LH TLS Consultation Summary Report v9 final draft 151112 · consistency, quality and operating standards, productivity and transparency and accountability. The new TLS requirements

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PORT METRO VANCOUVER TRUCK LICENSING SYSTEMLong Haul Trucking Consultation Report

NOVEMBER 2015

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Prepared by: Lucent Quay Consulting Inc. Suite 430 - 688 West Hastings Street Vancouver, BC V6B 1P1

TRANSITION

Consultation Summary Report

Long Haul Truck Licensing System November 2015

This independent report of findings, including data entry and analysis of all consultation input received, was prepared by Lucent Quay Consulting Inc. (Lucent Quay) for Port Metro Vancouver. Port Metro Vancouver will consider the results of this consultation program along with ongoing technical analysis and dialogue with provincial and federal agencies in finalizing the new long haul Truck Licensing System. The opinions and suggestions included in this report are those of the consultation participants and not Lucent Quay. PORT METRO VANCOUVER LONG HAUL TRUCK LICENSING SYSTEM Consultation Summary Report REPORT

10 November 2015 Lucent Quay Consulting Inc.

688 West Hastings Street, Suite 430 Vancouver, BC V6B 1P1



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Table of Contents

Executive Summary ...................................................................................................................................... iii

1. Overview .............................................................................................................................................. 1

1.1. About this Report ...................................................................................................................... 1

1.2. TLS History ................................................................................................................................ 1

2. Consultation Process ............................................................................................................................ 2

2.1. Overview ................................................................................................................................... 2

2.2. Notification ................................................................................................................................ 2

2.3. Stakeholder Meeting ................................................................................................................. 2

3. Summary of Input ................................................................................................................................. 3

3.1. Key Themes of Input ................................................................................................................. 3

3.2. Summary of Written Feedback ................................................................................................. 4

4. Next Steps .......................................................................................................................................... 10

Consultation Materials ........................................................................................................ 12

Meeting Notes .................................................................................................................... 14

Written Feedback ................................................................................................................ 16



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Executive Summary

History of Long Haul Truck Licensing System Reform

This report presents the findings of consultation undertaken in October 2015 regarding long haul operators accessing Port Metro Vancouver's container terminals. A total of 16 companies participated through a consultation meeting and email feedback. This represents approximately 53 percent of all long haul operators currently licensed in the Truck Licensing System (TLS) system.

Port Metro Vancouver's TLS reform was designed to enable a number of key outcomes and operating principles established as part of the Smart Fleet Trucking Strategy. These changes are intended to deliver long-term stability to the drayage sector with fewer local drayage trucks and more efficient, financially invested trucking companies.

The local drayage component of Port Metro Vancouver’s new TLS program came into effect in February

2015. This component of the TLS program was developed based on consultation undertaken in spring and fall 2014, which included participation from some long haul operators.

Since the implementation of TLS reform, the local drayage sector has benefited from improved service consistency, quality and operating standards, productivity and transparency and accountability. The new TLS requirements also reduced the number of local drayage companies and trucks authorized to access the Port. Currently, 98 local trucking companies have been approved for access under the new program.

Under the new long haul component of the TLS program, company licenses will be replaced with Access Agreements between approved companies and Port Metro Vancouver. Each Access Agreement will authorize a trucking company to access Port facilities with a defined number of specific trucks, driven by company drivers, sponsored owner-operators or a combination of the two.

Owner-operators will no longer be required to maintain a TLS Independent Operator Permit, but will now be granted Port access privileges by means of a sponsorship agreement. The jointly signed and executed sponsorship agreement is between the sponsoring company and the owner-operator. Port Metro Vancouver will approve the sponsorship application and related truck. Individual Port Pass identification requirements remain unchanged.

Consultation on the long haul component of the TLS program focused on aspects of TLS reform that are relevant to long haul operators including the definition of a long haul container move, a proposed balanced scorecard, and some specific elements of the long haul Access Agreement. Consultation identified general understanding and support for TLS reform, support for some elements of the long haul definition, and general acceptance with the concept of an Access Agreement. Participants expressed concerns with the "same driver" component of the definition for several reasons, including reasons outside of the operators' control and made suggestions for changes to assist in mitigating these issues. With respect to the balanced scorecard, most participants did not see significant value for themselves but also did not have concerns with Port Metro Vancouver using such a system as long as it was not used to restrict the number of long haul operators accessing the Port. Some participants expressed concerns about the proposed Access Agreement charge, particularly those who visit the Port infrequently.



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The revised schedule for transition to the new long haul component of the TLS program is as follows:

Program Component Date

Consultation October 13 – 27, 2015

Consultation Summary Report November 9, 2015 (targeted)

Application Intake November 30 – December 23, 2015

Application Processing December 29, 2015 – January 30, 2016

New Long Haul TLS in effect February 1, 2016

Balanced Scorecard TBD – future implementation

Key Findings

Participants generally supported some of the underlying concepts of the proposed long haul TLS Policy including:

“Beyond the Lower Mainland” in the long haul definition.

“Specific and undisturbed marine container” in the long haul definition with the suggestion to include

“unless opened by an enforcement official”, or similar phrase.

“Method of remuneration remains unchanged” in the long haul definition.

Low level of interest in balanced scorecard for long haul, but no concerns about it being implemented, provided that it does not require a lot of additional work.

Participants expressed concern about, and in some cases strong opposition to, specific aspects of the program including:

Long haul companies are strongly opposed to “same driver” in the definition due to a number of

factors outside of their control, including:

o Marine container terminal truck gate operating hours o Terminal reservation availability o Changes in earliest receiving dates (ERDs) o Vessel delays o Customs and border delays o Safety concerns and meeting the NSC regulations (i.e. maximum hours of driver service)

Concerns over the Access Agreement charge, specifically for those companies that access the Port infrequently.

Local drayage companies, who were also invited to provide comments via written submissions, expressed concerns about how the long haul changes could affect the local companies and requested that long haul operators be required to meet the same standards identified for local operators.



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Report Organization

Section 1 of this report provides the overview and context for proposed long haul TLS reform and the consultation process, as well as participation levels. Section 2 summarizes the consultation process while Section 3 summarizes key themes of the consultation session and follow up written submissions. Finally, Section 4 outlines proposed next steps to incorporate consultation input, finalize the new long haul TLS Policy and program and advance implementation.



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1. Overview

1.1. About this Report

This report presents the findings of consultation undertaken in October 2015 regarding long haul operators accessing Port Metro Vancouver's container terminals. A total of 16 companies participated through a consultation meeting and email feedback. This represents approximately 53 percent of all long haul operators currently licensed in the Truck Licensing System (TLS) system.

1.2. TLS History

Port Metro Vancouver's TLS reform was designed to enable a number of key outcomes and operating principles established as part of the Smart Fleet Trucking Strategy. These changes are intended to deliver long-term stability to the drayage sector with fewer local drayage trucks and more efficient, financially invested trucking companies.

The local drayage component of Port Metro Vancouver’s new TLS program came into effect in February

2015. This component of the TLS program was developed based on consultation undertaken in spring and fall 2014, which included participation from some long haul operators.

Since the implementation of TLS reform, the local drayage sector has benefited from improved service consistency, quality and operating standards, productivity and transparency and accountability. The new TLS requirements also reduced the number of local drayage companies and trucks authorized to access the Port. Currently, 98 local trucking companies have been approved for access under the new program.

Under the new long haul component of the TLS program, company licenses will be replaced with Access Agreements between approved companies and Port Metro Vancouver. Each Access Agreement will authorize a trucking company to access Port facilities with a defined number of specific trucks, driven by company drivers, sponsored owner-operators or a combination of the two.

Owner-operators will no longer be required to maintain a TLS Independent Operator Permit, but will now be granted Port access privileges by means of a sponsorship agreement. The jointly signed and executed sponsorship agreement is between the sponsoring company and the owner-operator. Port Metro Vancouver will approve the sponsorship application and related truck. Individual Port Pass identification requirements remain unchanged.

Consultation on the long haul component of the TLS program focused on aspects of TLS reform that are relevant to long haul operators including the definition of a long haul container move, a proposed balanced scorecard, and some specific elements of the long haul Access Agreement. Consultation identified general understanding and support for TLS reform, support for some elements of the long haul definition, and general acceptance with the concept of an Access Agreement. Participants expressed concerns with the "same driver" component of the definition for several reasons, including reasons outside of the operators' control and made suggestions for changes to assist in mitigating these issues. With respect to the balanced scorecard, most participants did not see significant value for themselves but also did not have concerns with Port Metro Vancouver using such a system as long as it was not used to restrict the number of long haul operators accessing the Port. Some participants expressed concerns about the proposed Access Agreement charge, particularly those who visit the Port infrequently.



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2. Consultation Process

2.1. Overview

Port Metro Vancouver adopted a consultation program to seek stakeholder input in support of developing the long haul component of the new TLS program. The consultation process in October 2015 included seeking feedback on the proposed long haul TLS framework to finalize the details needed to transition to the new contractual Access Agreement.

Consultation activities and materials included:

Discussion guide Stakeholder meeting and webinar Email submissions

Copies of the supporting consultation materials including the presentation deck and discussion guide are available in Appendix A.

2.2. Notification

Stakeholders were notified of engagement opportunities by a combination of personal invitations and public postings. These included:

October 13, 2015 - Notice of launch of the upcoming consultation sent by email to the TLS local carriers and stakeholders.

October 13, 2015 - Invitations to TLS approved long haul carriers for stakeholder meetings, sent by email.

October 16, 2015 - Information regarding long haul consultation posted to Port Metro Vancouver’s

website (www.portmetrovancouver.com/truck-rail/truck). October 16, 2016 - Reminder notice sent by email to the long haul TLS database to RSVP.

2.3. Stakeholder Meeting

Port Metro Vancouver hosted one consultation meeting with the identified key stakeholder groups as detailed in the table below. The meeting included a local TLS update by Port Metro Vancouver staff, followed by a facilitated discussion during which the two key components of the long haul TLS reform were discussed. These include the long haul definition and long haul balanced scorecard. Participants were invited to provide feedback throughout the meeting and submit additional written comments through email.



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Stakeholder Meeting Date Participation

Long haul trucking companies (in person) October 21 10 companies, 16 participants

Long haul trucking companies (webinar) October 21 6 companies

BC Trucking Association October 21 1 participant

3. Summary of Input

3.1. Key Themes of Input

Key themes of input about the proposed long haul TLS reform are summarized in the table below. These represent overarching themes of input received.

The meeting notes during the stakeholder meeting are attached in Appendix B.

CONSULTATION THEME INPUT SUMMARY

Long haul definition: “Beyond

the Lower Mainland”

Support this part of the definition.

Long haul definition: “Specific

and undisturbed marine

container”

Strong agreement by everyone, with suggestion to adjust definition

to include “unless opened by enforcement official”, or similar phrase.

Long haul definition: “Same

driver”

Concern about the operational implications of “same driver” costs as

some containers may sit for two days. Issues include:

o Limited opportunities for access to marine container terminals with flat racks and over dimension (OD) cargo,

o Marine container terminal truck gate operating hours, o Arrival of reefers, flat racks and OD outside of terminal truck

gate hours.

Suggestion that the definition be modified to allow for using a highway driver and local driver pick-up/ drop-off, as long as all are drivers for the same company.

Flat racks Suggestion that flat racks be exempted from the BC Container Trucking Act.

Request to modify definition as “standard marine container”.



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Reservations Questions about why reservations are required for long haul (did not used to be required).

Suggestion that long haul carriers be exempt from the reservation requirement at marine terminals.

Unpredictability at the border crossings causing delays is an issue.

Long haul definition: “Method

of remuneration remains

unchanged”

Low level of concern, but some suggestion that if all drivers are employees, it should not matter.

Balanced scorecard performance standards

Low level of interest in balanced scorecard for long haul, but no concerns about it being implemented, provided that it does not require a lot of additional work for the companies.

Most considered this a non-issue for long haul; however, some questioned its need if it is not being used to select a maximum number of long haul carriers and concern that in the future it may be used to restrict the number of authorized long haul carriers.

General consensus that long haul companies are very different so comparisons would not be as applicable as for local companies.

Port Metro Vancouver will re-address once the balanced scorecard is issued for the local carriers.

Access agreement charges General agreement that the charge is too high for long haul, given that most long haul carriers visit the Port infrequently (perception that the rate is unfairly high and not based on cost recovery).

Many companies would prefer per diem charges to access Port (long haul does not access the Port as often as local carriers).

3.2. Summary of Written Feedback

During the consultation period, Port Metro Vancouver received 11 written submissions, which are included in Appendix C and summarized here:


Long haul definition: “Beyond

the Lower Mainland”

Support for this part of the definition.

Long haul definition: “Specific

and undisturbed marine

container”

Support for this part of the definition, subject to inspection by authorities.



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Long haul definition: “Same

driver”

Low support for this part of the definition due to:

Marine container terminal truck gate operating hours and subsequent closures (i.e. Saturday, Sunday, holidays) - a different driver is required to deliver the container to the terminals once open.

National Safety Code (NSC) Regulations – hours of service/ driving

hours, a driver cannot drive from Alberta to Vancouver and legally spend another 3-4 hours delivering a container to the Port.

Vessel Delays – often results in containers requiring storage in a

local yard for a few days before being delivered to the terminal. Changes in earliest receiving dates (ERDs) may cause a long haul

container to be stored in the Lower Mainland. The same driver cannot be expected to wait to transport a container from the Lower Mainland location to its final destination when the ERD is changed by one or more days. This would reduce the driver's productivity, may interfere with hours of service compliance and, in the case of an owner-operator, could result in reduced compensation and for the driver to be away from home for longer than necessary.

May face unforeseen delays caused by such things as weather, customs inspections, congestion at border crossings, road closures, or inability to obtain convenient terminal truck gate reservations. Driver hours of service regulations may then prohibit the driver from transporting the container to a marine container terminal or operational circumstances may require the driver to leave the Lower Mainland prior to final delivery of the container to a marine container terminal.

Equipment breakdowns or problems involving the original driver, such as a medical emergency, may result in a different driver and tractor having to transport the container part-way from its origin.

Team drivers are commonly used in long haul operations. Therefore, the "same driver" will not be able to complete the entire trip since the intent of team drivers is to allow for uninterrupted travel by allowing both drivers to operate the vehicle.

Reduced travel time buffer to account for weather and road closures and delays.

Suggestion of 24 hour access to the Port; this could alleviate some of the issues with drivers being able to complete the last leg of the trip.

Difficult for larger fleets with diverse services to be able to logistically plan the entire container movement around the same driver.

Sites (e.g., mining sites, LNG constructions sites, etc.) provide access based on safety orientation or security screening and it is not possible to have every driver certified with every site access in



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Canada or the US; even if the same driver hauled the containerfrom Vancouver to its destination city, there a significant chance a local driver would have to complete the final leg into the customer site.

Cost concern with hiring a third party to deliver loads and impact ability to meet the customer delivery expectations.

Flat racks Draft definition of a long haul move does not fully take into account all the special considerations that impact the long haul industry and more specifically flat deck and over dimension cargo moves.

Special considerations for appointments and scheduling for flat racks and all OD shipments. This would include being able to deliver within the Lower Mainland to be transferred or reduced to meet compliance with CVSE/ NSC regulations.

Reservations Difficult to book a reservation that coincides with arrival in the Lower Mainland.

Booking an appointment three to five days in advance for a one hour window is unrealistic for the same driver to complete.

Prior to TLS reform, marine terminals provided Highway Bypass protocols to assist carriers due to the uncertainty of achieving time specific appointments. The Bypass protocol worked efficiently for

all parties. Request for long haul bypasses for actual long haul truckers, (e.g.

trucks operating in Alberta, Saskatchewan and Manitoba) which should be considered true long haul, not just as far as Chilliwack or Hope. Suggestion of a $50 charge.

"Same driver" effects could be partially addressed by eliminating the reservation requirement for long haul containers given that the wait time penalties were only intended to be paid to drivers of locally licensed companies. If the threat of wait time penalties for terminal operators does not apply in these circumstances, terminals may be more willing to accept long haul containers without reservations.

Long haul definition: “Method

of remuneration remains

unchanged”

Few long distance carriers compensate drivers with the same method of remuneration for the whole trip, including time spent waiting, loading or unloading at a marine container terminal. A common model for these drivers would be paid hourly for time spent waiting, loading or unloading at a marine container terminal, and per km/mi for distance during driving time.



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Access agreement charges, licensing fees, damage deposit

The proposed annual agreement cost is excessive in comparison to other ports in North America.

Suggest a $100/150 entry fee charged per load. Per truck access agreement charge is too high for those accessing

the Port once or twice per week. Request for clarification on the damage deposit amount. The damage deposit for a trucking company should be determined

based on their safety record at the Port.

If the definition includes using “same driver” for the entire trip, then

the cost structure is extremely high. Under this “same driver” definition a long haul truck will access the Port one to two times per week compared to 20 to 30 times for a local truck. Suggest significant reduction of fee due to the infrequent access to Port property compared to a local truck.

Damage deposits should not be required since Port Metro Vancouver has other means to secure payment if and when necessary.

Licenses Suggestion that Port Metro Vancouver not try to manage supply of the long haul container trucking sector through limiting the granting of licenses or related truck tags. Licenses should be issued to any long haul company that meets the license requirements.

Licenses should not be required for trucking companies transporting out-of-gauge, flat rack or any other non-standard container that requires specialized equipment either for loading or unloading or face restricted hours at marine container terminals.



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Other definition suggestions Long haul is: the direct transport of a laden or empty marine container directly between the Port of Vancouver to a point beyond the Lower Mainland or vice versa. The Lower Mainland is defined to be the area, which extends from Horseshoe Bay BC, South to the Canada/ US border and East to the boundary of Hope BC. The point of origin of an Export and the final point of destination of an Import laden marine container determine the definition of Long Haul for TLS purposes. Long Haul containers must be moved undisturbed in the original container, using a driver whose method of remuneration remains unchanged throughout the entire trip and excludes any movement of a container which is subject to the Container Trucking Act, SBC 2014, chapter 28.

A long haul company is one whose moves involve the transportation of marine containers whose contents remain sealed and undisturbed except by officials who are authorized to examine their contents) from a marine container terminal to a point beyond the Lower Mainland or vice-versa. To the extent that these moves are not direct is due to circumstances outside the control of the long haul company. Drivers involved in the transportation of these containers are all employees or owner-operators of the company.



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3.2.1. Written input from Local drayage companies


General Changing the current long haul system may have unintended effects on local drayage companies.

Presently approved FSO Licensees that perform local TLS that also operate in the long haul sector should not be required to pre-qualify in the initial application process. Reference to their current operating approvals and entry requirements including safety and environmental standards has already been met as per their approval as an FSO licensee for local.

Concern over accurately monitoring highway traffic, which opens the door to cheating and rate cutting.

Companies seeking TLS long haul access should be required to meet the standards that were identified for local as well as provide a business case that supports the application for long haul access.

Individual sponsorship agreements jointly signed by the sponsoring company and the owner-operator must apply to long haul as it does for local.

Suggestion that Port Passes are required for all long haul approved applicant drivers.

Suggestion to add tags to the current fleets to help prevent unrest amongst the already underworked truckers.

Concern with issuing new TLS licenses, as there are already too many licenses and trucks presently in the system.

Bypass Concern about rate cutting when a non-TLS trucking company is given a bypass to pick up oversized loads, with no expenses or a reservation fee.

GPS Addition of GPS to gather data on how many times a month each long haul truck accesses the Port and the turn times being experienced. This is important data because a long haul driver has limitations on hours of service and if wait times are excessive additional costs are incurred for lost truck/driver productivity etc. These times would be valuable to determine if Access Agreements should be looked into.



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Licensing fees, damage deposit Concern over high licensing fees, which could lead to an unfair competitive pricing advantage to long haul carriers between shorter distant locations that are able to haul multiple containers per week.

Damage Deposit should be the same as local, $10,000 for all. There is no rational for the damage deposit to be less for long haul. If a carrier is already operating as an approved local FSO, the damage deposit already on file should cover both the local and long haul deposit respectively. The FSO should not have to pay an additional Damage Deposit if one is already on deposit with Port Metro Vancouver.

Truck age transitions 10-year truck age transition standards that were applied for local should be used for long haul. Equal standards must apply.

4. Next Steps

The new long haul TLS Policy is scheduled to take effect on February 1, 2016, and will coincide with expiry of existing long haul TLS licenses and permits across the current drayage fleet. With this in mind, Port Metro Vancouver has been actively reviewing interim results from this consultation to assist in making timely changes to the new long haul TLS Policy. These changes will be documented in Port

Metro Vancouver’s Input Consideration Memo, which will respond to the input received, and is

scheduled for release the week of November 16, 2015.

Port Metro Vancouver will also release a long haul TLS Handbook that will provide interested applicants with the program information and application forms to submit a complete application package for consideration. This handbook will be sent to existing long haul TLS-licensed trucking companies the week of November 30, 2015. Port Metro Vancouver will then begin reviewing applications to ensure application packages are fully compliant.



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Consultation Materials

The discussion guide and the presentation from the consultation are included.



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PORT METRO VANCOUVER

TRUCK LICENSING SYSTEMLong Haul Trucking Consultation: October 2015

Participant Discussion Guide

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Prepared by:

Lucent Quay Consulting Inc.

Suite 430 - 688 West Hastings Street Vancouver, BC V6B 1P1

TRANSITION

What is Smart Fleet? Port Metro Vancouver’s Smart Fleet Strategy is designed to deliver a long-term sustainable drayage sector, and contribute to our vibrant local economy and a healthy environment. Smart Fleet includes four key initiatives:

• GPS tracking on all Lower Mainland domiciled port-approved trucks to generate better information

• Common data interface and a single point of entry and reservation system connecting trucking companies to all container terminal operations

• Drayage Model to support decision-making for planning and new initiatives

• New Truck Licensing System (TLS) to improve stability by working with a drayage sector that can meet financial and operational obligations. TLS also includes environmental and pending truck age requirements to lower air emissions and increase community confidence, safety, dependability and industry stability

Port Metro Vancouver is Canada’s largest and busiest port, a dynamic gateway for domestic and international trade and tourism, and a major economic force that strengthens the Canadian economy. Port Metro Vancouver’s overall vision is to lead the growth of Canada’s Pacific Gateway in a manner that enhances the well-being of Canadians and inspires national pride. Our mission is to be recognized as a world-class gateway by efficiently and sustainably connecting Canada with the global economy, inspiring support from our customers and from communities locally and across the nation. A key goal in support of our vision and mission is to be a world leader in supply chain competitiveness and sustainability. Port Metro Vancouver’s Smart Fleet Strategy supports this goal.

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About This ConsultationPort Metro Vancouver seeks input from long haul trucking companies to assist in developing new TLS opportunities and requirements for this sector of the drayage business. This process builds on consultations in 2014 to help develop the local drayage component of the TLS program, which included participation from some long haul operators.

Our goal is to develop the long haul component of the TLS program that recognizes the unique nature of long haul operations, while generally being consistent with the local drayage component of the TLS program that came into effect February 2015.

This consultation focuses on input from long haul operators; however, input received from other groups will be considered. The consultation process includes:

· Facilitated meetings, by invitation, with long haul trucking company representatives

· Notification to key trucking sector stakeholders and local TLS carriers from whom email submissions will be accepted

Consultation closes on October 27, 2015.

Introduction to TLS ReformThe local drayage component of Port Metro Vancouver’s new TLS program came into effect in February 2015. The local drayage component of the TLS program was developed based on consultation undertaken in the spring and fall 2014, which included participation from some long haul operators.

TLS reform enabled a number of key outcomes and operating principles established by Port Metro Vancouver for our Smart Fleet Strategy. These changes are intended to deliver long-term stability to the drayage sector with fewer local drayage trucks and more efficient, financially invested trucking companies. Since the implementation of TLS reform, the local drayage sector has benefitted from improved service consistency, improved quality and operating standards, improved productivity and improved transparency and accountability. The new TLS requirements also reduced the number of local drayage companies and trucks authorized to access the port. Currently, 98 local trucking companies have been approved for access under the new program.

Under the new long haul component of the TLS program, company licences will be replaced with Access Agreements between companies and Port Metro Vancouver. Each Access Agreement will authorize a trucking company to access port facilities with a defined number of specific trucks, driven by company drivers, sponsored owner operators or a combination of the two.

Owner operators will no longer be required to maintain a TLS Independent Operator Permit, but rather will now be granted Port access privileges by means of a sponsorship agreement, jointly signed and executed by the sponsoring company and the owner operator and approved by Port Metro Vancouver. Individual Port Pass requirements remain unchanged.

Progress UpdateTransition to the new TLS program for local drayage carriers began in December 2014. Applications for the new TLS were fully reviewed and Access Agreements were in place with 67 companies when the new TLS took effect on February 1, 2015. By provincial legislation, a new B.C. Container Trucking Commissioner’s office was also established to oversee rate enforcement and matters related to truck licensing for local drayage.

It was anticipated that the local component of TLS reform would be complete by early spring 2015. However, following a judicial review, an additional 31 companies entered into Access Agreements with Port Metro Vancouver after February 1, 2015. As a result, consultation regarding the long haul component of TLS reform was delayed and in July 2015, Port Metro Vancouver extended all existing long haul licences and permits that were set to expire at the end of July 2015.

The revised schedule for transition to the new long haul component of the TLS program is as follows:

Following consultation, Port Metro Vancouver will finalize the new eligibility requirements referred to in this Discussion Guide and commence the application process for the new long haul component of TLS. Applications will initially be open only to the long haul companies with currently approved TLS Licences. Port Metro Vancouver intends to invite new long haul carriers to apply after completing the application, review and related transition process for those of the initial companies that are successful. 2

Consultation October 13 - 27, 2015

Consultation Summary Report November 9, 2015

Application Intake November 30 – December 23, 2015

Application Processing December 29 – January 30, 2016

New Long Haul TLS in effect February 1, 2016

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Proposed TLS Reform Framework – Key ComponentsThe following section outlines the new TLS framework. In this phase of consultation, we are seeking feedback on the framework outlined below, and input on some remaining TLS reform long haul components to help finalize the details needed to transition to the new long haul Access Agreement.

· Definition of Long Haul

o The Long Haul Access Agreement will allow the holder to access Port lands only for the purpose of long haul container moves. The Access Agreement will also require holders to comply with all Statutes and Regulations, including the B.C. Container Trucking Act (the “Container Trucking Act”), which prohibits prescribed local container movements without a licence granted by the B.C. Container Trucking Commissioner’s office in addition to holding a Port Metro Vancouver local Access Agreement.

o An accurate and clear definition of long haul moves will facilitate an understanding of what moves are permitted and prohibited under the Access Agreement for all trucking companies.

· Access Agreement Charge

o The charge is calculated based on cost-recovery for operations and administration that encompasses the TLS program, port accessand a limited audit process to ensure compliance with the Access Agreement’s prohibition against undertaking local moves.

o The minimum Access Agreement charge per year is $6,450. This charge applies to companies applying for approval of three to five trucks. For every additional truck added to the fleet above five trucks, the charge will increase by $1,290 per truck.

o The charge is similar to that established for local drayage. However, costs related to GPS tracking and provincial licensing costs, which are not applicable to long haul, have been removed. Specifically, proposed long haul charges include:

· Entry Standards

o Consistent with current practice, a minimum of three trucks per long haul company is required to qualify for application. These trucks can be made up of company trucks, sponsored owner operator trucks or a combination of the two. Companies claiming less than 3 trucks under their expiring TLS licence may increase their fleet by adding new trucks to meet the current minimum of three.

o Acceptance of applications will be based on minimum entrance requirements including safety and environmental standards, TLS record, and acceptance of Access Agreement terms.

Item Approximate % of Total Program Costs

Port Operations 71%

Efficiency Improvement Initiatives* 10%

Ongoing System Maintenance and Support 5%

Land Lease Opportunities 14%

*Averaged over five-year period

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The draft definition of a long haul move is:

The direct transportation from a Marine Container Terminal to a point beyond the Lower Mainland or vice versa, of a specific marine container and its undisturbed, originally sealed content, using the same driver whose method of remuneration remains unchanged throughout the entire trip, and excludes any movement of a container which is subject to the Container Trucking Act, SBC 2014, chapter 28.

We are specifically seeking feedback on this definition.

· Maximum Truck-Model Age

o In addition to Port Metro Vancouver’s environmental requirements, Port Metro Vancouver also introduced a new truck-model age requirement for local TLS trucks. The same maximum truck age requirement will apply to long haul trucks. The new 10-year truck age requirement will become effective January 1, 2022.

o The new truck age requirement supports a professional, reliable and stable drayage sector along with our long-standing goal to be a gateway recognized for its economically, environmentally and socially responsible operations.

o Existing Port Metro Vancouver environmental requirements (implemented in 2008) continue to apply and take precedence until the maximum 10 years truck age requirement is in full effect in 2022.

· Damage Deposits

o Agreement holders will be required to provide and maintain a refundable Damage Deposit ranging from $2,100 up to a maximum of $10,000 depending on fleet size, as a means of providing a minimum benchmark of fair and reliable cost recovery amounts for both tangible and intangible losses incurred by Port Metro Vancouver, such as replacement and repair costs for damages to Port property and staffing costs related to delays caused by incomplete or missing paperwork.

o This deposit must be replenished in the event it is drawn upon.

o In the future, when applying for a new Access Agreement, the amount may be negotiable, depending on the company’s TLS compliance record.

· A Drayage Balanced Scorecard

o A balanced scorecard approach will be used to evaluate companies for the purpose of negotiating and/or entering into future Access Agreements.

o At this time Port Metro Vancouver does not anticipate using the Balanced Scorecard to limit the number of long haul trucks accessing the port.

o Companies will have access to their own Balanced Scorecard and to aggregate sector-wide information but not to other companies’ information.

We are specifically seeking feedback on potential Balanced Scorecard metrics. A sample developed for local drayage will be displayed during consultation.

· Owner Operators Sponsorship

o Owner operators will no longer be required to have individual Port Metro Vancouver issued TLS permits. However, consistent with current practice, they will still require “sponsorship” by a trucking company with an Access Agreement.

o The sponsoring trucking company and the owner operator will be required to co-sign a Joint Sponsorship Agreement which, upon approval by Port Metro Vancouver, will grant the sponsored owner operator access to port lands.

o An approved trucking company can use either employee-driven company trucks, sponsored owner operator trucks, or a combination of the two.

o Truck owners (sponsored owner operators and Access Agreement holders) will no longer have to pay a separate, Approved Truck Fee.

o Trucks newly added under all Access Agreements are required to have their VINs validated upon first access to the Port and a TLS new master decal applied to the windshield of the truck

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For Discussion and InputWhile many aspects of the TLS Reform are complete, some elements are still being considered, as discussed in each module below.

1. Long Haul Definition

For the purposes of authorized access to Port Metro Vancouver’s marine container terminals, Long Haul will be defined in the Access Agreement as:

The direct transportation from a marine container terminal to a point beyond the Lower Mainland or vice versa, of a specific marine container and its undisturbed, originally sealed content, using the same driver whose method of remuneration remains unchanged throughout the entire trip, and excludes any movement of a container which is subject to the Container Trucking Act, SBC 2014, Chapter 28.

This definition includes several important terms:

o Beyond the Lower Mainland – this term reflects moves beyond the scope of the Container Trucking Act and regulations.

o Specific and Undisturbed marine container – these terms are used to distinguish container moves that have a direct, long haul destination from moves destined for local sites or off-dock and repackaging facilities, which are subject to the Container Trucking Act.

o Same Driver – to make it clear that moves using a local driver for the final ‘leg’ become subject to the Container Trucking Act and not approved under the long haul Access Agreement.

o Method of Remuneration – the method of remuneration can be hourly, by the kilometer, or other, but must apply throughout the trip, as a shift in the method of remuneration indicates a ‘break’ in the trip, rendering the final leg a ‘local’ move subject to the Container Trucking Act.

Inclusion of the definition is designed to bring greater clarity and consistency for drivers and trucking companies currently licensed as Long Haul operators, and potential future long haul carriers.

2. Balanced Scorecard

The following are the performance standards currently being considered:

o Compliance history

o Average age of fleet

o Safety compliance (NSC standing, WCB or equivalent, etc.)

o Operational performance metrics (feedback on Balanced Scorecard)

A similar Balanced Scorecard has been developed for local drayage TLS participants to provide an understanding of how performance standards will be tracked and reported. An example Balanced Scorecard for local drayage will be displayed during consultation.

Please consider and comment on each of the four elements of the long haul definition identified above

Please consider what performance elements are most important to you as well as any comments or questions you have about the list of proposed elements above.

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For Information and Feedback

1. Truck Age Transition

o In February 2015, Port Metro Vancouver introduced new maximum truck age requirements. A ten year rolling truck age requirement was established in support of Port Metro Vancouver’s focus on long-term safety, social and environmental sustainability, and industry stability through continued investment. This will ensure that by 2022, all trucks in the TLS system meet the rolling 10-year old truck model age requirement.

2. Entry Standards

To help improve safety, quality and operating standards for a reliable and professional drayage sector, the TLS Reform includes clearly defined entry and performance standards. These standards include a requirement for a minimum of three trucks per trucking company to qualify for application review, proven ability to meet the Access Agreement terms, and the company must meet or exceed safety and Port Metro Vancouver’s environmental requirements.

Trucking companies will also be evaluated based on their past TLS record. To measure and track performance standards, the Balanced Scorecard will be applied. Strategies to support entry and performance standards include:

o For the purposes of TLS reform, only existing, currently approved TLS long haul licence holders in good standing in good standing may apply at this time.

o Compliance with Access Agreement terms (e.g. contract charges, insurance requirements, damage deposit, etc.)

o Existing Port Metro Vancouver environmental standards

o National Safety Code (NSC) compliance and safety standards

3. Minimum Number of TrucksPort Metro Vancouver proposes to keep the current minimum of three trucks. Long Haul companies currently licenced with fewer than three trucks in TLS may increase their fleet by adding new trucks that meet the current minimum truck requirements at the time of application.

Please provide your comments, if any, on the entry standards.

Please provide your comments, if any, on the minimum number of trucks.

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4. Damage Deposit/Pre-Estimate of Liquidated DamagesThe Damage Deposit is intended to be a means of providing a minimum benchmark of fair and reliable cost recovery amounts for both tangible and intangible losses incurred by Port Metro Vancouver, such as replacement and repair costs for damages to Port property and staffing costs related to delays caused by incomplete or missing paperwork.

· Examples of such damages are:

o Gate Arm or Rail Control damage

o Tow truck rental for a container truck

o Crane truck to remove container from chassis

o Security personnel in the event that a truck requires security of flagging and traffic management (e.g. broken down truck)

o Delays at the entry gates

Alternative arrangements may be considered during future access agreement negotiations, based on a company’s performance (i.e. if a company has no or a small number of infractions, the damage deposit could be lower, while if a company has had several infractions, it could be higher).

Thank you for your input. Please submit comments on or before October 27, 2015.

For more information or to provide feedback, please contact:

w: portmetrovancouver.com/truck

e: [email protected]

Please provide your comments, if any, on the proposed damage deposit.

portmetrovancouver.com

October 2015

Long Haul Truck Licensing System (TLS) Consultation

• Welcome and introductions 10 mins• Agenda and discussion process 5 mins• Update on local TLS 10 mins• Long haul definition 30 mins• Balanced Scorecard 15 mins• Feedback items 10 mins• Next steps and closing remarks 10 mins

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Agenda

Local TLS update

Long haul definition


• Is this part of the definition clear to you?

• Does the definition reflect your company’s current status/practice?

• How do you think this part of the definition will affect the long haul industry, if at all?

• Other questions or comments?

Long haul definition discussion topics:

55


The direct transportation from a Marine Container Terminal to a point beyond the Lower Mainland or vice versa, of a specific marine container and its undisturbed, originally sealed content, using the same driver whose method of remuneration remains unchanged throughout the entire trip, and excludes any movement of a container which is subject to the Container Trucking Act, SBC 2014, chapter 28.


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Questions:• Is this part of the

definition clear to you?

• Does the definition reflect your company’s current status?




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“Beyond the Lower Mainland”

This term reflects moves beyond the scope of the Container Trucking Act and regulations.




• Does the definition reflect your company’s current practice?




“Specific and undisturbed marine container”These terms are used to distinguish container moves that have a direct, long haul destination from moves destined for local sites or off-dock and repacking facilities, which are subject to the Container Trucking Act.

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“Same driver”

To make it clear that moves using a different driver for the final ‘leg’ become subject to the Container Trucking Act and not approved under the long haul Access Agreement.

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“Method of Remuneration Remains Unchanged”

The method of remuneration can be hourly, by the kilometer, or other, but must apply through the entire trip, as a shift in the method of remuneration indicates a ‘break’ in the trip, rendering the final leg a ‘local’ move subject to the Container Trucking Act.

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Long haul balanced scorecard


Operations Metrics:• Drayage Trips per day• Trip Productivity• Double-Ended Moves

Stewardship Metrics:• Truck Age• ICBC Metrics (or equivalent)• WorkSafeBC Metrics (or equivalent)• NSC Rating

Management Metrics:• Administrative Sanctions (Access

Agreement Compliance)• Liquidated Damages

Balanced scorecard example

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Questions:• Which performance metrics would be most useful for you?

• Which performance metrics, if any, would be problematic for you? Why?

• Are there other metrics you would like to see included?

• Should performance be compared to the overall Long Haul fleet average or something else?

Balanced scorecard discussion

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For information and feedback


• Truck Age Transition (any clarification needed?)

• Entry Standards (questions/comments):

• Signed Access Agreement

• Truck Age Compliance

• Minimum Number of Trucks (same as today)

• Owner-Operator Agreement

• Damage Deposit, including proposed elements

• Access Agreement Charge


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Number of Trucks

Annual Access AgreementCharge

Required Damage Deposit (Up to a max of $10,000)

Minimum Insurance Coverage

Commercial General Liability

Automobile Liability

Cargo Insurance

3 to 5 trucks $6,450 $3,500 $5,000,000 $5,000,000 $100,000

6 or more trucks

$6,450 +

$1,290 x # addl trucks

$3,500 +

$225 x # addl trucks

$5,000,000 $5,000,000 $100,000

Access Agreement Charges, Damage Deposit & Insurance

• Consultation October 13 – 27, 2015

• Consultation Summary Report November 9, 2015

• Application Intake November 30 – December 23, 2015

• Application Processing December 29 – January 30, 2016

• New Long Haul TLS in effect February 1, 2016

• Draft Balanced Scorecard TBD – future implementation

Next steps

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Thank you!

For more information or to provide feedback, please contact:

portmetrovancouver.com/truck

[email protected]

Consultation ends at 5 p.m. on Oct 27

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Meeting Notes

Meeting notes from the consultation are included.



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Lucent Quay Consulting Inc. Port Metro Vancouver

Long Haul Truck Licensing System Meeting Notes

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Port Metro Vancouver Long Haul Truck Licensing System Consultation

Long Haul TLS Meeting Notes

Date Wednesday October 21, 2015

Time 1:00 p.m. to 3:30 p.m.

Location Port Metro Vancouver boardroom

Facilitator Pam Ryan, Lucent Quay Consulting

Attendees (in person)

Jeff Arnold, Arnold Bros TransportLouise Yako, British Columbia Trucking Association Bob Herbert, Bulk Solutions Boyd Rupp, Bulk Solutions Troy Plett, City Tractor Trevor Plett, City Tractor Reg Plett, City Tractor John Anweiler, Ihaul Freight David Lush, International Machine Transport Bill Inglis, Marnor Holdings/MHL Transport Brett Morley, Marnor Holdings/MHL Transport Sunny Johal, Paradise Freightways Ltd Jimmy Brar, Robby & Jimmy Holdings (R&J Holdings) Sarbjit Gill, Robby & Jimmy Holdings (R&J Holdings) John Battagliola, Superior International Freight Forwarding Keith Gill, Vansea Transport Saran Bal, Vansea Transport Greg Rogge, Port Metro Vancouver Mandy Chan, Port Metro Vancouver Dale Thulin, Port Metro Vancouver Amanda Pang, Lucent Quay Consulting

Attendees (by webinar)

Ranvir Nijjar, Ancor TransportMartin Brown, City Transfer Ryan Burden, Hy-line Express Peter Ouimet, LBS log Bundling Supplies Chris Funk, Pacific Coast Dist. David Fehr, T-Lane

The following notes provide a summary of the facilitated discussion held during the above-noted workshop, as recorded by Lucent Quay. They are intended to capture the nature of the discussion and specific suggestions of the consultation participants. They are not verbatim. Questions or concerns about any of this information should be directed to the TLS Administrator at [email protected].



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Local TLS Consultation Update

Questions/Comments Response

Why is the consultation period so short? The consultation period is two weeks, which is consistent with past consultations for local TLS; however, in past consultations, the meetings were held early in the process whereas for this consultation, participants were provided with copies of the discussion guide for review in advance. Two participants noted that they had also participated in the local TLS consultation.

Consultation closes on October 27.

When asked, meeting participants indicated this is enough time.

What is the rationale for changing long haul

licensing requirements? We weren’t involved in the disruptions.

Port Metro Vancouver is committed to a long haul reform. Some companies were unsuccessful in the local TLS and wanted to apply for long haul but there was a moratorium.

Local drayage is now provincially (as well as federally) regulated. Port Metro Vancouver needed to ensure its long haul program did not conflict with new provincial regulations.

There is a need for consistency to ensure fair and reasonable access to the terminals, while recognizing that local and long haul serve different markets.

Ensuring that there is a good process in place now will provide clarity and opportunities for new entrants to long haul TLS.

Definition of Long Haul

Port Metro Vancouver’s Director of Land Operations, Greg Rogge provided a brief overview of TLS

reform and how the long haul definition and proposed access agreement requirements were developed. Key highlights are:

Establish a clear distinction from local. Port Metro Vancouver developed the draft language with consideration of the B.C. Container Act

and the Port’s understanding of the long haul sector.

Port Metro Vancouver reviewed the draft definition with the Province and Commissioner’s Office.



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General Questions


Will we have to make appointments? Need bypass consistency.

Port Metro Vancouver is working on this with the terminals to discuss opportunities for appointment bypass for long haul operators.

Reservations are required now because all trucks are

considered for the purposes of evaluating terminals’ on-time performance.

Are there any exceptions, such as highly sensitive, valuable freight, of which about 80% is outside the Lower Mainland (i.e. 14 foot flat racks)?

The B.C. Container Trucking Act does not distinguish by content or value of freight. It applies to all local

moves in a defined “marine container”.

A local access agreement allows both short and long haul moves. Port Metro Vancouver is also willing to

discuss with the Commissioner’s office, the

possibility of allowing long haul operators that currently ship flat racks to apply for a local license.

Beyond the Lower Mainland


What are the Lower Mainland boundaries? They are as defined in the BC Container Trucking Act and extend to the City of Chilliwack in the east, the District of West Vancouver in the north, and the Canada/US border in the south.

Specific and undisturbed marine container


Suggest adding: “unless by enforcement

official”.

Port Metro Vancouver agrees that this is an important clarification, which was intended within the draft definition and could easily be added.

Should “single mode” be considered?



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Same driver

The “same driver” requirement was of concern to almost all participants. Several potential situations were

raised and discussed:


Change in Earliest Receiving Date (ERD): containers will sometimes sit for two days or more.

For efficiency related to terminal requirements, some long haul companies use a combination of highway drivers and local pick up/ drop off drivers.

Comment that if combined with a need for reservations, a same driver requirement may result in unsafe practices and will limit work for local drivers.

The BC Container Trucking Act is clear that all local moves by TLS holders fall under the rate regulations of the Act and require a BC Licence. Our proposed definition is designed to ensure that long haul operators are not in contravention of the Act.

Port Metro Vancouver recognizes that the recent reservation requirement for long haul has caused challenges (a 37 minute turnaround at pre-gate could realistically be two hours on site) and is working with local terminals to explore other options.

Flat racks and over dimensional always take longer in the terminal (whether in or out). They are non-standard and should not be considered containers.

Port Metro Vancouver will raise this suggestion with

the Commissioner’s office and seek clarification.

Delays outside of the driver’s control:

Cross-border line ups/delays

Arrival on when ports are not open

Reefer trucks on weekends

These are all good points for further consideration.

Why is same rate important? If whole trip

is paid by the mile and companies didn’t offer additional pay on top, no one would work.

Paying a different rate for the local portion of a move would be an indication that that portion is actually a separate, local move, Port Metro Vancouver will consider changes to the wording to the definition to ensure that offering additional pay not associated with local transportation is at the discretion of individual companies.



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Other Questions/ Comments


Why are reservations required? Reservations are used partly for planning of staffing at the terminals and partly to demonstrate terminal operator on-time performance.

Long haul has greater insurance regulations than local operators, and could potentially be used to define long haul (i.e. additional fees for specialized equipment).

We all use our own drivers (no one else)

so they shouldn’t fall within the scope of

the BC Container Act.

The BC Container Trucking Act applies to both employees and owner operators undertaking local moves.

Balanced Scorecard

Most believe this is more important for local TLS. No participants indicated any issues with the Balanced Scorecard but most indicated it had no relevance for long haul and they would not be interested in comparing themselves against the industry standard because long haul operators are not a homogeneous group.

Port Metro Vancouver indicated that a draft balanced scorecard template for local operators is in development. If anything is done for long haul, will be 6-12 months down the road.

No participants provided suggestions for additional measures.

General Question and Answers


Do Owner-Operators count as minimum number of trucks?

Yes

Is the intent to assign truck tags? Will need an Access Agreement from the Port.

Allocation of tags will be a combination of company and Owner-Operator; can allocate as many as required (no concern about number).

Will implement for current players first, then will open up to all.

Is there no desire to cap number of licenses or trucks?

Correct. Port Metro Vancouver may reconsider this later if many more companies become interested.

This is a decision that would only be taken with consultation, after examining trends and any dramatic changes.



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Could the minimum number of trucks come down to one, instead of three?

The minimum for local TLS is five. Port Metro Vancouver proposes three because this is the average number of trucks in a long haul company today.

The goal is to establish the best minimum number; it may be reconsidered if there is feedback it should be lower.

Most companies want their entire fleet to access the Port. In the past there was a $300 annual permit; hoping same principle applies here.

The new agreement charges are still reflective of the

number of port-approved trucks in a Licensee’s fleet.

Port Metro Vancouver acknowledges that the cost is higher; however, it is based on cost recovery.

How was the Access Agreement charge determined?

It is not cost effective for companies that only access the Port a few times a year (i.e. only 6 times a year). There is also the $50 day fee being charged because we cannot go in at night.

The local Access Agreement charge was determined through a review of costs for Port Operations, VACS gates, GPS, the 2901 Commissioner Street staging

area, and costs for the new Commissioner’s Office,

(including audit costs).

For long haul, all Commissioner costs and GPS costs were removed.

Port Metro Vancouver also provided more flexibility by keeping the minimum number of trucks for entry low, to keep the minimum rate as low as possible.

Long haul is only going once a day so our costs to the Port are lower.

Port Metro Vancouver would need to further explore this; however, as with the local TLS, some costs that need to be recovered (such as security) are not related to frequency of access. The proposed access agreement charges for long haul operators are based on cost recovery and specifically exclude costs related to only local moves, such as the GPS program.

What percent of port visits are long haul vs. local containers?

We don’t have that here information today.

The market dynamics are different between short haul and long haul, so fees should be different (local maximizes efficiency by increasing number of trips but

that’s not the long haul model).

The charges need to be apportioned fairly (but not necessarily equally) between local and long haul. Local operators will hold us to account.



B-7


We only use one truck to access the Port. Do we need to license the entire fleet?

The proposed Access Agreement would require a company to have a minimum of three trucks approved by Port Metro Vancouver for access. Alternatively, a long haul company could contract with a local firm for the local leg of the trip.

We will have to license most of our trucks (because of driver issue) and pay the fees; which will be way more expensive than we believe Port Metro Vancouver intends.

We understand the motive (BC Container Act), but there are significant challenges with the same driver requirement, which will also increase our costs. This combined with increased access charges creates a double hit on costs and affordability.

Port Metro Vancouver must also consider the effects of this change on our overall reputation as a friendly, accessible port.

Could a per diem charge be considered instead? Or a different fee structure? We cannot afford to pay in-town rates for the entire trip.

What is wrong with the way it was before?

Everything seems like a stumbling block; it is so much easier to access other ports.

These changes are a direct result of work stoppage last year.

Change has affected everyone; Port Metro

Vancouver’s goal is to making the best of the

situation.

Addressing the reservation requirement could potentially make a big difference in addressing the same operator issues that long haul operators have.

Can fees be paid quarterly? Details have yet to be confirmed, but Port Metro Vancouver anticipates making this an option.



B-8


How will the access agreement work? Companies will submit an application form (similar to the current renewal form).

If the application is sufficient, Port Metro Vancouver will issue a conditional approval letter and request payment of the damage deposit. Companies will then have until February 1 to fulfill the conditional of

approval (don’t have to pay the full annual agreement

charge up front).

Subject to completion of this consultation and any related changes, Port Metro Vancouver intends to start the application intake beginning November 30.

Will there be a new decal/ window? Port Metro Vancouver will take care of this.

Does Port Metro Vancouver have a breakdown for who causes damage?

Isn’t that why we have insurance?

The first agreement will require the damage deposit but future decisions regarding a damage deposit will be open to negotiation, based on performance.

As with the local TLS, the Access Agreement will provide a schedule of minimum damages. The operators may be able to work with their insurance company to recover certain of those charges.

Can there be a joint access agreement for long haul?

Port Metro Vancouver offered this for local TLS and very few companies availed themselves of it. It could be considered and we suggest any operators that wish to do so follow up directly with us for more information.



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Written Feedback

Port Metro Vancouver received 11 written submissions, which are included. Names and contact information of private individuals have been removed to maintain confidentiality of input.



17


From: Jeff Arnold [mailto:[email protected]] Sent: Tuesday, October 27, 2015 11:34 AM To: TLS reform <[email protected]> Subject: Long haul meeting feedback Thank you for taking the time to review my concerns regarding the proposed changes to the long haul

reform. The changes presented will have a very negative impact on our cost to operate and our ability

to provide the level of customer service our clients have come to expect.

Under the proposed changes will now be held captive to local truckers to a great degree and supporting

the part of the container market that started the strike. I would like to also point out we neither

participated nor endorsed the strike but we now bear the operational and financial consequences.

Of the proposed changes the long haul definition will be the most difficult to comply with. Our

container operations are limited to long haul reefer work and almost 100% of it is chilled pork. We load

containers for export only (no import) and the shortest lane originates in Calgary.

We face many operating variables that affect our ability to deliver loads directly from the load’s origin to

the container terminal. Some of these include:

‐Ship ERD and receiving days.

‐Restricted terminal hours‐ primarily being closed on the weekend.

‐Driver’s hours of service‐ whether they have enough hours when arriving into the lower

mainland to deliver the container and make it to a safe spot for legally required sleeper berth

time.

‐Reservation availability.

‐Reduced travel time buffer to account for weather and road closures and delays.

The containers originate and remain sealed from well outside the lower mainland, but the definition

prohibits us from moving them from our yard in Delta to the terminal As a result, we will now need to

hire a third party to deliver loads which will come at increased cost and will impact our ability to meet

the customer delivery expectations.

We are in a difficult position, we are told we cannot obtain a local license because they aren’t available

and we don’t meet the minimum number of trucks. Arnold Bros has no interest in entering the local

Long Haul Carrier

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market but we need a better solution to deliver our long haul loads than the pool of local carriers. From

our experience, they cannot meet our customer service expectations and the cost is significantly higher

than our internal cost

I would appreciate any input you can offer to help us reach a solution whether it’s to obtain a local

license or a different proposal. I realize local licenses aren’t being granted but since we only want to

service our long haul customers perhaps an exception can be made or a "special status" license can be

granted.

Thank you for the opportunity to participate in the meeting last week; If there is anything I or anyone

else at Arnold Bros. Transport can offer to assist we’ll be more than happy to help.

Thanks,

Jeff

Jeff Arnold Arnold Bros. Transport Winnipeg, MB P:204 253 3345

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From: David Lush [mailto:[email protected]] Sent: Wednesday, October 28, 2015 11:02 AM To: Rogge, Greg <[email protected]>; Chan, Mandy <[email protected]> Subject: TLS Reform Good morning Greg, Thank you all for the consultation session last week in Vancouver. I thought it was well attended and well facilitated. In terms of summarizing our concerns I thought I would jot a few down in point form.

Our ability to supply service to our customers within the lower mainland with high value over dimensional open top and flat rack containers

Our concern and justification around pricing for accessing the ports only a few times a year

Due to the fact that we are a long haul carrier we could apply to have 20 licenses to the sum of approx. $26,000.00 and have trucks situated all over NA and due to equipment availability be unable to access the port.We would then have to pay additional charges for a local drayage company to enter the port on our behalf. Our concern is that we have to pass on these charges to our customers which could eventually predispose them to use other ports in NA.

Please let me know if you have any comments or questions and thanks for your cooperation.

Best Regards,

J. David Lush

Chief Operations Officer

Long Haul Carrier

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TF: 1-800-665-7077 Phone: (604) 855-5051 Fax: (604) 855-5045

www.imtbc.com www.imtusa.aero


Marnor Group of Companies Marnor Holdings Ltd. / Rite Way Freight Systems Ltd. / Road Rider Transport Ltd

P.O. Box 1059, Aldergrove, B.C. V4W 2V1 Phone 604-857-8853 Fax 604-857-8863

MARNOR GROUP OF COMPANIES

Port Metro Vancouver Consultation

In response to the consultation on the proposed TLS Reform for the Long Haul Access Agreement.

It is the Marnor Groups position that the draft definition of a long haul move does not fully take into account all the special considerations that impact the long haul industry and more specifically the flat deck industry.

The proposed costs of licensing is excessive in comparison to other ports in North America. This would cause the trucking company to apply for more licenses than it may actually need to logistically and legally be compliant with the “same driver” clause. This cost cannot be passed on to the client.

Some of the points for consideration should be:

A Long Haul Access clause be added to the BC Container Trucking Act setting out the special conditions that are faced by the long haul industry.

The license applicant must be a member and in good standing with the UIIA

The shipment’s destination must be outside the lower mainland or arriving from outside the lower mainland.

A $100/150. Entry fee charged per load in lue of the licensing fee

The definition “Specific and Undisturbed marine container” would have to have an exemption for all flat rack and OD freight.

Long Haul Carrier



MHL Transport Page 2 of 2

Special considerations for appointments and scheduling for flat racks and all OD shipments. Which would include being able to deliver them within the lower mainland to be transferred or reduced to meet compliance with CVSE/ NSC regulations.

Clarification on the damage deposit, the discussion guide mentions a damage deposit ranging from $2100 up to a maximum of $10,000. The figure presented at the consultation was $3500. base rate which would escalate with multiple damage claims.

24 hour access to the port; this could alleviate some of the issues with drivers being able to complete the last leg of the trip.

William Inglis

Safety and Compliance Manager

Marnor Group of Companies




From: Jimmy Brar [mailto:[email protected]] Sent: Tuesday, October 27, 2015 1:00 PM To: TLS reform <[email protected]> Subject: Long Haul Components Hello, Here are a few key points that we feel should be changed: 1. Please provide long haul bypasses for actual long haul truckers, our trucks operate in Alberta, Saskatchewan and Manitoba which should be considered true long haul, not just as far as Chilliwack or Hope. Even at a $50 charge it would be ok. 2. I believe the per truck access agreement charge is too high. My trucks only access the port once or twice per week each and they are the same drivers that bring the containers from Alberta etc.. 3. The damage deposit for a trucking company should be determined based on their safety record at the port. Jimmy Brar R&J Holdings Ltd. Ph: 604‐625‐1183 Fax: 604‐856‐0687 Cell: 604‐897‐9796 www.rjholdings.ca

Long Haul Carrier



From: Jimmy Brar [mailto:[email protected]] Sent: Wednesday, October 28, 2015 9:29 AM To: TLS reform <[email protected]> Subject: Re: Long Haul Components To follow up on yesterday’s email... I’ve got 2 trucks waiting on the side of the road right now while I try to get reservations at Vanterm but there is nothing available and these trucks are supposed to turn around and head back to Alberta today. When I request help from GCT customer service I get zero help, the only thing I’m told is “check for cancellations or deliver another day instead”. You can imagine how frustrating this can be. I’m more than willing to provide paperwork to prove the containers came from Alberta. Jimmy Brar R&J Holdings Ltd. Ph: 604‐625‐1183 Fax: 604‐856‐0687 Cell: 604‐897‐9796 www.rjholdings.ca



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From: John Battagliola [mailto:[email protected]] Sent: Tuesday, October 27, 2015 3:57 PM To: TLS reform <[email protected]> Cc: 'Stanley Yan' <[email protected]> Subject: Longhaul consultation Meeting Oct 21, 2015 Good afternoon, First I would like to say the meeting October 21rst I believe was a productive and an eye opening discussion, I would like to give my thoughts as per what was discussed

1) Access agreement charge – I feel the charge is fair for a LONGHAUL carrier such as ourselves who do 20-30 Longhaul export drop offs every week on average. Where I feel it is unfair is for the companies that have 6-10 moves per year (mainly specialty moves). This puts them out of business if they are a smaller carrier

2) Minimum truck age – no problem, as eluded to in the meeting most of our equipment is newer 3) Damage deposit – understandable (we have never damaged anything on the Port property to

date) 4) Owner Operator Sponsorship – N/A we are all company trucks 5) Longhaul definition

Beyond the Lower Mainland – I feel this is correct, anything source loaded (government sealed outside the lower mainland whether it be Abbotsford or Chilliwack) is fair to be considered a longhaul carrier Specific / Undisturbed – no repacking a LONGHAUL container (have not seen this to date) Same Driver – this is were I completely disagree as noted in the meeting and have spoken to most all of our competitors who were there and agree 100%. We have only done LONGHAUL export reefer containers ex Lethbridge , Calgary, Red Deer , Winnipeg for 19 years and nothing but. We have 3-4 drivers who strictly deliver all of our LONGHAUL (as that is the only thing we do) export reefers to the dock and pickup empty containers at off dock facilities for LONGHAUL empties going back to Alberta. We have no interest and will not have interest in any local markets, there are enough companies that have been doing this work for multiple years as we and other longhaul companies have. There are so many factors as to why our business runs this way as do others, Safety being the first as discussed in the meeting, efficiency for drivers delivering to the ports, NSC profiles, the average turn around time in the city for a driver to deliver to the Port (loaded container) and then go pick up an empty container to go back to Alberta is 5 hours sometimes worse before they get on the highway. If you follow up with the NSC hours of service rules and do the math they would have to be on the road 7 days a week or make much less money for what they are doing. They are all paid by the hour in city over $ 25 per hour but 5-6 hours per trip added to and from Alberta would not allow them to do more than 1 round trip per week. I’m sorry we run completely legal (NSC standards) unlike some other Longhaul carriers, I have young children and family that travel up and down the road like you all do and I maintain safety first. Long and the short of it cost is not so much my issues with our meeting the safety concerns are regarding the same driver, it should be termed same container (undisturbed) Regards, John Battagliola Superior Transport Inc. President

Long Haul Carrier



From: Gary Vos [mailto:garyvos@tri‐rtransport.ca] Sent: Saturday, October 24, 2015 9:51 AM To: TLS reform <[email protected]> Subject: Too many trucks Hello Greg, Tri‐R Transport is a TLS Licensed holder and is mainly a local drayage company. We also are involved with long haul trucking and oversized cargo (OGG) ie: flat racks, open tops etc. Currently we have our local trucks picking up our long haul containers and dropping them in our yard for furtherance to Kamloops by our highway trucks. This is an added cost but we believe this is the cost of keeping the gateway fluent without the historical problems. Nothing should change in the current TLS system that would jeopardize what you have worked so hard to create. We know that if highway licenses or any other licenses were granted, it would open the door to everything that caused the last disruption. In our opinion there is no way to monitor highway traffic with any accuracy, which opens the door to cheating and rate cutting. Couple of examples; Regular drayage example: 1) highway truck comes in from Alberta and brings a export container to port, (who really knows where the container came from or if it was loaded at a local terminal with highway cargo and drayage company classes the container as highway) once highway truck delivers to port dispatch has a local import or empty to pick up at the same port and classes them under highway status. Trucker leave port and run out of hours in Surrey, switches loads with a non licensed trucker and leaves next morning from Surrey to Alberta with a completely different trailer with cargo that was transloaded out of a local container on to a flat bed or dry van. The loaded import or empty was a local move all along, there no GPS on the containers just the trucks. I could list many more examples. Oversized example: 2) A non TLS license truck gets a bypass to pick up a oversize flat rack or open top, leaves port and transloads cargo at a local terminal to a low bed trailer for furtherance. How does a non TLS license truck return the empty flat rack or open top to port which is no longer oversized? It has now becomes a local move with no TLS. As you know Tri‐R Transport currently pays a licensing fees of $35,000.00 per year plus all other expenses like security bond etc. to access the port. When a non TLS trucking company is given a bypass to pickup these oversized loads, with no expense at all, not even a reservation fee, it places our company at a great disadvantage. The rate cutting has already been experienced by our company because our rate can be undercut by at least $35,000.00 per year. Please consider leaving the TLS system the way it is because there’s more than enough trucks in the system and lineups now. Especially with the 250 recently added trucks. The current number of trucks are already are underutilized and could use this extra highway work to keep them busy.

Local Carrier


We believe that if more trucks are needed, it would be in the best interest of everyone to add tags to the current fleets. This would go a long way in preventing unrest amongst the already underworked truckers. If you have any questions please contact me directly. Respectfully submitted, Gary Vos Tri‐R Transport Ltd. Ph: 604‐275‐3335

All Business is undertaken in accordance with the standard trading terms and conditions of the Canadian International Freight Forwarders Associations (CIFFA). Copies of these trading terms are available on request."


From: Rex DSouza [mailto:[email protected]] Sent: Tuesday, October 20, 2015 11:00 AM To: TLS reform <[email protected]> Cc: Rogge, Greg <[email protected]> Subject: Long Haul TLS Licences Hello TLS Administrator, below are my comments regarding Long Haul and Out of Gauge trucking. 1) I disagree with issuing new TLS licenses as there are too many licenses and trucks presently in the system. 2) There are plenty of trucking companies currently in the TLS system that are more than capable of handling Long Haul and Out of Gauge containers. 3) If you do decide to hand out Long Haul licenses then those companies must be subject to the same financial burden as any other TLS license holder. 4) These so called Long Haul license holders must also have GPS installed in the trucks so that the TLS administrator can make sure that the Long haul license holders are actually going on the highway and not running around town taking away work that is already scarce. Prudential is currently only at 72% capacity and adding more licenses and trucks to the TLS system would create a strain on Prudential's financial well being. 5) Giving Long Haul tags to existing TLS holders would make more sense, as already existing TLS license holders would think twice to hoodwink the intended purpose of Long Haul tags because there is too much at stake for existing TLS license holders to risk. If you have any further questions to my above submission please don't hesitate to contact me at 778‐895‐5442 cell. Best regards Rex D’Souza President

“Fuelled By Passion”

Prudential Transportation Ltd 604‐543‐2147 P 604‐543‐9765 F 778‐895‐5442 C

Local Carrier



From: John Bourbonniere [mailto:[email protected]] Sent: Tuesday, October 27, 2015 12:49 PM To: TLS reform <[email protected]> Cc: Rogge, Greg <[email protected]>; Chan, Mandy <[email protected]>; John Bourbonniere <[email protected]>; Immanuel Chen ‐ Harbour Link Container Services Inc. <[email protected]> Subject: Submission: TLS Long Haul Reform Background: Harbour Link Container Services Inc. provides the following services supporting the Port Metro Vancouver gateway.

OFF Dock Container Depot services Local container drayage services: 79 Local Truck Tags Long Haul container drayage services to all points in Western Canada and the US PNW

The first phase of TLS reform focused only on Local TLS requirements. Harbour Link qualified under the application requirements to receive an FSO License and secured 79 Local TLS Tags effective February 1, 2015. Because Harbour Link provides both Local and Long Haul drayage services, we believe we are qualified to provide valuable input on TLS Long Haul reform. Long Haul for the purpose of access to the Port requires a clearly stated definition: We provide the definition that we have used for many years to identify the unique characteristics that separate a Local Fleet assignment from a Long Haul Fleet assignment as follows; DISCUSSION AND INPUT: 1. Long Haul Definition

Means the direct transport of a laden or empty marine container directly between the Port of Vancouver to a point beyond the Lower Mainland or vice versa. The Lower Mainland is defined to be the area which extends from Horseshoe Bay BC, South to the Canada/US border and East to the boundary of Hope, BC.

The point of origin of an Export and the final point of destination of an Import laden marine container determine the definition of Long Haul for TLS purposes. Long Haul containers must be moved undisturbed in the original container, using a driver whose method of remuneration remains unchanged throughout the entire trip and excludes any movement of a container which is subject to the Container Trucking Act, SBC 2014, chapter 28.

Local Carrier


2. Balanced Score Card The performance standards being considered by PMV are compliance history, average age of fleet, safety compliance and operational metrics. In addition to the above we recommend GPS Data should be gathered on all Long Haul access agreement trucks for the purpose of determining how many times a month each Long Haul truck accesses the port and the turn times being experienced. This is important data because a Long Haul driver has limitations on hours of service and if wait times are excessive additional costs are incurred for lost truck/driver productivity etc. These times would be valuable to determine if Access Agreements should be looked into. Prior to TLS reform, marine terminals provided Highway Bypass protocols to assist carriers due to the uncertainty of achieving time specific appointments. The Bypass protocol worked efficiently for all parties. INFORMATION AND FEEDBACK 1. Truck Age Transition The 10 year truck age transition standards that were applied for Local should be used for Long Haul. Equal standards must apply. 2. Entry Standards We agree with the entry standards as proposed by PMV. 3. Minimum Number of Trucks We agree with the proposed 3 truck minimum requirement to qualify for Long Haul access. Additional Comments:

Presently approved FSO Licensees that perform Local TLS, which also operate in the Long Haul sector should be excluded from the need to pre-qualify in the initial application process. Reference to their current operating approvals and entry requirements including safety and environmental standards has already been met as per their approval as an FSO licensee for Local, Harbour Link is an approved FSO Licensee. The existing Access Agreement terms should be sufficient to qualify for TLS Long Haul access. We agree with the levy of an annual minimum fee of $6450.00 for 3-5 trucks and with the additional levy of $1290.00 per each additional truck is adequate. Damage Deposit should be the same as Local, $10,000 for all. There is no rational for the damage deposit to be less for Long Haul. If a carrier is already operating as an approved Local FSO, the damage deposit already on file should cover both the Local and Long Haul deposit respectively. The FSO should not have to pay an additional Damage Deposit if one is already on deposit with PMV.

Miscellaneous:

Companies seeking TLS Long Haul Access should be required to meet the standards that were identified for Local as well as provide a business case that supports the Application for Long Haul access.

Individual sponsorship agreements jointly signed by the sponsoring company and the owner operator must apply to Long Haul as it does for Local.

Port Passes are required for all Long Haul approved applicant drivers.

Thank you, John

John J. Bourbonniere Executive Vice President Harbour Link Container Services Inc. (HLCSI) 7420 Hopcott Road. Delta, BC V4G 1B6 778-809-3179 (cell) 604-531-6378 (home)

www.harbour-link.com

“IMPORTANT NOTICE TO ALL CUSTOMERS”

Reminder: All drayage moves on or after February 1, 2015 incorporate the additional costs associated with implementation of the new PMV TLS and the BC Container Trucking Act. Please see our web site for additional information and updates.


From: Kevin Bandstra [mailto:[email protected]] Sent: Friday, October 23, 2015 10:17 AM To: TLS reform <[email protected]> Subject: Feedback ‐ Long Haul Hi PMV, As requested under the ‘Participant Discussion Guide’ issued on Oct 13, 2015 we are providing feedback on specific terms within the draft definition of long‐haul, and the licensing fees: 1). Same driver:

As long as the container remained undisturbed/sealed, we do not see the necessity of the same driver being required to handle the entire trip. In most cases it is not feasible for this to occur because the containers could start/end anywhere in Canada or the US. Based on our company and our knowledge of other carriers, the trailer will likely start with one driver but would be transferred to one or more drivers before it reaches its final destination.

By having to license specific trucks for port access, and the fees associated with adding more than 5 units, it will difficult for larger fleets with diverse services to be able to logistically plan the entire container movement around the same driver. The driver might have to travel a significant distance to the starting point of the container. For example, if a container required pickup in Northern BC or Yukon, a Vancouver based driver would have to drive 1500+ km to site in order to retrieve the container, despite a locally based driver to that region being able to handle a portion of the movement.

Sites (eg. mining sites, LNG constructions sites, etc) provide access based on safety orientation or security screening and it is not possible to have every driver certified with every site access in Canada or the US. Even if the same driver hauled the container from Vancouver to destination city, there a significant chance a local driver would have to complete the final leg into the customer site.

2). Method of remuneration: Based on our knowledge, few long distance carriers would compensate drivers with the same

method of remuneration for the whole trips, including time spent waiting/loading/unloading at a PMV container terminal. A common model for these driver would be paid hourly for time spent waiting/loading/unloading at a PMV container terminal, and per km/mi for distance during driving time.

If our employees are compensated based on a union collective agreement, we do not see the necessity of this requirement.

3). Licensing Fees:

The licensing fees are high considering one container trip could be in excess of 1 week due to the ‘same driver’ requirements. There is less opportunity to amortize the cost of the license over a greater number of containers (which can be done with a local licensed truck pickup multiple container per day). This could lead to an unfair competitive pricing advantage to long‐haul carriers between shorter distant locations that are able to haul multiple containers per week.

Thanks,

Not Long Haul or Local Carrier

Text removed for confidentiality

Kevin Bandstra Bandstra Transportation Systems Ltd. 135 – 9920 River Dr Richmond, BC, V6X 3S3 Ph. 604‐248‐3903


Documents

LH TLS Consultation Summary Report v9 final draft 151112 · consistency, quality and operating standards, productivity and transparency and accountability. The new TLS requirements