PierPASS Inc. announced today that OffPeak, the new program to reduce congestion at the Port of Los Angeles and Port of Long Beach, will begin on Saturday, July 23, 2005. PierPASS also confirmed OffPeak’s night and weekend hours of operation and announced an accelerated rollout of the program, establishing five full-service shifts during the first week of operation.

PierPASS is a not-for-profit company created by marine terminal operators to reduce congestion and improve air quality in and around the Los Angeles and Long Beach ports. Marine terminal operators at the Los Angeles and Long Beach ports created PierPASS in 2004 in response to community and industry requests to address congestion and air quality issues in and around the ports. By providing a financial incentive for cargo operations on nights and weekends, OffPeak aims to reduce daytime truck trips and improve air quality.

The OffPeak shifts will be Monday through Thursday from 6:00 p.m. to 3:00 a.m. and Saturday from 8:00 a.m. to 6:00 p.m. The first OffPeak shift will be Saturday, July 23. Beginning on Monday, July 25, PierPASS will assess a “Traffic Mitigation Fee” on all loaded containers entering or exiting marine terminal gates by road during peak daytime hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.). The fee has been set at $40 per TEU (20-foot equivalent unit), or $80 for a 40-foot container.

PierPASS had initially planned for a ramp-up period, with off-peak shifts added gradually. However, the terminal operators have determined that launching all shifts during the first week will present fewer logistical challenges than a phased-in launch. The ramp-up period has now been eliminated; all 12 international container terminals at the two ports will now launch five full OffPeak shifts starting July 23.

The Traffic Mitigation Fee payments collected, minus PierPASS overhead and refunds for cargo moving during OffPeak hours, will be allocated by PierPASS to the marine terminals to help offset their incremental costs to operate the extra gates. The estimated annual cost to the terminal operators of operating these extra gates is $156 million to $160 million. PierPASS is a not-for-profit company.

PierPASS will not assess a fee for empty containers and chassis, domestic containers, or transshipment to other ports. Nor will it assess a fee for intermodal containers that depart or arrive via the Alameda Corridor for import or export, or that pay an ACTA fee. The beneficial cargo owners (shippers, consignees, or their agents) are responsible for payment of the fee. The trucking community and water carriers are not responsible for the payment.

After July 23, the Traffic Mitigation Fee will be required for cargo movement through the ports during peak hours. Only registered users will be able to pay this fee. Users of the ports (such as cargo owners, brokers, truckers and logistics companies) can register for OffPeak through the registration site at www.pierpass-tmf.org

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