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July 23 2018

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28 The Journal of Commerce | July 23 2018 Government a portwide truck reservation system with common rules, expand the use of container free flow (also known as peel-offs), and expand the use of information technology tools to enhance cargo velocity. The National Retail Federation (NRF), one of many organizations representing BCOs that submitted comments to the FMC during the review period, believes WCMTOA's effort to revise PierPass was too narrowly focused and was mov- ing forward too quickly. The NRF, which submitted more than five pages of comments during the FMC public comment period, feels the fee proposal is fatally flawed because it is based on a fee imposed by the ter- minal operators on BCOs, and those parties have no direct business rela- tionship with each other. "We don't think this is the right approach," said Jonathan Gold, vice president of supply chain and public policy. The PierPass extended gates program was developed in 2005 as a way to relieve traffic congestion on Southern California roads and freeways by pushing some of the port traffic, which exceeds 30,000 truck moves per day, from the 8 a.m. to 5 p.m. shift to night shifts from 6 p.m. to 2 a.m. This congestion pricing model worked, and for years now truck moves have been split roughly 50-50 between the day and night shifts. PierPass accomplished this by imposing a traffic mitigation fee on daytime truck moves, but no fee on BENEFICIAL CARGO OWNERS (BCOs) and truckers say they support a delay in implementing a proposed change in the PierPass fee structure from August until the fourth quarter because it should result in a more equitable ex- tended gates program for all port users in Los Angeles-Long Beach. The West Coast Marine Terminal Operators Association (WCMTOA), which created PierPass Inc. to manage the extended gates program in the largest US port complex, said its original intention to shift from a congestion-based pricing model to a flat fee in August is being delayed because of the Federal Maritime Commission (FMC) regulatory review process now under way. The FMC in April initiated a 45- day review process of the so-called PierPass 2.0 program. During that process, BCOs, truckers, and other port users submitted comments on the proposal. The FMC reviewed the public comments, and on May 24 issued a request to WCMTOA for additional information. John Cush- ing, president of PierPass Inc. who is also head of WCMTOA, said in June the terminal operators are providing their answers to WCMTOA, and he will submit that information to the commission when all 12 container terminal operators in Los Ange- les-Long Beach have responded. FMC spokesperson John DeCros- ta said that when WCMTOA submits the information that has been requested, the commission will have up to 45 days to make a decision. The FMC will either take no action, which means the proposed PierPass 2.0 flat-fee model will take effect, or the commission will seek an injunction. Southern California truckers see efforts to replace the original PierPass extended gates program, which began operations in 2005, as part of a larger effort under way in Los Angeles-Long Beach to develop Equity opportunity? Truckers and BCOs back FMC delay in revamped PierPass fee structure By Bill Mongelluzzo 2,400,000 2,500,000 2,600,000 2,700,000 2,800,000 2,900,000 3,000,000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 TEU LA-LB growth accelerates Source: IHS Markit © 2018 IHS Markit +4.7% +4.3% +2.5% +2.7% +5.6% Los Angeles-Long Beach laden import and export container volume with year-over-year change International | Washington | Customs | Security | Regulation

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