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Pier Pass Q & A

As several of the same questions arise at every presentation we thought it would be useful to review some of the most common questions and issues.

Question: When do you expect PierPASS to begin?
Answer: We are targeting the first quarter of 2005. As we are setting up a completely new corporate entity that will provide the interface between twelve marine terminals and hundreds of thousands of cargo owners, much work needs to be done. On the administrative side, we are currently setting up offices, interviewing potential employees, and issuing and receiving Requests For Proposals (RFPs) for our software applications.

Question: Is the fee still going to be $20 per TEU ?
Answer: As we have stated, the rate during the phase in period of 1 -5 extra gates will be $20 per TEU. The true rate is based on an analysis conducted by a reputable outside consulting firm that evaluated the additional costs required to introduce full service extended hour gates. As we introduce those extended hour gates over five nights, the operational costs will be reviewed and we will make adjustments to the phase in rate for the Traffic Mitigation Fee. We anticipate that it will be $40 per TEU.

Question: When you open the gates, how long will it take to get all gates opened?
Answer: Based on input we received from trucking companies, policy makers and cargo owners, we are now planning to open the gates in a much shorter time frame. We will open five gates within the first month of operations. The initial schedule called for five gates to be introduced over five months.

Question: Has anything changed as to who and how the fee will be paid?
Answer: No. The Traffic Mitigation Fee is still the responsibility of the Beneficial Cargo Owner (or his/her agent) and will be paid directly to PierPASS. Payment options still include: credit agreement, credit or debit card, electronic check against an open account, or an electronic check against a specific shipment (TBD). The fee will be paid by one of these methods through the PierPASS WEB site and the payment must be made prior to the shipment moving through a marine terminal gate. Large shippers will have an EDI or Electronic Data Interchange (computer-to-computer) option to facilitate the process.

Question: How are you going to test the system?
Answer: We will go through all of the normal testing procedures inherent to establishing a new and complex computer system. In addition, several large customers or BCO's have volunteered to beta test our system with their live traffic. We will do this successfully before going "live" with PierPASS.

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