Defense Transportation Journal

SDDC Symposium/NDTA Expo Wrap-up

June 2012

www.ndtahq.com

Improving Performance

Transportation Protective Services BNSF Railway: Strategic Transportation Partner CSX Transportation Prepares for Freight Rail’s Future

Logistics. Right Now. NATIONAL SECURIT Y

SAIC understands that in military logistics, getting the right part at the right cost to the right place at the right time – every time – to ensure mission readiness is critical.

We’ve successfully managed the joint logistics integration for MRAPs in theater, and strengthened the supply chain for DoD land and aviation tires around the world.

Smart people solving hard problems.

Visit us at saic.com/logistics

NATIONAL SECURIT Y • ENERGY & ENVIRONMENT • HEALTH • CYBERSECURIT Y

2 |

Defense Transportation© Journal | reserved.

June 2012 SAIC. All rights

NYSE: SAI

maersklinelimited.com

Every Voyage has a Purpose

We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore. Our commitment to U.S. troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families. We are proud of the role we play in their success.

www.ndtahq.com | 1

Copyright © 2012 United Parcel Service of America, Inc.

3 WAYS LOGISTICS KEEPS YOU IN COMMAND OF ANY SITUATION. The military runs on logistics, and no one understands logistics better than UPS. From factory to foxhole for military support, or from agency to aid station for humanitarian relief, wherever it’s mission-critical, we’re mission-ready.

1) GLOBAL REACH As the world’s

2) OUTSTANDING RELIABILITY

3) ONE DAY QUOTE DESKS

largest transportation company,

Proven speed and innovative

UPS offers time-sensitive quotes

UPS serves more than 220 countries

technology enable us to deliver

in one day for your most urgent

and territories with an integrated

more guaranteed packages on

shipments, including air, ocean

network that can move any weight,

time around the world, and remain

and LTL freight. Our team is

anywhere by land, air and sea. Our

flexible to easily respond to

available for extended business

broad portfolio of services redefines

evolving demands and unforeseen

hours Monday-Friday to provide

end-to-end support to maximize

challenges with automated shipping

competitive pricing when you

your readiness.

systems and full in-transit visibility.

need it most.

One Day Quotes for air and ocean freight: govsupport@ups.com or 1-888-830-3570 One Day Quotes for LTL freight: ltl.upsfreight.com or 1-800-227-8046

thenewlogistics.com/government

June 2012

FEATURES June 2012 • Vol 68, No. 3 Publisher

LTG Ken Wykle, USA (Ret.) Editor

Kent N. Gourdin

Improving Performance in Transportation Protective Services

8

By Marc D. Boyle

BNSF Railway: Strategic Transportation Partner

12

By John Lanigan

Managing Editor

Christine Pooré | christine@ndtahq.com Contributing editor

Denny Edwards

Circulation Manager

Leah Ashe

Copy editor

Jeff Campbell

CSX Transportation Prepares for Freight Rail’s Future

16

By Colonel Jon Meyer, USAF (Ret.)

SDDC Symposium/NDTA Expo Wrap-Up

20

Publishing Office

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

Debbie Bretches

Advertising Account Manager

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

Cover Photo: US Soldiers from 3rd Battalion, 116th Field Artillery Regiment, Florida National Guard, based in Plant City, FL, guide an M270 Multiple Launch Rocket System onto a railroad car in Avon Park, FL, March 22, 2011. Members of Florida National Guard were preparing for an upcoming annual training period at Fort Stewart, GA. Soldiers of 3rd Battalion, 116th Field Artillery Regiment will conduct annual training to certify on the M270 Multiple Launch Rocket System, culminating in a live fire exercise. (US Army photo by Staff Sgt. Blair Heusdens/Released)

departments A-35 News | Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . 7

Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices.

Chapter spotlight | Jeff Campbell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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.

honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

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

NDTA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Professional Development | Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . 24

chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

A-35

NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President COL Mark Victorson, USA (Ret.) VP Membership COL Dennis Edwards, USA (Ret.) VP Marketing | Corporate Development Patty Casidy, VP Finance Lee Matthews Marketing | Corporate Development Manager Leah Ashe Manager, Data Base Sharon Lo Manager, Meetings and Special Projects Christine Pooré Associate Director of Communications Jeff Campbell PR Assistant | A-35 & Chapter Liaison Rebecca Jones Administrative Assistant to the President Carl Wlotzko Coordinator, Banquet & Special Events Angie Payne Forum Administrative Assistant For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit our Association website at www.ndtahq.com.

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and 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 logistics and 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 logistics and 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 and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a DTJ Publication Schedule, Media Kit and Archives, visit /www.ndtahq.com/education_dtj.htm 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 Christine Pooré, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 christine@ndtahq.com

4 |

Defense Transportation Journal

|

June 2012

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

I

as well as other A-35 leaders often get asked “What can NDTA do for me?” or “What does A-35 mean?” We love that question because our developed skills, our careers, and our personal relationships are all examples of what NDTA has done for us and leadership by example is the best kind!

So, as an A-35er, what can NDTA do for you? NDTA is the Association for Global Logistics & Transportation. The A-35 program builds on that being an active component of NDTA by providing opportunities and developing tomorrow’s leaders. A-35 is defined as the Action 35 Committee and putting Action into place is what we do.

We actively provide education, mentoring, and networking opportunities at NDTA Chapters throughout the US and overseas as well as at the National Level.

Speaking of the National Level, now is the time to think about the 66th Annual Forum which will be held in Anchorage this September. Engaging at the National level is important to career growth for DOD civilian employees, active duty military, and industry partners. Our junior professionals, commonly known as A-35ers, will have specific educational opportunities geared toward us beginning with the A-35 breakfast. At this breakfast, A-35ers

will meet in small groups with senior DOD and Industry leaders engaging in a program that will provide education on how to be an effective leader.

In addition to breakfast, we will hold a Professional Session which will consist of Junior Professional and Senior Leadership dialogue. This session will allow Junior Leaders to demonstrate the importance of our role and its impact on the war fighter.

Junior Professionals and Senior leaders who serve across the transportation spectrum will actively participate. In addition to our A-35 specific program, the Forum will provide educational opportunities for us through the other professional sessions including information on Supply Chain Efficiencies, Personal Property, and Cost Efficiencies as well as others.

Of course we will still host the Annual Scholarship Duck Race and the A-35 5K Fun Run/Walk, so be sure to participate in both of these activities to support the scholarship fund and for your own physical fitness!

If you are already an active A-35er, an A-35er at heart, or just someone who understands the importance of our program, spread the word and encourage others to engage. As Uncle Sam says, “I Want You”; those of us who have already benefited want you to benefit also! DTJ

THE FOUR PILLARS OF THE A-35 PROGRAM • Professional Opportunities for Leadership Development & Recognition • Mentorship and Coaching Programs • Networking with Leaders in Government, Military and Industry • Selfless Service to our Nation & Local Communities

utilizing improved local lines into and out of San Francisco and Los Angeles, rather than the dedicated new tracks envisioned earlier. The latter would now be confined to rural parts of the state. The good news is that this approach is cheaper; the bad news is that it slows the point-to-point travel time between the two cities, which is now targeted for three hours.

What works against wide-spread popular support of high-speed rail passenger service in the United States, is that our highway and air transportation systems are so sophisticated and pervasive (our relatively cheap gasoline doesn’t help either). As a result, our culture has lost sight of rail as a viable choice for meeting our travel needs. To be brutally frank, unless you travel the Washington DC-New York-Boston corridor, I think most of us never even think of going anywhere by train. And yet, rail is the preferred mode of long-distance travel in just about every other country in the world where going from city center to city center by train is the norm. Unfortunately, in many American cities, downtown stations simply don’t exist any longer, or have been repurposed into shopping areas. Ironically, one cannot actually travel to San Francisco by rail. The train stops in Emeryville on the east side of the Bay, with the final leg to or from San Francisco being done by bus.

I wish I knew the answer. As a believer in the free market, I would have to conclude that there is virtually no evidence of customer demand for wide-spread rail passenger service, high-speed or otherwise.

And yet, I feel like there should be. Perhaps a high-speed line or two (San Francisco to Los Angeles, St. Louis to Chicago, etc.) would prove the viability of the concept; I suspect if these ventures failed to be profitable, none would be viable, and that would be that. But if they can work, and travelers around the country see the appeal of rail transportation, other projects

nities

O

ne transportation issue that continues to fascinate me is the lack of true high-speed rail passenger service in the United States. Though massive amounts of money were offered to the states as a part of the economic stimulus a few years ago, the only one to truly bite was California, which received $3.3 billion in US funds that it has to use by September 2017. Florida initially won money as well, but subsequently returned it citing state leadership’s fear that the project would never be economically viable.

Sadly, California is facing the same reality.

As noted in a recent Wall Street Journal article, in November 2008, when the system’s cost was estimated at $45 billion, 53% of voters approved nearly $10 billion in state bonds to help fund it. But sentiment shifted as the bills mounted and after planners said the first leg of the Los Angeles-San Francisco route would be through the sparsely populated and largely agricultural Central Valley. As budget estimates continued to climb, voter support waned; by February of this year, 53% of likely voters said they oppose it. The expected budget peaked at a whopping $98.5 billion, before being cut back to $68.4 billion last year as a way to regain public support for the project.

The experience on the west coast illustrates the challenges associated with attempting to actually adopt high speed rail (which the US Department of Transportation defines as reaching sustained speeds of more than 125 mph). Most of us tend to think of the TGV in France or the bullet trains in Japan when we envision high speed rail; trains that routinely travel well in excess of that speed; a capability that requires upgraded and often dedicated track. Putting up a completely dedicated rail line in the United States would be almost impossible today due to environmental concerns and social costs related to doing so. As a result, the California project now calls for a “blended” approach

i

N ew O s– p

rtu

Director, Global Logistics and Transportation Program College of Charleston

er

po

Dr. Kent N. Gourdin, Editor, DTJ

New Front

The Future (or lack thereof) of High-Speed Rail

EDITORIAL

M & EXPO FORU Anchorage, Alaskafor NDTA - The Association 2012 Global September Logistics 22-26, & Transportation invites you to the

66th Annual Logistics and Transportation Forum & Expo “New Frontiers - New Opportunities”

Anchorage, Alaska September 22- 26, 2012 FREE Exhibitor Shipping from Tacoma to Anchorage!

For more info email Lee Matthews lee@ndtahq.com or Denny Edwards denny@ndtahq.com Join LOGISTICIANS and TRANSPORTERS from Military, Government, and Commercial Sectors to SHARE knowledge, train, and learn. NETWORK with Industry Leaders and DISCOVER New

Frontiers and New Opportunities

could follow. I just wish the planning and construction phases could happen more quickly without compromising social and environmental concerns. California’s project would be finished in 2028, assuming it was even close to actually being started, which is not the case. The time has come to decide, as a nation, whether high-speed rail can be a viable part of our national transportation strategy or not. We have been on the fence long enough. DTJ www.ndtahq.com | 5

I

n the January/February issue of the DTJ, I commented on the pending cuts in the Defense Budget and projected reductions in the size of the Army and Marine Corps, in major acquisition programs, and many programmatic reductions. I continued by suggesting that while not yet clear, there would be business opportunities within the government military market in 2012.

As we get further into the fiscal year and the projections become more clear, the opportunities appear to have moved to the horizon. Opportunities for the remainder of 2012 will be in supporting our forces in the United States, supporting deployed forces, returning equipment from Iraq, the redeployments from Afghanistan, and other un-programed requirements.

Beyond 2012, the picture is coming into focus. As the United States pivots to the Pacific, the focus appears to be on Southeast Asia. The first contingent of 2,500 US Marines have moved to Darwin, Australia; plans are being made for the forward basing of warships in Singapore and rotating the crews. This will eliminate the need for lengthy trans-Pacific crossings on each deployment and allow for longer missions at sea. Consideration is being given to the possible rotational deployment of US Marines, basing of surveillance aircraft, and increased ship visits to the Philippines. There is also the possible expansion of Stirling naval base in Perth, Australia, partly to better accommodate visits by US aircraft carriers, and other warships. Additionally, the leadership is in talks with several other Southeast Asian countries about increasing the presence of United States ships, aircraft, and troops.

The United States has several mutual defense treaties with countries in the Pa-

cific region and will continue to conduct longstanding exercises with Korea, Japan, Thailand and the Philippines. The Department of Defense will continue to seek new opportunities for expanding existing training opportunities and engaging with new partners. While the emphasis may be on the Pacific region, the United States continues to have interest in Europe, Africa and South America. The intent appears to be to sustain and expand relationships in these areas through combined exercises.

While the requirements are still being developed, it is clear the focus is on the Pacific Region and conducting combined exercises with our friends and allies around the world. Transportation and logistics support is required to move and sustain troops and equipment for exercises, for rotating crews on ships that are forward deployed, and for the rotation of Marines to Darwin and potentially the Philippines. Now may be the time to develop your strategy for responding to the requirements once they are refined, and being prepared to respond to request for transportation and logistics capability.

This issue of the Defense Transportation Journal contains an excellent article on how to improve performance in transportation protective services through the use of score cards and incentivizing innovation, and on leveraging rail to reduce the costs of transportation and achieve cost savings.

These articles are pertinent in today’s constrained resource environment and emphasize gaining efficiencies.

Thank you for your confidence in our Association and the daily contributions each of you make in support of our nation’s economy and to our national security. DTJ

New Front

nities

NDTA President

N ew O s– p

rtu

LTG Ken Wykle, USA (Ret.)

er

po

Peering into the Crystal Ball

i

PRESIDENT’S CORNER

M & EXPO FORU Anchorage, Alaska

September 22-26,UPDATES 2012 ALASKA FORUM

New third exhibit period added Monday 24th September 5:30pm Over 65% of exhibit booths sold out! **First Forum Hotel sold out!** Reserve NOW at Anchorage Hilton 1-907-272-7411

W EL C ME

NEW corporate

members as of May 28, 2012

Sustaining patrons • Women In Trucking Association, Inc. Regional patrons • Garner Transportation Group • M-Pak Incorporated • TechGuard Security

corporate member upgrades Chairman’s circle Plus+ • McLane Advanced Technologies, LLC www.ndtahq.com | 7

Improving Performance in

Transportation Protective Services

By Marc D. Boyle, President, Boyle Transportation

I

n his Op-Ed in the Wall Street Journal1, now Deputy Secretary Ashton Carter outlined many prescriptions for the Department of Defense (DOD), including the following: “to incentivize productivity and innovation in industry, we must strengthen the connection between profit and performance in our business practices.” His blueprint document, “Memorandum to Acquisition Professionals” (September 14, 2010), further directed that “the Department should recognize and reward businesses and corporations that consistently demonstrate exemplary performance.” To illustrate this point, Dr. Carter cited a Defense Logistics Agency (DLA) program where “suppliers have their performance tracked via a vendor scorecard tool . . . and are eligible for preferred status based upon these measures.”

In applying these guidelines to the business of Transportation Protective Services (TPS) for DOD shipments of arms, ammunition, explosives, classified material and other sensitive material, key questions arise: • What metrics should be included in an objective TPS carrier scorecard?

• What constitutes “exemplary performance” as opposed to minimum acceptable standards?

• How can industry be incentivized to innovate?

The following is an industry perspective on how to best address these questions for the business of providing TPS. Scorecards

Most experts agree that supplier scorecards help to focus the supplier’s attention on improving performance. Any discussion of TPS scorecards must start with the many specialized safety and security requirements designed to protect this material in normal operations. These protec8 |

Defense Transportation Journal

|

June 2012

tions provide limited insurance against low probability, high consequence events such as a terrorist obtaining materials, using a hijacked vehicle in an attack, or a catastrophic highway accident. Accidents may result in a detonation that causes fatalities and destroys property, or in the loss or exposure of weapons systems or classified material. In storage, security-sensitive material can be safeguarded at a military facility through physical security measures that isolate the material and restrict access. In transportation, exposure to the public cannot be avoided while traveling on highways and railways. Therefore, operating practices that emphasize safety and security are especially critical. Since safety and security are also the basis for the premium paid for this form of transportation, it makes sense to measure how well carriers are performing in these areas of service quality.

It is essential to provide for constant attendance and surveillance of these security-sensitive materials while being transported. Using a common sense, “trust but verify” approach, DOD measures a carrier’s security compliance using covert, intransit surveillance inspections. The findings from these inspections could form a basis for a security score.

Safety performance measurements for carriers are readily available from the Department of Transportation’s website.

Rather than reinvent the wheel with a different measurement system for carrier safety performance, the Surface Deployment and Distribution Command (SDDC) uses a “whole of government” approach, and accesses this existing information on carriers from violations found on roadside inspections. According to DOT, higher scores are correlated with higher incidences of crashes (like golf, lower scores are better). Carrier scores

from the Safety Management System across seven critical safety areas, (Unsafe driving, Fatigued driving, Driver fitness, Controlled substances and alcohol, Vehicle maintenance, Hazardous materials and Crash indicator) could easily be incorporated into a scorecard.

Other measures on a carrier scorecard might include on-time pickup and delivery performance, and in-transit visibility reporting compliance.

Supplier scorecards have been an important tool for supply chain managers for many years. Best practice dictates that appropriate weights are established in each category and that objective, numeric values are used rather than subjective measures (e.g., 90, 85, 67 vs. Grade A, B, C) in order to foster continuous improvement.

While the scorecards themselves are important, the only way to drive performance improvements is by linking incentives for suppliers in order to, as Dr. Carter stated, “. . . strengthen the connection between profit and performance . . .” One way to do this is to reward suppliers with “exemplary performance” with preferred status, resulting in more business volume ,as he referenced in the DLA program.

Exemplary performance vs. minimum acceptable standards

It’s important to distinguish between suppliers that deliver exemplary performance and those that meet only the minimum acceptable requirements, (i.e. “the lowest common denominator”) by keeping track of actual performance. Why? Consider an example from another industry—Internet service providers. Suppose an organization decides on a service level standard based on market research that provides for 99.5% uptime, and then awards business at its various locations to different providers. The organization calculates the cost of

In a war fought with stealth fighters, smart bombs, and night vision, the most important weapon could well be thermal socks.

For more than 160 years, APL has been working to ensure our service men and women always have what they need to get the job done. Our unparalleled experience in ocean transportation and in-country logistics sets us apart from the competition. APL’s successful, long-standing relationship with the military proves that we have the resources and know-how to deliver when it counts. We won’t let you down, and more importantly, we won’t let down the troops who rely on the supply chain. We pride ourselves on being the mission critical link to success for our military yesterday and today, and we’ll be there for our troops tomorrow.

To learn more about how we serve those who serve, visit www.apl.com/usflag.

U.S. Flag Services

www.ndtahq.com | 9

downtime is approximately $10,000 per hour at its sites. One of the internet service providers delivers the minimum standard of 99.5% while another exceeds the standard with 99.9% uptime. Depending on how many hours the organization is open, that’s a difference of $100,000$350,000 in downtime costs between providers. The old adage that you can’t manage what you don’t measure certainly applies. Whether or not the organization measures that performance and recognizes the difference in value is crucial. Further, without some kind of reward, the better performing supplier has a disincentive on service level, and may eventually revert to the minimum standard—impacting the organization negatively. Scorecards therefore need to communicate high aspirations, not minimum acceptable standards.

In transportation, we can see how this might apply to on-time pickup and delivery performance—especially when loading and unloading crew costs and inventory carrying costs are considered. For TPS, there are many other quality measures that can be taken into consideration that impact costs and risk, such as security compliance, in-transit visibility reporting and safety. Although more difficult to quantify, it is extremely important to manage safety and security risks given the material being transported. When DOD is exposed to greater risks due to large differences in an area such as safety performance, the logical question is, “How does the poorer performer compensate DOD for the added risk DOD must absorb?” Further, without incentives, safer carriers are provided with a disincentive: to reduce investments in safety and only meet the minimum standards. One way to avoid such a scenario is to factor the scorecards into transactional business awards. Such an approach would drive behavior toward continuous improvement (for TPS, zero defects should really be the goal in most quality measures). To enhance competition, scorecards should be available with comparisons to competing suppliers. In this respect, scorecard transparency is analogous to the standings of sports teams. Every team knows where it stands in relation to every other team.

Incentivizing innovation

There are some cases with TPS, due to security and safety concerns, where it makes 10 |

Defense Transportation Journal

|

sense to specify the means, or how something must be done (e.g., no brokering in order to maintain control over the chain of custody). However, there are many other areas where it is better to specify a desired outcome to spur innovation (e.g., in-transit visibility reporting). In this way, suppliers can provide creative solutions that reduce total costs and risks rather than be limited to past practices that essentially amount to paving over the existing cow paths.

trol, adaptive cruise control, lane departure warning, all of those things can help protect people in marginal situations . . . when we get to the point where we don’t see the voluntary compliance reaching the parts of the fleet that are most in need of it, then I think the mandate is necessary.”2 In TPS, new information, communication and safety technologies are available that can reduce costs and risks for the Department of Defense. Some technologies should represent new requirements while

An example scorecard for TPS carriers

Certainly it makes sense for the government to tip the balance when necessary to ensure that suppliers invest in the right capabilities. Many new requirements have been issued since the September 11, 2001 terrorist attacks to address the risks associated with a terrorist gaining access to these shipments (e.g., updated carrier terminal standards, security clearance requirements, trailer tracking, wireless panic buttons). From a risk management perspective, it makes sense to also address the more likely scenario of a highway accident. There are proven safety technologies to mitigate risks with this material and prevent accidents on the highways where all of our families travel. But the industry needs direction from DOD. Since risks and benefits are shared, we need to know that the government will value these investments. As Deborah Hersman, Chair of the National Transportation Safety Board, put it, “. . . electronic stability con-

June 2012

others present opportunities to reconsider old ways of doing business.

Conclusion

In this era of constrained budgets, it makes sense to seek performance improvements from suppliers. Since these critical DOD shipments generate so much scrutiny from so many stakeholders, it’s important not to lose sight of the close collaboration between industry and government that’s required for safe and secure operations. One way to improve that relationship and focus on shared goals is to communicate high aspirations, measure for the desired outcomes, and reward superior performance. DTJ 1 “The Pentagon Is Serious About Saving Money”, Wall Street Journal (September 21, 2010) 2 “NTSB Chairwoman Urges More Focus on Driver Fatigue, Safety Technology”, Transport Topics (July 12, 2010)

At Your Command.

BNSF is standing by, ready to supply you with efficient and dependable military transport.

In addition, we’re proud to offer employment opportunities for individuals after military service.

bnsf.com

BNSF is an EEO/M/W/D/V/Military Friendly Employer.

We welcome and encourage diversity in our workplace. www.ndtahq.com | 11

BNSF Railway: Strategic Transportation Partner

By John Lanigan, Chief Marketing Officer and Executive Vice President, BNSF Railways

P

roviding transportation services to the US military has always been an important part of BNSF Railway’s business. Our military business is part of one of 22 business groups that range from coal, grain and industrial products, to finished automobiles and consumer goods. Our company of 40,000 employees takes deep pride in our role supporting the nation’s Armed Services. Whether it is delivering military equipment during mobilization, moving equipment to bases across the county for training exercises, hiring veterans, or committing resources to our employees who serve or have served, BNSF is honored to not only be a military business partner, but a long-time military supporter.

A History of Good Business

The relationship between the US military and BNSF and its predecessor railroads dates back to the Civil War. In more recent history, BNSF has supported the Armed Forces by moving more than 50,000 carloads for the deployment and redeployment of equipment to and from the Middle East. At the height of the de12 |

Defense Transportation Journal

|

ployment to Iraq, BNSF moved 40 dedicated unit trains in 45 days through the ports of Beaumont and Corpus Christi, TX, to the 842nd Transportation Battalion. Altogether, in the last 10 years, BNSF has transported nearly 100,000 carloads to support the military, including for training missions to the National Training Center (NTC) at Fort Irwin, CA, and to the Joint Readiness Training Center (JRTC) at Fort Polk, LA, in coordination with Kansas City Southern.

Whether providing transportation support service for rapid deployments overseas, or for standard training missions on the home front, BNSF is committed to providing origin-to-destination solutions for on-time and secure moves. We also serve all 17 power projection platforms (PPPs), either directly or in coordination with other rail carriers. We have a proven record of dedicating the locomotive power and crews needed to move military equipment by the required delivery date (RDD), and have averaged a 99.99% on-time performance in meeting the RDD. And as the military begins to surplus equipment, we are fully committed to the same service

June 2012

levels. Whether the move is fort to port, port to fort, or fort to fort, BNSF’s goal is on-time service at the best value.

As the Department of Defense seeks ways to reduce costs, BNSF is here to provide cost-effective and reliable solutions, for both short- and long-haul moves. Our Sales and Marketing team understands that the military operates in a constantly changing environment, so they are committed to providing the right service to match the RDD need—whether for a high-priority, or standard service anywhere across our 32,000-mile route network. Our Resource Protection team provides an additional level of security, and we also have High-Wide experts to ensure proper clearances for dimensional loads.

We also work with other carriers as well as 3PLs to coordinate door-to-door moves anywhere across the country.

To understand the current issues and discuss strategic solutions, BNSF participates on each of the Surface Deployment and Distribution Command morning calls. We also work closely with the Defense Transportation Coordination Initiative to handle this traffic. Other services we provide

FREEDOM

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

Whether it’s military tanks or disaster relief supplies, Landstar Government Services delivers.

Our proven track record and unparalleled commitment to safety ensures U.S. government agencies worldwide get 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.

Landstar has a reputation for providing the same care and precision whether transporting pieces of American history or moving America into the future.

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

For shippers looking for solutions to help manage bidding, scheduling, shipping, tracking, invoicing and reporting, Landstar offers cost-effective, technology-based tools along with our extensive array of transportation services to address supply chain needs from basic transportation management to highly complex enterprise solutions.

Safe. Reliable. Flexible. That’s how Landstar delivers freedom.

1-800-443-6808 • www.landstar.com SUPPLY CHAIN SOLUTIONS•AIR•OCEAN•WAREHOUSING•RAIL INTERMODAL•TRUCKLOAD•LTL•HEAVY HAUL/SPECIALIZED•EXPEDITED

day in and out that support the military are through our intermodal partners, who deliver goods to bases across the country as well as to the Veteran’s Administration System.

In addition to providing transportation value, rail is also the most fuel efficient, environmentally-preferred surface mode.

Consider that a BNSF train can move one ton of freight about 500 miles on just one gallon of diesel fuel—a significant advantage given the rising cost of fuel.

A Commitment to those who Serve

The partnership we have with the military extends beyond our business transactions.

We are proud to be a current Chairman’s Circle Member of the National Defense Transportation Association, for which we have been a long-time supporter. We are also considered a top employer of veterans and have received numerous recognitions for our hiring efforts. >> BNSF Awards and Recognition Since first appearing in the ranking in 2005, BNSF has consistently ranked as one of America’s Most Military Friendly Employers by GI Jobs Magazine. In 2011, Military Times EDGE Magazine ranked BNSF #1 top employer for veterans on the “Best for Vets” list.

In May 2009, BNSF received the CivilianJobs.com 2009 Most Valuable Employers (MVE) for Military Award.

In February 2006, BNSF renewed its longstanding commitment to those serving in the National Guard and Reserve by becoming the first railroad to sign a Five-Star Statement of Support with the National Committee for Employer Support of the Guard and Reserve (ESGR). BNSF has received three awards from ESGR: the Patriot Award in 2005, the Freedom Award in 2006, and the newly created Prominence Award in 2009.

Since 2005 alone, BNSF has hired more than 4,000 veterans, and employs more than 7,000 veterans. We have a Human Resources manager specifically focused on military recruiting. John H. Wesley III, a former US Army First Sgt. 14 |

Defense Transportation Journal

|

(Ret.), leads the military recruiting effort for BNSF. Last year, John’s efforts resulted in a record number of military hires for the company. We hired more than 1,300 military veterans—almost 25 percent of all of our new hires in 2011, compared with our previous high of just over 1,000 in 2006. At military installations and career placement offices across the country, BNSF has a strong presence, and we plan to continue our focus on being a militaryfriendly employer again this year, attending military career fairs and hiring events at military installations across the country.

We recognize and value the sacrifices made by our men and women in uniform.

Since September 11, 2001, more than 2,000 BNSF employees have been activated, with approximately 100 BNSF employees actively serving at any given time in support of current military operations.

BNSF’s commitment to our employees who serve is demonstrated in our policies, which go above and beyond the laws of the Uniformed Services Employment and Reemployment Rights Act (USERRA) for Guard and Reserve employees.

BNSF offers enhanced and extended benefits for employees and their family members when called to active duty, including make-whole pay and continued health care. In addition, we offer 15 days of make-whole pay, without requiring the use of any vacation, for annual training and drill duty.

BNSF honors veteran employees by sending the appropriate blue or gold star flag of recognition to the family of each employee called for duty. The appropriate flag is also displayed at the employee’s place of work to remind coworkers of their sacrifice.

Another way we show our appreciation for the service and sacrifices of military members and their families is through our annual BNSF Holiday Express. Started in 2008, this special train, made up of restored vintage passenger cars, travels for a week to 10 days during the holiday season, making stops in several states with military installations and spreading cheer to military families. Last year, about 2,500 soldiers and family members rode the train as it rolled through six states in the Upper Midwest. During the visits, donations from the BNSF Foundation are distributed to a variety of nonprofit groups that provide support to military families.

June 2012

Last year, checks totaling $110,000 were presented to these organizations.

Supply chain challenges ahead

The US rail industry plays a critical role in making our nation a leader in global trade. Since 2000, BNSF alone has invested more than $36 billion to improve our infrastructure and to increase rail capacity that ultimately helps the US compete more effectively.

As our country grows, so has the demand for transportation. Over the past four decades, the US population has grown from 200 million to 309 million and is projected to reach 420 million over the next 40 years. Today, on average, Americans require the freight system to move 40 tons of freight per person, per year. That means in 40 years the 100 million additional people will require 4 billion more tons of freight to be shipped.

Our country’s transportation network is not prepared for this, and today our nation faces a looming transportation challenge, one in which public and private interests need to strategically work together. It’s critical that we get the transportation funding and public policy pieces right for the benefit of our economy and our quality of life.

Two elements BNSF is focused on include regulatory reform and infrastructure. Regulatory reform is a competitiveness issue as burdensome regulatory requirements have become a tax on businesses and their employees. We must have a sensible approach to additional regulation that better reflects actual risks and economic reality. We also need to explore reform for project permitting.

This can only be accomplished with a national freight mobility strategy that will provide better planning tools and data analysis to identify key trade corridors and associated freight bottlenecks. The effort must also be supported by strong collaborative planning activities between federal, state and local transportation officials.

While most BNSF infrastructure investments are funded without public investment, cooperation between the private and public sectors allows both sides to achieve their respective goals better, faster, and at lower costs. Our nation relies on the rails to move freight. And we rely on our business partners, both in the private sector and the government, to be our allies in revitalizing our nation’s world-class infrastructure. DTJ

www.ndtahq.com | 15

T

he conversion of freight traffic from seaports and the Midwest. The improvecommodate two parallel tracks and higher highway to rail is growing, and ment projects are designed to increase the vertical clearances.

CSX is shaping its intermodal busivertical clearances at 61 locations on CSX As part of the National Gateway projness to harness and accelerate this modal ect, CSX has already opened two new terrail lines in the region to accommodate conversion in a way that benefits its cusminals on the corridor, one in Chambersintermodal trains carrying double-stacked tomers, the environment, and US comburg, PA, and another in North Baltimore, intermodal containers. The National merce more broadly.

OH, one of the most The intermodal busiadvanced in the naness—shipping contion. Meanwhile, CSX tainers exchanged has completed or is among various modes upgrading or expandof transportation ining intermodal facilicluding rail, truck ties in Charlotte, NC; and marine vessel— Columbus, OH; and has been stimulated Louisville, KY. The by the improving US company also plans to economy, growth in develop new terminals global trade, highway in Pittsburgh, PA, and congestion, rising Baltimore, MD, as trucking costs and part of the project. benefits of railroad Construction and fuel efficiency. development of the CSX’s transportaNational Gateway is

By Colonel Jon Meyer, USAF (Ret.) tion network spans already making a sigCSX Senior Account Manager, Emerging Markets 21,000 miles, with nificant contribution service to 23 eastern to the well being of states and the District communities along of Columbia. Along the network, providthat network it coning needed jobs. Once nects to more than complete, the Nation240 short line and real Gateway will bring gional railroads and more than 70 ocean, additional environmental and economic Gateway will support additional shipadvantages largely through its freight rail river and lake ports. Its network connects ments of consumer goods in a more efefficiency and fewer trucks on the highway. shippers to approximately 66 percent of ficient and cost-effective manner.

US consumers in a cost-efficient and enCSX, six states, and the District of CoPanama Canal Expansion to vironmentally friendly way. lumbia, as well as the federal government, Affect Port Business Across the network, ambitious infraare part of the National Gateway coopstructure expansion projects—in the case One consideration in the development of erative. More than 300 public and private of intermodal: new terminals, upgrades and the National Gateway project, is increased sector organizations and individuals are expansion of older terminals, and improvesupporting the effort. global trade calling at eastern ports, most ments to allow for more double-stacked Total project costs are approximately of which are served by CSX. The comtrains—are part of CSX investments that $850 million, and state and federal partpany serves 70 ocean, lake and river ports. are expected to total $2.25 billion this year. ners are investing to help secure the pubThese volumes are increasing as addiOne of the cornerstones of CSX’s capital lic benefits of improved transportation tional goods are shipped through the Suez investment strategy is an infrastructure infrastructure. CSX has committed a total and Panama canals. The Panama Canal is project called the National Gateway. of about $575 million over several years. being expanded to accommodate larger The projects will provide clearances in ships in a project that began in 2007 and The National Gateway and CSX Maryland, West Virginia, Pennsylvania is expected to be complete in 2014.

The National Gateway is a public-private and the District of Columbia, including East Coast ports are gearing up for partnership that will create a double-stack a rebuild of the century-old Virginia Avthe potential for more business and to freight rail corridor between Mid-Atlantic enue Tunnel in Washington, DC, to acaccommodate larger and deeper draft

CSX Transportation Prepares for

Freight Rail’s Future

Construction and development of the National Gateway is already making a significant contribution to the well being of communities along the network, providing needed jobs. Once complete, the National Gateway will bring additional environmental and economic advantages largely through its freight rail efficiency and fewer trucks on the highway.

16 |

Defense Transportation Journal

|

June 2012

vessels. Ports are pursuing infrastructure improvements; more on-dock rail connections, warehouse expansions and deepening of shipping channels to prepare for larger ships.

In partnership with regional development efforts—from manufactured distributors—CSX is focusing on its infrastructure improvements and acquisition of locomotives and car fleets to support what is expected to be a significant increase in rail shipments over the next several years. This volume increase is attributable to factors previously noted, including the desire for more environmentally friendly transportation that produces fewer exhaust emissions and less wear and tear on the nation’s highways.

area. For example, a new siding has been built at nearby Suffolk with several tracks to provide the needed capacity to help assemble and disassemble trains for movements to and from the Virginia port.

Close-up of Port of Virginia Operation

CSX moves just about any product consumers could find at a discount retailer or big-box store through the Port of Virginia.

Since Jan. 1, CSX has moved two trains

East Coast ports are gearing up for the potential for more business and to accommodate larger and deeper draft vessels.

Ports are seeking to pursue infrastructure improvements; more on-dock rail connections, warehouse expansions and deepening of shipping channels to prepare for larger ships.

CSX Port Connection – Virginia

As one of two Class I eastern US railroads, CSX’s access to import-export traffic at ports along the eastern seaboard and the Gulf Coast is essential to serve the local and inland population. A case in point is CSX’s recently improved access to the busy import/export APM (parent company of Maersk shipping lines) Terminal (APMT) in Virginia.

“We recognized several years ago with development of the National Gateway project that we could serve our customers more effectively with on-dock services at the new APM terminal in Portsmouth, VA,” said Carl Warren, CSX director of sales. “APM worked hard to ensure that CSX could get there.”

About three years ago, CSX built a rail link from its lines to the Commonwealth Railway at the port (a short line road and one of the Genesee & Wyoming family of railroads). That infrastructure gave CSX on-dock access to APMT through its short line connection.

“That new connection gives our customers a strong on-dock presence in Virginia for access to markets overseas,” said Warren. “These international intermodal containers are usually heavy, and the ondock service provides customers with cost savings through avoidance of charges to dray their goods between train and oceangoing vessels.” Other benefits accrue to the Virginia port area, such as less wear and tear on local roads and better air quality through fewer exhaust emissions. Through the National Gateway project, CSX is also investing elsewhere in the Virginia port 18 |

Defense Transportation Journal

|

a day to the port—one bearing mixed freight from the Chicago area and one with freight consolidated from many origins at CSX’s new terminal in Northwest Ohio. This freight originates in major cities in the Ohio Valley, along with other midwestern cities like Detroit and Indianapolis. Rail containers handled at Port of Virginia in February 2012 jumped 13 percent over the previous year. Tonnage for that month showed a 12.8 percent increase over 2011. Combined, CSX handled 11,000 containers by rail at the port in March 2012—a new record volume of traffic, says Terminal Manager Tony MacDonald, based at Portsmouth, VA. The new siding with the Commonwealth Railway, MacDonald says, was accomplished with assistance from the Commonwealth of Virginia. The new structure meets the APMT “like an offramp on a highway,” he says. “We hand off trains about eight miles from the gate, and they’re then switched into the port.”

Overall, the Port of Virginia has become a more efficient rail-served operation with the new rail link. “In the past only one Class I railroad [the Norfolk Southern] could reach the terminal. Now, both eastern Class I’s can make that con-

June 2012

nection, and it has put the port in a stronger competitive posture against the Port of NY/NJ and Savannah.”

MacDonald points out proudly that the terminal moved six divisions of Army and Marine Corps equipment by the trainload in support of the military presence in Iraq and Afghanistan in recent years. “They rapidly crossed over our network during an about 18-month period two to three years ago,” he explained. “Now, we look forward to bringing them all home.”

CSX and Military Freight Transportation

Because its network lies along key large military bases in the eastern US, CSX moves more military freight than any other Class I railroad. CSX serves several large bases, including: • Ft. Drum, NY (10th Mountain Division) • Ft. Campbell, KY (101st Airborne) • Ft. Bragg, NC (82nd Airborne) • Ft. Stewart, GA (3rd Infantry Division) CSX either directly serves the bases through its traditional carload business, where some have their own tracks and locomotives to handle the shipments beyond the gate, or moves the freight via its nearby intermodal terminals.

Trains carrying military equipment receive the highest priority so that their movements are timely. During recent deployments, frequently used port connection points have been at Blount Island, FL; Charleston, SC; Philadelphia, PA; Portsmouth, VA; Norfolk, VA; and Sunny Point, NC. While some of the military equipment is containerized, military equipment moves on various types of rail flat cars.

Materials could include ammunition, Humvees, tanks, mine-resistant ambushprotected vehicles and ambulances.

Average volume of military shipments on CSX is approximately 5,500 carloads per year. DTJ In support of commerce and the military, CSX is a major and growing presence today and tomorrow. The company is seeing solid growth across many of its product markets and is investing for additional growth in both the near- and long-term.

Total end-to-end transportation solutions for your oversized cargoes Farrell Lines, a leading U.S. flag roll-on, roll-off carrier, offers flexible routings and schedules from the U.S. to the Middle East and back to meet your most pressing needs. We recognize the importance of getting your vital cargo to its final destination.

With access to an extensive ocean and inland global network, and local customer service, we make it possible.

www.ndtahq.com | 19 www.FarrellLines.com • Tel. (757) 852-3266

SDDC Symposium/NDTA Expo

wrap-up

March 5-7, 2012 denver, c0

Household Goods and Personal Property Update

A

By Fran Vollaro, Senior VP, Relocation Services, The Pasha Group

s this edition of the DTJ reaches you, the 2012 peak season for moving will be well under way.

The recent Personal Property Forum and SDDC Symposium sessions in Denver from March 5-7 were an opportunity for industry and military stakeholders to share ideas and become better prepared for all that a peak moving season brings.

We had high attendance and participation from the household goods community at the Symposium—from both government and industry—with three breakout sessions devoted to personal property issues. An NDTA Household Goods Subcommittee working group conducted one of the breakout session presentations. Our presentation was titled “DP3/DPS, A Dialogue on Best Practices between PPSO and Industry.” The presentation and all panelists can be found at the SDDC Symposium website. We’d like to thank each of our panelists for their expertise and highly professional presentation skills, and especially for the large commitment of time to make this presentation a success.

The NDTA-sponsored breakout session was very well attended with roughly 200 at the four sessions and we received great feedback. We had 75 returned surveys, with 93% rating our subject matter and delivery very favorably. From those who where surveyed 7% would have liked to see more discussion on future needs or higher level best practice discussions. A total of 59 people responded with what they would like to see for future sessions, including: Claims Process Overview/ Claims Prevention – 12%, Conversions, Diversion and Storage Issues – 10%, Business Rules; DPS/DP3 Training – 10%, TSP/Government Communication – 10%, Increasing Capacity in Peak Season – 7%, Mixed: International; Alaska Issues; PPSO/PPO Focused Topics – 61%.

SDDC Personal Property also conducted two very valuable functional breakouts, and held their semi-annual Personal Property Forum (PPF) on Thursday after the formal Symposium. Among other topics, The Per20 |

Defense Transportation Journal

|

sonal Property team recapped the steps they are taking to ensure that as much capacity as possible is made available for peak season. These steps include the following: • Waived the 70% rule through the end of 2012 • Allowed unlimited refusals for shipment awards May 15-July 31 • Increased use of Code 2 and other alternative domestic methods • Strategic use of SIT at origin by Personal Property Shipping Offices (PPSOs) • Increased granularity of the Blackout functionality in DPS which enables TSPs to be more specific about areas they cannot service at any period of time The industry and military will be watching the 2012 peak season carefully to see if the steps taken, as well as overall economic conditions affecting the moving community, were sufficient to deliver the level of quality and responsiveness to the military moving customer that we all desire. We’ll have a follow up report in later DTJs. Subcommittee Plans for 2012 Working Groups

The subcommittee is in the process of forming a military/industry working group to look for solutions to recurring water damage on Code T and Code J shipments transiting from pack and port agents through the aerial ports. We also hope to partner with SDDC to look at problems surrounding shipments in SIT and NTS that convert to member expense. We have several volunteers for both groups and plan to make sure we have comprehensive representation of all stakeholders.

NDTA Forum – Alaska

The subcommittee plans to conduct a professional session at the Forum. Watch for more information and a call for volunteers. DTJ

June 2011 june 2012

2012 Expo Sponsors 1-800-PACK-RAT ABF Freight System, Inc. Anchorage CVB APL Avis Budget Group Best Western Hotel International Chalich Trucking Inc. CWTSatoTravel DHL Echo Logistics Extended Stay America Farrell Lines FedEx Hertz Inteligistics Landstar System, Inc. Maersk Line, Limited National Air Cargo Oakwood Extended Stay Lodging R & R Trucking Radiant Logistics Partners Raith – CTS Logistics Ridgeway International SAIC Southwest Airlines Supreme Group (USA) LLC The Pasha Group The Port of Virginia TMS Truva Int’l Transportation & Logistics Universal Truckload Services UPS

www.ndtahq.com | 21

Chapter Spotlight Here’s to Another Half Century on the Move Jeff Campbell Chapter Liaison

Congratulations to Kiarra Bartlett of O’Fallon, IL – she entered the Scott. St. Louis Chapter poster contest, and won the National NTW “One Nation on the Move” contest. Photo by Chapter 92 A-35 Chair Kristin Wakefield.

Greater awareness of and appreciation for the transportation industry has spread since 1957, when the United States Congress requested the President proclaim the third Friday in May each year as National Defense Transportation Day. In 1962, the President was requested by Congressional Joint Resolution to proclaim the week in which that Friday falls as National Transportation Week. This year, NDTA commemorated the 50th Anniversary of NTW with the theme, “One Nation on the Move”, and several chapters joined in the celebration with unique activities. Some chapter NTW activities have been held for many years, and a few new ones have potential to go on for years to come.

I

n title 36 of the United States Code, the President urges “the people of the United States, including labor, management, users and investors, in all com-

22 |

Defense Transportation Journal

|

>> NTW by the Numbers • May 16, 1957 – Congress designates the third Friday of May each year as National Defense Transportation Day • 1962 – Congress includes the whole week within which the Friday falls as National Transportation Week • 40% of NDTA Chapters’ 2012 Golf Tournaments took place during NTW

munities served by the various forms of transportation to observe National Defense Transportation Day by appropriate ceremonies that will give complete recognition to the importance to each community and its people of the transportation system of the United States and the maintenance of the facilities of the system in the most modern state of adequacy to serve the needs of the United States in times of peace and in national defense.”

NDTA Chapters marked the anniversary in many ways, beginning with a banquet in Charleston in early May, and capped by the 17th Annual Arizona Frontier (Tucson) Chapter Golf Tournament,

June 2012

and San Antonio Chapter’s 5K on May 19th, which is also Armed Forces Day. San Antonio split their run proceeds between the chapter scholarship fund and an organization that provides emergency financial aid and other help for families of deployed service members, and for Wounded Warriors during their recovery and transition.

“It has been really exciting working with Operation Homefront,” said Adam Pincus, chapter fun run coordinator. “When we met and discussed how we can generate scholarship funds in a third activity in addition to our annual golf and bowling tournaments, we knew we wanted to tie it in with a contribution to the troops.” Operation Homefront also held a parade and a dinner, rounding out a full day of fitness and patriotism. “We’re trying something health-conscious and trying to set this up on a yearly basis,” Pincus said.

While fun runs are gaining popularity as family-friendly events, golf tournaments remain the top earner for NDTA Chapters, enabling them to assist future logisticians in their educational goals. NDTA’s Regimental Chapter at Ft. Eustis, Virginia, for example, home to Army transportation education for nearly 70 years, was able to award three $1,000 scholarships in 2011 due to the generous support of golf enthusiasts and corporate sponsors.

NDTA Houston gets together each year with other Lone Star State transportation clubs, and this year the chapter played host for the NTW All Clubs Luncheon, which featured the Port of Houston Authority Chairman. NDTA Scott-St. Louis held a luncheon, a career fair, a scholarship awards dinner, and their 17th annual golf tournament all in one week! Civilian and uniformed NDTA members overseas also recognized the week from Okinawa, Japan, to Rheinland-Pfalz, Germany.

Visit the NDTA website for a link to the 2012 NTW Presidential Proclamation, a full listing of this year’s events, and plan to attend a local commemoration next year, as we head into a second half century celebrating the community of transportation professionals who keep our country on the move. DTJ

ndta NEWS San Francisco Bay Area Chapter Disaster Preparedness Event

Reginald Ali, 3rd VP, SF Bay Area Chapter

T

he San Francisco Bay Area Chapter hosted a spring disaster preparedness event in support of the NDTA objective to assist the Red Cross and government agencies with coordinating transportation and related assistance during civil emergencies and disasters. It was the chapter’s first disaster preparedness event in several years and it was a great success.

The speakers painted a clear picture of all that is involved with responding to a national disaster as well as what is and can be done to prepare for a disaster. While the US Coast Guard and FEMA spoke on the broader points, the Red Cross and the Collaborating Agencies Responding to Disasters (CARD) spoke on the more specific points which most of the audience could easily relate to. The USCG

enlightened the audience on the many facets of the CG, its resources and their ability to support water related national disasters. The audience learned what and how FEMA manages resources on a national level. In responding to disasters they primarily provide funding and backup logistical support through local contracts.

They were designed to supplement State and local governments when disasters become too much for the State to manage

on their own. They were not designed to develop/manage local governmental resources as some may have thought.

From the Red Cross the audience learned how they manage their primary support functions of providing food and shelter to disaster victims. They establish agreements with local schools, churches, and others to house victims and with food continued on page 28

U.S. Government travelers know nothing beats a great deal.

We know you recognize great travel deals, so we’re giving you a free single upgrade on future rentals. That’s on top of your member discount of up to 20% off when you use BCD # T788300. It’s easy to save with reusable savings and discounts like these.

Visit budget.com or call 1-800-BUDGET-7 to make your reservations.

Free Single Upgrade CoUpon # UUGZ055

Terms and Conditions: Coupon valid for a one time, one car group upgrade on a compact (group B) 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 Budget locations in the contiguous U.S. 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 member discount. For reservations made on budget.com, upgrade will be applied at time of rental. Renter must meet Budget age, driver and credit requirements. Minimum age may vary by location. Fuel charges are extra.

Rental must begin by 6/30/13.

Budget features Ford and Lincoln Mercury vehicles.

© 2009 Budget Rent A Car System, Inc. A global system of corporate and licensee-owned locations.

17669

www.ndtahq.com | 23

Transportation and Logistics— Winning the Talent Race Irvin Varkonyi, President, Supply Chain Operations Preparedness Education (SCOPE) ivarkonyi@scopedu.com

T

he headline in a recent issue of Material Handling Management was stunning—“Workforce development among logistics employers is not keeping pace.”1 This was the conclusion from the latest edition of PwC’s report, “Transportation and Logistics 2030, Volume 5: Winning the talent race.” The magazine goes on to say, “. . . the aging population worldwide is quickly creating a labor shortage while T&L companies are struggling to attract the new, younger workers who typically view jobs in the T&L sector as dead-ends because of factors including low wages and unfavorable working environments.”2 Well, I guess there’s no denying that yours truly is aging. I have been since the day I was born. In fact, maybe the aging process is rapidly increasing??? Anyway, the PwC report notes six key topics affecting T&L companies: 1. Demographics – The aging population is affecting all transportation modes. For example, the US trucking industry will need to hire one million new drivers in the next 15 years just to deal with replacing retirees and expected freight growth.

2. Recruiting – T&L modes must move toward utilization of social media to attract younger demographics.

3. Compensation and incentives – The perception of the T&L industry offering low wage employment is based on decreasing wages during the recession.

From 1996 to 2004, wages increased an average of 5% per annum but only 2.3 % per annum since 2007. Greater freight transport demand is driving increasing wages.

4. Career paths – Surveys of the T&L workforce found that one out of four were disappointed with career advancement. One out of two respondents in a survey of logistics and supply chain professionals was actively pursuing other jobs.

5. Employer brand – Employers will need to enhance the attractiveness of 24 |

Defense Transportation Journal

|

the industry, to improve their brand and cope with current negative images.

6. Diversity management – The T&L Industry has not sufficiently taken advantage of the significant benefits of gender and cultural diversity. Less than thirty percent of the industry are women and less than ten percent of management are women.

“These findings are hugely significant for the T&L sector showing us what must be done before the industry falls into a critical state,” said Klaus-Dieter Ruske, PwC’s global T&L leader. Poor image, poor pay and poor prospects are all perceptions that currently choke the industry. The reality is that there are rewarding, multinational opportunities out there that need tapping into.”3 As this column has indicated over time, the importance of human capital cannot be understated. This is more than a commonly expressed statement, but a reality in the global economy. Notwithstanding, the economic downturns of the US economy and those of many other regions of the world, freight movement is not in a downturn. Consider the severe shortage of capacity on the sea-lanes from Asia to North America, or the high capacity utilization of the nation’s railroads. While there may be inconsistencies with an economy where unemployment exceeds eight percent, labor shortages nonetheless exist. A free market will bring new entrants into high capacity utilization industries which will need more workers to compete.

What are the positive aspects of the T&L industry that may not be sufficiently visible to younger demographics who seek careers in information technology and medical services; high growth areas in a nation with an insatiable demand for technology and an aging population that requires more medical care? Consider these elements: • Opportunities to work with state of the art technology from smartphones operating warehouses to utilizing

June 2012

social media to communicate with customers; transparency in freight movement so that movement of information becomes as important as the movement of freight. In other words, the T&L industry has “exciting toys” to play with.

• There’s varied work in the industry.

Consider the UPS driver who moves into the warehouse, then into middle management at a key hub followed by senior management in one of many nations around the world.

• The benefits of outsourcing bring additional work opportunities with 3PL’s and 4PL’s as supply chains compete to gain advantages for global firms.

So with such opportunities, what is the T&L industry doing to attract more workers and what is it not doing?

1. Prioritize improvement of the T&L image with a commitment from the top.

While this is easy for anyone to claim, especially in difficult economic times, how much has the industry achieved by decreasing training programs and lack of focus on professional development?

A stronger focus on internal education stimulates and motivates a workforce which leads to enhanced brand image.

Consider the dedication of UPS, a leader in image development.

2. Adapting the workplace to the needs of older workers with different needs from younger workers. Differences are noticeable in communication styles, learning styles, feedback and more.

A good example to emulate are the changes in education in the movement from pure brick and mortar learning institutions to mixed online/face to face learning and pure exclusively online learning. Content is adapted to different delivery methodologies.

3. The lack of diversity means missed opportunities. By fostering enhanced gender and cultural diversity, comcontinued on page 28

DoD’s Partner of Choice for Multimodal Logistics & Strategic Sealift

www.ndtahq.com | 25

HONOR ROLL

OF

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS 1-800-PACK-RAT ABF Freight System, Inc. Accenture Accor Hotels ACTCO-Afghanistan Logistics Airlines for America Air Transport International, LLC AIT Worldwide Logistics, Inc. Al-Hamd International Container Terminal American Maritime Officers American United Logistics America’s Central Port AMYX Apex Logistics Group ARINC Army Air Force Exchange Service Arven Services, LLC Associated Global Systems Baggett Transportation Co. Blue Water Shipping US, Inc. Boyle Transportation Byrne Transportation Services, LLC C2 Freight Resources, Inc. Cardinal Transport, Inc. Carlson Rezidor Hotel Group CGI Chalich Trucking, Inc. Chamber of Shipping of America Citigroup Comtech Mobile Datacom Corporation Covenant Transport Coyne Airways Crowley Maritime Corp.

CRST International, Inc. CSC CWT SatoTravel

REGIONAL PATRONS

DAMCO Dell, Inc. Delta Air Lines, Inc. DHL Express Dollar Thrifty Automotive Group Door to Door Storage, Inc. Dynamics Research Corp.

Enterprise Database Corporation Express-1 Fikes Truck Line GE Aviation General Dynamics/American Overseas Marine General Dynamics NASSCO GeoDecisions GID – Get It Done, LLC Greatwide Truckload Management Hilton Worldwide HLC Government Services Hub Group, Inc. Intercomp Intermarine, LLC Intermodal Association of North America (IANA) International Longshoremen’s Association, AFL-CIO Intl. Organization of Masters, Mates and Pilots Interstate Worldwide Relocation J. B. Hunt Transport, Inc. Kansas City Southern Keystone Shipping Company Knight Transportation KU Transportation Research Institute Kuehne + Nagel, Inc. Labelmaster Software Liberty Global Logistics, LLC Liberty Maritime Corporation

C.L. Services, Inc. Colorado Technical Library Corporate Flight Management AAAA Forwarding, Inc. EADS North America AAT Carriers, Inc. Enterprise Holdings Ace Doran Hauling & Rigging Erudite Company Acme Truck Line, Inc. AFC Worldwide Express/R+L Global Services Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Agile Defense, Inc. Federal IT Consulting (FEDITC), LLC AKA a division of Korman Communities FlightWorks Alaska Marine Lines FMN Logistics Al-Morrell Development/Morrell Int’l.

Fox Rent A Car Alaska West Express Garner Transportation Group American Moving & Storage Assn.

Great American Lines, Inc. American Trucking Associations Green Valley Transportation Corp.

Association of American Railroads Guard Transport, Inc. ATS Specialized, Inc. Hanjin Intermodal America, Inc. Avis Budget Group Hawaii Air Cargo, Inc. Benchmarking Partners Holiday Inn VA Beach – Blkbird, Inc. Norfolk Hotel & Conference Center C5T Corporation HudsonMann, Inc. Cargotec USA, Inc. Hyatt Hotels and Resorts The Cartwright Companies IdenTrust, Inc. Cavalier Logistics Innovative Green Solutions Center for the Commercial Deployment of JAS Forwarding Transportation Technologies (CCDoTT) K & S Trucking, LLC Ceres Terminals, Inc. Kalitta Charters, LLC Chapman Freeborn Airchartering LMJ International Logistics, LLC Chassis King LTD Hospitality Group 26 | Defense Transportation Journal | June 2012

LMI Lockheed Martin Aeronautics Co. M2 Transport Mack Defense Marine Engineer’s Benefits Association Martin Logistics, Inc. Mayflower Transit McCollister’s Transportation Systems, Inc. McLeod Software Medallion Transport & Logistics, LLC Menlo Worldwide Mercer Transportation Co. Military Officers Association of America National Air Carrier Assn., Inc. National Van Lines North Carolina State Ports Authority NYK Logistics Americas Ocean Shipholdings, Inc. Ocean Star International, Inc. Omega World Travel One Network Enterprises, Inc. ORBIS Corporation OSG Ship Management, Inc. Overdrive Logistics, Inc. Owner-Operator Independent Drivers Association Panalpina Parts Associates, Inc. (PAI) Pilot Freight Services PODS Port of Beaumont Port of San Diego Pratt & Whitney Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services Qualcomm Incorporated Radiant Logistics Partners, LLC

Ramar Transportation, Inc. Ridgeway International Rockey’s Moving & Storage, LLC Sammons Trucking Savi, a Lockheed Martin Company Sea Star Line, LLC Seafarers Int’l Union of N.A. AGLIWD Sealed Air Corp.

Sealift, Inc. Seko Service by Air Southwest Airlines SRA International, Inc. Tamerlane Global Services Teradata Corporation Textainer Equipment Management The Parking Spot The Port of Virginia Totem Ocean Trailer Express, Inc. (TOTE) TQL Transportation Institute Transportation Intermediaries Assn. (TIA) Transportation Management Services Tri-State Motor Transit, Co., (TSMT) Truva International Transportation and Logistics Tucker Company Worldwide, Inc. Union Pacific Railroad United Airlines United Van Lines, Inc. UTi Worldwide, Inc. UTXL Wagler Integrated Logistics, LLC Women In Trucking Association, Inc. Worldwide Aeros Corp

M-Pak Incorporated Marriott International MBA | Morten Beyer & Agnew MCR Federal, LLC (MCR) Meyer Trucking, Inc. Mi-Jack Products & Technology Military Sealift Command (MSC) Miramar Transportation mLINQS, LLC MRA experiential tours & equipment Naniq Global Logistics LLC NCI Information Systems, Inc. NFI NovaVision, Inc. Numerex Corporation Oakwood Corporate Worldwide OTO Hospitality Development Overwatch, Inc. Pak Shaheen Freighters (Pvt) Ltd. Passport International, Ltd. Patriot Contract Services, LLC Payless Car Rental Philadelphia Regional Port Authority PITT OHIO Port of Port Arthur Portus Professional Homestaging and Design, LLC Reckart Logistics, Inc. Royal Trucking Company

Ryan’s Express Transportation Seabridge, Inc. Seatac Marine Services Sea Box, Inc. Secured Land Transport SkyLink—(USA) SR International Logistics, Inc. Stratos Jet Charters, Inc. Suite Solutions TAPESTRY - FSG TechGuard Security Tennessee Steel Haulers Trailer Transit, Inc. Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. Triton Systems, Inc. Try Tours Expediting Services Turnkey Transportation Services Tydenbrooks – Security Products Group Unified Consultants Group, Inc. U.S. Bank US Door & Building Components Utley, Inc. The Virginian Suites YRC Worldwide

American Roll-On Roll-Off Carrier, LLC BNSF Railway Co. Booz Allen Hamilton CSX Transportation DB Schenker DHL Global Forwarding Evergreen International Airlines, Inc.

The Hertz Corporation IBM Innovative Logistics, LLC International Shipholding Corp.

KGL Holding Lockheed Martin

CH

AN’S CIRCLE RM P AI

S LU

N’S CIR RMA CL AI E H C

AAR CORP + PLUS Agility Defense & Government Services + PLUS American Shipping & Logistics Group (ASL) + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express, LLC + PLUS Boeing Company + PLUS Bristol Associate + PLUS CEVA Logistics + PLUS Choice Hotels International + PLUS Coyote Logistics + PLUS Cubic Global Tracking Solutions, Inc. + PLUS Echo Global Logistics, Inc. + PLUS FedEx + PLUS Final Mile Logistics + PLUS Global Aviation Holdings Inc. + PLUS Hapag-Lloyd USA, LLC + PLUS Horizon Lines, Inc. + PLUS InterContinental Hotels Group + PLUS Landstar System, Inc. + PLUS McLane Advanced Technologies + PLUS Maersk Line, Limited + PLUS National Air Cargo + PLUS Omni Air International + PLUS Panther Expedited Services, Inc. + PLUS Ports America + PLUS Science Applications International Corp. (SAIC) + PLUS Supreme Group USA, LLC + PLUS Universal Truckload Services, Inc. + PLUS UPS + PLUS

Matson Navigation Company, Inc. Norfolk Southern Corporation The Pasha Group R&R Trucking Raith-CTS Logistics Rock-It Cargo USA, LLC SkyBitz

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 | 27

Kent Gourdin

From A to B: How Logistics Fuels American Power and Prosperity by David Axe From A to B: How Logistics Fuels American Power and Prosperity by David Axe. Published by Potomac Books, Inc., November 2011, ISBN-13: 9781597975254, Hardcover, 256 pages, $24.50.

L

ogistics includes the planning and practice of moving “stuff ”—raw materials, tools, finished products, and even people—from one place to another. It carried American settlers over the sparsely populated Great Plains to connect the East Coast to the West Coast and has underpinned our domestic prosperity ever since. Logistics also solidified the global power and influence of the United States by guaranteeing our ability to rapidly reinforce Europe in the world wars, by helping us win the Cold War, and by enabling the current US military to fight two wars at once. Further, logistics un-

dergirds the world economy as swelling populations vie for shrinking resources, including energy, water, arable land, food, and cheap labor. Natural disasters urgently increase such demand.

From A to B is the story of modern American logistics, which will continue to shape the nation’s role in this century. The book begins with a US Army transportation company in Iraq during the height of insurgent attacks on American supply networks. Then it tours the shipyards, railways, highways, airports, classrooms, corporate boardrooms, and laboratories that make up our complex and colorful transportation culture. With competition stiffening and our national transportation infrastructure crumbling, we must find ways to move resources and products even more efficiently if we are to thrive. From A to B presents this challenge. (From the publisher) DTJ

continued from page 24

panies can spark more creativity and enhance innovation. The PwC report’s Delphi study noted that companies that make sure to include women in top roles may find that profits increase too. This recent report commented on a new Harvard Business Review study:

“Are women better leaders than men?”

That’s the provocative question Joseph Folkman and Jack Zenger raised in a blog post on Harvard Business Review’s Web site. In (their study) of 7000 leaders, they analyzed thousands of their clients . . . Their study found that women outscored men on 12 of the 16 attributes Folkman and Zenger have found to be most associated with great leaders. On average, the study found, women were more likely to outscore men on everything from “displaying high integrity” to “driving for results.” 4

28 |

Defense Transportation Journal

|

4. Employee satisfaction also leads to improving an employer’s brand. This combines individual hierarchical needs of the workforce and external needs such as corporate responsibility, environmental responsibility, and workforce diversity.

In summary, the T&L industry competes with other industries for talent.

The needs of the “millennial” generation require different approaches. The consequences of poor recruitment will mean poor company performance which will lead to shareholder dissatisfaction and negative economic developments. Our industry can control its future. DTJ 1 Material Handling Management, March 30, 2012 2 Material Handling Management, Mach 30, 2012 3 “Transportation and Logistics 2030, Vol. 5, Winning the talent race, PwC, 2012 4 Washington Post, April 19, 2012

June 2012

continued from page 23

banks and distributors to feed the victims.

These pre-disaster agreements help the Red Cross respond quickly to disasters.

The audience learned that CARD was established in the aftermath of the California Loma Prieta earthquake in 1989.

During the earthquake the SF Bay Area local agencies realized they were not able to respond effectively to disasters of that magnitude. CARD was established to coordinate the efforts of local agencies and to teach the importance of disaster preparedness to local groups, organizations and agencies. CARD programs are designed to connect to the individual, which enables the audience to effectively relate to their preparedness message.

SF Bay Area Chapter solicited participants to gain information on areas whereby the event could be improved in relationship to the subsistence and value of the presentation to the NDTA membership.

The feedback they received overwhelmingly stated the disaster preparedness event was very informative and valuable.

This preparedness event is the chapter’s ongoing effort to identify how it can assist their local community with meeting its disaster preparedness and readiness goals. The chapter will be adjusting their luncheon format to address comments received as well as canvas its transportation industry partners to identify what support they might provide in such an event. They hope to expand this event next year with more industry specific information that will make it even better. DTJ

DTJ Index of Advertisers APL................................................................... 9 ARC (ASL Group).......................................... 25 Avis Budget Group....................................... 23 Bennett International Group...................... 15 Boyle Transportation..................................... 6 BNSF Logistics............................................. 17 BNSF Railway............................................... 11 Farrell Lines.................................................. 19 FedEx..............................................................C4 Landstar......................................................... 13 Maersk Line, Limited..................................... 1 SAIC...............................................................C2 SkyBitz...........................................................C3 UPS................................................................... 2

© 2011 FedEx.

It’s always good to hear that your shipment is arriving earlier.

FedEx now offers the fastest package service from the U.S. to Afghanistan. By using our FedEx Boeing 777 aircraft, we are able to take advantage of FedEx connectivity in the Middle East. Which means FedEx International Priority® and FedEx International Priority® Freight shipments now arrive in Afghanistan in only 4 days. Rely on our expertise for an earlier delivery of your shipment. fedex.com/international