California Political and Environmental Leaders Laud PierPass OffPeak Program for Decade of Impact

Program Diverts 34 Million Truck Trips From Los Angeles / Long Beach Peak Traffic Since 2005

LONG BEACH, Calif., July 23, 2015 – PierPass Inc. today celebrated the 10-year anniversary of the OffPeak Program, which established regular night and Saturday work shifts at the Port of Los Angeles and Port of Long Beach, and pledged continuing efforts to minimize cargo-related congestion in and around the ports. Since July 23, 2005, OffPeak has taken 34 million truck trips out of daytime Southern California traffic and diverted them to less congested nights and weekends.

PierPass created OffPeak as a private sector solution to what was then a critical public problem: after a rapid rise in cargo volume in the early 2000s, drayage trucks were causing severe congestion on the roads and highways and in the neighborhoods around the ports, while thousands of idling trucks caught in this traffic every day added to air pollution. The ports came under strong community and political pressure to find a solution.

PierPass effectively doubles the capacity of the nation’s largest and busiest port complex without taxpayer money and without waiting for new infrastructure to be built. It enables the economic benefits of cargo transportation – which provides nearly 700,000 Southern California jobs and generates more than $10 billion in state and local taxes annually – while greatly mitigating the traffic and air quality impacts of the ports’ operations. OffPeak now regularly diverts about half of the roughly 150,000 weekly truck trips to nights and Saturdays.

“Heavy-duty trucks are the largest source of smog-forming nitrogen oxide emissions in our region,” explains South Coast Air Quality Management District Executive Officer Barry Wallerstein. “By decreasing the time that trucks are idling and stuck in traffic, the OffPeak program has helped to significantly improve air quality.”

The mayors of Los Angeles and Long Beach hailed the OffPeak program’s achievements on its 10th anniversary.

“The OffPeak program has facilitated the continued growth of the Port of Long Beach,” said Long Beach Mayor Robert Garcia, “while lowering the adverse environmental impacts of their operations.”

“For the last decade, PierPass has instituted innovative and creative problem solving for the goods movement industry in Southern California,” said Los Angeles Mayor Eric Garcetti. “Their program has helped to bring jobs to America’s #1 port, while helping us reduce our environmental footprint in the Harbor area.”

Congressman Alan Lowenthal, who introduced legislation to address truck congestion at the ports when he was an Assemblyman in the California Legislature, said, “Given the success of OffPeak, many don’t remember how bad it was at the ports in the years before the program’s creation. The OffPeak program really helped reduce the stress on port-adjacent communities and traffic on key freeways.”

Using a congestion pricing model, PierPass charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use the OffPeak shifts. The TMF also helps pay for the cost of operating the OffPeak shifts, which upon introduction in 2005 roughly doubled the labor cost to handle the same amount of cargo. Container volume rose only 6% between 2005 and 2014.

On an average OffPeak weeknight, 13,500 trucks visit the marine container terminals at the Los Angeles and Long Beach ports. If all of these trucks were lined up bumper-to-bumper, they would form a line 145 miles long, stretching halfway to Las Vegas. Without the OffPeak program, this cargo would be crammed into a single day shift, doubling daytime volumes and once again causing severe congestion.

“We are proud of what we have accomplished with the OffPeak program, but we aren’t resting on our accomplishments,” said PierPass President John Cushing. “PierPass and the terminals are constantly working with our partners at the ports and others in the supply chain to improve the velocity of freight and reduce the environmental impact of port operations.”

About PierPass
PierPass is a not-for-profit company created by marine terminal operators at the Ports of Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, air quality and security. To learn what it takes for a truck to drop off or pick up a container at a marine terminal, see http://youtu.be/P9IJN1yIIJ4. For additional information, please see www.pierpass.org.

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PierPass Customer Service Numbers:
877-863-3310 (from inside the United States)
1-973-355-3575 (from outside the United States)

PierPass Meets with Federal Maritime Commission and Industry Stakeholders To Address Congestion

LONG BEACH, Calif., November 17, 2014—PierPass Inc. executives have concluded meetings with the five Federal Maritime Commissioners (including Chairman Mario Cordero) and with FMC staff, briefing them on measures the marine terminal operator (MTO) members of PierPass are taking to address the current congestion issues in the Ports of Los Angeles and Long Beach. In a series of meetings late last week in Washington, D.C., PierPass also met with representatives from the National Retail Federation, the National Industrial Transportation League, the Waterfront Coalition, and the Agriculture Transportation Coalition to provide them with these updates.

PierPass Chairman Bruce Wargo and President John Cushing reported that the MTOs have been spending $3 million per week on additional and unbudgeted costs since September 1 to manage congestion. These expenditures include adding unscheduled gates and shifts; working overtime and through lunch and breaks; and paying truckers to move containers between terminals to load on-dock trains. The MTOs operated 73 additional gates (shifts open to truck traffic) in September, a 30% increase compared to the number of scheduled OffPeak gates, and 86 additional gates in October, a 33% increase.

PierPass also shared new initiatives its members are deploying to address chassis availability issues and to expand container delivery options to increase terminal productivity. These initiatives include the Free-Flow Program, which pre-positions large blocks of containers to enable quicker turn times for trucks picking up containers headed for a common destination.

The meetings provided an opportunity for PierPass to discuss recent calls for it to waive its Traffic Mitigation Fee (TMF). The TMF offsets part of the cost of running the OffPeak Program, which has essentially doubled the capacity of the Ports of Los Angeles and Long Beach by running regular night and Saturday shifts. Charging the TMF on daytime cargo movement also provides the incentive to use the second shift.

The OffPeak program has successfully balanced the flow of trucks to the ports, which prior to OffPeak’s introduction in 2005 was causing severe daytime congestion on Southern California roads. In the meetings, PierPass cited its concerns that by waiving the TMF, the previous congestion problems would be reintroduced and would exacerbate the current congestion caused by a range of factors including shortages of available chassis.

“The meetings with the FMC were very constructive,” Cushing said. “We also found the meeting with the stakeholder representatives to be productive. Such discussions with a broad array of industry stakeholders, similar to meetings with our own Advisory Committee, help us focus on the real impediments to our common goal, which is to move cargo as quickly and efficiently as possible.”

PierPass October News and Updates

PierPass Monthly Transaction Data  

Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of September 2014.

Average in-terminal turn time:

  • 52.1 minutes day shift
  • 54.7 minutes night shift

For comparison, the average in-terminal turn time in August 2014 was 49.1 minutes for the day shift and 48.1 minutes for the night shift.

September was a particularly difficult month. Truck turn times increased due to cargo volumes increasing, chassis shortages, and rail availability causing cargo delays and an increase in the average in-terminal truck turn times.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors.

For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Frequent callers* average moves per day:

  • 9% trucks 5 or moves per day
  • 16% trucks 4 moves per day
  • 31% trucks 3 moves per day
  • 28% trucks 2 moves per day
  • 16% trucks 1 move per day

*The ports define frequent callers as trucks making one or more moves per weekday. Average moves per day by frequent callers tells us how many moves a truck can make if it is working every day. In September, 25 percent of frequent callers made four or more moves per day.

Day vs. Night Gates:

  • Average daily number of day gate moves: 15,404
  • Average daily number of night gate moves: 18,079
  • Number of day shifts open: 25
  • Number of night shifts open: 15

The number of unique trucks calling on the ports in September was 10,389.

Note:

  • All terminals were closed for the Labor Day Holiday.  Several terminals were closed due to the port fire September 22nd and 23rd.

To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4.

PierPass Names John Cushing as President

LONG BEACH, Calif., September 17, 2014 – PierPass Inc. has named as its new president John Cushing, a veteran transportation industry executive and leader.

Mr. Cushing’s role gives him responsibility for PierPass programs to relieve congestion and improve air quality at the Ports of Los Angeles and Long Beach. Mr. Cushing takes over the role of president from Bruce Wargo, who has led PierPass since its founding in 2004 and remains CEO.

Mr. Cushing founded eModal in 1999 and served as its president through 2009. Under his leadership, eModal developed widely used online services to coordinate activities between marine terminals and trucking companies, beneficial cargo owners, and others in the supply chain. Mr. Cushing grew eModal into the nation’s largest port community system, used at 41 marine terminals in 14 ports on both U.S. coasts.

From 2009 through 2013, Mr. Cushing led development of SSIT, a greenfield container terminal project on the Cai Mep River in the south of Vietnam. Since returning to southern California, Mr. Cushing has been involved in various maritime business development projects, both domestically and internationally.

Mr. Cushing’s extensive experience in the transportation industry began when he worked as a steamship line agent with Barwil Agencies. Later, as marketing manager at the Port of Los Angeles, Mr. Cushing helped establish the Port’s heavy container corridor, including leading the effort to pass a state law enabling the corridor. Other initiatives included his role in developing the Port’s first on-dock intermodal facility.

“John’s leadership in services for terminal operators, trucking companies and cargo owners, along with his experience developing and managing a new international container terminal, put PierPass and the OffPeak Program in able hands,” Mr. Wargo said. Mr. Wargo has taken on the additional role of PierPass board chairman.

Under the OffPeak program, the 13 international container terminals at the two adjacent ports operate additional shifts on nights and Saturdays. Since 2005, PierPass OffPeak gates have grown to handle about 55 percent of daily truck-borne container traffic at the ports, diverting more than 30 million truck trips from weekday, daytime traffic in Los Angeles and Long Beach. OffPeak has greatly eased congestion on city streets and nearby freeways, and has reduced emissions from trucks idling outside of terminals and in traffic.

 

PierPass September News and Updates

PierPass Monthly Transaction Data  

Each month we provide a summary of the latest transaction data from marine terminal operators (MTOs) at the Port of Los Angeles and Port of Long Beach. Below please find data from the month of August 2014.

Average in-terminal turn time:

  • 49.1 minutes day shift
  • 48.1 minutes night shift

For comparison, the average in-terminal turn time in July 2014 was 48.7 minutes for the day shift and 49.2 minutes for the night shift.

In-terminal turn time is the average amount of time a truck is inside a terminal to complete a transaction. Truck activity information is derived from RFID data, and excludes lunch hour, breaks and trouble tickets. Turn time at individual terminals will vary depending on time of day and other factors.

For more information about turn times and how we measure them, please see our Q&A at http://goo.gl/PiOjBp.

Frequent callers* average moves per day:

  • 9% trucks 5 or moves per day
  • 18% trucks 4 moves per day
  • 30% trucks 3 moves per day
  • 27% trucks 2 moves per day
  • 16% trucks 1 move per day

*The ports define frequent callers as trucks making one or more moves per weekday. Average moves per day by frequent callers tells us how many moves a truck can make if it is working every day. In August, 27 percent of frequent callers made four or more moves per day.

Day vs. Night Gates:

  • Average daily number of day gate moves: 14,605
  • Average daily number of night gate moves: 16,887
  • Number of day shifts open: 26
  • Number of night shifts open: 15

The number of unique trucks calling on the ports in August was 10,313.

Note:

  • All terminals were closed one night for the second shift for an ILWU Stop Work meeting on August 7.

To learn what it takes for a truck to drop off or pick up a container at a marine terminal, please see http://youtu.be/P9IJN1yIIJ4.

Marine Terminals at Los Angeles and Long Beach Ports to Power Docked Ships with Electricity by Year-End

LONG BEACH, Calif., May 21, 2013 – PierPass Inc. today announced that all 13 international cargo terminals at the Port of Los Angeles and Port of Long Beach will be ready to deliver shore power to ships at berth by the end of this year, an investment that will significantly reduce air pollution in and around the ports.

The infrastructure to supply shore power – also known as cold ironing or Alternative Marine Power (AMP) – is being installed in support of clean air initiatives led by the two ports and the California Air Resources Board (ARB). ARB has mandated that by Jan. 1, 2014, half of all visits by container cargo, refrigerated cargo and cruise vessels must be powered by electricity. The rule applies to fleets making at least 25 visits per year to California ports.

Currently, most ships power themselves while at berth by continuously running on-board auxiliary diesel engines, during visits that typically last about 24 hours. Ships are the single largest source of port-related pollutants including particulate matter, oxides of sulfur and oxides of nitrogen. Shore power cuts air pollution from a ship at berth by 95 percent, according to the Port of Long Beach.

“Terminal operators are working hard to help the ports and ARB implement this important clean air measure,” said Bruce Wargo, president of PierPass. “As part of the ongoing innovations and investments that have made the Ports of Los Angeles and Long Beach the cleanest and most efficient in the country, the shore power initiative will deliver significant air quality benefits to port workers and nearby communities.”

Nearly half the terminals in the ports are already offering shore power in at least some of their berths. These include WBCT, TraPac, YTI and STS at the Port of Los Angeles, and Pier C60 (SSA) and ITS at the Port of Long Beach.

Working with the ports and ARB to enable shore power is only the latest measure taken by the marine terminal operators (MTOs) to improve air quality around the ports. PierPass and its member terminal operators continue to offer night gate operations that move truck traffic out of peak daytime hours, reducing traffic congestion and improving air quality. Terminals are currently offering 55 OffPeak gates across 13 terminals, in addition to 65 daytime gates, for a total of 120 gates per week for cargo pickup and delivery.
 

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