FMC request for more information may delay OakPass program

The Federal Maritime Commission has asked OAKMTOA to provide additional information about their plan to fund weekend gates at the Port of Oakland with a fee on cargo moving through their facilities Monday through Friday.    The Federal Maritime Commission has voted unanimously to request additional information from the Oakland Marine Terminal Operators Agreement (OAKMTOA) about their plan to have terminals in the port operate on Saturdays and fund the extended hours by charging a fee on cargo moving through their facilities Monday through Friday.
   Somewhat ironically, the FMC’s request will delay start of the program, which is designed to reduce and eventually prevent vessel and drayage delays at the Port of Oakland.
   OAKMTOA explains on its website that the so-called “OakPass” program would charge an “extended gate fee” (EGF) of $17 on 20-foot containers and $34 on other size “loaded import and export containers during Peak hours, defined as Monday through Friday, 7:00 a.m. through 6:00 p.m. No EGF will be assessed during OffPeak hours (Saturdays 7:00 a.m. through 6:00 p.m.).
   “Empty containers and transshipment cargo will be exempt from the EGF,” the group added.
   When the program was announced, the FMC said it “has concerns about the program being proposed based on an initial review and comments received from various stakeholders who would be impacted by the program. Stakeholders have expressed their concern that insufficient details about how the system will work have been made available to them. The Commission believes additional transparency by the parties will greatly aid in its analysis of this important issue. After the agreement parties have fully responded to the information request, a new 45-day review period will begin.”
   “Commission staff will continue their economic review to determine whether the proposed amendment is likely, by a reduction in competition, to produce an unreasonable reduction in transportation service or an unreasonable increase in transportation cost,” the agency added in a recent press release. “Notice that the Commission has issued this request for additional information will be published in the Federal Register next week and will announce a 15-day public comment period for interested parties to comment on the proposed agreement.”
   FMC Commissioner William Doyle said in a statement, “I support efforts to reduce seaport congestion at our nation’s gateways. I believe marine terminal operations during off-peak hours is necessary at some ports.
   “Operating terminals outside of normal working hours adds costs to the shipping public and the supply chain. I have taken into consideration the many concerns raised by the shipping public in their comments filed with the Commission. I have also met with and spoken with the OAKMTOA parties over the past several weeks regarding the concerns that have been raised.
   “To this end, I provided questions that have been incorporated into the request for additional information. I encourage the OAKMTOA parties to meet and discuss their proposed OAK PASS program with representatives of the import, export and trucking communities.”
   John Cushing, the president of OakPass, said of the request, “It is not unusual for the FMC to request additional information. Once we receive the questions, we will respond to them fully.”
   Cushing also noted that providing the additional information to the FMC for review, “will add some time to the start date” for the OakPass program.
   When the plan for the OakPass program was first announced last month, some shipper groups questioned whether a fee should be charged to fund Saturday gates and complained about a lack of transparency in a similar program, PierPass, which is used to fund night and weekend gates in the Ports of Los Angeles and Long Beach.