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PierPASS Launches OffPeak Program Today at Los Angeles and Long Beach Ports

Posted on: Saturday, 23 July 2005, 15:00 CDT

PierPASS Inc. today launched the OffPeak program at the Ports of Los Angeles and Long Beach, starting port-wide night and Saturday shifts to tackle congestion caused by fast-growing cargo volumes.

Today's launch culminates two years of consultation, planning, systems development, and outreach. Communities near the ports support this innovative private-sector solution as a way to move a portion of truck traffic off congested daytime highways, while cargo owners back the program in order to avoid costly supply-chain disruptions. The 39% surge in cargo volume between 2000 and 2004 has made business-as-usual an impossibility.

The OffPeak program will also lead to between 350 and 550 new unionized jobs at the terminals for the International Longshore and Warehouse Union, and will enable higher earnings and better working conditions for port truck drivers.

"The largest port complex in the United States is once again leading the way with innovative solutions," said PierPASS Inc. President and CEO Bruce Wargo. "This monumental shift in port operations is necessary to keep our economy moving, while improving traffic and air quality conditions around the ports."

Together, the two adjacent ports -- a complex of marine terminals spanning the border between Los Angeles and Long Beach -- handle more than one-third of all containerized imports to the United States. Cargo volume at the two ports grew 14% in 2004 alone.

Beginning today, a Traffic Mitigation Fee will be charged for cargo movement through the ports during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.). The proceeds of the fee will be used to open the terminal gates four nights per week and on Saturdays.

Since May 23, more than 5,450 port users (importers, exporters, trucking companies, and others) have registered with PierPASS.

PierPASS is aiming to shift 15 to 20 percent of all cargo movement to OffPeak shifts by the end of the first full year of operation, with a target of 40 to 45 percent in three years.

Widespread Support for OffPeak

"The PierPASS OffPeak program is the only immediate solution to tackle traffic congestion and improve air quality in the Harbor Area and throughout Los Angeles," said Los Angeles City Councilwoman Janice Hahn, who has been an advocate of off-peak goods movement and whose district includes the Port of Los Angeles. "Commuters on our freeways, residents of our Harbor Area communities, shippers that can move goods all night long and elected officials that believe in the off-peak movement are all hopeful that the program will be a great success."

California State Senator Alan Lowenthal said, "The PierPASS program, as a response to my Assembly Bill 2041, is an example of a successful industry response to potential legislative remedies. I commend and congratulate the visionary leadership of PierPASS. I certainly recognize that this is a new business practice and that more needs to be done by all stakeholders to evaluate and modify this effort for the common good. An effective OffPeak Program will benefit all impacted sectors."

"California's economy and quality-of-life depend upon the efficient, safe delivery of goods to and from our ports," said state Business, Transportation and Housing Agency Undersecretary Barry Sedlik. "The PierPASS OffPeak Program will help address needs to move more goods and also help to reduce traffic congestion."

Rick Gabrielson at Target Stores said, "The OffPeak program is a crucial effort by the industry to address congestion in the Southern California region. We support the efforts by PierPASS to address these problems through the OffPeak program."

"American Chung Nam supports the extended hours offered by the OffPeak program as it will help ensure that goods will flow more smoothly through the Ports of Los Angeles and Long Beach," said Tony Cheng, Vice President of Exports at American Chung Nam, a wastepaper exporter and one of the largest exporters in the United States.

Port of Long Beach Executive Director Richard D. Steinke said, "OffPeak is a major cooperative effort by the marine terminal operators and the other stakeholders of the logistics chain -- a program that will ease traffic congestion and improve air quality while still meeting the ever-growing demands for international trade."

Interim Executive Director of the Port of Los Angeles Bruce E. Seaton said, "OffPeak offers the industry a number of advantages as we partner to help reduce air emissions and traffic congestion in the harbor area. The extended gates program creates job opportunities here in the San Pedro Bay ports, while also taking an aggressive step in finding ultimate solutions to our growing supply chain volume."

"The OffPeak program is the first credible plan we've seen to address congestion near the ports," said Patricia Herrera, President of Pro-West Neighbors United, a neighborhood association in West Long Beach. "We hope that all members of the transportation industry will support the program and help the ports to better co-exist with their neighbors."

Executive Director Robin Lanier of the Waterfront Coalition, a national organization representing shippers, said, "The Waterfront Coalition believes that off-hour truck gates are the way of the future because they will help increase port capacity without large expenditures of public or private money. We encourage all stakeholders to make the commitment to maximize the benefits that PierPASS offers, because maintaining business as usual is not an option."

"We are optimistic that OffPeak will provide the necessary incentive to change the way we do business in order to stay competitive in the global economy," said John Doherty, Chief Executive Officer of the Alameda Corridor Transportation Authority.

OffPeak Enables Higher Earnings, Better Working Conditions for Truck Drivers

Along with tackling port congestion and air pollution problems, OffPeak addresses key problems faced by port truck drivers. Most drivers in the port are paid according to the number of turns (round trips) they complete in a shift. Five years ago, drivers were typically able to complete three turns per shift, but increased congestion has cut the average turns per shift to two, dramatically curtailing driver earnings. In addition, drivers face long waits in stop-and-go traffic as they inch their way into the terminals to pick up or drop off containers.

While PierPASS has no control over driver pay and benefits (drivers work for cargo owners and their agents, not for the marine terminals), PierPASS believes the OffPeak program will foster higher driver earnings by enabling them to complete a greater number of turns during OffPeak shifts. In addition, PierPASS has been told by trucking companies that they are looking at additional incentives for drivers to haul containers during the OffPeak shifts.

Other expected benefits to drivers include reduced exposure to air pollution during stop-and-go traffic and higher fuel economy from driving at nighttime highway speeds.

How OffPeak Works

Beginning today, July 23, all international container terminals at the Los Angeles and Long Beach ports will start OffPeak shifts on nights and weekends. Starting on Monday, July 25, a Traffic Mitigation Fee will be required for cargo movement through the ports during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.), with certain exceptions.

The fee has been set at $40 per TEU (20-foot equivalent unit), or $80 for all containers larger than a 20-foot unit. The fee will help fund five new OffPeak shifts per week (Monday through Thursday from 6:00 p.m. to 3:00 a.m. and Saturday from 8:00 a.m. to 6:00 p.m.).

The OffPeak registration and payment systems were developed and are being operated by ACS, a premier provider of business process and information technology outsourcing solutions. ACS also operates FasTrak and E-ZPass, the electronic toll collection systems in California and the northeastern United States. ACS processes more than 1.4 billion toll transactions per year and collects more than $2.7 billion in toll revenue on behalf of its clients.

"Just as FasTrak and E-ZPass keep traffic flowing on toll roads, the PierPASS OffPeak program will help unclog the chronic congestion around the ports," said Michael Huerta, Managing Director of ACS' Transportation Systems and Services line of business. "We are honored to contribute to this important program."

About PierPASS

PierPASS is a not-for-profit company created by marine terminal operators to reduce congestion and improve air quality in and around the Los Angeles and Long Beach ports. Detailed information on PierPASS, the OffPeak program, the Traffic Mitigation Fee (including who must pay it, when it must be paid, payment methods, and credit account information) is available at www.pierpass.org.

Source: Business Wire

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