Traffic Building

Nighttime becomes right time to ease traffic out of ports

After years of resistance, terminal operators at the ports of Los Angeles and Long Beach are preparing to shift a significant portion of their cargo loading and offloading to nighttime hours.

The effort, which could begin in the fall, is aimed at reducing traffic congestion on the Long Beach (710) and Harbor (110) freeways and roads near the port areas.

"We're going to open the spigot," said Jon Hemingway, chief executive of Seattle-based SSA Marine Inc., which operates terminals at both local ports. "We want to work with the communities to get as much cargo as possible moved at night."

Terminal operators are seeking to shift as much as 50 percent of the hauling of cargo at the ports to the evening or overnight shifts. By coming up with their own plan, they will avoid the mandatory surcharges on daytime cargo that would come with passage of pending legislation in Sacramento.

Politicians and neighborhood residents have long complained about port traffic and emissions, but the ports have been slow to respond. Part of the reason is that the various constituencies--importers, the steamship lines that run the ports and trucking companies--could not agree on who would bear the costs of the shift.

However, political pressure on these groups has been building. Last year, Assemblyman Alan Lowenthal, D-Long Beach, was successful in pushing through legislation imposing a fee of $250 per truck on terminals that forced the trucks to idle outside their gates for more than a half" hour. The bill spurred terminal operators to in]prove scheduling to avoid the fines.

This time, the threat hanging over the ports is another Lowenthal bill, which passed through the Assembly on May 25.

The legislation, which would impose penalties on daytime cargo hauling, is scheduled for an Aug. 2 hearing before the Senate Appropriations Committee.

Lowenthal has promised to withdraw the bill if the terminal operators have their own program established by then. (The bill would require passage by the full state Senate and signature by Gov. Arnold Schwarzenegger to become law.)

"If the industry does not do its own plan, we would send the bill to the governor and ask him to sign it," said Josh Tooker, legislative director for Lowenthal. "Either through the bill or through their plan, the industry will utilize off-peak gates as soon as possible."

Gelling permission

Because of antitrust regulations, terminal operators need permission from federal regulators before getting together to discuss specifics of an oft-peak loading plan.

Last month, the terminal operators working under the name West Coast Terminal Operators Discussion Agreement submitted a proposal to the Federal Maritime Commission seeking permission for an antitrust exemption to move forward.

The commission was expected to approve the request late last week or early this week. After that, terminal operators will be allowed to set collective gate hours beyond the normal 8 a.m. to 5 p.m. shift and establish cargo surcharges--to be paid by importers--to offset the additional costs of weekend and nighttime service.

Tentative plans call for the program to be implemented in phases, based on the amount of usage, with the ports' 13 containers terminals initially opening one weekend day, then two, before extending service to weekday nights.

That would also give truckers and longshoremen time to adapt to the new system.

The yet-to-be-determined surcharge compensates terminal operators for the higher cost of operating during off-peak hours, while importers moving cargo at night would be given at least a partial reimbursement of the additional fees.

Adding five weekly shifts to the ports' 13 terminals would increase operating costs by a combined $150 million annually, Hemingway said. It costs SSA Marine $20,000 to $65,000 per shift at its two Southern California terminals, he added.

The program would have a three-year "sunset provision" allowing terminal operators to evaluate its progress and decide whether to continue.

Reducing traffic

Currently, 90 percent to 95 percent of the 12 million TEUs (20-foot equivalent units) the ports handle each year are moved during the 8 a.m. to 5 p.m. shift. About two thirds of that cargo is transported by truckers, who make 35,000 daily trips in and out of the ports.

"Our freeways are (already) at capacity," said Mike DiBernardo, marketing manager at the L.A. port. "If you drive it, you know firsthand."

He said that issues to be resolved include setting surcharge fees, establishing how they would be collected and by whom.

Bryan VanBrakle, a senior staff member of the commission, declined to discuss the proposal in detail. "'The commission is still reviewing this matter," he said "We've been busy looking at it since the day it was filed."

So far, truckers and importers seem to be in general agreement with moving forward.

However, the California Trucking Association expressed concerns in a June 28 letter that its members might be shouldered with the burden of collecting or paying the surcharges before they pick up their containers.