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4 | Defense Transportation Journal |

JUNE 2008

U.S. DOT No. 125563

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LOGISTICS

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CONTENTS

September 2008

FEATURES September 2008

•

Vol 64, No. 5

PUBLISHER

LTG Ken Wykle, USA (Ret.) EDITOR

Kent N. Gourdin MANAGING EDITOR

Karen Schmitt | karen@ndtahq.com CONTRIBUTING EDITOR

Denny Edwards

CIRCULATION MANAGER

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

Don Perkins

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 22304-7296, 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

Straight Talk on Tough Issues RAY EBELING

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NDTA Chairman of the Board

The Development and Globalization of Container Security

16

A Road to Recovery

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by Dr. Jim Giermanski

The Salute Military Golf Association (SMGA)

by Karen Schmitt

Who Are Those Guys? UTSI

27

62nd Annual NDTA Forum & Expo

31

Scott-St. Louis Chapter Co-Hosts Logistics Technology Forum

49

by Ken Wavering

DEPARTMENTS A-35 NEWS | Ms. Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 EDITORIAL | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 PRESIDENT’S CORNER | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 CHAPTER NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 GOVERNMENT NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 INDUSTRY NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 PROFESSIONAL DEVELOPMENT | Mr. Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 HOMELAND SECURITY | Mr. Lee Jackson. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 INDUSTRY INROADS | Ms. Denise Bailey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 PAGES PAST | COL Denny Edwards, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 HONOR ROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 CHAIRMAN’S CIRCLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 BOOKSHELF IDEAS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 UPDATE | Ken Massey Family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 INDEX OF ADVERTISERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

A-35

EDITORIAL REVIEW BOARD AND EDITORIAL OBJECTIVES Dr. James M. Daley, Dean, Helzberg School of Management, Rockhurst University, Kansas City, MO

Regional Forum – A-35 Perspective Ms. Lori Leffler, A-35 Chair

Dr. Kent N. Gourdin, Director, Global Logistics and Transportation Program, College of Charleston

Manager, US Government Sales The Hertz Corporation

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

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Defense Transportation Journal

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t the recent NDTA Regional Forum in Hershey, Pennsylvania, we held an A-35 meeting that included a very interesting mentoring session. Two senior industry leaders, Kirstin Knott, Director FedEx Government Services, and Greg Reid, Executive Vice President, Enterprise Solutions Group and Chief Marketing Officer, YRC Worldwide Inc, shared insightful information about: • Their own personal and professional experiences that assisted in their career advancement; • How we can best approach, network, and interact with senior staff (do’s and don’ts); and • Advice for young professionals as they pursue advancement.

Our mentors provided a wealth of information and advice: • Have a defined goal that you strive for, but always have a plan B. • Make sure to learn the job you are in to the best of you abilities. Don’t focus too much on the next step.

• Be honest with yourself and know when to ask for help.

• Have a 60-second commercial in your head to explain your company in a clear and concise manner.

• Don’t be caught flatfooted, you are always on.

• PLAY GOLF! • Work for people that you trust and respect.

• Learn to interview well.

• Have a passion for what you do.

• Get involved in industry associations like the NDTA.

By Terri Morrison, Wayne A. Conaway, George A. Borden • Get Hired! Winning Strategies to Ace the Interview Revised Edition by Paul Green • Think and Grow Rich

By Napoleon Hill This session proved very educational.

From all of the A-35ers in attendance, thank you to Kirsten and Greg for their participation.

We plan to repeat this type of mentoring session while in Reno as part of our annual A-35 meeting. Be sure to be there in order to learn, network, and be informed.

Other A-35 activities in Reno will include our Young Leaders Session, “Champions – on the Ground in Iraq and Afghanistan,” which is scheduled for Monday, September 22. During this session you will hear from young military and civilian professionals.

And don’t forget to adopt your Ducks.

Our goal this year is to surpass last year’s adoption in order to make more scholarships available to NDTA recipients. DTJ

On Globalization…

“A nation, like a person, has a mind. A mind that must be kept informed and alert, and that must know itself, and understand the hopes and needs of its neighbors—all the other nations that live within the narrowing circle of the world.”

Reading was recommended: • Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries |

SEPTEMBER 2008—Forum Issue

Find the ANSWER on page 64

EDITORIAL 2008 NDTA Annual Forum & Expo Dr. Kent N. Gourdin, Editor DTJ Director, Global Logistics and Transportation Program College of Charleston

I

f you are reading this in Reno, let me welcome you to the 2008 NDTA Forum and Expo; if you’re not, we’re sorry you couldn’t make it! The theme for this year’s gathering is a very timely one: “The Global Enterprise—Transformation and Competition.” Sessions will focus on remaining competitive in the face of rapidly changing global political and business arenas. In fact, balance seems to be the operative word as we struggle to both comprehend and respond to the various environmental events buffeting the world of transportation today.

Here at home, oil prices continue to soar, impacting us at all levels of our lives.

Incredibly, the average price of a gallon of regular gas is more than a dollar higher than it was this time last year. In an effort to conserve fuel, people are actually embracing mass transit as an alternative to commuting in their own cars. Car-pooling is back in favor, as are smaller, more fuel efficient vehicles. Commercial fleet operators across all modes of transportation are raising rates, adding fuel surcharges, and/or charging for services that heretofore have been free. Unfortunately, what becomes obvious as these conservation efforts take hold is that there is no free lunch. A report recently released by the DOT shows that Americans drove 3.7% fewer miles in May of this year than they did a year earlier, which is more than double the 1.8% drop seen in April. The reduction furthers many US policy goals, such as reducing oil consumption and emissions and improving air quality. However, coupled with a rapid shift away from gasguzzling vehicles, it also means consumers are paying less in federal fuel taxes, which go mostly to help finance highway and mass-transit systems. As a result, many such projects may have to be trimmed or eliminated all together,1 a troublesome situation given the transportation infrastructure issues facing our nation.

Another take on “balance” can be seen in China. Having just returned from

a three-week trip there, I was quite impressed with the transportation resources I observed. I guess I was expecting to see the China of 20 years ago, but nothing could be farther from that dreary scene.

BMWs, Audis, and Buicks are competing for space with buses and bicycles on the streets of the cities I visited. The airports in Shanghai and Beijing are world-class; in fact, the just-opened Terminal 3 at Beijing’s Capital International Airport is one of the most spectacular buildings I have ever been in. Intercity freeways are being built at a record pace. While mostly tolled, they seemed first-rate in terms of build quality and design. Interestingly, longdistance trucking did not appear to be big there, although that will probably change as the road network expands. High-speed passenger rail service connects the major cities in China with service comparable to that found on similar trains in Europe.

Unfortunately, this rapid improvement in their transportation systems has not come without costs. The excessive pollution levels that have become such a part of the Olympic Games are not confined to the big cities in China; pollution essentially blankets the country. In fact, I can’t recall seeing any significant amount of blue sky the entire time I was there. Another consequence is that China now ranks number one in the world in terms of people killed in automobile accidents every year.

Clearly, balancing all of the consequences that result from transportation decisions, whether you’re an individual, a carrier, the DOD, or a nation, is never easy. This year’s Forum will provide an excellent opportunity for us all to better understand both where we are and where we are going. I wish you all a productive and enjoyable stay in Reno. DTJ 1 Conkey, Christopher, “Americans Cut Back Driving, Straining Highway Funding,” The Wall Street Journal, July 28, 2008, p. 1A.

LETTER TO THE EDITOR “The Operation Backpack (OP) project continues—and with good news! This spring, LtCol Bruce Woodford, USAF, ANA ETT Medical Mentor at Camp Alamo, stepped up by collecting school supplies and other things for the children. His family back home in Warrensburg, MO, arranged a community effort with aid from Boy Scout Troop 673, and he contacted me through OP for shipping help from the US to Afghanistan.

FedEx took the task head on and joined the support effort with Blackwater [a private security firm that has supported OP since it started]. ”And on August 1, I got a call from a South Carolina Congressman requesting assistance to facilitate a shipment of coffee that was collected by a constituent. I will seek out a way to make that happen and will keep you posted!”

– Mike Meyer, Coordinator for Operation Backpack (see DTJ, December 2007) Thanks, Mike! The DTJ is delighted to share your good news and updates to the Operation Backpack story. You set a super example for us—by bringing industry members and resources together in order to deliver solutions.

Please give our best to your good friend Chief Ploeger who was on board during earlier stages of OP. And, kudos to FedEx, NDTA PLUS Member, and Kirstin Knott for pitching in with the Missouri shipment. The Association stands strong and tall with your dedicated commitment not only to the warfighter, but to humanitarian missions as well. Volunteer efforts have facilitated NDTA recognition beyond the Association—it looks like others are starting to recognize NDTA as the “go to” organization to get things moving.

– Karen Schmitt, Managing Editor DTJ Members, if you would like to be involved, please contact Mike at OperationBackpack@ndtahq.com. www.ndtahq.com | 5

PRESIDENT’S CORNER LTG Ken Wykle, USA (Ret.) NDTA President

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elcome to Reno! Thank you for attending the 62nd Annual Forum. We have an exciting and rewarding program planned.

The professional program consists of military and industry keynote speakers, roundtables, breakout sessions, off site tours, and an exposition for industry to promote their products and services. We are recognizing the outstanding transportation units from each of the armed services, our transportation leaders in the military, government, and industry, and providing many opportunities for networking.

The complete schedule of activities can be found in this issue of the DTJ. You will also find an extensive interview with the NDTA Chairman of the Board, Mr. Raymond Ebeling. He has served as our Chairman for the last 3 years, and this issue of the DTJ highlights his contributions to the Maritime Industry and to NDTA. All join me in thanking Ray for his leadership and commitment to our transportation and distribution industry and to our Nation.

The last year has been both challenging and rewarding. I have had the opportunity to travel and visit many of you in the US, Europe, and Asia. NDTA again supported the SDDC Training Symposium with outstanding government and industry exhibits, held a regional forum in Hershey, PA, and the Scott-St. Louis

WELC ME NEW MEMBERS

corporate as of August 28, 2008

chapter teamed rtz, t Gen Schwa appointmen with AFCEA to ns on your o ti la tu ra ir g Con States A host THE TechNet Staff United pport as Chief of Mid-America Conthe great su r fo s k n a h Force. T ference. Additionally rs. All of st three yea la e th g n ri u our chapters hosted d ith me in NDTA join w in s d n ie fr r professional events, you est. u the very b contributed to chariwishing yo ties and community V/R events, and provided Ken scholarships to deservGen McN abb, ing students—more Congratu than $100,000. lations o n your ap as Comm pointmen Thank you for all you ander, U t S Transport C ommand are doing! Our functional ation . Our ND T A lo m ok forwa embers committees worked the issues imrd to wo rking wit as you s h you pacting the industry. The following et the co urse and governm le ad the is a brief summary of their activities ent/indu stry part n e rs hip. during the last year: V/R • Airlift Committee continues to focus on the health of the industry, the impact of the industry changes on the structure and viability of the CRAF program, and sharing knowledge on programs that may have commonality across commercial and military operations.

• Sealift Committee continues to emphasize Commercial first, VISA, and the MSP program. Industry operations focus on end to end delivery of materiel to the theater of operations to include security, visibility, accountability, and liability.

Ken

• Surface Committee is involved with DTCI implementation and the associated changes, AA&E movements and all aspects of security, and the movement of retrograde equipment to DOD depot facilities, and heavy equipment to the training areas.

CHAIRMAN’S CIRCLE

The Pasha Group Team Worldwide

SUSTAINING MEMBERS

ManTech International, Corp.

OAG

REGIONAL PATRONS

continued on page 60

Coastal Maritime Stevedoring, LLC Marriott International

www.ndtahq.com | 7

Photo by LCPL Park, USMC

THE ARMED FORCES HAVE WILLIAM STENHOUSE. After a tent fire in Iraq destroyed a reserve of equipment, the Armed Forces urgently needed a thousand uniforms delivered to the heart of a remote desert. Ready and waiting, Agility’s William Stenhouse was in the perfect position to help. Airlifting from the strategic Defense Distribution Center in Southwest Asia, he processed, tracked and delivered a whirlwind 1,223 orders in 24 hours. With William by their side, service members are always supplied wherever they go. THE

ARMED FORCES HAVE AGILITY.

William Stenhouse DDKS Project Manager Agility Kuwait

agilitylogistics.com

Prior to greeting attendees of the 62nd annual NDTA Forum & Expo in Reno/ Tahoe, Nevada, Mr. Raymond P. Ebeling, Association Board Chairman, took a moment to share his thoughts with DTJ readers. His comments reflect special concerns that face colleagues in both commercial and government enterprise and that reinforce the importance of this year’s Forum theme, “The Global Enterprise—Transformation and Competition.”

What decisions have you made that enable ASL to better compete in the global market?

The majority of our business is with the US Government. We have found that a customer focused approach works well here as it does more generally. For some reason, many companies lose their customer focus when it comes to Government business, treating it more like an entitlement than an opportunity and engaging in excessive litigation when contract issues arise. We try to stay focused on the customer.

A broad diversification strategy, both geographically and in lines of business, has also proven successful. And flexibility is an absolute requirement when one focuses on DOD business, which has reduced by 70% in the US-Europe trade in the last

15 years; has grown enormously in the Mideast in the last 5 years, (but which will likely be downsized in the near future); and which is undergoing major change in the Pacific in the next few years.

What changes will the high cost of fuel cause in the global supply chain? Do you expect to make any changes in your transit routes/frequency of service due to increased fuel charges? www.ndtahq.com | 9

With the price of bunker fuel now at $750 per ton, and possibly moving towards $1000 per ton, up from under $200 just a few years ago, all aspects of our service and operation have to be evaluated, and much will change.

To maintain viable services, it is imperative for a carrier to pass on most of this unprecedented escalation, preferably immediately as a FAF, or later as a rate increase. But, there is obviously considerable customer resistance. The fact is, though, that the carriers cannot absorb this huge increase, and have no choice but to walk away from non-paying business.

This action and reaction process can lead to significant and rather sudden changes in service patterns. All carriers are going through a process of evaluating and re-evaluating compensatory cargoes and service patterns. Expect change, and more change.

>> CORPORATE PROFILE In addition to his Chairmanship of NDTA, Mr. Ebeling presides over American Roll-On Roll-Off Carriers, LLC (ARC) as President and Chairman. ARC is one of the principal companies of the ASL Group, which consists of US Flag Roll-On Roll-Off ship owning and ship operating companies, as well as logistics companies focused on transportation, processing, and storage of vehicles.

Does ASL employ any “Green Initiatives”?

ARC currently operates 8 US Flag RoRo ships—4 each in the US-Mideast and US-European trades. American Auto Logistics, another principal member of the ASL Group, has managed the Global POV Contract for 10 years.

The Group’s revenues are just over $500 million—small by global standards, but reasonable in the niche market that is their core focus.

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Defense Transportation Journal

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Environmental issues are at the forefront of ARC’s agenda. ARC is committed to complying with national and international environmental legislation, regulations, and other requirements. As a company dedicated to ocean transport and logistics, the main goal is to reduce the environmental impact of cargo-carrying operations.

ARC constantly evaluates best practices for treatment of ballast water, is active with regard to shipboard waste management, has also undertaken a program to use antifouling paint for hull coatings, and has additional objectives and programs with regard to exhaust by-product and CO2 emissions. ARC employs weather routing and schedule planning to reduce fuel consumption per vessel mile and reduce overall emissions and purchases low-sulfur fuel (1.5% sulfur content or less) whenever possible, even though it costs significantly more than regular heavy fuel oil. The ARC environmental management program also calls for monitoring and research in to the reduction of NOx (nitrogen oxides) and reduction of SOx (sulfur oxides) by limiting sulfur content in marine fuels and reduction of green house gasses.

ARC’s principal investors, Wallenius Lines of Sweden and Wilhelmsen Lines of Norway, collectively control 180 vessels in wholly or jointly owned ventures, and have been at the forefront of environmentally cutting-edge maritime projects. This

SEPTEMBER 2008—Forum Issue

enables ARC to leverage the strong environmental programs and capabilities that Wallenius and Wilhelmsen bring to the shipping community. Recent initiatives include the E/S Orcelle environmental concept vessel, powered by solar, wind, and wave energy; Wallenius Water’s PureBallast system; Wilhelmsen’s work on low-sulfur fuels; and Wilhelmsen Maritime Service’s ballast water treatment system. Wallenius and Wilhelmsen have received numerous awards for their environmental initiatives.

Supply chain security was frontpage news after 9/11, but it is not headline material today. Is the emphasis still there, or are we losing focus?

In regard to maritime and supply chain security, rhetoric and reality have drifted apart. For example, some in the US Congress continue to advocate 100% container scanning—but not a single foreign government has agreed to this approach.

It remains critical to get maritime security right—or the consequences could be truly catastrophic.

To date, most government efforts on security have focused on preventive measures, but it is also critical to have a recovery plan for the next disaster. One hears loose talk that if there were a catastrophic terrorist incident in a US port, all US ports would be closed. But, that is totally impractical.

It seems to me that there is no option today that allows withdrawal from the global economy and global supply chains. We had best, therefore, become expert at securing it and also adept at restarting it and keeping it working in the event of future attack.

Tell us about Wallenius Wilhelmsen Lines, a company you work with closely.

The principal investors in the ASL Group are Wallenius Lines of Stockholm, Sweden and Wilhelmsen Lines of Oslo, Norway.

They are also key investors in Wallenius Wilhelmsen Lines (WWL), EUKOR Car Carriers, and others, and each also has sizeable other investments on their own.

Total Group revenues exceed $7 billion.

The companies are all managed separately, but we work hard to realize effective synergies within the group. Use of common terminals and stevedores is a good example, as well as various space charter arrangements.

Articles in trade journals indicate a gradual shift in some production from China to India and Southeast Asia—are you seeing any shifts in Ro/Ro cargo?

The principal cargoes carried by RoRo carriers are cars and other vehicles, and there has been enormous and continual change in the production and distribution of vehicles for

the US dollar losing so much of its value and the Euro appearing to be the currency of choice, do you foresee any affect on your shipping operations? Do you need to make any changes to your operations or pricing structure due to the changes in currency values?

I do not think the dollar is dead yet. Right now it is down, of course, reflecting major

Mr. Ebeling, with wife Bonnie, enjoys a good game of golf with colleagues and friends. He is known to play in just about any kind of weather—from driving wind and rain to freezing temperatures. “The conditions are simply a part of the challenge,” explains Ebeling. “My favorite courses are in Scotland and in Ireland at St. Andrews and Gleneagles.

In the United States, I like Pebble Beach, Kiawah Ocean Course, and Caves Valley.”

the last 20 years, starting with the Japanese manufacturers’ establishment of “transplant” capabilities in the US and Europe.

Production sites are now anywhere and everywhere; the historical linkage between nationality of the company and production sites in that country is completely broken, not only for US companies, but also Japanese, Korean, and European companies.

The global dispersal of production sites, basically seeking lowest cost operations, as well as dealing with certain currency and tax implications, could be re-evaluated somewhat in the future based on the fuel cost crisis and its impact on ocean carrier costs and rates. Historically, ocean carriage has been an almost negligible cost of operations, and that will now change somewhat.

Traditionally, many countries have linked their currency to the value of the US dollar or priced their goods in terms of dollars. With

problems in the US economy, which have yet to be fully resolved.

My long-term view is that the US economy will adjust (after considerable and perhaps long-term pain) and will come back, and the dollar will strengthen with it.

If things like global ocean freight rates, the price of oil, and the price of gold, etc. become delinked to the dollar, you will then see much greater volatility in the global economy.

Another topic of frequent discussion is infrastructure—more specifically the transportation infrastructure. What does the United States need to do to remain the leader in moving freight and passengers both within the United States and internationally?

The US clearly must develop and implement a national strategy for transportation infrastructure. The balkanized approach we have now, with every state and

many counties and cities pursuing separate strategies—has brought us to the current crisis.

Just look at US ports—a piece of the infrastructure with which I am somewhat familiar.

Does every port need to be dredged to 50 feet? Of course not. Perhaps 10 or 20 at most—not 200. But, there is no national plan or authority to decide.

Does every port need double stack rail access, with hundreds of bridges and tunnels therefore requiring reconstruction?

Same answer.

All companies in my business have a “national strategy” when we start to do business in a new country—a strategy that guides us in port selection, terminal arrangements, intermodal connections, etc., and that integrates them in an optimal pattern.

It is, frankly, ludicrous that the US Government does not have a coherent, long-term, national transportation and infrastructure strategy.

Coastal Shipping, Short Sea Shipping, or Marine Highways—the current term—are being proposed as a way to relieve congestion on the I-95 corridor and other coastal highways. What are the conditions necessary for the Marine Highway concept to become a reality?

Short Sea Shipping is a very positive concept, with significant potential benefits in terms of fuel economy, congestion relief, safety, and reduced environmental impact, to name a few.

What is necessary to make the concept a reality is what every business needs—a customer. A customer that will pay the freight.

The fact is that most cargo within the US will still be picked up and delivered by a truck. So the “marine highway” has to be developed in such a way that truckers view the marine highway as a more competitive and more desirable option than their current over the road operations on today’s highways.

I personally think this can happen and will happen, but there are a lot of comparisons and trade-offs of long-term costs versus short-term costs and understanding of hidden costs that need to be dealt with to get it right.

As noted earlier, it would also need to be part of a national transportation strategy. www.ndtahq.com | 11

What is your assessment of DOD programs, in particular VISA—the Voluntary Intermodal Sealift Agreement—to provide capability during a crisis?

In assessing the VISA Program and the related MSP Program, which is a US Government financed support program for the US Flag international fleet, one has to start with the bare fact that there is no economic need or justification for anyone to own or operate US Flag ships.

In fact, just the opposite is true. In a global economy where only the truly competitive will survive, one would not survive long given the cost burdens of US crew costs, US Coast Guard and Customs requirements specific to US ships, the US labor, environmental, and liability legal regimes, and the US tax burden.

So there would simply be no US Flag international fleet without a support program—ie, VISA and MSP. The question then becomes why the Government should support such a fleet.

The justification for that support and the reason to own and operate a US Flag international fleet derives from DOD’s need for sealift to provide for the US National Defense. There is a very compelling case for the VISA and MSP programs, which support the US Flag fleet that provides the essential sealift to DOD. US DOD has a clear need for strategic sealift, and, generally speaking, there are only 4 ways to obtain that sealift.

First, one could use foreign carriers and foreign crews, but here it is essential to understand all the players—owners, bareboat charterers, time charterers, technical managers, etc. They all have different roles and authorities, and those roles can differ by carrier. You must also look at the crews: captains, officers, and unlicensed mariners—seamen of mixed nationalities. The vast majority are foreign— predominantly Chinese, Indian, and Filipino—and while they are generally very competent seafarers, foreign nationality could be a problem depending on the DOD mission and location. In fact, it was a problem during Operations Desert Shield & Storm, when foreign-owned and foreign-crewed ships refused to enter the area of operations. VISA/MSP solved this dilemma, providing for known vetted and security cleared contractors, firm contracts for DOD with shipping com12 |

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panies using US citizen crews, and ironclad commitments and contracts with clear and definite obligations.

Secondly, one could use the RRF (Ready Reserve Fleet). But the RRF costs more per ship to merely maintain a ship in lay-up than the MSP Program costs to operate one in active commerce. Also, MSP ships come with two active crews, whereas the RRF does not come with any, and indeed the merchant mariner crews

One must look at the true cost of US Flag commercial ships, not the cost after application of various internal DOD mark-ups.

There are significant markups, and these simply shuffle DOD overhead costs around, but the DOD overhead cost does not go away, no matter how allocated. When all the numbers are properly placed and analyzed, MSP is the most cost effective option by far. of the MSP fleet must be cannibalized to man the RRF ships in an emergency.

The RRF ships have to be purchased, as well, while MSP requires no government investment. So, that’s not a very good option either.

Third, one could use Government owned and operated assets like the LMSRs, but in light of the fact that these are 12 times more costly to procure, maintain, and operate than the MSP fleet, that does not seem to be very good stewardship of taxpayer dollars.

The fourth option is the US Flag international fleet. I am not referring here to the Jones Act fleet, as those ships are fully committed to domestic service and are

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not really available for emergency DOD sealift, but rather to the US-flagged and US-crewed ships operating in international trade, most of which participate in the Maritime Security Program (MSP) and the Voluntary Intermodal Sealift Agreement (VISA). One must look at the true cost of US Flag commercial ships, not the cost after application of various internal DOD mark-ups. There are significant mark-ups, and these simply shuffle DOD overhead costs around, but the DOD overhead cost does not go away, no matter how allocated. When all the numbers are properly placed and analyzed, MSP is the most cost effective option by far.

A final point on VISA—while the VISA contracts provide that DOD may take the ships in an emergency, basically you do not want to do that. Rather, DOD should use the MSP carriers’ services, which include the full ship, terminal, intermodal, and logistics network. DOD simply cannot directly manage the carriers’ services, especially those involving the global interrelated network of ships, terminals, and intermodal and logistics services.

The Maritime Security Program has been very successful in ensuring US flag capability to the DOD in an emergency. Is the program sized and funded appropriately?

MSP is an incredibly well-conceived program under which DOD gets guaranteed service and capacity from a fleet of militarily-useful commercial ships and attendant intermodal assets and networks for a very small amount of money ($156 million annually). By its own estimate, it would cost the government $65 billion to acquire these assets and networks, and certainly more than $156 million annually to operate.

But there are some issues with the current program. It is scheduled to expire in 2015, so the long-term future of the program is not assured, and this makes it difficult for participant carriers to reinvest in ships, which are 30-year long-term assets.

The expiration date should be eliminated.

In addition, the program authorizes participant ships until they are 25 years old, after which they must be replaced. In the past, this may have been considered a reasonable estimate of a ship’s expected life cycle, but today’s ships are better built and better maintained, and therefore can

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long ago by the Wilson-Weeks agreement of 1954, between the then Secretaries of Commerce and Defense. It was further expounded upon by National Security Directive 28, the “National Security Directive on Sealift,” in 1989 and most recently given further scope and depth by a recent USTRANSCOM Directive.

The Ready Reserve Fleet (RRF) is old, and there is talk about how to best recapitalize it. What suggestions do you have on the best approach to modernize the RRF? “I am very proud to have the opportunity to serve on the NDTA Board. The NDTA serves an incredibly valuable function as a bridge between DOD and the transportation industries, which provide many important services to DOD. As we all become more specialized and more focused on our specific core functions, it is easy to lose perspective on the other side’s objectives and needs. This goes both ways. I am a firm believer that 90% or more of the issues that divide us can be resolved in a jointly agreeable and successful manner, if each side truly understands the other side’s objectives, requirements, and needs. Pictured above: Ebeling with Gen Schwartz, Mr. and Mrs. Auggie Tellerz and Mr. Michael Sacco.

be expected to be commercially viable for 30 to 35 years; the program should be changed to reflect this reality.

The MSP program is currently authorized for $156 million for 60 vessels, or $2.6M per ship per year—this funding is subject to the annual appropriations process in Congress. Full funding must be secured to maintain the fleet at 60 ships; if the program is not fully funded, then by statute, ships are supposed to be removed from the program. The purpose of the stipend is to offset the higher costs associated with flagging, crewing, and operating a US Flag vessel. This is a moving target, and tough to stay competitive with. It is tougher still considering the crisis in fuel prices, which is a game-changing event; the rise in fuel cost over the past several years has effectively wiped out the dollar value of the MSP contracts. Financial challenges and funding issues are a constant challenge to the stability of the international fleet.

Another unfortunate issue in the US shipping industry is the internal foodfight over an extreme technicality: the definition of different types of citizenships of US Flag ship operators. The issue is irrelevant to DOD, the primary customer, due to the VISA contract and welldesigned processes that ensure the success of the program. The reality is that 90% of the MSP fleet has been funded by international shipping companies based in Denmark, Singapore, Germany, Norway, and Sweden. Further, it is a fact that the 14 |

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so-called “Section 2” citizens cannot be successful operating in international trade without accessing and leveraging international partners as well. The bottom line is that the involvement of foreign capital should be welcome and seen as having made the difference in creating a successful MSP program.

While MSP gets us to a rough breakeven scenario versus foreign crew and operating costs, it does not get us to a profitable scenario; and there is still no economic incentive to operate a US Flag fleet. The incentive comes from the carriage of US Flag preference cargoes, including US military cargo. But, the cargo preference laws of the United States must be properly adhered to and enforced, and a priority must be given for US Flag government cargo to move on US Flag ships, as opposed to governmentowned ships, to make it work.

Many people do not understand why cargo preference and commercial priority are so important. Basically, the survival of the US Flag international fleet is at stake.

MSP, cargo preference, and commercial priority are the three pillars on which the maintenance of a strong US Flag international fleet and US merchant marine stand. Cargo preference entails that cargo financed in whole, or in part, by the US government, must sail on US Flag vessels. The key provisions can be found in the Cargo Preference Act of 1904, Public Resolution 17, the Cargo Preference Act of 1954, and the Food Security Act of 1985. Cargo priority was memorialized

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I believe the mission and strategy of the RRF should be refreshed and challenged before there is talk about recapitalizing the RRF. How many and what type of ships are necessary to do what? And, what are the costs and what are the alternatives?

Why invest hundreds of millions in old ships for the RRF, when new MSP ships can be put into service without Government investment?

Why invest in RRF ships, which cost more per ship, per year, simply to maintain, than it costs for an active MSP ship to fully operate in international trade on a full time basis—peacetime and wartime?

Why invest in RRF ships, which have no crews, when the MSP fleet operates with two crews per ship, which become part of the strategic manpower pool?

I would not advocate that there be no RRF, but I do advocate that there be a new balance struck between the numbers of ships in the respective RRF and MSP fleets.

The MSP fleet provides far more value for far less Government investment and cost.

What lessons learned can you offer to young professionals or students who are interested in joining the shipping industry?

The thing I like to stress to young professionals who want to develop their career fully is flexibility. Move around as much as you can—functionally—geographically—even multiple companies. Focus on developing broad capabilities and a generalist portfolio.

This is sometimes tough because the specialists—in systems or finance or law or other specific areas—will make more money early on. But, in the long run, the generalist with a broad portfolio will be more successful. DTJ

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The nations of the trading world and non-government organizations (NGOs) have recognized and published the need for global supply chain security. Most of those nations have also created laws and programs to specifically address supply chain security issues. The growth of this movement has taken place and can be described in three phases: Phase I, the need for Customs harmonization, or pre-9/11; Phase II, post-9/11 or Maritime Model; and Phase III, the Electronic Global Chain of Custody (EGCC) model.

The development of these models demonstrates a natural maturing in understanding the vulnerabilities, threats, technological changes, market forces, and the role of government action in accommodating a more sophisticated, robust, and vulnerable global supply chain. Understanding these phases should put into perspective current and future concerns and needs in preserving these supply chains because of their importance to not only the growth and well-being of a society, but also a its very survival.

THE IMPORTANCE OF THE SUPPLY CHAIN One of the most comprehensive descriptions of the absolute value and need for protection of the global supply chain was done recently by Robert W. Kelly, JD, a senior advisor to the Reform Institute’s Homeland and National Security Center.

He describes the global supply chain as a “thing of beauty that defines the notion of efficiency [1].” To Kelly, the beauty is as much in the global transportation efficiencies as it is in the concept of floating inventories needed at a certain time and 16 |

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by Dr. Jim Giermanski

place in the world. For this efficiency to be present, coordination and protection of the supply line, as well as the security of the nations handling these international carriers of cargo, are essential.

The interdependency of nations is seen in almost any area of business activity. Component parts are often made in countries far removed from manufacturing origin. Pharmaceutical needs and medicines vary worldwide, from AIDS patients in Africa, to a flu epidemic in the US, to supplies for victims of tsunamis or earthquakes in Asia. At any given time, a supply chain disruption can be catastrophic. The growth and sophistication of supply chain efficiencies began fairly recently. The modern development of trade facilitations, harmonization of tariff schedules, harmonization of Customs procedures, inter-Customs cooperation, and the cooperation among trading nations really began about 20 years ago with

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the Revised Kyoto Convention of 1999, which ushered in the first phase of global supply chain modernization and security.

The purpose of this paper, however, is not to prove the importance of the supply chain, but rather to demonstrate the developed level of the security, particularly container security, within the supply chain in the face of terrorism, and to show where the major trading nations stand in that regard.

PHASE I (PRE-9/11): HARMONIZING DIVERGENT CUSTOMS PRACTICES [2] Before 9/11, the major concern about the global supply chain was its harmony among trading nations. Customs administrations around the world had differing views, attitudes, and procedures when it came to allowing the entry of goods. Tariff schedules differed with respect to the classification and taxation of goods; Customs documents varied among nations;

and procedures were becoming more inefficient because of the reliance on unique paper-document requirements at a time when the volume and complexity of international trade was growing. In addition, certain questions became commonplace with respect to a shipment. When did it leave? Where is it? When will it get here?

What’s its condition? If it left the port ten days ago, why isn’t it here now? These are familiar questions to any firm depending on a global supply chain. But governments have similar questions for different reasons. Who’s the shipper? Where is it coming from? Is it coming through a CSI port?

What do we know about this container?

With the incredible increase of container volumes, seaport growth, and unpredictable seaport selection and usage, industry leaders and governments are looking for more knowledge faster.

The genesis for improving and modernizing Customs practices around the

world was the Revised Kyoto Convention of 1999 [3]. It specifically supported the concept of applying new technology to Customs practices. The Revised Kyoto Convention of 1999 had the goals of simplifying Customs procedures with an emphasis on information technology and risk management involving automated systems to target and select high-risk shipments for inspection based on pre-arrival information. The essence of the Revised Kyoto Convention of 1999 can be summarized by 5 areas of focus: a. simplification of Customs procedures; b. information technology; c. creation of automated targeting systems; d. maximum use of information technology; and e. the importance of e-commerce.

It entered into force on February 3, 2006 [4].

PHASE II (POST-9/11): THE EMERGENCE OF THE MARITIME MODEL, 2001-2004 The events of 9/11 were a defining moment in history, especially for the United States. Terrorism on a grand scale became a fact of life for Americans. As a result, the United States responded to a new potential supply-chain threat by creating security programs that focused primarily on the maritime factor, since 90% or more of US international commerce is a result of maritime transportation. Given its importance in the global supply chain, it seemed to make perfect sense to address the security issues linked to containers arriving into the United States from around the world. Although the container is the life line conveyance of needed cargo, it could also be a Trojan Horse carrying not only explosives, but also weapons of mass destruction (WMD). The first programs that influenced the creation of the Maritime Model were the US Customs Trade Partnership Against Terrorism (C-TPAT), and the Container Initiative (CSI).

C-TPAT was announced in 2001. It was—and is—a voluntary program for industry, initially focused on large US importers and exporters, ports/terminal operators, and carriers. Other participants were added, and today it has 12 different categories of participants. It began with only 7 major importers. In 2008, it has more than 8000 certified members.

In the beginning, it had only 7 security areas of concern with respect to the supply chain: business partner requirements, physical access security, personnel security, procedural security, personnel security, container security, and education/ training security.

In 2002, CSI was initiated. CSI had as its sole focus maritime security. It required that the vessel carrier send to US Customs and Border Protection (CBP) the manifest of every container destined for the United States 24 hours before the container was loaded into the vessel in the foreign port of export. One of its goals was to have foreign nations cooperate with the United States by allowing US Customs officials to operate in their ports. The target number of ports worldwide was 58, with the aim of reaching that number by 2007. Those 58 ports account for 85% of inbound container traffic to the United States [5]. Changes in the traditional maritime and Customs www.ndtahq.com | 17

But governments have similar questions for different reasons. Who’s the shipper? Where is it coming from? Is it coming through a CSI port? What do we know about this container? With the incredible increase of container volumes, seaport growth, and unpredictable seaport selection and usage, industry leaders and governments are looking for more knowledge faster. process were also made. For instance, all goods coming into the United States had to be described by, at least, a 6-digit tariff number or a more comprehensive description if the 6-digit treatment was not specific enough. The use of terms like FAK (freight of all kinds) and STC (said to contain), among others, was no longer permissible.

Then the Trade Act of 2002 as amended by The Maritime Transportation Security Act in November 2002 (MTSA) were both passed and signed into law in the United States. The focus of the MTSA was also related to maritime operations. It covered areas such as: a. advance cargo data (electronically); b. security-related issues; c. vessel identification systems; d. vessel security plans; e. port security assessments; and, in the operational and efficiency matters, f. a maritime intelligence system.

There were also actions within international organizations like the Transported 18 |

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Asset Protection Association (TAPA) and the International Maritime Organization (IMO).

In 2001, TAPA, an association of security professionals from high technology companies and associated business partners, released its Freight Security Standards (FSR) that specify the minimum acceptable security standards for assets traveling throughout the supply chain and the methods to be used in maintaining those standards. In addition, the FSR outlined the processes and specifications for suppliers to attain TAPA certification for their facilities and transit operations [6].

In 2004, the IMO created and released its International Ship and Port Facility Security (ISPS) Code. The ISPS Code lays down requirements with respect to maritime security and recommendations on ways in which these requirements shall be met. The ISPS Code includes security measures at three levels. Level one is the level at which ships and ports work in normal situations. Level two is merely an intensification of level one when a high risk is determined. Security level three is

SEPTEMBER 2008—Forum Issue

an amplification of level two. It is activated in exceptional cases where there is an imminent risk of a security incident, which leads to a further intensification of the routines [7,8].

In 2004 the U.N. Economic Commission for Europe approved Recommendation 33, a recommendation for a “Single Window.” A Single Window is an electronic portal through which trade-related information and documents are sent. It provides the capacity to transmit electronically through a single entry point all the import, export, and transit-related regulatory requirements, harmonizing differing modes of transmission [9].

Thus, from 2001 to 2004, the focus on supply chain security was on the “port-toport” linkage. This focus became a Maritime Model of supply chain security. It became apparent, however, that perhaps the worst place to find a dirty bomb in a container was at a major international seaport. Additionally, there was concern that a bomb could easily be put into a container at a foreign origin and be moved with ease into a major port facility with no intention of ever leaving that port, only detonating there. Therefore, beginning in 2004, the emphasis began to switch to a new concept, one of origin-todestination, moving back the security area away from the seaports.

PHASE III: ELECTRONIC GLOBAL CHAIN OF CUSTODY MODEL (EGCC), 2004-2008 The movement away from the Maritime Model began in 2004. In that year, the Kyoto Convention Information and Communication Technology (ICT) Guidelines were published. The Guidelines were specifically related to the use of information technology and the electronic transmission of Customs-related data through and among government and non-government agencies. For the first time, the focus became one of a chain of “electronic” data, a single global schema linked electronically from beginning to end.

In the same year, the EU became active in defining a supply chain. It considered a supply chain as beginning at origin and ending at destination. EC Regulation No. 1935/2004 included the concept of traceability from origin to destination with respect to the safety of foodstuffs. In 2005, EU report #40008032-6-2 – 2005 highlighted the need for security as essential to

a supply chain. The European Union fostered the concept that the supply chain be secure from origin to destination. Then, in 2005, the World Customs Organization (WCO), released its Framework of Standards to Secure and Facilitate Global Trade. Section 1-2-4 of the Standards pronounced that supply chain security begins at stuffing (loading) the container and ends at unloading the container at destination.

Appendix 1 to Annex 1 of the Standards is more specific, spelling out that continuous control from stuffing through intermediate handling, loading on a carrier, off loading, terminal security, and unloading at destination are essential. Finally, the Standards required the electronic transmission of trade data and the use of Edifact and XML as EDI protocols. Also in 2005, the United States adopted the WCO Standards, joining other Customs Administrations around the world who are members of the WCO and who believe that security begins at origin and ends at destination, managed with electronic documentation and communication.

In 2006, the United Nations Conference on Trade and Development met in Geneva to discuss the application of the Kyoto Convention ICT Guidelines to facilitate crossborder trade [10], adding more pressure and credibility to an electronic end-to-end chain of custody. Also in 2005/2006/2007, C-TPAT added new standards for importers and carriers that required compliance with the mandate that security begins at stuffing and ends at destination. Satellite tracking and monitoring were also encouraged by offering special CBP treatment to their users. C-TPAT also added two more areas of security compliance: the requirement that the foreign business partners comply with C-TPAT guidelines and information technology security. In 2006, the United States passed the SAFE Port Act, in which security is defined to include advance electronic information, originto-destination security; and the benefit of Green Lanes (Tier-3) specialized treatment for importers using smart container technology. The Act included many of the already established WCO supply chain security components. The Act also codified C-TPAT and CSI into US law.

Changes were not only occurring in the United States. The European Union established its AEO (Authorized Economic Operator) program in 2006 to be 20 |

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implemented in 2008. Components of it will be mandatory in 2009 for “traders to provide customs authorities with advance information on goods brought into or out of the customs territory of the European Community [11].” AEO requires the use of advance electronic data, electronic records, security compliance to the WCO’s Standards, adopts the Single Window concept, allows access to cargo and the control of seals on containers by authorized personnel only, and mandates control of cargo from loading to unloading. Most of the AEO is consistent with C-TPAT, in-

tronic data discoverable for litigation in civil matters and has a direct and critical impact on the role and value of electronic data in demonstrating the existence of a legal chain of custody. Its application also suggests that the role of third party control of electronic data in their servers and hard drives now has legal weight in litigation and in the verification process used

by Customs authorities in resolving questionable inbound shipments, for instance, problems of transshipment.

These events taken in their chronological order signify clearly that the Mari-

Smart containers will be able to tell their users if they are being breached; whether they are being hijacked; who supervised their stuffing; and whether they contain explosives, radio active materials including shielded enriched uranium, drugs, or human cargo. Technologies such as GSM/Zigbee will also be employed. RFID will likely see less utilization given its use as a potential IED (Improvise Explosive Device) at our US port. dicating a movement toward a universal concept of global supply chain security.

More changes took place in 2007. The United States passed the Implementing the 9/11 Commission Recommendations Act of 2007, which requires breach detection and access “prior” to entering the economic zone of the US. Additionally, the Act requires electronic notification of breach in the supply chain and requires the application of origin-to-destination security for all truck, rail, and vessels in international commerce with the United States. One issue in the Act, however, is still connected to ports—the issue of 100% scanning.

This issue, however, is one that may not be accepted by the rest of the trading world.

In fact, in June 2008, the WCO will have a 2-day conference to examine the future of the 100% scanning position of the United States in light of SAFE Framework of Standards to Secure and Facilitate Global Trade and the Revised Kyoto Convention on the simplification and harmonization of Customs procedures.

Finally, and perhaps as significant as US legislation, was the change to US Federal Rules of Civil Procedure that went into effect in 2007. This change made elec-

SEPTEMBER 2008—Forum Issue

time Model of supply chain security is now obsolete. The trading world is using the Electronic Global Chain of Custody model. The new EGCC paradigm is now origin-to-destination, impacting the current level of technology typically used in the Maritime Model that focused on portto-port security. No longer will RFID-only and satellite tracking-only be the standard technologies employed. In fact, Greg Olsavsky, CBP’s Director of Cargo Control, has said, “RFID is only an interim solution and that ultimately CBP will use container security devices [12].” Smart containers will be able to tell their users if they are being breached; whether they are being hijacked; who supervised their stuffing; and whether they contain explosives, radio active materials including shielded enriched uranium, drugs, or human cargo [13].

Technologies such as GSM/Zigbee will also be employed. RFID will likely see less utilization given its use as a potential IED (Improvise Explosive Device) at our US port [14]. Moreover, these more applicable and appropriate global technologies will be usable in a Single Window application.

New international communications and control centers will be used to monitor and

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manage these technologies and the flow of data from them. These new centers will monitor smart-container communications, control container access, record container events, report unauthorized container access or movement to law enforcement or first responders, preserve electronic records of its transactions, and provide third party

One of the significant tasks of the program is to identify the synergies of a smart supply chain management system to be consistent with the needs of the trade community, the Customs administration of that community, and the security of the nations hosting those elements of that community. verifications of global movements of containers from origin to destination.

All of these functions of international communication and control fit perfectly within the concept of a Single Window, adopted also by the United States [15].

The US International Trade Data System (ITDS) requires the use of a Single Window. The US Single Window is the Automated Commercial Environment System (ACE). ACE will eventually combine the existing CBP systems: a. Automated Manifest System (AMS); b. Automated Broker Interface (ABI); c. Automated Export System (AES); and the d. Automated Commercial System (ACS).

In order to demonstrate the viability of this model, at the time of this writing the European Union’s Seventh Framework Programme is reviewing for signature a comprehensive effort of some of the biggest participants in the global supply chain and those who study it to demonstrate the viability of the EGCC. Proposal No. 218547 has as one of its aims to develop a “Smart supply chain management in Intermodal door-to22 |

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door container transport” management system. One of the significant tasks of the program is to identify the synergies of a smart supply chain management system to be consistent with the needs of the trade community, the Customs administration of that community, and the security of the nations hosting those elements of that community.

Since 1999, the international trading community and its governments have found common ground—the need for a secure global supply system, not only for the security of a single nation’s homeland, but also for the continued efficiency of a supply chain that needs to be monitored, managed, and protected. A secure international supply chain is the sine qua non condition of the continued existence of modern society. The global supply chain must be protected and preserved. The Electronic Global Chain of Custody Model is its best chance of preservation and survival. DTJ Dr. Jim Giermanski is Professor of International Business and Director of Centre for Global Commerce at Belmont Abbey College.

He is also a reviewer for the Transportation Research Board, US National Research Council, and is a regular contributor to Logistics Management, the Journal of Commerce, Traffic World, and Transport Topics among others.

Dr. Giermanski is Chairman of the Board of Powers International, Inc., an international transportation security company.

REFERENCES 1. Kelly, Robert W. Chain of Perils: Hardening the Global Supply Chain and Strengthening America’s Resilience. The Reform Institute. March 6, 2008:3.

2. For a more comprehensive treatment, see Giermanski, James. Is It Safe? Cargo Security International. February/March 2007:48-50.

3. World Customs Organization. Revised Kyoto Convention, 1999. http://www. wcoomd.org/kybodycontent.htm 4. World Customs Organization. http:// www.wcoomd.org/home_wco_topics_pfoverviewboxes_tools_and_instruments_pfrevisedkyotoconv.htm 5. Remarks by CBP Commissioner W. Ralph Basham on Container Security at the Center for Strategic and International Studies.

July 11, 2007. http://www.cbp.gov/xp/

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cgov/newsroom/commissioner/speeches_ statements/commish_remarks_csc.xml 6. Transported Asses Protection Association.

FSR Certification Requirements. www.tapaonline.org/new/engl/fsr_certification.html 7. International Maritime Organization.

Maritime Security. www.imo.org 8. Alabama State Port Authority. The International Ship and Port Facility Security Code. www.asdd.com/asd/ispscode.htm 9. Economic Commission for Europe. United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT). Recommendation and Guidelines on Establishing a Single Window to Enhance the Efficient Exchange of Information between Trade and Government: Recommendation No. 33. United Nations: 2005.

10. United Nations. ICT Solutions to Facilitate Trade at Border Crossings and Ports. United Nations Conference on Trade and Development, Geneva: 16-18 October, 2006.

11. European Commission, Taxation and Customs Union. Supply Chain Security: Update of the Community Customs Code. January 2007:1.

12. Olsavsky, Greg. Departmental Advisory Committee on Commercial Operations of the Bureau of Customs and Border Protection. Washington, DC: May 9, 2008.

13. For an expanded treatment, see Giermanski, James. Tapping the Potential of Smart. Supply Chain Management. January/February 2008:38-44.

14. In November 2007, Powers International, LLC and Zapata Engineering, Inc. in cooperation with the Gastonia, NC, Police Bomb Squad conducted a demonstration of a controlled detonation of explosives in a 20-foot shipping container. RFID tags actually used today on containers at US ports were used as IEDs when interrogated by RFID transceivers also used in US ports. The blast demonstration was validated as true and accurate by representatives of the Office of the Secretary of Defense, Supply Chain Integration, who were sent to the demonstration as witnesses and examiners. Copies of the Powers International report sent to the House Homeland Security Committee are available at Powers International, LLC, Belmont, North Carolina.

15. International Trade Data System (ITDS).

ITDS e-Newsletter. Winter 2006. http:// www.itds.gov/linkhandler/itds/news/e_ newsletters/ITDSe-Newsletter_winter06. ctt/ITDSe-Newsletter_winter06.pdf

We are proud to serve.

Whether we’re transporting vital equipment and commissary supplies or helping military families re-locate, we’re proud of the role we play in supporting America’s armed forces.

For more information, call our Customer Support Center at (800) 4-MATSON or visit matson.com.

The Salute Military Golf Association (SMGA)

by Karen Schmitt

Sean Lewis at Olney Golf Park (Jamie Squire, Getty Images)

Athletes from around the world gathered in Beijing last month to test their skills. Prior to the games, however, a swimmer and a sprinter— Natalie Du Toit and Oscar Pistorius, both from South Africa—captured media attention around the world as the first amputees ever to qualify for this competition. Closer to home, US service men and women who have lost limbs on the frontline in Iraq and Afghanistan demonstrate the same spirit of sportsmanship and determination on the golf course instead of a pool or a race track. They may not claim international newspaper headlines, yet they too have achieved victory over injuries. They are strong, brave, and focused.

As of February 2008, the DOD reports 1031 amputees, of whom 730 have suffered major limb amputations. Of the 1031 total, 77.5% sustained their injury while in the Army, 18.8% sustained their injury while in the Marines, 2.3% sustained their injury while in the Navy, and 1.4% sustained their injury while in the Air Force.

[US Military Casualty Statistics: Operation Iraqi Freedom and Operation Enduring Freedom, March 18, 2008]. Prior to OIF/ 24 |

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OEF, the most common approach to therapy for combat-wounded service members was limited to the confines of a hospital or clinic. Now, military patients participate in various outings that contribute to both their physical and mental well being.

As remarkable as it may seem, the road to recovery can begin on a golf course.

The Salute Military Golf Association, a 501(c)(3) non-profit corporation, provides rehabilitative golf experiences for combat-

SEPTEMBER 2008—Forum Issue

Contributions received by SMGA are applied in full to help injured soldiers—customized golf equipment, greens fees, instruction, club costs, and travel expenses—to join golf outings and competitions. Lessons are held in 8-week sessions during the spring and the fall; soldiers are welcome to practice according to a schedule that they choose. Administration of SMGA is managed by a handful of volunteers.

“We are proud to support the SMGA. These brave men and women deserve so much for what they’ve given to our country. I and everyone at FedEx Custom Critical thank them for their service and the personal sacrifices they’ve made to protect our freedom.” Virginia C. Albanese. President and CEO, FedEx Custom Critical.

wounded veterans in an effort to improve their quality of life and morale. The organization came about in 2005 after Jim Estes, Golf Pro, Instructor, and SMGA President, saw benefits first hand when a group of patients from Walter Reed Army Medical Center joined him on the greens at Olney Golf Park, MD. Since its founding, more than 400 injured soldiers and marines have benefited. Not all have been amputees.

Some have suffered from traumatic head injury caused by roadside explosions.

SMGA is not a one-time stand. Soldiers receive one-on-one instruction through 8-week sessions in the spring and fall, customized golf equipment tailored to their needs, and invitations to compete on local and national levels that include travel and accommodations. Jamie Winslow, SMGA Chairman, explains, “A knowledge of golf is not a pre-requisite. The desire to get out, or meet others, or test themselves physically is all that is necessary. Many of the injured are young soldiers who played football or basketball in high school. Golf requires mental discipline and balance, and because of their affinity to sports and their military training, they are determined in spite of physical obstacles.”

SMGA initiatives have proven that golf is therapeutic, and the way SMGA is designed, the soldiers can concentrate on learning the game at their own pace . . .

MEASURING SUCCESS: Keeping Faith with Wounded Warriors and their Families Sept. 17, Hyatt Regency on Capitol Hill, Washington, DC SPONSORS • US Naval Institute (www.usni.org) • Military Officers Association of America (MOAA) Addressing one of the most important issues that will continue to challenge us for the unforeseeable future.

KEYNOTE SPEAKERS The Honorable Carl Levin Chairman of the Senate Committee on Armed Services The Honorable James B. Peake (Ret.), MD Secretary of Veterans Affairs The Honorable Gordon England Deputy Secretary of Defense

Jim Estes, President, SMGA (Jamie Squire, Getty Images)

SMGA Spring Golf Clinic at Olney Golf Park (Ellen Kay, SMGA)

Dennis Walburn at Olney Golf Park (Jamie Squire, Getty Images)

“Every American should be concerned with the care and recovery of wounded warriors and their families,” says Major General Tom Wilkerson, USMC (Ret.), USNI’s chief executive officer.

“They have written us blank checks to defend our freedom and our way of life. In exchange, we have made a sacred promise to serve them as faithfully as they have served us when they are harmed or suffering.

The purpose of this conference is to bring the public up to date on the status of our promise.”

on their own time . . . as they choose . . . and with complete attention to their individual needs and abilities. This is what sets SMGA apart from other programs.

Military members are pros when it comes to challenge. According to Barbara Romberg, a clinical psychologist in the Washington area who works extensively with wounded veterans, “Anything that can motivate people to work again at developing skills is a potent rehabilitative tool. It doesn’t have to be golf—for some people it can be something computer-based or something like painting—but golf has proven to be a very effective medium [Wall Street Journal. October 20, 2007].”

spending time with our nation’s heroes was the highlight of the day,” said Darin Ayers, Manager DOD/Government Programs, FedEx Custom Critical. DTJ

“I had the privilege of joining the 2008 SMGA Charity Golf Classic, a truly first-class event attended by more than 120 players and 19 SMGA veterans. The golf was great, but

To learn more about SMGA and how you can help, visit: www.golfsalute.org

Active-duty military may attend without charge

www.ndtahq.com | 25

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as told to the Defense Transportation Journal

It was just another day and just another train robbery for the Hole in the Wall Gang. As the baggage car goes up in pieces, Sundance says to Butch, “Think ‘ya might have used a little too much dynamite there, Butch?”

They rush to gather the bills that survived the blast . . . but wait. Another train is coming. It’s not supposed to be there! There just ain’t no reason for that train! In a flash, a small group of riders head for the wreck and the Hole in the Wall Gang. They mount up and the chase begins. Later, in a classic movie moment, Butch and the Sundance Kid look over the cliff at the horsemen who pursue them relentlessly and mutter, “Who are those guys?” Their number is small but they’re smart as they carve out a trail through streams and sage brush to track their prey. In the end, Butch Cassidy and the Sundance Kid never know for sure who they are.

T

he Universal Truckload Services, Inc. (UTSI – NASDAQ:UACL) team is used to that question. Since their initial public offering in February 2005, the company has evolved from being completely unknown to being mostly unknown. (In 2007, it was ranked as the 40th largest trucking company in the US according to Transport Topics; 7/21/2008.)

Recognition is critical in today’s competitive industry of transportation and logistics, and UTSI is making sure that more folks know who they are and what they have to offer. Most importantly, the company offers a proven track record, broad experience, and plenty of options to meet customer requests, such as standard flatbeds, step decks, RGNs, and a host of customized configurations. UTSI operates five motor carriers, an intermodal drayage and storage business, and an intermodal marketing company. Segments of their business dates back to the 1930s.

Their business units are managed separately for very solid reasons. As a corporation, UTSI holds lease agreements with nearly 4000 owner operators and more than 400 core agents. Each maintains a specific market place identity and brings a focused strength

>> WHO ARE THOSE GUYS AT UTSI? Don Cochran, president and CEO of Universal Truckload Services Inc., got into trucking in 1978.

“In the days before deregulation, we typed out vouchers to get our GBL’s recorded and processed for payment. That shows my age.

I did a little of everything over the years, and I’m better for it!” A common thread underpins Cochran’s experiences—owner operators, the essential factor in an asset-light 3PL business. In 1995, Cochran was called to Central Transport, springboard company to UTSI, to help on the many projects in place that depended upon agent and owner-operator businesses. Later, he teamed up with “the other Guy,” Bob Sigler, current UTSI CFO and one of the few CFOs who actually worked in a terminal. Together, they streamlined and reorganized a number of separate entities into a common structure with clear direction. Since the formation of Universal Truckload Services in 2001 and its IPO in early 2005, UTSI has implemented a strategy that has made the industry sit up and take notice.

>> MEET THE REST OF “THE GANG” A President runs day-to-day operations at each of the subsidiary carriers: Mark Limback (Universal Am-Can); Tim Phillips (Mason Dixon); Joe Rubino (Mason Dixon Intermodal); Michael Whitaker (Louisiana Transportation); Jim McManus (Economy Transport & Great American Lines); Mike Bailey (CrossRoad Carriers).

The team works in different markets with a common operating platform to maximize control and opportunities. Agents and owner operators both have access to the key decision maker for the business. The combined resources of UTSI share many common purposes and goals.

Together, the group holds its service to the DOD as a key goal for all its businesses. Collectively, DOD is their second largest customer in a very diverse group of customers.

to its customers. The collective breakdown amounts to 63% flatbed, 21% dry van, and 16% intermodal. With more than 2200 owner operators working in the flatbed and specialized hauling operations, UTSI is one of the country’s largest flatbed carriers.

The DOD segment has been top priority since the mid-1990’s and is handled by UTSI subsidiaries: Louisiana Transportation, Mason Dixon, Universal Am-Ca, and Economy Transport, where agents

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Larry and Alice Martin have invested heavily in safe haven properties. They also own several trucks and engage a number of owner operators to serve many locations around the country. Economy Transport has operated 24/7 continuously for more than 15 years. Service is key!

In an effort to boost its recruitment program in the mid-1990s, UTSI began to supply trailers to defray owner-operator costs. This also increased their capacity for trained owner operators.

SEPTEMBER 2008—Forum Issue

The perception of owner operators has fluctuated over the years, but times have changed and now they are the most important resource in the transportation industry. Attracting skilled individuals and offering helpful resources has yielded greater productivity and safety for UTSI. Training and retention are good. The American Trucking Association reports that truckload turnover rates usually run in the 120% plus range; at UTSI, that figure has never exceeded 100% and some carriers rate below 70%.

CrossRoad Carriers, its Brokerage and Intermodal Marketing subsidiary that was acquired in 2004, brings trusted experience in the LTL and truckload markets. CrossRoads leads the group in the number of shipments handled and the number of bases served.

As the word spreads, more and more people will become familiar with UTSI. They’ve come a long way thanks to organizational principals, business skills, and loyal team members—especially the agents and owner operators who are able to meet customer needs, round the clock. DTJ

WE FOCUS 100% ON THEIR SUPPLIES, SO THEY CAN FOCUS 100% ON THEIR MISSION.

Warfighters don’t have wants. They have needs. Life and death needs. They need a global supply chain that goes wherever they do. They need real-time, full life cycle information on supplies in transit. And they need the confidence to know they’ll never have to think about it. At Savi, a Lockheed Martin Company, that’s what we’re delivering through Total Asset Management.

Bringing together networked solutions, powered by Automatic Identification Technologies that improve decision-making, situational awareness, and operational efficiency worldwide.

For more information, visit www.savi.com Image courtesy of defenseimagery.mil. No endorsement expressed or implied.

FROM THE NDTA BOARD OF DIRECTORS, Raymond P. Ebeling, Chairman & CEO, NDTA Board of Directors

T

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al Ente r ise

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his year’s theme, “The Global Enterprise—Transformation and Competition,” is well chosen and very timely. Since we last met in Charleston, we have experienced an unprecedented explosion in fuel costs, a matter of extreme urgency for anyone in any transportation business and proof positive that Global events, economics, and politics will determine our future as much or more than any of our more traditional business concerns.

Our businesses are increasingly global—and, therefore, more competitive and productive as well, as this is necessary to survive in the hyper-competitive global economy.

The DOD benefits quite directly from this, as it obtains access to sophisticated global commercial networks

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and supply chains, without making any direct investment.

But, the DOD has needs that go beyond the competitiveness and cost effectiveness of the global commercial networks. DOD must also have security, reliability, and absolute dependability, especially in wartime. Commercial supply chains are focused on just in time delivery at lowest possible cost.

Military supply chains need the same, but additionally require absolute reliability and dependability.

For the industries and companies that provide transportation and supply chain services to DOD, this means that as we “go global,” we must also stay committed as individual and corporate members of NDTA to support our country and our military and provide absolutely reliable and dependable service, especially in war zones.

Our challenge is to bring to bear all the commercial benefits of globalism, while also maintaining and providing the core strengths, reliability,

and dependability of our foundations and commitment.

Reno/Tahoe has a well deserved reputation as an entertainment mecca. But we have serious business to discuss here. Let’s be sure we do that, while also taking advantage of the opportunities for networking, after hours socializing, and the chance to have some fun.

Please also plan to join us in celebrating together the many fine individuals, organizations, and military units that have demonstrated special achievements in their field. Plan also to attend the Expo to discover additional ways that we can work together more efficiently and effectively.

I extend a sincere Thank You to all attendees for your support, to our sponsors and exhibitors for your contributions, and to our Forum Team for orchestrating the 62nd annual Forum and Expo.

Regards, Ray

FORUM CO-CHAIRS

THE FORUM TEAM NDTA HEADQUARTERS Kenneth Wykle NDTA President Mark Victorson Programs

Rod A. Mallette

BG Brian Layer, USA

Global Account Manager for Distribution Agility Defense & Government Services

Commander, US Army Transportation Center & School

Thank you for joining us!

Innovation, education, and continued mutual reliance will help see us through . . .

A

Defense Transportation Journal

Exhibits Manager

Patty Casidy Registration

Carl Wlotzko DMC, Food & Beverage, Signage

Karen Schmitt Press Room, Forum Publications

Leah Ashe Database

t the 2008 NDTA Forum in Reno/Tahoe, a new award category has been added to the list—the “Innovative Logistics Award.” It specifically references the creative approach in response to the wider set of logistical requirements that now guides us. The extended recognition spotlights additional talents and achievements among our membership. To all the 2008 NDTA Award Recipients, we offer sincere congratulations.

Knowledge of new industry processes and products is essential to remain competitive. Following the model set at last year’s Forum, and recently repeated at regional conferences in Pennsylvania and Illinois, NDTA will offer focused workshops in Reno/Tahoe along with a full line-

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Denny Edwards

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up of professional sessions. Thank you to all participants who voluntarily share their expertise for the benefit of our membership.

We are great because of our sum total. Together, we pledge ourselves to support our country and our military. Our collaborative efforts also serve to keep us organizationally fit.

Lend your voice to NDTA Committee and Chapter meetings while you are here and remember to take advantage of this time to connect with friends and colleagues.

More than ever, we need to be resourceful AND flexible to meet mission demands

SEPTEMBER 2008—Forum Issue

Alisa Graham Exhibit and Hotel POC

Sharon Lo Administration – Reno/Tahoe

Angie Payne Administration – Alexandria

VOLUNTEERS Mike Babiak Terri Dalton Pat DeMichele Karen Edwards Diana Escobar Lisa Fasching Mickey Frank Kent Gourdin Ben and Marlene Jetton Amanda Meyer Colt Meyer LCDR Miguel Lake Mike McVeigh Lynn Nelson Gina Ortiz Bob Reilly Yolanda Rios Steve and Marie Rohrbough “Shorty” Salmans Betty Tedder Craig and Cindy Thurgood

EXHIBITORS AND SPONSORS

As of August 28, 2008. Please see additional listings in the Forum Exhibitors and Sponsors Directory

EXHIBITORS ABF Freight System, INC. Access America Transport Ace Doran Hauling & Rigging Advantage Rent-A-Car Agility Defense & Government Services APL Limited ARC ATS Specialized, Inc. Avis Budget Group BAX Global, Inc. Bennett Motor Express Boyle Transportation Budget Truck Rental, LLC Calhoon MEBA Engineering School Cavalier Logistics CEVA Logistics Chapman Freeborn Airchartering, Inc. Comtech Mobile Datacom Corporation CorTrans Logistics Crossroad Carriers, Inc Crowley Maritime Defense Travel Management Office

Dept. of Transportation, Maritime Administration DHL DLA/Defense Distribution Center Dollar Thrifty Automotive Group Enterprise Rent-A-Car Evergreen International Airlines, Inc. FEDEX FedEx Custom Critical Fine Hospitality FlightWorks General Dynamics Information Technology General Freight Services, Inc. GeoDecisions Greatwide Dallas Mavis Gwangyang FEZ Authority The Hertz Corp.

Holiday Inn – BWI Airport Hotel & Conference Center Horizon Lines, Inc. IBM InterContinental Hotels Group (IHG) ITLT Solutions

Joint Program Management Office (JPMO) Kalitta Charters, LLC Landstar System LimitLess International, Inc. LMI Government Consulting Lockheed Martin Maersk Line, Limited Marriott International Matson Integrated Logistics Mayflower Transit McCollister’s Transportation Group Menlo Worldwide Logistics Mercer Transportation Co., Inc. Military Sealift Command National Air Cargo National Car Rental/ Alamo Rent-A-Car NYK Logistics (Americas), Inc. Old Dominion Freight Line Omega World Travel Pilot Freight Services PM J-AIT Port of Port Arthur Ports America Group

Powersource Transportation Inc. PowerTrack/U.S. Bank Priority Solutions International R&R Trucking Ridgeway International USA, Inc. RJR – Vet Com Savi, A Lockheed Martin Company SDDC (Military Surface Deploy. & Distr. Command) Sealed Air Corporation Team Worldwide Textainer The Pasha Group Total Quality Logistics Totem Ocean Trailer Express, Inc. United Seamen’s Service United Van Lines UPS USTRANSCOM UTi, Worldwide Group, Defense USA XIO Strategies YRC Worldwide

SPONSORS COMPANY EVENT/ITEM Access America Transport Agility Defense & Government Services

American Roll-On Roll-Off Carrier APL Limited

Avis Budget Group Baggett Transportation Company BAX Global Team Schenker

Best Western International BLG Logistics Automobile The Boeing Company Boyle Transportation CEVA Logistics

Choice Hotels International CorTrans Logistics DHL

Extended Stay Properties FedEx Green Valley Transportation The Hertz Corp.

Hilton Hotels The Howland Group, Inc./DRMEC InterContinental Hotel Group (IHG)

Silver Sponsor Opening Ceremony/ Chapter Awards Program Name Badge Holders Easel Covers & Expo Hall Signs Forum Schedule Signs Slot Machine Ice Cream Bars Gold Sponsor NDTA HQ Freight Shipments Slot Machine Shoe Shine Stand Prize Donor A-35 Activities Forum Welcome Gram Gold Sponsor Conference Room Note Tablets Exhibitor and Sponsor Directory Co-Sponsorship Networking Coffee Bar Slot Machine Registration Pavilion Name Badge Lanyards Slot Machine Prize Donor Monday Evening Scholarship Event Golf Souvenir Photos Official Forum Car Rental Company Official Program/ Forum Registration Book Forum Newspaper Prize Donor Forum Support Chairmans Awards Dinner Host

COMPANY EVENT/ITEM John Ascuaga’s Nugget Casino Resort Landstar System Lockheed Martin Maersk Line, Limited

McCollister’s Transportation

National Air Cargo

National Car Rental/Alamo Rent-A-Car

Northwest Airlines

Omega World Travel

Panther Expedited Services

Pilot Freight Services Port of Port Arthur

Ports America Group R&R Trucking Science Applications International Corporation (SAIC) Southwest Airlines Company

Transportation Institute TTX Company UPS YRCW

Official Forum Hotel Tote Bags Platinum Sponsor Hotel Room Keys Grand Opening of Exhibits (Period I) Super Sponsor Forum Support Expo Hall Signs Platinum Sponsor Pocket Schedule Slot Machine Exhibitor and Sponsor Directory Co-Sponsorship Golf Tournament Scholarship Fund Networking Coffee Bar Co-Sponsorship Grand Prize Donor Slot Machine Forum Support Expo Hall Signs Name Badge/Lead Retrieval Card Slot Machine Expo Hall Signs Two Morning Refreshment Breaks Rest and Relaxation Lounge Platinum Sponsor Forum Wrap-Up Video Grand Prize Donor Military Units Awards Ceremony Forum Support Express Shipping Sunday Evening Scholarship Dinner/Event

www.ndtahq.com | 33

PROFESSIONAL SESSIONS MONDAY, SEPTEMBER 22 • Infrastructure – Public/Private Partnerships Mr. Andrew Clarke, CEO, Panther Expedited Services, Inc. • The Pacific Rim – Change & Challenges CAPT Janice Wynn, USN, Chief of Staff, US Naval Forces, Marianas

• Challenges of Travel in Today’s Economy Dr. G.R. Mobaraki, Director, Gov’t. Sales, The Hertz Corporation (AM Session Slot) • Human Capital Development Mr. James Hall, Ass’t. Deputy Under Secretary of Defense for Logistics Plans and Studies, OSD • Global Distribution: Successful Support of our Warfighters Mr. Rob Fitzgerald, Exec. Director Enterprise Solutions, Defense Systems Group, ManTech • Champions – on the Ground in Iraq & Afghanistan Maj Jeffrey Babinski, USAF, Cmdr., Det 2, 730 AMS (AM Session Slot)

• Leading the Way (Mentor Program) Mr. Larry Larkin, Director, Defense Supply

LTC William Carberry, USA Dire. DPPS, J-6, TRANSCOM

TUESDAY, SEPTEMBER 23 • Army Retrograde Operations BG Mark Scheid, USA (Ret.), IBM • DTCI – Today & Tomorrow Col Mike Miller, USAF, Director, DTCI PMO, USTRANSCOM • Fusion Center & Best Value Solutions Ms. Jill S. Kale, VP, Enterprise Applications and Systems Integration, Defense Group, Northrop Grumman Corp.

• OEF/OIF Distribution Operations RADM Mark Harnitchek, J5/4 Director, Strategy, Policy, Programs and Logistics, USTRANSCOM

• DOD AIT/RFID Initiatives Mr. David Blackford, Senior Joint Transportation Staff Officer, J5/4-I, USTRANSCOM

Infrastructure – Public/Private Partnerships Mr. Andrew Clarke, CEO, Panther Express – Panther Expedited Services, Inc. A robust transportation infrastructure is essential to a strong economy. The debate in Washington is about how to fund the current infrastructure and provide for expansion. Should the gas tax be increased to add money to the highway trust fund

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Mr. James Hall, Asst. Deputy Under Secretary of Defense for Logistics Plans and Studies, OSD Logistics professionals deliver agile, timely, precise, and cost-effective support to Soldiers, Sailors, Airmen, and Marines, ensuring readiness and sustainability across the broad spectrum of military operations. The logistics workforce must align its human capital strategies and programs with transformed war fighting, modernized weapons systems, enterprise management systems, and executive-level strategic goals. This session will: • Review TRANSCOM efforts aligned with the Joint Deployment and Distribution Enterprise; • Provide highlights of the DOD Human Capital Strategy for Logisticians; • Describe Leadership Development at FedEx; and • Offer perspectives from senior academic and consulting view points.

CAPT Janice Wynn, USN, Chief of Staff, US Naval Forces, Marianas

• Defense Personal Property

Defense Transportation Journal

Human Capital Development

The Pacific Rim – Change and Challenges

Chain Management Solutions, Northrop Grumman Corp. (PM Session Slot)

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or are public private partnerships (tolls and user fees) the solution? Explore investment opportunities. Find out how infrastructure decisions may impact your business and your personal travel experiences. Join this panel to hear their thoughts and add your voice to the debate.

Topics and Presenters are subject to schedule change

community. Expectations for session participants will be outlined, followed by one-on-one discussion time between Mentors and Protégés. Protégés have the opportunity to share career interests; Mentors will be able to provide valuable insight.

The session is developed primarily for A-35 members, but is open to members at any stage of their career. Pre-registration is requested.

Global Distribution: Successful Support of our Warfighters Mr. Rob Fitzgerald, Exec. Dir., Enterprise Solutions, Defense Systems Group, ManTech The distribution problems experienced during OIF and OEF reveal how important effective supply chain and distribution management are to success in modern warfare. Coordinating the physical movement and storage of DOD supplies on a global scale is incredibly complex. However, capturing the information pertaining to this movement and storage, integrating it within automated information systems, and ensuring that it is accessible throughout the global supply chain via secure networks is far more complicated. This requires the synchronization of technology strategies with business and mission objectives in 5 key areas (business process agility; data management; analytic and performance management; collaboration; and sensory networks). The panel will provide insight into joint capabilities-based distribution and Joint Force sustainment challenges and issues.

The Pacific Rim is changing. The US Military is repositioning forces in South Korea, moving forces from Okinawa, and increasing the forces on Guam among other modifications. These moves require adjustment in training locations, infrastructure, and distribution networks. Simultaneously, commercial transportation infrastructure is expanding. In Korea, there are new ocean ports, a high speed rail line, and a new international airport in Busan. In Japan, a new ocean terminal is planned for Yokohama. In China, multiple new ports and terminals are under construction. Guam must enhance its infrastructure to support and accommodate the re-stationing of US Forces, and sourcing for commercial items is starting to shift from China to India and Southeast Asia (SEA). Discover what lies on the horizon and how these changes may impact your supply chains and your business opportunities in the region.

The Challenges of Travel in Today’s Economy

Champions – on the Ground in Iraq and Afghanistan

Transformation and Families First: The DOD is in the process of implementing the Families First program for Permanent Change of Station (PSC) moves. To execute new policies, including Full Replacement Value, the DOD is developing a new web-based program called the Defense Personal Property System (DPS). Join this session for a status briefing on the system and its planned deployment to the DOD and the Household Goods shipping communities.

Maj Jeffrey Babinski, USAF, Cmdr., Det 2, 730 AMS What’s really happening on the ground in the Theater of Operations at the tactical level? In this session, young leaders, who make it happen every day, share their stories and lessons learned. See the battlefield through their eyes and listen to what they have to say about their missions in Iraq and Afghanistan.

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

This session begins with the basics—launching a successful Mentoring Program in your chapter or

SEPTEMBER 2008—Forum Issue

Dr. G.R. Mobaraki, Dir. of Government Sales, The Hertz Company Airline capacity has been cut back, while ticket prices go up and extra charges are levied. Rental car rates are increasing, and hotel programs for travelers have been expanded. Meanwhile, the role of the travel agent is diminished. The Defense Travel Management Office (DTMO) has emerged as the DOD “travel czar,” and the GSA City Pairs contract provides air transportation pricing. Confused?

Concerned? Catch up on everything that impacts government and industry travel in this session.

Defense Personal Property System LTC William Carberry, USA, Dir., Defense Personal Property System (DPS), J-6 USTRANSCOM

Army Retrograde Operations BG Mark Scheid, USA (Ret.), IBM This session will discuss redeployment operations and the challenges of closing down entire base camps and bringing a Joint force back from operations in Iraq and Afghanistan. Discussions will

EVENTS SCHEDULE revolve around Strategic Army plans, challenges, and reset operations; tactical plans and challenges facing the soldiers on the ground in Iraq and Afghanistan as they redeploy themselves and their equipment; and commercial partnerships and their challenges ensuring smooth end to end operations.

A panel of highly skilled senior leaders from military and industry will participate in the discussion.

Fusion Center & Best Value Solutions Ms. Jill S. Kale, VP, Enterprise Applications and Systems Integration, Defense Group, Northrop Grumman Corporation Learn what Services and Defense agencies consider as they decide how to move freight and troops. Requirements received by fusion cells are evaluated against other priorities, analyzed for cost and best value, and then assigned a transportation mode and carrier. To better compete for this business, you’ll need to understand the process.

Your questions will be answered by experts from the USAF, RAND Corporation, DLA, and MSC.

OEF/OIF Distribution Operations RADM Mark Harnitchek, J5/4, Director, Strategy, Policy, Programs and Logistics, USTRANSCOM How can we make things easier on the supported combatant commander? This session examines how the combatant commander executes distribution operations for his/her AOR and how USTRANSCOM collaborates on enterprise level distribution decisions to streamline the supply chain and improve support provided to the customer.

DOD AIT/RFID Initiatives Mr. David Blackford, Sr. Joint Transportation Staff Officer, J5/4-I, USTRANSCOM USTRANSCOM has been designated as the DOD lead for AIT/RFID implementation. Get the latest “Intel” on the applications of these technologies within DOD—the initiatives, the expectations, and the goals. If you are involved with AIT/RFID in the DOD and want a “piece of the action” this is a “must attend” session.

DTCI – Today and Tomorrow Col Mike Miller, USAF, Dir., DTCI PMO, USTRANSCOM Today, DTCI is improving the effectiveness and efficiency of DOD CONUS freight distribution through a partnership with Menlo Worldwide Government Services, LLC. Applying best commercial practices is improving distribution performance, through better reliability and predictability, which supports the Under Secretary of Defense for Acquisition, Technology, and Logistics’ goal to integrate DOD logistics and to become more responsive to the warfighter. USTRANSCOM is working in partnership with DLA and the military Services to implement this important program. Tomorrow, DTCI will continue to squeeze out inefficiencies and improve DOD’s support to the warfighter.

Panel members include Colonel Miller, a senior Menlo Program Manager, a Distribution Depot Commander, and carrier representatives.

SUNDAY, SEPTEMBER 21 •

• •

NDTA Golf Tournament The Resort at Red Hawk Host: Northwest Airlines APICS Workshops NDTA Scholarship Dinner National Auto Museum Trusted Expertise – Then & Now Harrah Collection Host: YRC Worldwide

MONDAY, SEPTEMBER 22

• Opening Ceremony Keynote: Mr. Doug Tilden, Chairman, Ports America Group • Military Unit Awards RADM Robert Reilly, Jr., USN, Commander, MSC • Grand Opening Exhibit Hall Host: Maersk Line Limited • Breakout Sessions (2-Separate Periods) • NDTA Scholarship Event “Backstage Pass” Host: FedEx

MEETINGS SATURDAY, SEPTEMBER 20

• CORP Meeting (Working Lunch) • Surface Committee Meeting • Chapter Meeting

SUNDAY, SEPTEMBER 21

• Forum Site Selection Meeting

MONDAY, SEPTEMBER 22

• A-35 “Breakfast of Champions” Meeting • PTSC Committee

WEDNESDAY, SEPTEMBER 23

• Distribution Committee Meeting • ITO Meeting • JOCG Transportation Subgroup Mtg • Annual Membership Assembly

TUESDAY, SEPTEMBER 23

• Keynote: Mr. Timothy Carroll, VP, IBM Global Supply Chain Operations • Roundtable: LTG Robert Dail, USA, Director, DLA • Keynote: Ambassador James Pardew, Deputy Assistant, Secretary General for Operations, NATO • Breakout Sessions (2 Separate Periods) • Revisit Exhibit Hall • Chairman’s Awards Dinner Reception • Chairman’s Awards Dinner Host: IHG InterContinental Hotels Group • Hospitality Time

WEDNESDAY, SEPTEMBER 23

• Roundtable: LTG Kenneth Wykle, USA (Ret.), President, NDTA • Keynote: Commander, USTRANSCOM • NDTA Board Meeting • International Awards Luncheon • Distribution Committee Meeting • JOCG Transportation Subgroup Meeting • APICS Workshops

GUEST/SPOUSE OPTIONS MONDAY, SEPTEMBER 22

Carson City and Virginia City • Fourth Ward School • Historic Virginia-Truckee Railroad • Lunch at Delta Restaurant

TUESDAY, SEPTEMBER 23

DIY Tours #1 Reno Sightseeing • Nevada Museum of Art and other attractions • Lunch at Wild River Grille • Lavender Ridge Gift & Garden Shop #2 Lake Tahoe Lunch Cruise • Lunch Cruise on Emerald Bay • Heavenly Village Shopping Area #3 Art Touring – Adventure in Art • Artist/Studio Visits

CHECK POCKET SCHEDULE FOR TIMES AND LOCATIONS PLEASE NOTE: SCHEDULE IS SUBJECT TO CHANGE www.ndtahq.com | 35

PROFESSIONAL DEVELOPMENT WORKSHOPS | Sunday, September 20 | 1:00-4:00 pm Wednesday, September 24 | 2:00-5:00 pm John Ascuaga’s Nugget Casino Resort Southern Pacific DEF Room Managing Risk in Joint Distribution We think of risk in many ways. Among the most common definitions in teaching transportation security classes is, “Risk is the accumulated trade off between the criticality of a disruption and its probability of occurrence.” If a disruption is insignificant, then it matters little, even if its occurrence is highly likely to occur. An example might be the seemingly daily rain showers in Florida every afternoon.

If a disruption would be significant but its likelihood of occurrence is impossible, such as a 15,000

Title

supplier selection is further complicated by acquisition and procurement laws and regulations.

The success of the modern enterprise, increasingly reliant on outside supply sources, may likely rest with choosing the right supplier. Supplier selection must focus on compatibility in operations between supplier and the enterprise, selection of the right metrics to measure the performance of a supplier, determination of best value (not just low price), and security in the chain of custody. Today, the issue of security compatibility is especially important. If you import products into the US and use the CTPAT program to reduce the chance of conveying terrorist materials, you really want to closely know your suppliers and what they insert into their packages. When shipping domestically, consider the responsibility of your supplier where

Function

Competency

“Managing Risk in Joint Distribution” (Instructor: Irv Varkonyi)

Joint Distribution and Deployment Leadership

Risk Management

• Information Sharing • Integration of Risk Control • Operational Modification Procedures • Risk Effectiveness Assessment

“Developing Your Supplier Selection Strategy” (Instructor: Joni White)

Supply

Supplier Selection and Negotiation

• Guidelines for Supplier Selection • Supplier Analysis & Sourcing Strategies • Supplier Resiliency • Supplier Capabilities

“Satisfying Your Customer’s Supply Requirements” (Instructor: Patrick Greer)

Planning

Distribution Requirements Planning

• Synchronizing Decisions in Your Supply Chain • Utilizing Demand Forecasts to Plan Inventories • Optimizing Placement Mix & Quantity of Goods Across the Supply Chain

TEU sized cargo vessel sinking in the Panama Canal, then there is no risk. (These mammoth ships are too big to go through the Panama Canal, at least until the canal is expanded).

Once the probability and criticality of a disruption is assessed, then operations professionals can develop appropriate risk mitigation strategies. DOD Joint Distribution has an almost infinite amount of potential risk, utilizing both criticality and probability. Under the JDDE, the DOD seeks to understand these components in managing risk: • • • •

Information sharing Integration of risk control procedures Operational modification procedures Risk effectiveness assessment

Developing Your Supplier Selection Strategy Selecting your supplier, just like risk management, has multiple perspectives. There is no one standard acceptable to all. For some, supplier selection is based on price. Low price is king. For others, supplier selection may rely on an endless series of metrics by which the total value of suppliers can be compared against each other. Within the DOD,

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Components

TSA will, over time, screen their every shipment of air cargo on passenger aircraft.

Under the JDDE, DOD seeks to understand these components when developing supplier selection strategies: • • • •

Guidelines for Supplier Selection Supplier analysis and sourcing strategies Supplier resiliency Supplier capabilities

Satisfying Your Customer’s Supply Requirements Customer results provide the best metrics to determine the performance of the enterprise.

Satisfying your customer’s supply requirements is evaluated by determining the skill of the enterprise to develop the best mix of price, quality, and delivery that optimizes value for the customer. Of course, this doesn’t mean that an enterprise will succeed if it were to satisfy customers’ demands for the lowest price, the highest quality, and the fastest delivery. If this were the metrics to evaluate success, all enterprises would go out of businesses. In other words, you can only have two out

SEPTEMBER 2008—Forum Issue

Presented by APICS Washington DC Chapter #127

LEARNING OBJECTIVES 1. Learn how Joint Defense Planning emphasizes joint logistics professional development.

2. Determine the foundation for the Joint Deployment and Distribution Enterprise.

3. Develop understanding of topics critical to both private and public sector stakeholders involvement in Joint Logistics.

4. Gain insight into the components of leadership for Joint Logistics.

of three! You can have cheap and fast, but you can’t have good!

Instead, there is a trade off of these items in a collaborative process between the enterprise and the customer. The optimum level of meeting customers’ supply requirements will simultaneously maximize customer satisfaction and profitability of the enterprise.

Under the JDDE, DOD seeks to understand these components when an enterprise is engaged in satisfying customer’s supply requirements: • Synchronizing decisions in your supply chain • Utilizing demand forecasts to plan inventories • Optimizing placement, mix, and quantity of goods across the supply chain

Mr. Patrick Greer recently retired after 30 years of developing and expanding the global supply chain for Anheuser-Busch, Inc. As Director of International Logistics, Mr. Greer worked on projects in more than 25 countries, developing and implementing supply chains. He is a founding steering committee member of the St. Louis University Consortium for Supply Chain Management Studies and is presently on the faculty of St. Louis University, teaching global supply chain management classes on strategy and system design.

Mr. Irvin Varkonyi, CSCP, has three decades of experience in air transportation and logistics and has addressed numerous conferences including the American Society for Industrial Security, Council of Supply Chain Management Professionals, and Eyefortransport Cargo Security. His articles have been published in Cargo Security International, Journal of Commerce, and the JJ Keller Homeland Security Newsletter. Mr. Varkonyi may be reached at ivarkonyi@scopedu.com.

Ms. Joni White, CFPIM, CIRM, CSCP, a full time APICS Instructor since 1998, has more than 25 years of planning, materials management, and manufacturing experience in custom lighting, value engineering, electronics, and remanufacturing. She teaches the entire suites for all four Fundamentals, CPIM, CIRM, and CSCP programs of APICS and is an author/presenter for the APICS Leadership Institute. Ms. White can be reached at jwhitewadc@aol.com.

NDTA NATIONAL DEFENSE LEADERSHIP AWARD

G

General Norton A. Schwartz, USAF Commander, USTRANSCOM

National Defense Leadership Award is awarded to a senior military leader, who has exercised outstanding and innovative leadership in the support of our Service Members and the defense of our Nation.

eneral Norton Schwartz, Commander, US Transportation Command (USTRANSCOM), is committed to providing outstanding transportation and logistics support to all the Geographic Combatant Commanders. He leads an organization with $10 billion in annual revenue, 100-plus ships, several hundred aircraft and ocean terminal operators, and manages programs providing access to the entire commercial transportation industry for additional capability. He is a strong supporter of the US Merchant Marine, promoting and championing those programs that ensure jobs for mariners, retention of a strong and viable US Flag fleet, the Maritime Security Program (MSP), and a policy that provides Defense cargo to commercial carriers in exchange for access to their capacity in times of national

need (the Voluntary Intermodal Sealift Agreement [VISA]). He is a champion for the CRAF program and works tirelessly to ensure that commercial airlift capability is available to meet DOD needs during any contingency. General Schwartz personally meets with the CEOs of the transportation and logistics industry to hear their concerns, share information, and maintain an open channel of communication on all logistics matters. He worked forcefully as the Distribution Process Owner for the Department of Defense, using the DPO authorities to transform DOD logistics and codify the DPO mission. He is a strong voice within the DOD and on Capitol Hill for our industry. General Schwartz is recognized for his leadership, integrity, character, and his contributions to the industry and to our Nation’s security.

NDTA NATIONAL TRANSPORTATION AWARD

J Mr. Joseph L. Carnes President and CEO, BAX Global, Inc.

The National Transportation Award is presented annually to a Senior Executive of the Transportation Industry, other than an employee, representative, or organization of the United States Government, who has made exemplary contributions to the transportation industry at large in support of national security.

oseph L. Carnes is the President and CEO of BAX Global Inc. Over the last eight years he and his team successfully in transformed BAX into one of the leading supply chain providers in the industry. Their success has been in the design and implementation of the global supply chains for many of the world’s most prominent companies in the Aerospace, High Tech, Pharmaceutical, and Retail industries. With the recent acquisition of BAX Global by Deutsche Bahn AG, he has been responsible for overseeing the integration of BAX Global and DB Schenker with a specific focus on customer integration and the further development of their global network capabilities. DB Schenker is a $17 billion global organization of nearly 58,000 employees

working in a network of more than 1500 offices in 150 countries. Joey started his career with the United States Customs Service in 1976 in Savannah, Georgia.

Over the last 32 years he has been in leading positions where he has spearheaded the changes necessary to respond to the ever-changing market conditions required to compete in a global economy. Prior to joining BAX, Joey was with the Fritz Companies, where he both witnessed and participated in the consolidation of the industry through the acquisition of more than 50 companies in less than three years that were needed to create the foundation necessary to manage a global supply chain. His contributions to the industry make him truly deserving of the NDTA National Transportation Award.

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NDTA DOD DISTINGUISHED SERVICE AWARD

L

LTG William E. Mortensen, USA Deputy Commanding General, US Army Materiel Command

The Department of Defense Distinguished Service Award is presented annually to a Senior Executive of the Department of Defense who has made outstanding contributions to NDTA programs and national security.

ieutenant General Mortensen was Deputy Commanding General, Army Materiel Command (AMC), during a period in which the US Army underwent unprecedented change while simultaneously fighting on multiple fronts. He was a crucial player in the massive logistical transformation and equally massive reset of the Force. He led the efforts for wide-ranging change in the Army’s logistical community and worked to ensure that the changes enhanced the Army’s operational posture, saved taxpayer dollars, and significantly lowered order-ship times. He positioned AMC to provide world-class service to the Army and DOD while driving change in the Command’s business enterprise by streamlining and integrating systems, which standardized practices and reduced

stovepipe structures. LTG Mortensen oversaw AMC’s vast industrial complex of depots, arsenals, and contract facilities, personally managing the intricate Force reset that is a major component of the Command’s mission. He led the transformation of installation Directors of Logistics into AMC assets, bringing to bear AMC’s vast resources in the posts, camps, and stations, where soldiers live and train.

This initiative ensures that soldiers have the best equipment they need in optimal working condition where they train and on the battlefield. LTG Mortensen’s decisions and actions will have a lasting and positive influence on the Army well into the future, which will contribute greatly to the Nation’s defense. For this, he is deserving of the NDTA DOD Distinguished Service Award.

NDTA GOVERNMENT DISTINGUISHED SERVICE AWARD

A

Mr. Jeffrey N. Shane Under Secretary of Transportation for Policy Department of Transportation The NDTA Distinguished Government Service Award is presented to a senior executive of a Government Agency other than the Department of Defense whose achievements reflect unusual and outstanding service to the Nation in the field of transportation and logistics in support of the goals and aims of NDTA.

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s Under Secretary of Transportation for Policy from 2003 to 2007, Jeff Shane supervised the Department of Transportation (DOT) policy staff and served as principal policy advisor to the Secretary of Transportation.

Mr. Shane led the Department’s efforts for modernizing and supporting the Nations Positioning Navigation and Timing (PNT) infrastructure, serving on the Joint Chiefs of Staff‘s Joint Resources Oversight Council for PNT requirements and sponsoring studies in support of the National Security Council’s Deputies Committee on PNT, thus ensuring that both the civil and military needs of the nation for this infrastructure were met. He worked to develop and coordinate the new National Security Presidential Directive-39, US Policy on Counterterrorism, and urged civil leaders to consider critical defense needs in the overall policy and planning

SEPTEMBER 2008—Forum Issue

work at DOT. In support of this goal, he strongly advocated the participation of DOT Senior Executive Service leaders as lecturers and professors in the Industrial College of the Armed Forces, and championed support of both the Coast Guard and Merchant Marine Academies. He invited Defense employees to participate in career opportunity seminars at the Department of Transportation and actively encouraged experienced and qualified veterans to consider transportation careers in DOT, while also encouraging DOT leaders to consider hiring qualified veterans.

A signal achievement was Mr. Shane’s work with US Transportation Command to reopen the skies and airports of Iraq and Afghanistan to US commercial air traffic. For these and many more accomplishments, Mr. Jeff Shane is receiving the NDTA Distinguished Government Service Award.

NDTA PRESIDENT’S AWARD

A

MG Charles Fletcher, USA Director of Operations and Plans (J-3) USTRANSCOM

The NDTA President’s Award recognizes an individual who has responded in a constructive manner to major issues confronting the transportation/distribution community and has developed plans or systems that have been effectively utilized in managing current challenges and significantly contributed to advancements in distribution.

s the Director of Operations and Plans (J-3), USTRANSCOM, MG Fletcher was the Command’s focal point for providing timely, coordinated global strategic transportation support to the Geographic Combatant Commanders. He made critical decisions on mode selections, ensuring the most effective and efficient use of the nation’s critical transportation assets. He oversaw the support and movement of forces for every major DOD priority, contingency, exercise, and humanitarian assistance operation. MG Fletcher’s leadership and direction resulted in moving more than 2.9 million passengers and 2.6 million tons of supplies and equipment in the largest force movement since WWII. He synchronized and executed the Secretary of Defense–directed delivery of 1500 Mine Resistant Anti-Personnel (MRAP)

vehicles to the Iraqi theater in 2007. MG Fletcher’s leadership was paramount in expanding and improving the ground lines of communication to both Iraq and Afghanistan. He set the stage for sweeping change across the entire Joint Deployment and Distribution Enterprise, as Combatant Commands and components implemented new collaborative planning functions. He championed the largest realignment of aerial port operations in Air Mobility Command history, reducing customer wait time and saving more than $43 million annually. The collective impact of his initiatives across the Distribution Enterprise has been remarkable, resulting in more than $216 million in Distribution Process Owner cost avoidance savings since May 2007. For these and many other accomplishments he is presented the NDTA President’s Award.

NDTA EDUCATOR DISTINGUISHED SERVICE AWARD

P Prof. Richard R. Young, PhD, FCILT School of Business Administration Capital College Pennsylvania State University

rofessor Young is presented the prestigious NDTA Educator Distinguished Service Award in recognition of his distinguished service and commitment to NDTA, not only at the strategic level, but also as one of the core group of leaders who initiated and continues to execute the revitalization of NDTA’s Central Pennsylvania Chapter. As a teacher, author, guest speaker, panelist, and moderator, Rich has been nothing short of a Transportation-Distribution-SupplyChain phenomenon in 2007, engaging at the strategic, operational, and tactical levels. Rich serves as the Central Pennsylvania Chapter’s Chairman for the Education and Scholarship Committee, and he has been one of our most active board

members. This year Rich has helped execute the chapter’s strategic plan and has planned and executed numerous chapter programs including a joint Penn State/ Central Pennsylvania NDTA Breakfast Roundtable and an Emergency Preparedness luncheon presentation. Rich’s steady counsel has been crucial to the success of NDTA’s Central Pennsylvania Chapter.

In his long and distinguished career, both in industry and as an educator, and specifically over the past year as an impact player for NDTA, Professor Young epitomizes the government/industry partnership and embodies the NDTA’s mission, vision, values, and guiding principles, and is truly deserving of recognition through this award.

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NDTA PRESIDENT’S SPECIAL ACHIEVEMENT AWARD NDTA has a number of internal awards that recognize individual members who have excelled in fostering the goals and aims of NDTA. These awards include NDTA President’s Special Achievement Award; International Junior Executive Leadership Award; NDTA Educator Distinguished Service Award; and NDTA Corporate Distinguished Service Award.

Ms. Carolyn L. Salmans Central Pennsylvania Chapter

Mr. Wesley (“Shorty”) E. Salmans Central Pennsylvania Chapter

Carolyn and Shorty are members of the core group of leaders who maintained the viability and continued growth of NDTA’s Central Pennsylvania Chapter. As Chair of the Membership and Welcoming Committee, Carolyn grew the membership by an amazing 49% during the chapter’s first year of revitalization and another 25% this year. Shorty, as Fundraising Chairman, has grown the Scholarship Fund in a comparable fashion and coordinated with Wreaths Across America to lay 100 wreaths at Fort Indian Town Gap National Cemetery, an initiative that will have NDTAwide influence as other chapters join the program to honor our fallen heroes and educate our young people concerning their sacrifices. Both Carolyn and Shorty drew on their experience as volunteers supporting the NDTA National Forum to play key roles in planning and successfully executing the 2008 Regional Forum in Hershey, PA, another initiative that will have NDTA-wide impact. Carolyn and Shorty served the National Forums faithfully and effectively for many years, and their contributions at both chapter and national level are recognized through the President’s Special Achievement Award.

Mr. Fred Stribling Charleston Chapter

As Chapter President for the last three years, Fred helped the Charleston Chapter exceed all expectations in achieving the goals of the NDTA, and by hosting the 2007 Forum under his leadership, the chapter had NDTA-wide impact. Through that Forum and his outstanding professional development program of speakers and field trips, he helped his members, Forum guests, and the local community better understand the vital role that transportation plays in the War on Terror and the economy of the city and Nation. His recruiting and retention programs maintained the chapter at Category II status despite high military and corporate optempo. Thanks to his fundraising events and wise management of funds, he leaves his position with the chapter in the best financial position it has ever enjoyed. He grew the chapter’s scholarship program since the first scholarship for $500 was awarded, and this year the chapter awarded a $2000 scholarship. He focused on disaster preparedness and encouraged members to work in key planning roles on disaster preparedness and emergency response exercises at Charleston Air Force Base and the Naval Weapon Station. Fred is richly deserving of the NDTA President’s Special Achievement Award.

NDTA CORPORATE DISTINGUISHED SERVICE AWARDS Agility Defense and Government Services APL Limited Bax Global – Schenker Logistics Bennett Motor Express, LLC Boyle Transportation

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CEVA Logistics CorTrans Logistics, LLC Delaware River Maritime Enterprise Council (DRMEC) DHL FedEx Corporation

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The Hertz Corporation The Howland Group InterContinental Hotels Group Landstar System, Inc. Maersk Line, Limited Northwest Airlines Inc.

Panther Expedited Services, Inc. R&R Trucking, Inc. Transportation Institute UPS XIO Strategies YRC Worldwide

NDTA JUNIOR EXECUTIVE LEADERSHIP AWARDS

CIVILIAN

MILITARY

Mr. Anthony Ibarra

Master Sergeant Jason A. Eighmey USAF

Washington, DC Chapter

Scott-St. Louis Chapter

A

nthony Ibarra has been a dedicated A-35 member since joining the chapter three years ago. As an Account Executive for Marriott ExecuStay, Anthony is focused on DOD Temporary Housing efforts at the local and national levels. He has developed ExecuStay’s strategic plan to house and improve the quality of life for traveling DOD personnel. Previously, Anthony was in Property Management, where he managed and helped house the Joint Air Defense Operation Center’s Shooter Battalion (198 soldiers on 10-month rotations). Anthony consistently takes on chapter needs in sustaining and growing A-35 activities. Anthony has demonstrated true leadership abilities as the Co-Chair for A-35, Annual Chapter Golf Outing Sponsor Volunteer, and Scholarship Auction Co-Chair—the auction was a huge success, resulting in close to $13,000 in net profits to be used for scholarships for deserving students pursuing a degree in the transportation/logistics field. Anthony has all of the characteristics that define a Junior Executive Leader—commitment, dedication, and the willingness to stand up and be counted. He is a true asset to the Washington, DC Chapter and the NDTA.

M

aster Sergeant Jason A. Eighmey, an Air Transportation Specialist for the Cargo and Traffic Management Branch, is responsible for developing AMC policy and providing command-level guidance for 22 fixed and 180 remote aerial port locations that move 1.4M cargo tons and 4.6M passengers annually to maintain $1B in Transportation Working Capital Fund revenue. MSgt Eighmey explored the unconventional use of Transportation Priority-4 policies to maximize unused airlift capacity on flights returning to the US. He closely monitored 32 US Central Command distribution lanes, increasing asset delivery efficiency by 45% and slashing cargo movement delays by 55%.

He coordinated $100,000 worth of critical highline docks at Incirlik Air Base, Turkey, enabling aerial port personnel to quick-turn C-17 aircraft, speeding delivery of 26,000 tons of add-on-armor vehicle kits to the warfighter in 90% less time. MSgt Eighmey authored the Intra-theater Civil Aviation Initiative Concept of Operations, which has since grown to encompass roughly 50% of all pallet positions moved within CENTCOM. He is truly deserving of this year’s NDTA’s International Junior Executive Award.

NDTA INNOVATIVE LOGISTICS SERVICE AWARDS

T Unisys Data Division 618th Tanker Airlift Control Center (TACC) Air Mobility Command (AMC)

he 618th Tanker Airlift Control Center (TACC), Data Division (a.k.a.

Fusion Cell) was created after the events of September 11, 2001, to provide senior decision makers with information about the movement of air mobility assets, to include cargo and passengers on AMC missions, in particular, those associated with contingency operations. A unique team of Unisys contractors has enhanced the TACC’s command and control functions by analyzing air mobility missions with special emphasis on contingency force movement, tanker refueling, and passenger and cargo data. This exceptional federal government contracting entity closely tracks every passenger and cargo short ton airlifted in and out of US Central Command in support of Operations Enduring Freedom and Iraqi Freedom. The Unisys

Team’s TACC’s Data Division implemented innovative practices that provide unique capabilities not currently accomplished by other USTRANSCOM or AMC entities.

Unisys contractors man the division 24/7, thereby providing operations during peace or war with little change in daily processes.

This operational concept helps AMC and the DOD to “train like we fight” and enhances their ability to quickly respond to real-world crises. Through major deployments, sustainment, redeployments, surges, and special operations, the Unisys Team responded to leadership’s demands on a moment’s notice, precisely and with enthusiasm. The accomplishments of the Unisys Team exemplify the true spirit of innovative support for our Nation’s logistical pipeline, and the team is truly deserving of recognition by the NDTA. www.ndtahq.com | 41

NDTA DISTINGUISHED SERVICE AWARDS

NDTA SCHOLARSHIP AWARD WINNERS PROGRAM A Clemson University

Jason C. Weeks

University of Dubuque

Mr. Joseph F. Bonfiglio Scott-St. Louis Chapter

Mr. Jim Burkhardt

Mr. Sean Caulfield

Ms. Alicia Clark

Valley of the Sun Chapter

Washington, DC Chapter

Valley of the Sun Chapter

Thomas R. Goad, Jr. University of Maryland

Tiffany Hung Wen Chen Ekaterina Kroupnik Tanya Levy Joseph McCord Ryan McCrory University of Michigan

Kevin T. Kovanda

PROGRAM B (College) Mr. David Curry

Mr. Paul Dowler

Susan K. Duran

Scott-St. Louis Chapter

Central Pennsylvania Chapter

San Francisco Bay Chapter

LTC John Fasching, USA (Ret.) Central Pennsylvania Chapter

University of Michigan

Kevin T. Kovanda

Christopher Newport University

Katelyn J. Anders

Tidewater Community College

Crystal Bialas Photo Not Available

University of North Carolina at Chapel Hill

Harrison P. Brooks University of Virginia

Eva-Marie B. Etzel Col Jerry Goodrich, USAF (Ret.) Washington, DC Chapter

Ms. Tara Feilmeier Scott-St. Louis Chapter

Col Cheryl Asti Ms. Susan F. Hubbard Heimerman, USAF (Ret.) Tidewater Chapter Scott-St. Louis Chapter

PROGRAM B (High School) First Colonial High School (Virginia Beach, VA)

Timothy Curtis

Southern Illinois University (Edwardsville, IL)

Megan Nesbitt Photo Not Available

Springbrook High School (Silver Spring, MD)

Shannon A. Connolly

Texas A&M University (Corpus Christi, TX)

Marian P. Fisher Mr. Larry Kennedy Charleston Chapter

CMSgt David E. Lamphere, USAF (Ret.) All American Chapter

Mr. Larry Mawn

Mr. Koos Mulderink

Baltimore Chapter

Benelux Chapter

University of South Florida (Tampa, FL)

Brandon S. Hood

Virginia Polytechnic Institute (Blacksburg, VA)

Kelsey Heiter

Woodside High School (Newport News, VA)

Celestine M. Calhoun

Mr. Barry Noe

Ms. Gina Ortiz

Ms. Yolanda Rios

Mr. Irvin Varkonyi, CSCP

Baltimore Chapter

San Joaquin Valley Chapter

San Joaquin Valley Chapter

Washington, DC Chapter

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NDTA INTERNATIONAL CHAPTER OF THE YEAR AWARDS The International Chapter of the Year Award was initiated in 1977 to recognize chapters that have excelled in fostering the goals and objectives of NDTA; promoting an understanding of the importance of transportation to the security of the Nation; participating in community service programs; developing quality educational programs for the chapter membership; and providing for chapter growth through effective membership recruiting and retention programs.

CATEGORY I

CATEGORY II

CATEGORY III

Central Pennsylvania Chapter

Charleston Chapter

Scott-St. Louis Chapter

In 2007/2008, the NDTA’s Central Pennsylvania Chapter continued to build on the success of its revitalization program through aggressive leadership, an energetic board, and dynamic chapter events and programs. The programs, events, and Chapter direction were strategically aligned with the NDTA’s Ten-Year Plan.

The Central PA Chapter’s Strategic Plan was shaped and informed by the local, national, and international capability needs of today’s dynamic transportation and distribution environment and executed with precision. The Central PA Chapter’s achievements this year, to include its hosting of the Hershey Regional Forum and its support of the Wreaths Across America initiative, showcased its dedication to increasing membership, educating government and private sector individuals, fostering partnerships, and building relationships to improve the Defense Transportation System. The Central Pennsylvania Chapter of the NDTA is on-point and truly deserving of the prestigious Category I International Chapter of the Year Award.

The Charleston, South Carolina, Chapter exceeded all expectations and goals of the NDTA. The chapter excelled in bringing in experts throughout the transportation arena as guest speakers, greatly increasing their members’ knowledge in all areas of transportation. The chapter’s focus on recruiting and retaining members won it the 2006-2007 recruiting competition in its category. In disaster preparedness, it helped the Naval Weapon Station and Charleston Air Force Base execute hurricane evacuation plans to protect both civilian and military personnel. Its members have been the backbone of the War on Terrorism, moving more than 60% of all cargo going to Iraq through Charleston Air Force Base and the Naval Weapon Station. Its leaders have done an outstanding job of molding their military and civilian members into a collaborative transportation team to meet the nation’s ever-growing need for global transportation, and the chapter is truly deserving of recognition as the International Chapter of the Year.

The Scott-St Louis Chapter supported worthy causes within the community in many ways. Through its fundraising efforts, the chapter donated $10,000 to help finance the construction of the Saint Louis Fisher House for the families of Veterans Administration service recipients while they are hospitalized. Through its association with the Armed Forces Communications and Electronics Association and its interaction with United States Transportation Command J5/4’s Distribution Academy and the Joint Logistician Training Program, it co-sponsored the TechNet Mid-America Conference to provide logistics training and professional development and an opportunity for cross communications with functional logistics and technology providers. The A-35 committee designed, funded, and created a recreation room in the Scott Air Force Base Aeromedical Staging Facility (ASF) to support those who have been injured during their service in theater. Scott-St. Louis Chapter deserves recognition as the NDTA Category III International Chapter of the Year.

NDTA INTERNATIONAL A-35 CHAPTER OF THE YEAR AWARDS The International A-35 Chapter of the Year Award was instituted in the continuing endeavor to involve young people in the varied programs of the NDTA and to recognize those Chapters that make significant contributions to the furtherance of this goal.

CATEGORY II San Antonio Chapter

The San Antonio Chapter is recognized as the 2008, International A-35 Chapter of the Year, Category II, for outstanding achievement in meeting the goals of the Chapter and the National Association.

Action 35 members eagerly arranged and coordinated many chapter events and were very active elsewhere in the Association. They have been elected as officers and to the Board of Directors and have chaired and served on several committees.

A-35 members took charge and arranged

a Mayoral Proclamation that established National Transportation Week in San Antonio, emphasizing the importance of transportation in the economy that has made the city one of the premier logistics hubs in the Southwest. Their direct role in planning and organizing events helped to enrich community relations by providing scholarships and educational support for deserving students, collecting and donating gifts for teenagers to the San Antonio Metropolitan Ministry Shelter, and sorting, boxing, and palletizing 7000 pounds of consumables for

the food bank, as well as washing several food bank vehicles, saving it an estimated $1100 in labor costs. The San Antonio Chapter is extremely proud of its A-35 members, just as the A-35 members are proud of being a part of the NDTA. They are the reason the San Antonio Chapter has truly earned the prestigious award of International A-35 Chapter of the Year.

CATEGORY III Washington, DC Chapter

The Washington, DC Chapter continues to set the standard for Action-35 Programs www.ndtahq.com | 43

by providing exceptional opportunities for mentoring and for encouraging its young members to actively assume greater responsibilities and roles in the NDTA, their community, and their professions.

Its program is recognized throughout the NDTA for its innovative and outstanding educational opportunities and the A-35 members’ dedication to the goals of the NDTA. A-35 members served on committees and took leadership roles within the organization. They set up programs

and actively participated at all levels of the NDTA organization. The Chapter A-35 members ran the LTG Edward Honor Mentor Protégé Program, in which more than 30 protégés have participated since its inception five years ago. By bringing in Senior Transportation leaders from both government and industry to act as mentors, these young people have given our protégés immeasurable experience and professional development from this phenomenal program. The A-35 mem-

bers held an outstanding Scholarship and Professional Development Auction that raised more than $15,000. A-35ers are also an integral part of the Chapter’s support to the Arlington Food Assistance Program, where chapter members meet once a month to bag groceries for those in need in the local community. The Washington, DC A-35 program reflects great credit on its members, the Chapter, the NDTA, and our great Nation. The Chapter is most deserving of this prestigious award.

COLONEL NORBERT GRABOWSKI MEMBERSHIP RECRUITING AWARDS CHAPTERS

Category I

Category II

Category III

INDIVIDUALS

Cape Fear Chapter

Charleston Chapter

Washington, DC Chapter

Mr. Edward L. Fountain

Mr. Joe Escalera

Cape Fear Chapter

Regimental Chapter

NDTA MILITARY UNITS AWARDS Since 1966, NDTA has annually honored units of the military services that have performed outstanding service in transportation or a related field. These units are selected by each of the Services and receive the NDTA Military Units Award at the Annual Transportation and Logistics Forum and Exposition.

Army

ACTIVE DUTY

109th Transportation Company (Medium Truck) JLTF 1144 Camp Arifjan, Kuwait

The 109th Transportation Company (Medium Truck), stationed in Mannheim, Germany, executes the peace time mission of delivering US Mail and general cargo throughout US Army, Europe. When deployed to Kuwait in July of 2007, the unit transformed to conduct a new, vital transportation mission in support of Operation Iraqi Freedom 2007/2008. The 109th conducted convoy security escort operations, an extreme challenge that it met with great success. Nicknamed the “Mule Skinners,” the 109th flawlessly escorted theater convoys from Camp Arifjan, Kuwait, to ma44 |

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jor Forward Operating Bases throughout Iraq, immediately distinguishing itself as one of the premier convoy escort companies in theater. For 15 continuous months it provided secure passage for more than 208 Combat Logistics Patrols, traveling more than 840,000 miles over the most treacherous roadways in the world to sustain the war-fighting capabilities of more than 150,000 Coalition Forces. The 109th directly supported the distribution of more than 94,000 short tons of equipment and supplies and was selected to train and validate three additional convoy escort companies passing along its knowledge of valuable tactics, techniques, and procedures to ensure future mission success. Due to the 109th Transportation Company’s dedication to mission accomplishment and support to our nation’s warriors, it is presented this year’s Army Active Duty NDTA Unit of the Year award.

SEPTEMBER 2008—Forum Issue

Army

NATIONAL GUARD

US Army National Guard E-429th Forward Support Company, 429th Brigade Support Battalion Roanoke, Virginia

Echo Company “Red Dragons” National Guard unit stationed in Roanoke, VA, conducts a peace time mission of providing all classes of supply to the 1-116th Infantry Battalion located in Lynchburg, VA. Its mission changed significantly upon the unit’s deployment to Iraq on July 25, 2007. Echo Company took soldiers from seven different states and 18 different units and formed them into a highly effective Medium Truck Company with the mission of conducting theaterlevel line haul support, hauling freight

from Arifjan, Kuwait throughout all of Iraq. In addition to missions in Kuwait, Echo Company conducted 173 missions over the world’s most dangerous roadways of Iraq, frequently under enemy contact from Improvised Explosive Devices, small arms fire, and mortars, while conducting convoys to and from the Forward Operating Bases in support of Operation Iraqi Freedom 2007/2008. For 10 continuous months, Echo Company delivered all classes of supply and equipment over these treacherous highways. More than 90% of the Company, including personnel from the Operations, Maintenance, and Supply sections and the Company Command Post, crossed the wire to ensure that they could accomplish the mission and give some rest to the truck platoons. Echo Company then created continuity binders and an aggressive training program to ensure the best training for its replacement unit before leaving theater on May 7, 2008. Echo Company excelled in all areas of NDTA’s Unit of the Year Award.

Army

RESERVE COMPONENT

US Army Reserve Component 353rd Transportation Company 457th Transportation Support Battalion Buffalo, Minnesota

“The 353rd Transportation Company, on order, will mobilize and deploy to provide transportation lift in support of corps operations.” This mission statement has remained the same for more than 60 years, going back to World War II, and the unit, based in Buffalo, MN, is proud of having always fulfilled that mission. During May 2007, the unit prepared for its pending deployment to Iraq in 2008 through extensive driver’s combat training, using live ammunition and enacting battlefield scenarios to simulate combat and gauge leadership level and teamwork within the unit. In June 2007, the 353rd Transportation Company supported Desert Warrior at Ft. Bliss, TX, providing fuel support for the exercise, as well as conducting additional combat simulated training. The unit also went on linehaul missions over its drill weekend, planning convoy operations and executing plans, and simulating its

wartime mission. The 353rd excels in every mission it is asked to complete, and does so with pride, professionalism, and remaining true to the Army Values and Soldier’s creed. The motto of the 353rd Transportation Company is “Roll and Go,” and there is no doubt that when duty calls, the 353rd will answer, as it has in its preparation to deploy. It deserves recognition through the NDTA Military Unit of the Year Award.

Marine Corps

ACTIVE DUTY

Headquarters and Headquarters Squadron Marine Corps Air Station Futenma Futenma, Okinawa

By virtue of their extraordinary service to III Marine Expeditionary Force and Marine Corps Bases Japan throughout 2007, the Marines and Civilians of VMR Futenma have distinguished themselves not only as the premier operational support airlift unit in the Marine Corps, but also as one of our Nation’s foremost operational transportation providers. On the wings of their UC-35D (Cessna Citation Encore) light jets and a single UC-12F (Beech King Air 200) turboprop, a small, dedicated team of Marine pilots, transport aircrewmen, air operations specialists, and civilian maintainers has risen to the challenge and provided 2485 Operational Sorties, flying 3727.5 Mishap-Free Flight Hours to 19 countries, carrying 3400 passengers, and 165,321 pounds of cargo, over an estimated 861,672 nautical miles, in support of Operation Enduring Freedom-Phillipines, as well as a humanitarian assistance/disaster relief operation, and nine Joint or Bi-lateral Exercises. Displaying professionalism and commitment to mission excellence, the unit afforded the warfighter not only the time sensitive movement of personnel and cargo, but also a mission-essential force multiplier in the Global War On Terrorism, contingency operations, and the myriad of exercises integral to the ambitious theater engagement plan of III Marine Expeditionary Force. Headquarters and Headquarters Squadron, Marine Transport Squadron (VMR), is truly deserving of the NDTA Military Unit of the Year Award.

Marine Corps

RESERVE COMPONENT

6th Motor Transport Battalion 4th Marine Logistics Group Red Bank, New Jersey

The 6th Motor Transport Battalion continued to support the Global War on Terrorism by providing valuable motor transport capability to multiple rotations of Operation Iraqi Freedom. Additionally, the battalion leveraged the experience of its combat veterans to develop and implement enhanced training for its Marines while also participating in an impressive array of annual events.

The battalion augmented and reinforced both I Marine Expeditionary Force and II Marine Expeditionary Force Gaining Force Commands with motor transport capability across three rotations of Operation Iraqi Freedom. The battalion’s ability to provide skilled and ready motor transport Marines in a sustained manner contributed significantly to the Gaining Force Commands’ ability to accomplish its transportation mission in theater. The battalion exercised its operational capabilities during annual training in support of 4th Light Armored Reconnaissance (LAR) battalion. This evolution was an opportunity for the Marines to provide actual Combat Service Support to a division unit in a tactical environment, and they provided basic lift, re-supply, refueling capability, retrograde operations, and aggressor support to 4th LAR. In each endeavor, the Marines of the 6th Motor Transport Battalion distinguished themselves as equal to every challenge; they remain focused on mission readiness and on sustaining excellence in all types of transportation operations and are once again deserving of the NDTA Military Unit of the Year Award.

Navy

ACTIVE DUTY

The Fleet and Industrial Supply Center (FISC) Naval Supply Systems Command Norfolk, Virginia

The Fleet and Industrial Supply Center (FISC), Norfolk, Ocean Terminal is a premier military transportation service provider offering stevedoring and container freight services across the Department of Defense. www.ndtahq.com | 45

Ocean Terminal’s culture of embracing innovation and fostering process improvement has led to a profound, positive impact on its customers’ logistics readiness. From January 1, 2007, to December 31, 2007, Ocean Terminal established a sense of urgency in revolutionizing the receipt and onward movement of 4,500,000 cubic feet of DOD freight to military units worldwide.

The Center stuffed more than 4000 export SEAVAN containers; stripped 860 import containers; worked 7900 trucks; loaded 6388 measurement tons of sustainment material on Combat Logistic Force ships; off/ on loaded 1706 measurement tons of Marine combat equipment on Navy amphibious ships; and handled 25,320 measurement tons of survival sustainment material for the Air Force Radar at Thule, Greenland. Small in size and limited in resources, Ocean Terminal delivers a powerful punch in the fight to keep the DOD supply chain moving in a quick, reliable, and cost effective manner, and it is certainly deserving of the NDTA Military Unit of the Year Award.

Navy

RESERVE COMPONENT

Navy Expeditionary Logistics Support Group Forward GOLF Navy Expeditionary Logistics Support Group Camp Arifjan, Kuwait

The Navy Expeditionary Logistics Support Group Forward GOLF (NAVELSG Forward) underwent an unprecedented transformation during this past year in addition to performing record setting volumes in its logistics and customs mission duties. During this entire period, the Support Group Forward excelled in its Customs and Cargo missions, managing record setting surges in cargo and personnel that prior rotations had always warned may come, but were only realized during its watch. Navy Customs processed a total of more than 1.1 million redeploying personnel and pieces of baggage and in excess of 300,000 pieces of redeploying equipment, while the Port Group processed and accounted for more than 60,000 pieces of equipment and cargo moving in and out of theater, exceeding the prior year’s throughput by more than 20%. An organizational restructuring was completed, which centralized Command and Control, eliminated redundancies, and allowed the 46 |

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Navy’s cargo handlers to achieve “Mission Complete.” This resulted in a reduction of more than 30% of Navy personnel required in Kuwait and Iraq, which substantially reduced future mobilization requirements to support the new streamlined organization.

It also provided for increased and improved logistics support to US Navy units located in the CENTCOM Area of Responsibility.

The Navy Expeditionary Logistics Support Group Forward GOLF’s accomplishments are recognized with the NDTA Military Unit of the Year Award.

Air Force

ACTIVE DUTY

8th Expeditionary Air Mobility Squadron 721st Air Mobility Operations Group Al Udeid Air Base, Qatar

The 8th Expeditionary Air Mobility Squadron (EAMS) is a key strategic airlift hub in CENTCOM. In 2007, the “Mighty 8th” EAMS moved 264,000 passengers and 94,000 tons of cargo on more than 16,000 missions in support of the Global War on Terrorism. The unit transported 45 percent of all theater munitions shipped by air and expedited the shipment of 198,000 pounds of blood plasma to medical treatment facilities. A total force of Active Duty, Guard, and Reserve, the 8th EAMS decreased risk to ground forces by reducing the number of convoys exposed to hostile fire and orchestrating the delivery of MineResistant AmbushProtected vehicles to Iraq. It facilitated the surge of the US Army’s 82nd Airborne Division by completing the delivery of 452 tons of equipment three days before the required delivery date. The unit implemented initiatives like building “pure” baggage pallets, which reduced aircraft download and ground surface handling times from 1 hour to 10 minutes. It established a Large Aircraft Infrared Countermeasures repair capability for C-17 aircraft; a Customer Service Branch that cut frustrated cargo time by 85 percent and saved $312,000; and contingency tirecut limits for C-17 aircraft, which reduced tire change requirements by 30 percent and saved $1.2 million in repairs and $400,000 in transportation costs. The Mighty 8th EAMS lived up to its motto, “Move the mission!” and won the NDTA Military Unit of the Year Award.

SEPTEMBER 2008—Forum Issue

Air Force

NATIONAL GUARD

193d Special Operations Wing / Logistics Readiness Squadron 193d Special Operations Wing Middletown, Pennsylvania

The 193d Special Operations Wing consists of 21 personnel providing vehicle operations and maintenance support for the only unit in the USAF that flies and maintains EC130J aircraft, which conduct airborne information operations and civil affairs broadcast missions. The 193d provided exceptional support for eight geographically separated units by controlling, accounting for, and coordinating replacements of 345 vehicle assets valued at 16.5 million dollars. The 193d received the Air Force Special Operations Command Inspector General’s outstanding recognition while simultaneously supporting two real-world contingencies during the initial phase of an Operational Readiness Inspection. Vehicle Operations maintained a 99% dispatch rate, supporting 1550 requests with 70% of assigned personnel deployed for more than 895 days. Vehicle Maintenance maintained 96.6% overall vehicle in commission rate for a fleet of 107 assigned vehicles and equipment, with a 99% vehicle in-commission rate for aircraft refueling vehicles directly contributing to 902 accidentfree sorties totaling more than 3073 flying hours for 2007. The 193d actively participated on the ground floor of planning and coordinating an innovative home station training, simulating a contingency environment known as OPERATION EINSTEIN, which resulted in a 25% improvement in training statistics, sharpened skills, and provided highly trained warriors for the War on Terrorism. The 193d certainly deserves recognition through the NDTA Military Unit of the Year Award.

Coast Guard

ACTIVE DUTY

USCGC Katherine Walker First Coast Guard District Port Of New York/New Jersey

USCG Cutter Katherine Walker manages maritime transportation systems within New York Harbor and its tributaries.

Maintaining an intricate system of 337 primary navigation aids, the cutter facilitated more than $149 billion of commerce within the Port of New York/New Jersey.

The crew sustained a 99.13% navigation aid availability rate, overcoming challenges posed by dense traffic, collisions, and ice damage and logged more than 660 miles to correct 33 ice-related discrepancies, laboring in sub-zero temperatures to maintain shipping channels and recover $80,000 of damaged aids to navigation

equipment. The crew upgraded 41 buoys from incandescent lighting to laser emitting diode (LED) technology. This not only produced a superior signal, but reduced hazardous battery waste, utilized solar energy, and increased power efficiency by 75%. The crew deployed five experimental ice buoys, each lasting the ice season without a discrepancy. The uniquely designed buoys withstood severe winter conditions and provided a light and radar signal equivalent to a summer aid. Collab-

orating with the New Jersey Department of Environmental Protection, the cutter recycled 160,000 pounds of derelict buoy sinkers as part an off-shore artificial reef program. The crew also served as primary Patrol Commander for major maritime events, coordinating traffic management and security zones for planned operations and unplanned contingencies, such as the grounded oil tanker White Star. NDTA recognizes this outstanding performance with its Military Unit of the Year Award.

INSTRUCTORS OF THE YEAR

MARINE CORPS

SSgt Brian D. Comisford

Logistics Operations School Camp Lejeune, North Carolina

NAVY

LT Timothy Mark

Navy Supply Corps School Athens, Georgia

AIR FORCE

Mr. Clarence E. Teat

37th Logistics Readiness Squadron Lackland AFB, Texas (AETC)

www.ndtahq.com | 47

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by Ken Wavering, President, Scott-St. Louis NDTA Chapter

I

n order to take advantage of the unique demographics of Scott AFB as both the Logistics and Communications and Electronics Centers of Gravity for the DOD, the Scott-St. Louis Chapter of the NDTA partnered with the Scott-St. Louis Chapter of the Armed Forces Communications and Electronics Association to create a conference that focused on the functional logistics and information technology needed to support the warfighter. “TechNet Mid-America 2008” grew out of a need to tie the logistics providers with technology providers to discuss the issues that are common to the end customer . . . the warfighter. As espoused by General Norton A. Schwartz, Commander, USTRANSCOM, logistics in transit visibility is equally as important as the items they move.

Therefore, General Schwartz declared this year for USTRANSCOM and its components the “Year of Visibility” to focus his staff on ensuring that customers could trust that their products were being delivered when promised. He believes that by using information technology and the data systems to prove that products were being delivered on time, he can provide more trust in the delivery of goods and services throughout the globe. To emphasize his direction, the Conference Committee blended several suggestions to create this year’s conference theme, “Distribution Visibility and Data Availability for the Warfighter.” The theme evokes several important concepts.

First, we need to leverage knowledge using information technology (IT) to provide real time visibility into the distribution process, to compress the decision cycle, and to empower our warfighters to make optimal decisions.

These decisions can run the gamut

Top to bottom: Opening Exhibit Hall Crowds; Exhibit Hall Ribbon Cutting (Ken Wavering, chapter President, and Sharon Brahmbhatt, Regional NDTA President).

Photos by Dawn Miller-Walker, Technology Forums.

from identification of friend or foe to the more mundane, such as how to best supply water to the area of operations.

Second, in these uncertain times, the DOD’s need for enhanced operational readiness, expeditious mobilization, and next generation delivery methods is extreme. One of the specific needs we discussed during this conference was to provide our warfighters with more effective IT support that allows them to see where their critical requirements are in the distribution process so they can plan and fight accordingly.

Third, we must provide the war-fighter with secure access to all relevant information, we must be able to unify our modes

of communication to enhance collaboration and decision-making, and we must view our current network as a critical component needed for mission success.

Our distinguished keynote speakers took on this challenge and provided outstanding discussions from their own perspectives. Mr. Thomas J. Edwards, Assistant Deputy Chief of Staff, US Army G-4, discussed the roadmap of providing the logistics systems that are supporting the soldier on the ground today relative to the future. The US Army logistics transformation initiative of the Single Army Logistics Enterprise (SALE) is one of the largest SAP ERP system implementations to date.

Vice Admiral Ann E. Rondeau, Deputy Commander, USTRANSCOM, discussed the relationships of professional organizations and the parallels with military organizations to provide service support, professional ethics, and growth paths for the future leaders. Major General Robert H. McMahon, Director of Maintenance, Deputy Chief of Staff/Logistics, Installations and Mission Support, Headquarters, USAF Pentagon, discussed the Air Force Logistics transformation initiative eLog21 and its effect on the warfighter.

Lieutenant General Michael W. Peterson, Chief of Warfighting Integration and Chief Information Officer, Office of the Secretary of the Air Force, discussed the future of Cyber Command and the importance of providing timely, relevant, decision-ready data to the warfighter.

EXHIBIT HALL OPENING With more than 850 attendees, TechNet Mid-America 2008 provided an opportunity to learn and discuss a variety of current issues that are impacting our soldiers, sailors, airmen, Marines, and Coast www.ndtahq.com | 49

This year’s event was a great success and proved the viability of bringing together the two disciplines. All of the senior officers in attendance agreed that the concept was valuable and necessary.

Therefore, the Scott-St. Louis Chapter is looking forward to providing a bigger and better conference in 2009.

expertise. We also had Maj Gen John Maluda, Director, Cyberspace Transformation and Strategy, Secretary of the Air Force Office of Warfighting Integration, discuss Cyber operations and the impact of the warfighter with a panel of 4 outstanding experts in cyber operations. In the breakout sessions, we had government and industry professionals discussing supply chain management, Mine Resistant Ambush Protected (MRAP) vehicle delivery, Expeditionary Combat Support System (ECSS), the Global Logistics Support Center implementation, and medical logistics.

This year’s event was a great success and proved the viability of bringing together the two disciplines. All of the senior officers in attendance agreed that the concept was valuable and necessary. Therefore, the Scott-St. Louis Chapter is looking forward to providing a bigger and better conference in 2009. DTJ

Clockwise from top: VADM Ann Rondeau, Deputy Commander, USTRANSCOM; Lt Gen Peterson, SecAF CIO; Mr Thomas Edwards, Deputy Chief of Staff, US Army G4.

Guardsmen and their ability to deploy and sustain forces globally. This year’s event was packed with activities including: • 20 Professional Development Seminars, • 3 Logistics Training Courses, • 3 Information-Packed Panels, • 4 Keynote Presentations, • More than 80 industry companies and government organizations exhibiting; and • A special exhibit sponsored by the Lincoln Presidential Library celebrating the 200th anniversary of the birth of President Lincoln Our panelists and presenters shared their vision of an emerging front for the

integration of technologies and distribution concepts to improve the warfighters’ situational awareness, allowing the quick access, integration, and display of large sets of data. We discussed Automatic Identification Technology (AIT) with a diverse panel of experts led by Mr. Dave Dias from USTRANSCOM, along with Greg Beecher, Air Force Asset Marking and Tracking Transformation Initiative Lead, Bob Bacon, Director of Navy AIT, Mr. Steve Georgevitch, AIT Program Manager from the Boeing Company, and Justin Patton, Managing Director of the University of Arkansas RFID Research Center. These people espoused the collective effort and accomplishments across each of their areas of

Sponsors: Armed Forces Communications and Electronics Association Scott–St. Louis Chapter and the Scott AFB Chapter of the NDTA

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SEPTEMBER 2008—Forum Issue

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CHAPTER NEWS* MONTGOMERY CHAPTER

Mark Womack, Assistant Commissioner of the SEC, presents award to Leon Marlaire.

Long-time NDTA member Leon Marlaire and regular Forum attendee with wife, Vicki, was selected by the Southeastern Conference for the 2008 SEC Basketball Legends Class. An All-SEC player in 1954, Leon helped lead the University of Alabama to the 1956 SEC Championship with a perfect 14-0 SEC record. Nicknamed “Alabama’s Hardwood Quarterback” and “Mr. Outside” and “Mr. Long Distance” for his shooting, he was a key member of Alabama’s famed “Rocket 8” basketball team that was ranked 5th in the nation in 1956. He was honored at the SEC tournament in Atlanta on March 13.” Leon is affiliated with the NDTA

GOVERNMENT NEWS* MILITARY SEALIFT COMMAND (MSC) Civil service mariners joined the embarked crew aboard MSC hospital ship USNS Mercy to renovate a local school and health clinic in Nha Trang, Vietnam, June 22. More than 30 crew members deployed to the Tinh Khanh Hoa rehabilitation and education center for children with disabilities and the Vinh Trung health clinic in support of Pacific Partnership 2008—a four-month humanitarian and civic-assistance mission to the Republic of the Philippines, Vietnam, the Federated States of Micronesia, TimorLeste, and Papua New Guinea. Crew members renovated the school’s facilities by adding new handicapped accessible doors, sinks, light fixtures, and handrails.

Volunteers also painted window shutters and installed exhaust fans and a rubberized floor in common areas of the school.

Volunteers built a steel metal awning that will be used as an outdoor patient waiting area, and they poured concrete to make a sidewalk outside of the building. Pacific Partnership is a mission that is taking medical, dental, veterinary, engineering,

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

Montgomery Chapter and served as VP, Baggett Transportation Company. He graduated from the University of Alabama in 1956 and founded the Birmingham Tip-Off Club in 1974, an organization that still thrives with more than 500 members. DTJ

Be sure see what the ScottSt. Louis Chapter has been up to—read the TechNet Mid America Conference Wrap Up in this issue of the DTJ.

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

and civic assistance to Southeast Asia and the Western Pacific to build on relationships that have been developed during previous similar missions.

SDDC Colonel Stephen E. Farmen officially took command of the Military Surface Deployment and Distribution Command’s (SDDC) 598th Transportation Group (TG) on July 10, 2008. COL Farmen and departing commander Colonel Mark A. Westbrook were honored by the Mayors of Capelle aan den IJssel, The Netherlands, and Bremerhaven, Germany, and more than 200 military and civilian transportation and logistics authorities from Europe and the US. COL Westbrook’s next assignment will be Chief of Staff of Fort Eustis, Virginia.

The 598th TG is responsible for the total planning, coordination, support, and execution of port operations to globally move the defenders of peace anytime, anywhere. Subordinate units, located in six countries in Europe besides head-

quarters in Capelle aan den IJssel, assist in accomplishing this mission.

UNITED STATES AIR FORCE The Air Force has proposed a plan to develop its enlisted and officer corps into Airmen who specialize in establishing, controlling, and fighting in the cyberspace domain.

That’s according to Maj. Gen. William T. Lord, Air Force Cyber Command (Provisional) commander, who explains, “We’ve created a roadmap that outlines our efforts to establish cyberspace operators, specialists, analysts, and developers who grow from a basic understanding of cyberspace doctrine to experts in their respective fields. Along with outlining specific career fields that can be used throughout our Air Force, we also looked at how we can deliberately manage their careers to grow cyberspace warriors, leaders, and future visionaries.” DTJ

Stand up for the Cyber Command is Oct. 1, 2008

www.ndtahq.com | 53

INDUSTRY NEWS* FIKES TRUCK LINE The Arkansas Trucking Association recently presented Fikes Truck Line with the Corporate Fleet Safety Award determined by reportable DOT accidents in the state of Arkansas. Fikes won the award based on their

Kelly Andrews, Director of Safety at Fikes, receives award.

record of zero reportable accidents in Arkansas in 2007. Fikes was categorized in the large company/flatbed division, which positioned Fikes in direct competition against larger trucking companies. According to Jerry Davis, EVP, “This award serves as a true testament of the professionalism and partnership of our owner-operators, fleets, and agents.” Fikes Truck Line is a premier national trucking company that specializes in flatbed, RGN, heavy haul, military hauls, drop-deck, and side-deck trailers.

LABELMASTER Labelmaster®, a US-based manufacturer of hazardous materials and regulatory compliance products, has combined its A.I.R. Shipper™, Air International Regulations for Shippers of Dangerous Goods; Early 49 CFR; 49 CFR Government edition, and RegStick™ electronic editions into an affordable, convenient package. New companion books for the A.I.R. Shipper are also included: A.I.R. Shipper™ Packing Instructions provides guidance to forthcoming changes being implemented in 2011; A.I.R. The Shipper™ Companion 54 |

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

User’s Guide provides important information on navigating through the A.I.R. Shipper™; and International Regulatory Structure booklet provides descriptions of the basic relationships of regulatory agencies and groups. Tabs, ruler, and air label poster complete the set.

MAERSK LINE, LTD. This year, 2008, marks a significant milestone for Maersk Line, Limited (MLL)— its 25th year of providing service to the US Government. In 1983, MLL was awarded its first contract, for the conversion and operation of five Maritime Prepositioning Ships (MPS) for MSC. MLL supervised the conversion of these former Maersk Line E-Class combination ships to strategically preposition US Marine Corps cargo around the world and has continuously operated and maintained them ever since.

In 25 years, MLL has increased the number of ships operated for the US government from 5 to 30 and has established a fleet of 30 US Flag commercial container, tanker, multi-purpose, and ro/ro ships— the largest US Flag fleet afloat. This fleet transports more US government cargo in support of military and humanitarian missions than any other US company. To ensure that the US has the sealift capacity it needs in a national emergency, MLL has pledged 26 ships to the Maritime Security Program and helped establish the Voluntary Intermodal Sealift Agreement. MLL is also committed to improving safety with the “Drive to Zero” program, and to being more environmentally friendly through greener technologies and standards.

“Each and every colleague at MLL has played an integral part over the last 25 years to our success as a company and as a key partner in US national security,” said MLL President and CEO John Reinhart.

“The talent of our team has continued to drive our evolution and will be crucial in tackling the challenges and opportunities that arise in the future. We look forward to building on our strong foundation and

SEPTEMBER 2008—Forum Issue

traditions to continue to provide US government agencies and their prime contractors with comprehensive maritime and transportation services around the globe.”

PORTS AMERICA GROUP Ports America Group has announced the promotions of Douglas A. Tilden from chief executive officer to chairman and Stephen Edwards from president to chief executive officer and president. Earlier this year, Tilden was promoted to CEO of Ports America from his previous position as president and CEO of Marine Terminals Corp./ MTC Holdings. He began his career in the shipping industry in 1969, working for US Lines for 18 years before joining Marine Terminals Corp. in 1987. This new role will allow Tilden to focus on enhancing value to customers and to work on corporate-wide strategic initiatives. “As chairman I will be able to devote time and attention to our top strategic priorities—exceeding our customers’ expectations and making a long-term investment in the business,” Tilden said.

Edwards joined Ports America in February 2005 after working 17 years for the P&O Group. Prior to his appointment as president, Edwards was president and CEO of P&O Ports North America, Inc.

XIO STRATEGIES, INC. We’ve Moved! Effective August 1st!

1919 Gallows Road, Suite 900 Vienna, VA 22182 Main Office: 571-722-1900 DTJ

>>

Douglas Tilden is slated as Keynote Speaker at the 62nd NDTA Forum & Expo. Tilden will deliver remarks at the Opening Ceremony on Monday, Sept. 22.

For more Forum Program details, please see Forum pages in this issue of the DTJ.

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NDTA’s Professional Development Supports DOD Human Capital Logistics Strategy

By Irvin Varkonyi, Chair, Education Subcommittee, NDTA

It has been nearly a year since NDTA launched the “Professional Development” column in the DTJ. We are pleased that the articles have been well received and that they have helped meet specific educational requirements of Association members. The demands of the defense transportation industry, combined with rapid technological advances, places increased responsibility on professional logisticians to maintain up-to-date knowledge in their field. This need gave rise to the professional development column to help in their pursuit of professionalism.

NDTA, at both national and chapter levels, has provided additional resources during the past year through professional development workshops for private and public sector logisticians at various NDTA events. Lively discussion and learning was generated through recent workshops at Scott AFB (TechNet Mid America Conference; July 21-23; co-sponsored by the Scott-St. Louis Chapters of NDTA and AFCEA). Three sessions were presented: Key Performance Indicators; JDDE Relationship Management; and Lean Strategies Meets the DOD Supply Chain.

KEY PERFORMANCE METRICS Measures and performance management is one of the nine JDDE functions, which falls in line with Key Performance Metrics, also referred to as Key Performance Indicators (KPIs.) KPIs provide an enterprise with the ability to objectively evaluate its performance and relate to internal and external operations. DOD’s Defense Transportation Regulations, C1.5.1.1. define metrics as follows: “Metrics should provide quantifiable, measurable outputs or outcomes that address all classes of supply and describe all supply chain processes or functions from acquisition through final disposition of end items and material.”

While metrics are easy to define, their challenge is to measure what you want to measure, measure what you want accurately, and use the data to effect change.

Understanding KPIs is only the beginning. Utilizing the data from KPIs is much more difficult.

Under the JDDE, DOD seeks to understand these components to better understand Key Performance Measures: • Analyzes metrics that the DOD is not meeting in order to propose solutions.

• Uses technology to perform analytical processing and data manipulation.

• Organizes and leads teams engaged in studies of complex logistics issues and problems.

• Ability to design and build complex, sophisticated decision models.

• Identify DOD/Service enterprise level performance objectives and output goals.

JDDE RELATIONSHIP MANAGEMENT Relationship management in a joint environment calls for re-defining traditional service focused relationships. If that were the only major change, this subject would be challenging enough, but it is not.

Managing relationships among the services while supply chain transformation

>> NDTA will continue to offer educational opportunities for the benefit of its members. The Forum section in this DTJ has details concerning Workshops scheduled for the Reno/Tahoe Forum. For a summary of the Atlantic Regional Forum Workshops held in Hershey, Pennsylvania, in June, see the July NDTA Gram (archived on the NDTA homepage at www.ndtahq.com). >> In this Professional Development article, you will find a synopsis of Workshops presented at the TechNet Conference at Scott Air Force Base this past July. Thank you to NDTA National Headquarters and the Central Pennsylvania, Scott-St. Louis and Washington, DC Chapters for providing venue support!

is changing companies into virtual enterprises complicates this topic even further.

An Army Logistics Officer (who is the result of the combination of Ordinance, Quartermaster, and Transportation officers) deals with a USAF Logistics Readiness Officer (who is the result of the combination of Supply and Transportation officers). They must seamlessly collaborate in their planning and implementation in the support of a joint Army/USAF effort. Further, they must understand that their suppliers may deal directly with other agencies such as DLA. Having the knowledge that these suppliers may by virtual enterprises, the two officers must have the confidence that their supplier has strong relationships throughout their supply chain. Further, DLA must have an optimum relationship level with their suppliers. While easier said than done, this is achievable and desirable because the results will be an economy of scale that will allow the customers for each one (Army and USAF warfighters) to perform better without spending as much on resources as previously. www.ndtahq.com | 57

Under the JDDE, DOD seeks to stimulate effective joint relationships by the use of the following components: • Understands the roles and responsibilities of all Joint Deployment and Distribution Enterprise partners (DOD, Non-DOD Government Agency, and Commercial).

• Recognizes the priorities of all partners and how they affect DOD logistics.

• Develops and manages mutually beneficial relationships with JDDE partners.

LEAN STRATEGIES MEETS THE DOD SUPPLY CHAIN Lean is a hot concept. The Department of Defense has put great emphasis on reducing waste by using Lean techniques. Lean, combined with Six Sigma quality training, provides guidance to DOD logisticians to improve the quality of its supply chain and reduce waste.

Lean can, as with our other topics, be interpreted in many ways. Some can interpret Lean as a technique to reduce inventory by substituting Just in Time techniques for inventory. Others state that Lean calls for an enterprise to transform its processes to be more efficient, which in turn reduces costly inventory.

Lean is associated with waste, sometimes referred to as the seven deadly sins of waste. As described by the Lean En-

Lean is a hot concept. The Department of Defense has put great emphasis on reducing waste by using Lean techniques. Lean, combined with Six Sigma quality training, provides guidance to DOD logisticians to improve the quality of its supply chain and reduce waste. terprise, when looking at manufacturing enterprises, operations professionals must attack the following: • • Overproduction – producing more, sooner, and faster than required by the next process • Excess transportation – any transport that adds cost but no value to the product • Excess inventory – this not only is a waste, but also creates waste • Excess processing – doing more work than necessary • Waiting – operator or machine idle time • Correction – repairs to products • Motion – walking or wasted motion to pick up or store parts

•

• • Compares multiple inventory planning techniques (dollar cost banding,

visit us at www.kcsouthern.com.

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•

•

Kansas City Southern proudly serves Fort Polk, Louisiana, Camp Shelby, Mississippi, the Port of Beaumont, Texas and all major North American

Defense Transportation Journal

•

Under the JDDE, DOD seeks to improve inventory planning by using the following components:

Kansas City Southern is Proud to Partner with the U.S. Military

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SEPTEMBER 2008—Forum Issue

historical, econometric, and statistical) in order to select the most appropriate method for the situation.

Forecasts materiel demands in order to determine Authorized Stocking Levels (ASL) and reorder points.

Performs inventory planning using at least one inventory planning technique.

Calculates optimal inventory levels for required materials in order to match supply with demand.

Categorizes products using Inventory Segmentation in order to determine appropriate stocking levels.

Uses tools to set inventory levels that meet customer service levels with a minimum amount of inventory.

Analyzes and predicts in theater common user item stock levels. Makes recommendations for theater forward supply points.

Negotiates target inventory objectives with customers to balance readiness and cost at levels to meet the mission. DTJ

Irvin Varkonyi, CSCP, is president of Supply Chain Operations Preparedness Education (www.scopedu.com), a firm offering training and consulting in organizational preparedness for private and public sector organizations. He has three decades of experience in air transportation and logistics, which he utilizes to teach and train undergraduates, graduate students, and adult learners.

Mr. Varkonyi is an expert in professional development instruction, with DC Metro APICS and a university adjunct professor with the American Military University in their Homeland Security, Transportation and Logistics department and at George Mason University’s School of Public Policy.

“We hope to see as many of you as possible in Reno. Please have representatives of your organization enroll in one, two, or all three of the scheduled workshops.”

Transportation Security Are We Focusing On the Right Things?

Lee Jackson Lead, Information Systems Engineer The MITRE Corporation

T

he Department of Homeland Security (DHS) plans to award more than $844 million in grants this year to help secure the nation’s infrastructure as part of DHS grant programs for infrastructure protection activities. During times of rising fuel prices and on-going issues facing our economy based on the war in Iraq and significant challenges in both the housing and mortgage industries, my hat goes off to the Administration and Homeland Security Secretary Michael Chertoff in obtaining this years, funding level. As Secretary Chertoff stated, “With this year’s funding, the Department will have provided roughly $3 billion in grants for securing the nation’s infrastructure and transportation systems.” Clearly, in this writer’s opinion, we have turned the corner in the race for homeland security funding for the Nation’s infrastructure.

However, with this milestone in place, the next question is, “Are we focusing on the right things?”

I think the answer is “NO”! The following data will support my reasoning.

Allocations for the 2008 fiscal year IPA grant program funding include:

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al Ente r

ise

T he

pr

G

• $388.6 million – Port Security Grant Program (PSGP) • $356.1 million – Transit Security Grant Program (TSGP) • $48.5 million – Buffer Zone Protection Program (BZPP) • $25 million – Intercity Passenger Rail Program (IPRP) • $15.5 million – Trucking Security Grant Program (TSP)

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0 20 mb er 20-24, V RE NO-T , N AHOE

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8

• $11.2 million – Intercity Bus Security Grant Program (IBSGP) • $ 7.4 million – Freight Rail Security Grant Program (FRSGP) I don’t know what specific criteria were used to arrive at the funding levels since I wasn’t engaged in the decision process; however, I do think, based on my experience with motor carrier operations, intermodal freight operations, and hazardous materials, that the allocations for the TSP, IBSGP, and the FRSGP are seriously inadequate. The vulnerabilities and consequences of an attack on critical infrastructure in these areas are enormous and must be addressed immediately. It is just a matter of time before another incident occurs involving our transportation infrastructure. Remember, the aircraft that burst into the World Trade Center on 9/11 not only disrupted travel and claimed lives, but also carried more than 6800 gallons of jet fuel each, which is classified as hazardous material and which brought the Twin Towers down along with innocent men, women, and children.

The chart at right notes major terrorist actions specifically, with the exception of events involving the Achille Lauro, Pan AM 103, and the World Trade Center incidents, that impacted the surface transportation infrastructure and that involved hazardous materials. Therefore, I believe that the IPA grant program funding should be more evenly distributed and, at a minimum, provide several million dollars more of additional funding for trucking, bus, and freight rail security.

HOMELAND

SECURITY The DHS IPA grant program is an excellent tool in our Nation’s fight against terrorism, but we need to reexamine allocation to ensure that there is focus on the right things. It is Just a Matter of Time! DTJ

Sep. 5, 1972

Terrorists kill 12 at Munich Olympics (athletic event)

Oct. 7, 1985

Achille Lauro hijackers kill one (cruise ship) Scotland Pan Am Flight

Dec. 21, 1988 103 bombing kills 270 (airplane)

Feb. 26, 1993

World Trade Center bombing kills six (rental truck)

Apr. 19, 1995

Oklahoma City bombing kills 168 (rental truck)

Aug. 7, 1998

US embassy bombings in Tanzania and Kenya kill 225 (trucks) Terrorist attacks in US

Sep. 11, 2001 kill approximately 3000 (airplane)

Oct. 12, 2002

Bali, Indonesia bombings kill 202 (car bomb)

Mar. 11, 2004

Madrid bombings kill more than 190 (subway)

Jul. 7, 2005

London subway bombings kill 37 (subway)

Source: Government Security News (GSN), June 2008, www.gsnmagazine Note: The opinions expressed in this article are solely those of the author and do not reflect positions of either the MITRE Corporation or the NDTA.

POST FORUM TOUR OPTIONS

LUNCHEON CRUISE ON LAKE TAHOE Emerald Bay

If you are planning to stick around after the NDTA Forum

STREET VIBRATIONS

September 25, 2008 Landmarks & History September 24 - 28, 2008 Tunes, Tricks & Tons of Chrome

OKTOBERFEST

September 26 - 27, 2008 Bavarian Culture

LAKE TAHOE MARATHON

September 24 - 28, 2008 Walkers and iPods Welcome!

www.ndtahq.com | 59

<< INdustry INroads >> A Tribute to Truck Drivers

s this issue of the DTJ went to press, the 2008 National Truck Driving Championships (NTDC) were being held at the George R. Brown Convention Center, Houston, as part of National Truck Drivers Appreciation Week [August 19-23, 2008]. Even though you’ll receive your copy of the DTJ almost one month after that event, please join me in paying a tribute to all our truck drivers!

It is hard to imagine a world without trucks! But sometimes we take them for granted—including the professionals who make a living behind the wheel. Approxi-

mately 3.9 million miles of roads and streets criss-cross our great nation with more than 3.5 million truck drivers delivering the goods every day. Without their hard work, commitment, and skills, we couldn’t live, and our country couldn’t operate. Here is a quick fact for you to consider: 10.7 billion tons of freight were transported by the trucking industry in 2005, representing 68.9% of total domestic tonnage shipped.

That’s a hard act to follow!

It is no easy task to qualify for the National Truck Driving Championship.

Each driver must place first in his respec-

tive class at their state competition. To participate in the state competition, the driver must be accident free for one year.

Both the state and national contests include challenging driving skills and maneuvering tests, pre-trip inspections, and a written examination covering vehicle operation and federal safety regulations.

Nearly 400 drivers competed for national titles in eight different classes of vehicles for the National Grand Champion title. I am proud to say that at my company, YRC Worldwide, 69 of our professional drivers joined the contest.

I encourage you take a moment from your busy schedule to pay a tribute to the drivers who better our lives daily. Remember them not only during National Truck Drivers Appreciation Week, but all year long! Keep on truckin! DTJ

continued from page 7

the Defense Transportation Journal (DTJ), and our electronic newsletter, the NDTAGram, continue to receive accolades; our corporate membership base is solid and remains stable. The challenge continues to be individual membership. The deployments, training requirements, BRAC, organizational restructuring, and changes in functional designations all contribute to an unstable individual membership base.

Please continue to champion the value of NDTA membership for professional development, networking, and education.

Provide me with your ideas for sustaining and increasing individual membership.

Since we convened in Charleston, SC, in September 2007, there is one topic that has dominated conversations on transportation. It is the price of fuel. It impacts each of us in our daily routines and all transportation operating companies. As I write this column, the price of a barrel of oil is about $125 or almost $20 below its high.

We do not know the future price, but most experts agree it will not return to early 2007 prices. The challenge is how to profitably operate with oil at these high prices.

The emerging trends are to operate more efficiently, change processes, and conserve fuel. Some ideas: Pool equipment and loads, move more full containers and truckloads, optimize inventory by finding the right mix

of warehouses and distribution locations, consider consolidating warehouses and distribution centers, reduce idling time, increase use of auxiliary power units, maintain proper tire pressure, aggressively manage trip variances, reduce the number of empty miles, increase the number of intermodal moves, combine packaging facilities/capabilities with distribution centers, implement greater use of direct shipments-manufacturer direct to point of consumption and save 2nd destination costs, add winglets to airplane wings, convert to more fuel efficient engines, reduce operating speeds, consider increasing the size and weight authorizations for trucks operating on the interstate system (this is a political decision), develop a long-term strategy of converting to hybrid vehicles, transition to alternative fuels (see article, pg 18, June 2008 issue of DTJ), and change the operating culture to emphasize conservation. Share your ideas, and we will publish them in the DTJ or the NDTA-Gram.

Our achievements are a direct result of your involvement and commitment. To each of you, our volunteers, award winners, program participants, board members, chapter leaders, and individual and corporate members, thank you for your great support. Thank you for your confidence in the Association and for the contributions each of you made to ensure our success. DTJ

Denise A. Bailey

Enterprise Solutions Group YRC Worldwide

A

• Passenger Travel Services Committee has been sharing knowledge with the DTMO, GSA, and providing feedback on the Defense Travel System implementation.

• Security Best Practices Committee works at the macro level to stay abreast of policy and regulatory changes or actions that potentially impact transportation and distribution operations.

• Distribution Committee has aligned more closely with DLA, providing ideas on best commercial practices that may have application within Defense operations, and proposed initiatives for potentially strengthening operations.

All of our administrative committees have made significant contributions to the operations of the Association and worked to improve service and add value for our members.

Financially the Association is solid—2 plus years of reserves, results of the annual audit were excellent; resources in the foundation continue to increase, and the number and value of scholarships increased by 25%; the A-35 program is active, and the mentoring program is effective and a model for others to emulate; our magazine, 60 |

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SEPTEMBER 2008—Forum Issue

Learn or Re-learn

COL Denny Edwards, USA (Ret.) VP of Marketing and Corporate Development, NDTA

from

Pages PAST

Several younger readers of Pages Past have remarked that through our on-going review of NDTA Journals, they have learned for the first time just how important their Association has been in the development and implementation of major transportation and logistics concepts and issues. In the case of our more senior NDTA members, they say that they have re-learned of that importance, some would say that crucial role, that NDTA has played in the development of not only the Defense Transportation System, but the entire transportation and logistics industry. Elsewhere in this issue you will read about the globalization of container security. Learn or re-learn, depending on your age, by reviewing how NDTA helped with containerization’s first big challenge—standardization.

M

any would say that the US Military gave birth to today’s container industry with the advent of the CONEX—or 20’ Container Express box.

Back in those days, the biggest challenge to the growth of the concept was size standardization to facilitate carrier interchange. NDTA’s Honorary President, and the Army’s first four star transportation general and top logistician of the time, was interviewed in the DTJ in 1961 and was quoted as saying, “The CONEX is the single most important development in transportation in the era of modern warfare.”

No less than the United States Senate asked NDTA for assistance on the container standardization issue. The Committee on Interstate and Foreign Commerce issued the Doyle Report in

1961 urging the government to adopt NDTA’s recommendation.

Morris Forgash of the United States Freight Company was awarded our National Transportation Award for heading the NDTA Committee whose recommendations were adopted by Congress.

In 1994, NDTA devoted an entire chapter of its 50th Anniversary Yearbook to the issues of containerization and standardization. Just as our association was key to solving containerization’s first big challenge, so too will NDTA’s support be invaluable in solving its second big challenge—global container security. Perhaps our 75th Anniversary Yearbook will have a summary of how NDTA helped solve the global container security problem “we had back in the post 9/11 era.” DTJ www.ndtahq.com | 61

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 M2 Transport AAR Mobility Systems ABF Freight System, Inc. Air Transport Assn. of America Air Transport International, LLC AIT Worldwide Logistics, Inc. American Maritime Officers American Public University System American Road Line American Trucking Associations American United Logistics ARINC Army Air Force Exchange Service Arven Freight Forwarding, Inc. Associated Global Systems Astar Air Cargo, Inc. ATA Airlines, Inc. Baggett Transportation Co. Blue Bird Coachworks BNSF Railway Co. Bender Shipbuilding and Repair Co., Inc. Boyle Transportation Cargo Transport Systems Co. Carlson Hotels Worldwide C.H. Robinson Worldwide, Inc. Chalich Trucking, Inc. Chamber of Shipping of America Computer Sciences Corp.

Comtech Mobile Datacom Corporation CRST International, Inc. Crowley Maritime Corp.

CWT SatoTravel

REGIONAL PATRONS AAAA Forwarding, Inc. AAT Carriers Acme Truck Line, Inc. Advantage Rent-A-Car AHI Corporate Housing American Moving & Storage Assn.

Association of American Railroads Asynchrony Solutions, Inc. Avis Budget Group AWARDCO Freight Management Group, Inc. BEC Industries, LLC C5T Corporation The Cartwright Companies Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals, Inc. Chassis King

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DynCorp International Dynamics Research Corp.

Efficient Hauling Systems LP dba EHS Industries Enterprise Rent-A-Car Europcar Fikes Truck Line GE Aviation General Dynamics/American Overseas Marine GeoDecisions Global Maritime & Trans. School-USMMA Greatwide Dallas Mavis Intermodal Association of North America (IANA) Intermarine, LLC International Commodity Carriers, Inc. 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 Liberty Maritime Corporation LMI Lockheed Martin Aeronautics Co.

Luxury Air Jets MacGREGOR (USA) Inc. ManTech International Corp.

Matson Integrated Logistics Matson Navigation Co., Inc. Mayflower Transit McCollister’s Transportation Systems, Inc. MEBA Menlo Worldwide Mercer Transportation Co. Mi-Jack Products Mobility Resource Associates National – Alamo (Vanguard Car Rental USA, Inc.) National Air Carrier Assn., Inc. National Van Lines NCL America, Inc. North Carolina State Ports Authority Northwest Airlines 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. Pacer Transport Pilot Freight Services Port of Beaumont Port of Oakland Powersource Transportation, Inc. Pratt & Whitney PRTM Management Consultants, LLC

Priority Air Express Raith Engineering Sabre Travel Network 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 United Maritime Group Union Pacific Railroad United Airlines UPS Freight United Van Lines, Inc. UTi Worldwide, Inc. VT Halter Marine, Inc. Wagler Integrated Logistics, LLC Whitney, Bradley & Brown, Inc. XIO Strategies, Inc.

C.L. Services, Inc. Coastal Maritime Stevedoring, LLC CSI Aviation Services, Inc. Delaware River Maritime Enterprise Council (DERMEC) DHL Japan Dollar Thrifty Automotive Group Federated Software Group FlightWorks Fox Rent A Car General Freight Services, Inc. Great American Lines, Inc. Green Valley Transportation Corp.

Hawthorn Suites – Alexandria, VA Hilton Hotels Corporation The Howland Group, Inc. HudsonMann, Inc. Hyatt Hotels and Resorts The Indiana Rail Road Company

IntelliTrans, LLC JAS Forwarding (USA), Inc. Kalitta Charters, LLC Korman Communities AKA a division Labelmaster Software Liberty Global Logistics LLC Logistics Management Resources, Inc. LTD Management Company, LLC Maersk K.K. Marriott International MCR Federal, LLC (MCR) MTC Technologies MBA | Morten Beyer & Agnew Naniq Systems, LLC NCI Information Systems, Inc. Oakwood Corporate Worldwide Patriot Contract Services, LLC Payless Car Rental Philadelphia Regional Port Authority

Port of San Diego PowerTrack, US Bank Project ACTA Quality Support, Inc. Seabridge, Inc. Sea Box, Inc. SkyLink – (USA) 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 USMMA Alumni Foundation, Inc. Utley, Inc. The Virginian Suites Veteran Enterprise Technology Services, LLC

C2 Freight Resources, Inc. Delta Air Lines, Inc. Dimensions International, Inc.,— wholly-owned subsidiary of Honeywell

Defense Transportation Journal

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SEPTEMBER 2008—Forum Issue

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

Kuehne + Nagel, Inc. Lockheed Martin Maersk Line, Limited Norfolk Southern Corporation Northrop Grumman Corporation Odyssey Logistics & Technology Corporation The Pasha Group Qualcomm Incorporated R&R Trucking Ryder System, Inc. Science Applications International Corp. (SAIC) 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 | 63

Dr. Kent N. Gourdin

Private Sector, Public Wars: Contractors in Combat—Afghanistan, Iraq, and Future Conflicts Private Sector, Public Wars: Contractors in Combat—Afghanistan, Iraq, and Future Conflicts by James Jay Carafano, (Greenwood Publishing Group, Inc., July 2008), ISBN-13: 9780275994785, Hardcover, 252 pages, $44.95.

T

he history of war can be divided into three eras that define the balance of dominant activities between the public and private sectors: from the middle ages to the early modern era, the early-modern to the modern era, and the current post-modern era. Each period is illustrated by historical vignettes. A description of the evolution of US reliance on contract support follows, together

with a look at the various types of contractors: consultants, service providers, and security firms. This book also considers legal and other constraints on the use of contractors as well as the nature of the current industry. Training and other contractual services are highlighted within the context of ongoing operations in Iraq and Afghanistan. In addition, the critical role assumed by the private sector in logistic support, which is responsible for providing food, housing, transport, and myriad infrastructure for deployed forces, and security firms, which protect high-risk persons, contract personnel, and other assets, is examined in view of traditional roles and missions performed

>> Looking FORWARD

DTJ INDEX OF ADVERTISERS

If you missed the Forum in Reno/Tahoe, the December issue of the DTJ will share a synopsis of sessions, keynote speakers, and special events. It will also feature a special contribution . . . “Joint Shipment Manager—A Joint Approach to Regional Transportation Needs” with Col (Sel) Jean Mahan, Dr. Gregory J. Grindey, and Ms. Jodi Browell.

Coming to you in December!

| UPDATE | Ken Massey Family

N

DTA would like to share the most recent update from the Ken Massey family—especially at Forum time.

Forum attendees and exhibitors will remember our Forum photographer, Ken Massey of Carden Jennings Publishing—many have posed for him in the Expo Hall or at awards ceremonies and networking events. Ken, Angela, and Sam (8), Georgia (6), and Ty (4) moved to South America shortly after the Charleston Fo-

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by the Armed Forces. The author goes on to explore the complex relations between the Departments of Defense and State as well as other Federal agencies in negotiating and managing billions of dollars in contracts. Issues related to the oversight functions of Congress and investigatory reporting by the media on the performance of firms operating in Southwest Asia and elsewhere are also covered. Finally, the author addresses a number of questions on using contractors in wartime including: how have Congress, public interest groups, and other parties dealt with the issue? How is the marketplace affecting the American way of war? What will be the impact on force structure as contractors take on traditional roles of the military? How will the growing involvement of the private sector influence such matters as the all-volunteer force and the procurement and maintenance of advanced warfighting systems? The answers presented here are both interesting and thought provoking. DTJ

rum to serve the South America Mission.

The family is now preparing for the “next step” to Bolivia for a 2-year stint. “We are heading to a truly foreign land where we will know almost no one, and few people will want to know us,” says Ken. “But the experiences will be valuable and will help instill greater courage, faith, and peace.”

NDTA members are welcome to contact Ken at: kamassey@ southamericamission.org. DTJ

SEPTEMBER 2008—Forum Issue

Agility. . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg. 8 APL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 56 ARRC . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 15 Avis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 48 Choice Hotels. . . . . . . . . . . . . . . . . . . . . pg. 26 Enterprise Rent-A-Car. . . . . . . . . . . . . .pg. 55 FedEx. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cov 4 Horizon Lines. . . . . . . . . . . . . . . . . . . . . pg. 30 InterContinental Hotels Group . . . . . . pg. 13 Kansas City Southern. . . . . . . . . . . . . . pg. 58 Landstar. . . . . . . . . . . . . . . . . . . . . . . . . . pg. 21 Lockheed Martin. . . . . . . . . . . . . . . . . . pg. 29 Maersk SeaLand. . . . . . . . . . . . . . . . . . . pg. 1 Matson Navigation. . . . . . . . . . . . . . . . pg. 23 McCollister’s Transp. Group, Inc.. . . . pg. 51 NYK Logistics. . . . . . . . . . . . . . . . . . . . . pg. 19 Pilot Air Freight. . . . . . . . . . . . . . . . . . . . pg. 2 SAIC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cov 3 T. F. Boyle Transportation. . . . . . . . . . . . pg. 6 Transportation Institute . . . . . . . . . . . . pg. 52 United Van Lines. . . . . . . . . . . . . . . . . . . Cov 2 UT Center For E.E. . . . . . . . . . . . . . . . . . pg. 28

ANSWER

Franklin Roosevelt Franklin Roosevelt, Thirty-Second President of the United States, From the Third Inaugural Address. January 20, 1941.

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Supporting warfighters’ needs. We take it personally.

SAIC is driven to protect warfighters. Our work integrating communications, command, and control systems into mine-resistant, ambush-protected vehicles keeps warfighters as connected to the force as they are protected from improvised explosive devices and other threats. We help deliver what warfighters need when they need it — a powerful combat fleet that’s almost as tough as the warfighters it serves.

For more information, visit us at www.saic.com

Energy | Environment | National Security | Health | Critical Infrastructure

© 2008 Science Applications International Corporation. All rights reserved. SAIC, the SAIC logo, and “From Science to Solutions” are trademarks or registered trademarks of Science Applications International Corporation in the United States and/or other countries.

A

We’re not in the military, but we’re proud to serve the U.S. We take our job and yours very seriously. At FedEx, you can count on us for access to networks in more than 220 countries and territories and the flexibility to handle anything that comes your way. And you can trust that there’s pride in everything we do.

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