Tag Archives: Traffic Congestion

One Year In, “PierPass 2.0” Smooths Truck Traffic at Los Angeles & Long Beach Ports

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One Year In, “PierPass 2.0” Smooths Truck Traffic at Los Angeles & Long Beach Ports

Ample Appointments Available

LONG BEACH, Calif., Dec. 2, 2019—In the year since PierPass launched an appointments-based system for trucks picking up containers at the Ports of Los Angeles and Long Beach, long late-afternoon queues have been eliminated, and ample appointment opportunities are available for each container. On average, port terminals are offering about a third more appointment slots than there are containers to be picked up.

Terminals have also been working with the trucking community and other stakeholders to add new types of appointment-based services to help truckers achieve greater efficiency, taking advantage of the scalability and flexibility they gained by switching to an appointment-based system.

“Terminals continue offering at least two peak shift and two off-peak shift appointments for each container prior to free time expiration, providing multiple options for each pickup,” said John Cushing, President and CEO of PierPass. “Over the past year, many terminals have also introduced new services. All of this gives the cargo community an enhanced traffic mitigation system, which is running smoothly one year in.”

The OffPeak program was restructured in November 2018. The revised program, informally called “PierPass 2.0,” reduces traffic congestion by spreading cargo movement across two shifts, using appointments rather than the daytime-only Traffic Mitigation Fee (TMF) used in the original OffPeak program that started in 2005. From July 2005 through October 2019, OffPeak has diverted 46.7 million truck trips from Los Angeles weekday daytime traffic.

The revised OffPeak program has achieved the major objectives of the overhaul, including eliminating the long truck queues that previously formed in late afternoons as trucks waited outside the terminals until 6:00 p.m. to avoid the TMF. All 12 terminals report that the late-afternoon queues outside their gates have been eliminated.

Appointments for Exports and Empties

Under the common business rules of the revised OffPeak program, all terminals provide appointments for picking up import containers. Over the past year, many terminals have also begun offering appointments for dropping off export and empty containers. These services make it easier to arrange dual transactions, with a single truck trip dropping off one container and picking up another one.

Of the 12 terminals, eight now offer appointments for exports and for empties.

“One of the advantages we expected from shifting to an appointments-based system was increased flexibility, allowing terminals to continue innovating to improve efficiency and meet evolving market needs,” Cushing said. “We are very pleased and encouraged to see this expectation being achieved.”

Same Day Canceling and Rebooking Capability

In another operational improvement, most terminals are now allowing same-day canceling and rebooking of appointments if an appointment is available. Terminals were able to make this enhancement through software modifications.

Also, one terminal has begun allowing trucking companies to make appointments for picking up containers several days before the ship docks, allowing truckers to better plan their workloads.

“The new appointment-based PierPass system is working, and we are encouraged that the terminals are responding to our recommendations for additional improvements to their appointment systems,” said Weston LaBar, CEO of the Harbor Trucking Association. “We continue working with PierPass and the terminals to make the container pickup and delivery process faster and smoother for truckers and their customers.”

By providing additional shifts during off-peak hours, PierPass has allowed the Ports of Los Angeles and Long Beach to make better use of their infrastructure and investments, allowing cargo volume to grow without negatively impacting traffic conditions.

Prior to the creation of PierPass in 2005, the two ports were struggling to handle cargo volume during the five existing shifts per week, causing severe traffic congestion. Significant capacity remains during the four additional shifts terminals are currently providing per week.

Appointments Remain Ample, No-Show Rate Holds Steady

During the third calendar quarter of 2019, a weighted average of 30% of available daytime appointments and 41% of available nighttime appointments went unused. This indicates that, on an aggregate basis, more than enough appointment slots are being made available by terminals.

When the program began last year, the percentage of no-shows (when the trucker fails to appear for an appointment) averaged between the mid-20s and the low-30s. For both of the past two quarters, no-shows were down to an average of 14% of peak-hour appointments and 15% of off-peak appointments, as terminals continued meetings and follow-up with trucking companies that repeatedly miss their appointments.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

PierPass Posts “2.0” Update Results

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One Third of Appointments Unused at LA/Long Beach Terminals Under Revised OffPeak Program

LONG BEACH, Calif., July 25, 2019—More than one third of available appointments for picking up or delivering cargo at the Ports of Los Angeles and Long Beach go unused, leaving cargo owners with many available choices of appointment slots, according to terminal data newly compiled by PierPass Inc.

The appointment systems are the core of the revised OffPeak program—informally called “PierPass 2.0” — for mitigating traffic congestion at the largest container port complex in the U.S. Second-quarter 2019 data from the 12 container terminals at the two adjacent ports shows that the appointment systems offer significant flexibility and availability for cargo owners. Terminals also report that they no longer have lines of trucks queuing outside their gates in late afternoons.

During weekday daytime shifts at the terminals, a weighted average from the 12 terminals shows that 64% of appointments were used, leaving 36% of available slots unused. The same data shows that utilization was lower during OffPeak shifts (weeknights or Saturday), when 55% of appointments were used and 45% left unused. Utilization rates at individual terminals varied reflecting differences in their volumes and operational models.

“Terminals continue to offer two appointment opportunities during the peak shifts and two appointment opportunities during the OffPeak shifts prior to the last free day for each container,” said John Cushing, president of PierPass, which manages the OffPeak program. “The large number of unused appointment slots shows that the system has substantial capacity to handle additional growth and offers significant flexibility in appointment times.”

The revised OffPeak program has succeeded in achieving the goals of the overhaul launched last November. These include providing a scalable technology with appointment systems and reducing afternoon truck bunching. Trucking companies had asked PierPass to address the buildup of trucks outside the terminals between 3:00 p.m. and 6:00 p.m. The trucks had waited for the start of the OffPeak shift at 6:00 p.m. to avoid the Traffic Mitigation Fee (TMF) previously charged only on peak-hour cargo moves.

Under the revised OffPeak program, a lower, flat TMF is now charged on both day and night shifts, removing the incentive for trucks arriving late in the afternoon to wait until 6:00 p.m. to take their cargo. The new appointment systems mitigate traffic flow to scheduled appointment windows instead of just between the two shifts.

“The late-afternoon queuing at the terminals has been eliminated,” Mr. Cushing said.

Terminals continue to caution trucking companies against waiting until the last free day to try to pick up a load. Those doing so might not be able to get an appointment on the last free day (the last day to pick up a container without incurring demurrage charges). Terminals recommend that users select from the appointment opportunities presented as soon as they are made available.

Terminals have been conducting outreach to work with truckers on using the appointment systems effectively. This has included ongoing meetings and follow-up with trucking companies that repeatedly miss their appointments.

At the start of the program, the percentage of booked appointments when the trucker failed to show up averaged between the mid-20s and the low-30s. Ports-wide in the second quarter, the average of no-shows has dropped to 14% during the first shift and 15% during OffPeak shifts.

In 2018, it cost terminals $288 million to operate night and Saturday shifts under the OffPeak program. The program collected $216.5 million in Traffic Mitigation Fees to partially offset the added costs.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

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FMC Clears PierPass to Start Revised OffPeak Program on Nov. 19

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LONG BEACH, Calif., Nov 15, 2018—The Federal Maritime Commission has cleared PierPass to launch its revised OffPeak program of extended gate hours at the Ports of Los Angeles and Long Beach beginning Monday, Nov. 19.

The revised OffPeak program, informally called PierPass 2.0, replaces the original OffPeak congestion-pricing model with a system using appointments to mitigate traffic. It uses a reduced Traffic Mitigation Fee (TMF) across all hours of terminal operation to help offset the cost of operating extended gates.

Cargo owners moving containers into and out of the ports by truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.

As previously announced, the current TMF of $72.09 per TEU (twenty-foot equivalent unit) will be reduced to $31.52 per TEU or $63.04 for all other size containers. The TMF will be charged during all shifts on all days.

PierPass set up the OffPeak program in 2005 to relieve severe congestion in and around the ports. It established new night and Saturday shifts during which trucks can move cargo containers to and from the terminals. The new changes to the OffPeak program are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts.

More information about the revised OffPeak program is available at https://www.pierpass.org/about/offpeak-2-0/. PierPass is the agent of the West Coast MTO Agreement (WCMTOA), a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach.

Revised PierPass OffPeak Start Expected Nov. 19 at Ports of Los Angeles, Long Beach

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The members of the West Coast MTO Agreement (WCMTOA) today said the revised OffPeak program for providing extended gate hours at the Ports of Los Angeles and Long Beach—informally known as PierPass 2.0—is expected to start on Nov. 19, subject to the conclusion of applicable Federal Maritime Commission procedures.

In April, PierPass announced it will overhaul the model used by its OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion-pricing model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.

For most port users, the new system won’t require new procedures, but rather an adjustment to current procedures. Most companies moving containers through the ports are already registered with PierPass to claim containers moved during Peak (weekday daytime) hours. Under the revised system, they will claim containers moved at any hour.

Because nine of the 12 terminals at the two adjacent ports already use appointment systems, most trucking firms serving the ports are already using these systems. The remaining three terminals, all operated by SSA Marine, are planning to launch their own appointment systems in advance of the implementation. As part of the program update, the terminals have also agreed on common appointment windows and common last appointment times for each shift. As the revised program moves forward, the terminals will consider further common rules and processes to enhance truck efficiency at the ports.

Cargo owners moving containers into and out of the ports by truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.

As previously announced, the current Traffic Mitigation Fee of $72.09 per TEU (twenty-foot equivalent unit) will be replaced by a new flat fee of $31.52 per TEU; the rate for all other size containers will be a flat fee of $63.04. The TMF charged only on Peak cargo moves will be replaced by a fee that is constant across all hours of operation. Other than that change, the same types of cargo will pay the fee.

The changes to the OffPeak program are being made in response to requests from port users, who seek increased flexibility and a reduction in the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts.

A Q&A about the revised OffPeak program is available at https://www.pierpass.org/wp-content/uploads/2018/10/QA-on-New-OffPeak-Program_10-11-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. WCMTOA’s members are the 12 marine terminal operators at the Ports of Los Angeles and Long Beach. For more information and to track continuing developments, please go to https://www.pierpass.org/about/extended-gates-review-process/.

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Revised PierPass OffPeak System Start Expected in Fourth Quarter

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LONG BEACH, Calif., June 26, 2018—The members of the West Coast MTO Agreement (WCMTOA) today said the revised OffPeak program for providing extended gate hours—informally known as PierPass 2.0—is expected to start in the fourth quarter of this year.

WCMTOA members—the 12 marine terminal operators at the Ports of Los Angeles and Long Beach—met on June 21 to address reporting requirements for the amendment to Marine Terminal Schedule No. 1, the document on file with the Federal Maritime Commission (FMC) under which WCMTOA operates.

In April, PierPass announced it will overhaul the system used by the OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion pricing model with an appointment-based system that uses a single TEU-based flat fee on both daytime and nighttime container moves.

On May 24, the FMC voted to issue a Request for Additional Information about the proposed amendment. WCMTOA members are currently working to gather the requested information. Once WCMTOA submits its response, the FMC will have another 45 days to analyze the amendment. The completion of this process revises WCMTOA’s projected program launch date, originally expected in August, to the fourth quarter of 2018.

A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to https://www.pierpass.org/about/extended-gates-review-process/.

PierPass to Adopt Appointment System and Flat Fee for OffPeak Program

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LONG BEACH, Calif., April 16, 2018—PierPass will overhaul the model used by its OffPeak program for truck traffic mitigation at the Ports of Los Angeles and Long Beach, replacing the current congestion pricing model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.

The members of the West Coast MTO Agreement (WCMTOA)—the 12 marine terminal operators at the two adjacent ports—reached the decision after an 18-month process of consultation with industry stakeholders, and an analysis and survey by industry consultants.

Port users have expressed a desire for changes to increase flexibility and reduce the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts. Subject to regulatory approval, the revised OffPeak program is expected to begin in August.

“The industry has been demanding ‘PierPass 2.0,’ and we are responding,” said PierPass President John Cushing. “The original OffPeak program was an innovative and highly effective solution to the challenges we faced in 2005. But it was fairly inflexible, whereas an appointment-based model is scalable and can evolve to meet changing industry needs, technology and practices.”

Under the current program, OffPeak charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use OffPeak shifts on nights and Saturdays. The revised OffPeak program will replace this two-tier fee structure with a single flat TMF during both shifts, and use appointments to spread traffic across the two shifts.

Applying the TMF to both day and night cargo will allow a reduction of more than 55 percent in the TMF while still providing funding to operate extended gates. The current TMF of $72.09 per TEU (twenty-foot equivalent unit) will be replaced by a new flat fee of $31.52 per TEU; the rate for all other container sizes will be a flat fee of $63.04.

“The Port of Long Beach is pleased with the progress PierPass has made in working with industry stakeholders to improve night gate operations in our terminals,” said Port of Long Beach Executive Director Mario Cordero. “As ships are getting bigger and volumes increase, efficient gate management is critical to our ability to move cargo in a reliable, predictable and expedient manner.”

“I’m pleased and encouraged that PierPass members are taking a significant step forward to improve efficiencies at the San Pedro Bay port complex,” said Port of Los Angeles Executive Director Gene Seroka. “We, as well as the trucking community and all of our stakeholders, look forward to increased cargo velocity and customer responsiveness at Port facilities.”

The process of reviewing OffPeak alternatives has included a series of meetings beginning with an October 2016 workshop where WCMTOA met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, elected officials, government representatives, port authorities and other supply chain stakeholders. After a series of subsequent stakeholder meetings to delve into potential alternative models, PierPass retained industry consultants to conduct a detailed analysis. The consultants’ findings were presented and discussed at a follow-up industry workshop on March 8, 2018. WCMTOA members then worked through the remaining issues to arrive at the final plan for the revised OffPeak program.

“The California Trucking Association appreciates the proposal put forth by PierPass regarding its re-structuring of the TMF,” said Alex Cherin, Executive Director of the CTA Intermodal Conference. “This is the culmination of many collaborative discussions between the marine terminal operators and trucking communities over the last few years, and we look forward to supporting these efforts.”

“The HTA has worked hard with our marine terminal colleagues to create a more efficient and environmentally sustainable port complex,” said Weston LaBar, CEO of the Harbor Trucking Association. “This new direction for PierPass is another example of cross-industry collaboration and is a giant step in the right direction. It shows that the San Pedro Bay Port Complex will continue to be the preferred gateway for moving America’s cargo.”

A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to www.pierpass.org.

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West Coast Cargo Stakeholders Review PierPass Extended Gate Alternatives

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SAN PEDRO, Calif., March 12, 2018 – More than 60 supply chain leaders gathered on March 8 to review the findings of an analysis of options for extended gate hours at the Ports of Los Angeles and Long Beach.

The Tioga Group Inc. and World Class Logistics (WCL) Consulting Inc. presented the results of their evaluation of two potential alternatives to the current model used under the OffPeak program managed by PierPass. Since 2005, the OffPeak program has mitigated traffic congestion caused by port truck operations by enabling and encouraging the pickup and delivery of containers on weeknights or Saturdays.

The two alternatives the study considered were appointments to control traffic flow, combined with a flat fee on both daytime and nighttime cargo moves; and port-wide peel-off, in which trucks would operate like taxis in an airport queue, each truck picking up the next container in the stack, providing minimal turn times.

Among the findings of the Tioga/WCL study were:

  • Appointment systems are a more effective way to manage truck flow and terminal workload
  • The current incentive fee on Peak (daytime) containers moves could be replaced with a flat fee on both days and nights to function better with appointment systems and eliminate issues related to the shift change
  • While a port-wide peel-off system received little support from truckers and cargo owners, integrating a conventional peel-off option along with an appointment system would give terminals an additional tool to reduce turn times and accelerate the velocity of freight

The March 8 Tioga/WCL presentation is available at https://www.pierpass.org/about/extended-gates-review-process/.

The members of the West Coast MTO Agreement (WMCTOA) – the 12 marine terminal operators at the Los Angeles and Long Beach ports – will now review the recommendations and feedback from the March 8 meeting participants and determine how to proceed. A decision is expected to be announced within several weeks.

WCMTOA’s agent PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. 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 on nights and Saturdays. Proceeds from the TMF help offset increased labor and other costs associated with operating the OffPeak shifts.

More than 40 million truck trips have been diverted out of weekday daytime traffic in the Los Angeles area since the program began, dramatically decreasing congestion on the region’s streets and highways and contributing to the clean air initiatives of the ports and the State of California.

While the OffPeak program has been very successful in meeting its goal, port users have expressed a desire for changes – which some have called “PierPass 2.0” – to increase flexibility and to address the bunching up of trucks that often occurs before the start of the OffPeak shifts.

The process of reviewing OffPeak alternatives has included a series of meetings beginning with an Oct. 2016 workshop where WCMTOA met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, elected officials, government representatives, port authorities and other supply chain stakeholders. Subsequent meetings to address the issues surrounding the alternative models were held with the 40 supply chain stakeholders who together comprise the PierPass Advisory Committee (PPAC) and the Extended Gates Subcommittee (EGS). The Tioga study was one of the outcomes of this process.

The West Coast MTO Agreement is filed with the Federal Maritime Commission. For more information and to track continuing developments, please go to www.pierpass.org.

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PierPass Retains Tioga Group to Evaluate Extended Gate Options

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LONG BEACH, Calif., Nov. 6, 2017—PierPass has retained the consulting firm The Tioga Group Inc. and its partner World Class Logistics (WCL) Consulting Inc. to evaluate alternative models for providing the traffic mitigation benefits of extended gates at the Ports of Los Angeles and Long Beach, which are offered through the OffPeak program.

Tioga will analyze the traffic, commercial and operational impacts of two potential alternatives to the current model used by OffPeak, which mitigates traffic congestion caused by port truck operations through encouraging the pickup and delivery of containers on weeknights or Saturdays.

Tioga, based in Philadelphia, has extensive experience analyzing operational issues for North American freight transportation, producing reports including the Cargo Handling Cooperative Program’s “Improving Marine Container Terminal Productivity,” the National Cooperative Freight Research Program’s “Truck Drayage Productivity Guide,” and numerous planning studies for individual West Coast ports. WCL has deep experience working with cargo owners, ports, railroads and other goods movement groups.

The two alternatives under consideration are appointments to control traffic flow combined with a flat fee on both daytime and nighttime cargo moves; and port-wide peel-off, in which trucks would operate like taxis in an airport queue, each truck picking up the next container in the stack. Hybrid models may also be considered.

PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. 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 on nights and Saturdays. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts. PierPass manages the OffPeak Program as the agent of the West Coast MTO Agreement (WCMTOA), comprised of the 12 marine terminal operators (MTOs) at the two adjacent ports. More than 40 million truck trips have been diverted out of weekday daytime traffic in the Los Angeles area since the program began in 2005, dramatically decreasing congestion on the region’s streets and highways.

Hiring Tioga is an important step in the process through which the WCMTOA members are working with other industry stakeholders to review alternative methods to provide the benefits of extended gates. An alternative model must continue to spread truck traffic across the terminals’ daytime and nighttime shifts of operation, while continuing to fund the operation of extended gates.

The process has included a series of meetings that began at a workshop where WCMTOA met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, elected officials, government representatives, port authorities and other supply chain stakeholders. Subsequent meetings to address the issues surrounding the alternative models were held with the 40 supply chain stakeholders who together comprise the PierPass Advisory Committee (PPAC) and the Extended Gates Subcommittee (EGS).

Participants have highlighted a range of operational and commercial issues for consideration. In early May, participants recommended hiring a consulting firm to conduct a detailed analysis of the two remaining options. An RFP was issued to four consulting firms recommended by the working groups. Members of the PPAC and EGS participated in the scoring process to assist WCMTOA with its final selection of Tioga. Recommendations and a final report are expected during the first quarter of 2018.

PierPass OffPeak Diverts 40 Million Truck Trips from Los Angeles Traffic

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LONG BEACH, Calif., July 26, 2017—PierPass Inc. today announced that its OffPeak program has diverted more than 40 million truck trips out of weekday daytime traffic in the Los Angeles area since the program began 12 years ago this week.

The OffPeak program’s reduction in traffic congestion has also removed hundreds of tons of pollution from the region’s air, a major contribution to efforts by the cities of Los Angeles and Long Beach to cut pollution from the San Pedro Bay port complex.

“In southern California, heavy-duty trucks are the single largest source of both the pollutants that cause smog and exposure to toxic diesel particulates,” said Wayne Nastri, Executive Officer of the South Coast Air Quality Management District. “By reducing the amount of time that trucks spend trapped in terminal queues or traffic jams, OffPeak has made a big contribution to addressing our region’s air pollution problem.”

Without the OffPeak program, more than 12,600 additional truck trips would be jammed into local traffic every weekday between 8:00 a.m. and 5:00 p.m., enough trucks to stretch nearly halfway from Los Angeles to Las Vegas if lined up bumper-to-bumper. The OffPeak program creates weeknight and Saturday shifts for trucks delivering containers to and from the ports, offers a congestion pricing incentive to reduce weekday daytime truck trips, and provides funding for the new shifts.

“Efficient goods movement enables a crucial jobs engine for Southern California’s economy to continue thriving,” said Rep. Duncan Hunter (R-Calif.), Chair of the House Subcommittee on Coast Guard and Maritime Transportation. “The PierPass OffPeak program seeks to maximize the efficient use of existing transportation infrastructure and demonstrates the potential for private-sector innovation to tackle public policy problems. I encourage stakeholders to continue working together to strengthen the program to ensure goods can move as efficiently and safely as possible.”

OffPeak was conceived after a surge in cargo volume in the early 2000s led to severe traffic congestion and its associated air pollution in and around the Ports of Los Angeles and Long Beach. Local communities and political leaders demanded that the ports take action to address the problem. OffPeak was created with the support of cargo owners, the ports and political leaders.

“Over the last 12 years, OffPeak had diverted more than 40 million trucks off our roads and freeways during the busiest times of the day,” said David Pettit, Senior Attorney at the Natural Resources Defense Council. “By reducing truck congestion at the marine container terminals and on the Harbor and Long Beach Freeway, the program has helped reduce pollution and increase mobility for the communities in and around the ports.”

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PierPass Will Retain Consultant to Evaluate Extended Gate Options

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LONG BEACH, Calif., May 12, 2017—PierPass will retain a transportation consulting firm to evaluate the operational, business and traffic impacts of two alternative models for providing extended hours for truck gates at the marine terminals in the Ports of Los Angeles and Long Beach.

The PierPass Advisory Committee (PPAC) and the Extended Gates Subcommittee met last week to review industry feedback received on two alternative models to the current OffPeak program and to identify key issues for the consultant to investigate.

The May 4 meeting continued a process that began at the Extended Gates Workshop held on Oct. 20, 2016, when the 13 marine terminals that comprise the West Coast MTO Agreement (WCMTOA) met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, government representatives, port authorities and other stakeholders.

Since then, the PPAC has held a series of meetings to review proposed models and make a recommendation to WCMTOA, which is responsible for deciding on any changes to the OffPeak program.

The three alternatives initially proposed were variable and dynamic pricing, under which the Traffic Mitigation Fee would be higher in times of high gate activity and lower in times of low gate activity; a lower flat fee applying to both day and night moves, with appointment systems to help regulate traffic flow; and port-wide peel-off, in which trucks would operate like taxis in an airport queue. Variable and dynamic pricing was subsequently eliminated from consideration. For more information on these models, see https://goo.gl/Vxi89y.

Since the Oct. 20 meeting, the following steps occurred:

  • On Nov. 3, detailed notes from the Oct. 20 meeting, including pros and cons of each model, were distributed to PPAC members and additional feedback was requested. Those notes became the original basis for the recommendations report being developed by the PPAC.
  • The PPAC met on Dec. 8 to begin developing the recommendations report. Participants reviewed industry feedback received and offered additional points of view. At this meeting, the variable and dynamic pricing model was removed from consideration as it had received no industry support.
  • On Feb. 1, an initial version of the recommendations report drafted by PierPass staff was distributed to PPAC for review and feedback.
  • The PPAC met on Feb. 22 to review the initial draft and collect feedback. At that meeting, participants discussed the need to bring in a third-party consultant to analyze the ideas under consideration, due to the complexity and possible side effects of these changes.
  • On March 15, a revised draft of the report was sent to the Extended Gates Subcommittee for review and feedback. This draft included the recommendation to hire an industry consultant.
  • Committee members submitted input by April 14.
  • On May 4, PPAC and the Extended Gates Subcommittee met to review the recommendations, develop the scope of work to be included in a Request for Proposal (RFP) for consulting firms, and take recommendations for specific consulting firms.

Participants in the May 4 meeting agreed that the consultant should define and maintain a strict schedule of meetings and reports. The group will endeavor to have the RFP released within the next two months. The RFP may request deliverables such as:

  • Evaluation of the ability of a port-wide appointment system to maintain a roughly even split between day and night traffic.
  • Recommendations on how dual transactions (dropping off one container and picking up another during a single truck visit) could be facilitated under each alternative system.
  • Recommendations for handling regulatory, compliance and other challenges to implementing a port-wide peel-off system.

The PierPass Advisory Committee includes more than 25 leaders representing cargo owners, trucking companies, brokers, terminal operators and other stakeholders. The Extended Gates Subcommittee includes 15 additional industry stakeholders who volunteered at or after the Oct. 20 meeting.

PierPass launched the OffPeak program in 2005 to reduce severe cargo-related congestion on local streets and highways around the Los Angeles and Long Beach ports. 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 on nights and Saturdays. The TMF also helps pay for the labor and other costs of operating the OffPeak shifts.

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