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MTSNAC Minutes

November 18-19, 2004

Holiday Inn Capitol

Washington, DC

 

Attendance

 

 

 

Day 1 – November 18, 2004

 

John Gaughan, Chair of MTSNAC convened the meeting at 1:15 p.m. on November 18, 2004, by welcoming those in attendance and invited the MTSNAC members to make self-introductions.

 

Approval of Minutes from May MTSNAC Meeting

 

The first item of business was the approval of the minutes of the May 3-4, 2004 MTSNAC meeting.  After a motion, second, and call for discussion, the minutes were approved. 

 

General Discussion of MTSNAC Mission and Purpose

 

The Chair opened the floor for a discussion of the mission and purpose of the MTSNAC to orient new Council members. He also reflected on some of the past accomplishments of the MTSNAC. Highlights of his remarks are as follows:

 

Scope - MTSNAC is an advisory body and does not to determine public policy.  MTSNAC provides advice to the Secretary of Transportation on marine transportation system related issues that include, but are not limited to, the inland waterways, ports, infrastructure development strategy, and international standards.

 

Accomplishments – Over the past 18 months, MTSNAC provided input and language for the development of a SEA-21 proposal to the Department of Transportation (DOT).  The Council also provided recommendations for the U.S. Commission on Ocean Policy Report.

 

SEA-21 Initiative - The Council anticipates a formal response from the Secretary’s Office on its recommendations. 

 

Future - It is time to refocus and work specifically on projects that incorporate the MTS into the nation’s overall transportation system.

 

Report on Previous Action Items

 

Richard Lolich, Executive Director of MTSNAC, reported on the Action Items from the last meeting.  The action items were:

 

Action Item #1 - Request for chronological list of resolutions. 

Richard Lolich noted that a chronological list of all Council resolutions, since the first Council meeting in May 2000, was included in the members’ packets. He further reported that this document would now be updated on a regular basis.

 

Action Item #2 - Recommendation to the Secretary. 

A copy of the Council’s response on the U.S. Commission on Ocean Policy Report to the Secretary was also provided for the Council’s reference.  The final Report has been forwarded to the President.  President Bush’s Report comments were expected to be finalized by December 20, 2004.  This communication will be provided to all participating Federal Agencies.

 

Action Item #3 – SEA-21 Recommendation.

A status report was presented regarding the Council’s request to provide seed money to initiate a Pacific Northwest Waterways Association (PNWA) MTS study of the navigation and surface transportation needs of the Columbia-Snake River System and Oregon coastal ports.  (This recommendation was included in the Department’s SEA-21 initiative package).  No specific action has been taken on this request at this time.

 

Additionally, a summary of the presentations from the Third Annual Short Sea Shipping Conference in New York was provided to Council members.

 

Remarks from the Sponsor

 

Kevin Krick, Senior Advisor for Maritime Policy at the Maritime Administration, advised that John Jamian and Captain Bill Schubert sent their greetings and best wishes to the Council.  They expressed profound regret that they could not attend this important meeting.  Mr. Jamian was attending the opening of a joint MARAD/DOT International Gateway Office housed at the Ports of LA/Long Beach.  He was scheduled to address the Council on the second day of the MTSNAC meeting.  Captain Schubert was unable to attend due to conflicting travel commitments. Kevin Krick reported that there was strong Departmental interest in the Council’s SEA-21 comments and critique.

 

Maggie Blum, Associate Administrator for Ports, Intermodal and Environmental Activities, commented that the joint International Gateway Office will serve as a “one stop shopping” facility for those seeking loans and grants to fund infrastructure modernization and replacement projects. 

 

Randy Rogers, formally a MARAD Western Region Intermodal Specialist, was selected as the joint program office representative.  He will represent the entire Department in this new capacity.  In response to a Council member inquiry, Kevin Krick indicated that an organizational chart for MARAD’s new Gateway Office would be provided to the Council Members.

 

Concern about the Office of Intermodalism

 

A discussion ensued concerning the future of the Office of Intermodalism and its role within the DOT.  It was agreed that this subject should be discussed further with John Jamian, Deputy Maritime Administrator.

 

Presentation on National Transportation Policy

 

Rick Gabrielson gave a presentation to the Council on the “Shipper’s Point of View” regarding the National Transportation Policy.  His presentation noted dramatic increases in cargo volume in all trades. He identified the key issues as follows:

• Infrastructure has not kept up with transportation demand.

• Road infrastructure is not keeping pace with congestion on the west and east coasts.

• There has been no significant port expansion.  (Only major new terminal being developed is by Maersk Lines in Norfolk, VA). 

• Ecological issues such as air quality and noise abatement are becoming increasingly important to port based communities

• Rail capacity in Southern California is strained and nearing capacity.

• There is only one rail line between Southern California and Chicago

• There is no rail service between the various rail lines based in Chicago.  Containers are trucked between the rail yards. 

• Marine transportation integration has to take place between all modes.

 

Rick Gabrielson noted that Short Sea Shipping (SSS) has created a “buzz” in the shipper community, but that they were not included in the policy development process.  Shippers were not represented at MARAD’s SSS Conference and that greater outreach efforts were necessary to expand the universe of institutional support for expanded SSS services.  In order to be successful, SSS has to be competitive with truck in reliability, service, and rates.

 

To meet the issues and challenges before MTSNAC, Rick Gabrielson suggested that the current MTSNAC Teams be realigned into specific transportation subject groups such as, railroad, port terminals (infrastructure), truck movement, ocean movement, education, data collection and statistics, inland waterways, coastal waterways, and security.  The new Teams would be cross-functional with well defined market based responsibilities.  Clearly, the Teams would have to be integrated and support each other as they sought solutions to growing transportation congestion problems.

 

A question and answer period followed Rick Gabrielson’s presentation.

 

Peter Peyton then gave a report on West Coast congestion.  Four years ago seven problem areas were under consideration.  The first problem was that the various sectors in ocean transportation did not speak the same language, because of competition.  Some of the sectors were ocean carriers, shippers, truckers, and terminals.  There were problems with infrastructure, environmental issues, zero growth groups, rail, and road groups.  All required solutions both short and long term.  These groups would talk, but would not listen to each other, preferring to take the position that “it’s not my problem.”  Truth was that it was their problem because they were part of the total transportation structure.  In order to come up with answers for the congestion problem in the Los Angeles/Long Beach ports, one must think outside the box.   Terminals have to be thought of like a giant skid, where cargo moves in and out.  Warehouses on the terminal do not facilitate the movement of cargo off the terminal.  Stacking containers requires more and more labor.  Mr. Peyton suggested that MTSNAC identify the most serious problems at the port and ask how we can fix them and identify short and long-term solutions.  In order to do this, you first need to know where is the problem, he said.  What is the value?  What is the solution?  We need to identify who has done studies that might address problems in the supply chain and recommend solutions.

 

The meeting then adjourned at 5:00 p.m.

 

Day 2 – November 19, 2004

 

The meeting reconvened at 8:30 a.m. on November 19, 2004

 

John Gaughan welcomed everyone and thanked the Port Authority of NY/NJ on behalf of the Council for the reception the previous night.  He said that the meeting would follow the printed agenda and asked for Council comments -- there were none.  He then proceeded to the public comment period.  (Two people had signed up to make public comments).

 

Public Comment Period

 

The first public commenter was Helen Brohl from the National Association of Maritime Organizations (NAMO) and a director of the U.S. Great Lakes Shipping Association.  She spoke to the Council about an initiative to integrate ocean observing systems (IOOS) to improve safety.  She encouraged the Council to be involved in IOOS activities, as well as the Coast Guard, and the Maritime Administration.  She requested that MTSNAC support the IOOS initiative.

 

The second public commenter, RADM Carl Seiberlich, gave a presentation to the Council.  He spoke of the importance to incorporate world standards into the U.S. efforts, such as the Transportation Workers Identification Credential (TWIC) program, given that the World Trade Organization (WTO) requires its signatories to adopt international standards as a basis for national standards.  He mentioned that the International Organization for Standardization (ISO) is leading an international pilot program (called ISO/TC8) designed to improve security and increase productivity of the international intermodal freight transportation system.  This pilot program is working with numerous shippers, ports, liner companies, and technology providers, as well as transportation institutes, universities, and laboratories, and would satisfy International Maritime Organization (IMO) requirements.

 

John Gaughan said he would like the Security Team to investigate this issue. 

 

ICMTS R & T Conference Report

 

Maggie Blum reported on the Interagency Committee for Marine Transportation System (ICMTS) Research and Technology Conference held the week of November 14, 2004.  She said that it was an outstanding meeting and praised the cooperative efforts of the Federal Agencies that comprise the ICMTS.  (The ICMTS is made up of 18 agencies, including MARAD, U.S. Army Corps of Engineers (Corps), Navy, NOAA, and the Coast Guard).  She advised the Council that the Transportation Research Board (TRB) had released a publication on the MTS and the federal role in marine transportation, which discusses/measures performance and targets improvements in the system.  The ICMTS Conference brought up issues of improved observing systems, port environmental challenges (specifically air pollution), diesel fuel as a carcinogen, environmental windows for species, the feasibility of SSS, and innovative financing of the nation’s lock and dam system.

 

MTS Regional Reports

 

David White, Administrator of the Hampton Roads Maritime Association, provided an update on the activities of the South Atlantic Marine Transportation System Organization (SAMTSO).  Mr. White reported that SAMTSO was the regional organization representing the Eastern Seaboard States from Virginia to Florida.  There have been five SAMTSO meetings since the organization’s inception and the next meeting is scheduled for February or March of 2005.  SAMTSO seeks to provide a forum for transportation providers to discuss issues affecting local economic growth and security needs.

 

To date, SAMTSO meetings have been focused on a system needs assessment and maritime security issues.  The overall view of those attending the meetings is that the federal government should take the lead in the area of maritime security.  They believe maritime security issues overwhelm important transportation infrastructure issues and that maritime security remains an unfunded mandate.  SAMTSO supports the U.S. Commission on Ocean Policy report on environmental issues and is concerned about the proposed NOAA ruling regarding Right Whale.  Also, SAMTSO maintains that NOAA has not properly reviewed the costs associated with their request for ocean carriers to reduce speeds from 10 to 14 knots when entering the restricted zones harboring the Right Whales.  Regarding SSS, SAMTSO thinks it is a great idea, but is concerned that the labor component makes it a non-competitive business endeavor.  Also, they believe that the shoaling of the inter-coastal waterway will hinder the development of SSS.

 

Following the report the Council discussed responsibility for security and labor issues affecting SSS.

 

Norman Fassler-Katz, representing the California Marine and Intermodal Transportation System Advisory Council (CALMITSAC), followed with an update on the activities of that organization.  Mr. Fassler-Katz reported on and listed the organization’s many efforts and successes in increasing awareness of both California legislators and the public:

 

• CALMITSAC is frequently asked to attend various functions throughout the state (i.e., freight forwarders conference).

• t has held two meetings on congestion issues impacting the LA/LB port complex, and invited the Alameda Corridor Transportation Authority and California Trucking Association’s Intermodal Committee to attend.

• t has provided input to the newly formed West Coast Corridor Coalition, which is made up of delegates from California, Oregon, and Washington.  Serves as a vehicle to discuss transportation projects, particularly those having to do with movement of goods.

• Burlington Northern railroad approached CALMITSAC about participating in the organization’s efforts.

• CALMITSAC helped facilitate dialogue between legislators and the maritime industry, resulting in the Pier Pass program which encourages extended gate hours.

• CALMITSAC briefed the governor and created a working group which will develop a security strategic plan for California ports.

• CALMITSAC’s greatest achievement has been the passing into law of Assembly Bill 2043, giving the organization statutory authority.  They have been tasked to design and submit a strategic plan to the legislature for the California MTS:

 

 

CALMITSAC recommended adding “intermodal” to MTSNAC and changing the acronym to MITSNAC.  He also suggested the MTSNAC consider allowing regional representatives a vote on the Council.

 

Following the report Mr. Fassler-Katz was asked whether he could identify and find solutions to the congestion problems presently being experienced in California.  Mr. Fassler-Katz responded by suggesting that Mr. Jon Hemingway from Stevedoring Services of America (SSA) give a presentation to the Council on the “Present Storm” – an overview of the congestion situation currently at the ports of Los Angeles and Long Beach.  Mr. Fassler-Katz added that presentations were being provided to the California State Legislature to highlight the ongoing congestion problem in California.  He went on to say that the CALMITSAC has made every effort to elevate the problem of congestion in the ports of Los Angeles and Long Beach and renewed his invitation for MTSNAC to meeting in Sacramento.

 

A discussion by the Council followed the report.

 

DOT Freight Action Agenda

 

George Schoener, Deputy Assistant Secretary for Transportation Policy at the Department of Transportation, discussed DOT’s Freight Action Agenda.  He advised that Jeff Shane, DOT Undersecretary for Policy has made it clear he wants the Department to assist wherever it can to facilitate resolving congestion problems in the ports of Los Angeles and Long Beach.  The Freight Action Agenda came about during the Transportation Equity Act for the 21^st Century (TEA-21) re-authorization, when DOT recognized that there might be more it could do to facilitate the movement of freight.  At this time the Freight Action Agenda is a work in progress and will continue to evolve.  The U.S. Commission on Ocean Policy Report called for a National Freight Study, and recommended that the National Freight Action Agenda be a base for a National Freight Study.  Mr. Schoener hopes the President will endorse the document in mid December.

The Freight Action Agenda would incorporate the following:

 

A)    Facilitate development of major projects.  Preliminary sites being looked at, but not

necessarily determined are:

 

a)      Port of Anchorage

b)      Chicago – Great Railroad Project

c)      Seattle, Alaskan viaduct project.  Need to look at port access and highway access.

 

B)     Develop better intermodal connectivity.

C)    Development of a Short Sea Shipping Program and identify potential corridors.

D)    Develop intelligent freight technologies -- a major activity in FY 06.

E)     Electronic freight manifest to manage the flow of freight.

F)     Awareness Program – Public has to have a better understanding of how freight moves.

G)    Freight Data – Require high quality data on a timely basis.  The challenge is that much of the required data is confidential.

 

Mr. Schoener then went on to advise that the Senate and House passed, and the President has signed legislation moving the Bureau of Transportation Statistics and the Office of Intermodalism into a newly created Research and Innovative Technology Administration (RITA).  This will allow research of information of all modes. 

 

Mr. Schoener explained that freight and intermodalism is still the number one issue at DOT, and the fact the Office of Intermodalism will be under RITA should in no way be construed that freight and intermodalism are no longer important issues.  John Gaughan asked George Schoener to take back MTSNAC’s concerns to DOT’s leadership, adding that Council resolutions for clearing the congestion at the posts of Los Angeles and Long Beach should complement those actions already being undertaken.  George Schoener stated that he will pass on MTSNAC’s concerns and any ideas it may have on solving the congestion problems at the ports of Los Angeles and Long Beach.

 

Following the presentation the Council discussed and agreed to prepare a letter signed by the Council members supporting SEA-21 highlighting the Council’s concerns to the Department of Transportation. 

Council Team Realignment

 

The Council addressed team realignments.

 

It was recommended and approved that the current nine teams be reduced to four teams:  Waterways, Education, Intermodal Capacity and Operations, and Shipbuilding, and that the following issues should be considered by each:

 

-         Security

-         Funding

-         Safety and Environment

-         Data collection and Research

-         Information

-         Labor

 

The Council discussed the changes.  A Council member suggested the establishment of Super Committees.  This suggestion was discussed but withdrawn.

 

SEA-21 Update

 

John Jamian, the Deputy Maritime Administrator, provided an update on SEA-21.  Before discussing SEA-21, Mr. Jamian commented on the importance of the West Coast congestion and the Department’s and MARAD’s response by opening a new LA/Long Beach Office.

 

John Jamian shared several SEA-21 points with the Council:

 

·        The Maritime Administration has to assume a leadership role in improving interagency cooperation.

 

·        The ICMTS does not have an elevated status.  In order to get such a status it was being recommended that it be chaired by the Secretary of Transportation.  The Vice- Chair position is still being discussed.  The ICMTS should be elevated high enough so that if something needs to be addressed, it can respond quickly.

 

·        Marine Economic Development Program (MEDP) – This is a program that leverages small amounts of money into larger amounts to provide economic benefits to public as well as private entities.  It is designed to be of value to the entire maritime transportation system. 

 

SEA-21 will address strengthening the merchant marine and ship building capability by adopting standards that will work internationally, introducing mariners’ exemptions, eliminating the tonnage tax, and inducing the addition of defense features on ships.

 

The White House received SEA-21 language from the Secretary’s office, and has handed it over to the Office of Management and Budget (OMB).  OMB has looked at the language in a somewhat favorable manner.  There are still pieces that have to be put together for Presidential and legislative action.  This is being done now.

 

Mr. Jamian also discussed MARAD’s memorandum of understanding (MOU) on Short Sea Shipping with Canada and Mexico in the context of the Jones Act.  Although the U.S. is willing to discuss and participate in the exchange of information on ports and various technologies, SSS will remain under the Jones Act.

 

Mr. Jamian also noted that there are still some people out there who do not support SSS.  Truckers still don’t see the benefits.  We have to educate them and present them with viable alternatives.  We have to work collaboratively to get SSS up and operating.

 

A question period followed.

 

Mr. Gaughan advised Mr. Jamian that MTSNAC supports his efforts, and if required, could get out a resolution reiterating support for SEA-21.  Mr. Jamian appreciated the gesture, and thought a resolution would be a great idea, but wanted to confer with the Maritime Administrator on its merits.  Mr. Gaughan replied that there was still ample opportunity to put forth the proposal.

 

Council Resolutions

 

Four resolutions were then proposed and passed:

 

1.   Council reiterates support for SEA-21 initiative

 

Whereas, the MTSNAC represents MTS stakeholders that believe they contribute significant sums to the national economy.

 

Whereas, the challenges to MTS infrastructure are making it increasingly difficult to provide these transportation services.

 

Whereas, the MTSNAC has since its inception been studying issues relevant to a proposed SEA-21 proposal that would address MTS infrastructure issues.

 

Whereas, the MTSNAC has submitted several policy papers to the Secretary concerning issues that may be considered in a potential SEA-21 initiative.

 

Whereas, it has come to the attention of the MTSNAC that the Administration may be focusing on MTS issues in the near future.

 

It is resolved, that the MTSNAC reiterate its recommendations for a SEA-21 proposal previously submitted to the Secretary.

 

It is further resolved, that the MTSNAC supports the Secretary’s efforts in advocating for a SEA-21 proposal consistent with the recommendations of the MTSNAC within the Administration.

 

2.  Sub-Committee Realignment – the Council approved reducing the number of sub-committees from nine (Awareness, Human Resources, Infrastructure, Inland Waterways, Safety and Environmental Protection, Information Technology and R & D, Security, Shipyard, and SSS) to four (Waterways, Education, Intermodal Capacity and Operations, Shipbuilding).

 

WATERWAYS

 

EDUCATION

 

INTERMODAL CAPACITY & OPERATIONS

 

SHIPBUILDING

 

Security

Funding

Safety & Environment

Data Collection & Research

Information Technology

 

3.  General Information Project

Whereas, the global economy depends on global trade and global trade is an intermodal success story, it is important that the general public, government officials, and our industry, as well as council members, fully understand how the system works and the challenges it will face.

 

Therefore, the Education Committee is authorized and directed to embark on a project aimed at educating the general public, government officials, and industry about the flow of international commerce through the Marine Transportation System. It is anticipated that once the general information project is complete, it will provide MTSNAC members a tool to analyze challenges to the system and a potential platform for future reports to the Secretary.

4.      Letter to Secretary of DOT requesting all available resources be made available to the

 Governor of California to help overcome congestion at Ports of LA/Long Beach.

Whereas, the freight community has witnessed a unique confluence of events that resulted in a prolonged period of significant freight delays in the ports of Southern California.

 

Whereas, the MTSNAC considers this an important issue that warrants expert study to clearly define root causes in an effort to prevent similar circumstances in the future as well as to fully assess the impact of these circumstances.

 

It is resolved that the MTSNAC respectfully requests that the Secretary offer available resources of the US Department of Transportation to the Governor of California to perform the necessary assessment of the root causes, impact of these freight delays, and identification of potential solutions throughout the system to the problem.

The meeting was formally adjourned at 3:21 p.m., on November 19, 2004.