The Clean Trucks Program The Clean Trucks Program

CEE 587CEE 587

Spring 2009Spring 2009

Steamship lines (APL, Cosco)Steamship lines (APL, Cosco) Terminal Operators (MTC, SSA)Terminal Operators (MTC, SSA) Port Authorities (Port of Seattle)Port Authorities (Port of Seattle) County Governments (Pierce County Terminal)County Governments (Pierce County Terminal) City Governments (City of Seattle, Seattle DOT, WSDOT)City Governments (City of Seattle, Seattle DOT, WSDOT) Security agencies (DHS)Security agencies (DHS) Drayage drivers and Licensed Motor CarriersDrayage drivers and Licensed Motor Carriers Importers or Shippers (WalMart)Importers or Shippers (WalMart) Freight forwarders and expeditorsFreight forwarders and expeditors 3PLs or Logistics providers3PLs or Logistics providers Customs brokersCustoms brokers CBPCBP Labor Unions (ILWU, Teamsters)Labor Unions (ILWU, Teamsters) Interest Groups (Waterfront Coallition)Interest Groups (Waterfront Coallition) EPAEPA RailroadsRailroads

Marine Terminal ActorsMarine Terminal Actors

Own objectives and remuneration or incentive schemes

Marine Terminal IssuesMarine Terminal Issues

EnvironmentEnvironment Air qualityAir quality WetlandsWetlands Water qualityWater quality ……

Security concernsSecurity concerns CompetitivenessCompetitiveness Quality of lifeQuality of life FederalismFederalism

Consideration at a system level

Drayage TrucksDrayage Trucks

What is the Clean Trucks Program?What is the Clean Trucks Program?

A proposal by the Ports of Los Angeles A proposal by the Ports of Los Angeles and Long Beach that would govern their and Long Beach that would govern their relationships with Licensed Motor Carriers relationships with Licensed Motor Carriers (LMCs)(LMCs)

LMCs will need to obtain a concession LMCs will need to obtain a concession from the ports to do business therefrom the ports to do business there

LMCs must employ their drivers, currently LMCs must employ their drivers, currently most drayage drivers are owner/operatorsmost drayage drivers are owner/operators

What is the Clean Trucks Program?What is the Clean Trucks Program?

Trucks will be charged a Transportation Trucks will be charged a Transportation Impact Fee for every entry into the port Impact Fee for every entry into the port ($34) if the truck does not meet 2007 ($34) if the truck does not meet 2007 Environmental Protection Agency Environmental Protection Agency regulationsregulations

Trucks will be required to have GPS unitsTrucks will be required to have GPS units Trucks will be required to have RFID tagsTrucks will be required to have RFID tags By 2012 all trucks will be required to meet By 2012 all trucks will be required to meet

2007 EPA regulations2007 EPA regulations

Official Goal of the CTPOfficial Goal of the CTP

With the program in place, the ports should be With the program in place, the ports should be able to move forward with their infrastructure able to move forward with their infrastructure plans to expand to a capacity of 42.5 million plans to expand to a capacity of 42.5 million TEUs while meeting the Clean Air Action Plan’s TEUs while meeting the Clean Air Action Plan’s goalsgoals

Currently the ports moved about 16 million TEUs Currently the ports moved about 16 million TEUs in 2006in 2006

The Clean Air Action Plan will cut particulate The Clean Air Action Plan will cut particulate matter (PM) pollution from all port-related matter (PM) pollution from all port-related sources by at least 47 percent within the next sources by at least 47 percent within the next five yearsfive years

Other ObjectivesOther Objectives

Transfer the burden of regulation from the Transfer the burden of regulation from the ports to the LMCs (security, safety, ports to the LMCs (security, safety, environment)environment)

Increase transportation system efficiencyIncrease transportation system efficiency Provide a mechanism for financing a Provide a mechanism for financing a

technology investment at the porttechnology investment at the port Improve working conditions for drayage Improve working conditions for drayage

drivers (estimate improvement from drivers (estimate improvement from $12/hour to $20/hour)$12/hour to $20/hour)

What is the threat?What is the threat?

Southern California willSouthern California will Experience tighter environmental regulationExperience tighter environmental regulation Lose it’s position as the main US Port of Entry Lose it’s position as the main US Port of Entry

for goods from Asiafor goods from Asia Lose the associated jobs and economic Lose the associated jobs and economic

activityactivity• ““By roughly 2025, that will result in the ability of the By roughly 2025, that will result in the ability of the

ports to support 300,000 to 600,000 new jobs that ports to support 300,000 to 600,000 new jobs that would be lost if that infrastructure cannot be built.” would be lost if that infrastructure cannot be built.” John HusingJohn Husing

Current OperationsCurrent Operations

Increasing the Size of Truck FleetsIncreasing the Size of Truck Fleets

Current fleets are small (70% less than 25 Current fleets are small (70% less than 25 drivers)drivers)

Estimated 16,000 drayage trucks in operationEstimated 16,000 drayage trucks in operation Number of concessions will be limitedNumber of concessions will be limited Greater opportunities for operational efficiencies Greater opportunities for operational efficiencies

at the fleet levelat the fleet level Decouple the driver and truck, two shifts, Decouple the driver and truck, two shifts,

spreading demandspreading demand Could reduce gate delay and terminal time if equal Could reduce gate delay and terminal time if equal

terminal resources provided across both shiftsterminal resources provided across both shifts

Employee DriversEmployee Drivers

Increases driver reliability?Increases driver reliability? Increase driver tenure/knowledgeIncrease driver tenure/knowledge Increased screening and background checksIncreased screening and background checks Reduce driver turn-overReduce driver turn-over Reduce trouble transactionsReduce trouble transactions Measured reduced wait timeMeasured reduced wait time

Relationship between productivity and Relationship between productivity and remuneration schemeremuneration scheme

SeasonalitySeasonality

Magnitude of Trouble TransactionsMagnitude of Trouble Transactions

Fewer trouble transactions due to Fewer trouble transactions due to familiarity with terminal operationsfamiliarity with terminal operations

Average trouble time 18 minutesAverage trouble time 18 minutes 3% of total terminal time3% of total terminal time Occur in between 5 and 10 % of all Occur in between 5 and 10 % of all

transactionstransactions

Gate Time ImpactsGate Time Impacts

Automatic identification with RFIDAutomatic identification with RFID Smoothing demand through use of 2 driver Smoothing demand through use of 2 driver

shiftsshifts Increased driver retentionIncreased driver retention Security and labor concerns counter Security and labor concerns counter

improvements from technology improvements from technology implementationsimplementations

Reducing number of tripsReducing number of trips

Reducing Processing TimeReducing Processing Time

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1 0.8 0.5 0.3 0

Proportion of trucks experiencing reduced gate processing time (30 secs to 15 secs)

Tim

e

Driver wait time reduction (secs)

Total wait time reduction (hrs)

Arrival PatternArrival Pattern

Perfectly uniform arrivals could completely Perfectly uniform arrivals could completely eliminate gate delayseliminate gate delays

Additional benefit to the trucker through Additional benefit to the trucker through reduced terminal timesreduced terminal times

Better resource planning for terminalBetter resource planning for terminal

Terminal Time ImpactsTerminal Time Impacts

Fewer trouble transactionsFewer trouble transactions Familiarity with terminal operationsFamiliarity with terminal operations Increased arrival rate into the terminal Increased arrival rate into the terminal

increases increases terminal time but decreases terminal time but decreases gate delaygate delay

Delays in the terminal are currently much Delays in the terminal are currently much more significant than delays at the gatemore significant than delays at the gate

Truck Impact FeeTruck Impact Fee

Additional incentive to reduce trips per containerAdditional incentive to reduce trips per container Limited by current practice, fleet size and Limited by current practice, fleet size and

import/export balanceimport/export balance Matching at the destination: Matching at the destination:

Empty containers currently stored at the portEmpty containers currently stored at the port

Matching at the port:Matching at the port: Bobtail in, wheeled container out can be combined Bobtail in, wheeled container out can be combined

with wheeled container in, bobtail outwith wheeled container in, bobtail out

Full container destination

Full container origin

Port

Full container destination

Full container origin

Port

Currently Matched TripsCurrently Matched Trips

Possible improvements from Possible improvements from matchingmatching

Index

PercentageMatched trips

Average arrivalrate (trucks/hr)

Average terminalTime (mins)

Average Waiting time(mins)

Turn time(mins)

1 0 250 36.29 4.36 40.65

2 15 213 34.9 1.067 35.97

3 18.7 203 34.5 0.932 35.43

4 20 200 34.37 0.88 35.38

5 25 188 33.84 0.79 34.63

6 30 175.3 33.23 0.72 33.95

For the terminal considered, an increase in matching trips by 15% (from 15 to 30%), the total turn time would be reduced by 2 minutes, about a 5% reduction in trip time.

Current matching percentage

Estimated from regression model

Queueing SystemQueueing System

Gate

Stacks

Single versus double moves, wheeled versus stacked storage

Terminal Time ModelingTerminal Time Modeling

Linear RegressionLinear Regression

Linear regression between terminal time and 5 independent variablesIntercept Trucks of each

typeTotal trucks

RTGs Rail Gang Vessel Gang

R2 DWS

DEI 8.3 0.005 0.006 0.135 2.837 -0.166 0.223729 2.13WEI 36.02 -0.329 0.015 1.29 -2.964 -1.647 0.094249 1.915DEO 33.67 -0.064 0.008 2.286 -7.426 -1.146 0.315844 2.497WEO 18.848 0.014 0.007 -0.141 1.53 -0.437 0.171396 2.238DEX 14.434 -0.047 0.016 -0.002 0.992 -0.126 0.209764 2.229WEX 33.029 0.123 -0.007 2.374 -3.519 -1.697 0.3025 1.756DIM 43.093 -0.014 0.036 1.295 -3.508 -0.816 0.354025 1.865WIM 33.574 0.129 -0.007 1.841 -3.613 -0.881 0.274576 2.121

M/D/1 AssumptionM/D/1 AssumptionSingle server, deterministic service times

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80

Arrival rate

Wai

t ti

me

Variation in Terminal TimesVariation in Terminal Times

0

5

10

15

20

25

30

35

40

45

50

Decked Mean(minutes)

Decked Standarddeviation (minutes)

Wheeled Mean(minutes)

Wheeled Standarddeviation (minutes)

EI

EO

EX

IM

Terminal Time Prediction Terminal Time Prediction

0

0.05

0.1

0.15

0.2

0.25

15 min 30 min 45 min 60 min

DEI

WEI

DEO

WEO

DEX

WEX

DIM

R2

Could not correct for autocorrelation on wheeled imports

High tailsHigh tails

Known DriversKnown Drivers

Reductions in gate time due to an Reductions in gate time due to an increased percentage of known driversincreased percentage of known drivers

MARSEC rules require a certain MARSEC rules require a certain percentage of trucks to be positively percentage of trucks to be positively identified under each MARSEC level identified under each MARSEC level

Gate time reductions with known Gate time reductions with known vendorsvendors

Wait times MARSEC 1

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1 0.8 0.5 0.3 0

Proportion of known vendors

Tim

e

Average wait timereduction (secs)

Total wait timereduction (hrs)

Estimated from queueing model

More benefit under high securityMore benefit under high security

Estimated from queueing model

SummarySummary The program itself does not require operational changes.The program itself does not require operational changes.

It provides some additional incentive to improve efficiency (truck fee, fleet It provides some additional incentive to improve efficiency (truck fee, fleet

efficiencies).efficiencies).

Implementation of the program may result in mild improvements through;Implementation of the program may result in mild improvements through; reduced gate delays,reduced gate delays, fleet efficiencies,fleet efficiencies, increased driver tenure.increased driver tenure.

The possibility of disruption or inadequate truck or driver supply or the cost of the The possibility of disruption or inadequate truck or driver supply or the cost of the program to the industry is certainly increased.program to the industry is certainly increased.

The relationship between terminal time and operating parameters should be better The relationship between terminal time and operating parameters should be better understoodunderstood

Improvements at the gate must be matched with improvements in the terminalImprovements at the gate must be matched with improvements in the terminal Terminal operations systemsTerminal operations systems Sensing infrastructure linked to operations managementSensing infrastructure linked to operations management

The CTP creates an The CTP creates an opportunityopportunity and 3% efficiency improvement could be achieved. and 3% efficiency improvement could be achieved.

RecommendationsRecommendations Coordination required between terminal Coordination required between terminal

operators and LMCsoperators and LMCs Historically the relationship between ILWU Historically the relationship between ILWU

(terminal employees) and drayage drivers (terminal employees) and drayage drivers (owner/operators) has been difficult(owner/operators) has been difficult

Mechanisms will be required to ensure Mechanisms will be required to ensure cooperation if benefits are to be realized from cooperation if benefits are to be realized from technology investmenttechnology investment

Consistent with other transportation Consistent with other transportation developmentsdevelopments

System benefit requires transfer of costSystem benefit requires transfer of cost