Port of Los Angeles Approves Clean Truck Concession Agreement (Includes Employee Driver Transition Plan)
On May 15, 2008, the Los Angeles Harbor Commission approved the Clean Truck Program (CTP) Drayage Services Concession Agreement, which paves the way for the Port of Los Angeles to begin the transition to a Licensed Motor Carrier-based truck concession program beginning October 1, 2008.
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(LA Port sources note that this agreement builds on the CTP that was approved by the Commission on March 20, 2008.)
Highlights of the Concession Agreement
According to a fact sheet on the Concession Agreement, the Port of LA will grant five year renewable concessions to Licensed Motor Carriers (LMCs) who (partial list):
- Provide a plan to complete a phased transition to have 100% of their contracted drayage moves handled by employee drivers within 5 years (see below for transition schedule)
- Pay a one-time application fee of $2,500 and fees of $100 per truck annually
- Use trucks for drayage that meet US EPA 2007 heavy duty truck emission standards
- Register their drivers and trucks with the Port's Drayage Truck Registry database
- Ensure compliance with all applicable security regulations, including Homeland Security requirements and use of drivers that have enrolled in the federal Transportation Worker Identification Credential (TWIC) program
- Agree to use First Source Hiring Program which gives preference to local drivers, and those with previous drayage service at the Ports
- Agree to affix vehicles with radio-frequency identification devices (RFID) and affix 1-800 placards
- Agree to incorporate future efficiency and technology advances (e.g. virtual container yard)
Employee Driver Transition Schedule
The employee driver concession includes the following transition period schedule:
| December 31, 2008 | 0% |
| December 31, 2009 | 20% |
| December 31, 2010 | 66% |
| December 31, 2011 | 85% |
| December 31, 2012 | 95% |
| December 31, 2013 | 100% |
See the Port of LA's fact sheet for additional information on truck funding, the Clean Truck Fee, cargo fee exemptions, the scrap truck buyback program, etc.
(See ITT's Online Archives or 03/24/08 news, 08032405, for BP summary of the Port of LA approval of the CTP, including the truck concession component.
See ITT's Online Archives or 12/21/07 news, 07122105, for BP summary of LA/LB approving the Clean Trucks fee. See ITT's Online Archives or 01/16/08 news, 08011605, for BP summary of LA/LB approval of the infrastructure cargo fee.)
Fact sheet on Concession Agreement (dated 05/15/08) available at http://www.portoflosangeles.org/CAAP/CTP_Fact_Sheet.pdf
Press release on the CT Drayage Services Concession Agreement (dated 05/15/08) available at http://www.portoflosangeles.org/News/2008/news_051508ctp.pdf
Additional CTP information (fact sheets, FAQs, etc.) available at http://www.portoflosangeles.org/environment/ctp.asp
BP Notes
The Federal Maritime Commission has held closed meetings on the Los Angeles/Long Beach Port/Terminal Operator Administration and Implementation Agreement (No. 201178), which would allow terminal operators to assist or cooperate in the administration of the LA/LB CTP. (See ITT's Online Archives or 05/06/08 news, 08050605, for most recent BP summary.)
In addition, the Pacific Coast Council of Customs Brokers and Freight Forwarders Association met with the FMC on May 19, 2008 on such issues as equipment shortages in the export trades and marine terminal issues. (FMC release, dated 05/21/08, available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=245)