefits, Deficiencies, and Concerns

“Count on Us” Concerns Going Forward 1.Import volume increase/ terminal congestion More big vessels – 8,000 TEUS+ More technology RFID tag for all trucks – security Radiation portals at all terminals More on dock rail movement 2.Infrastructure congestion Highway system for trucks Rail capacity at Los Angeles Terminals 3.Diesel fuel prices Need for a uniform fuel surcharge program

“Count on Us” Concerns Going Forward cont. 1.Development of an environment green zone Both ports have a mandate Rail to provide alternate power sources Drayage firms to consider new fuel sources Liquefied natural gas -LNG 2.Develop inland container terminals Distribution centers further from port Move short haul inland by rail Make better use of Alameda corridor

“Count on Us” Going The Next Mile Together Now 1.Priorities Security Environment Improved Infrastructure 2.Opportunities Partnerships Collaboration

“Count on Us” March 23, 2006 THANK YOU!