BCG Clean Truck Program Analysis - The Port of Los Angeles
BCG Clean Truck Program Analysis - The Port of Los Angeles
BCG Clean Truck Program Analysis - The Port of Los Angeles
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Option I<br />
Option I evaluation: Safety and security<br />
Benefit/<br />
risk<br />
-<br />
-<br />
-<br />
What we think will happen...<br />
Drayage market will continue to be very<br />
fragmented with marginal economics driving<br />
returns for both LMCs and truckers<br />
Risk that local community will continue to bear the<br />
negative externalities <strong>of</strong> a fragmented IOO pool<br />
(e.g., neighborhood parking)<br />
Risk that enforcement <strong>of</strong> safety/security across<br />
many IOOs/LMCs continues to be challenging<br />
..and why<br />
Concession requirements for LMCs are minimal<br />
and IOOs are enabled to get new trucks but with<br />
limited ability/motivations to maintain and replace<br />
them<br />
Very fragmented market with marginal economics<br />
results in similar community externalities to current<br />
market; LMCs have no incentives to internalize<br />
costs<br />
No reciprocal obligations: LMCs not accountable<br />
for safety/security; IOOs incentivized to cut corners<br />
<strong>BCG</strong> Report 3-13-08 final.ppt<br />
49
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