The Port Metro Vancouver Interface

1. A Truck Carriers Perspective
Presented by:
David & Gordon Payne
21 October 2014, Calgary
Harbour Link Container Services Inc.
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2. About Harbour Link
Provides container drayage and off-dock container services
Operates a fleet of more than 100 trucks and over 350 chassis
Performs LOCAL drayage services
Provides LONG Haul drayage services
Uses the latest computer and communication technology
Recognized by CIFFA “TRUCK CARRIER OF THE YEAR” “BEST
LONG HAUL CARRIER” and “BEST LOCAL CARRIER”
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3. HLCSI’s Computer Technology
Integrates job order, dispatch, navigation, truck chassis and
container tracking, messaging, wage capture and billing.
Uses geo fencing to capture cycle times at all port and rail facilities
Uses bar coding technology to track the deployment of the
companies chassis fleet of over 350 chassis
Drivers use PDA’s (personal data assistant devices):
To receive dispatch assignments
To relay messages pertaining to each assignment
To obtain electronic signatures for the receipt of containers by
customers.
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4. GPS Tracking Process
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5. PDA & Bar Codes
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6. Geo Fencing
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7. Completion of Job
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8. The “PLUS” Factor
The systems enable Harbour Link to:
Monitor the actual location and progress of every truck
Track the transit time of each container pick-up/delivery at the
Port’s container terminals.
Optimize dispatch, driver communication, truck turn-around,
drayage security, driver safety and the two way movement of
containers and trucks.
The systems were developed jointly by Harbour Link and the UK
supplier to fit the unique requirements of the North American
drayage sector
The system is presently exclusive to Harbour Link
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9. Topics to be discussed
The Truckers Work stoppage
The 14 Point Solution
Has the Gateway improved
Reservations
Regulation or Free Market
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10. Truckers Work Stoppage
The work stoppage by “owner operators” occurred due to
growing frustration over the worsening wait and turn
times at the Port to deliver / pick-up containers.
This action was preceded by a one day trucker stoppage in
the fall of 2013
and:
Four years of effort by the MVCDA and BCTA to engage in
meaningful dialogue with PMV and the Terminal Operators
to achieve a solution to reduce port wait time and improve
truck turn times within the terminals
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11. The Morphing Impact
It was no surprise when the Owner Operators took the ultimate step
to park their trucks until an action plan was put in place to correct
the port waiting and turn time problem
The shock factor was the implementation of the 14 Point Action
Plan by Government without any prior consultation with the
drayage sector/BCTA, which included:
Cost escalations to the Vince Ready rates and the doubling of the fuel
surcharge (FSC)
WHEN:
The cause of the work stoppage by the truckers (Owner Operators) had
nothing to do with the Vince Ready rate or FSC’s and was focused
strictly on the demand to resolve the unacceptable truck turn-times
being encountered by them at the Port
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12. The Return to Work Plan
Included:
A 12% increase to the port drayage cost for containers routed via
the Vancouver Gateway
The payment of a FSC to Owner Operators substantially above the
cost differential between the base cost of fuel included in the Vince
Ready rates and the actual cost of fuel paid by Owner Operators.
Resulted in a double payment to Owner Operators because the FSC
continues to be based on the original (2005)Vince Ready base fuel cost
of $1.05 per litre.
The base cost of fuel should have been increased to include the 12%
increase to the Vince Ready rates made by Government on 3rd
April, i.e.
it should now be $1.176 per litre.
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13. Truck turn times?
Has truck turn time improved ? YES
It now takes less than one hour to complete a single container
transaction at the Port
How has this been achieved:
Terminal Operators have extended gate openings to two shifts
daily.
The terminal operators made this change to mitigate the
requirements of the 14 Point Plan which requires them to pay
waiting time when truck turn time is in excess of 90 minutes per
truck transit
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14. Average Turn Times Per Container
Truck Turn Times Per Container
Week From To Centerm Vanterm Deltaport Average
27 30/06/2014 06/07/2014 43 48 53 48
28 07/07/2014 13/07/2014 43 45 47 45
29 14/07/2014 20/07/2014 44 53 44 47
30 21/07/2014 27/07/2014 35 40 44 40
31 28/07/2014 03/08/2014 39 41 34 38
32 04/08/2014 10/08/2014 31 44 44 40
33 11/08/2014 17/08/2014 47 51 46 48
34 18/08/2014 24/08/2014 53 48 42 48
35 25/08/2014 31/08/2014 48 49 50 49
36 01/09/2014 07/09/2014 51 46 44 47
37 08/09/2014 14/09/2014 43 56 45 48
38 15/09/2014 21/09/2014 41 56 45 47
39 22/09/2014 28/09/2014 37 54 48 46
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15. Impact on Port Interface
Terminal Operators have adopted a $50 reservation fee for all
dayshift pickups and deliveries and a $50 fee for all missed
reservations
The imposition of the reservation fee by the terminal
operators is to raise sufficient funds to pay for the cost to man
gate operations for two full shifts.
The reservation fee for dayshift transactions has resulted in
customers wanting truck carriers to move their containers
only during the evening shift
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16. Impact on Drayage Carriers
To be eligible for the payment of wait time by terminal
operators, wait time reimbursement is limited to performing
single container moves only.
When a dray carrier requests a double transaction, all rights
for reimbursement of waiting time must be waved by the
drayage carrier.
The result:
Today, about 10% of all terminal transits by trucks involves
achieving the two way movement of containers
The Impact:
More truck power is now required to move the same volume of
container traffic
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17. Impact on Availability of Reservations
Terminal operators have reduced the quantity of reservations
available per hour
Terminal Gates may be open for two shifts but have added
only approx. 20% more reservations to the system
Obtaining reservations requires a minimum of 3 days forward
planning
On most occasions, insufficient reservations are available to
fulfill customer requirements
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18. Regulation or Free Market
The PROBLEM
The drayage sector is fragmented and functions on the principle of a race to the bottom
through the bad behavior of many FSO’s to adopt ignominious business practices.
The CAUSE
The BAR of ENTRY by PMV to qualify to be an FSO is set far to low
The drayage sector has mushroomed from about 60 FSO’s to 180+ entities
The FIX
Raise the BAR of ENTRY
 Establish Pre Qualification criteria to be become an FSO
 Entry requirements for an FSO should include a retributive Performance Bond
 Force FSO’s to establish an Industry Association with enforcement powers to ensure
compliance with the standards of conduct set forth in established bylaws
 Until this is done REGULATION of the Drayage sector is essential
In 2010 HLCSI lead an initiative to establish an industry organization called the Metro
Vancouver Container Drayage Association. The initiative failed due to the unwillingness of
many FSO’s to participate
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19. A Bum Rap
The Vancouver Gateway stands out to be a pro-active leader in port
service innovation aimed to enhance supply chain performance.
Vancouver continues to outpace most top tier Ports in North American for
performance.
Like all ports, it is affected by dislocations to its supply chain corridors.
To mitigate congestion and dislocation issues it must establish Container
Nodes along the Fraser River linked by barge and short sea shipping.
To help de-clog the port after the truckers work stoppage, HLCSI
successfully opened a temporary node at the Fraser Wharves site.
The Port’s success requires all supply chain members to collectively work
together to find solutions that enhance the supply chain for the mutual
benefit of all stakeholders.
We must stop operating in separate silos when we are all inter-reliant and
dependent on each other for the Port to be successful.
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20. THANK YOU
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