Good afternoon. I would like to thank the committee for the invitation to appear today.
As you know, I am Louise Yako. I am the president and chief executive officer of the British Columbia Trucking Association. Our association represents about 1,200 fleets offering a variety of freight transportation services.
The Trucking Association does not have any particular expertise to provide on trade with Japan; however, our association can comment on the ability of the trucking companies transporting containers, also known as drayage carriers, to accommodate increased container volume through the Asia-Pacific gateway.
About 50% of container movement in the Vancouver region is by truck. Our association represents about 25% of the drayage carriers that operate about 50% of the trucks licensed by Port Metro Vancouver. This licence allows drayage carriers to operate to and from the four marine container terminals located in the Vancouver area.
Today's system faces a number of challenges. First, three of the four marine container terminals are at, or near, maximum capacity for daytime truck reservations. When maximum capacity is approached, the amount of time a truck spends at a terminal is less predictable and often longer. This is a problem because many truck operators are paid on a per-trip basis. Longer waits for service means fewer trips, which translates into lower compensation. Poor compensation has historically led to service disruptions in the Vancouver region.
To address increasing demand for service, some marine container terminals are now providing intermittent nighttime service for trucks. However, night gates are not well utilized because there is no coordination among the marine container terminals or with off-dock facilities. Off-dock facilities load export containers, de-stuff and distribute imported goods, and store empty containers. If these other facilities aren't open, trucks can't maximize their productivity, so are less likely to work at night.
There's no direct business relationship between marine container terminal operators and drayage carriers. Terminals contract with shipping lines, while cargo owners or their agents generally contract with drayage carriers. Where drayage and terminal interest converge is their mutual desire to move containers on and off the terminal as quickly as possible, but when terminal resources or space is limited, trucks will always come last. From a terminal perspective, that's a rational decision. From a supply chain perspective, it may not be.
Drayage trucks are not as efficient as they can or should be because current terminal reservation systems inhibit the scheduling of what we call double-ended moves. This means that many trucks either arrive or leave terminals empty. This is an entirely fixable inefficiency that will help the supply chain handle increasing container volumes.
Unnecessary truck movements are upsetting to communities and result in other unintended negative consequences, such as increased emissions. Community support and understanding is fundamental to growing the gateway. Improving truck efficiency will help to address community concerns.
We've ended up with today's system because historically, each participant in the gateway has made independent decisions without considering the impact of these decisions on the entire supply chain.
The good news is there is recognition that the current practices are no longer adequate as we approach maximum capacity. Our system will only be as efficient as its weakest link. The Container Drayage Leadership Team grew out of this recognition. The team is composed of senior executives from the three terminal operators, the Chamber of Shipping of British Columbia, the Western Canadian Shippers' Coalition, Port Metro Vancouver, and the Trucking Association.
Our mandate is to identify, communicate, and implement system-wide efficiencies as they affect trucks, while consulting with affected constituents. If this voluntary process is successful, servicing the additional volume created by an economic partnership with Japan is entirely achievable and would be welcomed. If it is not, we may need to consider other measures to achieve a more efficient Asia-Pacific gateway to accommodate increasing trade volumes.