Local port workers last week began enrolling in a comprehensive new federal security program that some experts fear could upset the flow of cargo.
The Transportation Worker Identification Credential program, administered by the Transportation Security Administration, will require every port worker nationwide to pass a background check and pay a $132 fee to obtain clearance to enter port grounds.
But as many as 30 percent of local truck drivers may be unable to pass the background checks due to their immigration status or criminal history. Experts, such as respected economist John Husing, have cited the program as a potential disturbance to Southern California’s ports.
Fred Johring, president of Golden State Logistics, a Rancho Dominguez motor carrier with about 25 trucks in its fleet, said he and other motor carriers are encouraging drivers to apply as early as possible so there is time to work out any problems.
“There’s a natural tendency of drivers to wait until the last minute out of fear of the unknown.” Johring noted.
Though the deadline to apply has not been announced, port workers have until mid-2008 to obtain the credential and the ports have said they will monitor the sign-up process to ensure there are a sufficient number of credentialed workers.
“Everybody is concerned but we’ve been working with the TSA to try to monitor how many people are going through the process,” said Art Wong, a spokesman for the port of Long Beach.
Wong said about 60,000 workers at the two ports will be required to obtain credentials.
Freight Facility
The Los Angeles Board of Airport Commissioners this month approved a 40-year lease agreement with a developer that will clear the way for construction of a 1 million-square-foot air cargo center at L.A./Ontario International Airport.
Aeroterm LLC, an Annapolis, Md.-based airport developer, will begin construction on the $125 million, 94-acre center next year.
City and airport officials have pegged this project as a key portion of their efforts to make Ontario, Palmdale and other Southern California airports viable regional alternatives to highly congested Los Angeles International Airport.
Ontario currently handles about 600,000 tons of air freight annually and is a major hub for United Parcel Service Inc.
Under the terms of the lease agreement, Los Angeles World Airports, the Los Angeles city authority that operates Ontario and other local airports, expects to make $81 million through ground rental payments.
Ailing Airline
Maxjet Airways Inc., an all-business-class airline based in Washington, D.C., is experiencing some turbulence.
The airline, which in August began offering passenger service between Los Angeles and London’s Stansted Airport, recently halted trading of its stock on a submarket of the London Stock Exchange “pending clarification of its financial position.” Shares were trading at $1.49.
The airline operates flights between Stan-sted and three U.S. cities Los Angeles, New York and Las Vegas. It canceled service from Washington in October. The company reported a loss of $49.5 million in the first six months of this year.
Maxjet last week attempted to reassure customers that the company is just fine, with Chief Executive Bill Stockbridge issuing a statement that said, “We look forward to serving our customers during the busy Christmas season, in 2008 and beyond.”
Fuel Saver
Etorus Inc., an Encino manufacturer of in-line fuel catalyst systems that keep fuel consumption and costs down, can now count one of North America’s largest automobile transporters among its backers.
Allen Park, Mich.-based Performance Transportation Services Inc. has asked Etorus to install its product in its entire fleet of nearly 2,000 vehicles. This is a significant deal for Etorus, which expects revenue this year of about $700,000.
The car transporter currently has the Etorus device installed in about 10 percent of its fleet and said it is saving the company about $2,000 a year for each vehicle in which it is installed.
Performance Transportation is acquiring the devices through Etorus’ innovative “pay per save” program, in which the company will install the device for free and then split the fuel savings for as long as its customer keeps the device in the vehicle.
Pipe Schemes
The U.S. government is set to impose substantial tariffs on several Chinese exporters after it found that the Chinese government had illegally subsidized metal pipe exports for years, costing local companies millions of dollars in lost revenue.
Long Beach-based Western Tube and Conduit Corp. and several other pipe manufacturers asked the government to look into the possibility of illegal subsidies after pipe exports from China jumped nearly tenfold between 2004 and 2006.
An investigation revealed that the Chinese companies had received subsidies, some in excess of 75 percent. The Chinese government has denied the finding.
Staff reporter Richard Clough can be reached at (323) 549-5225, ext. 251, or at
[email protected]
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