United States/Mexico Cross-Border Long-Haul Pilot Program John Poole III, Texas 28 th Annual IFTA Business Meeting Virginia Beach, Virginia August 17, 2011

1 US/Mexico International Border

2 US/Mexico Cross-Border Activity CY ,395,916 northbound trucks crossed the US/Mexico International Border through Texas in CY ,803 northbound trucks crossed the US/Mexico International Border through Texas as of March 31, ,122 northbound buses crossed the US/Mexico International Border through Texas in CY 2010 Texas has 28 active IRP accounts reporting 4,607,094 non-prorated miles in Mexico

3 US/Mexico Cross-Border Activity CY 2010 September 7, 2009: FMCSA initiated the Demonstration Project allow up to 100 Mexican motor carriers to travel beyond the commercial zones into the US March 11, 2009 – The Project was terminated March 19, 2009 – Mexico exercised its rights to impose retaliatory tariffs / approximate annual cost of $2.4 billion January 18, 2011 – Discussions commenced with Mexico to reinstate the Project March 3, 2011 – US and Mexico announced there is a “clear path forward” to resolving the trucking issues between the two countries

4 United States/Mexico Cross-Border Long-Haul Pilot Program FMCSA Federal Register Notice – April 13, 2011 FMCSA response to public comments was published on July 8, 2011 Expected start date of program is within 3 – 4 months Mexico-domiciled motor carriers may operate through US and Canada for up to 3 years US-domiciled motor carriers will be granted reciprocal rights Participating Mexican motor carriers will be required to comply with ALL state and federal requirements

5 United States/Mexico Cross-Border Long-Haul Pilot Program Prohibits transport of placardable quantities of hazardous materials Authority granted for international cargo – only Security screening Liability Insurance Emission Control Label Federal Motor Vehicle Safety Standard (FMVSS) – Canadian Motor Vehicle Safety Standards (CMVSS) Electronic Monitoring Devices General Requirements for Drivers

6 United States/Mexico Cross-Border Long-Haul Pilot Program Nine Mexico-domiciled motor carriers participated in Demonstration Project Mexico-domiciled apportioned registrants will comply with ALL registration requirements Training requirements for regional and headquarters staffs Review cost of personnel, equipment and other resources Records checks and audit requirements Language concerns US-based motor carriers may require assistance

7 United States/Mexico Cross-Border Long-Haul Pilot Program Sub-committee of the IRP International Committee; commissioned by the IRP Board of Directors Basis for the sub-committee Committee representation First conference call – July 14, 2011 Training for jurisdictional employees Training for IRP/IFTA jurisdictional motor carriers Funding to support jurisdictional cross-border program operations and outreach/training initiatives IRP/IFTA Cross-Border Sub-Committee

8 United States/Mexico Cross-Border Long-Haul Pilot Program Develop list of jurisdictions’ need for implementing program Create a statement of work for the sub-committee Each border state contact FMCSA State Division Director’s Office Review information from the last pilot program for its application to new program IRP, Inc. will contact FMCSA to discuss the formation of the sub- committee IRP/IFTA Cross-Border Sub-Committee

Questions/Comments? 9 United States/Mexico Cross-Border Long-Haul Pilot Program