Ocean cargo: Port of Los Angeles Harbor Commission may pull plug on PierPass

Patrick Burnson, Executive Editor -- Logistics Management, 4/23/2008

SAN FRANCISCO—As most of the talk at NavisWorld 08 has been about technology-enhanced seaport throughput, members of the The Los Angeles Harbor Commission have been discussing how to end PierPass, one of the most innovative high tech terminal models.

“Ever since PierPass was put in place in 2005, traffic congestion on the 710 has decreased dramatically, said Joseph Palazzolo, president, Palazzolo & Associates Inc., a maritime consultancy, in San Francisco. “Now the commission behaves as the issue is over, and that the highways will remain clear. They are dreaming.”

Palazzolo, a maritime industry consultant for PierPass and one of the key exhibitors at NavisWorld, said that the move is especially disturbing since all indications point toward more growth at the Port of LA/Long Beach in the future.”

“And you can’t suggest that this be put in a ‘mothball fleet,’” he said. “This is technology. It has be rooted in the system and constantly fine-tuned to handle the inevitability of more motor carrier congestion.”

But harbor commissioners don’t see it that way, stating at their meeting late last week that the “night gate” program that encourages truckers to call terminals at off-peak hours should be dismantled.

With Commissioner Joe Radisich leading the charge, port staff is being asked to report back to the commission in May on whether the PierPass OffPeak program is still viable.

 According to analysts, the commissioner’s rationale may be that container taxes soon to be imposed on shippers will pay for “greener” trucks in the future. Currently, the port collects a $50-per-TEU (Twenty-foot equivalent units) fee on daytime container moves to support the labor costs of keeping gates open at night and on weekends.

“The commission has been pointing to numbers suggesting less cargo is coming through the port,” said Palazzolo, “but that’s short-term thinking. When throughput ramps up again, the community is going to be faced with the same pollution problems and concerns.”

He added that the threat of community-based lawsuits was also a risk.