BCG Clean Truck Program Analysis - The Port of Los Angeles

More documents

Recommendations

Info

Analytical Approach ...A detailed understanding of trucking supply... Illustrative trucking supply stack for current market segments to participate in SPB drayage Effective drayage price to BCO ($/hr) 120 100 80 Current drayage trucking demand 1 ~26 M hrs Note 1 : Private fleets and infrequent IOOs satisfy ~20% of BCOs’ drayage drayage demand separate decision economics (~6M hrs not shown) 60 40 20 0 Pre- 1989 trucks Current weighted average drayage price ~$43/hr 1989- 1993 1994- 1995 1996- 2003 ~$11.60 3 Current average drayage effective wage rate 2004- Pre- 1989 trucks 1989- 1993 1994- 1995 1996- 2003 0 10 20 30 40 50 60 70 SPB ports drayage Truck segments: Frequent/semi-freq Drayage Freq/semi-freq: Non-drayage LA IOOs IE IOOs LA employee driven IE employee driven supply (M hrs) LA IOOs IE IOOs LA region employee driven 4 Blend of heavy trucks and tractor trailers 3 IE Nationals employee driven 4 2006 2 ~25% Trucks ~16K ~16K ~8K ~11K ~32K ~23K % total utilization time 3 ~70% Supply hours ~25.6 M hrs (1) Private fleets and infrequent IOOs account for ~6M hrs demand. (2) 2004-2006 supply to small to be seen on chart (3) Median income divided by typical hours worked per year. Estimates based on reports and conversations with John Husing and Tom Brightbill (4) Includes extra costs associated with employment including benefits and hour restrictions/overtime - Husing study Sources: CTP Technical report, Husing SPBP CAAP Economic Analysis Proposed CTP, CGR SPBP Driver Survey, Tom Brightbill, CRT and LMC interviews, BCG economic model BCG Report 3-13-08 final.ppt ~30% ~11.3 M hrs ~4.9 M hrs ~10% ~2.8 M hrs ~25% ~19.9 M hrs ~10% ~5.8 M hrs 41
Analytical Approach ... And the market for truck drivers Illustrative trucker supply stack shows potential drivers and their required rates for drayage labor Adjusted rates ($/hr) 25 Current drayage driver time demand 1 ~26 M hrs Nationals $24.78 5 20 15 10 Current weighted average drayage effective wage rate ~$11.60/hr Blend of heavy trucks and tractor trailers 3 5 Pre- 1989 trucks 1989- 1993 1994- 1995 1996- 2003 2004- 1989- 1993 1996- 2003 Pre- 1994- 1989 IOOs 1995 trucks IE IOOs LA regional employee driven Construction/ substitutes IE employee driven 0 Labor segments: 0 20 40 60 160 Frequent/semi-freq Drayage Freq/semi-freq: Non-drayage LA IOOs IE IOOs LA regional employee driven Construction and other substitutes Drivers: 3 ~16K ~16K ~8K ~11K ~32K >150K 4 ~23K SPB ports drayage supply IE employee (M hrs) driven Rate to attract $11.60 $15.32 $15.32 $20.08 $21.27 $21.97 $22.67 to drayage: 3 (1) Private fleets and infrequent IOOs account for ~6M hrs demand. (2) 2004-2006 supply to small to be seen on chart (3) Estimates based on reports and conversations with John Husing and Tom Brightbill and scaled by utilization % to arrive at supply hours (4) 2006 CA EDD data – for Los Angeles County construction (5) Average wage rate for UPS and Yellow trucking Sources: CTP Technical report, Husing SPBP CAAP Economic Analysis Proposed CTP, CGR SPBP Driver Survey, Tom Brightbill, CRT and LMC interviews, BCG economic model BCG Report 3-13-08 final.ppt 42
Page 1 and 2: San Pedro Bay Ports Clean Truck Pro
Page 3 and 4: Agenda Executive summary CTP object
Page 5 and 6: Executive summary (I) Context and o
Page 7 and 8: Executive summary (II) Approach and
Page 9 and 10: Executive summary (III) Option I (b
Page 11 and 12: Our overall conclusion: Option III
Page 13 and 14: Agenda CTP objectives BCG Report 3-
Page 15 and 16: CTP objectives The Port’s objecti
Page 17 and 18: Pre-CTP Today: Current state of SPB
Page 19 and 20: SPB has large fluctuations in goods
Page 21 and 22: Even for comparable hauls, non-dray
Page 23 and 24: As a consequence, drayage incomes b
Page 25 and 26: ... And the option of doing so as a
Page 27 and 28: CTP components There are five inter
Page 29 and 30: 2 CTP components Truck ban Definiti
Page 31 and 32: 4 CTP components Concession Definit
Page 33 and 34: Our evaluation carefully considered
Page 35 and 36: If CTP levers not well-defined, man
Page 37 and 38: Analytical approach In evaluating t
Page 39 and 40: Analytical approach We built a rich
Page 41: Analytical approach Our model is gr
Page 45 and 46: Agenda CTP operating model options
Page 47 and 48: Option I Option I: “Basic model
Page 49 and 50: Option I Option I evaluation: Port
Page 51 and 52: Option I Option I: Analytical evalu
Page 53 and 54: Our rationale in Option II is to en
Page 55 and 56: Option II: Key adjustments to Optio
Page 57 and 58: One specific element of Options II
Page 59 and 60: Option II Option II evaluation: Por
Page 61 and 62: Option II Option II: Analytical eva
Page 63 and 64: Option II However, Option II carrie
Page 65 and 66: Option III ... Option III builds on
Page 67 and 68: Option C - Why link employees to LM
Page 69 and 70: Option III Option III: “Enhanced
Page 71 and 72: Option III Option III evaluation: P
Page 73 and 74: Option III Option III: Analytical e
Page 75 and 76: Key risk in option III is of BCO di
Page 77 and 78: Agenda Comparison of options and co
Page 79 and 80: Our overall conclusion: Option III
Page 81: Conclusions 1. Option I will not cr

BCG Clean Truck Program Analysis - The Port of Los Angeles

Create successful ePaper yourself

Delete template?

Save as template?