Defense Transportation Journal

National Maritime Day Joint Ceremony | Collaboration Improves Warfighter Sustainment

www.ndtahq.com

Passenger Travel the Domino Effect

Fo 63 r rd u m Ann & Ex u p al o P ND r ev TA ie w

August 2009

Who moves more families — civilian and military — than any other van line?

UNITED VAN LINES...

Providing quality moves around the world.

Talking about quality is one thing; delivering it is another. We’ve worked hard for more than 50 years to earn our quality reputation...and to gain the trust of America. But we’re still not satisfied. We know a true commitment to quality is a never-ending process of monitoring customer expectations...and meeting those expectations better than anyone else. As a member of the armed services, you are often faced with relocation decisions. Let United Van Lines provide you with the quality service you deserve.

United’s network of over 1,000 affiliated agents in the United States and more than 100 other countries offers a full range of highway, ocean and air transportation services.

Call your United agent... call our World Headquarters at 800.283.5716... or visit our Web site at www.unitedvanlines.com

U.S. DOT No. 077949

Maersk Line, Limited’s U.S. flag fleet of container, multi-purpose, tanker and roll-on/roll-off vessels provides unmatched capability to transport all types of U.S. government and prime vendor cargo.

Our global reach afloat and intermodal networks ashore provide access to thousands of destinations worldwide, while our dedicated and experienced people ensure that our customers meet their most challenging objectives.

OPERATIONS CAPABILITY

ND-TO-END

--

Now Offering Industry-Best U.S. Flag Service U.S. East Coast to Kuwait—20 Days* U.S. East Coast to Pakistan (direct)—22 days* U.S. Gulf Coast to Egypt—17 days *First arriving vessel

Bennett International Group LLC is honored to serve you, our customer, the WARFIGHTER. Our Government Services division stands ready to meet your specific transportation and logistical needs. Our mission is to provide quality service, industry experts, and a responsive fleet to get the job done. Choose the company others have trusted for over 35 years. Choose Bennett, a company honored to serve.

• Continental United States (CONUS) and Outside Continental United States (OCONUS) • Qualcomm® tracking • Transportation Protective Services including Constant Surveillance Service (CIS), Dual Driver Protective Service (DDP) and Protective Security Service (PSS) • Base Re-Alignment and Closure (BRAC) moves • Unit moves • Van, Flatbed, Dropdeck, Double drop, RGN and multi-axle specialized equipment

CONTENTS m of Cha th

ng e

Rh y

August 2009

S

ep

te

20 mb er 19-23, NA SHVILLE, TN

09

FEATURES August 2009 • Vol 65, No. 4 Publisher

LTG Ken Wykle, USA (Ret.) Editor

Kent N. Gourdin

Collaboration Improves Warfighter Sustainment

8

Part I of II: Measuring and Improving Enterprise Performance

By Col Jean Mahan, LTC Jeff Gulick, and Ms. Jodi Browell

Managing Editor

Karen Schmitt | karen@ndtahq.com Contributing editor

Denny Edwards

Circulation Manager

National Maritime Day Joint Ceremony

12

By Jeff Campbell

Leah Ashe

Publishing Office

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 Production Manager

Margaret Howard Graphic Design

Debbie Bretches Advertising Account Executive

63rd Annual Forum & Expo PREVIEW

14

Passenger Travel Updates

18

• Passenger Travel—The Domino Effect • Passenger Travel Services Committee and So Much More!

Jim Lindsey

Advertising & Production Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000, x261 • F 434-817-2020

Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association, a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 223047296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices.

Subscription Rates: One year (six issues) $35. Two years, $55. Three years, $70. To foreign post offices, $45.

Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com.

Postmaster: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

departments A-35 News | Ms. Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 association News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Industry News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Government News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Pages future | COL Denny Edwards, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Professional development | Mr. Irv Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Homeland security | Mr. Lee Jackson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

A-35

EDITORIAL REVIEW BOARD AND EDITORIAL OBJECTIVES

A-35ers—Setting an Example

Dr. James M. Daley, Dean, Helzberg School of Management, Rockhurst University, Kansas City, MO Dr. Kent N. Gourdin, Director, Global Logistics and Transportation Program, College of Charleston Maj Gen John E. Griffith, USAF (Ret.), Transportation Logistics Consultant Richard H. Hinchcliff, Consultant Brig Gen Malcolm P. Hooker, USAF (Ret.), Member, Board of Directors, NDTA Dr. Joseph G. Mattingly, Jr., R.H. Smith School of Business, University of Maryland Prof. Gary S. Misch, US Naval War College (Ret.) Lt Col Anne T. Peck, USAF (Ret.) Dr. Richard F. Poist, Jr., Professor, Transportation and Logistics, Iowa State University MG Harold I. Small, USA (Ret.), Consultant COL Joseph A. Torsani, Jr., USA (Ret.) Dr. David Vellenga, Director, Carl A. Gerstacker Liberal Arts Institute for Professional Management, Professor of Economics and Management, Albion College

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: •

• • • •

News and information about defense transportation issues New theories or techniques Information on research programs Creative views and syntheses of new concepts Articles in subject areas that have significant current impact on thought and practice in defense transportation • Reports on NDTA Chapters Editorial Policy The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For correspondence including feature manuscripts and books for review, write: Dr. Kent N. Gourdin, Editor, DTJ Director of the Global Logistics & Transportation Program, College of Charleston, Charleston, SC 843-953-5327 • F 843-953-5697 gourdink@email.cofc.edu Government, Corporate, NDTA and Chapter News, Almanac Input, Mini-features, and all other departments, send news and photos to: Ms. Karen Schmitt, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 karen@ndtahq.com

4 |

Defense Transportation Journal

|

Ms. Lori Leffler, CTC, A-35 Chair Global Government Strategic Manager, The Hertz Corporation

W

ithin United States military organizations, functions are many times seen as personnel and troop support related if they deal with issues that affect individuals. Travel, lodging, pay and benefits, change of station, leave, and personal property shipments are just some examples of issues that affect the individual soldier. This issue of the DTJ highlights one of those areas—Passenger Travel. Passenger Travel is the business of moving people, and closely related to that in the military is travel in conjunction with a permanent change of station (PCS).

In that situation, not only does the soldier move, but so does the soldier’s family and all of their household possessions.

Successful, efficient, and damage-free movement of personal property is a key contributor to troop morale. To give more attention to this important function, NDTA is creating a Household Goods Subcommittee under its existing Surface Committee. This is an exciting opportunity for all of those working to launch this new subcommittee, including one of our A-35ers, Mr. Mike Babiak, who will hold the position of Household Goods Subcommittee Vice-Chair. Mike, who is the Manager of Government & Defense Accounts at McCollister’s Transportation Group, is an example of an A-35er who has been active, remains active, and benefits from his work within NDTA. Others could learn from Mike’s example and leadership. A-35ers are encouraged to actively participate in the new Household Goods Subcommittee as well as other NDTA committees including the functional committees: Passenger Travel Services, Military Airlift, Sealift, Surface Transportation, Distribution, and Security Best Practices. These committees address topics of mutual interest to industry and DOD as well as other government departments or agencies. NDTA also has administrative committees who

August 2009

work with the President, Board of Directors, and NDTA staff in the management, oversight, and overall betterment of the Association. These committees are Education and Professional Development, Finance and Audit, Foundation, Chapter Support and Membership Development, Communications and Publication, and, of course, A-35.

If you are a senior industry member or government liaison to one of these committees, I urge you to consider sponsoring a junior staff member to become involved with you. As we are all aware, today’s NDTA A-35ers are tomorrow’s leaders, and what better way to prepare them for their future leadership roles than to acquaint them with today’s issues.

If you are an A-35er, I recommend that you decide which committee is most relevant to you, your career, or your NDTA chapter and become involved. As Mike’s example demonstrates, once you become involved the “sky is the limit.” Detailed information on all committees is on the NDTA homepage—www.ndtahq.com— under committees. DTJ

>>

A-35ers in the Scott-St. Louis NDTA Chapter are looking forward to their first event at the AFCEA-NDTA TechNet Mid-America Symposium, July 28-29, 2009, at the Gateway Convention. The Scott-St. Louis NDTA Chapter will partner again this year with the local AFCEA Chapter to host TechNet. A-35ers will also have a chance to talk informally with NDTA President Ken Wykle (LTG, USA Ret.), who is scheduled to speak at the Symposium. Contact Lori Farnsworth, Central Region A-35 Representative, for details (618-229-1585; lori.farnsworth@hq.transcom.mil).

EDITORIAL

Passenger Travel in Uncertain Times Dr. Kent N. Gourdin, Editor DTJ

LETTER TO THE EDITOR

Director, Global Logistics and Transportation Program College of Charleston

T

hese are definitely interesting times for passenger travel. Fuel prices have headed up again, the economy continues to languish, and the word “stay-cation” has been added to our lexicon. Travel, in this context, is a very broad term encompassing not only commercial carriers and personal transport, but also lodging, food service, and recreational venues, all of which are presently suffering. Still, there is hope in all the doom and gloom.

Though gas has steadily increased in price throughout the spring, it’s still nowhere near what it was this time last year.

We are a fickle bunch, aren’t we? As soon as the price per gallon began falling last year, sales of fuel efficient vehicles dropped and those of SUVs headed back up. Of course, one can now purchase a hybrid full-size SUV, which seems like something of an oxymoron to me, but there you have it.

The bright spot with respect to highway travel is the federal stimulus money being directed to various roadway infrastructure projects. I’ve expressed my concerns about our deteriorating infrastructure in this space before, so I’m thrilled that the government is at least making a start at dealing with this monumental problem. Long term, we can only be better off for this effort, which is way overdue in my opinion.

Air travel is still a bit of a mixed bag. As the poor economy has negatively affected the demand for airline services, carriers have reduced the number of flights they offer while simultaneously trying to raise fares and charge for previously free services. These actions invariably are reflected in more crowded airplanes, higher fares, and unhappy passengers. That said, there are still deals to be had, and some fares have actually fallen. Unfortunately, service issues continue to plague many airlines. As the demand for high-fare First and Business Class seats has dropped, some carriers are pulling out those seats and jamming in more rows in Economy. In some cases,

these changes result in even less pitch and legroom than passengers had in the past.

I admit to being most excited about the renewed interest in, and funding for, rail passenger service. Though I am not so naïve as to think we’ll have a truly viable high-speed rail system in the United States anytime soon, I am encouraged by the fact that the government recognizes the importance of revitalizing rail as a viable and attractive form of passenger transport. Indeed, while a European or Japanese style high-speed rail network may not be possible, certainly a higher-speed system than we have now is. I will follow the progress in this area with great interest.

Unfortunately, as I mentioned earlier, people are simply not traveling as much as they used to, a situation that impacts not only the transportation providers but all of the car-rental firms, lodging companies, dining establishments, and recreational venues as well. But we’ve been through these times before, and we’ll weather this storm as well. The reality is that many people are still traveling, be it for work or pleasure, and as things begin to turn around, so we will all be back at it with a vengeance.

We are a nation made of up folks who both need and want to travel. My hope is that America comes out of this recession with a stronger transportation system better able to support the travel needs of individuals and businesses alike as we all recover from one of the most trying economic periods in our nation’s history. DTJ

“To travel is to discover that everyone is wrong about other countries.”

Find the ANSWER on pg 25

I hope you can help me with the history of this pin—when it was current, and if it was an item awarded to, or purchased by, a member. In the center is what looks like a winged wheel. What is the significance? Anything you can add to my understanding will be greatly appreciated.

– Warren Whittier Port Angeles, WA The “winged wheel” is one of four symbols on the seal of the US Army Transportation Corps. Each symbol relates to a specific mode. The Wing represents Air; others are the Wheel (on a rail) to indicate Rail Roads, a US Highway Marker (prior to the Interstate shield) to indicate Roads or surface transport, and a Ship’s Wheel (encircling the emblem) to indicate Sea transport. Your pin most likely was in use between 1949 and 1975. The original pins were produced in Attleboro, MA. A sterling silver lapel pin was at one time presented only to Life Members, but later was available for purchase.

The National Defense Transportation Association has undergone many transformations since its founding in 1949, and this year marks yet another milestone. The Association will be known as NDTA – The Association for Global Logistics and Transportation to reflect a much broader scope of the industry.

– Karen Schmitt, Managing Editor DTJ www.ndtahq.com | 5

PRESIDENT’S CORNER “The Rhythm of Change” LTG Ken Wykle, USA (Ret.)

m of Cha th

ng e

N

ashville is fast approaching. Have you visited our web site and the Forum pages? If not, check it out—outstanding speakers, professional program, off-site learning tours, networking opportunities, and a post-forum tour of the Jack Daniel’s Distillery. Our theme is “The Rhythm of Change.” Many of us have experienced change throughout our careers and personal lives. We understand that there is a certain rhythm to change.

As we think about changes in our industry over the last 12 to 18 months, think about how they have impacted us personally and professionally as we travel.

Airline schedules have been significantly changed—fewer non-stop flights, fewer choices, more crowed planes, the ubiquitous security checkpoints, and many additional fees—ticket changes, curb-side check in, checked bags.

Rental car rates are increasing, and much of the increase is caused by additional fees: concession fees and vehicle licensing costs recovery, MVL taxes and Customer Facility Charge (CFC), energy surcharge costs recovery, various taxes. I recently traveled to Chicago to visit an NDTA Corporate member. The base cost for the rental car was $53.

The total rental cost was $80.03—34% of the total price was for additional fees. But it was less than round trip cab fare from the airport to my destination.

The hotel industry is changing also— more boutique hotels, multiple brands under the Corporate Logo, buffet style breakfast and internet access as part of the room rate at the family oriented brands.

The brands catering to the corporate traveler and upper middle class couples add a resort fee (for use of their pool, exercise room, etc., whether you use these facilities or not), internet access fees, parking

Rh y

NDTA President

S

ep

te

20 mb er 19-23, NA SHVILLE, TN

09

fees, and provide room service and on-site restaurants.

Those in the travel industry saw the impact of changes early in the process— reduced or eliminated commissions. Now there are booking fees, transaction fees for automated systems like GDS, fees for changing your travel itinerary, and more aggressive marketing of insurance.

The travel industry has changed and is still changing—in rhythm—without much “publicity” but noticeable to the frequent traveler. Strong competition precludes increases in base rates—airline ticket prices, daily rental car rates, or hotel room rates. In response, industry is marketing ancillary products/services: curb-side check in, checked bags, internet access, resort fees, fees for late return of rental cars, a fee for adding an additional driver, various types of insurance—the list is far from complete.

There is a rhythm to these changes. Aggressive pricing and tough competition keeps base rates low to “satisfy” the customer. There is an ever increasing menu of services for a fee and an increase in current fees. Inclusive pricing has disappeared— think base price for a new car or home and all the options available to upgrade or options packaged in such a way that in order to get what you want you have to purchase all the options in the package.

NDTA is changing in a different way.

As noted in my last column, we are rebranding the Association—emphasizing our initials and adding a tag line to reflect the reach and breadth of our Association.

NDTA: The Association for Global Logistics and Transportation.

The change will evolve over time as we change our letterhead, web site, brochures, and many other documents. As noted in previous columns, we have changed our web site and our forum registration site and automated the exposition floor plan and sponsorship process. We accept online payments using credit cards, electronic funds transfer, or the more traditional check or cash. The update and conversion of our database is underway.

These and other changes benefit our members—improved and more responsive service and stable or reduced prices. Early bird registration for the 63rd Forum and Expo is less than last year. Corporate membership fees have not increased in six years, and individual membership fees have not increased in more than a decade. NDTA provides excellent value for your investment.

Mark your calendars and join us for our 63rd Annual Logistics Forum and Exposition in Nashville, TN, 19-23 Sep 2009. Information is available at www.ndtahq.com or by calling 703-751-5011.

Thank you for your commitment to the NDTA and for your contributions to our Nation’s economy and National Security. DTJ

WELC ME

NEW corporate

members as of July 7, 2009

SUSTAINING MEMBERS • Perot Systems • New England Motor Freight, a Shevell Group Co.

regional patrons • R+L Global Services • U.S. Suites • Reckart Logistics, Inc.

www.ndtahq.com | 7

Collaboration Improves Warfighter Sustainment Part I of II: Measuring and Improving Enterprise Performance This is Part I of a two-part series describing how collaboration improves the performance of the Department of Defense (DOD) distribution network that sustains the Warfighter. a global performance-improvement effort called Distribution Process Owner (DPO) Strategic Opportunities.

Introduction Supporting DOD sustainment requirements is a sizeable business operation.

Combatant Command (COCOM) customers generate a daily demand of more than 15,000 requisitions against the nation’s wholesale supply system, equating to nearly 3000 tons of cargo entering the DOD sustainment supply chain every day.

Requisitions can take anywhere from a few days to a few months to be picked from stock, packaged, consolidated, shipped, de-consolidated, and transported to forward supply points. The DOD supply chain is uniquely supported by a worldwide network of supply sources, large fleets of multi-modal transportation assets, and modern distribution infrastructure. It is also complimented by a responsive command and control system that effectively mitigates challenges such as hostile interdiction and nature’s unforeseeable events.

This article introduces the metrics framework that is instrumental in understanding and managing the global distribution system and provides examples of two recent initiatives that improved sustainment distribution performance. The focus of Part II in this series will shift to the application of recent lessons learned in

Background To address unreliable distribution performance throughout the 1990s, United States Transportation Command (USTRANSCOM) and the Defense Logistics Agency (DLA) co-sponsored the Strategic Distribution Management Initiative (SDMI) in 2000. SDMI was the first significant effort to leverage commercial best practices to improve the DOD supply chain. In a related endeavor, the RAND Corporation developed a suite of initial distribution metrics along with a supporting database to identify improvement opportunities, design solutions, and measure the impact of change implementation.

Initial efforts to capitalize on these opportunities took place in an era where there was not a single DOD distribution process champion or change manager. These efforts, while providing some initial gains, also highlighted a need to further cultivate synchronization and unity of effort.

In 2003, the Secretary of Defense designated USTRANSCOM as the DOD’s DPO with the responsibility to oversee the overall effectiveness, efficiency, and alignment of DOD-wide distribution activities and to implement distribution process improvements that enhance the Defense Logistics and Global Supply Chain Man-

agement System. The DPO mission also requires that USTRANSCOM unify efforts among enterprise stakeholders to improve supply chains serving the regional COCOMs. To assist the DPO in making fact-based decisions to improve distribution performance, USTRANSCOM established a Center of Excellence, the Joint Distribution Process Analysis Center (JDPAC), in 2006.

USTRANSCOM’s DPO designation rejuvenated efforts to establish best practices and became the catalyst for refining a measurement framework for end-to-end performance called Integrated Distribution Lanes (IDL). With JDPAC support, the IDL framework enabled root cause analysis to pinpoint distribution problems and to develop, implement, and monitor solutions. The framework constituted the foundation for collaboration between the DPO and its strategic partners. With DPO governance in place, the stage was set to reap the potential benefits of implementing commercial best practices.

Measuring and Improving Distribution Performance An enduring theme of the DPO mission is enhancing the Global Supply Chain Management system. The DPO and its partners stay true to this theme by measuring overall distribution performance in a hierarchy of supporting metrics from the enterprise level to the process level.

By Col Jean Mahan, Deputy Director, Mobility Capabilities and Requirements Study (MCRS) and LTC Jeff Gulick, Chief, Distribution Metrics & Analysis Branch, US Transportation Command (USTRANSCOM) Directorate of Strategy, Policy, Programs & Logistics. Ms. Jodi Browell, CSCP, and Mr. Rich Moon, Northrop Grumman Technical Services support to USTRANSCOM, Joint Distribution Process Analysis Center.

8 |

Defense Transportation Journal

|

August 2009

Mission Critical to the Middle East

Kabul/Bagram Kandahar Shuwaikh Shuaiba

Ê21 days Norfolk to Kuwait Ê22 days Norfolk to Pakistan or Iraq

Umm Qasr

Umm Said

Jebel Ali

Part of APL’s global U.S.-Flag vessel network, our upgraded Suez Express now offers weekly P1 service between the United States and the Persian Gulf. With the industry’s fastest transits, and under our constant custody, your shipments reach their destinations swiftly, safely, and securely.

For more than 160 years, we have been proud to support the U.S. government’s global transportation needs.

Karachi Fujairah

Any mission. Any theater. Any time.

APL will get you there.

To learn more, visit www.apl.com or call 202.331.1424.

U.S. Flag Service

The IDL framework essentially measures performance from source of supply to final consumption point across more than 250 individual “lanes” (IDLs). Each lane is divided into three segments: Supplier, Transporter, and Theater. Figure 1 illustrates the flow of requisitions through the distribution process from source of supply to receipt. IDL standards are negotiated between the warfighting customer, distribution network operators, and sustainment providers. Distribution performance measurement is managed within a monthly “battle rhythm” that basically involves collecting and analyzing actual pipeline data and then collaborating among enterprise partners to identify trending problem areas. Performance solutions requiring major supply chain policy changes or large investments are prioritized by and implemented through the DPO governance structure in a series of joint forums at various levels of senior leadership.

USTRANSCOM and its partners have pioneered numerous projects and initiatives that have resulted in improvements such as streamlining container processes, reducing aerial port hold times, and enhancing coordination with host nation customs. The information gained from measuring distribution performance has not only led to identifying these opportunities, but simultaneously provides the DPO the ability to measure and report progress during implementation. Trust is also built throughout the process through information sharing.

The following sections illustrate two types of improvement opportunities—Process and Network Design.

Process Improvement One notable process improvement engagement focused on ocean distribution procedures. The ocean mode contains many interrelated processes in which synchronization can greatly impact enterprise performance.

In January 2007, IDL analysis indicated that the Kuwait Ocean lane was operating at 86 days compared to a 64-day standard.

10 |

Defense Transportation Journal

|

Through teamwork, enterprise partners achieved significant improvements. In the Supplier segment, DLA, General Services Administration (GSA), and Norfolk Consolidated Freight Station improved packaging and consolidating of their containers and container booking. Traditionally, shippers booked containers to the first vessel departing the port. IDL analysis revealed that the first vessel departing was not necessarily the first vessel arriving at the destination due to more direct shipping routes, leading to fundamental changes in the booking policy.

The carriers responded by optimizing their schedules and processes. The customer in the theater segment quickly closed their requisitions. The outcome of these collective efforts produced a 29% reduction in distribution days to the customer in the Kuwait Ocean lane. Figure 2 illustrates the positive impacts made possible through collaboration.

Network Design Process change is just one way to enhance the performance of the Supply Chain.

Network design changes can also improve effectiveness and efficiency by reducing the number of touch points in the supply chain, reducing bottlenecks, and reducing overall enterprise time. An example of such an effort is Distribution Network Optimization–Europe (DNO-E).

The effort was led by a cross-functional team with members from the supplier, transporter, and customer communities.

August 2009

Figure 3 shows a progression of the distribution network. In the early network design, many point-to-point movements were made from CONUS to DOD customers in US-European Command (EUCOM). The team identified opportunities to better utilize the capabilities of the Theater Consolidation and Shipping Point–Europe (TCSP-E) and to leverage the established truck network serving many EUCOM customers. Today, containers and pallets are typically built for mixed consignees and shipped to the TCSP-E for deconsolidation and onward movement. Previously, containers and pallets were frequently pure and shipped direct to the customer site. This network change allowed the system to provide better velocity and more reliable service to customers while using the existing cross-docking capability at the TCSP-E and the mature trucking network in EUCOM. These changes led to many significant improvements, one of which was air cargo bound for Northern Italy. Velocity improved by 38% with a 24% reduction in cost. The study team documented the key drivers of success for future efforts: using a common measurement framework, earning trust by sharing information with cross-enterprise teams, and providing continuous feedback to keep change implementation on track.

Way Ahead Through a collaborative approach to performance measurement, the DPO has continued to align business processes to reach desired outcomes and remove waste in the system. Part II of this series will examine work underway to perform system optimization through the DPO Strategic Opportunities initiative involving a cross-enterprise team consisting of USTRANSCOM, DLA, Defense Distribution Center, and GSA. Cost savings are projected to reach 500 million dollars annually with up to 25% improvement in performance. DTJ

<Zla bg hg lnff^k'

>Zkg Z _k^^ .) \Zla \Zk]'# ;m [ <ahb\^ Ikbobe^`^l l_q[l^m g_g\_l& sioÇff Ïh^ g[hs q[sm ni _[lh jichnm niq[l^ nb_ l_q[l^m sio q[hn& ch]fo^cha `l__ hcabnm& l_n[cf ac`n ][l^m [h^ go]b gil_( ;h^ hiq& qb_h sio mn[s domn nbl__ m_j[l[n_ ncg_m [n [hs =bic]_ bin_f \_nq__h G[s ,+mn [h^ ;oaomn +-nb& ,**3& sioÇff _[lh _hioab <ahb\^ Ikbobe^`^l jichnm ni l_^__g `il [ /* jl_j[c^ ][mb ][l^( C` sio [l_ []ncp_ il l_ncl_^ gcfcn[ls& sio [h^ siol ^_j_h^_hnm qcff _hdis nb_ j_l ^c_g l[n_ `il i`Ï]c[f [h^ f_cmol_ nl[p_f($$ Mn[sm gomn \_ \iie_^ [n ]bic]_bin_fm(]ig)aip il \s ][ffcha 200(./(<L;MM(

\ahb\^ahm^el'\hf(`ho 1//'-.';K:LL

* Reservations must be made at choicehotels.com/gov or 866.45.BRASS at qualifying rates and Choice Privileges member number must be provided upon check-in. After every third qualifying stay between 5/21/09 and 8/13/09, enough points will be added to points earned to reach the 14,000 point level, which can be redeemed for a prepaid $50 cash card.

Only members earning this bonus qualify to redeem for the cash card and redemption must be completed by Oct. 31, 2009. A stay is defined as any number of consecutive nights at one hotel regardless of check-ins or check-outs at any Comfort Inn®, Comfort Suites®, Quality®, Sleep Inn®, Clarion®, Cambria Suites® or Ascend Collection® property included in the Choice Privileges program. You must maintain a U.S. address (including U.S. territories) to be eligible for this promotion. For program details, qualifying rates and point redemption rules, visit choiceprivileges.com. ** Per diem rates guaranteed on last room availability at participating hotels. See choicehotels.com.gov for details. © 2009 Choice Hotels International, Inc. All rights reserved. 09-449/06/09

Joint Ceremony

By Jeff Campbell

The

Maritime

Administration,

Military Sealift Command, and the Smithsonian Institution teamed up to honor some of America’s finest sailors on National Maritime Day during a ceremony at the Smithsonian’s National Museum of American History. National Maritime Day recognizes the maritime industry every year on the 22nd of May, which is the date, in 1933, of the first transoceanic voyage under steam power. This year’s tribute was highlighted by the opening of a new permanent exhibit dedicated to the Mari-

The National Maritime Day Joint Ceremony took place in the museum’s Flag Hall, before the entrance to the Star Spangled Banner exhibit, and just one floor above the Smithsonian’s latest addition, “On the Water: Stories from Maritime America.” Museum Director Brent Glass welcomed guests to the ceremony, saying National Maritime Day was the perfect time for the new exhibit’s ribbon cutting.

“The maritime influence on American history is one of the most compelling chapters in the national story,” said Glass. “‘On the Water’ will transport visitors to places they have never been, allowing them to experience life at sea through the experiences of real people and objects from one of the Smithsonian’s oldest collections.”

Wayne Clough, Secretary of the Smithsonian Institution, took to the podium next and thanked the exhibit’s major supporters, including the US Congress and the A.P. Moller and Chastine Mc-Kinney Moller Foundation. “More than two million

time industry.

visitors have been in this museum since it reopened just a scant seven months ago,” Clough said. “There will be many more with the new exhibit, ‘On the Water.’ We may live on the land, but we depend on the water to survive.”

NDTA Supported the Effort In 2005, when the “On the Water” team was in search of a sponsor, Project Director and Curator Paula Johnson wrote in the DTJ about the exhibit’s goals. She noted in the December issue: “While maritime professionals know that waterborne trade is essential to the daily lives of virtually all Americans, the general public is largely unaware of how ships, maritime workers, and the nation’s maritime infrastructure serve their needs for fuel, consumer goods, food, and much more.”

Her hope of bridging that knowledge gap was realized when the museum welcomed the public to the exhibit on National Maritime Day. “The tremendous support to this exhibit has meant a great deal,” Johnson said, men-

Apprentice Antonio Jones, a cadet from Seafarers International Union, stands at parade rest next to the wreath honoring US Merchant Mariners, which was placed within the “Answering the Call” section inside the new “On the Water” exhibition on National Maritime Day.

Engineer Richard Mathews and 2nd Mate Colin Wright find news about their experience aboard the MV Maersk Alabama in the exhibition’s section “What’s New on the Water?”

tioning NDTA among the list of people and organizations she thanked during the opening ceremony. “This is the culmination of the great effort of a lot of people to bring the story of mariners to the general public,” she said as the first guests made their way through the exhibit. We tried to create an exhibit that would inspire our visitors to see how important the maritime industry is to their history and today.”

The A.P. Moller and Chastine McKinney Moller Foundation answered the call to provide the major sponsorship that made the exhibit possible. Ane Maersk Mc-Kinney Uggla, vice chairman of the foundation, was on hand to convey how much the exhibit meant to her, coming from a family of mariners. She began with some lighthearted remarks: “The Vikings are coming, the Vikings are coming; I’m happy to say that we, as descendants of the Scandinavian Vikings, have been received in greater friendliness.” Ms. Uggla said that this time, the Vikings came not to pillage, but strengthen ties. “Many visitors to the museum will gain appreciation for the maritime industry,” she said.

The ceremony’s keynote speaker, Transportation Secretary Ray LaHood, called the Museum a jewel. “Those of us who spend time in Washington are blessed to have such a wonderful place,” he said. LaHood praised the adventurous sailors who tamed rough waters during our Nation’s formative years.

“National Maritime Day has been a proud tradition for more than 75 years,” he said.

That tradition continues today, as civilian merchant marines continue to answer the call of duty. Secretary LaHood asked the three members of the Maersk Alabama in attendance to stand so the audience could recognize their service. The first mate, second mate, and an engineer were three of the 21-member crew of the MV Maersk Alabama, which was seized by pirates off the coast of Somalia on April 8, 2009.

The company of the Alabama made it home, but many mariners have made

the ultimate sacrifice. The ceremony included the placing of a wreath in their honor, while a member of the US Navy Band played Taps. “The maritime profession continues to attract a very brave class of men and women,” LaHood said.

Walking Through (Mari)Time A visitor walking through “On the Water: Stories from Maritime America” will advance chronologically in each section of the exhibition, beginning in 1450 with “Living in the Atlantic World.” At the exhibit entrance you’ll face the first of 77 ship models on display from the National Watercraft Collection, the Tobacco Ship Brilliant. The large model represents one of the last ships to transport goods to Britain before the Revolutionary War, its prominence signifying a new era of maritime commerce in the New World.

This section also introduces visitors to early American maritime trade through an interactive map depicting trade routes and several audio clips from sailors and passengers describing the conditions of life at sea.

After checking out some artifacts from the notorious pirate Blackbeard’s ship, the Queen Anne’s Revenge, visitors can take the Pirate Quiz in the second section, “Maritime Nation: 1800-1850,” which helps visitors separate romanticized stories from the reality of piracy.

The third section, “Fishing for a Living: 1840-1920,” gives visitors the opportunity to see a 30-foot wooden whaleboat while listening to traditional whaling songs and sea chanteys.

“Inland Waterways: 1820-1940” has several History Channel–produced videos about river transportation. You’ll also find a popular object, the lens from the Bolivar Point Lighthouse, which guided mariners near Galveston, Texas, from 1907 to 1933.

“I thought the exhibit was really nice,” said Colin Wright, third mate of the MV Maersk Alabama. “My favorite piece was the lens from Bolivar Point. I’m from Galveston, so it reminds me of home.”

“Answering the Call: 1917-1945,” features models of World War II era cargo ships and a soundtrack from President Franklin D. Roosevelt’s radio addresses to teach visitors about the emergency shipbuilding program.

Finally, “Modern Maritime America” shows models of the types of ships that make today’s global commerce happen.

Whether you feel more at home on land or at sea, a trip to the National Museum of American History’s new exhibit, “On the Water,” will give you a greater appreciation of the work mariners have done and continue to do to keep America moving. Plan your visit at www.americanhistory.si.edu/. DTJ

Ms. Ane Uggla, Vice Chairman of the A.P. Moller–Maersk A/S Board and daughter of Shipowner Maersk McKinney Moller, cut the ribbon to officially open the “On the Water: Stories from Maritime America” exhibition.

From left to right: former Secretary of Transportation Rodney Slater; Commander, Military Sealift Command, Rear Admiral Robert D. Reilly Jr.; Acting Maritime Administrator James E. Caponiti; Paula Johnson; Vice Admiral Albert J. Herberger; Ms. Ane Uggla; Smithsonian Secretary G. Wayne Clough; Secretary of Transportation Ray LaHood; Director of NMAH Brent Glass.

www.ndtahq.com | 13

 www.ndtahq.com/forum.htm

Save Money! Network with Colleagues! Enjoy a Convenient Location!

< Then > REGISTER for the NDTA Forum using your Hotel Confirmation Number online.

m of Cha th

ng

e

Rh y

< First > RESERVE your room at the official Forum Hotel to enjoy these and other benefits.

S

ep

te

20 mb er 19-23, NA SHVILLE, TN

09

The Rhythm of CHANGE

The Gaylord Opryland Resort & Convention Center  Reservations: 888-777-6779 The 2009 NDTA Forum Registration Package includes: • Entrance to all Professional Programs including Credit Workshop & Off-Site Learning Tours • All Social & NDTA Scholarship Fundraising Events • Exhibit Hall Attendance

Lend Your VOICE – Be a Part of the CHANGE

Remarks from Defense & Industry Leaders

 Mr. Joe Bento President, CEVA Americas and Global Freight Mgmt. Network, CEVA Logistics (invited)  General Anne Dunwoody, USA Commander, Army Materiel Command  VADM Mark Harnitchek, USN Deputy Commander, USTRANSCOM  General Arthur Lichte, USAF Commander, Air Mobility Command  General Duncan McNabb, USAF Commander, USTRANSCOM  Mr. Richard Stocking President & COO, Swift Transportation Company

National Defense Leadership Award Mr. Richard Haynes Executive Director, Military Sealift Command (MSC)

National Transportation Award

Mr. Tom Crowley Jr. Chairman, President & CEO of Crowley Maritime Corporation

President’s Award

COL Joseph Torsani, Jr., USA (Ret.)

14 |

Defense Transportation Journal

|

August 2009

 VADM Alan Thompson, USN Director, Defense Logistics Agency (invited)

Engaging Tomorrow’s Leaders TODAY . . .

Mr. Larry Larkin Director, Defense Supply Chain Management Solutions, Northrop Grumman

Information sharing and lessons learned . . .

Monday

 DTCI, Today and Tomorrow Mr. Andy Jones VP Business Devel., CorTrans Logistics  Small Business Development, Doing Business with the Government BG Barbara Doornink, USA (Ret.), VP, SAIC

 Post Iraq Retrograde, Redeployment, and Reset MG Kevin Leonard, USA Army Materiel Command, G-3/5

 Travel Industry Insights Ms. Pam Mitchell, SES Director, Defense Travel Management Office

Tuesday

 Technology for Global Transportation and Logistics Dr. LeAnne Viera, PhD Partner, IBM Global Business Services  AFRICOM’s Adaptive Logistics Network BrigGen Frederick Martin, USAF Deputy Director Operations & Logistics HQ Africa Command (AFRICOM)

 The New Silk Road— Afghanistan Logistics Support Mr. Rick Boyle, VP, Maersk Line, Limited

International Chapter of the Year

 Category II San Antonio Chapter  Category III

Scott-St. Louis Chapter

A-35 Chapter of the Year

 Category II San Antonio Chapter

 Category III Washington, DC, Chapter

Maj Jeffrey Babinski, USAF Commander, 11th Logistics Readiness Squadron

 National Disaster Logistics Supply Chain Coordination Mr. Eric Smith, SES Assistant Administrator, Logistics Mgmt. Directorate, FEMA

 Web 2.0 and Security Best Practices

 FAR Based Contracting—Carrier &

Mr. Jason Trubenbach, Washington, DC

Service Provider Requirements Ms. Gail Jorgenson Director, Acquisitions, USTRANSCOM, TCAQ

 Military TSgt Alisha Cua, USAF, Scott-St. Louis

 From the Front—Young Leaders in the AOR

Moderator: Mr. Ted Rybeck CEO & Chairman, Benchmarking Partners

Junior Executive Leadership Award  Civilian

President’s Award COL Joseph Torsani, Jr., USA (Ret.)

Two destinations to choose from . . .

Included in the Forum Registration Package . . .

 Joint Logistics Integration— DOD Logistics Roadmap from an Operations Professional Perspective Presented by: Ms. Joni Holeman, CFPIM, CIRM, CSCP DC Metro APICS, the Association for Operations Management & Adjunct Faculty (George Mason Univ, Old Dominion Univ, Fox Valley Technical College) NDTA thanks the University of Alabama in Huntsville for its support of our educational programs and course accreditation

Compelling dialogue . . .

 Around the World in 90 Minutes VADM Mark Harnitchek, USN Deputy Commander, USTRANSCOM VADM Alan Thompson, USN Director, Defense Logistics Agency

 Dell – East Coast Fulfillment Center (ECFC) in Nashville opened as the Inspiron Portables manufacturing facility in June 2000. It was renamed in July 2002 as the East Coast Fulfillment Center and began fulfilling portables and Dell branded products to customers in 32 states, including the Midwest and East Coast. Its location allows Dell to reach 80 percent of its East Coast customer base next day via ground service compared to air network. The two buildings total 450,000 square feet and offer distribution services to many products (portables, minis, printers, desktops, servers, and after sale options) to small and large relationship customers and consumers. ECFC operates 24/7 with a team of between 750 and 1000 people.

 UPS – Materials Distribution Center (MDC) is a 91,000-square-foot warehouse that serves as the largest link in the UPS automotive supply chain. The MDC facilitates the procurement and distribution of parts and services for all of the automotive shops in more than 1700 UPS facilities in the US. Processes are automated and state-of-the-art. Past tour participants give this facility tour a “thumbs up.”

President’s Special Achievement Award Mr. Alan Wohlstetter, Washington, DC Mr. Kenneth Wavering, Scott-St. Louis

Innovative Logistics Award SAIC Software Engineering Team Tanker Airlift Control Center Air Mobility Command

Distinguished Service Award Mr. Christopher Blum, Valley of the Sun Mrs. Debbie Bretches Mr. Mark Cordisco, Charleston Mr. Steven Cubarney, Washington, DC Colonel Jacques De Kimpe, Benelux Ms. Sheri Dixon, Scott-St. Louis SSgt Regina Green, USAF, San Antonio Mr. Larry Larkin, Washington, DC Mrs. Caron Martin, Valley of the Sun Ms. Jennifer L. Melton, Scott-St. Louis CAPT James Naber, USN (Ret.), Central PA Ms. Mary “Liz” Pasqualucci, Scott-St. Louis Mr. Robert Sherrill, Tampa Bay Colonel Carlo van den Berg, Benelux Mr. John “Mo” Verling, Scott-St. Louis www.ndtahq.com | 15

Golf Tournament

Scholarship Events

 Gaylord Springs Golf Links Course

(Included in full Forum registration)

September 20, 2009 (Sun) Hosted by Delta Airlines (Additional cost; Breakfast & Lunch will be served. Forum registration is required to join the Golf Tournament) Gaylord Springs Golf Links Course captures the tradition and spirit of the game. It is carved from the banks of the Cumberland River and has earned its place among the nation’s best. The links style, par 72 layout, offers 18 challenging holes bordered by limestone bluffs and enhanced by federally protected wetlands. At the signature fourth hole, you will find the century-old springhouse from which the club derived its name.

The course was designed by former US Open and PGA champion Larry Nelson. It is the home of the Music City Championship, a stop on the PGA Champion Tour.

 Grand Ole Opry September 20, 2009 (Sun) Hosted by YRC Worldwide The Grand Ole Opry is a three-minute walk from the Delta Portico exit of the Hotel.

The evening will begin with drinks, networking, and a tour of the Opry Museum, where you can see a model of Patsy Cline’s living room and memorabilia from Roy Acuff and the unforgettable Minnie Pearl. The Tour concludes with a visit to Studio A, former home of the Dolly Parton show, HeeHaw, and many others. Dinner will be followed by a program in the Grand Ole Opry House.

 Meet ‘n Greet

Special Destination Tour

September 21, 2009 (Mon)

 Jack Daniels Distillery September 20, 2009 (Sun) & September 24, 2009 (Thur) (Additional cost; choose either Pre- or Post-Forum Tour) At the Jack Daniels Distillery, where every drop of Jack Daniel’s Tennessee Whiskey is made, you’ll see the special process that was developed in 1866. You may also tour the Visitor Center exhibit hall to learn more about the history of the founder and local brands of whiskey.

Following the tour, lunch will be served at Miss Mary Bobo’s Boarding House. True to Southern boarding house tradition, guests sit together at large family-style tables alongside a gracious Lynchburg hostess who encourages conversation, shares a bit of local lore, and ensures that dishes are passed to the left. The menu includes generous helpings of two home-style meats, six vegetables, and side dishes; corn bread, biscuits, or rolls; homemade dessert; and a piping hot cup of coffee. After lunch explore historic Lynchburg Town Square and quaint shops.

16 |

Defense Transportation Journal

|

Hosted by FedEx Relax after your professional day, network with old friends and make new ones, or strengthen relationships. Join the group for drinks and entertainment in the ballroom foyer while you plan your evening activities with friends and industry partners.

Watch for the Educational Pavilion in the Exhibit Hall Meet school officials from leading universities to discuss their Transportation – Logistics – Supply Chain programs.

Help us welcome students from local colleges as our guests at the Expo.

*Forum program and event details subject to change

August 2009

Guest/Spouse Tours (Included in Guest/Spouse Registration)

 Historic Franklin, TN September 21, 2009 (Mon) Travel back in time, to the mid 1800s and the Civil War in Franklin, TN. The tour begins at the Carter House, where more than 1000 bullet holes remain as a testament to one of the bloodiest battles of the Civil War, and then a visit to the on-site museum. Carnton Plantation is next; lunch will be served on the porch.

Featured in the New York Times bestseller, Widow of the South, this elegant plantation home became a makeshift field hospital during the Battle of Franklin. Explore rooms used in battleground surgeries, ornamental gardens, and the largest privately owned confederate cemetery in the country. Robert Hicks, Widow of the South author, and Margie Thessin, Executive Director, will lead the tour. The final stop, time permitting, will be the historic downtown district with quaint shops and antique stores.

 You Choose Tours (choose one tour) September 22, 2009 (Tues) TOUR #1 Music City USA The best of Music City. Begin your experience with a downtown driving tour on Historic 2nd Ave., State Capitol, Bi-Centennial Mall & WWII Memorial, Lower Broadway with the world famous Tootsie’s Orchid Lounge, and the original Ernest Tubb Record Shop. Stop at the Ryman Auditorium, a National Landmark, for a selfguided visit of where the Grand Ole Opry was performed from 1943 to 1974. Continue on board with a drive through Centennial Park and a stop at the Parthenon. Lunch will be served at the Sunset Grill, Hillsboro Village.

Then see special exhibits “The Hank Williams Legacy” and “Dynamite: Brenda Lee” at the Country Music Hall of Fame & Museum.

TOUR #2 Cheekwood Gardens & Art Museum Featuring a 30,000-square-foot Georgianstyle mansion, world class collections of American and contemporary paintings and sculptures, English and American decorative arts, and traveling exhibitions. Signature pieces include the most comprehensive collection of Worcester porcelain in America.

Stroll the grounds with a knowledgeable guide to learn about plants in the Cheekwood estate as well as landscape architect Bryant Fleming’s design for integrating the mansion and the landscape. You’ll be inspired to enhance your own gardens after touring the Color Garden, the Wildflower Garden, the Herb Garden, and the Japanese Garden.

Lunch will be served in a private dining room.

EFN KI8M<C@E> KF

D@EE<8GF D@EE <8GFC@ C@J J&JK% % G8LC G8LC

Minneapolis/St. Paul

�

So now you can fly from many Southwest Airlines® locations to Minneapolis/St. Paul with only one stop through Chicago (Midway). And with this addition to our roster, we now serve a total of 65 destinations——making you even more free to move about the country. Book now at southwest.com.®

©2009 Southwest Airlines Co.

Today’s economy proves that our airlines, car rental companies, hotels, and travel agencies—the “players” in the Passenger Travel Industry—are totally interdependent. Efforts to cut costs or shift focus by one impacts all others. More than ever before, they need to join forces to remain in the game and provide the kind of service that government travelers have come to expect. By leveraging their strengths and resources, the airlines, car rental companies, hotels, and travel agencies will be able to withstand the downturn that currently dictates the passenger travel industry.

18 |

Defense Transportation Journal

|

Passenger Travel—The Domino Effect

By Dr. G.R. “Rocky” Mobaraki, MBA, PhD Passenger Travel Services Committee (PTSC) Chair Director, Global Government & Strategic Programs, The Hertz Corporation

P

assenger Travel is considered by many economists to be a key barometer of our economic health.

Travel trends—not just at home in the USA, but around the globe—register the direction that the recovery will take. The outcome is unknown. But, one thing is certain . . . we have entered a new world.

I always like to have a positive outlook, and like the old cliché, I prefer to see the glass half full rather than half empty. At the recent NDTA board meeting, I began my briefing by asking the other board members what they wanted to hear first—the good news or the bad news . . . The good news is that in the Passenger Travel Industry (PTI), the government and the defense contractors are still traveling strong. The bad news is that the government and the defense contractors are the only segments still traveling—demand is strong.

Euromonitor International, an international provider of business intelligence and strategic market analysis, forecasted that the global economic downturn will lead to the travel and tourism industry

August 2009

shrinking in 2009, with Middle Eastern, African, and Eastern European markets faring slightly better. The forecast also indicates a correlation between Gross Domestic Products (GDP) and the travel and tourism industry. According to UNWTOWorld Business barometer, when global growth exceeds four percent, tourism arrivals growth tends to be higher; however, when the GDP falls below two percent, tourism growth tends to be lower. With the global economy contracting in 2009, the impact on the travel and tourism industry is severe. That is why the International Monetary Fund has revised its 2009 global GDP forecast from 3.9 percent to -1.3 percent. (Nina Varghese, Business 24/7 June 7, 2009).

The PTI is challenged with the worldwide recession and reduced demand.

In response, all segments of PTI report year over year declines in passenger traffic. “Revenue flat” seems to be the new “revenue up” these days, and if Passenger Traffic is any indicator of the economic health, then the economy is still strug-

Government traveler,

get the recognition you deserve.

IHG honors and recognizes those who serve our country. It is our pleasure to open our doors and make your stay as comfortable as possible.

Recognized as the "Best Hotel Rewards Program in the World", Priority Club® Rewards is the world's first hotel loyalty program spanning over 4,200 hotels in nearly 100 countries.

Join Priority Club® Rewards now.

Members earn their choice of points toward free hotel nights or merchandise, or earn frequent flyer miles with more than 40 domestic and international airline partners.

We’re always coming up with new point-earning opportunities. To join, call 1.888.211.9874 or visit priorityclub.com. Enrollment in Priority Club Rewards is free.

• • • • •

Points never expire Fastest way to Elite status Transfer points between accounts More locations to earn and redeem No blackout dates on Reward Nights

www.ihg.com/gov ©2009 InterContinental Hotels Group. All Rights Reserved. Most hotels are independently owned and/or operated.

gling to improve. While depending on the price of gasoline and demand, airlines are reducing capacity to make ends meet, hotel occupancy is down, travel agencies are focusing on opportunities in leisure travel, and the car rental industry, plagued with low rates prior to the recession, is now lowering rates even further to stimulate travel and keep cars from sitting idle. To survive, the PTI has gone through major restructuring, cost cutting, layoffs, and temporary and permanent salary cuts, as well as other money saving initiatives.

The price of oil, which has dropped substantially since the last edition of the DTJ Passenger Travel Issue (lingering in the $140s/barrel), is creeping up again.

The drop in gasoline price significantly helped the airlines because the airlines fuel hedges at higher prices were being replaced at lower cost. The advantage airlines have over other segments of PTI is the ability to flex capacity with the changing economic environment, grounding planes when demand is weak and then reinstating capacity when travel picks up again. Considering all of this, the challenge is being able to time the supply and demand curve. Reducing capacity could take up to six months to adjust in the system. Forecasting fuel prices is also a difficult task, and saving fuel costs through hedging is impacted heavily by the accuracy of these forecasts. Knowing this from the airlines gives the rest of the travel industry an indication that matching capacity with lower demand is the key to reduce variable costs and to make fixed costs more manageable under reduced revenue streams.

fleets, and finding banks willing to lend this money has been very difficult. Additionally, the problems experienced by the big three auto makers has increased overall pressure on how and from whom vehicles may be purchased. The car rental industry is looking forward to the stabilization of the banking and auto industry along with the resurgence in leisure and commercial travel; however, no innovative revenue generating ideas are ruled out. In fact, for years the car rental industry missed out on utilizing fees similar to those with airlines and hotel industry.

Subsequently, the most important questions remain as follows: • How do we get people to travel again?

• How can we increase profitability in this extremely competitive market?

• To what extent will the fleets be right sized to meet demand?

• What services will be abandoned, and what locations need to be closed?

• How can quality service be preserved with aging fleets?

• Can lost revenue be generated during peak periods?

• What other service costs can be passed to the customers?

Similar to the car rental industry, the lodging industry is also suffering a major downturn due to this worldwide recession.

Builders have begun to suspend or cancel projects as their banking resources have dried up. Hotels are seeing declines in occupancy across the globe as corporations rein in their travel spending and airlines cut capacity. This has resulted in hotels competing for limited business. Both the

Many hotels that never offered per diem rates are now welcoming them, as well as discounts for leisure travelers.

While the travel and hospitality industry in general reflects the current economic condition globally, the US government travel has not decreased significantly year over year. While we may see a downward shift, we do not expect to see the significant fall off which is currently being experienced on the corporate America side. The majority of the travel agencies, or CTOs, providing travel service to the Department of Defense also rely on corporate and leisure travel as a major source of revenue. As corporate and leisure travel continues to decline, greater pressure will continue against the financial bottom line of these companies and challenge them in continuing to be competitive in the US Government market place.

All of the players in the PTI chain are interdependent. The travel agency, airline, car rental, and hotels, along with other PTI entities impact the entire travel experience. Lower traffic for the airlines could mean fewer car rentals and lower hotel occupancy. The economic downturn means cost cutting measures for organizations of all sizes, translating to lower travel across the spectrum. This domino effect that we are experiencing now validates that there is a direct correlation between travel and the health of the economy.

The good news for the government remains to be low rates in every segment of travel. However, the airlines, hotels, car rental companies, and travel agencies all have concerns that need to be addressed, and we continue to work with DOD and GSA in order to enhance programs that

The economic downturn means cost cutting measures for organizations of all sizes, translating to lower travel across the spectrum. This domino effect that we are experiencing now validates that there is a direct correlation between travel and the health of the economy.

The agility, innovation, and flexibility of the PTI are keys to surviving the tough times. For instance, the car rental industry has been devastated by the economy.

The problems experienced with the decline in leisure and corporate travel are compounded by the fact that car rental companies rely heavily on borrowing large amounts of capital to finance their 20 |

Defense Transportation Journal

|

transient and group sides of lodging are declining, resulting in layoffs, closings, and restructuring in most of the major lodging chains. European hotels are expecting closings and chain bankruptcies if the trend continues. The good news for the government travelers is that just about every hotel chain has discovered government business and is welcoming government travelers.

August 2009

are beneficial for all stakeholders. There are many ways government and industry can collaborate to meet the needs of all parties. If the Government desires to continue benefiting from lucrative programs, the needs of industry must be addressed, or the government and its travelers stand the chance of seeing less attractive programs and increased costs. DTJ

AIRLINES

AIRLINES Mr. Denny Clifford, Director Military & Government Sales, Delta Airlines & NDTA PTSC Airline Subcommittee Chair Current Economic Environment and Industry Trends “We have lost several years of growth, and yields are under severe pressure. Airlines are in survival mode. Cutting costs and conserving cash are the priorities,” says Giovanni Bisignani, IATA’s director-general. Although dismal, these comments are the reality the airlines are facing in today’s challenging economic environment. According to IATA, international passenger traffic is down almost 10% in May compared to last year.

IATA also estimates that industry losses in 2009 will be $9 billion. One positive sign: air cargo, which is the leading indicator for world trade, dropped 17% in May versus prior year, which was an improvement from the 21% drop in April, and a signal that the negative trends have possibly hit bottom.

Airlines are responding aggressively with actions to offset the losses in revenue, including fare promotions, removing weight from aircraft (with some removing ovens, in-flight magazines, and entertainment systems and others incorporating lightweight meal carts and lighter plateware and cups), and hedging fuel purchases at optimum timeframes.

Although fuel costs had decreased substantially since an all-time high was reached last summer, the price of a barrel of oil has doubled in the last few months.

If these headwinds weren’t enough, airlines worldwide faced the fallout from the H1N1 flu virus, particularly in Mexico and other countries hardest hit by this nearpandemic. One major carrier has reported that the virus resulted in a revenue loss of $250 million. The affects of the flu on airline economic results seems to have subsided.

Military/Government-Specific Issues The GSA FY10 airline bid process is complete. GSA is now analyzing bids for

CSI Aviation Services Ralph Paker Donna Heinz Delta Air Lines Denny Clifford* FlightWorks, Inc. Cynthia Karnik Kalitta Charters, LLC Steve Green North American Airways Lois Wilson Omni Air International Trisha M. Frank Southwest Airlines Merrill Taylor United Airlines Tom Billone World Airways Lois Wilson

BUS

Trailways Transportation System Diane Walden*

CAR RENTAL

Advantage Rent-A-Car Mr. Bob Thunell Avis/Budget Rent A Car Robert Krapf Mike Washkevitz* Dollar – Thrifty Automotive Group Mark Cronin Randy Tietsort Enterprise Rent-A-Car Lisa Burgess Bryan Scott Xavier Trimiew Europcar Tony Dolt Olivier Jacquet Frank Langbein Fox Rent A Car Jose Giraldo The Hertz Corporation Lori Leffler Rocky Mobaraki* Payless Car Rental Kathy Johnson

EXTENDED STAY LODGING Equity Corporate Housing Kathy Lane Extended Stay America, Inc. Toni Kleinops* Rachel Tyler Korman Communities Scott Foster Oakwood Worldwide Mary Jacenich Debbie Lynch Daphne Medillo Virginian Suites Ms. Noelani Berkholtz

HOTELS

Best Western International Dave Brogden Mari Ann Gray

Carlson Hotels Worldwide Linda Colovos Choice Hotels International Lisa Kenner Mary Sarkis Hawthorn Suites-Alexandria Stacie Liverpool Hilton Hotels Corporation Scott Lamb* Hilton Waikiki Prince Kuhio Newton Wong Hyatt Hotels & Resorts Anna Marie DiBattista Ron Keith InterContinental HG Judy Silcox La Quinta Jake Paine Lynn Shatterly LTD Hotel Management Eunice Gibbs Marriott International Paul Somogyi Radisson – Waikiki Newton Wong Resort Quest Hawaii Kathy Ahsam Starwood Hotels Ted Miller Suite America Kim Dunbar Wyndham Hotel Group Denise Benyak John F. Kennedy

PASSENGER RAIL AMTRAK Clifford Black*

TRAVEL AGENCIES

Carlson Wagonlit Travel | SatoTravel Shelley Bickner Kelly Kuhn* Monnie Riggin Phyllis Leeth Marc Stec Craig Thompson McNair Travel Karen Bacordo Omega World Travel Joy Borja Diana McHugh

TRAVEL PUBLICATIONS & SERVICES AmeriForce Publishing Brian Dunbar OAG Worldwide Brent Albrecht Christina Kosac Runzheimer International Kraig Rodenbeck

TRAVEL TECHNOLOGY INNOVATA Paul Chrestensen Cathi Massi Judy Smith

Northrop Grumman Lisa Godfrey* Sabre Travel Network Jeffrey Goodell

GOVERNMENT

Defense Travel Management Office (DTMO) Andrea Carlock George Greiling Harold Hicks Paul Joyce Bill Shirey

PTSC COMMITTEES & CHAIRS PTSC Committee Chair Dr. G.R. “Rocky” Mobaraki, MBA, PhD Director, Global Government & Strategic Programs, The Hertz Corporation PTSC Vice Chair and Airline Committee Subcommittee Chair Mr. Denny Clifford Director, Military & Gov’t Sales, Delta Airlines Car Rental Subcommittee Chair Mr. Mike Washkevich Director, Government Sales Avis & Budget Rent A Car Hotels Subcommittee Chair Mr. Scott Lamb Director, Government Sales Hilton Hotels Corporation Travel Agencies Subcommittee Chair Ms. Kelly Kuhn President, Carlson Wagonlit Travel | SatoTravel Travel Technology Subcommittee Chair Ms. Lisa Godfrey DTS Program Manager Northrop Grumman Bus Subcommittee Chair Ms. Diane Walden VP, Sales, Trailways Extended Stay Lodging Subcommittee Chair Ms. Toni Kleinops Extended Stay America Passenger Rail Subcommittee Chair Mr. Clifford Black Chief Corp. Communications (Acting), AMTRAK Travel Publications & Services Subcommittee Chair Brent Albrecht Advertising & Marketing Director, OAG EX-OFFICIO Ken Wykle President, NDTA Denny Edwards Vice President, NDTA (*Subcommittee Chairman)

www.ndtahq.com | 21

Safe Summer Driving Tips for Sharing Roads with All Vehicles from FedEx Ground

I

t’s summertime! Which means . . . summer breaks, family vacations, and millions of drivers hitting the open road. More vehicles mean traffic congestion, and a greater chance for accidents. With this in mind, FedEx Ground offers tips for drivers on staying safe and sharing the roads with other drivers.

“Without a doubt, summer sees increased risks on the road,” said William Q. Battle, managing director of Safety for FedEx Ground. “Safety should be the number one priority! We all play a role in ensuring that the roads are as safe as they can possibly be. Summer is a carefree time, but drivers should take actions to ensure their own safety and that of passengers, other travelers, and pedestrians.”

Keep these driving tips in mind when you’re behind the wheel this summer:

• Be patient. Stay focused – Adhere to speed limits and remain calm. Keep your eyes on the road to avoid fender-benders that typically happen in stop-and-go traffic.

• Look farther ahead – Let your eyes lead your wheels as you drive. Watch for brake lights, changing traffic signals, bicyclists, and other drivers entering intersections.

• Never drive when tired – No matter how eager you are to reach your destination, don’t pull an all-nighter behind the wheel. Stop for ample rest and alternate drivers whenever necessary.

• Pass with care – Use care when passing large trucks or tractor trailers. Don’t slide back in the traffic flow until you can see both of the truck’s headlights in your rearview mirror, and be mindful of a truck’s blindspots when passing. “If you can’t see the driver in his side view mirror, the driver can’t see you.”

• Avoid distractions – Keep both hands on the wheel and avoid in-depth conversations with passengers, as well as cell phones, texting, iPods, eating, and stereo adjusting.

These and other highway safety tips are followed daily by the more than 20,000 independent contractors and drivers who operate their vehicles for FedEx Ground every business day, and who logged more than 1.3 billion miles in 2008.

>> miles and smiles FedEx will log many MILES and SMILES this summer. The company is providing vehicles and drivers to lend a hand to the “Summer of Service” project initiated by the federal government’s Office of Personnel Management (OPM). Federal employees have been challenged to donate to area food banks, and due to their overwhelming response, extra transportation was required. FedEx, a generous participant in worthy community causes, answered the call for delivery to the DC Food Bank and Warehouse on June 26, July 31, and August 28. If your company would like to participate, call NDTA for more details.

release of awards expected in late July/ early August. Contract starts October 1, 2009. Industry met with GSA in June to discuss the resolution of several issues including churning of bookings by agencies (churning is deliberate booking, cancellation, and rebooking of flights in order to avoid fare rule restrictions or to obtain 22 |

Defense Transportation Journal

|

lower fares), duplicate bookings (which have been an increasing problem as passengers use the DTS and ETS systems), and overcharge issues by GSA Audit including those related to itineraries where the Fly America Act is involved. The duplicate booking issue is at the forefront because action by travelers to book the

August 2009

same itinerary twice, whether deliberate or unintentional, results in charges back to the booking travel agency.

Industry concluded that it needs to find a better way to assign responsibility for the source of the duplicate booking problem, which would reduce the instances of debit memos being charged to agencies by airlines.

Many in industry believe the Government’s ability to hold its travelers accountable for certain transactions (such as duplicate bookings) would be a move toward resolution of these recurring issues. Further education for travelers in the booking process will also help mitigate this problem. GSA, airlines, travel agencies and other entities continue to work together in finding solutions to these challenges faced by industry. This initial industry meeting kicked off discussions of these critical issues. Subsequent meetings will be held monthly to further discuss and find solutions for these problems.

LODGING Mr. Scott Lamb, Director, Government Sales, Hilton Hotels Corporation & NDTA PTSC Lodging Subcommittee Chair Overall, the global economic challenges continue to have a negative impact on the lodging industry. Most hotel markets are seeing a 15% to 30% decline in overall revenues. Industry prognosticators (Smith Travel Research, PK&F) are predicting a soft recovery for lodging starting in mid-2010. The results so far have been: • Restructuring and layoffs by many hotel companies.

• New build and renovation projects delayed or canceled for lack of funding and credit.

• Lower rates and special packages.

The good news for government travelers is that many hotels are offering government rates that would not discount to per diem in the past. In addition, extras like free internet, discounted food and beverage, and free parking are being bundled with the government rate to make the hotel more competitive.

Two major concerns are challenging the industry today. First, the economic efforts of the White House and Congress have highlighted “extravagant” meetings and travel spending by some companies— even as they are asking for government

bail-outs. Unfortunately, this negative publicity has had a “halo” effect on particular destinations (Las Vegas, for example) and on meetings in general—resulting in companies cancelling events for fear of bad press.

The hotel industry is very concerned that this trend may continue, and we are calling on the administration, government, and industry to start traveling and meeting again!

The other issue that has been raised as a result of the current economy is the potential impact of per diem changes in 2010 and 2011 to the lodging industry.

It’s no surprise that government business has become very important to hotels in the last 6 to 12 months. This seems to be the only segment of the lodging market that is not suffering steep declines, and in many cases government travel is keeping the doors open at hotels that would otherwise be looking at failure.

Although we do not expect GSA and OMB to ignore changes in the lodging market or the potential savings the government can garner in this environment, we do want to express our concerns and hope GSA and OMB will realize the impact large rate declines will have on our industry. We are hoping that this may be a first opportunity for the lodging industry to have impact on the GSA/OMB program and be included in the rate setting process going forward.

We also feel that NDTA has a role in promoting a better relationship between the lodging industry and government.

• NDTA should encourage its membership to spend their travel dollars with NDTA member lodging companies.

Each member hotel and hotel company has programs tailored for government and government contractors. NDTA is pursuing more effective ways to promote these programs to its membership. In addition, the representatives from these lodging companies are perfect contacts for government and contractors to work with for special programs, meetings, and extraordinary circumstances. We don’t need to create a new hotel program within NDTA, but we do need to find better ways for the NDTA membership to support our hotels!

• Government business has gained importance for hotels and hotel companies due to the economy. NDTA has an opportunity to add more membership— if they provide education and business building opportunities at their meetings and forums. “How To Do Business with a Military Base,” “How To Respond to a Government Bid,” “Meet the Transportation Officers,” and “How Government Travels” would be sessions that would attract more hotels and lodging companies to our conferences and help the Lodging community feel part of NDTA. Along these same lines, asking DTMO to do live demonstrations at the conferences would also be a “value add.” Perhaps a “Traveler Focus Group” session could be included to help hotels understand how travel decisions are made. The lodging committee will be working to implement many of these ideas in the months ahead. We need to bring more relevant content to NDTA programs to better sell NDTA within our organizations.

CAR RENTAL Mr. Mike Washkevich, Director, Government Sales, Avis & Budget Rent A Car & NDTA PTSC Car Rental Subcommittee Chair Car Rental companies are facing huge challenges. The economic crisis of 2008 had a huge impact on many businesses and industries across the United States, and the car rental industry was no exception. Faced with a 25% decline in both leisure and business travel, tighter restrictions in acquiring funding for new cars from faltering banks, and having to look outside bankrupt Detroit automakers for supply left virtually all car rental companies in dire financial condition. One

car rental company, Advantage, filed for chapter eleven bankruptcy.

The good news for Federal Government Travelers is that Government renters continue to receive the lowest rates—and the most comprehensive benefits—in the auto rental marketplace. Due to the competitive nature of the Federal Government Car Rental Agreement, daily rates have barely increased in the past two decades.

Perhaps even more importantly, Government renters are never charged underage driver fees ($27 per day value) or additional driver fees ($12 per day value); Government renters also receive free collision/theft coverage ($25 per day value), and free liability coverage ($15 per day value). Additionally, under the Federal Government Program, renters receive free unlimited mileage.

The success of the Federal Government Car Rental Program stems from the close relationship between the Defense Travel Management Office (DTMO), which handles the Car Rental Agreement, and the car rental companies. NDTA also

plays a crucial role as the intermediary between these two entities. Numerous meetings take place throughout the year to ensure that both Government and industry’s respective needs are met.

The role that NDTA plays in the relationship between Government and the car rental industry cannot be understated.

NDTA provides a forum for the meetings, offers guidance to both sides, and provides unbiased input on all important contract issues.

Currently, the most pressing agreement issue being reviewed is the $5 per Government Administrative Rate Supplement (GARS), which helps offset the cost (more than $100 per day value) of offering all of the aforementioned benefits to the Government. With mounting financial pressure (publicly traded car www.ndtahq.com | 23

rental stocks fell by an average of 98% in 2008!), it is no longer feasible for most car rental companies to offer full benefits to Government travelers without an increase in the GARS fee. NDTA’s role in this negotiation is invaluable.

Looking forward, the world of the car rental industry is changing. Car rental companies are adapting to the current economic climate by keeping cars longer, eliminating unprofitable locations, and either eliminating—or charging more for—benefits such as insurance, underage drivers, and unlimited mileage.

TRAVEL AGENCIES Ms. Kelly Kuhn, President, Carlson Wagonlit Travel / SatoTravel & NDTA PTSC Travel Agency Subcommittee Chair Vacation travel is obviously at risk with the current economic crisis. Even consumers that have discretionary income are delaying the decision to take a vacation due to fear of possible job layoffs.

The growing trend of clients booking vacations within 30 days of departure has resulted in some suppliers introducing special short notice programs such as “pack and go,” non-refundable deposits, and other incentives. Cruise Lines have also altered itineraries to offer more options that are less than 7 days and are spending more than one day in a port in order to respond to customer needs and in turn reduce their own costs. The cruise lines are even introducing new air programs to help counteract the downturn in the economy.

Overall, leisure travel sales have slipped in the industry, primarily impacting air only bookings; however, consumers are still planning vacations. Suppliers and travel companies that have responded to the crisis by offering complimentary upgrades, onboard ship and resort credits, kids stay and eat free programs, etc., are actually surpassing 2008 revenue levels.

The entire leisure travel industry has continued to support the DOD customer with special discounts and is allowing

SAVINGS FOR GOVERNMENT EMPLOYEES

them to add the DOD discount on top of already aggressively priced packages.

Royal Caribbean reports that the hefty discounts the company has been offering in recent months for cruises on its namesake brand and sister line Celebrity Cruises have been successful in getting people booking again and that discounting continues to be aggressive. By dropping prices on the cabins, the ships are reaching higher passenger levels, which improves the revenue it produces per cabin, and that consumer behavior is stabilizing.

They have lowered their revenue forecast marginally to take into account selected areas of weakness including a more cautious view of onboard revenue, but overall, their bookings continue to come in within the range of earlier expectations.

Travel suppliers are encouraged and reporting that they are back up to an average of 80% capacity; however, the economic crisis is changing the leisure travel industry, and consumers can expect continued discount programs to fill ships and resorts. DTJ

Avis offers special rates on official government travel! Just mention AWD # A555000 when making your reservation.

PLUS, enjoy a free single upgrade with coupon # UUGA121.

Now that’s a fiscally responsible decision.

Free Single Upgrade COUPON # UUGA121

For reservations, visit avis.com or call 1-800-331-1441.

Terms and Conditions: Coupon valid for a one time, one car group upgrade on an intermediate (group C) through a full-size four-door (group E) car. Maximum upgrade to premium (group G).

The upgraded car is subject to vehicle availability at the time of rental and may not be available on some rates at some times. Coupon valid at participating Avis locations in the contiguous U.S. and Canada.

Coupon is non-transferable. One coupon per rental. A 24-hour advance reservation is required.

May not be used in conjunction with any other coupon, promotion or offer except your AWD discount.

For reservations made on avis.com, upgrade will be applied at time of rental. Renter must meet Avis age, driver and credit requirements. Minimum age may vary by location. An additional daily surcharge may apply for renters under 25 years old. Fuel charges are extra. Rental must begin by 3/31/10.

Avis features GM vehicles.

24 |

Defense Transportation Journal

|

August 2009

©2009 Avis Rent A Car System, LLC

18025

ASSOCIATION NEWS*

*Some articles have been condensed due to limitations in space.

| in memoriam | William G. Applegate

O

ne of NDTA’s most active and long time members, William G. Applegate, passed away on May 27 at the age of 90. Colonel William “Bill” Applegate’s military service began in the spring of 1942 when he enlisted in the US Army. Following Officer Candidate School graduation, he transferred to the Army Transportation Corps. In 1946, Bill joined NDTA when it was known as the Army Transportation Association.

COL Applegate’s 32 years of service to his country spanned three wars: WWII, Korea, and Vietnam; his military decorations include the Legion of Merit with three Oak Leaf clusters, the Air Medal, and the Bronze Star with two Oak Leaf clusters.

The Butte, Montana, native settled in San Francisco shortly after retiring from the Army. His work in the transportation industry continued with a second career as a government sales representative for Teresi Trucking, Inc., and his commitment to NDTA remained strong as he served as San Francisco Bay Area chapter president and chairman of the board and California State Vice President. Bill was a two-time NDTA Distinguished Service Award winner, and he received the NDTA President’s Special Achievement Award in 1994.

COL Applegate was a “soldier’s soldier,” respected by his troops and superi-

Ceremonies were held at Holy Cross Cemetery in Colma, CA, with full military honors. The caisson was transported by Haflingers, Austrian horses bred to pull carriages in the Alps. Haflingers were used by Austrian and Swiss Armies to pull light artillery as recently as 20 years ago. Photo Credits: Applegate Family and Arthur Tong.

ors alike, and he was a great “ambassador” for America in his many overseas tours.

His resilient yet gentle character harkens to his pioneer-like upbringing in Montana. Bill was an avid outdoor sportsman and had great respect for the environment. He was actively involved in family, church, and community as a Scoutmaster and member of the Knights of Columbus.

Bill’s family and friends will greatly miss his kindness, generosity, great patience, and special compassion for people.

| welcome | Jeff Campbell

N

DTA is delighted to introduce a welcome addition to our Headquarters Office—Jeff Campbell!

Jeff, originally from Arizona, has served the United States Navy as a Broadcast Journalist and Audio/Visual Specialist with Armed Forces Network (AFN) and Defense Acquisition University, respectively. He’s made the transition from “Navy News” to “NDTA News,” and will take on the assignment of updating our online News Page, keeping us briefed on Chapter/Member activities, and contributing to the DTJ. His article on the Smithsonian’s newest exhibit, “On the Water,” appears in this issue of the DTJ.

adjusted forum schedule >>

The NDTA Board of Directors decided to change the location of the 2010 Forum due to the current economic situation and comments from many of our members. Hotels in Orlando and Washington, DC, are being considered for the 2010 event and we are trying to reschedule the Alaska Forum for 2012 if suitable dates are available.

ANSWER

Aldous Huxley www.ndtahq.com | 25

INDUSTRY NEWS* AAR Global Solutions, LLC AAR CORP has announced the formation of a joint venture to expand the Company’s participation in the government and defense services markets. The new business, AAR Global Solutions, LLC, combines the capabilities of AAR with the experience of a seasoned government contracting team, led by Steve Cannon, former Chief Executive Officer of DynCorp International, and other strategic partners including Johnson Global Services, LLC, an affiliate of Magic Johnson Enterprises, and Zaccanelli Investment Partners (ZIP).

“We set out, together with Zaccanelli Investment Partners, to create a unique enterprise dedicated to providing highquality, value-added solutions in support of the US and other governments’ defense/ logistics and nation building initiatives,” said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. “We created an organization with an inclusive and diverse base of ownership, leadership, and workforce that has a distinctive blend of skills and perspectives that will enhance the new venture’s value proposition. I am very pleased to announce the successful launch of AAR Global Solutions and look forward to a bright future with tremendous growth.”

Storch continued, “The parties are committed to providing high-quality solutions to our US Government and international customers by bringing discipline and solid business practices to meet the unique needs and stringent requirements of this customer base. Our partners contribute an international presence and reputation to our efforts as we build this new company.

AAR Global Solutions will open new government and defense markets to AAR as well as strengthen our ability to compete for global government services programs as a prime contractor,” Storch concluded.

AAR is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and defense customers through four operating segments: Avia26 |

Defense Transportation Journal

|

*Some articles have been condensed due to limitations in space.

tion Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems; and Aircraft Sales and Leasing. More information can be found at www.aarcorp.com.

LimitLess International LimitLess International, NDTA member and provider of international air and sea freight services with expertise in documentation, customs clearance, insurance, packing, and storage, received approval as a Certified Cargo Screening Facility (CCSF) in May 2009, by the TSA. Approval as a CCSF is a part of the TSA’s Certified Cargo Screening Program (CCSP), a voluntary program designed to enable certain vetted, validated, and certified facilities to screen cargo prior to delivering the cargo to the air carrier. According to the TSA web site, facilities that successfully complete the TSA certification process, to include an onsite assessment of the facility, will be designated as Certified Cargo Screening Facilities.

CCSFs must adhere to TSA mandated security standards, including the employment of secure chain of custody methods to establish and maintain the security of screened cargo throughout the supply chain. TSA will only certify those facilities that demonstrate adherence to these requirements through the TSA certification process.

Cheryl Stockstad, president and CEO of LimitLess International, Inc., upon receiving approval from TSA, said, “We recognize that it is a congressional mandate to screen 100 percent of cargo transported on passenger aircraft by August 2010. TSA began the CCSP to assist in meeting this directive, and at LimitLess we’re willing to do our part to make this a reality. We worked very hard to meet TSA’s stringent requirements and are very proud to have received this approval.”

Mayflower From those moving from the homestead to the city, to seniors leaving larger homes, ® Americans use moving as an opportunity to downsize their belongings.

The average weight of a household move has decreased over the past four years, indicating that Americans are increasingly downsizing their personal belongings, according to a recent Mayflower Transit study.

August 2009

Mayflower has tracked shipping weights since 1994, and the study is based on data as reported to the American Moving and Storage Association. The average move for Mayflower weighed in at 6751 pounds in 2008, a decrease of 2% from 6830 pounds in 2007. Mayflower’s average moving weight has decreased by nearly 10% since the study began in 1997.

“Average moving weights have been trending down for the past four years, which is a strong indicator of broader changes in our society. We’re watching Americans shift their lifestyles to accommodate the current economic environment, emerging sustainability trends, and the green movement,” said Jennifer Bonham, Director of Marketing Communications at Mayflower Transit.

Downsizing Tips Mayflower Transit agents have established a list of best practices for downsizing personal belongings: Rate Your Space—Assessing a new space to understand its physical limitations will make tough packing decisions easier. Measure each room in advance to determine what furniture will fit and what will have to go. Taking photos of each room and sketching a layout to remember the space more precisely will help determine what to move.

Out of Sight, Out of Mind—Small spaces are like valuable real estate where every square foot counts. A great Mayflower trick to remember: “If you don’t touch it daily, don’t take it.” Excuses like “I never know when I may need it” or “I’ve always had it” are not practical reasons to hang on to an unused item.

Learn to Let Go—After identifying essential items, sort the remaining items into categories such as gifts, long-term storage, trash, and donations. Sorting belongings will prevent carrying over the clutter into a new space. And a clutter-free home also “shows” better to prospective buyers.

Parting is Such Sweet Sorrow—Once tough decisions have been made, it’s time to get rid of everything else. Host a “reverse housewarming” party—list everything that needs to go and invite friends, family, and neighbors over to choose what they want. It’s a great way to ensure that prized possessions find a good home.

>> Savi Technology Lockheed Martin’s Savi Technology has released Savi SmartChain® 6.0, a flexible software application for managing assets, inventory, and shipments both within facilities and throughout the global supply chain. Savi’s sixth-generation software drives “just in time” operations by providing decision makers with quality, up-todate information about the location, condition, and security of their assets.

The announcement was made on June 10, 2009, at the National Press Club— along with availability of two other Savi innovations: a new type of active RFID Real Time Locating System and hybrid RFID/SatCom GlobalTag—on the company’s twentieth year in business.

SmartChain 6.0 is designed to ease the integration of Automatic Identification and Data Capture (AIDC) technologies, such as bar codes, IUID, RFID, GPS, and sensors, into existing business processes. Savi also offers a comprehensive software toolkit, which

The DASH7 Alliance is a consortium of leading RFID industry players, gathered to advance the use of DASH7 wireless data technology by developing extensions to the ISO 18000-7 standard, ensuring interoperability among devices and educating the market about DASH7 technology. Formed in 2009, the Alliance now has the interest of more than 20 companies. Manufacturers, systems integrators, developers, regulators, academia, and endusers all work together to promote the use of DASH7 technology in a wide array of industries and applications.

To date, NDTA participating DASH7 members include: Hi-G-Tek / Lockheed Martin / Northrop Grumman / Savi /

includes source for the applications, to make it vastly simpler and more cost-effective to add and transform real-time data from AIDC technologies. The result is a newly adaptable product for customers to continuously improve the performance, security, and condi-

tion of assets moving both within facilities and throughout the supply chain.

“Savi SmartChain 6.0 makes it easier to take advantage of quality AIDC-based information, which helps take the guess work out of managing supply chain assets and inventory,” said David Shannon, Savi Technology’s Senior Vice President of Marketing and Strategy. “Savi SmartChain 6.0 is an elegant design that addresses the common problems systemic to every organization involved in asset and supply chain management and empowers our customers to address their own unique challenges— no matter how simple or complex.”

Savi SmartChain 6.0 features a refreshed user interface built using Web 2.0 tools and techniques. Upon login, users see a dashboard summary of automated alerts and analytics tailored for that user.

Adaptive Applications support the ability to update database structures, modify workflows, adjust business rules, customize nomenclature, and add completely new capabilities to the application. All of continued on page 36

Partnership.

Today’s leaders recognize the value of partnerships. AMU offers you more value through additional course options with our partners such as the Global Maritime and Transportation School (GMATS).

• Transfer credit for approved courses will save you time and money • Choose from more than 100 online bachelor’s, master’s and certificate programs, including Transportation & Logistics Management

Photo: US Army Corps of Engineers

• Reduce your cost of earning a degree with affordable tuition Learn more at www.apus.edu/open-house/schedule AMU is a member of the regionally accredited American Public University System

Visit us at the NDTA Annual Forum in Nashville, TN, Sept. 20-23

amuonline.com | 877.777.9081

www.ndtahq.com | 27

GOVERNMENT NEWS* Air Mobility Command (AMC) begins moving Strykers into Afghanistan

by Capt. Justin Brockhoff, 618th Tanker Airlift Control Center Public Affairs AMC’s hub for global airlift, air refueling, and aeromedical evacuation is “all in” with its commitment to support joint worldwide operations, kicking off efforts in early June to airlift more than 300 Stryker vehicles to military forces in Afghanistan.

Moving the Strykers, which are assigned to the 5th Stryker Brigade Combat Team at Fort Lewis, is being accomplished by a combination of sealift and airlift assets.

The vehicles and equipment are being taken by ship for the majority of the trip around the world, and then the Air Force takes over to fly the last portion of the journey into land-locked Afghanistan.

AMC plans to move the 300-plus vehicles and support equipment, totaling nearly 9500 tons, into Afghanistan over the next two months on Air Force C-17 Globemaster IIIs flown by military crews and AN-124s operated by commercial partners. All efforts are being closely coordinated by USTRANSCOM.

Biden presents DLA, other agencies environmental awards

by Donna Miles, American Forces Press Service Vice President Joe Biden and Deputy Defense Secretary William Lynn III presented a Secretary of Defense Environmental Award to a former DLA depot in a Pentagon ceremony on June 3.

The former Defense Depot Memphis, TN, won in the Installation Environmental Restoration category. The facility, which closed in 1997 under a BRAC program, was cited for applying innovation and forward thinking to speed clean-up operations and successful land reuse.

28 |

Defense Transportation Journal

|

*Some articles have been condensed due to limitations in space.

Biden praised DLA and the other winners for leading the way in environmental stewardship as they lead the way in the nation’s defense. “This is an outfit that does it all,” Biden said. “When I look at the accomplishments of the teams we honor today, I am genuinely impressed by how our nation’s armed forces, while fighting two wars overseas and many other contingencies across the globe, can still lead the fight for effective environmental stewardship.”

Biden noted that the Defense Department, as the US’ largest employer, land owner, and energy consumer, is making “a gigantic impact” in committing to environmental protection. The winners have stood above the rest in protecting wetlands, promoting recycling programs, and preserving archeological sites through “innovation, improvising, as well as simple, plain hard work,” he said. “But they don’t stand alone,” he added, pointing to the extensive environmental focus throughout the department.

The $4.3 billion proposed for the department’s environmental programs in fiscal year 2010 will continue this effort, Biden said. “Since the DOD is the singlelargest consumer of energy in US, it is important that we also be a leader in efficiency and in using renewable fuels.”

Ashton Carter, Undersecretary of Defense for Acquisition, Technology and Logistics, opened the ceremony noting the lasting impact the awardees’ “extraordinary contributions” will have. “These men and women are committed to maintaining and restoring our natural resources, not only to address the complex security challenges, but to ensure that generations to come will benefit from our nation’s unquantifiable richness,” he said. The Secretary of Defense has been recognizing installations, teams, and individuals for outstanding achievement in environmental management each year since 1962. A panel of experts representing federal and state agencies, academia, and the public selected this year’s winners.

The other environmental award winners honored were: • Camp Ripley Maneuver and Training Center, a Minnesota Army National Guard facility, was the winner in the Large Installation Natural Resources

August 2009

•

•

•

•

•

•

Conservation category. With more than 19 miles of Mississippi River frontage, it was recognized for its role in protecting the river and its delicate ecosystem.

Fort Drum Cultural Resources Team, Fort Drum, NY, won in the Team/Individual Cultural Resources Management category. The team was honored for its role in protecting more than 240 prehistoric and 700 historic archeological sites, as well as six districts on the National Register of Historic Places.

US Army Garrison Bamberg, Germany, won in the Overseas Installation Environmental Quality category. The post was honored for its environmental management system that promotes pollution prevention, recycling, public health, and conservation.

Naval Air Station Whidbey Island, WA, won in the Non-Industrial Installation Pollution Prevention category. The base was recognized for its combined pollution prevention efforts credited with reducing hazardous waste, solid waste, air and water contaminants, and other pollutants.

Vandenberg AFB, CA, won in the Installation Cultural Resources Management category. The base was honored for implementing an integrated cultural resources management plan that protects and preserves more than 1600 irreplaceable archeological resources and historic properties, 14 rock art sites, and other cultural assets.

Environmental Management Division, Hill AFB, UT, won in the Industrial Installation Environmental Quality category. The division was recognized for environmental excellence in managing nearly 1 million acres of the Utah Test and Training Range as it supported five wings and about 40 tenant units.

The 14th Civil Engineer Squadron Pollution Prevention Team, Columbus AFB, MS, won in the Team/Individual Pollution Prevention category. The team was honored for its environmental program management efforts that include an innovative glass recycling program, increased use of biodiesel and other alternative energy sources, and Earth Day-related education outreach. DTJ

Doing Our Part DoD’s Partner of Choice for Strategic Sealift

Leading the Way in Service Excellence

www.arrcnet.com Tel: (201) 307-1626 Our Fleet: FREEDOM · RESOLVE · HONOR · LIBERTY · COURAGE · INTEGRITY · PATRIOT · INDEPENDENCE II

COL Denny Edwards, USA (Ret.) Since this is the annual Passenger Travel issue of the DTJ, our main thrust this month centers on a travel subject that is about to impact all of us who may be planning to travel to Canada or Mexico . . . or cruise in the Caribbean.

WHTI. What does it mean? Is it just another government acronym? It stands for the Western Hemisphere Travel Initiative, a result of the Intelligence Reform and Terrorism Prevention Act of 2004, and it changes documentation requirements of cruise passengers and other travelers returning to the United States by land and sea. The law took effect 1 June 2009. The biggest impact on travelers is that a state driver’s license, birth certificate, and proof of citizenship will no longer suffice. Now you must have a Passport ($100) or a new wallet sized Passport Card. This new card (pictured here) costs $45 dollars for first time applicants and is valid for 10 years just like a regular passport. But, it is good only for travel in the Western Hemisphere by land or sea. It is not valid for international air travel.

The new Passport Cards utilize a Radio Frequency Identification (RFID) microchip similar to what most of us are familiar with in the transportation world. The microchip in the Passport Card, however, stores no personal data, because of privacy concerns. Instead, the chip contains a personal ID number that can be cross referenced with a secure government database. Several states (Washington, New York, Vermont, Michigan, and Arizona) are also using the RFID technology in Enhanced Driver Licenses (EDLs). EDLs, as well as the “Trusted Traveler Program” cards such as NEXUS, SENTRI, and FAST, are also acceptable under the WHTI. You can get more detailed information about the WHTI and the new Passport Card on several web sites. Among the most popular are www.dhs.gov, www.travel.state.gov, and www.cbp.gov. The most user-friendly site according to our experience seems to be www.getyouhome.gov. DTJ 30 |

Defense Transportation Journal

|

Pass port Boo k

rt spo

rd Ca

s Pa

Thank you for the article you wrote in the April 2009 DTJ about the SS United States. The images and the article brought back many memories.

My brothers and I were born in the South of England in the early 60s while my father worked for the DOD. When it came time for my parents to move back to Washington in 1966, their travel orders provided them a choice to travel by plane or by ship. They chose to pack up their young family and go aboard the SS United States. While my parents were both born and raised in the USA and traveled back and forth often, this trip marked the first time my brothers and I would travel to the United States. I was young, but still remember our arrival to New York City in the summer of 1966.

Recently, when I was working in Philadelphia, I got to see the ship up close sitting in dock just off of I-95.

Rusted and in a state of disrepair, she still looked majestic. This ship will always be special as it was my transportation to the greatest country on Earth. I certainly hope that one day this great ship will one day be put back into service.

Thank you again for writing such a nice article.

Kind regards, Bryan Scott Enterprise Rent-A-Car

Passport Cards - PROs

Passport Cards - CONs

• • • •

• Limited Travel Usage – Western Hemisphere/ and only by land or sea travel • Easier to Loose or Misplace – easily mistaken for another card • Can Exacerbate an Emergency – if return by air is necessary in the event of an emergency, and traveler does not carry a Passport Book • Private Security Concerns – possibility of unauthorized tracking • Not Recognized – the Passport Book remains the “Gold Standard” in worldwide travel

Cheaper – first time purchase & renewal Speedy Turn Around – from application to receipt Easier to Carry – wallet size laminate Eliminates Long Wait at Border Crossings – RFID readers authorize travelers and wave them through checkpoints quickly—useful for people who live in border towns or who frequently travel to these regions on business • Increased Security Precautions – due to centralized data storage: if stolen, the Passport Card reveals less data about the holder than a Passport Book • Revenue Stream – for the government and the IT industry • Standardized Travel Documents – only in certain territories/states at present—helpful for those who do not hold a driver’s license, necessary documentation for Passport Book application

August 2009

freedom

Landstar Government Services delivers freedom from worrying about your most demanding transportation and logistics needs.

Whether you’re moving military tanks or school textbooks, Landstar Government Services delivers. Our proven track record and unparalleled commitment to safety ensures U.S. government agencies worldwide get reliable, responsive transportation solutions for every shipment, every day.

As a leader in protective services and movement of arms, ammunition and explosives, Landstar is ready to support our armed forces whenever U.S. troops are deployed.

Landstar has a reputation for providing the same care and precision whether transporting space shuttle engines for NASA or moving mail for the U.S. Post Office.

Just one phone call delivers access to complete over-the-road, expedited, air, logistics and multimodal services. The Landstar system is a network of more than 1,300 independent sales agent locations and more than 32,000 available truck capacity providers.

¤ oåå ||Ï ÉoåoËVËÝÝݱ ? aÄÍ?Á±W Ë www.ndtahq.com | 31

Education Fairs and Resources— What’s in it for you?

By Irvin Varkonyi | ivarkonyi@apus.edu Marketing Manager, Adjunct Professor, Transportation and Logistics, American Military University/American Public University Chair, NDTA Professional Development Subcommittee Learning Objectives • Understanding WHAT to look for.

• Becoming familiar with WHO attends.

• Identifying WHERE to find your resources.

• Determining WHY there are benefits.

• Planning WHEN the time is right.

• Opening the possibilities of HOW to get it done.

• Learn of EDUCATIONAL ASSISTANCE for military spouses.

T

he Department of Defense (DOD) values the education and professional development of all personnel— active duty and civilian—during their employment and even after they move on to other assignments or retirement. The DOD services and support agencies, such as the Defense Logistics Agency (DLA), hold Education Fairs that introduce various programs and opportunities.

What are Education Fairs?

Education Fairs are organized events that give attendees the chance to explore a variety of educational and training resources and learning venues. Often, these fairs are presented by formal or informal educational consortia, who work with training coordinators.

Who attends Education Fairs?

Supply and demand come together at Education Fairs. Representatives (recruiters, faculty, staff, and students) of learning institutions are the “Supply:” they share helpful information with service members, their dependants, and government employees—the “Demand”—who are seeking career advancement and broader horizons. Institutions include: • Traditional brick and mortar, accredited, degree granting institutions • Online accredited degree granting institutions

32 |

Defense Transportation Journal

|

• Hybrid institutions that combine traditional and online learning • Training institutes focused on certificate programs • Organizations focused on industry certification Where do you get information about Education Fairs?

Check with your local training office, and visit the DLA Training Center (DTC) web site, which shares a tremendous amount of information about programs available to you. The DTC provides a wealth of services for DLA personnel as well as those who work in organizations that are co-located with DLA. The mission of DTC is to ensure that the DLA workforce receives the necessary skills and knowledge required to support attainment of the Agency’s strategic goals and objectives. Additionally, DTC can provide a wide range of services to the Federal community (see www.hr.dla.mil/dtc/about.html).

Publications include DLA Today, Extending the Enterprise; DLA Supply Management Overview; and Mentoring Matters Handbook. DTC is based in Ohio with representatives in Michigan, Missouri, Pennsylvania, and Virginia. DTC instructors serve a global workforce by providing on-site training throughout the US, Europe, and the Middle East. DTC has won numerous awards for innovative course design and delivery. For more information, call 1-800-458-7903.

Why you should go to Education Fairs?

There are many options to obtain information about education and professional development: word of mouth, the Internet, direct mail solicitation, advertising in magazines or radio/TV, pop up ads as you surf the web, etc. By taking a couple of hours of your time at an Education Fair, however, you will be able to talk one-to-one with recruiters who will help you match your needs with institution capabilities.

August 2009

When should you go?

Pre-planning is important before you go to an Education Fair. Your time will be limited, so you’ll want to visit those institutions in which you have specific interests, if possible. Get advance information on which schools will have representatives at a fair and check them out before you go.

How do you get this done?

Develop a checklist that can include: 1. What is the value of an Associates of Arts degree for me? A Bachelors of Arts? A Master of Arts?

2. What is the value of a certificate in transportation? Or acquisition? Or other?

3. Should I enroll in a logistics degree to formalize my “On the Job” training?

4. To reach senior positions, will I do better with a degree in business administration?

5. If my degrees were earned some time back, would I be better with professional certification such as APICS’ Certified Supply Chain Professional or SOLE’s Certified Professional Logistician?

6. Do I have time to attend in person classes?

7. Will travel for my job suggest that online classes will offer more flexibility?

8. Is it better to attend classes where fellow students come from a variety of backgrounds, or ones in which students will have similar professional experiences?

Introducing: The Military Spouse Career Advancement Account All active duty military should be aware of the “Military Spouse Career Advancement Account (CAA) project, with a maximum of $6000 available to applicants. The CAA registers universities who wish to participate, along with military spouses. A full list of eligible facilities and providers is available. If you have questions or need assistance regarding MyCAA participation or Financial Assistance invoicing processes, please contact the MyCAA School Liaison at MyCAASchools@MOSCenter.us. continued on page 36

Developing a National Framework for Infrastructure (PART II)

Part I appeared in the June 2009 issue of DTJ; it introduced steps for designing a framework and modal challenges that could be expected along the way.

tation throughout the world. In addition, state and local leaders and their constituents Principal Consultant, Perot Systems must express support for this idea by contacting their local representatives by phone Implementing and Maintaining a National Framework for Infrastructure or in writing, requesting that they provide ollowing the design of the National The STC would not only provide travelcontinuing support for such a framework.

Framework, it will be necessary to esers the privilege of obtaining access to travel Consideration should be given to develtablish the policies, processes, and proservices using any mode of transportation, it oping a public/private partnership to overcedures necessary to implement and mainwould also serve as a travelers security idensee the process. In the current economic tain the framework. This will include not tification, confirming to the participating climate, the timing is right for establishing only establishing the appropriate funding organization the presence of a trusted travsuch an entity. Such an organization would mechanisms to implement and maintain eler who does not have any outstanding civil ensure that the nation’s interests and requirethe Framework, but also establishing the or criminal restrictions that could jeopardize ments are addressed, while at the same time legal, statutory authority required to authothe traveling public. Finally, the traveling the innovation and entrepreneurial interests rize a Federal agency, National authority, or public would have a One-Stop-Travel Card. of the private sector are included.

Regional, State, and/or local authority to Use of such a card is not that far off. The If there is a time to advocate such an idea, manage and maintain the infrastructure.

Transportation Worker Identification Card the timing is now! Highway infrastructure In following the system engineering life (TWIC) being tested and used at select ports funding under the Safe, Accountable, Flexcycle, once the design of the framework is around the country is a good first step. ible, Efficient Transportation Equity Act: A completed, ie, the basic system architecture End Note. As a first step toward the Legacy for Users (SAFETEA-LU) expires has been completed, many challenges readoption of a national infrastructure frameOctober 1, 2009. Although the highway inmain. The institutional challenges involved work, it is critical to gain support for the frastructure is only a piece in the National Infrastructure puzzle, it is an important and that must be overcome when designing idea. Our leaders in both the public and pripiece that will go a long way in getting our and implementing a national framework vate sectors must communicate to our Connation’s transportation system moving in the include identifying who is in charge and gressional leaders in both the Senate and the right direction to be globally competitive who sets the priorities, what is the fundHouse the need for such a framework and and facilitate trade and transportation with ing source, and what is the funding mix, how it will lead to job growth and economic Mainfreight4.562x3.625.qxp:Layout 1 10:46 PMpartners.

Page 1 our1/19/09 international trading ie, public versus private. In addition, there expansion and facilitate trade and transporDTJ will be numerous operational and technical considerations that must be addressed, such as interoperability, criteria for use, and technology applications and requirements.

We Must Adopt a New Philosophy.

In order to successfully design and deploy a national framework for infrastructure, all of the involved stakeholders must adopt a “new way of thinking:” not what’s in it for me, but, what’s in it for the Nation. “We must start thinking out of the box!” Imagine having a so-called SMART Transportation Card (STC) which would allow you to utilize EZ-PASS lanes and access participating highways and thruways.

International Air • Ocean • Brokerage • Warehousing Such a card could also allow you to:

Lee Jackson

F

Special people

1. Utilize High Occupancy Vehicle (HOV) lanes and access certain participating highways and thruways; 2. Purchase tickets and travel on AMTRAK trains; or 3. Purchase airline or vessel boarding tickets.

Special company

3PL • Inventory Control • Domestic Distribution

800-283-8888 www.mainfreightusa.com www.ndtahq.com | 33

HONOR ROLL

OF

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS A.I.R., Inc—USA d/b/a M Transport AAR Mobility Systems ABF Freight System, Inc. Air Transport Assn. of America Air Transport International, LLC AIT Worldwide Logistics, Inc. All State Express American Maritime Officers American Public University System American Trucking Associations American United Logistics ARINC Army Air Force Exchange Service Arven Freight Forwarding, Inc. Associated Global Systems Baggett Transportation Co. BNSF Railway Co. Bender Shipbuilding and Repair Co., Inc. Boyle Transportation Cargo Transport Systems Co. Carlson Hotels Worldwide Chalich Trucking, Inc. Chamber of Shipping of America Comtech Mobile Datacom Corporation CRST International, Inc. CSC Crowley Maritime Corp.

CWT SatoTravel C2 Freight Resources, Inc. Delta Air Lines, Inc. 2

REGIONAL PATRONS AAAA Forwarding, Inc. Access America Transport, Inc. Acme Truck Line, Inc. Advantage Rent-A-Car AFC Worldwide Express American Moving & Storage Assn.

Association of American Railroads Asynchrony Solutions, Inc. Avis Budget Group AWARDCO Freight Management Group, Inc. BEC Industries, LLC Benchmarking Partners C5T Corporation The Cartwright Companies Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals, Inc. C.H. Robinson Worldwide, Inc. Chassis King C.L. Services, Inc. Coastal Maritime Stevedoring, LLC

34 |

Dynamics Research Corp.

Enterprise Database Corporation Enterprise Rent-A-Car Fikes Truck Line GE Aviation General Dynamics/American Overseas Marine GeoDecisions Global Maritime & Trans. School-USMMA Greatwide Truckload Management Hi-G-Tek, Inc. Intermodal Association of North America (IANA) Intermarine, LLC International Longshoremen’s Association, AFL-CIO Intl. Organization of Masters, Mates and Pilots ITLT Solutions, Inc. Interstate Distributor Co. KGL Transportation Co. Kansas City Southern Keystone Shipping Company Knight Transportation Kuehne + Nagel, Inc. Liberty Maritime Corporation LMI Lockheed Martin Aeronautics Co. Mack Trucks, Inc. ManTech International Corp.

Martin Logistics, Inc. Matson Navigation Co., Inc.

Mayflower Transit McCollister’s Transportation Systems, Inc. Marine Engineer’s Benefits Association Menlo Worldwide Mercer Transportation Co. Mobility Resource Associates MPRI, a division of L-3com National Air Carrier Assn., Inc. National Van Lines New England Motor Freight, a Shevell Group Co. North Carolina State Ports Authority Numerex NYK Logistics Americas OAG Ocean Shipholdings, Inc. Old Dominion Freight Line, Inc. Omega World Travel Omni Air International, Inc. OSG Ship Management, Inc. Overdrive Logistics, Inc. Owner-Operator Independent Drivers Association Pacer Transport Perot Systems Pilot Freight Services Port of Beaumont Powersource Transportation, Inc. Pratt & Whitney PRTM Management Consultants, LLC Priority Solutions International RAITH-CTS Logistics

Ravens Group, Inc., The Savi Technology Sealed Air Corp.

Sealift, Inc. Seafarers Int’l Union of N.A. AGLIWD Sea Star Line, LLC Southeast Vocational Alliance Southwest Airlines SRA International, Inc. Stanley Associates, Inc. SSA Marine Textainer Equipment Management TQL Totem Ocean Trailer Express, Inc. (TOTE) Transportation Institute Transportation Intermediaries Assn. (TIA) TRI-STATE Expedited Service, Inc. Tri-State Motor Transit, Co., (TSMT) TTX Company Tucker Company Union Pacific Railroad United Airlines UPS Freight United Van Lines, Inc. University of Kansas, Transportation Research Institute UTi Worldwide, Inc. VT Halter Marine, Inc. Wagler Integrated Logistics, LLC XIO Strategies, Inc.

CSI Aviation Services, Inc. Delaware River Maritime Enterprise Council (DERMEC) Dollar Thrifty Automotive Group EADS North America Europcar Car & Truck Rental Federated Software Group FlightWorks Fox Rent A Car General Freight Services, Inc./ Coyote Logistics LLC Great American Lines, Inc. Green Valley Transportation Corp.

GTS Group Hilton Hotels Corporation The Howland Group, Inc. HudsonMann, Inc. Hyatt Hotels and Resorts The Indiana Rail Road Company JAS Forwarding (USA), Inc. Kalitta Charters, LLC Korman Communities AKA a division Labelmaster Software

Leadership Logistics & Consulting, LLC Liberty Global Logistics LLC Limitless International, Inc. Logistics Management Resources, Inc. LTD Management Company, LLC MacGREGOR (USA), Inc. Maersk K.K. Marriott International McLane Advanced Technologies MCR Federal, LLC (MCR) MBA | Morten Beyer & Agnew Naniq Systems, LLC NCI Information Systems, Inc. Oakwood Corporate Worldwide ODINTechnologies Panalpina Patriot Contract Services, LLC Payless Car Rental Philadelphia Regional Port Authority Port of Port Arthur Port of San Diego PowerTrack, US Bank Quality Support, Inc.

R+L Global Services Reckart Logistics, Inc. Rentacrate LLC Seabridge, Inc. Sea Box, Inc. SkyLink—(USA) SLT Expressway SR International Logistics, Inc. Stratos Jet Charters, Inc. Trailer Bridge, Inc. Trailways Transportation System Transcar GmbH Trans Global Logistics Europe GmbH Truva International Transportation & Logistics Unimasters Logistics PLC U.S. Suites USMMA Alumni Foundation, Inc. Utley, Inc. The Virginian Suites Veteran Enterprise Technology Services, LLC Yurtiçi Logistics Supply Chain Management and Distribution Inc.

Defense Transportation Journal

|

August 2009

Agility Defense & Government Services + PLUS American Shipping & Logistics Group (ASL) + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express + PLUS Choice Hotels International + PLUS CEVA Logistics + PLUS FedEx + PLUS Global Aviation Holdings, Inc. + PLUS Horizon Lines, Inc. + PLUS IBM + PLUS InterContinental Hotels Group + PLUS Landstar System, Inc. + PLUS Maersk Line, Limited + PLUS National Air Cargo + PLUS Panther Expedited Services, Inc. + PLUS Ports America Group + PLUS Science Applications International Corp. (SAIC) + PLUS Universal Truckload Services, Inc. + PLUS YRC Worldwide + PLUS Accenture American Roll-On Roll-Off Carrier, LLC The Boeing Company Booz Allen Hamilton Bristol Associates CorTrans Logistics, LLC CSX Transportation DB Schenker DHL Evergreen International Airlines, Inc. Hapag-Lloyd USA, LLC

The Hertz Corporation International Shipholding Corp.

Lockheed Martin Norfolk Southern Corporation Northrop Grumman Corporation The Pasha Group Qualcomm Incorporated R&R Trucking Team Worldwide UPS UTXL, Inc.

These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

www.ndtahq.com | 35

continued from page 32

Dr. Kent N. Gourdin

The Things They Carried The Things They Carried, by Tim O’Brian, published by the Broadway Books, 1998, 246pp, paperback, $14.95.

T

his book appealed primarily to my “national defense” side as opposed to my “transportation” side. Some of you may have already read it when it was originally published in 1990. This is a literary work chronicling the experiences of a fictional infantry company in Vietnam.

There are 35 laudatory reviews presented at the front of the novel, but to quote from the book itself: “They carried malaria tab-

lets, love letters, 28-pound mine detectors, dope, illustrated Bibles, each other. And if they made it home alive, they carried unrelenting images of a nightmarish war that history is only beginning to absorb. Since its first publication, [the book] has become an unparalleled Vietnam testament, a classic work of American literature, and a profound study of men at war that illuminates the capacity, and the limits, of the human heart and soul.” Veterans of all ages will find this a moving and rewarding read, but perhaps none more so then those of us who served during the “Vietnam Era.” DTJ

DTJ Index of Advertisers American Military University....... pg. 27 APL...................................................... pg. 9 ARC.................................................... pg. 29 Bennett International Group........... pg. 2 Boyle Transportation........................ pg. 6

Budget.............................................. pg. 24 Choice Hotels.................................. pg. 11 FedEx...................................................... C4 InterContinental Hotels Group..... pg. 19 Landstar............................................ pg. 31

continued from page 27

these SmartChain 6.0 adaptations will be supported in future product upgrades.

Also, SmartChain includes a ServiceOriented Architecture (SOA) framework that supports the exchange of business intelligence with other legacy systems.

With Savi SmartChain 6.0, it is easier than ever to manage assets, shipments, and inventory moving within facilities and throughout the global supply chain. Building on two decades of commercial and government experience, Savi knows how to improve supply chain operations and capture savings against your organization’s bottom line.

Union Pacific Railroad Union Pacific Railroad is on schedule to put a sixth “next-generation” ultra-low emitting Genset switching locomotive into service at its Roseville, CA, rail yard.

The Genset will be field tested at Union Pacific’s Fort Worth, TX, rail yard before being deployed in Roseville in July. This 36 |

Defense Transportation Journal

|

Maersk Line, Limited....................... pg. 1 Mainfreight...................................... pg. 33 SAIC........................................................ C3 Southwest Airlines........................ pg. 17 United Van Lines................................... C2

locomotive’s arrival brings Union Pacific’s Genset fleet to 165, the world’s largest and almost one-half of all built.

This version of the Genset switcher employs six traction motors for increased power over the previous Gensets, which operated on four traction motors. The newer model maintains all the environmentally friendly standards of the previous Genset model.

“Genset locomotives can handle all rail yard duties and continue to be the standard bearer for new US yard locomotives,” said Mike Iden, Union Pacific general director, car and locomotive engineering. “We constantly are looking for ways to make our operations more efficient and safe. This next-generation Genset technology is maturing, while being able to reduce greenhouse gas emissions by 37% compared to older switching locomotives.” Currently, every major US railroad operates Genset locomotives, as does one Canadian railroad and even a South American railroad. The original prototype Genset locomotive was delivered to Union Pacific in late 2005.

One of the Genset’s primary advantages is that its environmental benefits truly are calculated on a “well to wheels” basis, which means looking at exhaust emissions

August 2009

Sign up TODAY to become a MyCAA partner school, agency, or organization by visiting DOD’s AI Portal (https:// aiportal.acc.af.mil/aiportal/Register.aspx).

Identify and register a “user” from your billing department in this virtual online payment system. Enter the information for your “user” and choose your organization in “Lookup School.”

Ask your academic advisors and financial assistance counselors to coach military spouses in selecting a “career goal” and choosing classes or programs from your school or organization to meet that goal. These classes or programs are then documented by each military spouse in his/her “Career Plan” available in the “Career” section of the spouse’s MyCAA account. Information about MyCAA, including contacts for technical assistance and MyCAA Career/Education Consultants, is available at https://www.militaryonesource.com/. Follow the link near the bottom of the page to Military Spouse Career Advancement Accounts. DTJ on a complete life-cycle basis starting with the origin of the fuel or energy source down to the work performed.

“A lot of work is ongoing in terms of developing new and better locomotives and other vehicles,” Iden said. “When calculating true fuel savings or greenhouse gas emission reductions, it is important to include every step in the process as we do with the Genset.”

Genset locomotives use readily available diesel fuel, as do older locomotives, but significantly less of it.

The ultra-low emitting Genset locomotives reduce emissions of the oxides of nitrogen (which contribute to smog and ozone formation) by up to 80% and particulate matter by 90% compared to older switching locomotives. Because Genset locomotives use up to 37% less fuel than older locomotives, their greenhouse gas footprint is that much lower. Genset locomotive emissions typically are 50% better than current US Environmental Protection Agency regulatory limits for new locomotives.

“Union Pacific operates the world’s largest Genset fleet, and we will continue to use our hybrid locomotive experience to develop more advanced and cleaner locomotive technologies in the future,” Iden said. DTJ

Science Applications International Corporation delivered, prepared, and fielded over 9,000 MRAP militar y vehicles in one year. Our fast and ef ficient joint logistics integration program provides solutions from C4ISR electronics networks to analy tics to total asset visibilit y. Smar t people solving hard problems.

For detailed information, visit www.saic.com/logistics

Energy I Environment I National Security I Health I Critical Infrastructure Š 2009 Science Applications International Corporation. All rights reser ved.

NYSE:SAI

We’re trained for special services.

In the U.S. Armed Services, there’s no room for error. You need access to goods and information from around the world and a shipping company with the reliability and expertise to deliver it. With FedEx you have access to more than 220 countries and territories and the flexibility to handle whatever comes your way.

fedex.com ©2008 FedEx