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June 11 2018

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6 The Journal of Commerce | June 11 2018 Spotlight PierPass pressure persists Beneficial cargo owners (BCOs), elected officials, and the Port of Long Beach agreed in comments submitted to the Federal Maritime Commission (FMC) that revisions are needed to the 13-year-old PierPass extended-gates program in Southern California, but a proposal to replace the current congestion pricing model with a flat traffic mitigation fee (TMF), coupled with a mandatory appointment system, continues to be a main source of disagreement. Target Corp. urged the FMC to reject the West Coast Marine Terminal Operators Agreement (WCMTOA) proposal for "PierPass 2.0." Target, the second-largest US importer with 590,300 TEU in 2017, said BCOs should not have to pay terminal operators for the costs they incur in running night and weekend gates in the largest US port complex. Rather, the terminals should negotiate reimbursement for those costs with their direct customers, the ocean carriers, stated David Davis, senior director, inbound logistics, in a filing with the FMC. Samsung SDS (America), the sixth-largest importer with 184,000 TEU, supports WCMTOA's proposal to restructure PierPass. "We would like to see the changes in place before peak season," the company stated in its letter to the commission. Southern California members of the US House of Representatives, Rep. Alan Lowenthal, D-Calif., and Rep. Nanette Diaz Barragán, D-Calif., also urged FMC approval, while the Port of Long Beach took the middle ground. Long Beach agreed with the goals of the revised extended-gates program, but said the review period should be extended to allow additional study of the impact the changes will have on BCOs. PierPass manages the extended-gates program on behalf of the 12 members of WCMTOA. John Cushing, president, told The Journal of Commerce the terminals in October 2016 expanded their effort to make the program more responsive to BCOs and truckers in the face of record container volumes by bringing more stakeholders into its advisory committee. The WCMTOA is committed to maintaining a full schedule of night and weekend gates in order to mitigate congestion in the largest US port complex, he said. The proposal to change the TMF model to a flat fee, coupled with appointment systems at all 12 terminals, represents a majority view of the advisory committee stakeholders, Cushing said. Given the disagreements that continue to exist, the Port of Long Beach urged the commission to extend the comment period "to ensure that the concerns raised by the cargo owners are addressed prior to implementation." The port stated that the WCMTOA proposal attempts to address the three major service issues BCOs have raised, namely the excessive truck queueing during shi changes, the difficulty truckers have in arranging dual transactions, and a need to "better balance the funding gap that terminal operators have reported exists under the current program." Lou Anne Bynum, president of the Board of Harbor Commissioners, said it is best not to rush into implementation of the new program. "We believe that addressing these concerns ahead of implementation will provide greater transparency to the process and ensure a smooth and successful implementation of WCMTOA's proposed changes." Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Barbara Wyker 908 777 3217, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo West Coast 562 428 5999, Hugh Morley Northeast, Mexico 646 679 3475, Eric Johnson Technology 213 444 9326, Greg Knowler Europe Editor, Maritime & Trade, IHS Markit +44 7976798770, Turloch Mooney Global Ports, Maritime & Trade, IHS Markit +852 9011 9109, Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, Web Editor: Joseph Lazzaro 917 309 0148, Data Analyst: Dustin Braden 646 679 3450, Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 Senior Designer: Sue Abt, 862 371 3534, Designer: Bryan Boyd, 908 910 7849, Publisher: Tony Stein, 770 295 8809, Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Managing Director, Media and Events, Maritime & Trade, IHS Markit, Rhiannon James Senior Director, Content, Maritime & Trade, IHS Markit, Peter Tirschwell Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, The Journal of Commerce

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