Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

February 2014 www.ndtahq.com

The Infrastructure Issue

PIPelIne CaPaCITyensuring the Resiliencythe US Requires

The nDTa FoUnDaTIonThe “Quiet Committee”

In FlUxamerica’s Transportation Infrastructure

maersklinelimited.com

Global Challenges: American Ingenuity

99% Operational Reliabili� Today’s U.S. Merchant Marine

250 Colleagues AshoreOver 5,000 American Mariners Employed

Over 30 Years Serving the Nation

U.S. Flag Transportation Worldwide

Ship Management and Chartering for the U.S. Military

Marine Engineering and Conversions

Innovative Logistics is a leading international Freight Forwarder and registered with SDDC as a Global Freight Management service provider. We serve the U.S. Military, the United Nations and commercial clients in the world’s most hostile environments, as well as emerging markets and frontier economies.

Services+ Air and Ocean Freight Forwarder+ NVOCC+ S & RT Services+ Import & Export Custom Clearance+ Transportation/Trucking+ Air Charter+ Life Support Activities

Service Disabled Veteran Owned Small Business

DUNS:829968614

CAGE CODE: 5G7M8

PATRIOTISM. COMMITMENT. SERVICE.FREIGHT FORWARDING IN THE MOST HOSTILE ENVIRONMENTS.

WWW.TOTALSCMSOLUTIONS.COM P. +1407.539.6146 F. +1407.628.1508

West Africa

Dubai, UAE

Afghanistan

Northern Iraq

February 2014

February 2014 • Vol 70, No. 1

PublisherLTG Ken Wykle, USA (Ret.)

eDiTOrDr. Kent N. Gourdin

MANAgiNg eDiTOrSharon Lo | [email protected]

CirCulATiON MANAgerLeah Ashe | [email protected]

PublishiNg OffiCeNDTA

50 South Pickett Street, Suite 220Alexandria, VA 22304-7296

703-751-5011 • F 703-823-8761

grAPhiC DesigN & PrODuCTiON MANAgerDebbie Bretches

ADverTisiNg ACCOuNT MANAgerJim Lindsey

ADverTisiNg & PrODuCTiON Carden Jennings Publishing Co., Ltd.

Custom Publishing Division375 Greenbrier Drive, Suite 100

Charlottesville, VA 22901434-817-2000, x261 • F 434-817-2020

Defense Transportation Journal (ISSN 0011-7625) is pub-lished bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and education-al organization; 50 South Pickett Street, Suite 220, Alex-andria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices.

subsCriPTiON rATes: One year (six issues) $35. Two years, $55. Three years, $70. To foreign post offices, $45. Single copies, $6 plus postage. The DTJ is free to mem-bers. For details on membership, visit www.ndtahq.com.

POsTMAsTer: Send address changes to:Defense Transportation Journal50 South Pickett Street, Suite 220Alexandria, VA 22304-7296

DePARTmeNTSyOuNg leADers (formerly A-35) | Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

eDiTOriAl | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

PresiDeNT’s COrNer | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

sPeCiAl rePOrT | NDTA european Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

ChAPTer sPOTlighT | NDTA Tampa Bay Chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

PrOfessiONAl DevelOPMeNT | Irvin Varkonyi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

ChAirMAN’s CirCle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

hONOr rOll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

bOOkshelf iDeAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

iNDex Of ADverTisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

FeATUReSPipeline Capacity 8ensuring the Resiliency the US RequiresBy Lt Col Darien J. Hammett, USAF

The NDTA foundation 16The “Quiet Committee”By Larry Larkin

in flux 18America’s Transportation InfrastructureBy Sharon Lo

4 | Defense Transportation Journal | FeBRUARy 2014

lTg kenneth Wykle, usA (ret.)President

COl Mark victorson, usA (ret.)VP Membership

Patty CasidyVP Finance

lee MatthewsVP Marketing and Corporate Development

leah AsheManager, Database

sharon loDirector of Public Relations

rebecca Jones Executive Assistant to the President

Carl WlotzkoCoordinator, Banquet & Special Events

For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit the Association website at www.ndtahq.com.

eDiTOriAl ObJeCTives

The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with:

• News and information about defense logistics and transportation issues

• New theories or techniques• Information on research programs• Creative views and syntheses of new concepts• Articles in subject areas that have significant

current impact on thought and practice in defense logistics and transportation

• Reports on NDTA Chapters

eDiTOriAl POliCy

The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the editors, the editorial Review Board, or NDTA.

eDiTOriAl CONTeNT

For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm

Dr. kent N. gourdin, editor, DTJDirector of the Global Logistics & TransportationProgram, College of Charleston, Charleston, SC843-953-5327 • F [email protected]

sharon lo, managing editor, DTJNDTA50 South Pickett Street, Suite 220Alexandria, VA 22304-7296703-751-5011 • F [email protected]

NDTA Headquarters Staff

more youth involvement—that’s what this association needs. Ac-cording to NDTA records, that

was the topic of an NDTA Board Meeting in early 1970. The board recognized that NDTA was not attracting new young mem-bers, and after much discussion the NDTA Youth Involvement Committee was estab-lished. Its goals then, 44 years ago, were substantially the same as they are today: to provide professional, educational, career, social, networking, and service opportuni-ties to the younger members of NDTA. The program was so successful that other transportation organizations began starting their own Young Professionals committees.

Initially, the committee was very Head-quarters- and Washington, DC-centric, so they set about to change things. The immediate goals were:• AddingarepresentativetotheNDTA

Board of Directors• Reducingdues/Forumregistrationfees• CreatingaYoungProfessionalAward• Developingamentoringprogram• DedicatingacolumnintheDTJ• Adding regional and chapter young

professional representatives• WritingarticlesfortheDTJ• Organizing scholarship fundraising events• Volunteering for community service

projects

A big advantage then, that today’s com-mittee does not have, was numerous op-portunities throughout the year to attend meetings, seminars, and regional and national forums. These events afforded the committee members opportunities to network face-to-face and be exposed to other young professionals from military, government, and industry. In the future, there will be fewer opportunities to attend andbeinvolvedinyearlyForums,meet-ings, and symposia. Additionally, the slots at upcoming meetings that are available will most likely go to senior leaders. The

vital middle- and operating-level person-nel could be shut out. Yet, that is the very group of members that stands to benefit most from the experiences and training such events provide. Furthermore, suchexperiences would grow them into loyal supporters of NDTA as they advance to senior positions in their organizations.

So the future challenge is obvious—we must review and adapt what has worked over our first 44 years, while we add new ideas for the future. We will be depending more on technology and social media to helpus.OurFacebook,Twitter,andLinke-dIn presence will be boosted, and we will depend more on webinars and other long-distance communications. Please contact me with your input on how to proceed in these areas.

We have already taken one small step toward strengthening our brand. We have changed our name from the A-35 Com-mittee to NDTA’s Young Leaders Com-mittee. This name better reflects our mission and committee composition. However, while the name may be chang-ing, the mission and legacy of the commit-tee’s action-filled history will endure. DTJ

Challenges looking forward:The Way to the Future for young Professionals

lori leffler, CTC, young leaders ChairGlobal Government Strategic manager, The Hertz Corporation

Young Leaders

>> Whether you are young or just young-at-heart, everyone can support NDTA’s young leaders Committee!

The committee’s success requires the support of the entire organization and everyone—no matter what age or professional level—can help. I encour-age senior leaders to participate as a speaker for young Leader events or to volunteer as a mentor. Another simple thing you can do is promote attendance to NDTA events among your younger staff members—not only will they ben-efit from the professional development, it will help grow your company’s network!

(formerly A-35)

www.ndtahq.com | 5

Happy New Year and best wishes for a successful 2014!

Given the expected opening of the expanded Panama Canal in 2015, I am planning a travel study to

Panama in June for my global logistics and transportation students. In anticipation of that trip, I made a quick visit there in early December to get a sense of the place and came away with a whole new apprecia-tion for the canal’s impact on Panama and global trade. Indeed, we hear a great deal about the importance of the expansion to Charleston and US ports in general, but to actually see ships moving through the locks really brought home the strategic importance of that narrow body of water.

Completed almost exactly 100 years ago, the Panama Canal still remains one of the epic construction feats of all time. Sadly, like many things, the magnitude of that accomplishment has paled over time; even the expansion has proceeded with relatively little fanfare. The canal has, for most of us anyway, simply always been there. The tremendous cost in hu-man and economic capital to build the thing has been long forgotten as its use has become routine. Global trade and the vessels servicing that trade have grown well beyond the capabilities of a canal designed at the turn of the 20th century. The fact that it has been relevant for so long is a true testament to the farsighted-ness of the engineers who created it. As is typical with transportation infrastruc-ture projects, however, many new vessels entering maritime service are too large to transit even the expanded canal. Panamax ships are the largest presently able to use the canal and carry approximately 5,000 Twenty-foot Equivalent Units (TEU); the expansion will permit the transit of New Panamax vessels moving up to 13,000 TEU which means the new Triple EEE-

class ships (20 of which Maersk has on or-der), each with a capacity of 18,000 TEU, will be unable to use even the larger canal.

One thing that really struck me during my brief stay in Panama, was the magnitude of the US footprint there, and how well the Panamanians are putting those resources to good use. The Panama Canal Zone, created in 1903, was a former US territory within Panama that included the canal and an area extending 5 miles on each side, (in fact, there was even a US District Court for the Canal Zone until 1982). Under the terms of a 1977 treaty, the zone was abolished in October of 1979 and returned to Pana-

manian rule; the canal itself was ceded to Panama in 1999. There were numerous US military installations in Panama (Albrook and Howard AFBs, and Fort Clayton toname a few), which are being repurposed. In fact, those of you who were stationed there or perhaps grew up as a “CZ Brat” would probably recognize many of the old facilities. The official currency is the balboa, which is pegged to the US dollar; both are accepted interchangeably to the extent that no currency exchange is necessary.

Clearly, the Panamanians have capital-ized on the resources the US left behind. The old Headquarters US Southern Com-mand buildings are situated on beautiful groundsofwhatwasFortClayton.Locateddirectly across from theMiraflores Locks,these structures are being turned into the City of Knowledge, which, among other things, emphasizes academic programs and transfer of knowledge between businesses and universities. The old buildings are slow-ly being restored and new accommodations for student groups like ours are being built.

EDITORIALA visit to PanamaDr. kent N. gourdin, editor, DTJDirector, Global Logistics and Transportation ProgramCollege of Charleston

The cargo ship APL Arabia in the Panama Canal

The Johannes Maersk at the Miraflores Locks

continued on page 28


TF Boyle

www.boyletransport.com 800-343-2004 SCAC-BYLE

WE DELIVER SECURITY

When you choose Boyle Transportation, you know your mission-critical shipments are safe and secure. As the best value provider of Transportation Protective Services (TPS) to the Department of Defense, we meet or exceed the most rigorous standards in the industry every day. Your shipment is our commitment.

Our uniformed professional drivers are employees — we don’t hand your shipment off to independent contractors or third parties. Every employee at Boyle goes through a rigorous clearance process and receives extensive training. We deploy a layered security approach and specify state-of-the-art safety technology in premium equipment.

We monitor every important detail about your shipment and provide continuous updates on the web or via email. Just as important, we ensure you have 24/7 access to mission-critical shipment specialists. We protect your shipments with the best safety and security performance in the industry. Safety performance data is available online from the Department of Transportation. Contact us at [email protected] for details.

We know our service and attention to detail are valued by our military and defense industry customers. Thank you for continuing to place your trust in Boyle Transportation.

SAFETYSECURITYSERVICE

www.ndtahq.com | 7

The Department of Defense (DOD) business environment continues to evolve.OperationIraqiFreedomis

complete.OperationEnduringFreedomis scheduled to end December 2014. The recent budget passed by Congress restores some of the defense cuts, but significant reductions continue and the long term is-sue of sequestration remains unresolved.

The impact of these actions is reduced requirements and resources for the DOD. The DOD budget continues to shrink from a peak of about $738 billion to a projected 2014 budget of about $520 bil-lion, plus almost $81 billion for Afghani-stan and other overseas operations. This translates to a smaller Army and Marine Corps, a smaller surface fleet, and reduced procurements. The focus is shifting to spe-cial operations, unmanned aerial vehicles, cyber security, space, and submarines.

As we look three- to five-years into the future, we see a primarily US-based force; increased focus on the Asia-Pacific region, with its long distances and chal-lenging supply lines; an increase in multi-national military exercises in the Pacific area of operations; and a return to more robust training schedules at the national training centers. The DOD will seek ef-ficiencies through an emphasis on firm fixed price, indefinite delivery/indefinitequantity, and lowest priced technically ac-ceptable contracts. The Department will continue to seek efficiencies in logistics operations—champion commercial best practices, change processes, and reduce overhead costs.

In summary, defense requirements are decreasing, while the budget reductions and sequestration continue. DOD op-eration and maintenance, and personnel costs are rising. There is increased pressure on acquisition accounts, and ever increas-ing pressure to reduce the costs of service

contracts. The Department of Defense will continue to seek ways to reduce costs andincreasebuyingpower.Logisticsandtransportation companies doing business with the government and military will have significant challenges in 2014.

NDTA is also evolving to stay relevant and continue to provide value to our members. In 2014, it is our intent to fo-cus on reducing our costs and build on the changes made with our events in 2013. We are planning a spring Defense Travel and Government Transportation (DTGT) meeting in the greater Washington, DC area. We see opportunities in the areas of defense travel, inter-agency support, and disaster relief. While defense will continue to be the largest customer for most of our members, we are seeking ways for them to “offset” the decline in defense business. We believe identifying opportunities in other government agencies, and inform-ing members about logistics requirements in response to domestic and international natural disasters and humanitarian aid will provide value for our members.

We are also planning to again co-spon-sortheFallMeetingwithUSTransporta-tionCommand(USTRANSCOM).Thedates for the meeting are 28-30 October 2014,attheRenaissanceGrandHotelinSt.Louis,MO(thesamelocation/hotelasthe2013FallMeeting.)Wewillbework-ingwiththeUSTRANSCOMstaffoverthe next few months to develop the agen-da and program. Please block the dates on your calendar and plan to attend. Should youhavesuggestionsfortheagendaand/or program, email them to [email protected] or to [email protected].

Additionally, we will continue with our scheduled committee meetings and Ex-ecutive Working Groups (EWGs) during the year. We intend to sharpen the focus of these meetings to emphasize industry

and USTRANSCOM issues/topics. Ac-tive industry participation in these meet-ings is critical to success. Work closely with the appropriate committee chair to include your topics on the meeting agen-da. For our Chairmans Circle Plus andChairmans Circle members the Transpor-tation Advisory Board (TAB) meeting is scheduled for 22-23 April 2014. This is a great opportunity for industry leaders to share knowledge on changes occurring in their industries, to network with other se-nior executives, share information on cur-rent issues, and to look three- to five-years into the future.

The strength of our association is net-working and knowledge sharing. The schedule of events is designed to provide these opportunities. Achieving the best return on your membership investment requires active participation in all aspects of the association. Plan now to participate in our scheduled events.

Thank you for your commitment to NDTA, and for the work you do every day in support of the US economy and our national security. DTJ

PRESIDENT’S CORNER

2014 review & OutlooklTg ken Wykle, usA (ret.)NDTA President

SuStaining• UniTransInternational,Inc.

Chairman’S CirCle•FikesTruckLine•U.S.Bank

WelC meneW Corporatem e m b e r Sas of January 30, 2014

corporate member upgrades

save-the-date

October 28-30, 2014st. Louis, Missouri

NDTA-USTRANSCOMFALL MEETING 2014


The most serious challenge facing the oil and gas industry today is the ability to meet the increasing

demand for its products. With the recent boom in domestic sources of profitable light crude and natural gas, the need to transport these products has gone up sig-nificantly. Pipelines are a critical compo-nent of transporting these new sources to destinations for both domestic and export use. Since pipelines are safer and much more economical in transporting oil and gas, their use is preferred to other modes of transportation. However, in order to take advantage of the safety and profit-ability benefits of pipelines, the infra-structure must be in place to support the future demand of these products.

PiPeliNe bACkgrOuND The 2.5 million miles of pipelines in the US are the safest method of transport, re-sponsible for far less injuries and deaths than trucking or rail.1 Pipelines are also more environmentally friendly than the other two modes of transport. As of 2009, pipelines carried 70.2 percent of total crude oil and refined products transport-ed on a ton-mile basis, and approximately 80 percent of all crude oil in the US trav-els via pipeline.2 By way of contrast, wa-ter carriers, motor carriers, and railroads transported 23.1 percent, 4.2 percent, and 2.6 percent of petroleum and refined products, respectively.3 What’s more, is that pipelines have steadily increased car-rying more of the load; in 1990, only 54.2

percent of crude oil and refined products were carried by pipelines.4 Furthermore,almost all natural gas is transported via pipeline; transporting via barge, truck, or rail increases safety risk and would be much more costly.5 Although barges, trucks and rail are picking up some of the load in new areas being developed, they cannot come close to carrying the vast capacity sent via pipelines. Pipelines are the preferred method for transport-ing these products because they are not only the safest, they are also the cheapest and most reliable.6 Pipelines are two to three times less expensive than truck or rail.7 Therefore, it is safe to assume that pipelines will continue to carry the vast majority of capacity in transporting these

Pipeline Capacityensuring the Resiliency the US Requires

ByLtColDarienJ.Hammett,USAF

Six Key Plays Account for Nearly All Recent Growth in Oil and Natural Gas Production. Source: EIA Drilling Productivity Report

www.ndtahq.com | 9


types of products. Given this data and the expected increase in population and demand for these products, the US must ensure the capacity to meet future public and government needs for these valuable resources is preserved.

future Population and Consumption Population and consumption are inex-tricably linked in their effect on oil and natural gas demand; they are the two pri-mary factors in determining future needs of these products. Presently, the US has steady population growth. Of course, growth can be affected by changes in birth rates and immigration, which isn’t always predicted accurately. However, the US Census Bureau estimates that in the year 2050, there will be over 422 million Americans.8 That is an increase of 43 per-cent from 2005. Using population growth models, the Energy Information Adminis-tration (EIA) extrapolates predicted trends in oil and gas consumption to determine needs for the future.9From2005to2025,demand is expected to increase by 62% for natural gas and 33% for oil.10 With many

of our pipelines frequently operating in excess of 95 percent utilization, the cur-rent transportation system may need to be expanded in order to meet future demand. (Pipelines are considered fully utilized when operating at 95 percent.11)

bAkkeN shAle TAke-AWAy CAPACiTyNorth Dakota’s recent surge in oil produc-tion due to the shale formation discovery at Bakken is an example of where pipe-line capacity is failing to meet the trans-port need. In March 2012, North Dakota overtook Alaska as the second largest oil producing US state.12 This formation has huge implications for the US reliance on foreign oil, but there are difficulties in getting the oil from the well to the loca-tions that need it. Take-away capacity is the most critical issue for those producers exploiting Bakken, given its distance away from most of the US refining capability.13 Due to the limited pipeline infrastructure in the area, oil producers there depend on rail to move their product.14 However, there are economic consequences to this. On average, shipping oil via rail is three

times more expensive than shipping via pipeline.15BNSFisthelargestrailmoverof US crude (it transports a third of the oil fromBakken).TheamountofoilBNSFtransported increased 60 percent during the first half of 2012.16Railisanadequateoption as a stop-gap measure, but is too costly for the long term. More invest-ment in pipeline infrastructure must be made if producers are anticipating well-ing Bakken for some time. Although it is too early to predict how long the oil will last and remain profitable in Bakken, conservative estimates put the number at 45 years, while more progressive estimates put the number over 100 years.17 Either way, there are additional profits to be had (not to mention environmental and safety benefits) by investing in additional pipe-line infrastructure now, and reaping the benefits of reducing costs by one-third.

The demand for natural gas has in-creased steadily since pipelines began transporting natural gas in the US in the 1920s. The increasing growth in natural gas demand and new sources of supply over the past several years, has led to an

While most of the country does not experience full utilization of natural gas pipelines, pipeline capacity is already a problem in a few localized areas of the US. Currently, limited areas of the West Coast, southern Nevada, upper midwest, Northeast, and South-east are well above 95 percent utilization on a regular basis.19 Further increases in demand or interruptions in flows could easily create shortages in those parts of the country.

www.ndtahq.com | 11

increase in utilization of pipelines.18 This has resulted in the need for additional pipeline capacity in several areas. While most of the country does not experience full utilization of natural gas pipelines, pipeline capacity is already a problem in a few localized areas of the US. Currently, limited areas of the West Coast, south-ern Nevada, upper Midwest, Northeast, and Southeast are well above 95 percent utilization on a regular basis.19 Furtherincreases in demand or interruptions in flows could easily create shortages in those parts of the country.

While history has shown that pro-duction has been able to keep pace with consumption, in 2020, consumption of natural gas is expected to outpace pro-duction by five trillion cubic feet (tcf ).20 The dominant driver in the need for ad-ditional natural gas pipeline capacity is the expansion of gas-fired electric power plants, which are more environmentally friendly than their coal counterparts.21 In fact, total natural gas production in the US rose from about 46 billion cubic feet (bcf ) per day in 2007 to 66.2 bcf per day in 2011.22 Production growth is primarily attributed to shale generation (like the gas produced at Bakken).23 With the move to greener sources of energy, we can ex-pect the move to natural gas to continue. Forexample, according to theCanadianEnergy Research Institute (CERI) gasdemand in New England (Connecticut, Massachusetts, Rhode Island, Maine,NewHampshire, andVermont)—whichdepends solely on pipelines for natural gas—will almost double, from 630 bcf in 1998 to 1.2 tcf in 2020; while, in the Mid-Atlantic, (New York, Pennsylvania, and New Jersey), gas demand will rise from 2.4 tcf in 1998 to 4.1 tcf in 2020.24 In 2010, the forecasted throughput on these pipelines operated near full capac-ity; the predicted demand will push past the current pipeline capacity and numer-ous pipeline projects are needed to ensure demand is met.25Runningatcapacitywillincrease the price of the gas. Additional pipelines are needed to ensure demand is met and to control prices.

A number of rail expansion projects are planned to start this summer, to sup-port the capacity need out of Bakken.26 Although rail is more expensive and less safe, it will give the fast-growing area of Bakken the immediate takeaway capacity

The QuADreNNiAl eNergy revieW

On January 9, 2014, President barack Obama signed a Presidential Memo-randum establishing the Quadrennial energy review (Qer). The Qer will focus on developing a comprehensive strategy for the infrastructure used to transport, transmit, and deliver energy. The memorandum was sent to the heads of all executive departments and agencies. These department and agency heads (or their designated representative) will be included as a member of the Quadrennial review Task force. Co-chaired by the Direc-tor of the Office of science and Technology Policy and the Director of the Domestic Policy Council, the task force’s first review will be due to the President by January 31, 2015. An excerpt from the memorandum is below. Other information regarding the review, including specific duties of the task force, can be found on www.whitehouse.gov.

“Affordable, clean, and secure energy and energy services are essential for improving US economic productivity, enhancing our quality of life, protecting our environment, and ensuring our Nation’s security. Achieving these goals requires a comprehensive and integrated energy strategy resulting from interagency dialogue and active engagement of external stakeholders. To help the Federal Government better meet this responsibility, I am directing the undertaking of a Quadrennial energy Review.

The initial focus for the Quadrennial energy Review will be our Nation’s infrastruc-ture for transporting, transmitting, and delivering energy. Our current infrastruc-ture is increasingly challenged by transformations in energy supply, markets, and patterns of end use; issues of aging and capacity; impacts of climate change; and cyber and physical threats. Any vulnerability in this infrastructure may be exacerbated by the increasing interdependencies of energy systems with water, telecommunications, transportation, and emergency response systems. The first Quadrennial energy Review Report will serve as a roadmap to help address these challenges.

The Department of energy has a broad role in energy policy development and the largest role in implementing the Federal Government’s energy research and development portfolio. many other executive departments and agencies also play key roles in developing and implementing policies governing energy resources and consumption, as well as associated environmental impacts. In addition, non-Federal actors are crucial contributors to energy policies. Because most energy and related infrastructure is owned by private entities, investment by and engage-ment of the private sector is necessary to develop and implement effective policies. State and local policies; the views of nongovernmental, environmental, faith-based, labor, and other social organizations; and contributions from the academic and non-profit sectors are also critical to the development and implementation of effec-tive energy policies.

An interagency Quadrennial energy Review Task Force, which includes members from all relevant executive departments and agencies, will develop an integrated review of energy policy that integrates all of these perspectives. It will build on the foundation provided in my Administration’s Blueprint for a Secure Energy Future of march 30, 2011, and Climate Action Plan released on June 25, 2013. The Task Force will offer recommendations on what additional actions it believes would be appro-priate. These may include recommendations on additional executive or legislative actions to address the energy challenges and opportunities facing the Nation.”


and flexibility it needs.27 This can open up economic competition by introducing ar-eas to a market once closed due to the lack of pipeline. However without additional pipeline capacity, Bakken oil will eventu-ally be squeezed out by cheaper, pipeline-using crude and natural gas producers. It seems that everyone in the oil business wants the Bakken crude. Shippers and

refiners from the West Coast (serving the Los Angeles and Bakersfield markets),East Coast (serving Delaware, New Jersey, and Philadelphia), and even the Atlantic and Gulf Coasts all receive Bakken oil.28 In fact, Bakken crude is shipped to nearly every refinery on the Atlantic Coast via rail.29 US oil production is at a twenty year high in 2013, and it is expected to rise in the future.30 This rise in growth is creating a pipeline bottleneck. Much of the new sites for oil do not have adequate transportation options to compete with incumbent producers that have plenty of pipelines to get product to market.31 This bottleneck is expected to continue for shale oil locations even if all planned pipe-line projects, such as Keystone XL andNorthern Gateway, proceed as planned.32

Additional pipelines on the Gulf Coast would provide two things to domestic suppliers of oil: offshore suppliers would compete directly with domestic shale (which would be cheaper and most likely force prices to decrease) and a reduction of US imports of oil, providing spare ca-pacity to be used elsewhere in the world.33 The extensive growth of shale production and the completion of critical pipeline projects, if approved, will mean that im-port sources of medium and heavy crude into the US could be replaced with do-mestic sources.34

resilieNCy NeeDeDThe EIA projects that continued develop-ment of domestic resources will require additional supplements to the current pipeline grid to support long-term de-mand.35Runningatornearcapacitylimit

levels leaves the system vulnerable if an unexpected outage or catastrophe occurs. Take the case on 19 August 2000, when an explosion occurred on the El Paso Natural Gas Company grid, which affected three pipelines crossing into New Mexico. Over a two month period, unanticipated outages and price spikes occurred in California and Arizona.36 California also experienced roll-

ing blackouts for months. In 2011, most major pipeline expansions occurred in the southeastern US; however, large pipeline developments also occurred in the north-east and west.37Withno storage,Floridais dependent on two pipelines to bring in gas, and they are at full capacity in times of high demand because of increased con-sumption.38 Weather can also wreak havoc on pipelines. Hurricanes Katrina, Rita,and Gustav all interrupted service in a key East Coast petroleum pipeline in separate instances.39 Mishaps, increased consump-tion, and weather all stress the resiliency of the US pipeline system. While there is a cost for resiliency, this suggests that a more resilient pipeline system may be needed to service these areas and be able to handle disruptions in a more efficient manner.

The Military Need for resiliencyThe military uses pipelines to mobilize for war and in everyday operations. The military has no infrastructure to transport high volumes of fuel to where they need it; they depend on commercial pipelines to move fuel.40 Due to the locations of the sources of supply, pipelines provide the only economical way to transport fuel for the military.41For instance, themili-tary would pay over a dollar more a gal-lon to transport fuel via truck than pipe-line.42 Pipelines are used to transport fuel to defense fuel supply points, then on to military installations via pipeline or some other mode of transportation.43

The military has several issues with the current and future pipeline capacity struc-ture.First,theymustcompeteforspaceinthe pipeline.44 Demand drives the pricing

structure used by the refineries. Secondly, the military requires a more resilient pipe-line system in the future. Sharing pipeline with other products (a common practice) is becoming an issue. High sulfur diesel con-taminates cleaner jet fuel, making it harder to meet the military specification require-ments. Meanwhile, ultra-low sulfur diesel is much cleaner and becoming a more pop-ular diesel option. However, it is contami-nated by jet fuel when sharing pipes, taking many pipelines out of service for jet fuel in favor of the more profitable ultra-low sul-

fur diesel.45 The military would clearly ben-efit, and in the future will require, a more robust and resilient pipeline system.

social and Political resiliencyIn addition to their efficiency, pipelines also have important environmental and safety benefits. Compared to other inland transport modes, pipelines do not crowd our highways and rivers, and they pro-duce negligible air pollution.46 Spill rates

This rise in growth is creating a pipeline bottleneck. much of the new sites for oil do not have adequate transportation options to compete with incumbent producers that have plenty of pipelines to get product to market.31 This bottleneck is expected to continue for shale oil locations even if all planned pipeline projects, such as Keystone XL and Northern Gateway, proceed as planned.32

www.ndtahq.com | 13

for pipelines are significantly less than for trucking or rail. In order to meet the capac-ity needs of the future in a safe and envi-ronmentally friendly way, politicians need to streamline the process for companies to get licenses for pipeline building. Pipeline resiliency is the socially conscious way to meet the capacity needs of the future.

economics resiliencyPipeline capacity plays an essential role in the determination of prices in oil and gas.47 Essentially, much of energy eco-

nomics comes down to simple supply and demand. If additional supply is provided and pipelines don’t run at full capacity, prices are lower. However, without ad-ditional capacity, pipelines run at or near their limits and prices rise.

AlTerNATives AND NeW POliCies NeeDeDWhen assessing alternatives to transport-ing oil and natural gas through pipelines,

the main issues of safety, security, eco-nomics, and effect on the environment are at the forefront of any conversation.

Make it more ProfitableThe first alternative to solve the pipeline capacity problem is to add a subsidy tax to oil and gas use much like the subsidy given to corn farmers for ethanol produc-tion. This subsidy tax would be passed straight to the oil and gas producers for the purpose of constructing and main-taining new pipelines. The benefit would

be geared towards pipelines that are built to increase the capacity in the areas with the largest need in the future. This sub-sidy would only be given for investments in new pipeline infrastructure. Politicians also need to streamline the process for companies to get licenses for pipelines. While concerns need to be heard and ad-judicated, continuing the debate indefi-nitely is not an option. Statistics strongly support that pipelines are safer and spill

rates are significantly lower for pipelines than any other mode of transport.48 If the US needs additional capacity—and data presented here strongly supports that it does—pipelines are the economic and social carrier of choice. There are known formations of oil and natural gas that would provide additional sources of prod-uct once drilling technology and profit margins are improved, as in Niobrara and the Permian Basin.49 Therefore, if prices were to increase, these formations would become profitably lucrative, and supply additional sources of oil and gas. Addi-tional pipelines also clearly benefit the refiners, as they will have steady domestic supplies via pipeline, rather than relying heavily on foreign waterborne imports, as they must today.50 This would reduce the US reliance on foreign oil.

use Truck and railThe most obvious secondary alternative to alleviate the capacity issue for pipelines to transport oil and natural gas is using truck and rail. They have the capability and already carry oil and liquid natural gas today. Trucking has traditionally con-tributed to the transport of crude and natural gas via the “last mile” to the final destination, but not generally over very long distances. It would be the most ex-pensive option due to the sheer number of trucks it would take to transport high volumes of product. However, it could and does contribute in local transport of product. That being said, non-pipeline modes of transport, especially rail, have recently been increasing their contribu-tions in carrying crude and natural gas from well to final destination. During the first half of 2012, the amount of crude and petroleum products transported by rail increased 38 percent from the same period in 2011.51 Suppliers and buyers have been relying on primarily rail, and to a smaller extent trucking, to fill the pipeline capacity gap to meet increasing domestic demand during this healthy growth in domestic supply. Trucks and rail have more access than pipelines—they can go essentially anywhere there is a road or railroad—but they can only go where thereisaroadorrailroad.Roadsandrail-roads don’t always offer the most efficient route. However, pipelines can be built just about anywhere they are approved.Fur-thermore, the amount of oil or natural gas

US Natural Gas Pipeline Network. Source: Energy Information Administration, Office of Oil & Gas, Natural Gas Division, Gas Transportation System.


moved by a single pipeline requires 1,400 tanker truckloads or 441 tanker railcars.52 That amount of traffic creates conges-tion on the roads and railroads, and adds pollution to our environment. Trucking and rail is also statistically more danger-ous thanpipelines.Finally, although theinitial infrastructure costs for generating a new pipeline are high, trucking and rail have significantly higher operating costs than pipelines. Hence, trucking and rail are a considerably more expensive option to pipelines in transporting oil and natu-ral gas. Trucking and rail should provide overflow capability when demand cannot be met with pipelines, but they are not a long-term solution to the pipeline capac-ity deficiency and should be used only un-til adequate pipeline capability is in place.

Just go greenThe final alternative is to implement policies that promote green energy as an alternative to oil and natural gas. As power plants continue to be scrutinized for pollution and look for non-nuclear sources of energy, green energy becomes

more and more attractive. However, there is another potential benefit to green en-ergy sources. If green energy were made more attractive, the need for oil and natural gas would be less. This alternative would reduce consumption and thereby, reduce the need for more pipeline capac-ity throughout the US. The proliferation of green energy sources may even reduce consumption of oil and gas with addition-al population growth. The gas pipeline is-sue is exacerbated by the fact that most of the new gas-fired power plants are driving capacity to the limits. In 2001, after roll-ing blackouts and a declared energy crisis in the state of California, the Governor worked with the state legislature to insti-tute programs that gave 50% tax credits for renewable generation systems power-ing large apartment complexes and office buildings, and $50 million dollars in tax rebates for personal renewable generation systems.53 There needs to be more moti-vating policy initiatives such as these, and incentives for additional green energy re-search and development, to increase the use of green energy. There simply wasn’t

enough natural gas pipeline capacity to fuel the power plants to satisfy the energy demand. The five pipelines servicing the area were running at full capacity, mak-ing renewable energy (such as wind, solar, geothermal, water, and biomass) very at-tractive.54 California pushed for renew-able sources of energy in the 1970s, but market forces, regulatory roadblocks, and utility company reluctance inhibited the effort.55 Removing these roadblocks andinstituting renewable sources of energy would go a long way to reduce the capac-ity issue in places like California. Enact-ing policies to commercialize migration to green energy would have the social benefit of providing a cleaner source of energy for power plants to pursue and create more economic competition in the energy in-dustry. Although this will not help with the current pipeline capacity problem, it will give valuable options down the road.

CONClusiONThe current pipeline infrastructure is not resilient enough to meet future US demand of oil and natural gas. Primar-

www.ndtahq.com | 15

1 The George Washington University—Face the Facts USA Project, “Pipelines: moving energy and chemicals, but how safely?” 10 Jan 2013. http://www.facethefactsusa.org/facts/pipelines-moving-energy-and-chemicals-how-safely/

2 Association of Oil Pipelines, “Pipelines Retain Leading Role Transporting American Crude Oil and Petroleum Products,” February 7, 2012. http://www.aopl.org/pdf/AOPL_Shift_Report_Press_Release_Feb_7_20121.pdf (accessed January 27, 2013).

3 Ibid, (accessed January 27, 2013).4 Ibid, (accessed January 27, 2013).5 Shell Oil and Gas, “Offshore 101,” Chapter

Four: Transporting Oil and Natural Gas, 5 October 2011, 3. http://s04.static-shell.com/content/dam/shell/static/usa/downloads/alaska/os101-ch4.pdf


7 US energy Information Administration, “Rail deliveries of oil and petroleum products up 38% in first half of 2012,” http://www.eia.gov/todayinenergy/detail.cfm?id=7270

8 US Department of Commerce, US Census Bureau, International Data Base, http://www.census.gov/population/international/data/idb/region.php?N=%20Results%20&T=13&A=separate&RT=0&y=2050&R=-1&C=US#

9 Graham Zabel, “Peak People: The Interrelationship between population Growth and energy Resources,” energy Bulletin, 20 April 2009. http://www2.energybulletin.net/node/48677

10 The Global education Project, earth: A graphic look at the state of the world, World energy Supply, http://www.theglobaleducationproject.org/earth/energy-supply.php

11 US energy Information Administration Office of Integrated Analysis and Forecasting, “US Natural Gas markets: Recent Trends and Prospects for the Future,” may 2001, 17.

12 US energy Information Administration, “Rail deliveries of oil and petroleum products up 38% in first half of 2012,” http://www.eia.gov/todayinenergy/detail.cfm?id=7270

13 Platts Price Group/Oil Division Special Report, “New Crudes, New markets,” march 2013, 6.

14 US energy Information Administration, “Rail

deliveries of oil and petroleum products up 38% in first half of 2012,” http://www.eia.gov/todayinenergy/detail.cfm?id=7270

15 Ibid.16 Ibid.17 Chip Brown, “North Dakota went Boom,”

The New york Times magazine, 31 January 2013. http://www.nytimes.com/2013/02/03/magazine/north-dakota-went-boom.html?pagewanted=all&_r=0

18 US energy Information Administration Office of Integrated Analysis and Forecasting, “US Natural Gas markets: Recent Trends and Prospects for the Future,” may 2001, 16.

19 Ibid, 17-18.20 Ibid, 33.21 Ibid, 19.22 US energy Information Administration,

“Natural Gas year-in-Review,” 10 Jul 2012, 3. http://www.eia.gov/naturalgas/review/print_version.cfm

23 Ibid, 3.24 PennWell Corporation, “Pipeline capacity key

to gas-price market stability in northeastern US and Canada,” Oil and Gas Journal, 28 August, 2000.

25 Ibid.26 Platts Price Group/Oil Division Special Report,

“New Crudes, New markets,” march 2013, 6.27 Ibid, 6.28 Ibid, 7-9.29 Ibid, 11.30 Patti Domm, “US Oil and Gas Boom Takes

many by Surprise,” CNBC Digital, 4 march 2013. http://www.cnbc.com/id/100513916

31 Dian Chu, “Lack of Transport Causes Short Term Problems for US Oil Industry,” OilPrice, 2 April 2013. http://oilprice.com/energy/Crude-Oil/Lack-of-Transport-Causes-Short-Term-Problems-for-US-Oil-Industry.html

32 Daniel Graeber, “Pipelines Can’t Handle North American Oil Boom,” OilPrice, 27 march 2013. http://oilprice.com/energy/Crude-Oil/Pipelines-Cant-Handle-North-American-Oil-Boom.html

33 Platts Price Group/Oil Division Special Report, “New Crudes, New markets,” march 2013, 17.

34 Ibid, 19.35 US energy Information Administration, Office

of Oil and Gas, “expansion of the US Natural Gas Pipeline Network: Additions in 2008 and Projects through 2011,” September 2009, 15.

36 US energy information Administration, “Status of Natural Gas Pipeline System Capacity entering the 2000-2001 Heating Season,”

Natural Gas monthly, October 2000, xviii.37 US energy Information Administration,

“Natural Gas year-in-Review,” 10 Jul 2012, 12. http://www.eia.gov/naturalgas/review/print_version.cfm

38 Ibid, 13.39 Colonial Pipeline Company, “Colonial at Full

Capacity after Hurricane Gustav,” Press Release, 10 September 2008. http://www.colpipe.com/press_release/pr_92.asp

40 Bill mcCaren, GS-14, Bulk Petroleum Purchase Analyst, DLA energy-B, Telephone Interview. 2 April 2013.

41 Ibid.42 Ibid.43 George Atwood, GS-15, Director,

Procurement Process Support, DLA energy, Telephone Interview, 31 march 2013.

44 Ibid.45 Bill mcCaren, GS-14, Bulk Petroleum

Purchase Analyst, DLA energy-B, Telephone Interview. 2 April 2013.

46 Association of Oil Pipelines, “About Pipelines,” http://www.aopl.org/aboutPipelines/ (accessed January 27, 2013).

47 PennWell Corporation, “Pipeline capacity key to gas-price market stability in northeastern US and Canada,” Oil and Gas Journal, 28 August, 2000.


49 Platts Price Group/Oil Division Special Report, “New Crudes, New markets,” march 2013, 9-10.

50 Ibid, 3. 51 US energy Information Administration, “Rail

deliveries of oil and petroleum products up 38% in first half of 2012,” http://www.eia.gov/todayinenergy/detail.cfm?id=7270

52 Transmountain, Industry Safety and Regulations, Pipeline Alternatives, http://www.transmountain.com/pipeline-alternatives

53 editorial, “Gas Pipelines: Next Big Issue; There can be no solution to California’s crisis unless the fuel for new power plants can be delivered,” Los Angeles Times, 26 February 2001, updated 21 September 2011, B6.

54 Ibid, B6.55 Ibid, B6.56 Platts Price Group/Oil Division Special Report,

“New Crudes, New markets,” march 2013, 19.

End Notes

ily due to shale developments, the US oil and gas markets are changing. Users are becoming more reliant on domestic pipe-lines for supply and less dependent on foreign imports.56 The plus-up of rail in transporting oil and gas has temporarily satisfied the additional capacity needs at Bakken and other new developments, but

at much greater cost and less safety than pipelines afford. Additional pipelines are needed now to ensure demand is met and prices are managed. More pipelines also add resiliency to a system that suffers ex-treme stress from increased consumption and interruptions due to weather and mishaps. That said, we also need future

investment in green energy sources of power. This vast resource can be made vi-able, if regulations supported by large en-ergy companies make it profitable. With these changes, the domestic oil and gas industry will be able to take advantage of their new found source of production and meet demand in the future. DTJ

hisTOry Of The fOuNDATiONSince its founding, one of NDTA’s mis-sions has been “to support, conduct and assist programs of transportation educa-tion, science, research and development, among private, industrial, educational and governmental agencies…” These pro-grams required funding. In 1961, the As-sociationestablishedtheNDTAFounda-tion as a separate corporate entity to raise and provide the funds needed to accom-plish this mission.1

TheFoundationhas itsownBoardofTrustees,knownastheFoundationCom-mittee.TheVicePresidentoftheFounda-tion serves as the Chair of the Committee, which is comprised of NDTA’s:• President• ChairmanoftheBoard• Three most recent Chairmen of the

Board• ViceChairmanoftheBoard• VicePresident–Education• VicePresident–Finance• GeneralCounsel• Treasurer

The eArly yeArsDuringitsfirsttwentyyears,theFounda-tion sponsored many different activities:• Funded research projects driven by

specific requests from US Government partners. These projects included stud-ies on how to optimize small ship-ments within DOD, and how to im-proveRedCross vehicle and logisticssupport, among others. The number of research requests quickly exceeded the availability of funds.

• Published industry reports such as“The Role of Transportation in theUnited States Conflicts,” written by NDTA member Dr. E.W. Williams of Columbia University, as well as compilations of presentations given at

NDTA-sponsored events, such as the DOD Container Seminar of 1968.

• UnderwroteadministrativecostsoftheIndustry Advisory Committees (IACs) NDTA set up to advise military com-mandersontransportationissues/chal-lenges. At the time, the IACs operated as tiger teams, addressing specific top-ics. These were so successful that they evolved into the standing national-level committees that have become an integral part of NDTA’s current orga-nizational structure.

• In1968,theFoundationparticipatedin Operation Handi-Vet, a nationalprogram sponsored by the President’s Council for Employment of the Handicapped, designed to find jobs inindustryfordisabledVietnamWarveterans. The Foundation undertookthe task of finding job opportunities in the defense transportation indus-try, identifying viable candidates, and matching them with the available jobs.

• Awardedlifemembershipsannuallytomembers under 40 years of age from each of the Association’s nine regions.

Awardees were selected by a special committee for their outstanding con-tributions to NDTA.

One year, the Foundation even spon-sored a College Essay Contest which, alas, was not very successful.

A NeW fOCusIn1983, theFoundationestablishedanacademic scholarship program. Its first award consisted of two $300 scholar-ships. The winners were William Pow-nell, President of the University of Maryland Student Chapter, and Alfredo Cavazos, Jr., a member of the San Anto-nio Chapter.Since that time, the Foundation has

continued awarding scholarships. As a re-sult of generous contributions, judicious investments, surplus operating funds, and fundraising activities, such as the Duck Races, golf tournaments, and 5Kraces, the value and number of scholar-ships has steadily increased. Over the last

This article is the first in a three-part series that will take a closer look at the NDTA Foundation.

The NDTA FouNDATioNThe “Quiet Committee”

ByLarryLarkin,VicePresident–Foundation,andChair,NDTAFoundationCommittee

It comes as a big surprise to many of our members that NDTA has been operating a foundation that has made frequent contributions to the Association’s success for decades. In fact, the NDTA Foundation celebrated its 50-year anniversary in 2011.


From the October 1984 DTJ:

William Pownell (second from left) is presented with the NDTA scholarship check from Richard A. Borges, NDTA Mid-Atlantic Regional Vice President. Joseph Torsani (sec-ond from right), NDTA State Vice President for Maryland, and Joseph Mattingly (far left), NDTA Career Educa-tion Committee Chairperson, assisted in the presentation.


www.ndtahq.com | 17

Whether it’s military tanks or disaster relief supplies, Landstar Government Services delivers. Our proven track record and unparalleled commitment to safety ensures U.S. government agencies worldwide get every shipment, every day.

As a leader in protective services and movement of arms, ammunition and explosives, Landstar is ready to support our armed forces.

Landstar has a reputation for providing the same care and precision whether transporting pieces of American history or moving America into the future.

Just one phone call delivers access to complete over-the-road, expedited, air and logistics services through a network of more than 1,300 independent sales agent locations and more than 30,000 available truck capacity providers.

For shippers looking for solutions to help manage bidding, scheduling, shipping, tracking, invoicing and reporting, Landstar offers cost-effective, technology-based tools along with our extensive array of transportation services to address supply chain needs from basic to highly complex transportation management solutions.

1-800-443-6808 • www.landstar.com

Landstar Government Services delivers freedom from worrying about your most demanding transportation and logistics needs.FREEDOM

TRANSPORTATION MANAGEMENT SOLUTIONS•AIR•OCEAN•RAIL INTERMODAL•TRUCKLOAD•LTL•HEAVY HAUL/SPECIALIZED•EXPEDITED

Safe. Reliable. Flexible. That’s how Landstar delivers freedom.


On January 7, Secretary of Trans-portation Anthony Foxx told at-tendees of the ninth annual Texas

Transportation Forum that the US iscurrently facing an ‘infrastructure deficit’ that is enough to derail its economy. He explained that, “we risk losing one of the biggest competitive advantages that our country has always had—that is the saf-est, most efficient, and reliable transpor-tation system the world has ever known.”1 While to some this may seem an over-statement, others such as the American Society of Civil Engineers (ASCE) would say otherwise.

The ASCE releases a report card on the state of America’s infrastructure ev-ery four years. The purpose of the report card is to provide a comprehensive assess-ment of current infrastructure conditions and needs, and to make recommenda-tions for improvements. An advisory council assigns grades based on eight cri-teria: capacity, condition, funding, fu-ture need, operation and maintenance, public safety, resilience, and innovation. Since 1998, and including this past year, theUShashadgradesnear failing.For2013, America’s Grade Point Average (GPA) was a ‘D+’. The reason behind such poor grades? Delayed maintenance and underinvestment across most infra-structure categories. Here are the specif-ics of what ASCE has to say about the categories that make up our transporta-tion infrastructure: 2

AviATiON grADe: DDespite the effects of the recent recession, commercial enplanements were about 33 million higher in number in 2011 than

in 2000, stretching the system’s ability to meet the needs of the nation’s economy. The Federal Aviation Administration(FAA)estimatesthatthenationalcostofairport congestion and delays was almost $22 billion in 2012. If current federal funding levels are maintained, the FAAanticipates that the cost of congestion and delays to the economy will rise from $34 billion in 2020 to $63 billion by 2040.3

briDges grADe: C+Over two hundred million trips are taken daily across deficient bridges in the na-tion’s 102 largest metropolitan regions. In total, one in nine of the nation’s bridges are rated as structurally deficient, while the average age of the nation’s 607,380 bridges is currently 42 years. The Fed-eral Highway Administration (FHWA)estimates that to eliminate the nation’s bridge deficient backlog by 2028, we would need to invest $20.5 billion an-nually, while only $12.8 billion is being spent currently. The challenge for federal, state, and local governments is to increase bridge investments by $8 billion annually to address the identified $76 billion in needs for deficient bridges across the US.4

iNlAND WATerWAys grADe: D-Our nation’s inland waterways and rivers are the hidden backbone of our freight network—they carry the equivalent of about 51 million truck trips each year. In many cases, the inland waterways system has not been updated since the 1950s, and more than half of the locks are over 50 years old. Barges are stopped for hours each day with unscheduled delays, pre-venting goods from getting to market and

driving up costs. There is an average of 52 service interruptions a day throughout the system. Projects to repair and replace aging locks and dredge channels take de-cades to approve and complete, exacerbat-ing the problem further.5

POrTs grADe: CThe US Army Corps of Engineers esti-mates that more than 95% (by volume) of overseas trade produced or consumed by the US moves through our ports. To sustain and serve a growing economy and compete internationally, our nation’s ports need to be maintained, modernized, and expanded. While port authorities and their private sector partners have planned over $46 billion in capital improvements from now until 2016, federal funding has declined for navigable waterways and landside freight connections needed to move goods to and from the ports.6

rAil grADe: C+Railroads are experiencing a competitiveresurgence as both an energy-efficient freight transportation option and a viable city-to-city passenger service. In 2012, Amtrak recorded its highest year of rid-ership with 31.2 million passengers, al-most doubling ridership since 2000, with growth anticipated to continue. Both freight and passenger rail have been in-vesting heavily in their tracks, bridges, and tunnels as well as adding new capacity for freight and passengers. In 2010 alone, freight railroads renewed the rails on more than 3,100 miles of railroad track, equiva-lent to going coast to coast. Since 2009, capital investment from both freight and passenger railroads has exceeded $75 bil-lion, actually increasing investment dur-ing the recession when materials prices were lower and trains ran less frequently.7

rOADs grADe: DForty-twopercentofAmerica’smajorur-ban highways remain congested, costing the economy an estimated $101 billion in wasted time and fuel annually. While the conditions have improved in the near term, and federal, state, and local capital investments increased to $91 billion an-nually, that level of investment is insuf-ficient and still projected to result in a decline in conditions and performance in the long term.Currently, theFHWAestimates that $170 billion in capital in-

AmeRICA’S TRANSPORTATIONINFRASTRUCTURe

BySharonLo,DirectorofPublicRelations,NDTA

www.ndtahq.com | 19

vestment would be needed on an annual basis to significantly improve conditions and performance.8

ASCE estimates that if current trends continue through 2020, the investment needed to maintain our transportation infrastructure in a state of good repair (a grade of ‘B’) will be $248 billion per year. Funding is predicted to only cover54% of this amount, leaving a funding gap of approximately $114 billion each year10—a daunting figure when consid-ering the US government’s budget issues over the past year. However, it is all not doom and gloom, there is some good news—the 2013 ‘D+’ reflects improve-ment from a grade of ‘D’ in 2009. Since 2009, bridges improved from a ‘C’ to ‘C+’ and roads improved from a ‘D-‘ to a ‘D’. The greatest improvement, however, was in rail infrastructure, which went from a ‘C-‘ to a ‘C+’.11 While the US has not quite reached an overall passing GPA, at least there is progress.

This progress is a direct result of invest-ments in infrastructure projects. The As-sociationofAmericanRailroadsestimatesthat in recent years, freight railroads have spent approximately $12 billion per year on infrastructure and another $10 bil-lion on equipment.12 Funds for otherimprovements, such as those to bridges and roads, have been made using funds from a variety of sources, including pub-lic private partnerships, funds from state and local governments, and funds from the federal government. Federal fundsincludethosefromtheAmericanRecov-ery and Reinvestment Act (also knownas stimulus funds). In a January 8, 2014 interview with PBS Newshour, former PennsylvaniaGovernor Ed Rendell said about the stimulus funds, “Pennsylvania got a billion dollars for its roads and high-ways. We created 24,600-plus jobs with that billion dollars. We repaired bridges and roads. Thanks to stimulus and mon-ey that I put in, state money I put in, we went from having 6,600 structurally defi-cient bridges to 4,500.”13

Another important piece of legisla-tion, the Moving Ahead for Progress in the21stCenturyAct(P.L.112-141,alsoknown as MAP-21) was signed into law in July of 2012 and provided funding for surface transportation programs through FiscalYear2014(FY2014).Withtheend

ofFY2014onlyeightmonthsaway, theHouse Committee on Transportation and Infrastructure has already kicked off its push for reauthorization and hopes to bringitsbilltotheHouseofRepresenta-tives floor before Congress takes its Au-gustrecess.Regardingthebill,Commit-tee Chairman, Congressman Bill Shuster says, “This bill needs to be fiscally re-sponsible and to build on the reforms in MAP-21. We need to continue to reduce regulatory burdens. And we need to make sure our federal partners have flexibility in how they spend their money and ap-prove projects.”14

While it remains to be seen how the budget woes of the past year will affect these Acts and other measures that pro-vided funds for infrastructure invest-ments, President Obama is continuing to encourage transportation and infra-structure spending. During his State of the Union Address on January 28, 2014, he asked Congress to finish transporta-tion and waterway bills this summer, promising to slash bureaucracy and streamline the permitting process for key projects.15 The group Building America’s Future

has their own recommendations for how the US can address its transportation in-frastructure needs, including passing a long-term transportation bill, establish-ing a national infrastructure bank to fund freight and other industrial projects, and consideration of gas or mileage fees to fundbuilding andmaintenance.FormerSecretaryofTransportationRayLaHood,who is co-chair of the group says, “We have to do something about the gas tax or a vehicle miles travel tax. And we have got to be realistic about that. We have got to create an infrastructure bank that can do credit enhancements that will allow more money to flow into the system.” While others from state and local governments, as well as private sector must take part in reviving America’s infrastructure, Secre-tary LaHood thinks the Federal govern-ment must take the lead.16

For the time being, America’s infra-structure appears to be left in a state of flux. Will reduced government spending mean the ‘D+’ GPA can be expected to re-main (or even slip backwards)? While the idea of continuous government spending may be hard to stomach, what happens if we do not invest in these improvements

standstobefarworse.Fromdisasterssuchas theI-5SkagitRiverBridgecollapsetorevenue lost daily from traffic delays, there are too many things that can—and likely will—gowrong.Realisticlong-termsolu-tions must be sought by both politicians and the American public. Investment in our transportation infrastructure now will result in long-term savings and financial stability for our country far into the fu-ture. DTJ

eNDNOTes1 Forsyth, Jim. 1200 News Radio WAOI. January

7, 2014. http://www.woai.com/articles/woai-local-news-119078/us-transportation-secretary-in-sa-infrastructure-11952361/ (accessed January 16, 2014).

2 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/ (accessed January 17, 2014).

3 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/aviation/overview (accessed January 17, 2014).

4 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/bridges/overview (accessed January 17, 2014).

5 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/inland-waterways/overview (accessed January 17, 2014).

6 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/ports/overview (accessed January 17, 2014).

7 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/rail/overview (accessed January 17, 2014).

8 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/roads/overview (accessed January 17, 2014).

9 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/transit/overview (accessed January 17, 2014).

10 American Society of Civil engineers. 2013. http://www.infrastructurereportcard.org/a/#p/grade-sheet/americas-infrastructure-investment-needs (accessed January 18, 2014).

11 American Society of Civil engineers. 2009. http://www.asce.org/Infrastructure/Report-Card/2009-Report-Card-for-America-s-Infrastructure/ (accessed January 22, 2014).

12 Association of American Railroads. n.d. https://www.aar.org/keyissues/Pages/Infrastructure-Investment.aspx#.Uu-k7rSiaPU (accessed January 24, 2014).

13 Rendell, ed, interview by Judy Woodruff. Former Governor of Pennsylvania (January 8, 2014).

14 Schuster, Bill, statement from hearing on Building the Foundation for Surface Transportation (January 14, 2014).

15 Obama, Barack, State of the Union Address (January 28, 2014).

16 PBS Newshour. January 8, 2014. http://www.pbs.org/newshour/bb/nation-jan-june14-infrastructure_01-08/ (accessed January 25, 2014).


ByColJohnT.Rausch,USAF(Ret.) andKurtLengert

During the week of 4 November 2013, NDTA‘s European Regionarranged several informational

and training events for organizations and personnel involved in military transpor-tation chains in Europe. On 4 Novem-

ber, LTG Kenneth Wykle, USA (Ret.),President,NDTA,andColJohnRausch,USAF (Ret.), President, NDTA Euro-pean Region welcomed approximately50 industry and military members in the 435 Construction Training Squadron Auditorium, Ramstein AB, Germany.Keynote speeches delivered by MG John O’Connor, USA, Commander 21st The-ater Sustainment Command (TSC), and LTGWyklehighlightedthechallengesofmilitary distribution chains for globally positioned forces.

During the event, senior leaders from the 21st TSC, European Command (EUCOM) Logistics Directorate (J4)European Deployment and Distribution Operations Center (EDDOC), 521st Air Mobility Operations Wing (AMOW), 598th Transportation Brigade, and 86th Logistics Readiness Group (LRG) pro-vided information on strategic aspects of today’s environment, with regard to tran-siting Europe with military goods. During surface and air transportation panels, par-ticipants discussed military and industry capabilities, and highlighted achievements and challenges for sustainment of missions and retrograde operations from deployed locations in remote areas of the world. All

participants agreed that events like this are extremely valuable in providing an oppor-tunity to exchange information, learn, and improve processes and services supporting the military supply chain. The audience included members of industry, employees of United States military logistics organi-zations, and logisticians of the German andBelgianarmedforces.TheRhinelandPfalz Chapter, under the lead of MSgt Daisy Galan, USAF; and the BeneluxChapter,undertheleadofLt.Col.(Res.)Eddy Geudens, BE Army, provided sup-port as conference administration.

On 6 November, a group of NDTA membersmetwithleadersoftheLogis-

ticsCenteroftheGermanArmedForces(GAF)atWilhelmshaven.TheGAF,un-der the lead of LtCol Funke, provideddetailed information on how the na-tional and international logistics system oftheGAFisorganized.Aspecialitemof interest was the movement control system installed in accordance with the NATO Allied Movement Publications (AMovP). This includes requirements for road transport, border crossing, com-munication standards for routings, and intermodaltraffic.SeveralGAFlogisticsagencies, offices of the Federal Minis-try of Defense, and civil authorities are involved in clearing cargo of United

SPECIAL REPORT | NDTA European Region

Col John Rausch, USAF (Ret.), President of the NDTA European Region, welcomes members of in-dustry and the military.

LTG Kenneth Wykle, USA (Ret.), President of NDTA, highlighted challenges mil-itary distribution chains for global forces.

Senior military leaders provided information on strategic aspects of today’s environment.

Surface panel members discussed military and industry capabilities.

www.ndtahq.com | 21

States and other foreign forces in Ger-many. The information received can be applied in other European NATO and Partnership for Peace member states, as many have similar clearance systems in place for military cargo. This reflects the AMovP NATO standards and the Eu-ropean Union Directives. It was learned that up to five different authorities, military and civilian, can be involved in clearing a United States military or foreign forces cargo transport. Failureto achieve all appropriate approvals can lead to refusal by customs agencies to al-low border crossings.

On 7 November, the group of NDTA members visited the Hamburg Harbor and the offices of NDTA member Kühne & Nagel (K&N). At K&N, participants received an overview of the capabilities of a globally organized logistics provider and how the military customer can ben-efit from such capabilities. K&N was es-tablished in 1890 in Bremen, GE, and is present in over 100 countries, with more than 1,000 offices. K&N employs over 65,000 people. According to K&N, the company is number one worldwide in seafreight with 3.2 million Twenty-foot Equivalent Units (TEUs), and ranked in the top three for air cargo, including charter flights for industry and military supply chains. It also provides road and rail service, as well as over seven million square meters of warehouse capability. That is equal to 1,729,731 acres! Ap-plying the non-development view, the briefers from K&N clearly demonstrated how a globally organized logistics pro-vider can manage a military supply chain in any part of the world. The additional aspects which a regular military supply chain cannot easily achieve include co-operation with other commercial pro-viders and the consolidation of military goods of various nations in one line of communication. This has the potential to achieve synergies and cost savings that are not available to a single supply chain managed by one nation‘s military logis-tics organization. After the briefings and discussions the group received an impres-sive tour of the largest German seaport, the Hamburg Harbor. DTJ

Air panel members highlighted retrograde achievements and challenges.

NDTA members met with leaders of the Logistics Center of the German Armed Forces in Wilhelmshaven.

NDTA members visited the offices of NDTA corporate member Kühne & Nagel.

During their visit to Kühne & Nagel, NDTA members received an overview of the globally organized logistics provider.


Since 2001, the US Central Com-mand (USCENTCOM) has worked with coalition represen-

tatives from more than 55 nations that stand with the US, prepared to react to regional contingencies within the US-CENTCOM Area of Responsibility(AOR).Thisincludestwentycountriesincentral Asia and the Middle East.

There are approximately 250 US-CENTCOM Coalition representatives and their families living in Tampa. The annual “Coalition International Night” is put together as a token of the coali-tion’s appreciation for the support from local military and civilian leadership in Tampa, includingNDTA.RADMMatsFogelmark, Senior National Represen-tative, Sweden, and Chairman of the Coalition Forces/USCENTCOM Mac-Dill Air Force BaseTampa, invitedMr.DarenBaker,NDTA’sSouthEasternRe-gional President to bring a small group of NDTA representatives to attend the 2013 Coalition International Night on December 5, 2013. Some of the NDTA attendees included: Daren Baker (South East Regional President), Wally Gon-zalez (Florida State President), Lt ColJanette Ketchum (Tampa Bay Chapter President), and Scott Hood (Tampa Bay Chapter Secretary and Treasurer).

As a tradition since 2004, Internation-al Night is an opportunity for coalition members and their families to display and discuss their unique customs and culture, while offering national culinary delights.

The concept of International Night is not rooted in formalities, but rather serves as an opportunity for camarade-rie, education, fun, and an appreciation of language and cultural differences that helps to unify the efforts of members of the USCENTCOM coalition.

NDTA members participating in the 2013 Coalition International Night were honored to attend and found themselves

amazed at the generosity, friendliness, and wonderful food and drinks offered by the various countries. There was so much to see that the NDTA members found it challenging to engage with every country, much less sample all the goodies being of-fered—though they certainly tried! Every-one enjoyed the opportunity to talk with country representatives and thank them for their steadfast support, including theRo-

manians, Canadians, British, Australians, Jordanians, Italians, and many others.

The NDTA Tampa Bay Chapter are keeping their fingers crossed that there is another Coalition International Night next year and it can expand its atten-dance! DTJ

ChAPTER SPOTLIghTTampa bay Chapter representatives Joined usCeNTCOM Coalition Partners for an international Celebrationby Daren baker and scott hood

“ it’s sometimes difficult to celebrate the separate national days of each country, so to make it easy, we set all of them up as a way to say thank you to usCeNTCOM and MacDill Air force base for being great hosts ”– RADm mats Fogelmark, Senior National Representative, Sweden, and Chairman of the Coalition Forces/USCeNTCOm macDill AFB Tampa

Scott Hood, Tampa Bay Chapter Secretary and Treasurer, enjoys a bagpipe performance.

Daren Baker, South East Regional President, watches as the band plays on.

www.ndtahq.com | 23

CUT AT LINE & MAIL OR FAx TO: National Defense Transportation Association |50S.PickettSt.,Suite220,Alexandria,VA22304-7296|(FAX)703-823-8761

Costs are minimal, but the rewards are great!>> Contact NDTA for more information at 703-751-5011 or visit www.ndtahq.com <<

NDTA MeMbershiPMaybe you know someone who would like to join. The National Defense Transportation Association (NDTA) is a non-political and non-profit educational Association composed of government, military, and industry professionals dedicated to fostering a strong and efficient global transportation and lo-gistics system in support of national security. membership in NDTA affords opportunities to serve and educate the commu-nity in your area of expertise as well as other special benefits.

AppliCAtion for MeMbership

Name

Position/Title

Organization

mailing Address

City State Zip

Work Phone email

Birth Date Chapter Affiliation

Sponsor

Membership type $450.00 – LIFe

$110.00 – Regular (3 years)

$40.00 – Regular (1 year)

$30.00 – SPeCIAL RATe young Leaders (35 years or younger) Gov (GS 10 & below)/ military (Pay grade 03 & below + enlisted grades) Retired (Not employed)

$15.00 – Students

Amount Remitted $ ____________________

Donation to the Foundation $ ____________________

COrPOrATe MeMbershiPCorporate membership in NDTA provides increased exposure and networking opportunities for those companies wanting to do business with the US government or military. membership should be a key part of any business plan where the defense and government transportation, travel, and logistics system is the target market. When you join NDTA as a corporate member, your company’s executives will have the opportunity to share ideas with top military, government, and industry officials at NDTA events. These events are conducted and attended by high-level military decision-makers, defense and other government officials, and industry leaders—the individuals who are setting and influenc-ing the transportation, travel, and logistics agenda for the future.

AppliCAtion for MeMbership Name

Position/Title

Organization

mailing Address

City State Zip

Work Phone email

Fax

Membership type $9,500.00 – Chairman’s Circle Plus(Global or national company with multiple operating entities)

$6,200.00 – Chairman’s Circle (Global or national operating company)

$1,200.00 – Sustaining member (National or Regional operating company)

$550.00 – Regional Patron (Small Business or local operating company)

Amount Remitted $ ____________________

Donation to the Foundation $ ____________________

Check # ________ Discover Visa masterCard American express

Card No.

expiration Date

Cardholder’s Name

Signature

Check # ________ Discover Visa masterCard American express

Card No.

expiration Date

Cardholder’s Name

Signature


How much priority is given within your organization to developing talent? This concerns both recruit-

ing new workers, as well as developing cur-rent workers in your organization. And, how well has your organization evolved to understand those coming into the work-place in the past ten years, as well as those coming in the future? We’ll take a look at how talent management and the knowl-edge value revolution are intertwined, and call for a very different approach from the “non-connected online, non-global world” before the turn of the century.HaveyouwatchedMTV?Yes,weknow

MTVasarepositoryofoldmusicvideos,but it is also a reflection of tastes, culture, and style of the millennial generation. MTVconductedthe“NoCollarWorker”survey which revealed that 89% (!) of mil-lennials (who will compromise 75% (!) of all employees only a little more than a decade from now in 2025) think it is im-portant to be constantly learning at their job.5 And how is this learning expected? It is much more of a hybrid, blended ap-proach that will involve classroom train-ing, as well as collaborative, social and on-demand approaches. “Embedding col-laboration into corporate learning so that employees seamlessly learn while working and work while learning is as fundamental to the future as ever before . . .”6

ThereareotherhighlightsoftheMTVsurvey:1. 80% of millennials want regular feed-

back from their supervisors.2. 89% want their workplace to be social

and fun.3. 50% would rather have no job than a jobtheyhate. (Really?Gohometotheir parents?)

So what are the options available to your organization to enable the Millenni-als to learn while doing, learn on demand, and have fun? Gamification is one of the more popular options. How so? Seek to redesign everyday routines and tasks,

everything from employee training and recruiting, to product testing and sales force management, to be more game-like and interactive. The Gartner Organiza-tion predicts that some 70% of a survey of 2,000 organizations will use gamified applications for employee performance, health care, marketing, and training by the end of 2014.7

Here are three steps to adopt a gamifi-cation strategy:1. Articulate the business problem to be

addressed, incorporating a multi-dis-ciplinary team approach, and incorpo-rate tools to measure success.

2. Utilize a feedback mechanism to gath-er and learn from new data.

3. Keep the process dynamic, tweak-ing, measuring, and enhancing your approach as part of a continuous im-provement process.

Finally,talentmanagementwillachievesuccess when it is owned by all areas of the company, and not relegated to the HumanResource(HR)department:1. The HR departments will integrate

talent management into management programs.

2. Integrate people processes into stan-dard business processes, such as corpo-rate strategic planning, budgeting, and new product development.

3. Shift responsibility to managers, push-ing accountability and the responsibil-ity for executing people management down to the line management levels.

4. Measure success with productivity, shifting success measures from the more traditional HR and recruiting func-tional metrics, towards measuring the overall productivity of the workforce.8

The application of talent management strategy has critical consequences for the defense industry. Specifically, in aero-space, the workforce crisis is worsening. “The so-called silver tsunami—the aging of the country’s population—will hit the

aerospace industry especially hard. It re-ceived an influx of workers in the Apol-lo era . . . Cuts to that program in the mid- to late-1970s and 1980s, plus the VietnamandColdWars,kepttheindus-try from ever receiving a major infusion of fresh talent. As a result, the average age for an aerospace and defense worker today is 45-47 for an aeronautical engi-neer—compared to the median age of 42

The future of Workhow Talent Management is Poweringthe knowledge value revolution

irvin varkonyi, President, Supply Chain Operations Preparedness education (SCOPe)[email protected]

DeFINITIONSTalent Management – the integrated process of ensuring that an organiza-tion has a continuous supply of highly productive individuals in the right job, at the right time. Rather than a one-time event, talent management is a continuous process that plans talent needs, builds an image to attract the very best, ensures that new hires are immediately productive, helps to retain the very best, and facilitates the con-tinuous movement of talent to where it can have the most impact within the organization.1

knowledge value – the traditional ele-ments that give products and services value—the value of the materials and labor that went into the product or service—have shifted toward a single dominant element. That element is the value of the knowledge contained in a product or service.2

Millennial(s) – a term used to refer to the generation, born from 1980 onward, brought up using digital technology and mass media, the children of Baby Boomers; also called Generation y.3

gamification – gamification is a novel, new way to scale motivation efforts in an attempt to boost performance of some kind by enhancing the focus of workers to accomplish more by making tasks more engaging and game-like.4


www.ndtahq.com | 25

LGL is a premier provider of comprehensive multimodal transportation and logistical services to cargo shippers around the world.

WE OFFER: WE TRANSPORT:100% Under Deck StowageCargo SupportDoor to Door ServicesLogistics ManagementManagement & Operations

New Factory AutomobilesRolling StockPrivately Owned VehiclesTracked VehiclesTrucksHeavy Equipment

Project CargoHelicoptersBreak-bulk CommoditiesTrailersSOCs

MultimodalPort SupervisionRo/Ro ServicesU.S. Flag & Non U.S. Flag Tonnage

Contact us at: +1-516-488-8800For Rate Quotes: [email protected] Bookings: [email protected]: www.libertygl.com

Specializing in USEC Gulf/Middle East/Mediterranean

LIBERTY GLOBAL LOGISTICS LLC

Houston, TX - Beaumont, TX - Jacksonville, FL - Baltimore, MD - Wilmington, DE - Providence,

RI, Beirut -Aqaba - Jeddah - Salalah - Karachi - Jebel Ali - Dammam - Kuwait

Additional ports served via T/S or inducement: Misurata, Mersin, Alexandria, Mumbai, and Umm Qasr

›››››

››››››

›››

››

››››


AAR CORP. + PLUS

Agility Defense & Government Services + PLUS

American Shipping & Logistics Group + PLUS

APL Limited + PLUS

Atlas Air Worldwide Holdings + PLUS

Avis Budget Group + PLUS

Bennett Motor Express, LLC + PLUS

Boyle Transportation, Inc. + PLUS

CEVA Logistics + PLUS

Choice Hotels International + PLUS

Echo Global Logistics, Inc. + PLUS

FedEx + PLUS

Final Mile Logistics + PLUS

Hapag-Lloyd USA, LLC + PLUS

Innovative Logistics, LLC + PLUS

InterContinental Hotels Group Americas + PLUS

Landstar System, Inc. + PLUS

Leidos + PLUS

Liberty Global Logistics-Liberty Maritime + PLUS

Maersk Line, Limited + PLUS

National Air Cargo + PLUS

Omni Air International + PLUS

Panther Expedited Services, Inc. + PLUS

Ports America + PLUS

Supreme Group USA, LLC + PLUS

TOTE, Inc. + PLUS

Universal Truckload Services, Inc. + PLUS

UPS + PLUS

CHAIRMAN’S CIRCLE

These corporations are a distinctive group of NDTA members who, through their generous support of the Association, havededicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

A Team Logistics LLCAmerican Roll-On Roll-Off Carrier

Best Western InternationalBNSF Railway

Bristol AssociatesDHL Global Forwarding

Fikes Truck Line

Global Aviation Holdings Inc.Hertz CorporationHorizon Lines, LLC

International Shipholding CorporationKGL Holding

Lockheed MartinMatson Navigation Company Inc.

National Air Carrier AssociationNorfolk Southern Corporation

R & R TruckingRaith-CTS LogisticsThe Pasha Group

Union Pacific RailroadU.S. Bank

www.ndtahq.com | 27

REGIONAL PATRONSAcme Truck Line, Inc.Agile Defense, Inc.Alaska Marine LinesAlaska West ExpressAll-Lift Systems, Inc.Allswell Supply CompanyAmerican Moving & Storage AssociationAmerican Trucking AssociationsAmyxAssociation of American RailroadsATS Specialized, Inc.Blkbird, Inc.Boeing CompanyC5T CorporationCakeBoxx TechnologiesCargo Experts Corp.Cargotec USA, Inc.Cavalier LogisticsCenter for the Commercial Deployment of

Transportation Technologies (CCDoTT)

Ceres Terminals IncorporatedCgM-NV a NovaVision CompanyChapman Freeborn AircharteringChassis King, Inc.Dalko Resources, Inc.EADS North AmericaEnterprise holdingsEnterprise Management SystemsErudite CompanyEuropcar Car & Truck RentalFlightWorksFMN International, Inc.Fox Rent A Carhanjin Intermodal America, Inc.JAS ForwardingK & S Trucking, LLCKalitta Charters, LLCLMJ International Logistics, LLCLoad Delivered Logistics, LLCMarriott InternationalMcLane Advanced TechnologiesMCR Federal, LLC

Mi-Jack ProductsMilitary Sealift Command (MSC)Miramar TransportationMorten Beyer & AgnewMOTIONOLOgY, INC.M-Pak IncorporatedNaniq global Logistics LLCNational Motor Freight Traffic Association, Inc.NCI Information Systems, Inc.NFIOakwood WorldwideOverwatch, Inc. (a division of Avalon

Risk Management)Owner-Operator Independent Drivers

AssociationPak Shaheen Freighters (Pvt) Ltd.Patriot Contract Services, LLCPayless Car Rental System, Inc.Philadelphia Regional Port AuthorityPITT OhIOPort of Port ArthurPortus

Reckart Logistics, Inc.Royal Trucking CompanyRyan’s Express TransportationSea Box, Inc.Seabridge, Inc.Seatac Marine ServicesSemper Veritas Maritime Security SolutionsSicuro group LLCSkyLink Air and Logistics Support (USA), Inc.Southeast Vocational AllianceStratos Jet Charters, Inc.Techguard SecurityTennessee Steel haulersThe Cartwright CompaniesTrailer Transit, IncTrans global Logistics Europe gmbhTRI-STATE Expedited Service, Inc.Utley, Inc.Virginian Suites ArlingtonYRC Freight

HONORROLL OF SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THeSe FIRmS SUPPORT THe PURPOSeS AND OBJeCTIVeS OF NDTA

SUSTAINING MEMBERS

1-800-PACK-RATAAT CarriersABF Freight System, Inc.AccentureACTCO-Afghanistan LogisticsAdvantage Rent A CarAeroscraftAir Transport International, LLCAirlines for AmericaAIT Worldwide Logistics, Inc.Alaska Airlines/Alaska Air CargoAl-hamd International Container

TerminalAmerican Maritime OfficersArven Services, LLCAssociated global SystemsAtlas InternationalBaggett Transportation CompanyBooz Allen hamilton Engineering

Services, LLCC.L. Services, Inc.C2 Freight Resources, Inc.Carlson Rezidor hotel groupCgIChalich Trucking, Inc.Chamber of Shipping of AmericaCitigroupCoyne AirwaysCoyote Logistics, LLCCrowley Maritime Corp.CRST Logistics, Inc.CSCCSX Transportation

Cubic global Tracking Solutions, Inc.CWT SatoTravelDAMCODB SchenkerDelta Air LinesDhL ExpressDollar Thrifty Automotive groupDynamics Research CorporationEmbry Riddle Aeronautical UniversityEnterprise Database CorporationEstes Forwarding Worldwide, LLCExecutive Moving Systems, Inc.Express-1, Inc.FlightSafety InternationalFluorgE Aviationgeneral Dynamics/

American Overseas MarinegeoDecisionsgreatwide Truckload Managementgreen Valley Transportation Corp.hilton Worldwidehub group, Inc.IBMIntermarine, LLCIntermodal Association of North

America (IANA)International Longshoremen’s

Association (ILA), AFL-CIOInternational Organization of Masters,

Mates & PilotsInterstate InternationalJ. B. hunt Transport, Inc.Kansas City SouthernKeystone Shipping Co.

Knight TransportationKrown1 FzcKU Transportation Research InstituteKuehne + Nagel, Inc.LabelmasterLMILockheed Martin AeronauticsM2 TransportMarine Engineers’ Beneficial AssociationMayflower TransitMcCollister’s Transportation Systems, Inc.Medallion Transport & Logistics, LLCMenlo Worldwide LogisticsMercer Transportation CompanyNational Van Lines, Inc.North Carolina State Ports AuthorityNorthern Air Cargo Inc.Ocean Shipholdings, Inc.Omega World TravelOmnitracs, LLCOne Network Enterprises, Inc.ORBIS CorporationOverdrive Logistics, Inc.PanalpinaPilot Freight ServicesPODSPort of BeaumontPort of San DiegoPosidonPratt & WhitneyPreferred Systems Solutions, Inc.Prestera Trucking, Inc.Priority Solutions InternationalPriority Worldwide ServicesRadiant Logistics Partners LLC

Ramar Transportation, Inc.Roadrunner Transportation SystemsRockey’s Moving & Storage, LLCSammons TruckingSBA global Logistics ServicesSeafarers International Union of N.A.

AgLIWD (SIU NA)Sealed Air CorporationSealift, Inc.Secured Land TransportSEKO LogisticsSouthern AirSouthwest Airlines Co.SRA International, Inc.Teradata CorporationTextainer Equipment Management

(U.S.) LimitedThe ExchangeThe Parking SpotTQLTransportation InstituteTransportation Intermediaries Assn. (TIA)Transportation Management ServicesTri-State Motor Transit Co. (TSMT)TTX CompanyTucker Company Worldwide, Inc.United AirlinesUnited Van Lines, Inc.UniTrans International, Inc.UTi Aerospace and Defense groupWinston & Strawn LLPWomen In Trucking Association, Inc.


sevenyears,theFoundationhasawardedscholarships to 140 students. Scholarships awarded average $32,000 each year, rang-ing in value from $500 to $6,000. When combined with the scholarships awarded by local chapters, NDTA awards some $100,000 in scholarships every year.

Initially, scholarships were awarded to enrolledcollegestudentsstudying/major-ing in the field of transportation. Quali-fying fields of study were later expanded to include logistics, supply chain, physical distribution, and passenger travel services. The program was then opened to college-bound high school graduates interested in careers in these fields. In recent years, to address the needs of deployed person-nel, the program was further expanded to include students enrolled in distance-learning college programs.TheFoundation’smissionofawarding

scholarships is more important than ever. As the cost of attending college has risen astronomically over the past 10-15 years, so has the amount of debt students have had to take on in order to earn a degree. Student loan debt has surpassed $1 tril-lion and is now greater than credit card

debt in the United States.2 Seventy per-cent of the class of 2013 graduated with an average debt of $35,200—an increase of 55% from 2005.3 Even more alarm-ing is the fact that one third of student loan borrowers under 30 years of age are over 90-days delinquent on their loans—a 65% increase from 2004.4 This is an un-sustainable trend. Easing the burden of a college education for the future leaders of our profession is now a major priority for theFoundation. DTJ

More information on the NDTA Founda-tion and national scholarships, including a link for donations, can be found under the Education tab on the NDTA website www.ndtahq.com.

Special thanks to Mark Victorson for con-tributing to the research of this article.

1 In 1968, the Foundation was brought under the NDTA structure though it still operates as a separate non-profit entity.

2 Bureau of Consumer Protection; US Dept. of education.

3 Study conducted by Fidelity Investments; Federal Reserve Bank of New york.

4 Investor’s Business Daily, may 7, 2013.

The Path Between the Seas by David Mc-Cullough (Simon & Schuster, 1978), ISBN-13: 9780671244095, 704 pages, in paper-back ($15.53) and Nook book ($14.57).

First, a glorious vision of what might be animates worldwide imagina-tions: a canal to bisect the New

World whereby commerce in vast quan-tities would pass more cheaply than any-one had heretofore dreamed. France inparticular had the vision and the man for the job: FerdinanddeLesseps,whohadled the construction of the Suez Canal. A long back and forth about the new ca-nal’s route several times almost gave the nod to Honduras. Then, what type of ca-nal should it be: sea level or lock based? Meanwhile, the Isthmus of Panama fes-tered-a malarial swamp interspersed with

high mountains, awash in bubbling mud, sick with yellow fever. Pulitzer Prize win-ner McCullough gathers all these threads and adds the human drama: engineers who underestimated the challenge; their families, many of whom died from the yellow fever; and black workers from the Caribbean who were better paid than they could have been elsewhere. The engineer-ing was spectacular; the locks still func-tion flawlessly today. (Editorial ReviewbyDonWismer,CaryMemorialLibrary,Wayne,ME,Copyright2004ReedBusi-ness Information.) In addition to Mc-Cullough’s excellent writing, there are numerous photographs that add to the richness of the book. This work is still the definitive chronicle of the building of the Panama Canal. I am partway through the book and simply cannot put it down. DTJ

The Path between the seas

kent gourdin

for all American workers . . .”9 The wave of retirements is the silver tsunami.

Will the right talent management ap-proach, utilizing gamification and other collaborative, on demand strategies en-courage infusion of workers into the de-fense industry, and incorporate the right learning approach? The Society of Hu-man Resource Management (SHRM)and leading organizations believe it can. Do you? DTJ

1 “Talent management Defined,” Dr. John Sullivan, www.ere.net, Sept 13, 2004

2 Taichi Sakiya, quoted by Glen Hiemstra, Supply Chain 24/7, www.supplychain247.com, Dec 10, 2013

3 www.dictonaryreference.com 4 www.humancapitalist.com, Oct 17, 20135 www.supplychain247.com 6 www.supplychain247.com 7 www.supplychain247.com 8 www.ere.net, Dr. John Sullivan, Sept 13, 20049 www.management.fortune.cnn.com,

Claire Sillman, Nov 12, 2013

continued from page 24

APL ...................................................... C3ARC .........................................................9Bennett ............................................... C2Boyle Transportation ............................6 Budget .................................................14Fedex .................................................... C4Innovative Logistics .............................2Landstar ................................................17maersk Line, Limited ............................1Liberty Global Logistics ......................25

DTJ iNDex Of ADverTisers

Howard is being transformed into Panama Pacifico, a multi-use facility which will in-clude a large free-trade zone offering legal, immigration, and labor incentives, as well as business and residential developments. In fact, Panama is emerging as a business hub for all of Central and South America, due, in no small part, to the canal and sup-porting infrastructure built by the US. I was happy to see these resources being used to develop more economic opportunities for the people of Panama. DTJ



For more than 160 years, APL has been working to ensure our service men and women always

have what they need to get the job done. Our unparalleled experience in ocean transportation

and in-country logistics sets us apart from the competition. APL’s successful, long-standing

relationship with the military proves that we have the resources and know-how to deliver when

it counts. We won’t let you down, and more importantly, we won’t let down the troops who

rely on the supply chain. We pride ourselves on being the mission critical link to success for our

military yesterday and today, and we’ll be there for our troops tomorrow.

To learn more about how we serve those who serve, visit www.apl.com/usflag.

Steaming jungles, blazing deserts, frozen mountaintops. No matter where the dinner order comes from, we’re the reason MREs are never MIA.

U.S. FlagServices

We’re not in the military, but we’re proud to serve the U.S.We take our job and yours very seriously. At FedEx, you can count on us for access to networks in more than 220 countries and territories and the flexibility to handle anything that comes your way. And you can trust that there’s pride in everything we do.

fedex.com

Documents

Defense Transportation Journal