1. Border Efficiency Research Initiatives American Transportation Research Institute August 16, 2006

2. ATRI Research arm of the trucking industry, an independent affiliate of the American Trucking Associations Federation Research arm of the trucking industry, an independent affiliate of the American Trucking Associations Federation 501(c)(3) charitable research trust 501(c)(3) charitable research trust Governed by 15 member Board Governed by 15 member Board Research agenda developed by Research Advisory Committee (RAC) Research agenda developed by Research Advisory Committee (RAC)

3. Industry Realities Truck Tonnage/VMTs up 70% from 2002 – 2020 Truck Tonnage/VMTs up 70% from 2002 – 2020 82% of Freight Movement & Growing 82% of Freight Movement & Growing Average Operating Margin: 3.7% (Q1 2006) Average Operating Margin: 3.7% (Q1 2006) 3.2 Million Class 8 CDL Drivers / Massive Shortage 3.2 Million Class 8 CDL Drivers / Massive Shortage Border Security Concerns Documented Border Security Concerns Documented Border Delays Real & Costly Border Delays Real & Costly

4. Industry Realities Fuel Costly: $3.00 +/gallon Fuel Costly: $3.00 +/gallon Idling Emissions Concerns Growing Idling Emissions Concerns Growing New Issue with HOS/Parking Availability at Borders New Issue with HOS/Parking Availability at Borders

8. Three Border Research Projects FHWA Freight Performance Measures Initiative FHWA Freight Performance Measures Initiative CBP Border Efficiency Assessment CBP Border Efficiency Assessment FMCSA Canadian Border Issues FMCSA Canadian Border Issues

9. Freight Performance Measures Aka: Travel Time in Freight Significant Corridors Determination of truck travel time and reliability of truck movements on the national transportation system using communications technology Determination of truck travel time and reliability of truck movements on the national transportation system using communications technology

10. Freight Performance Measures

13. Border Activities FPM monitoring at 5 northern border crossings FPM monitoring at 5 northern border crossings Blaine (Pacific Highway): Blaine, WA Blaine (Pacific Highway): Blaine, WA Pembina: Pembina, ND Pembina: Pembina, ND Ambassador Bridge: Detroit, MI Ambassador Bridge: Detroit, MI Peace Bridge: Buffalo, NY Peace Bridge: Buffalo, NY Champlain: Champlain, NY Champlain: Champlain, NY Development of southern border crossing monitoring system Development of southern border crossing monitoring system Non-tractor electronic truck data Non-tractor electronic truck data Development of truck parking mapping Development of truck parking mapping Eight Case Studies including WA & TX Eight Case Studies including WA & TX

14. Task 1 Lit Review and Synthesis CBP Border Efficiency Assessment Task 1 Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Literature Review and Synthesis Annotated Bibliography Annotated Bibliography Comp. Literature Review Comp. Literature Review Synthesis & Analysis Synthesis & Analysis OBJECTIVE: Understand Trends and Control for Effects

15. CBP Border Efficiency Assessment Task 2 Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 2 Industry Review Committee Provision of real-time cost dataProvision of real-time cost data Representative: TL, LTL, Spec. / Commodities / Staff Resp. Representative: TL, LTL, Spec. / Commodities / Staff Resp. Review, Comment & Calibration Review, Comment & Calibration OBJECTIVE: Industry Data Development & Consensus

16. CBP Border Efficiency Assessment Task 3 Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 3 Baseline Indicators and MOE Mapping Targeted Industry Survey Targeted Industry Survey Identify & Quantify Indices Identify & Quantify Indices Truck E-Manifest Mapping to Indices Truck E-Manifest Mapping to Indices OBJECTIVE: Document & Quantify TE-M Impacts on Industry Indices

17. CBP Border Efficiency Assessment Task 4 Task 1 Lit Review and Synthesis Task 1 Lit Review and Synthesis Task 4 Truck E- Manifest Conops and Opps Truck E-Manifest Conops and Costs Document & Analyze Industry Tech/Apps/Trends Document & Analyze Industry Tech/Apps/Trends Map ACE/TE-M to Processes & Systems Map ACE/TE-M to Processes & Systems Recommend Long-Term Opportunities Recommend Long-Term Opportunities OBJECTIVE: Long-Term Utility & Applicability

18. CBP Border Efficiency Assessment Task 5 Task 1 Lit Review and Synthesis Task 5 Field Validation Field Testing of MOEs and C-Bs Identify Appropriate/Rep Carriers Identify Appropriate/Rep Carriers Develop Baseline/ACE Indicators Develop Baseline/ACE Indicators Collect/Document Field DataCollect/Document Field Data OBJECTIVE: Field Validation of Task 3 Findings

19. CBP Border Efficiency Assessment Task 6 Task 6 Economic/ Capacity Issues and Truck E- Manifest Incorporation of Industry Trends Incorporation of Industry Trends Documentation of Non-ACE Capacity Issues Documentation of Non-ACE Capacity Issues Management of ACE vs. Non- ACE Issues Management of ACE vs. Non- ACE Issues OBJECTIVE: Macro-Analysis of Border Capacity, Trends & Recommendations

20. Preliminary Findings Border crossing conops are extremely complex! Border crossing conops are extremely complex! Northern border operations differ substantially from southern border; essentially different performance measures/inputs. Northern border operations differ substantially from southern border; essentially different performance measures/inputs. POE/Crossing requirements differ by [same] border location. POE/Crossing requirements differ by [same] border location. ACE likely improves backroom efficiencies; additional SCM opportunities not yet realized. ACE efficiency value may be marginalized by infrastructure/labor delays, while security benefits are likely. ACE likely improves backroom efficiencies; additional SCM opportunities not yet realized. ACE efficiency value may be marginalized by infrastructure/labor delays, while security benefits are likely. ACE connectivity options may favor larger carriers ACE connectivity options may favor larger carriers

21. FMCSA Canadian Issues Study Beyond Security… Beyond Security… Carrier safety compliance and enforcement continues Carrier safety compliance and enforcement continues U.S. / Canadian Programs differ… U.S. / Canadian Programs differ… Industry awareness lacking Industry awareness lacking Consolidation/harmonization opportunities exist Consolidation/harmonization opportunities exist

22. FMCSA Canadian Issues Study Research Team FMCSA FMCSA SAIC SAIC ATRI ATRI CVSA CVSA North American Driver Safety Foundation North American Driver Safety Foundation

23. Project Objectives 1. 1. Ensure motor carriers with cross-border operations have access to information on the operating requirements of both countries. including CMV safety regulatory variances. 2. 2. Comprehensive report of historical, current and future planned FMCSA-Canada activities and initiatives. 3. 3. Identify significant issues that could impact harmonization and reciprocal recognition of programs, policies, regulations and standards between FMCSA and Transport Canada and other Canadian governmental agencies relating to CMV safety. 4. 4. Assist in evaluating the effect of FMCSA regulatory proposals/policies on Canadian motor carriers operating in the U.S.; understand how regulatory proposals and policy changes effect current FMCSA initiatives and bi-lateral agreements with Transport Canada and other Canadian government organizations (including Departmental agreements).

24. Border Crossing Initiatives EFM CCMTA ACE FMCSA EFM FPM

25. Additionally… MC Efficiency Study (FMCSA) MC Efficiency Study (FMCSA) Industry Standards Initiatives (Industry/TMC) Industry Standards Initiatives (Industry/TMC) WCO Initiatives WCO Initiatives State Programs & Intra-State Regs State Programs & Intra-State Regs CBP Programs & Plans? CBP Programs & Plans?

26. Contact Information Dan Murray: Dan Murray: 651-641-6162 651-641-6162 Dmurray@trucking.org Dmurray@trucking.org Dmurray@trucking.org www.atri-online.org