PierPass value justifies fee hike


Bruce Wargo president, PierPass, Long Beach, Ca.

Over the past few weeks, American Shipper and others have focused attention on the $10-per-TEU increase in the Traffic Mitigation Fee, which supports the PierPass OffPeak program's efforts to minimize daytime traffic congestion and increase cargo movement at the ports of Long Beach and Los Angeles.

   While rate increases are never desirable, it's important to recognize the value gained through adequate funding of the PierPass OffPeak Program.
   Recall six years ago, before PierPass existed to address daytime truck and cargo congestion at San Pedro Bay. Heavy traffic plagued freeways, neighboring communities and roads leading into the ports. Long lines of trucks, cargo sitting for extended periods, and ship delays were commonplace.
   Fortunately, we've come a long way since then. Over the past six years, PierPass OffPeak gates have grown to handle about 55 percent of container traffic at the ports of Los Angeles and Long Beach, have accommodated close to 20 million truck transactions during OffPeak shifts, and eased congestion in city streets and nearby freeways during normal business hours while cargo volumes have grown more than 17 percent.
   So, while coverage and dialog focusing on fee adjustments are essential, it's also important to keep in mind the vital services and support for efficient cargo movement the TMF ' as an industry-driven solution that doesn't rely on taxpayer support ' helps to sustain.

Bruce Wargo
president, PierPass,
Long Beach

FreightWaves Staff