GOOD DAY, LADIES AND GENTLEMEN, WELCOME TO YOUR ISTWW WEB CONFERENCE. AT THIS TIME WE WILL WE, WE WILL TAKING QUESTIONS AT THE END OF THE CONFERENCE CALL. AT THIS TIME I WILL TURN THE CALL OVER TO YOUR HOST, MR. RANDY BUTLER. SIR, OVER TO YOU. THANK YOU. GOOD AFTERNOON. I WOULD LIKE TO WELCOME YOU TO THE SECOND IFTWG WEBCAST. AS WE INDICATED FROM THE LAST WEBCAST THIS IS A NEW PROCESS THAT WE HAVE IMPLEMENTED TO HOPEFULLY CONTINUE TO INDUSTRY PARTICIPANTS AS WE MOVE THROUGH THE PROCESS FOR PROJECT SELECTION. TODAY WE WILL HAVE THREE PROJECTS THAT WE WILL BE REVIEWED AND THESE ARE BASICALLY FROM THE LAST CONFERENCE WHERE WE HELD I BELIEVE IT WAS SEVEN PROJECTS WE HAD. EIGHT PROJECTS, EXCUSE ME AND WE HAVE NARROWED IT DOWN TO THREE. FOUR OF THE PROJECTS HAVE BEEN ACTUALLY COMBINED INTO ONE PROJECT AND WE WILL HAVE A PRESENTATION ON EACH ONE OF THOSE. FIRST I WOULD LIKE TO TURN IT OVER TO RICH IN WASHINGTON FOR OPENING REMARKS AND THEN WE WILL GO TO OUR CO-CHAIRMAN. ACTUALLY IT IS OUR THIRD WEBCAST. OH, REALLY. GETTING PROGRESS GOING HERE. I WOULD LIKE TO THANK YOU ALL FOR YOUR PARTICIPATION IN THIS. I THINK IT HAS BEEN A GREAT MEANS OF COMMUNICATION PARTICULARLY INTERSECTIONALLY BETWEEN THE TIMES WE ARE ABLE TO GET TOGETHER FACE TO FACE. AND WANT TO THANK RANDY FOR ALL OF HIS WORK IN SHEPHERDING THIS THROUGH AND PAUL BALLOA FOR DOING A LOT OF THE TECHNICAL WORK AND BEING ABLE TO KEEP US ALL ON TRACK AS WELL AS THE PROJECT SPONSORS WHO OBVIOUSLY ANY ONE THAT READS THROUGH THIS CAN TELL THAT, YOU KNOW, A LOT OF TIME, EFFORT AND THOUGHT WENT INTO PUTTING THESE PROJECTS TOGETHER. AS RANDY SAID, WE'LL HAVE ONE MORE WEBCAST AND THEN WE WILL BE HAVING OUR MEETING IN CAG. I BELIEVE -- IN CHICAGO. I BELIEVE THE DATES WERE MAY 10 AND 11 AND THEN WE WILL BE COMING OUT WITH A DRAFT AGENDA AND TIMES AND SO FORTH FOR THAT. AND SHOULD ALSO MENTION, TOO, THAT WE'RE DOING THIS IN CONJUNCTION WITH IANA AND REGARDING REGISTRATION FEES AND SO FORTH WE WILL BE WORKING THAT OUT I.E. IF YOU HAVE AN IANA REGISTRATION FEE YOU WON'T HAVE TO PAY DOUBLE TO COME TO IFTWG. AND WE WILL COME UP WITH MORE OF THE LOGISTICS IN THE FUTURE. RATHER THAN GET INTO THAT LET'S GET RIGHT INTO THE MEAT OF IT AND LET ME TURN IT OVER TO BEN SHELTON, THE PRIVATE SECTOR COCHAIR FOR A FEW OPENING REMARKS AND THEN WE CAN GET ON WITH THE PRESENTATIONS. BEN? YES, THANKS, RICH AND RANDY. JUST WANT TO REALLY KIND OF REITERATE WHAT RICH HAS SAID ABOUT A LOT OF HARD WORK AND A LOT OF COOPERATION BETWEEN THE PUBLIC AND THE PRIVATE SECTOR ON THESE PROJECTS. I FEEL GOOD ABOUT HOW FAR WE HAVE PROGRESSED THESE IN THE LAST FEW MONTHS. I REALLY BELIEVE WE HAVE SOME PROJECTS HERE THAT HAVE A GREAT BENEFIT, YOU KNOW, TO THE TRANSPORTATION INDUSTRY AND PRODUCT AND WE HAVE HAD SOME GOOD INPUT FROM ALL OF THE PARTICIPANTS FROM THE PRIVATE SECTOR AND THE PUBLIC SECTOR AND WE WILL PROGRESS THESE AS WE GO TODAY AND AGAIN JUST THANK EVERYBODY FOR THEIR EFFORT, THEIR HARD WORK AND THEIR TIME. RANDY? THANKS, BEN. AND RICH. THE PROCESS THAT WE'RE GOING TO FOLLOW TODAY IS THAT WE'RE GOING TO ALLOW THE PROJECT TEAMS TO DO A QUICK PRESENTATION OF THEIR PROJECT RUNNING THROUGH BRIEFLY WHAT THEY HAD PREVIOUSLY SHOWN US IN THE LAST WEBCAST BUT CONCENTRATING MORE ON THE REMARKS THAT WE RECEIVED. WE RECEIVED OVER 28 RESPONSES FROM IFTWG MEMBERS ON THE PROJECTS AND WE COMBINED THOSE AND MOST OF YOU HAVE SEEN THE SPREADSHEETS THAT WE SENT OUT SO THE PROJECTS WILL BE REVIEWED AND THEN WE WILL FOCUS ON THE COMMENTS AND THEIR RESPONSES TO THE COMMENTS AND AFTER THE THREE PRESENTATIONS WE WILL OPEN THE LINE UP FOR FUTURE QUESTIONS TO THE PROJECT TEAMS. SO I GUESS WE HAVE ON THE SCREEN RIGHT NOW JORDAN AND DAN MURRAY WITH THE INTERMODAL TECHNOLOGY SCAN SO WE WILL START WITH THAT ONE AND THEN WE'LL GO TO MONTEREY AND THEN TO YOU, BEN. THANKS. EXCELLENT. THIS IS JORDAN SCORE SPEAKING AND IF YOU ALL RECALL I ORIGINALLY PROPOSED A PROJECT ENTITLED THE BROAD BASED TECHNOLOGY SCAN AND I HAVE NARROWED THAT SCOPE DOWN SIGNIFICANTLY WITH THE HELP OF DAN MURRAY TO FOCUS JUST ON THE INTERMODAL CONNECTORS AND I'LL JUMP INTO THE PRESENTATION AND SHOW YOU THAT. OKAY. HERE WE GO. BASICALLY INDUSTRIES ADOPTION OF TECHNOLOGY IS DEPENDENT ON SEVERAL FACTORS AN IDENTIFIED NEED SO KNOWLEDGE THAT SOMETHING NEEDS TO BE DONE AND THEN ONES THAT IS ESTABLISHED LOOKING AT LARGELY WHAT COMPETITORS ARE DOING AND THEN WHETHER THAT TECHNOLOGY IS DEMONSTRATING BENEFICIAL ROI AND WHETHER THERE HAS BEEN ADEQUATE FIELD TESTING OF THE TECHNOLOGY TO DETERMINE THE TRUTH OF THAT POSSIBLE ROI. BUT UNFORTUNATELY A LOT OF THIS HAPPENS MODALLY SO IF YOU ARE LOOKING AT WHAT YOUR COMPETITORS ARE DOING AND YOU ARE IN THE RAIL INDUSTRY YOU'RE PROBABLY GOING TO JUST BE LOOKING AT RAIL. A LOT OF THIS IS DEVELOPED MODALLY AND THERE IS A LARGE INFORMATION GAP BETWEEN THE MODES AND THERE IS IN LACK EVER INDEPENDENT INFORMATION ON TECHNOLOGIES AND USE FOR EACH MODE AND AT THESE MODAL CONNECTORS. SO IT IS RESULTING IN A SITUATION WHERE AT MODAL INTERCHANGES OR INTERFACES THERE IS POSSIBLY NONSTANDARD OR TECHNOLOGIES THAT HAVE DIFFICULTIES COMMUNICATING WITH THEM AND SO THERE IS WASTED TIME OR MONEY SPENT ON NONSCALABLE OR NONVERSATILE TECHNOLOGIES WITHIN EACH MODE AND NEW FUTURE INVESTMENTS MAY LACK INTRAOPERABILITY WITH SUPPLY CHAIN PARTNERS OR REQUIRE RETROENGINEERING TO MAKE THEM MATCH UP. SO THIS PROJECT AS I STATED EACH MODE ALREADY HAS THEIR TECHNOLOGIES, THEY ARE TELL DEVELOPING THEIR STANDARDS WITHIN THEIR MODE BUT ACROSS MODE THERE IS DIFFERENT TECHNOLOGIES AND STANDARDS AND AT POINTS OF MODAL INTERCHANGE THERE IS OFTEN A TECHNOLOGY GAP TO AVOID THIS DISPARATE MODALLY BASED TECHNOLOGY, PROCESSES OR SYSTEMS RESEARCHERS NEEDED TO IDENTIFY INTERMODAL TECHNOLOGY GAPS AND WHAT CAN BE DONE TO BRIDGE THEM SO OUR PROPOSED SOLUTION INVOLVES A REVIEW OF CROWS MODAL INTERCHANGE PRACTICES AND IFPWG. REMEMBER THE REALLY REALLY BIG FLOWCHARTS ILLUSTRATING INFORMATION FLOWS WERE LARGELY LIMITED TO EDI AND THERE IS OTHER POINTS WHERE TECHNOLOGY WOULD INTERFACE BETWEEN DIFFERENT MODES. AND SO THEN FOR EACH MODE THE STATE OF THE ART IN TECHNOLOGY AND IN INFORMATION EXCHANGE WILL BE DOCUMENTED AND THEN LOOKING ACROSS THE MODES UNDERSTANDING WHERE THOSE MODES INTERCHANGE INFORMATION AND IDENTIFYING WHERE THERE IS GAPS BETWEEN THE COMPATIBILITY OF THE TECHNOLOGIES AND PRACTICES AND THEN LOOKING AT RECOMMENDATIONS THAT CAN BE MADE TO PROMOTE STREAMLINING AND INTEROPERABILITY WHILE LOOKING AT THE ROIs TO DEMONSTRATE THE VALUE ADDED AND BEING ABLE TO COMMUNICATE CROSS MODALLY. AND SO THE PROPOSED SOLUTION WOULD HAVE AN APPROACH BASED ON FOUR DIFFERENT ELEMENTS. MODAL ANALYSIS AS I MENTIONED PREVIOUSLY. LOOKING SPECIFICALLY AT THE TECHNOLOGIES AND EMERGING TRENDS WITHIN EACH MODE AND THEN ALSO LOOKING AT GOVERNMENT BECAUSE GOVERNMENT DRIVES STANDARDS IN A LOT OF THE TECHNOLOGY AREAS SO IDENTIFYING THE EMERGING TRENDS AS WELL IN GOVERNMENT AND THEN LOOKING ACROSS THE MODES TO IDENTIFY THE GAPS THROUGH THE GAP ANALYSIS AND ALSO IDENTIFYING POTENTIAL GAPS BASED ON THE EMERGING TRENDS, UNDERSTANDING IF MAYBE THEY'RE HEADED FOR A LARGER CHASM RATHER THAN JUST A GAP AND THEN ALSO DEVELOPING A MATRIX TO REPRESENT ALL OF THESE GAPS WITH THE BUSINESS RELATIONSHIPS IDENTIFYING WHERE THESE MODAL PARTNERS WOULD INDEPENDENT CHANGE INFORMATION AND THEN OVER LAYING TECHNOLOGY TO AS CERTAIN REALLY IS THAT TECHNOLOGY COMPATIBLE AND THEN BASED ON THAT IDENTIFYING THE RECOMMENDATIONS TO MAKE THAT TECHNOLOGY COMPATIBLE OR TO PROMOTE INVESTMENT IN ALTERNATIVE TECHNOLOGIES THAT WILL BE MORE UNIVERSALLY COMPATIBLE. THE PROPOSED LOCATION REALLY TO PERFORM THIS STUDY JUST REQUIRES ACCESS TO RESEARCH MATERIALS AND THE RELEVANT STAKE HOLDER GROUPS BECAUSE A LOT OF THE RESEARCH WOULD BE BASED ON INTERVIEWS AND UNDERSTANDING WHAT TRENDS ARE OCCURRING IN INDUSTRY. AND THEN PARTNERS WITH COME FROM THE IFPWG MEMBERSHIP ACROSS ALL OF THE MODES, TRUCKING, STEAMSHIP, RAILROAD AND THEN ALSO FREIGHT TECHNOLOGY DEVELOPERS TO GET A HANDLE ON THOSE TRENDS. THERE IS NO TIME TABLE AND BUDGET THAT WE HAVE DISCUSSED YET. AND THE BENEFITS WOULD BE A DOCUMENT DESCRIBING THE CURRENT STATE OF TECHNOLOGY IN ALL MODES AND STANDARDS IN THE GOVERNMENT DESCRIBING THE GAPS BETWEEN THE MODES AND LISTING RECOMMENDATIONS TO PROMOTE CROSS MODAL TECHNOLOGY DEVELOPMENT AND INVESTMENT TO ENSURE THAT THE DIFFERENT MODES CAN COMMUNICATE IN THE FUTURE EVEN IF THEY ARE ADOPTING THEIR TECHNOLOGIES IN A MODAL FASHION. IT WILL BENEFIT IFPWG IN DETERMINING TECHNOLOGIES FOR INCLUSION IN FIELD OPERATIONAL TESTS AND BENEFIT INDUSTRY IN PROVIDING A RECOGNIZED SOURCE FOR UNBIASED INFORMATION ON THESE TECHNOLOGIES OR SOLUTIONS THAT CAN HELP THEM INTERCHANGE INFORMATION ACROSS MODES. MAJOR LENGTHS ARE AVAILABLE OF RESOURCES. THE ACCESS TO THE RIGHT PERSON WITHIN EACH MODAL GROUP AND WITHIN EACH COMPANY WITHIN EACH MODAL GROUP KNOWING AND ACCESSING THE PERSON WHO WOULD KNOW EXACTLY WHAT IS GOING ON AND WHAT THE POTENTIAL PROBLEMS OF THE FUTURE MIGHT BE AND THIS PROJECT CAN BE PRETTY EASILY PERFORMED AS A FULL INDEPENDENT STUDY WITH THE FOUR ANALYSIS STEPS OR MAYBE AS THE STEPS OF A SOLUTIONS BASED PROJECT. IF YOU ARE PROPOSING A TECHNOLOGY TO SOLVE AN EXISTING PROBLEM MAKING SURE THAT THAT TECHNOLOGY WILL BE ABLE TO FIT IN WITH THE GIVEN TRENDS ACROSS ALL OF THE MODES. AND THEN LIKE I SAID THE KEY TO THE SUCCESS IS REALLY ACCESS TO THE RESEARCH MATERIALS AND PERSONNEL TO PROVIDE THE INTERVIEWS AND INFORMATION. AND IN ANSWER TO THE REVIEWERS' COMMENTS WHICH IS PROBABLY THE MORE INTERESTING PART OF THIS PRESENTATION IS THAT WE HAVE REALLY FOCUSED THE SCOPE SO RATHER THAN BEING THIS BROAD-BASED TECHNOLOGY SCAN IDEA TO REALLY DISCOVER EVERYTHING THAT IS OUT THERE IT HAS BEEN NARROWED IN SCOPE TO JUST FOCUS ON THE INTERMODAL INTERCHANGE TECHNOLOGIES GAPS AND SOLUTIONS. THERE IS VALUE TO THE INDUSTRY IN THE COMMENTS ON THE ORIGINAL PROJECT IS THERE WAS THIS REAL KIND OF DICHOTOMY BETWEEN WHAT INDUSTRY THOUGHT OF THE PROJECT AND WHAT GOVERNMENT THOUGHT OF THE PROJECT SO THIS REVISED SUGGESTION HAS VALUE TO INDUSTRY IN THAT IT IDENTIFIES TECHNOLOGY EFFICIENCY GAPS AND RECOMMENDS SOLUTIONS TO AVOID INVESTMENT IN THE WRONG TECHNOLOGY IN THE NEW TYRE. AND FUTURE AND IT IS VALUABLE TO GOVERNMENT BECAUSE IT WILL HELP SET THE STAGE FOR STANDARDS DISCUSSIONS. SO THAT IS THE NEW AND IMPROVED TECHNOLOGY SCAN. OKAY. THANK YOU, JORDAN. UM-H'M. NEXT WE'LL GO TO MONTEREY AND ED. ED IS GOING TO BE PRESENTING. I'M SORRY? ED IS GOING TO BE PRESENTING THIS TIME. OKAY. ALL RIGHT. GO AHEAD. ED, ARE YOU THERE? HELLO. HELLO? YEAH, ED. WE HEAR YOU, ED. SORRY, I HAD MY MUTE KEY ON. YOU ARE LIKE BEN, HUH? YEAH, WENT TO THE SAME SCHOOL HE DID. MY NAME IS ED McCLENLAN, I'M WITH HONGEN SHIPPING FOR THOSE THAT DIDN'T PARTICIPATE EARLIER OR WEREN'T PART OF THE SAN ANTONIO MEETING, ONE OF THE THINGS THAT CAME OUT IS ONE OF THE MAJOR CHALLENGES TO THE WHOLE INTERMODAL BUSINESS TODAY IS THE ISSUE OF TERMINAL CAPACITY AND TERMINAL THROUGHPUT AND WHERE IT PARTICULARLY AFFECTS A LOT OF OUR BUSINESSES IS IN THE AREA OF, YOU KNOW, DRIVER DELAYS AS THEY TRY TO GET IN AND OUT OF TERMINALS AND GET CONTAINERS MOUNTED ON TO CHASSIS AND GET BACK OUT AND MAKE DELIVERIES. SO THIS PROJECT REALLY CAME OUT OF THAT PARTICULAR PROBLEM AND IT ALSO -- I'M ON THE INDUSTRY SIDE, I'M WITH SHIPPING AND MONTEREY IS ON THE SOFTWARE AND SIMULATION SIDE AND AS WE GO THROUGH THIS I'LL EXPLAIN THAT, YOU KNOW, ONCE WE STARTED TO LOOK AT WHAT WE COULD DO TO OR PROPOSE FOR TERMINALS OBVIOUSLY WE CAN'T JUST GO IN AND CHANGE THE TERMINALS AND ASK THEM TO CHANGE BASED ON OUR RECOMMENDATIONS. WE NEEDED A TOOL TO HELP TO DO THAT AND THIS IS WHAT THE PROJECT DEVELOPED INTO. THE PROBLEM STATEMENT IS THAT OBVIOUSLY MARINE TERMINALS SUFFER FROM THE INABILITY TO MOVE CONTAINERS OR MOVE DRIVERS INTO AND OUT OF THE TERMINALS ON AN EFFICIENT BASIS AND MOST MARINE TERMINALS ARE OPERATING NOW IN A LARGELY A STACKED ENVIRONMENT. THAT IS, THE CONTAINERS ARE STACKED ON TOP OF EACH OTHER AND AS DRIVERS COME IN TO PICK THEM UP THEY HAVE TO BE -- YOU KNOW, A CRANE LIFTS SOME CONTAINERS THAT ARE IN THE WAY OF THE CONTAINER THAT THE DRIVER WANTS AND MAY HAVE TO LIFT TWO OR THREE OR FOUR CONTAINERS TO GET TO THE ONE THAT THAT PARTICULAR DRIVER WANTS AND BEFORE HE CAN GET THE CONTAINER MOUNTED TO HIS CHASSIS AND THEN GET IN LINE TO GET OUT THE GATE. BECAUSE OF THE SORT OF -- WELL, THE VAST DIFFERENCE IN TIMES ON THE THING, YOU KNOW, A DRIVE DRIVER CAN COME IN AND GET IN AND OUT OF A TERMINAL IN AN HOUR OR IT MAY TAKE SEVERAL HOURS TO ACTUALLY GET THROUGH THE CUES AND THE WAIT LINES AND GET HIS CONTAINER MOUNTED. AS A RESULT, WHAT HAPPENS? WELL, THIS IS A LACK OF CONSISTENCY IN SCHEDULING AND DELIVERY TIMES AND THAT IS BY ALL OF THE PARTICIPANTS SO TRUCKING COMPANIES, THE CUSTOMERS, THE TERMINAL OPERATORS, THERE IS NO CONSISTENCY TO HOW LONG A PARTICULAR CONTAINER IS GOING TO TAKE TO GET DELIVER THE AND THEREFORE HOW MANY DRIVERS ARE REQUIRED TO DELIVER X NUMBER OF CONTAINERS. THERE IS BY DELAYING DRIVERS AND THEIR THROUGHPUT AND THEIR TURN TIMES THROUGH THE TERMINALS THERE IS OBVIOUSLY AN INCREASED DEMAND TO DELIVER THE SAME NUMBER OF BOXES. AND IN ADDITION TO THE ADVERSE EFFECTS ON THE INDUSTRY AND ON DELIVERIES, THERE IS ALSO AN ADVERSE EFFECT ON THE ENVIRONMENT. OBVIOUSLY WITH THE DRIVERS OR HUNDREDS MAYBE OF DRIVERS STANDING IN LINE THERE IS A LOT OF EMISSIONS THAT ARE AFFECTING AIR QUALITY. THERE IS ALSO A LOT OF ISSUES WITH TRAFFIC CONGESTION. I THINK THIS PROJECT IS IMPORTANT AND THIS PROBLEM IS ONE THAT SHOULD DEFINITELY BE DEALT WITH IF WE CAN AS A GROUP BECAUSE OF ALL OF THE DIFFERENT IMPACTS IT HAS AND CERTAINLY ON DELIVERY SCHEDULING AGAIN ON THE DEMAND ON TRUCKING RESOURCES WHICH RIGHT NOW THE INTERMODAL INDUSTRY IS FACING A SEVERE FIBER SHORTAGE AND DRIVER SHORTAGE AND OBVIOUSLY THAT DRIVER SHORTAGE IS EXACERBATED BY LONG TURN TIMES THROUGH TERMINALS AND IF THE DRIVER CAN ONLY MAKE ONE OR TWO DELIVERIES IN A DAY INSTEAD OF THREE OR FOUR IT DEPLETES THE TRUCKING RESOURCES. THERE IS ALSO AN ADVERSE AFFECT AND DRIVER'S SALARIES. MOST ARE OWNER OPERATORS AND THEY ARE PAID BY THE MOVE AND THEREFORE IF THEY MAKE TWO MOVES A DAY THEY GET PAID FOR TWO, IF ANY MAKE THREE OR FOUR ET CETERA THEY GET PAID FOR AS MANY MOVE IS AS THEY MAKE. IF THE DRIVERS THAT ARE STANDING IN LINE WAITING ARE BASICALLY ARE NOT BEING COMPENSATED AND CONSEQUENTLY NOT ONLY ARE THEIR SALARIES DECREASED BUT IT IS ALSO HAS A VERY ADVERSE EFFECT ON DRIVER RETENTION AND A LOT OF DRIVERS ARE LEAVING THE INDUSTRY FOR OTHER INDUSTRIES, OTHER LABOR TYPE INDUSTRIES WHERE THEY CAN GET A MORE CONSISTENT PAY CHECK. THERE IS ENVIRONMENTAL ADVERSE EFFECTS AND SOME OF THOSE ENVIRONMENTAL ADVERSE EFFECTS ARE BEING DEALT WITH BY LEGISLATURES WHO, YOU KNOW, RECOGNIZE THE PROBLEM AND FEEL THE NEED TO STEP IN AND IMPOSE SOME SORT OF SOLUTION ON IT AND THE TROUBLE IS IF THE SOLUTION IS IMPOSED IT IS LESS LIKELY TO BE SOMETHING THE TERMINALS AND TERMINAL OPERATORS CAN WORK WITH AND IN THE STATE OF CALIFORNIA IN PARTICULAR THERE IS A NUMBER OF PENDING LEGISLATIVE BILLS THAT ARE BEING REVIEWED. I'M SURE A LOT OF PEOPLE HEARD ABOUT THE LOWENTHAL BILL BUT THERE ARE HALF A DOZEN OTHER BILLS ALL DIRECTED TOWARD ENVIRONMENTAL ISSUES AND TERMINAL CONGESTION ISSUES. AND THEN AS A RESPONSE TO THE PENDING LEGISLATION THE TERMINAL OPERATORS HAVE COME UP WITH A SYSTEM CALLED PURE PASS WHICH IS SCHEDULED TO GO INTO EFFECT I'M NOT SURE WHAT THE LAST DATE THAT HAS BEEN PROPOSED BUT HE THINK IT IS EITHER MAY 1st OR JUNE 1st AND PURE PASS WILL REQUIRE THAT THE TERMINALS EXTEND THEIR HOURS BUT IN ORDER TO EXTEND THE HOURS THAT WILL BE MADE UP BY THE COST OF A PER CONTAINER CHARGE WHICH WILL BE PASSED ON TO CUSTOMERS. SO AND ANY CONTAINER THAT IS PICKED UP OR DELIVERED TO A TERMINAL WITHIN THE PEAK HOURS WHICH ARE BASICALLY THE DAY HOURS WILL BE ASSESSED AN ADDITIONAL CHARGE. SO, YOU KNOW, THERE IS SOLUTIONS BUT THOSE SOLUTIONS DON'T NECESSARILY FIX THE PROBLEM. THEY JUST IMPOSE PENALTIES MORE OR LESS. AND WITH THE VOLUME INCREASING IN THIS PARTICULAR AREA AND THIS YEAR ALL OF THE STEAMSHIP LINES ARE PREDICTING 10-12 PERCENT INCREASE IN IMPORT TRAFFIC THIS SITUATION IS ONLY GOING TO GET WORSE. AS I STARTED TO SAY BEFORE WHEN WE LOOKED AT THIS PROJECT WE UNDERSTAND THAT FOR US TO MAKE RECOMMENDATIONS TO TERMINALS ABOUT HOW THEY SHOULD CONFIGURE THEIR PARK AND OPERATE THEIR TERMINAL NO TERMINAL OPERATOR IS GOING TO LISTEN TO AN OUTSIDE PARTY UNLESS YOU CAN DEMONSTRATE SOMETHING TO THEM. EITHER A PROVEN SUCCESS AT ANOTHER TERMINAL OR A SOME SORT OF THOLE WOULD DEMONSTRATE IT. THIS PROJECT FOCUSED IN ON DEVELOPING THE SIMULATION TOOL THAT WOULD INCLUDE THE VARIOUS ASPECTS OF A TERMINAL OPERATION INCLUDING PARKING AND TRAFFIC FLOWS, IN AND OUT GAIT INFORMATION, VESSEL SCHEDULES AND VESSEL MANIFEST INFORMATION AND IT WOULD ALSO INCLUDE A SCHEDULING COMPONENT IN WHICH CUSTOMERS WOULD PROVIDE THE DATE AND TIME THAT THEY INTENDED TO PICK UP CONTAINERS AND THAT PARTICULAR PIECE OF INFORMATION IS IMPORTANT BECAUSE THAT WOULD BE USED TO ACTUALLY PLAN THE TERMINAL STOW. AND USE OF A SIMULATION TOOL THEN WOULD BE THE FIRST STEP IN THIS PROJECT BASICALLY WHICH IS THAT IT WOULD DEMONSTRATE THE EFFECTIVE UTILIZATION OF SCHEDULING INFORMATION ON TERMINAL OPERATIONS PLANNING AND COULD DEMONSTRATE THE BENEFITS FROM THAT. SO FOR THE PROJECT ITSELF OBVIOUSLY WE NEED TO IDENTIFY AND WORK WITH STAKE HOLDERS IN THIS PROCESS WHICH WOULD INCLUDE A TERMINAL OPERATOR, A CUSTOMERS A STEAMSHIP LINE AND, YOU KNOW, SO THAT IS -- THAT IS SORT OF STEP ONE. WE HAVE TO WORKING WITH THOSE PARTIES WE WOULD HAVE TO IDENTIFY THE KEY CRITERIA AND THE DECISION-MAKING. CAPTURE DATA RELATED TO ALL OF OF THE VARIOUS ASPECTS. WORK WITH SELECTED CUSTOMERS OR TRUCKERS TO DETERMINE THE SCHEDULING INFORMATION AND WHEN THEY PLAN TO PICK UP CONTAINERS AND TO SOME DEGREE I THINK THE PLANNING THAT IS DONE IN THIS PARTICULAR AREA MAYBE WHAT IS DIFFERENT ABOUT THIS PROJECT IS THAT WE WOULD BE GOING TO CUSTOMERS LOOKING FOR SCHEDULING INFORMATION PRIOR TO THE VESSEL ARRIVAL. A LOT OF CUSTOMERS MAY BE ABLE TO TELL YOU ONCE THEY HAVE BEEN NOTIFIED AND ONCE CUSTOMS HAS CLEARED AND A LOT OF DIFFERENT ASPECTS HAVE BEEN TAKEN CARE OF WHAT NEEDS TO BE, YOU KNOW, WHEN THEY ARE GOING PICK UP CONTAINERS. BUT, NOT TOO MANY OF THEM I THINK ARE DOING THAT IN ADVANCE OF THE ACTUAL DISCHARGE FROM THE VESSEL AND THAT IS THE KEY TIME THAT IT HAS GOT TO BE RECEIVED. WHILE THE ANTICIPATED BENEFITS WOULD BE REDUCED DRIVER WAITING TIMES. THERE WOULD BE GREATER CONSISTENCY IN DELIVERY PROCESS. THERE WOULD BE A REDUCTION IN THE AMOUNT OF TIME IT TAKES TO DELIVER ON A PER UNITE BASIS AND THEREFORE AN INCREASE IN TRUCKING CAPACITY. THERE WOULD BE A REDUCTION IN COSTS THAT ARE ASSOCIATED WITH THE ELONGATED TRUCKING TIMES WHICH SOMETIMES GET INTO DEMERAGE OR AT THE RAIL TERMINALS RAIL STORAGE WHEN DRIVERS CAN'T PICK UP CONTAINERS EVENTUALLY THEY'RE GOING BE CHARGED FOR EACH DAY THAT THEY ARE HELD ON THE TERMINAL PROPERTY AND YOU KNOW, THAT IS AN ASSOCIATED COST THAT IS REALLY AND SOMETIMES RELATED TO THE ABILITY TO DELIVER. WE LOOKED FOR IMPROVED DRIVER QUALITY OF LIFE OUT OF THIS AS WELL AS, YOU KNOW, ENVIRONMENTAL IMPROVEMENTS. AND ALSO WE WOULD LOOK FOR THE PROCESS IMPROVEMENTS TO BE DETERMINED BY STAKE HOLDERS RATHER THAN BY IMPOSED BY OUTSIDE PARTIES. A LOT OF THE COMMENTS THAT WERE MADE, WE'LL GO THROUGH THEM HERE. FIRST OF ALL, THE FIRST STEP IN THIS PROJECT WOULD BE TO CONDUCT A REVIEW OF EXISTING SYSTEMS TO MAKE SURE THAT WE DON'T WANT TO GO OUT AND DEVELOP A SYSTEM WHEN THERE IS ALREADY SYSTEMS IN PLACE THAT ARE DOING THIS OR COMPONENTS OF SYSTEMS THAT MAY BE ABLE TO DO THIS. AND, IN FACT, AS SORT OF AN 11th HOUR DISCOVERY I GUESS YOU COULD SAY I WAS TALKING YESTERDAY WITH ROSS GAVER AND DON ZECH FROM EMBARCADERO SYSTEMS. AND DON IS PARTICIPATING IN THIS CALL TODAY. EMBARCADERO SYSTEMS IS AN IT SUBSIDIARY OF MARINE TERMINAL CORPORATION WHICH IS ONE OF THE LARGEST IF NOT THE LARGEST TERMINAL OPERATORS IN UNITED STATES AND EMBARCADERO SYSTEMS DOES HAVE SOME OF THESE COMPONENTS INCLUDING SOME SIMULATION CAPABILITY AND SO BEFORE WE ADVANCE THIS PROJECT ANY FURTHER OUR FIRST STEP WILL BE TO LOOK AND SEE WHAT THEY HAVE AND IF WE CAN CONFIGURE TO MATCH WHAT WE NEED. THE ISSUE OF WHETHER THIS IS AN INDIVIDUAL PROJECT OR IT APPLIES TO AN INDIVIDUAL TERMINAL, I DON'T THINK SO. I MEAN I THINK IT'S LESS A PROBLEM THAT IS COMMON TO ALL MAJOR MARINE TERMINALS IN THE UNITED STATES BOTH ON THE WEST COAST AND ON THE EAST COAST. EVEN GOES FURTHER AS TO THE RAIL TERMINALS, TOO, ON THAT. AND THAT IS THE NEXT STEP, THE NEXT POINT IS THAT WE DID TO TRY TO NARROW THIS PROJECT DOWN A LITTLE BIT. WE DID WANT TO FOCUS ON MARINE TERMINALS BUT IT HAS THE ABILITY TO RAIL TERMINALS AND ESPECIALLY I THINK AS RAIL TERMINALS WHICH UP UNTIL NOW HAVE LARGELY BEEN OPERATING IN THE WHEELED ENVIRONMENT ARE MORE AND MORE GOING TO A STACK ENVIRONMENT DUE TO SPACE CONSTRAINTS AND TERMINAL CAPACITY CONSTRAINTS.