Extended gate operations at the ports of Los Angeles and Long Beach: a preliminary assessment

Abstract

The paper examines the implementation of extended gate operations at the Los Angeles/Long Beach ports. The programme, known as PierPASS, assesses a Traffic Mitigation Fee (TMF) on eligible containers moved into and out of the ports during peak hours. The fees are intended to defray the costs of extended operations at the ports. In this paper we focus on the implementation of the programme and its outcomes over a year of operation. We discuss the motivations and actions of key stakeholders and place our examination in the institutional framework of the goods movement supply chain. Our results are based primarily on a series of extended interviews with stakeholders, together with data provided by PierPASS and by three drayage trucker surveys. We find that the PierPASS programme was a response by terminal operators and steamship companies to growing political pressure. Given their market power within the supply chain, they were able to create a programme that protected their interests yet responded to political imperative. The PierPASS programme has been a success: the peak fee has shifted a significant share of cargo to evenings and weekends, as intended. Winners and losers of PierPASS reflect the larger structure of the international supply chain.