Pier PASS to Implement Daytime Fees At LA/LB Ports Beginning in Second Half of July 2005, Etc
PierPASS Inc. has announced that it plans to implement its OffPeak program beginning in the second half of July 2005. OffPeak is the off peak hours program created by PierPASS to provide an incentive for cargo owners to move cargo at night and on weekends, in order to reduce truck traffic and pollution during peak daytime traffic hours and to alleviate port congestion.
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(PierPASS is a not-for-profit organization created by marine terminal operators to reduce congestion and improve air quality in and around the Ports of Los Angeles and Long Beach.)
Implementation schedule for OffPeak. According to PierPASS, the following is the anticipated implementation schedule for OffPeak:
Registration began on May 23, 2005
Systems testing period to begin mid-June 2005 (at which time all computer systems will be operational, and financial and gate systems will be stress-tested during daytime shifts)
OffPeak shifts to begin in second half of July 2005. At that time, a Traffic Mitigation Fee (TMF) will be required for cargo movements through the ports during peak daytime hours, with certain exceptions.
According to PierPASS, only registered users will be able to pay the TMF. Users of the ports (such as cargo owners, brokers, truckers, and logistics companies) can register for OffPeak through a link on the PierPASS Web site (www.pierpass.org) or by going directly to the registration site at www.pierpass-tmf.org.
PierPASS will assess a TMF on all loaded containers entering or exiting marine terminal gates by road during peak daytime hours (weekdays 8:00 a.m. to 5:00 p.m.)
TMF will be at reduced rate during ramp-up period. When OffPeak is in full operation, the TMF will be $40 per TEU (20-foot equivalent unit) or $80 for a 40-foot container. However, during the initial ramp-up period of several weeks, PierPASS will set the TMF at $20 per TEU.
Empty containers and chassis, etc. will not be assessed the TMF. PierPASS will not assess the TMF for empty containers and chassis, domestic containers, or transshipment to other ports. Nor will it assess the TMF for intermodal containers that depart or arrive via the Alameda Corridor for import or export and that pay an ACTA fee. The beneficial cargo owners (shippers, consignees, or their agents) are responsible for payment of the TMF. The trucking community and water carriers are not responsible for the payment.
TMF must be paid in advance for imported containers. PierPASS states that imported containers will not be allowed to pass through terminal gates during peak hours unless the TMF has been paid or billed in advance. Exporters can either pay in advance or afterward. In no case will payments be accepted at the gate by the terminal operators - all payments of the TMF must be made to PierPASS.
According to PierPASS, when each payment is made, an electronic message is sent to the terminal's operating system in much the same way Ocean Freight or demurrage charges are sent which will allow the gate transaction.
The official hours of the OffPeak program will be posted on the PierPASS web site at www.pierpass.org. Adequate notice to the trade and trucking community will be made if the OffPeak hours are changed.
The TMF payments collected, minus PierPASS overhead and minus the refunds for the cargo moving through the marine terminal gates during off peak hours, will be allocated by PierPASS to the marine terminals to help offset their incremental costs to operate the extra gates.
See ITT's Online Archives or 05/20/05 news, 05052099 1 for BP summary on the delay of PierPASS from its June 1, 2005 target date.
PierPASS press release (dated 05/19/05) available at https://www.pierpass-tmf.org/PierPass/Public/Content.aspx?a=bcoPierPassReadMore&type=news.
General Frequently Asked Questions for PierPASS (dated 05/27/05) available at http://www.pierpass.org/,