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

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 years Bridges – time and money to replace –Could be years to replace

Negative Legislative Action +Concerns from the Community +Lack of Productivity by terminals +Labor, trains & cargo issues of Labor shortages & cargo of 2004 =Assembly Bill 2041 mandating night gates (subsequently withdrawn in favor of PierPASS industry solution)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

PierPASS OffPeak 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 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 minutes inside terminal (average) 300+ new jobs at night Increase of cargo velocity on terminal

Payment Flow 1.Cargo owner makes online TMF payment 2.PierPASS receives payment, issues payment notice to terminals 3.Terminals receive payment notice, release or receive cargo on PeakHours 4.PierPASS makes weekly remittance to Terminals

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 (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