US DOT Creates National Freight Policy Council

At Wednesday's RAMP meeting, Carl Seip from Senator Maria Cantwell's office gave an overview of updates on federal transportation policy.

With MAP-21 passing earlier this year, the federal government established a national freight policy and called for the creation of a National Freight Strategic Plan.  However, until recently, there was no clear body implementing these provisions.

Two weeks before the RAMP meeting, U.S. Transportation Secretary Ray LaHood and Senator Cantwell came to Puget Sound to announce the the creation of the Freight Policy Council.  The Council will include leaders on highways, rails, ports, and airports with the goal of bringing all modes together to keep the United States' competitive and increase exports.

The full press release from the US Department of Transportation can be found here: http://www.dot.gov/affairs/2012/dot9812.html

TATS Brown Bag

TATS (Tideflats Area Transportation Study), begins its public involvement opportunities with a Brown Bag Luncheon on Sept. 9 (see enclosed flyer). 

The TATS will examine conditions and ideitify roads to potential improvement to keep freight moving. This study is most important to the success of our economy as the port-industrial area is the heart of our economy. 

Please note that if you are unable to attend, the event will be hosted via the web.  For details on the webinar contact Kell McAboy. 

click on image for a large view

Tideflats Area Transportation Study

The Port of Tacoma has established a webpage for the Tideflats Area Transportation Study.

The Tideflats Area Transportation Study will identify future transportation needs for the growth of freight-related traffic to and from the Tacoma Tideflats area.  The study will analyze existing transportation conditions and identify roads to be examined for potential improvement to keep freight moving.

Ramps to link SR 509 to Foss Peninsula

A presentation presented at last week’s RAMP meeting illustrates preliminary plans to better connect SR 509 to “D” Street on the Foss Peninsula. The proposal, a partnership between the Puyallup Tribe, BNSF, SSA Marine and the City of Tacoma would improve freight access to BNSF’s main rail yard.

The cost of the project is estimated to be $19 million. Construction could begin in late 2010 if all identified funds are secured.

Ramp Takes Leap

Last week, the spectrum of funding partners took shovels in hand for the official groundbreaking for the Lincoln Avenue Grade Separation.

Photo: Kathy Tomandl, Port of Tacoma

Nowadays, no ONE builds transportation infrastructure. And last Friday's ceremony demonstrated the collaborative effort that results in success.

As the Port says on their website: Although local in nature, this project offers economic benefits for both Washington state and the nation. Tacoma is a gateway port, and much of the cargo moving through here is bound for inland markets such as Chicago and New York.

Upon completion, the grade separation will significantly improve rail and road efficiency and will also enhance air quality.

Most Popular Pavings - Good Intentions

Paula Hammond, Secretary of the Washington State Department of Transportation (WSDOT), was featured at today's Transportation Club of Tacoma meeting.

Her presentation could be considered a lament. She recounted her first day of the job, when the Milwaukee bridge collapsed that lead directly to WSDOT's decision to close the Murray Morgan Bridge. Then, she recalled the first (of three) floodings of I-5 that lead to miles of truck-trailers queued with no alternative routes. And, she talked of a funding tie between cents per gallon and a declining gas sales/miles driven both because of consumer behavior changes and recessionary responses. And, let's not even get started on the state's ferries!

She did point to the $10 billion of projects just in the Puget Sound area, with another $5 billion in other parts of the state. Of 391 projects at the beginning, 183 are completed, 82 are under construction and 22 are about to go into construction. For anyone who wants to check up on their particular interest in a project(s), go to their website.

Q's from the audience covered a wide range of topics, but the most popular subject seemed to be SR-167. In response, Hammond noted that the corridor lost its funding proposal with the failure of Proposition 1. Now that transit has passed its expansion measure, the region is left without addressing its road future. The legislature has funded a tolling study for the completion of SR-167, to measure revenue potential and traffic diversions. SR-167 remains a hot topic, not because of the HOT Lanes tolling in the HOV lanes, but because of the new threat to flooding from failures in the Howard Hanson Dam.

All this and more makes one wish for debates of old when road surfaces were evaluated for quieter performance versus cost-effective permanency.

Repeating the Course: The Way of the Port

Port Presents Economic Situational Analysis

The Port of Tacoma posed for itself a difficult task: Meeting the Challenges of the Global Economic Change, for today's breakfast forum at the Hotel Murano - and it was answered admirably.

No one can claim an unclouded crystal ball into the future or in wholehearted recommendations on a definitive response. The keynoter Walter Kemmsies, Chief Economist, Moffatt & Nichol (who was most recently here for the Northwest Intermodal Conference May 19, 2008) did a creditable job in explaining the why's of getting here, the what's of here and the when's of a forecast. He recommended all to FDIC Commissioner Sheila Bair, who had identified the challenges to our economy several years ago, but lambasted other policy leaders who instead got us to where we are now.

In summary, his forecast:

• Near Term: we are starting a "low" bounce, becoming "less bad." We don't immediately go from "horrible to good."


• Mid Term: remember the economists' question at the beginning of the recession was would our recovery be graphed as a "U" or as a "V"? Seems now the recovery is thought to be a "W" for recovery by 2012, given the ability to manage the money supply to fit the economic trends.


• Long Term: is cautiously optimistic for 2012+. NOTE NOW: Some very knowledgeable and well-placed industry panelists during the later panel Q&A session expressed recovery by 2011 or even late 2010.

Kemmsies also reminded that globalization is about profit maximization, not cost minimization. Longer term trends he identified:

• INTENSE competition for the PNW


• the containerization of commodity goods.


• Mexico as a potential product customization nexus for both American continents


• No one is asking why Latin America doesn't have a recession

My recommendation: Go next year!

Getting Twitchy about TWIC

The Puget Sound chapter of the National Defense Transportation Association's (NDTA) February meeting about Transportation Security & TWIC filled the Port of Tacoma's meeting room at the Fabulich Business Center today.

Doubtless, with this Saturday's imposition of the TWIC (Transportation Workers Identification Credentialing), all those with maritime interactions are realizing preparatory time is fast running out. Given the questions from attendees to the panelists:

• Dennis Hedlund, General Freight Services, emcee
• LT Jennifer Osburne, USCG
• Marvin Ferreira, APM Terminals
• Lydia Reeves, Carlile Transportation
• Rand Lymangrover, TOTE

....whatever preparation remains to be done is only matched by concern about how things will actually work.

By way of background, panelists swagged that 32,000 TWIC cards were estimated to be necessary regionally when the program was envisioned. To date, 31,286 cards have been activated, 3,340 are ready for activation. Of those, the Seattle administering office will be issuing either first or second notices for pickup.

For those concerned about past transgressions, panelists stated there were only four offenses that would permanently disqualify someone from receiving a card:

1. espionage
2. sedition
3. treason
4. terrorism

It was stated that of the pool of ~950,000, only 113 have been disqualified. And, given this late date before first implementation, it was estimated that cards could be received in 3 days - two weeks by native-born, U.S. citizens with clean records. Otherwise, background checks would typically take ~ two months.

And how will it all work for those showing up without TWIC cards, for foreign citizenry workers, ships crews, one-time delivery or pickup (by individual citizens or out-of-state, long-haul truckers), etc. - it all depends on the individual facility's USCG-approved security plan.

If you show up Saturday not TWIC-carded, prepare for delays and potentially refusals to accept or deliver cargo. The TWIC Help Desk is 1-866-347-8942.

Workers are able to pre-enroll for TWIC online or the Coast Guard's Homeport site. Pre-enrolling speeds up the process by allowing workers to provide biographic information and schedule a time to complete the application process in person. This eliminates waiting at enrollment centers and reduces the time it takes to enroll.

Farrell Reviews Port of Tacoma Activity

Port of Tacoma Executive Director Tim Farrell was the guest speaker at February’s Transportation Club of Tacoma luncheon at C.I. Shenanigan’s on Monday. Farrell provided an overview of Port activity, emphasizing that despite the current economic climate the Port of Tacoma is still planning for future growth.

In general, carriers are seeking to reduce costs during this period by increasing efficiencies; decreasing ships, increasing ports and consolidating to share capacity on ships and in terminals. Although the Port of Tacoma experienced a 3.2% reduction in cargo activity in 2008, comparatively, nationwide Port cargo has dropped by 6.8%. The decrease at the Port of Tacoma is due in part to Mersk and K-line consolidations that have resulted in reduced use of their Tacoma facilities.

On the other hand, some unique characteristics of the Port of Tacoma help keep it competitive. The port has been working for the last thirty years to bolster its intermodal cargo infrastructure, which enables a quick cargo transfer from ships to rail cars. Union Pacific Railroad, in particular, is exploring opportunities to increase its Pacific Northwest operations via the Port of Tacoma as a result of this infrastructure. Similarly, the Port’s strong trade relationships with Alaska, Hawaii, Guam and trade-dependant Pacific Rim countries continue to fuel the Port’ container and bulk auto activities.
Currently the Port is working with NYK Lines to build a new terminal in the Port. Depending on the depth of the economic downturn, the new terminal is scheduled to open in July 2012, bringing 3,000 high paying jobs to the region once the project is fully built out.

Overall, Farrell is optimistic about the Port of Tacoma’s ability to ride out the current economic crisis and anticipates an economic recovery for the Port by 2012.

Bluest Skies You've Ever Seen Are in Tacoma

Carlile Transportation Systems today welcomed to its Tacoma fleet the first Kenworth Medium-Duty Diesel-Electric Hybrid Tractor to serve any West Coast Port.

Photo courtesy KathyTomandl, Port of Tacoma

The "tractor" is equipped with a fifth wheel to haul trailers for drayage business at the Port of Tacoma. I had the privilege of a short excursion aboard the new Kenworth T370 with Carlile Transportation Systems CEO Harry McDonald as chauffeur. McDonald said they expect a 20+% increase in fuel mileage from the hybrid for local haul applications.

This hybrid is a welcome addition to the commercial center of the port-industrial area. It will demonstrate the viability of hybrid commercial vehicles for this purpose - and we wish both Carlile and Kenworth be best of luck. In addition to having far more immediate applications than the $100,000 Tesla, the port-industrial area has been recommended for non-attainment status for PM-2.5 even though continuing monitoring shows results below federal thresholds. That final designation is expected from EPA Thursday, Dec. 18

Our Own Economic Stimulus Package

This community is about to embark on its most massive construction project ever; the Blair-Hylebos Terminal Redevelopment Project (BHTRP). At an estimated $1 billion, it dwarfs the new Tacoma Narrows Bridge at $800 million.

Early news reports were filled with the economic opportunity associated with this redevelopment, accommodating new terminal expansions and the redevelopment/repositions of others. Other businesses have been impacted and we've seen several pursue new facilities as this Port development has spurred other improvements.

The people of Pierce County, justifiably proud of the economic engine of the Port of Tacoma, have been treated to numerous opportunities to learn more about and to express preferences for how things are done as the project is improved. This Monday is the new deadline - extended from an earlier benchmark - now (Dec. 8) until 4:00 p.m.; everyone has another chance to share their opinions, concerns, preferences, choices and other perspectives about the BHTRP.

If you having yet caught onto this project - and are a quick study - you have just a handful of hours from this posting to do your homework and make a meaningful contribution. Comments may be online or via email.

Riding the Circuit - the Road to Everywhere

The Transportation Club continues to attract quality speakers with gravitas, featuring Ray Kuntz, Immediate Past President of the American Trucking Association yesterday.

But after his year on the rubber-chicken circuit, our audience was treated to a well polished presentation of the challenges confronting the trucking industry from a front-line fighter, plus a few glimpses into his vision for the future.

As Chairman of the Board and CEO for Watkins Shepard Trucking of Helena, MT, we can be gratified to have a Westerner at the forefront of trucking's issues. There wasn't much doubt that he considers the U.S. infrastructure system to be failing - the foundation of our status as a global power. Kuntz gave a review of several national (and state) systems that have gone to hi-way privatization for infrastructure. Uniformly, he forecasts private tolling fees of $1/mile, forcing trucks to use adjacent arterials systems.

And, he had a special forecast for Mexican trucking issues. There is no low-sulfur diesel refined or planned for in Mexico, although one firm plans to supply truckstops with tanker-trucked diesel. Mexican trucks will use non-low sulfur diesel, making them "dirty" trucks when traveling in the U.S. (via the FTA provisions). U.S. trucks, built after 2007 will have to pay the higher diesel costs of limited supplies when in Mexico. Kuntz laments that the real issues of NAFTA are never part of the public discourse.

Kuntz also is troubled by the cost of the next highway bill, which he puts at $400+ billion. He asks: "How do we fund this?" Plus, he asks how the trucking industry will respond to sustainability and climate change legislation, probably mandating carbon credits. He said the National Association of Manufacturers puts this toll at $1 billion.

Kuntz offers these solutions:

1. FIX CONGESTION. Focusing on congestion problems will cost $80 billion, with 3/4ths of that in the top 20 metro areas;
2. NATIONAL 60 MPH SPEED LIMIT. This will give greater fuel efficiency and reduce our consumption;
3. DO ALL OPTIONS FOR FUEL SOURCES. Do conservation. Do alternative fuels. Do drill more.

His observation - National legislation has proposed to eliminate larger companies (more than 50 trucks) from incentives, yet those larger companies are the ones doing fuel conservation:

• Adding APUs
• Buying fuel efficient tires
• Giving drivers fuel bonuses

These activities are saving his 700-truck firm $500,000/month. And, from us he got more than rubber chicken - he got salmon!

The World According to the Port

The Port of Tacoma featured its international representatives in a brief briefing just a short time ago.

Now, the Port has posted all the PowerPoint presentations online here, so the public has the opportunity for a more in depth review and reflection greater than that afforded in the short timeline of the briefing session.

Just to highlight the information, I'm sharing with you some of the information that most struck me. This is not necessarily the most important info presented. Some of that's in the eye of the beholder. You've got those online materials to review for yourself anyway.

Akira (Andy) Tatara, Director of Asia Last year China's #1 trading partner was Taiwan, at $62.4 b, up $28.1 b. California ports' new restrictions encourage transfer of cargo to PNW ports.

Jack Woods, Northwest Regional Sales Manager (Covering the Western U.S.) Decline in trade with Japan, China and Taiwan from the weak dollar. Change in exports up 22% in last six months. Looks for growth in non-containerized cargo, singling out the project cargo associated with development of Alberta, Canadian oil sands, over 20+ years.

Bill Wong, Hong Kong & South China Sales Representative Covers an area with 103 million population. Is seeing bulk cargoes moving into containers.

Volker Himmel, Director of Europe EU's GDP is 31% of world output, $16.8 trillion. U.S.'s #1 trading partner.

Joey Zhou, China Sales Representative (Shanghai) China's GDP is $6.9 trillion, #2 in the world. Growth rate in 2008, 10+%. Sees oversupply of carrier capacity and forecasts a merger within three years among Chinese carriers.

Susan Coffey, East Coast Regional Sales Manager (Eastern U.S.) Her region has the top 44 importers. There is an emergence of eastern ports in Asia trade -especially Savannah. Also, Mobile, AL container port, others. Sees a Customs backlog. The Southeastern ports are moving 40 containers per hour.

Daniel C.H. Rim, Korea Sales Representative He expects Korea to experience stagflation through 2008. Korea is the U.S.'s #2 trading partner. Still has the FTA (free trade agreement) subject to Congressional approval (a process delayed by Presidential politics).

Olga V. Romanyuk, Russian Sales Representative FESCO plans to build a 250,000 TEU capacity at Vladivostok.

Vincent Sullivan, Midwestern Regional Sales Manager (Covers Mid-western U.S.) Prince Rupert works! Port of Tacoma has no service to mid-South. Canadian Rail is interested in the Elgin-Joliet-Eastern RR, which skirts Chicago. There are political issues, but Mayor Daley supports the initiative. Inland ports with rail works for bigger customers.

In Chaos Lies Opportunity

Today's speaker at the Transportation Club of Tacoma featured Patrick O'Malley, President, Landstar Carrier Group, whose motto for the times: In Chaos Lies Opportunity.

As intriguing as the look at his company, here's a short snapshot of what he expects in the future of his industry: trucking.

CAPACITY: Those who have capacity will be winners. Since the downturn, 24,000 trucks have been sold overseas. They are not coming back.

FUEL: Some stabilization is ahead. Never a return to the glory days.

INFRASTRUCTURE: It needs rebuilding, regardless of who the owners are (states, cities, federal highways, ports). His company's position is that the feds should fund from fuel taxes.

SECURITY: Need coordination and standardization. Look to California's efforts as a (bad) example.

CREDIT MARKETS: (As of noon), it's irrational. There are 1 in 10 companies now whose market value (stock price) is less than their per share value in cash.

O'Malley thinks the bellwether on a recession will be unemployment, and will drive government economic recovery programs.

PT 101: An Educational Workshop on the 2009 Budget Process

In November, the Port of Tacoma Commission will hold public meetings regarding the Port's 2009 budget. To help prepare Pierce County citizens, the Port is hosting a series of educational workshops in October.

Along with providing information about the Port's history and operations, the Port of Tacoma 101 workshop highlights the Port's 2009 budget process. The 90-minute program visits these Pierce County communities on the following dates and times.

Taking It North to Alaska

We are often so wrapped up in our transportation gridlock that we fail to see others also suffer from that gridlock.

In an effort to break our gridlocked perspective, the Chamber's Alaska Committee took the issue of the proposed container tax to Alaska. You might ask "Why?" Well, the answer lies in that Alaskans have already proved themselves interested and involved. When that container tax was originally introduced into our legislative session, Alaskans, including the much-storied Gov. Palin, got involved with discussions with our Legislators and our Governor.

Taking the opportunity afforded by Tacoma's long-standing involvement in the annual Alaska State Chamber of Commerce Conference with a Tacoma Breakfast Briefing, the Port of Tacoma's Sean Eagan was the selected keynote speaker. His topic: What Should Alaskans Care About Washington's Transportation Infrastructure?

Most Alaskans automatically assume Washingtonians are looking for someone else to fund their transportation needs when we talk of a container tax, just making money at Alaskans' expense and never considering their wishes or interests. They see it as another in a long line of disappointments between the economic partnerships linking our two states.

We can certainly be sympathetic with their viewpoint, because after all, we've done this to ourselves. Beginning in 1995, Washington stopped making new investments in transportation. It's true we've begun to try to get ourselves out of the pothole we let time and neglect dig us. Our 2003/2005 two transportation packages of $11 billion, and the 14 cent gas tax are examples.

But overall, we've left a lot undone: SR-520, SR-99 Viaduct, SR-167. And now, we face another budget crunch:

• $714 million shortfall in an $11 billion package
• $137 million next year (in a $7.6 billion transportation budget)
• That 8% of the general fund of $2.6 billion

The container tax proposal was for $50 per TEU (acronym of twenty-foot equivalent unit the once prevalent length for containers, now most typically 40 feet long) or $100, empty or full of cargo, inbound or outbound. Unfortunately, the proposed Freight Investment Account lacked details leading skeptics to suggest its use for other than freight infrastructure. Those who shipped containers quickly yelped, saying why us and why not our competitors for barge, breakbulk, etc. The overall response was a (surprise!) legislative study.

That study, chronicled elsewhere, essentially said such a tax was economic suicide. The so-called Diversion Study postulated a decline in container volumes of 30%, a loss of 9,415 jobs and $591 million in lost wages.

So, what to do? While not making all the above points, Eagan did enumerate the options and the roadblocks for funding:

• Gas tax revenues are down because of gas prices and staycations. But, would a healthy 40% increase in gas taxes to 37.5 cents work? WA already is way ahead of most of the pack (of states) in its gas tax.
• Imposition of a license tax fee or vehicle excise tax? Oh yes, we had a 2003 citizens initiative on that subject. Anyone want to tackle it?
• Another initiative for property taxes, with the declining values in the housing market?
• A sales tax increase - already recently turned down by voters when they rejected handily the regional transportation package last November.
• A vehicle weight fee increase - with the numerous increases already heaped upon the trucking industry of recent years?
• An income tax, prohibited by the state's Constitution, and an albatross for anyone who wants to wear it.

Well, so far the stakeholders have not yet stepped up to the plate with alternatives. Most agree that we have a problem. Most agree that the proposed solutions, especially the container tax, are not viable.

So what is? Eagan challenged Alaskans, in their own best interests, to seek affirmative solutions and not just express opposition. If no container tax, then what revenue source? Without a revenue source, no transportation infrastructure investment. If no investment, we face increasing congestion, deteriorating infrastructure, delays, shifting market shares in throughput and higher prices for delivered goods anyway. And incidentally, deleterious effects on air quality for PM2.5 and ozone.

What's your suggestion?

Port's Annual Market Seminar Announced

Persistence Pays

Ribbon Cutters: Executive Ladenburg, Rep. Flannigan, Sen. Kastama, BNSF's Finn, Mayor Baarsma, Commissioner Petrich (barely), Councilmember Lonergan, Pierce County's Ziegler and FHA's Mathis. Photo credit: PSRC

It was almost a decade in coming since the first steps were actually taken, but the community recently celebrated the opening of the D Street Overpass.

These august personages all played a vital - and often long-term - part in getting the complete package together for what will be multi-faceted benefits to the community, separating rail and road traffic, increasing speeds for intercontinental rail and easing local movement for both E. & W. Foss Waterway as well as Dome District traffic.

And, as Port of Tacoma Commissioner Clare Petrich noted in her ribbon-cutting remarks, sometimes those in at the beginning need recognition too. I too wish to join her in recognizing a small Pierce County cadre that, while serving on the Central Puget Sound Economic Development District Board at the beginning of the decade, got what we believe were the first committed dollars to this project: Commissioner Petrich, Denise Dyer alt. for Executive Ladenburg, Rob Allen alt. for Pierce County Council and Gary Brackett, Chamber staff and private sector representative.

Chamber Board Supports Top 3

Today, the Chamber's Board of Directors accepted a resolution to support the top three priorities of the East Foss Transportation Study.

The Tacoma City Council, in a study session July 15, remanded the East Foss Transportation Study to two of its Council Committees: Environment and Public Works Committee and the Economic Development Committee.

These two Council committees will be charged with reviewing the East Foss Transportation Study and bringing recommendations for implementation to the full Council.

The East Foss Transportation Study itself identifies these implementation options:

• incorporate appropriate sections of the traffic study into the S-8 Shoreline Master Plan Regulations;
• Implement the recommended three priority projects;
• Participating entities need to take study recommendations back to their boards/commissions (Chamber and Port of Tacoma);
• Increase coordination of advanced facility planning between the City of Tacoma and the Port of Tacoma;
• Facilitate partnerships to share infrastructure costs to maintain existing uses and to increase economic development in the study area.