Introduction

This is the initial newsletter coming to you from PierPASS. This newsletter is intended to provide interested parties current and accurate information on the development and implementation of a program to operate marine terminals at the ports of Los Angeles and Long Beach during off-peak hours. This inaugural edition of the PierPASS newsletter will give you an update as to where we are and where we are going. Future editions will be produced on a bi-weekly basis for several weeks and then, as implementation approaches, we will produce a weekly edition. In addition, we are providing you a brief history of the PierPASS program that will explain how this program came into being and what it is designed to accomplish. This history can shortly be viewed by visiting the PierPASS website (www.PierPASS.org). We certainly hope that you will visit our website between newsletters for current information about PierPASS and to pose questions to the PierPASS staff.

Implementation Commencing First Quarter 2005

While PierPASS initially announced plans to begin operating extended gates in November of this year, the Pacific Maritime Association (PMA), informed PierPASS members well over a month ago that because of the recent labor situation in the Southern California terminals, PMA would not be able to supply consistent labor for our extended hours shifts until the first quarter of 2005. Although the situation is slightly improving, this is consistent with our current experience. We are still planning on the first quarter to start the PierPASS program. PMA has agreed to update its studies conducted last year on the impact PierPASS will have on the demand for labor and specific skills and to incorporate that need in its planning and enrollment processes underway with the ILWU.

Acceleration of Implementation

Initially, plans were made to phase in the extended hours shifts over a period of five months. With the input we have received from both the customer community and the trucking community, we have altered our plans and will initiate five extended hour shifts in the first month of operation. The more rapid implementation will require more initial planning and systems work, but will allow truckers and the industry to adapt their schedules more readily to the program. The accelerated implementation schedule will allow shippers to control costs by more quickly using off-peak operations and avoid the Traffic Mitigation Fee. The precise schedule of which shifts will be added Monday through Friday and on the weekends is still being discussed with interested stakeholders and among members. The initial schedule for the entire implantation will be published at least one month in advance of the start of the PierPASS program.

Progress With Administration

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Keeping You Informed

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