Defense Transportation Journal

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August 2012

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PASSENGER TRAVEL UPDATE

Are We Throwing the Baby Out With the Bath Water?

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FEATURES August 2012 • Vol 68, No. 4 Publisher

Commercial Sea/Air Multimodal Operations Support to the Warfighter

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By Mr. Chris Heibel and Mr. Eric Ebeling

LTG Ken Wykle, USA (Ret.) Editor

Kent N. Gourdin Managing Editor

Sharon Lo | sharon@ndtahq.com

Passenger Travel Update Are We Throwing the Baby Out with the Bathwater?

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By Dr. G.R. “Rocky” Mobaraki, MBA, PhD

Contributing editor

Denny Edwards

Circulation Manager

Leah Ashe

Copy editor

Railroad Industry: Security and Capacity

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By Mr. Michael Breslin

Jeff Campbell Publishing Office

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

Norfolk Southern Corporation Celebrates 30 Years

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Advertising Account Manager

Jim Lindsey

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

departments A-35 News | Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

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

President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 WELCOME | Rebecca Jones. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

A-35

NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President COL Mark Victorson, USA (Ret.) VP Membership

Strengthening Retention

COL Dennis Edwards, USA (Ret.) VP Marketing | Corporate Development

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

Patty Casidy VP Finance Lee Matthews Marketing | Corporate Development Manager Leah Ashe Manager, Database Sharon Lo Manager, Meetings and Publications Jeff Campbell Manager, Chapter and Membership Support Rebecca Jones Administrative Assistant to the President Carl Wlotzko Coordinator, Banquet & Special Events For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit our Association website at www.ndtahq.com.

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters Editorial Policy The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm Dr. Kent N. Gourdin, Editor, DTJ Director of the Global Logistics & Transportation Program, College of Charleston, Charleston, SC 843-953-5327 • F 843-953-5697 gourdink@email.cofc.edu Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com

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As mentioned in previous columns, the A-35 Committee has launched an Executive Council to continue the development of our program. To allow NDTA members to get to know the Executive Council, we will begin to hear from them in this column. This edition is written by Mr. Charlie Hermosa. As the A-35 Vice Chair of Membership he is tasked in developing ways to grow our A-35 membership. Charlie’s contact information is: chermosa@tripleb.com, 510-501-0787.

A

s we reach the middle of the calendar year and look towards the next NDTA Forum & Expo in Anchorage, AK, it is important to touch on the A-35 membership program in order to lay out a few points that we will use for strengthening our retention and efforts to bring on new A-35ers. As the San Francisco/ Bay Area A-35 Chapter Representative and National A-35 Vice Chair of Membership, I have been working closely with the California Maritime Academy, and every time I stand in front of these young professionals, I think about two things: what value do I bring to them, and what value are they getting for being members of this association? It is very simple to persuade someone to join a professional group or association and pay a membership fee, but it is different when there is a clear and defined value that is associated to being a member of that specific group or association. We can all think back in our lives and remember those people who really made an impact. Whether it was a family member, a teacher, a coach or even a close friend, they all served as a mentor in one way or another. The value the NDTA brings to any

august 2012

private/public table is tremendous because it builds off the foundation of mentoring, education, personal development, professional strengthening, and networking. So how are we superimposing these values within our A-35 program?

First, we must identify all our current A-35 members and see what is driving their professional development. We must understand their needs and desires. We must identify the level of engagement they have had as members thus far. What type of education programs or professional development meetings are they interested in?

Second, we must identify the “driving force” behind a person joining as a new A-35 member. We must identify their expectations from the beginning, and that will allow us to assess our recruiting efforts.

This will easily be done by adding a simple question within the sign up process.

Finally, we must develop a structured networking program for A-35ers with support from current members of the NDTA. In one of my last meetings with the A-35ers here in the Bay Area, we discussed ways to further enhance our program and value. Some suggestions given were to have a social type event on a quarterly basis where we invite all our local A-35ers and professionals within the industry to come out to a social setting and network. This would be in addition to the normal monthly meetings where we either invite a special guest speaker or discuss upcoming fundraising events.

The NDTA A-35 Executive Council will use these actions as a baseline to ensure we develop and promote the value of this great association and the A-35 program. At the end of the day, the greatest strength that we have is our people and their global reach. As the Logistics and Transportation industry continues to change, we must ensure that all our A35ers are well positioned to continue the mission of the NDTA. DTJ

subsequent buses? In Seoul, riders can download a free app to their smart phone.

They can then punch in their stop and find out how many stops away their bus is and the time of its arrival as well as the same information on the following bus. Think how useful this knowledge could be. If you knew your bus to work was 10 minutes late, you could wait at home rather than on the curb.

Should you be facing a late ride home, you could either stay at work or make alternate arrangements. Absent such a system, passengers are left to wait and wonder. With Charleston’s sea level location, downtown flooding is common, especially when heavy rains coincide with high tide. Streets quickly become impassable and buses cannot get through, let alone cars. Dedicated bus riders such as myself can find they are, for all intents and purposes, stranded, a situation that could be prevented with better realtime information.

Intermodal freight transportation is all about smoothing the transfer of goods from one mode of transport to another. The success of the concept is proven daily and has, I would argue, made global trade as we know it, possible. Unfortunately, intermodal passenger transportation has been largely ignored in the United States. For example, seamless onward surface transportation from most major airports here is very difficult to find. Rail links connect airports like Amsterdam or Frankfurt with regional destinations, but you won’t find similar air/rail connectivity in America. Similarly, commercial buses are scarcely viewed as a viable form of intercity transportation by most of us in any case, let alone in concert with air travel. I think the value of intermodalism has been proven in the freight area; it shouldn’t be a quantum leap to apply those precepts to the movement of people as well.

One morning during my visit, my son and I were watching a formation of F-16s take off. As they were disappearing into the haze, he turned to me and said “It never

nities

I

just returned from a trip to Korea to visit my son and his family. Both he and his wife are DOD civilians working at Camp Humphries, but living just outside Osan AB where I was stationed 36 years ago. I was pleasantly surprised at how much of the place I recognized, and thoroughly enjoyed my visit with them and the grandkids, as well as my trip down memory lane. Always the transporter, I was particularly struck by how well the Koreans do public transportation which is, after all, intermodal transportation for people.

The intercity bus system was one example. You can pretty much get anywhere directly from the Incheon Airport by bus.

The ticket counter is right by baggage claim and the buses stop just outside.

Service to Songtan, which is the town just outside Osan’s main gate, runs approximately every 30 minutes and takes about 90 minutes. The buses are comfortable and the fares reasonable. What really impressed me, though, was the fact that, on the freeways that I travelled, all buses operate in the left lane. Judging by the ease with which they crossed two or three often heavily occupied traffic lanes to enter and exit the bus lane, I concluded that drivers were legally required to let them in. I didn’t see any scofflaws in other vehicles using the lane, except for one that the police subsequently pulled over! If you’ve ever experienced rush hour in Seoul, you know what tremendous value utilizing that bus lane can provide the rider.

The municipal system in Seoul was pretty impressive as well. I’ve become a frequent user of our bus service here in Charleston.

The price of gas is part of the reason, but the other is that I’ve simply gotten tired of the slog that driving to and from work has become. One thing that drives (pardon the pun) me (and other riders) crazy is wondering what to do when the bus (which runs every 30 minutes on my route) is late. When will it arrive? Is it coming at all? What about

i

N ew O s– p

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Director, Global Logistics and Transportation Program College of Charleston

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po

Dr. Kent N. Gourdin, Editor, DTJ

New Front

A Different View of Intermodal Transportation

EDITORIAL

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

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gets old,” and I couldn’t have agreed with him more. Even after being retired for more years than I was on active duty, I’m still proud of that service and my connection to the folks conducting the mission today. And speaking of life-long connections, I’ll look forward to renewing mine with many of you at this year’s Forum in Anchorage. See you in September! DTJ www.ndtahq.com | 5

PRESIDENT’S CORNER Why Anchorage Alaska?

LTG Ken Wykle, USA (Ret.) NDTA President

T

he NDTA Forum in Anchorage, Alaska is fast approaching. I sense a lot of excitement on the part of those planning to attend; however I also hear, why Alaska? I would like to reflect on why Alaska. In 2006 four cities made presentations to the NDTA site selection committee emphasizing why their particular city should be selected for the 2010 Forum.

The committee, consisting of industry representatives, and individual NDTA members, selected Anchorage. Recall in 2006 the economy was “humming along” and NDTA has many members in the Western US, including Alaska, and industry members doing business in Alaska. Additionally, for those members in the Western Pacific—Japan, Korea, Guam, Alaska is much closer than locations on the East Coast.

The US Economy began a downward spiral in 2007 and we entered a recession.

In early 2009, the NDTA Board decided to postpone the Alaska Forum until 2012 expecting the economy to have recovered from the recession, and business to be more robust. Most experts agree the recession is over and the economy is slowly recovering.

During this same period the national debt has increased significantly, and political decisions have been made that constrain the Defense Budget. The large national debt, flat defense budget, the withdrawal from Iraq, and the scheduled drawdown in Afghanistan, have impacted the defense industry. These actions, combined with the $16 dollar muffin episode at the Justice Department and the recent GSA conference scandal, have tainted the importance of meeting for training, education, sharing knowledge, and resolving issues.

So why hold the Forum in Alaska?

Members continue to tell me the Forum is the best conference they attend. We have developed a strong education and training professional program to share knowledge,

find solutions, and educate attendees on current issues, and to prepare for the new National Strategy. We have invited senior speakers from OSD and the Pacific Region to discuss the change in National Strategy.

We will have speakers discussing implementation of this new National Strategy, logistics efficiencies, and actions at the Joint Staff level to improve logistics and transportation. The Commander of USTRANSCOM and his component commanders will discuss current operations and projected future requirements. Our members in the Western US and Pacific Region have a conference in a city closer to their location. We are contractually obligated to the hotels and convention center.

For an open and frank dialogue, there will be a series of breakout sessions. During these sessions, attendees will share knowledge and learn from the subject matter experts. Breakout sessions include: 1. State Department operations/responsibilities/requirements in Iraq and after the drawdown in Afghanistan. Attendees will learn how Department of State will manage logistics into/out of Iraq.

2. Get the latest on current and future transportation service acquisition programs—DTCI follow on, USC-07, Sea/Air Multimodal, FAR contracts for TPS carriers. This is an excellent opportunity to learn directly from those responsible for these and other contracts.

3. Supply Chain Efficiencies—Reducing DOD’s costs through process changes and strengthened partnership with industry. Learn what industry and DOD are doing to reduce costs—sharing best practices between industry and government.

4. Learn what is new in Personal Property, the progress on Regionalization, and potential changes as a result of the recent Business Case Analysis.

5. As the focus of the US pivots to the Pacific, there will continue to be requirements for sustainment, exercises, and commercial operations in Africa, Asia, Latin America, and Eastern Europe.

Learn about the requirements and opportunities directly from those who are currently working in these areas.

6. Prepare for a dynamic and stimulating discussion on the role of Hybrid Air Ships for moving supplies and equipment. An Air Ship with a 66-ton payload is nearing completion and is scheduled for testing in November 2012 and to fly in early 2013. Be the first to learn about its operation and capabilities.

This is a partial listing of speakers and breakout session topics. For a complete list, visit our website www.ndtahq.com.

For those in logistics and transportation, the NDTA Forum in Anchorage Alaska is a “must attend” to learn from the leaders in military and industry, network, and share knowledge on current and future operations and opportunities.

Thank you for your great support of NDTA and for the work you do every day in support of the US Economy and our National Security. Join us in Anchorage for the 66th Annual Forum & Expo.

It will be memorable and a professionally rewarding experience. DTJ

WELC ME

NEW corporate

mem b ers as of July 6, 2012

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www.ndtahq.com | 7

Commercial Sea/Air Multimodal Operations

Support to the Warfighter

By Mr. Chris Heibel, Vice President & General Manager, Military Cargo Marketing, American Roll-on Roll-off Carrier and Mr. Eric Ebeling- President & COO, American Roll-on Roll-off Carrier “Sealift… has been responsible for delivering over 90 percent of all cargo to Afghanistan and Iraq. Because of the superb volunteer participation of commercial US-Flagged vessels in the Maritime Security Program, we did not have to activate a single ship in the Surge Fleet or the Ready Reserve Force to meet the President’s aggressive timeline for the surge and drawdown . . . a remarkable achievement.”

— General Duncan McNabb, (Former) Commander, USTRANSCOM Before the Senate Armed Services Committee April 7, 2011

O

ver the years, the DOD and USTRANSCOM have utilized the services of the Voluntary Intermodal Sealift Agreement (VISA) carriers under the Universal Services Contract (“USC-06” in its current form) to develop and implement ocean and intermodal transportation in support of the warfighter. The VISA program, together with the Maritime Security Program (MSP), ensures that DOD has access to a fleet of modern militarily-useful vessels operating in international trade, as well as the attendant intermodal systems, necessary to deliver door-to-door anywhere in the world- since 2009, the VISA carriers have delivered over 95% of all supplies to Iraq and Afghanistan. These assets constitute a “best value” to the government and the taxpayer, as it would take the government $65 billion to replicate the vessels and intermodal systems that the commercial carriers provide. The latest addition to this suite of services is sea-air multimodal delivery, often referred to simply as “multimodal”.

The DOD has used multimodal transportation and logistics solutions to deliver cargo worldwide for a number of years. Historically, multiple contracts have been utilized to support this effort to include the Universal Services Contract, the Global Freight Management (GFM) Contract, and the Theater Express (THX) Contract. Multiple contracts necessitated separate bookings for the land, sea, and air portions of a single move. Although generally operationally effective, it was not an efficient means for booking or tracking multimodal shipments.

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In 2011, USTRANSCOM modified the existing Universal Services Contract to include air transportation. For the first time, Multimodal shipments are now accomplished through a single booking utilizing the Integrated Booking System (IBS) with the ocean carrier performing as the prime contractor. As with the development of the Pakistan Ground Lines of Communication (PAK GLOC) and the Northern Distribution Network (NDN), the ocean carriers took the lead in putting together a product that provided fullspectrum logistics and delivery to door.

The earliest participants included APL, Ltd., with its air partner SkyLease; American Roll-On Roll-Off Carrier (ARC), with its air partner National Air Cargo (NAC); and Liberty Global Logistics, with its air partner UPS. There are a number of benefits that the US-flag sealift community brings to the US Military, including: • Immediate expansion of sealift capacity in an emergency • Immediate guaranteed access to a global intermodal system • National control of its own sealift and multimodal resources • Cost-effective sealift capability, in the 15 years since the MSP fleet was first established, the US Government has realized over $60 billion in capitalization and re-capitalization cost avoidance savings for modern vessels and supporting infrastructure • Availability of trained and certified US merchant mariners (two active crews per

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ship), which are available to crew government reserve vessels in time of need ARC, the largest US-flag Ro/Ro Carrier and a support leader for DOD operations, and its air partner NAC, have carried the preponderance of the rolling stock and breakbulk.

ARC is an active participant in both VISA and MSP, while NAC is a leading Civil Reserve Air Fleet (CRAF) carrier. At the core of ARC’s capability are seven unique Ro/Ro vessels each with enough capacity to carry a battalion level task force, offering significant advantages to DOD including multiple secure and adjustable decks, US crews, embarked private security teams, break-bulk below deck cargo stowage, and abundant outsized rolling stock and static cargo capacity.

National Air Cargo is a 121-certified CRAF airline with more than 50 organic and safety-audited aircraft. NAC operates a 24/7 flight operations center in Dubai, and has an extremely robust trucking capability in Afghanistan operating in all 23 zones.

Initial PoP: The ARC/NAC team was selected for the first multimodal Proof of Principle (PoP) shipment of 115 containers through SDDC’s terminal in Charleston, SC. This cargo was loaded on the ARC M/V Endurance and sailed to Jebel Ali, United

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

Maryland. Ultimately, the cargo was trucked to Fort Drum, New York for reintegration.

Accomplishing this intricate operation took more than 200 trucks, 42 assorted airframes (B-747s, IL-76s, and AN-124s), and the ARC Freedom. From start to finish the ARC/NAC team ensured full spectrum ITV, EDI, security, customs, agricultural clearance, and 100% RDD compliance.

USC-06 Multi-modal (sea-air) services Competition Sensitive - Proprietary Information

Arab Emirates. Upon arrival at the commercial marine terminal at Jebel Ali, the cargo was then transferred within the Dubai Word Center Free Trade Zone to the Al Maktoum Air Port. At Al Maktoum, NAC verified the cargo details, confirmed documentation and HAZMAT compliance, and loaded the containers on aircraft which were then flown directly to Kandahar Airfield (KAF) in Afghanistan. Ultimately, the cargo was received at KAF and delivered by truck to other Forward Operating Bases (FOBs).

In this PoP the ARC/NAC team was able to deliver all of the cargo to final destination in time to meet the Required Delivery Date (RDD), but the operation was not without its challenges. Most important was the lack of cargo data fidelity. 90% of the cargo shipped had inaccurate or incomplete cargo descriptions, dimensions, and weights. SDDC reacted well at the origin terminal, surveying and reweighing each of the containers prior to shipment. Booking data accuracy is critical for advance air load planning, as specific air frames are utilized to ensure operational efficiencies and safety.

Increasing Volumes: Multimodal volumes have increased dramatically, in large measure due to the PAK GLOC closure, and volumes will continue to grow in support of the force drawdown from Afghanistan. Cargo congestion and various cargo movement restrictions on the Northern Distribution Network (NDN) necessitate multimodal operational solutions, and redeploying units will move via air/sea for the foreseeable future.

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First Unit Move: The ARC/NAC team was awarded the 600+ piece air/sea movement of the 3rd Brigade, 10th Mountain Division in March of 2012. In this complex operation cargo was either trucked from FOBs or received at KAF. Once prepped for movement, the cargo was loaded to airframes and flown from KAF to King Hussein International Airport (KHIA) in Aqaba, Jordan.

In a recent development, most OEF multimodal cargo is flown out of Afghanistan dirty. The owning unit provides a certificate to the carrier stating that the cargo is free of chemicals, biological hazards, ammunition and assorted contraband. The carrier is responsible for cleaning both the interior and exterior of vehicles. There have been growing pains as the owning units work through compliance with requirements.

The cargo was then trucked from KHIA to the Aqaba Naval Base for wash, agricultural pre-inspection and clearance.

The cargo was trucked to the commercial marine terminal in Aqaba and loaded on the ARC M/V Freedom, which sailed to the commercial terminal in Baltimore,

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“The teamwork, flexibility, and dedication demonstrated by all was essential to ensure that the 10th Mountain Division made it home by their RDD,” said Jack Pitcher the General Manager in the Middle East for ARC. Since the modification of the USC contract to include air transport, the ARC/NAC team has moved more than 4,000 pieces of multimodal cargo through Aqaba and Jebel Ali with no significant cargo loss or damage.

In this effort our team has met or exceeded delivery requirements 98.7% of the time, and our goal is to continue to improve our performance as the process matures.

The addition of sea/air multimodal to the USC contract has been another huge success for the USTRANSCOM – VISA carrier partnership, not least through $2.9 billion in savings from air-to-surface conversions, and there have been a number of lessons learned along the way that have resulted in continuous improvement of the product. However, the contracting vehicle moving forward will change from 15 August when USTRANSCOM will execute a new sea/air multimodal contract independent of USC. Under this contract either the ocean and air carrier can perform as the prime. Although there are a number of issues of concern to potential air and ocean primes, such as insurance and fuel costs, the contracting process is moving forward, with an expected award date of 1 August and start date of 1 September. DTJ

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Passenger Travel Update

By Dr. G.R. “Rocky” Mobaraki, MBA, PhD Director, Global Government & Strategic Programs The Hertz Corporation

T

he US travel industry performance has long been a reliable indicator for the general health of our economy.

In a previous article from the Defense Transportation Journal, August 2009 issue, I discussed the correlation of the travel industry and the health of our economy. As stated in that article; “All of the players in the Passenger Travel Industry (PTI) chain are interdependent. The travel agency, airline, car rental, and hotels, along with other PTI entities impact the entire travel experience. Lower traffic for the airlines means fewer car rentals and lower hotel occupancy. The economic downturn causes cost cutting measures for organizations of all sizes, translating to lower travel across the spectrum. This domino effect validates that there is a direct correlation between travel and the health of the economy.”

An executive order was issued on November 9, 2011, restricting government spending on business travel and meetings.

This order takes a “local first” approach to meetings and increasingly limits travel to circumstances where the activity can only be performed away from the employee’s primary office. This executive order is intended to cut waste and promote efficient spending within the executive branch of the US government by requiring federal

agencies to cut 20 percent of their spending on travel and conferences. Though governmental orders to control waste and reduce cost has been music to the ears of most tax payers, we must question the ramifications of the actual mandate and the effect it may have to an already downturned economy struggling to get back on track.

Considering the executive order and the recent GSA humiliation surrounding the 2010 Western Regions Conference, we can quickly map out how this trend is having a negative impact on the travel industry. The pressure on government agencies to cut spending increased drastically in the recent months following the exposure of GSA’s excessive spending at the 2010 conference in Las Vegas. However, the poor decisionmaking by a few at the GSA during the Las Vegas conference should not diminish the value of government conferences. Roger Dow, CEO, US Travel Association says: “Unfortunately, a single instance of irresponsible decision-making has the potential to cast a negative light on the millions of men and women who work every day to make America’s meetings, conventions and events industry the best in the world. Any member of Congress who thinks this issue is about a particular destination is missing the forest for the trees. Congress should hold

Jet Fuel Prices* Per Gallon

Source: US Energy Information Administration

$3.50

$3.296

March 13

$3.00

$3.085

$3.298

March 14

March 13

$2.50 $1.853

$2.00 $1.50 $1.00

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$2.064

March 13

March 15

$1.805

March 14

$1.548

$1.170

March 14

2005

March 13

2006

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Defense Transportation Journal

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accountable those individuals who choose to flout the federal travel rules.”

For years it has been a recognized trend that many of these conferences are a bridge to innovation and improvements to our economy. It has been communications between government and industry Our policies should not be written for a few who do not follow the rules. In fact, it should be based on facts and proper analysis to consider the best options for those who follow the rules. that gave birth to many new companies addressing government needs aptly resulting in job creation.

Our policies should not be written for a few who do not follow the rules. In fact, it should be based on facts and proper analysis to consider the best options for those who follow the rules. Obviously, our system is working. Those few who did not follow policy at GSA have been identified and disciplinary actions are in place.

There are many different ways to look at this. If the government sets a precedent by penalizing the biggest convention city in the country instead of addressing the root cause of the problems, many businesses and cities will be black listed and the local economy could suffer the consequence. Today it’s Las Vegas, will Orlando be next? Do we have to meet in Timbuktu to stay focused at our business meetings?

It will take a while to actually see the overall effect of this executive order. Surely, the intent is good, as our policymakers are trying vigorously to find the right way to proceed in these uncharted waters. However, the industry should be consulted in the government’s decision prior to activating such a drastic executive order. Furthermore, what we should have had here is a

cost/benefit analysis whereby the cost of processing is weighed against the possible positive cognitive benefits. The question is: Did anyone look at the possible negative impact this executive order could have on the travel industry and the economy?

The spending cuts are expected to save taxpayers approximately $14 billion per year, which translates to one tenth of one percent of the total federal budget. Although the numbers look good by themselves, we should also look at how side effects will impact the overall economy. In light of these savings, has anyone asked simple questions that should have been answered, such as: How would this order impact the Travel industry and the long term health of:  Travel Agency industry  Airlines industry  Car Rental industry  Hotel industry  Other related industry  How would this order impact the Local, State and Federal economy  Every job loss results in less tax revenue 

In April, the Global Business Travel Association announced it was postponing its National Travel Forum conference scheduled for June 2012 in Phoenix. A formal statement cites the pullout of GSA support as a contributing factor to its decision. A full statement from GBTA Executive Director, Mike McCormick, is posted on the GBTA website at www.gbta.org. Every meeting or conference cancelled diminishes tax revenue and potential opportunities that could lead to job creation and a quicker recovery.  Would this order isolate the government and restrict interaction with the industry and limit best practices that could lead to greater savings?  Could this order translate to uniform and blind practices that would essentially “throw the baby out with the bath water?”  Who did the analysis and what was considered other than $14 billion in savings?

Charles Sadler, Executive Director/ CEO, Society of Government Meeting Professionals says: “Decades of experience demonstrate that the vast majority of government conferences

are productive and cost effective. Government travel plays a significant role in the US economy as a whole and no one will want to endure the economic hardship individuals and businesses would experience if leaders take the knee jerk approach and drastically reduce or shutdown government meetings and travel.”

The question is not how many billion dollars will we be saving—instead we should ask how many extra billion dollars will it cost us in missed opportunities, to save that $14 billion!

I do not suggest that we stop cutting waste, but there are other ways to help our economy. The deep cut approach concerning travel is alarming. In an article on February 19, in the New York Times, “Pain Without Gain”, Paul Krugman writes . . .

“The point is that we could actually do a lot to help our economies simply by reversing the destructive austerity of the last two years. That’s true even in America, which has avoided full-fledged austerity at the federal level but has seen big spending and employment cuts at the state and local level.

Remember all the fuss about whether there were enough “shovel ready” projects to make large-scale stimulus feasible? Well, never

NDTA Passenger Travel Services Committee AIRLINES

Transportation Management Services (TMS) Carol Betz, Kevin O’Conor, Bob Leitzel*

Choice Hotels International Thom Puccio Hawthorn Suites-Alexandria Stacie Liverpool Hilton Hotels Corporation Scott Lamb* Hilton Waikiki Prince Kuhio Newton Wong Hyatt Hotels & Resorts Chris Keane InterContinental HG Judy Silcox La Quinta Jake Paine, Lynn Shatterly LTD Hotel Management Eunice Gibbs Marriott International Randy Griffin Radisson – Waikiki Newton Wong Resort Quest Hawaii Kathy Ahsam Starwood Hotels Christopher Robertson Suite America Kim Dunbar Wyndham Hotel Group Denise Benyak

CAR RENTAL

PASSENGER RAIL

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

BUS

Avis/Budget Rent A Car Robert Krapf, Mike Washkevitz* Dollar-Thrifty Automotive Group Mark Cronin, Randy Tietsort Enterprise Rent-A-Car Bryan Scott Europcar Frank Langbein Fox Rent A Car Jose Giraldo Hertz, Hertz On Demand, Advantage Lori Leffler, Rocky Mobaraki* Payless Car Rental Kathy Johnson

AMTRAK TBD*

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HOTELS Best Western International Dave Brogden, Mari Ann Gray Carlson Hotels Worldwide Linda Colovos

AmeriForce Publishing Brian Dunbar OAG Worldwide Christina Kosac Runzheimer International Kraig Rodenbeck INNOVATA Paul Chrestensen, Cathi Massi, Judy Smith Northrop Grumman Rod Forry* Sabre Travel Network Jeffrey Goodell

GOVERNMENT Defense Travel Management Office (DTMO) Andrea Carlock, Dep. Chief Commercial Travel Div.; Tracey Ramsey, Chief Travel Mgmt. Branch; Howard Hicks, Team Lead

PTSC COMMITTEES & CHAIRS PTSC Committee Chair Dr. G.R. “Rocky” Mobaraki, MBA, PhD, Director, Global Gov’t & Strategic Programs, The Hertz Corporation PTSC Vice Chair & Airline Subcommittee Chair Denny Clifford, Director, Military & Gov’t Sales, Delta Airlines Car Rental Subcommittee Chair Mike Washkevich, Director, Gov’t Sales, Avis & Budget Rent A Car Hotels Subcommittee Co-Chairs Scott Lamb, Director, Gov’t Sales, Hilton Hotels Corporation Judy Silcox, Director Gov’t Sales, InterContinental Hotels Travel Agencies Subcommittee Chair TBD Travel Technology Subcommittee Chair Rod Forry*, DTS Program Manager, Northrop Grumman Bus Subcommittee Chair Bob Leitzel, GM Gov’t. Transportation Svcs., TMS Extended Stay Lodging Subcommittee Chair Rachel Tyler, Extended Stay America Passenger Rail Subcommittee Chair TBD Travel Publications & Services Subcommittee Chair Christina Kosac, Advertising & Marketing, Director, OAG

EX-OFFICIO Ken Wykle, President, NDTA Denny Edwards, VP, NDTA *Subcommittee Chairman

www.ndtahq.com | 13

mind: all the federal government needs to do to give the economy a big boost is provide aid to lower-level governments, allowing these governments to rehire the hundreds of thousands of schoolteachers they have laid off and restart the building and maintenance projects they have canceled. Look, I understand why influential people are reluctant to admit that policy ideas they thought reflected deep wisdom actually amounted to utter, destructive folly. But it’s time to put delusional beliefs about the virtues of austerity in a depressed economy behind us.”

Krugman has an interesting approach that is designed to create taxable income for the government while decreasing the unemployment number which has been one of the main causes of our stagnant economy where individuals are afraid to spend money in fear of a long lasting recession or a repeat of a depression. Again, no one in their right mind is suggesting wasteful spending ala GSA style. However, if we have the opportunity to cut the deficit by deep cuts or put people to work and reduce the deficit, we would for certain choose the latter option.

In an article, “Cutting Spending Now is the Wrong Strategy for Reducing the Fiscal Deficit,” under the economic policy research, Christian Proano writes: “It is undeniable that the US sovereign debt-to-GDP ratio should be reduced from its current level of nearly 95% over the medium-run. However, an overly hasty reversal of the US fiscal stance based primarily on government spending cuts could be counterproductive given the fragile situation of the US economy. In short, the main priority of the government should be the consolidation of the nascent economic recovery. As the Greek example shows, implementing a restrictive fiscal policy based on sharp spending cuts can turn out badly if executed while the economic recovery is still not well established. In fact, it could entail serious dangers for the United States, in social as well as economic terms. For all these reasons, a reduction in government spending as put forward by the usual fiscal hawks would not improve public finances, but would instead mainly serve their political agenda of reducing the role of the government in the US economy.”

Global Business Travel Spending Forecast

$993

Total Spending

US$ Billions

2.5%

Annual Growth

Source: World Travel & Tourism Council

Again, we need to voice our concerns through all the proper channels within the government. The policymakers should act on the rationale regarding these sharp cuts in the Travel Industry as it may have an adverse and domino effect to more than just the travel industry. The policymakers should give more thought to the consequences off their decisions. I agree with the statement by GBTA Executive Director, Mike McCormick: “. . . there is no more appropriate time for government travel professionals to learn cost cutting strategies from top corporate travel continued on page 28

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15

RAILROAD INDUSTRY SECURITY AND CAPACITY

By Mr. Michael Breslin, Department of Homeland Security – Industrial College of the Armed Forces, National Defense University

T

he September 11, 2001 attacks against the United States elicited a powerful and decisive response from its citizenry. These attacks were a direct affront to American sovereignty, a challenge to its power, security, and perceived standing in the global community. Homeland security is a complex challenge. It requires considerable funding and necessitates the collaboration of personnel across the public and private sector. Current domestic conditions, economic downturns, limited resources, and partisan politics, necessitate the application of fiscally sound practices and prudent policies in the federal governments efforts to secure the homeland. The aftermath of the September 11th attacks not only revealed the vulnerability of the US to acts of terrorism, they also provided a conduit for a public call to action.

This paper will attempt to expand the reader’s appreciation of one of the numerous homeland security challenges confronting both government and private industry, namely railroad security. Additionally, this paper will consider areas whereby various security measures may be implemented in the near term. These measures will positively impact railroad capacity with minimal negative consequence and costs to the rail industry.

For purposes of this paper, the distinction between safety and security must be stated.

Safety will be viewed in terms of occupational health and risks posed to rail employees, passengers, and the public at large. Rail transit is one of the safest forms of transportation in the US. The number of fatalities caused by rail transportation accidents when compared with other modes of transportation is negligible. Figure 1 measuring rail transit safety from 1990-20071 displays the industry’s historical safety record.

Security will be used in the context of external threats to rail industry infrastructure, systems, equipment, and the general public. These threats are posed by terrorist organizations, lone actors, self radicalized individuals, ethnic, and religious militant groups. The goals of these security threats are to cause destruction, mass casualties, and 16 |

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Figure 1 Rail Transit Safety, 1990-2007 (Fatalities per 100 Million Passengers) Source: US DOT, Federal Transit Administration, Transit Safety and Security Statistics

promotion of fear amongst the American public. This paper will recommend ways to enhance freight and passenger rail security at minimal financial cost and burden on industry. These steps will have a positive impact on rail passenger capacity through improved security and increased public confidence in rail transportation. The following areas of this industry will be explored: 1. Description of the industry, current conditions, and outlook.

2. Security challenges, threats, options and role of government.

3. Recommendations.

Rail Transportation Industry, Its Current Conditions and Outlook

The rail industry encompasses large, regional, and local railroads which transport freight and passengers across the nation. The rail industry is predominantly a state and locally run activity. The Federal government’s role over the industry is limited to regulation and issuance of grants. For instance in FY 2010, the Department of Homeland Security distributed $15,000,000 to state and local governments as part of its Freight Rail Security Grant Program.2 Rail industry’s main activities include operation of line-haul and short line railroads. The industry is dominated by private ownership of both rail infrastructure and cars. The four companies that control the $68 billion rail transportation market3 are represented by the below chart:

august 2012

Company Union Pacific Corporation Burlington Northern Santa Fe Corporation CSX Corporation Norfolk Southern Corporation

Market Share 25.0% 24.6% 15.3% 14.2%

After a prolonged period of financial decline, rail transport inefficiencies, and dwindling capacity caused in part by overregulation, the rail industry has made a pronounced comeback of late. Due in large part to the passage of the Staggers Rail Act of 1980, the industry was freed from the constraints of overly restrictive government regulations of its activities. Deregulation gave the railroad companies the ability to establish equitable rates, enter into customer negotiations, and compete for market share. The industry has consolidated in the past ten years and achieved higher profits due to increased efficiencies and higher fuel prices. This has helped make rail transit more affordable and appealing.4 The rail industry is crucial to economic and national security interests. The industry is a key driver to America’s economic prosperity. It is a cost-effective means to transport people, goods, raw materials, and equipment. The coal used to generate electricity is the most frequent freight cargo.

The chart above provides a visual demon-

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O F

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E X P E R T I S E

Products and services segmentation (2010)

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stration of the rail industry transportation of products and services, each of which are instrumental to the nation’s economy.5 A terrorist attack on either a US freight or passenger rail line would have a severe impact on the industry and the economy, regardless of the level of destruction and casualties inflicted. The future of the railroad industry is positive with revenue growth projected “at an average annual rate of 3.0% to reach $78.75 billion over the next five years to 2015.”6 This growth has been fueled by private sector investment in railroad infrastructure and equipment. Contributing to this optimistic forecast is the increase in demand brought upon by rising fuel prices. The increased demand will however, strain existing rail capacity.

The link between a robust rail industry and a healthy US economy is supported by the following Association of American Railroads (AAR) graph which measures US Gross Domestic Product (GDP) against US rail traffic from 2000 to 2010.7 The relationship of the railroad industry to indicators of the nation’s economic

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health is augmented by its significance to the US national security. The railroad industry has a long relationship with the US military, dating back to the Civil War. During this period, railroads were an essential mode of troop and equipment transport.

Railroads provided the Union Army a logistical advantage over the Confederacy given the north’s superior rail network. Today, the rail industry provides the US armed services an efficient way to transport equipment, vehicles, and weapons across country. Railroads provide the linkage between military bases and ports, necessary for the movement of freight to foreign locations. The Department of Transportation and Department of Defense have identified 32,000 miles of rail lines deemed to have strategic importance to national defense. These rail lines, known as the Strategic Rail Corridor Network (STRACNET) demonstrate another example of the railroad industry’s significance to US national security.8 Security Challenges, Threats, Options and Role of Government

Security is an essential component in America’s ability to compete globally. The US is an open society and requires that security be viewed as both a public and private sector responsibility. The strategy of the railroad industry is to increase its profits by increased capacity, while the government must protect its citizenry and establish conditions which allow American industry to compete. The proper balance between public safety and capitalism is as difficult as it is necessary.

august 2012

The railroad industry is confronted with the challenge of protecting its infrastructure, employees, customers, and public from external security threats. In collaboration with government, this effort must be a coordinated approach which accounts for performance and cost effectiveness. The appropriate and deliberate application of security measures can reduce the likelihood of an attack. Certain measures which will be outlined in this paper, can exploit security benefits while not arbitrarily disrupting public travel, individual rights, and commerce activities.

The strengthening of homeland security has resulted in obligatory trade-offs between resources and risk. The implementation of increased security measures towards the nation’s aviation sector has exposed the rail industry’s weakness. The American rail transportation mode is designed and operated to allow for accessibility in the most efficient manner possible. This combination exposes the rail industry’s susceptibility to security violations. Improvised Explosive Devices pose a major threat to this industry given the ease with which one may be assembled and concealed on a train.

The American passenger rail system to include metro transit systems is vulnerable to terrorist attacks. This susceptibility of rail lines is evidenced by previous terrorist bombings of passenger trains in Europe.9 Railroad security is not a national priority. Nor does it play a major role in the national dialogue over taxpayer funding.

The railroad industry is confronted with the obstacle of garnering the support of not only the public but of its elected officials. The discrepancy between the threat vulnerability and government support may be evaluated by the fact that in FY 2009, the Executive Branch requested $37 million for rail security as opposed to $6 billion for aviation security.10 The prevailing threat assessments of the freight and passenger rail industry are considered low and medium respectively. However, the fact that railroads present a target of opportunity for terrorist, organized criminal enterprises, and individuals disposed to inflict havoc must not be trivialized.

This vulnerability is derived from the vast amount of rail cars, trailers, tracks, employees, and passengers, each of which interact and intersect on a daily basis with all other transportation modes. The sheer volume and openness of the rail industry

makes its very protection from all potential acts of terrorism, cyber attacks, vandalism, and other forms of malice virtually impossible. There exists an inherent risk in the industry itself. The scope and reach of this industry is displayed by this US freight and passenger railroad sector personnel and capital resources chart.11 Freight Rail 565 railroads 139,679 miles of track 1.5M rail cars 168,891 employees 7,000 route-miles

Passenger Rail 20 rail systems 1.7M passengers daily 25+ Cities

The interdependency between the freight and passenger rail industry infrastructure increases the negative impact an attack on one mode would have on the other.

The rail industry has several options at its disposal to combat the previously outlined threats. It is currently mandated to implement the unfunded security and safety measure known as Positive Train Control (PTC) at costs estimated in excess of $11 billion.

The industry also has the option to upgrade, employ, and integrate its intelligent railway systems to best serve its comprehensive security and operational needs. This option would employ readily available technology with proven success records in other industries.12 Industry may also continue its current security practices given the lack of specific threat-based intelligence aimed at rail lines. This reactive stance, although advantageous to rail transportation in terms of fixed costs, is not reflective of the complex environment and asymmetrical threats currently applicable to this industry.

It is impossible to completely protect the rail industry from the myriad of threats it currently faces. There exist many gaps between the security of the industry and its need for accessibility and effectiveness to operate and compete in a free society. Terrorists and criminal organizations possess the patience, agility, and capability to exploit these gaps. The rail industry has the option to choose to a large degree, the manner by which it will confront these threats. However, the fact that these risks must be mitigated is not an option.

The Federal government has a limited role in rail transit operations, as it is predominantly a state and locally-controlled industry. However, this does not imply a

diminished responsibility to provide security for the American public. Government should address the present threats and dangers confronting the rail industry. It must also engage in strategic deliberation as to the type and mitigation of the next major security threat to the industry. The government fulfills many essential roles in ensuring the security of the rail industry.

Its responsibility is manifested in several ways ranging from industry regulation to the issuance of grants aimed at enhancing state level expertise and capacity in the security and emergency response fields.

There is a need for uniformity in the countless security regulations of the rail industry. Many of these regulations are overly cumbersome, costly, and redundant. There are scores of security regulations issued by several federal agencies with only slight nuances between them. However minimal these differences are, the compliance costs incurred by industry are substantial. These additional costs may adversely impact the firm’s ability to compete and are reflected in diminished stockholder value. A government review and consolidation of its security regulations would achieve cost savings and increased efficiencies. The money allocated by industry towards unnecessary and redundant security regulations could be more wisely spent on capital improvements which would increase capacity, efficiency, and market value.

Recommendations

The Federal government should push the “reset button” on its strategic approach to rail security to enhance security and capacity at minimal financial cost. The adoption of a three-point revised approach to rail security should be considered. This strategy includes the increase of public-private partnerships (PPPs), increased interagency collaboration, and public awareness.

Diminished financial resources and growing demand for low cost, safe, and efficient rail transportation require the need for increased PPPs. A balanced and reasonable approach to security is in the best interest of the rail industry. The application of security measures in a top-down and bottom-up manner would reap the benefits from multi perspectives and expertise.

PPPs enable government and industry to contribute resources and ideas toward critical security issues, thereby enabling cost savings and increased efficiencies.

Public and private sector efforts to remedy rail security problems have assumed many forms, and achieved varying degrees of failure and success. The partnership model between the Transportation Security Administration (TSA) and the rail industry should be applied across all levels of government.

TSA has successfully partnered with the rail industry to measure and reduce risk in a cost effective and flexible manner. Additionally, a concerted effort should be made to improve the ability and willingness to share information of a security nature with industry in an effective and timely manner. The honest, regular engagement and proactive approach between the public and private sector will help eliminate obstacles at little cost.

Uniformed police–passenger–partnership agreements should be implemented between the rail industry and police departments across the nation. In exchange for a substantially reduced train ticket, an off-duty uniformed police officer would be afforded the opportunity to travel on passenger rail to a desired location. This arrangement would benefit the officer who could pay regular rail rates for his/her family while providing the industry a valuable service at a reduced price. The presence of uniformed police would raise public confidence and serve as a deterrent to those intent on causing harm to the rail industry.

Interagency coordination is a key consideration to overcome security risks. Joint education and cross-training initiatives across the public and private sector will help reduce barriers and build trust among stakeholders. The clarification of objectives, definitions, and rules of engagement at the strategic level of interagency coordination will reduce misunderstanding and conflict.

This will foster familiarity among players, less confusion as to their responsibilities, and provide a seamless transition from training to real world application. Flexibility and collaboration across the realms of interagency, foreign, and civilian environments will positively influence short and long-term success of security measures.

Consensus must be sought with private industry in seeking measures that are reliable and cost effective. The Federal government will benefit from the many initiatives currently in place at the state and local level. Rail security task forces can be established at minimal cost by their inclucontinued on page 28

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Norfolk Southern Corporation

Celebrates 30 Years

T

his year, Norfolk Southern Corporation is celebrating its 30th anniversary by painting 20 new locomotives in commemorative schemes of some of its most prominent predecessor railroads. It’s a flashback to the railroad’s rich history at a time when Norfolk Southern couldn’t be more focused on looking ahead to a promising future.

The company’s heritage is tied closely to support for the military and national defense. Norfolk Southern’s earliest predecessor, the South Carolina Canal and Rail Road, moved the first recorded troop deployment by rail to a war zone, transporting soldiers and Marines from Charleston, SC to Hamburg, NY in 1836.

Some 176 years later, the railroad today continues to serve the transportation needs of the nation’s armed forces.

Norfolk Southern has shipped more than 50,000 Humvees through its terminal in Elkhart, IN. Many were hauled to a US military port in Charleston and some were sent to Norfolk, VA, where they were transported by shipping line partners to Iraq and Afghanistan. Norfolk Southern serves the 3rd Infantry Division in Fort Benning, GA, as well as the Defense Logistics Agency Depot in Anniston, AL.

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The military was able to access the efficiencies and capacity of the US rail network to support the conflicts in Afghanistan and Iraq simultaneously. Norfolk Southern’s rail infrastructure is in excellent condition and has the capacity to respond to the needs of the military now and into the future.

Looking to the future, Norfolk Southern is one of the nation’s most militaryfriendly employers and has made a concerted effort to hire veterans, valued for their work ethic and commitment to safety and teamwork.

“At Norfolk Southern, we are investing in our future to grow our business. Much of our investments support growth for domestic intermodal traffic,” said NS Vice President Intermodal and Automotive Marketing, Mike McClellan.

The Thoroughbred’s largest expansion initiative is the $2.5 billion Crescent Corridor. A public-private partnership supported by state and federal dollars along with Norfolk Southern’s biggest-ever project investment, the Crescent Corridor is an intermodal rail network stretching from New Jersey to Memphis and New Orleans.

Rail is the most efficient way to move freight long distances. That’s why inter-

august 2012

modal transportation, which takes advantage of rail’s fuel efficiencies and clean-air benefits and truck’s door-to-door delivery, has been among Norfolk Southern’s fastest growing business. In fact, Norfolk Southern’s biggest intermodal customers are trucking companies that benefit from the economies of rail for the long-haul portion of their shipments.

Norfolk Southern has several ongoing corridor projects, all part of an overall strategy to expand capacity for intermodal operations and prepare for a future that depends more than ever on rail freight transportation. A primary thrust is to persuade shippers to use rail instead of trucks to move freight between the Southeast and mid-Atlantic consumer markets.

Norfolk Southern’s corridor strategy emphasizes a commitment to a future that converts crowded, unsafe roads, polluted air and excess fuel consumption to manageable highways, cleaner air, and responsible natural resource use—all while supporting economic growth.

The Crescent Corridor will complete a 2,500-mile rail network from New Jersey to Louisiana, which parallels major interstate highways, including I-20, I-40, I-59, I-75, I-76, I-77, I-78, I-81, I-85, and I-95.

“The great thing about this corridor is that it addresses the last major freight flow in the nation where intermodal is not making significant headway,” said Group Vice President Intermodal Pricing Development, Jim Bolander. “The corridor is at

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the real epicenter of congestion, especially I-81 and I-40, where highways are handling three to four times the trucks they’re designed for. This is a big opportunity for converting freight from truck to rail.”

The Crescent Corridor will be the nation’s most direct intermodal rail route between the Northeast and the South. The 1999 acquisition of Northeast-based Conrail enabled the Crescent Corridor concept.

“It’s a huge planning exercise for our intermodal strategy to put all the pieces together in terms of real estate, terminals and track work.” said McClellan.

Taking lessons from the company’s Heartland Corridor, which was complet-

its network. Much of this capital is being invested in the Crescent Corridor.

The company’s investment, coupled with public funding, generates public benefits that have a major impact on the economy. In terms of job creation, the Crescent Corridor is a 13-state economic engine that will create 73,000 new jobs by 2030—47,000 of them by 2020.

“Norfolk Southern’s Crescent Corridor program comes at a critical time for our nation’s economy, environment, and transportation infrastructure,” said Bolander. “The Crescent Corridor will stimulate job growth, economic development, and local tax revenues, while delivering

ed in 2010 and eliminated more than 300 miles of travel between the Port of Virginia and the Midwest, the Crescent Corridor is another model of what can happen when private and public sectors invest together for a win-win situation.

The Crescent Corridor positions Norfolk Southern for future growth because currently, only about 5 percent of truckload freight moves by rail in the Crescent Corridor. To grow that percentage, Norfolk Southern must expand its capacity to handle more traffic.

For Norfolk Southern, maintaining and expanding the rail network to handle expected capacity growth takes a significant amount of capital investment. The company’s 2012 capital budget is $2.4 billon, which encompasses track maintenance, new locomotives, and opening terminals. Investing to improve service sets the stage for continued success in terms of growth for the company and the country’s economic prosperity. Last year, Norfolk Southern spent $1.7 billion on improving

substantial public benefits for communities and shippers.”

A benefit cost-analysis by Cambridge Systematics estimates that at full operation, the Crescent Corridor will benefit the public saving $1.5 billion annually.

That translates to about $543 million on shipping savings (with 22 million hours of travel time saved), $146 million in safety savings (with fewer accidents and injuries), $147 million in sustainability savings (with 162 million gallons of fuel saved, and 1.8 million tons of carbon dioxide eliminated), and $261 million in highway maintenance savings.

Much of the job creation will come from new or expanded intermodal facilities that are part of the Crescent Corridor. Intermodal facilities are to railroads as hubs are to airlines – they help get the cargo to the right place at the right time.

While improved transit times are key to boosting customer service, the planned intermodal terminals are essential for adding freight capacity.

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august 2012

“With every new terminal and with every new industry we help locate or expand, there’s the potential for new jobs,” said Bolander.

Four new intermodal facilities that are part of the Crescent Corridor project are underway in Birmingham, AL, Memphis, TN, and Greencastle and Harrisburg, PA. These first four terminals are currently under construction and are the cornerstones of Crescent Corridor’s success. A fifth terminal, in Mechanicville, NY, is nearing completion through a partnership with Pan Am Railways which will provide freight services from Mechanicville to Ayer, MA. Ground was broken this year on yet another terminal at Charlotte, NC. The current facility in Charlotte will reach capacity by 2015. The new facility, which is designed to handle 200,000 lifts per year, will replace Norfolk Southern’s existing 40-acre intermodal facility in downtown Charlotte, which can’t be expanded. The 200-acre terminal will handle anticipated intermodal traffic growth and is slated for completion in late 2013.

The Crescent Corridor terminals are the centerpiece of the public-private partnership. The terminals in Tennessee and Alabama each received $52.5 million from the federal Transportation Investment Generating Economic Recovery (TIGER) fund—the largest single award nationwide under the TIGER grant program. This funding demonstrates that public officials see rail as a solution to the nation’s transportation dilemma.

As the new terminals open, Norfolk Southern plans to ramp up traffic volume over several years, with 2007 as the baseline year to measure growth. In the first half of 2010, Norfolk Southern moved 94,000 revenue loads and empties over the corridor, a 19 percent increase yearover-year compared with 2007. Norfolk Southern expects that growth to continue as shippers looking for more efficient and economical transportation continue to choose rail over trucks.

Norfolk Southern also sees the Crescent Corridor as an important solution for providing efficiency and value to the Department of Defense.

Norfolk Southern is prepared to handle an increase in traffic in freight rail across the board, as customers realize the efficiency and savings of converting from all highway to intermodal rail. DTJ

www.ndtahq.com | 23

Benefits— If You Paid for a Dozen Eggs Don’t Settle for 6!

COL Denny Edwards, USA (Ret.)

E

veryone these days seems to be talking about benefits. Benefits being cut, benefits being changed, benefits costing more, benefits being eliminated.

It reminded me that for some time now I have intended to write about NDTA’s Corporate Membership Benefits. Here is a fact: current NDTA Corporate members receive more than 25 distinct benefits for their yearly dues. Now here is an alarming fact about those benefits: not one company on NDTA’s current Corporate Membership Roster consistently takes advantage of (actually uses), all of its benefits! In fact, even more surprising is that over 50% of companies only use these benefits once or twice a year, if at all.

In these times of down-sized benefit packages or even eliminated benefits, NDTA Corporate members have actually received additional benefits over the last few years. If you are the company official signing the checks, you might want to ask if your company is maximizing its opportunities with NDTA. None of us would go to the store and pay for a dozen eggs, and then be content to find only six in the carton! Or, to put it in transportation parlance; we would be outraged if we paid for four tires, and only received three!

Here’s a brief review of current key NDTA Corporate Benefits. Let’s start with

the most obvious. Each NDTA Corporate Membership comes with 8-49 complimentary individual memberships (depending on level of membership). Our records show that over half of the companies have not distributed these individual memberships throughout their companies.

Another golden opportunity that is being missed by many corporate members, is sending Press Releases to NDTA for publication in the Defense Transportation Journal, the NDTA Gram, and our social media platforms. Companies could be getting brand visibility, and “good press” nearly every month, if they would take five minutes to put NDTA on their distribution list.

And while we’re talking about NDTA media resources: hardly a month goes by that our DTJ Editor is not looking for good feature articles, and educational material. Yet, we can count on one hand the number of companies that have authored articles. They are passing up brand recognition from an audience of 8,500 logistics, transportation, travel, and supply chain professionals world-wide, that is being offered to them as an included benefit—they have already paid for it in their yearly dues.

Another often overlooked benefit is the ability to expand your company’s influence by being active at the Chapter level. Many members concentrate on the Forum only,

but pass up the chance to be active at the Chapter level. Here’s what one member does to optimize that opportunity with our 65 chapters worldwide. It’s called the “3 Overlay Approach”. First, spread out a map of the US and circle major military and government locations, i.e. Washington, DC, Norfolk, San Antonio, San Diego, Denver, etc.; second, circle all the cities with NDTA Chapters (see the latest Almanac); and third, circle your companies major locations. Where all three circle coincide—that’s a city where you should allocate one or more of the company’s individual memberships, and encourage those members to get involved with the local chapter. They should volunteer to become a Chapter Officer; serve on committees, and get involved with chapter activities that bring together military, government and industry personnel. That is where key networking opportunities are to be found.

These are just some of the most obvious brand recognition opportunities that are being passed up by our Corporate Members. The full list is long and also includes exhibiting, sponsoring, speaking at Forums, etc. Every company should take advantage of these benefits. You can find the entire list on our website: www.ndtahq. com. Or, you can contact Lee Matthews, our Manager of Corporate Development at 703-751-5011 or lee@ndtahq.com. He can review more than 25 specific benefits that companies should take advantage of to optimize their NDTA membership.

Bottom line: use all 12 eggs—you’ve already paid for them!! DTJ

Get the Most Bang for your Corporate Membership Buck!

1

2

3

4

5

Participate on NDTA NaParticipate on NDTA tional Committees and SubNational Committees committees.

This will elevate andpresence Subcommittees. your within the This will and elevate your organization industry, presence within the and provide the opportunitiesorganization to build relationships and with key industry industry, andplayers. provide

Become active in NDTA Become active in chapters. Take advantage NDTA chapters. Take of the individual memberadvantage of the ships that come with your individual memberships level, use themwith withinyour your that come organization for strategic level, use them within participation.

Encouragefor your organization your colleagues to become strategic participation. involved on chapter commitEncourage your tees for the same reasons. colleagues to become

Be visible at the NDTA Be visible at the NDTA Forum & Expo, SDDC Forum & Expo, SDDC Symposium & NDTA Expo, Symposium & NDTA as well as other annual Expo, as well as events, exhibiting and otherbyannual events, sponsoring. by exhibiting and

Submit press releases Submit press releases about your company for about your company publication in our magazine, for publishing in our the Defense Transportation magazine, the Defense Journal (DTJ), in ourJournal Transportation newsletter, NDTA Gram, (DTJ), andthethe monthly and/or on our website. e-newsletter, the NDTA

Submit articles for Submit articles for publication in the DTJ publication in the DTJ magazine, a scholarly piece magazine, a scholarly that maybe addresses how piece that maybe to improve transportation addresses how to processes. improve the processes.

the opportunities to build relationships involved on chapter with key industry committees for the players.

24 | Defense Transportation Journal | august 2012 same reasons.

sponsoring.

Gram.

Brawn.

Brass.

Different needs. Different solutions.

Whether you’re fresh out of boot camp or a high-ranking officer, United offers you a unique range of moving solutions, from do-it-yourself to full-service moving and storage. For professional, efficient and flexible relocation, count on United. To learn more, call United at 800-283-5728 or go to unitedvanlines.com/DTJ. There’s moving. And there’s moving United.

Global Services Affiliate

www.ndtahq.com | 25

HONOR ROLL

OF

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

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

CRST International, Inc. CSC CWT SatoTravel DAMCO

REGIONAL PATRONS

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

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

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

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

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

Colorado Technical Library EADS North America Enterprise Holdings Erudite Company Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Federal IT Consulting (FEDITC), LLC FlightWorks FMN Logistics Fox Rent A Car Garner Transportation Group Great American Lines, Inc. Green Valley Transportation Corp.

Guard Transport, Inc. Hanjin Intermodal America, Inc. Hawaii Air Cargo, Inc. Holiday Inn VA Beach – Norfolk Hotel & Conference Center HudsonMann, Inc. Hyatt Hotels and Resorts IdenTrust, Inc. Image Branding Group Innovative Green Solutions JAS Forwarding K & S Trucking, LLC Kalitta Charters, LLC LMJ International Logistics, LLC LTD Hospitality Group

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

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

AAT Carriers, Inc. Ace Doran Hauling & Rigging Acme Truck Line, Inc. AFC Worldwide Express/R+L Global Services Agile Defense, Inc. AKA a division of Korman Communities Alaska Marine Lines Al-Morrell Development/Morrell Int’l.

Alaska West Express American Moving & Storage Assn.

American Trucking Associations Association of American Railroads ATS Specialized, Inc. Avis Budget Group Benchmarking Partners Blkbird, Inc. C5T Corporation Cargotec USA, Inc. The Cartwright Companies Cavalier Logistics Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals, Inc. Chapman Freeborn Airchartering Chassis King C.L. Services, Inc. 26 | Defense Transportation Journal |

august 2012

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

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

KGL Holding Lockheed Martin

CH

AN’S CIRCLE RM P AI

S LU

N’S CIR RMA CL AI E H C

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

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

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

www.ndtahq.com | 27

Kent Gourdin

Humanitarian Logistics: Meeting the Challenge of Preparing for and Responding to Disasters Humanitarian Logistics: Meeting the Challenge of Preparing for and Responding to Disasters, by Martin Christopher and Peter Tathem. Published by Kogan Page, Ltd., May 2011, ISBN-13: 9780749462468, Paperback, 298 pages, $70.00.

I

n 2007, there were 34 armed conflicts worldwide. That same year, a total of 414 natural disasters affected 211 million people. Humanitarian Logistics examines the challenges facing those whose role it is to organize and distribute resources in difficult situations. This multi-contributor volume includes insights from some of the world’s leading experts in disaster relief. It examines key issues including warehousing, procurement, and funding. With

particular focus on pre-disaster preparation rather than post-disaster assistance, Humanitarian Logistics provides current thinking as well as best practice for those who need to understand the many challenges and the ways to respond effectively.

This unusual aspect of logistics is often overlooked by the popular literature. I’ve often marveled at how such logistics support is marshaled and implemented without the sophisticated command and control structure that exists in the DOD. Indeed there are notable examples of past disasters where such support did not materialize in a timely fashion, and the hardships that resulted from that systemic failure. This book is an interesting look at what must occur to prevent similar missteps in the future. DTJ

continued from page 19

sion in the existing nationwide homeland security forums. This regional cost effective measure would leverage interagency collaboration and capacity.

My recommendations for improved rail security require public and private initiative.

Extremists and terrorists are an unconventional enemy with diffused sources of power.

A certain level of risk of attack to the US will always be present and should be communicated to the public. Policymakers should fully engage the public to identify potential security hazards to the rail industry. The implementation of community awareness programs aimed at rail security issues will utilize the collective alertness and observations of local citizens at reduced costs.

Substantial amounts of resources have been applied towards homeland security.

The return on this investment and often ill-applied initiatives is debatable. What is not open to debate is the importance for a renewed approach to rail security. It is in America’s national interest to do so.

The previously listed measures will positively impact rail passenger capacity through improved security, responsible financial stewardship, and increased public confidence in the safety and security of rail transportation. DTJ 28 |

Defense Transportation Journal

|

1 Congressional Research Service (CRS), Report R40688, “The Federal Role in Rail Transit Safety” by David Randall Peterman and William J. Mallett, July 6, 2009. CRS 7-5700, www.crs.gov.

2 United States Department of Homeland Security, “FY 2010 Homeland Security Grant Program Overview” http://www.dhs.gov/xlibrary/assets/grant-programoverview-fy2010.pdf. Accessed 3/20/2011.

3 Culbert, Kevin. IBIS World Industry Report 48211, Rail Transportation in the US, December 2010. http://ibisworld.com/industry/default.aspx Accessed 2/23/2011.

4 Congressional Research Service (CRS), Report RL34117, “Railroad Access and Competition Issues” by John Frittelli, January 29, 2010. CRS 7-5700, www.crs.gov 5 Culbert, Kevin. IBIS World Industry Report 48211, Rail Transportation in the US, December 2010. http://ibisworld.com/industry/default.aspx Accessed 2/23/2011.

6 Ibid.

7 Association of American Railroads, Washington, DC “The US Freight Railroad Industry” Presentation for the Industrial College of the Armed Forces, February 11, 2011.

8 United States Department of Transportation, Federal Railroad Administration, Presentation for the Industrial College of the Armed Forces, January 21, 2011.

9 Congressional Research Service (CRS), Report RL33512, “Transportation Security: Issues for the 111th Congress” by David Randall Peterman, Bart Elias, and John Frittelli, February 1, 2011. CRS 7-5700, www.crs.gov 10 Waugh, W. 2009. Assessing the Risk to Rail and Transit Systems. Public Manager 37, no. 4, (December 1): 7176 http://ezproxy6.ndu.edu/login?url=http://proquest. umi.com/pqdweb?did=1642648611&Fmt=3&clientid=3 9217RQT=309&VName=PQD Accessed 3/2/2011.

11 United States Federal Railroad Administration, “Preliminary National Rail Plan” October 2009.

12 Ditmeyer, Steven R. “Network-Centric Railway Operations Utilizing Intelligent Railway Systems” Journal of Transportation Law, Logistics and Policy, Third Quarter 2010, Volume 77, Number 3.

august 2012

| welcome | Rebecca Jones NDTA is pleased to welcome Rebecca Jones to its headquarters staff as the Administrative Assistant to the President. Rebecca joins NDTA after working in some of the top law firms in Washington, DC. A native Washingtonian, Rebecca grew up in Arlington, VA and currently resides in Woodbridge, VA with her husband and two kids. In her new position, Rebecca will manage the NDTA headquarters calendar and travel, as well as provide support for the Board of Directors and Executive-level functions. Rebecca looks forward to meeting everyone this September in Anchorage at the NDTA Forum and Expo! continued from page 14

managers, hear from business and academic leaders, build key relationships with industry suppliers, and reinforce ethical behavior standards.”

There are no free lunches and someone will have to pick up the tab. Unfortunately, the current travel restrictions are destined to cause less cooperation between the private sector and the government.

This executive order may further slow the adaptation of best practices and the resultant progress and prosperity we seek. DTJ The next Passenger Travel Services Committee (PTSC) meeting will take place in conjunction with the NDTA Forum. Please Join us this September in Anchorage, Alaska for the 66th Annual NDTA Forum and Expo and plan to attend the PTSC Meeting—registration is open now! www.ndtahq.com/forum.htm

DTJ Index of Advertisers APL..............................................................................C3 ARC ...............................................................................9 Budget .......................................................................14 Bennett International Group................................... 23 Boyle Transportation.................................................. 6 Farrell Lines............................................................... 21 FedEx...........................................................................C4 IHG ..............................................................................15 Landstar......................................................................11 McLane Advanced Technologies........................... 17 Maersk Line, Limited..................................................1 Mayflower ...................................................................2 SAIC............................................................................C2 United .........................................................................25

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