Florida Truck News | Q3 2015 by Florida Truck News

Quarter 3 ¡ 2015

The Official Publication of the Florida Trucking Association, Inc.

ENGINEER TO EVANGELIST Meet FTA’s New Chair, Denny Ross

ALSO INSIDE » Florida Rock & Tank Lines » Autonomous Vehicle Technology » State of the Association

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contents Promoting safety and the trucking industry’s image are at the top of his priority list

Self-Driving Vehicles: Are We Ready?

Substantial change is on the horizon in the form of autonomous vehicle technologies

Articles

CARRIER HIGHLIGHT

Florida Rock & Tank Lines

The multi-safety-award-winning Floridabased tanker giant is well positioned for future growth after its recent spin-off

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SAFETY

Safety First

Key FMCSA rulemakings intended to help advance commercial vehicle safety mandate

Newly-elected Board of Directors and Committees

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Meet the FTA Council of Delegates

Supplier Spotlight—Q&A

Upcoming Events New FTA Members

CORRECTION In the Quarter 2 2015 issue of Florida Truck News, the cover story about the Florida Road Team contained an error. Please note that Philip Allender works at FedEx Freight, not at Walmart as the article stated.

FTA ANNUAL CONFERENCE

The State of the Association An excerpt from Ken Armstrong’s Annual Conference speech

Regular Sections Message from the President & CEO

COVER PHOTO: RYAN KETTERMAN TOP PHOTO: HENRYK SADURA/SHUTTERSTOCK.COM

FEATURES Meet FTA’s New Chair, Denny Ross

Volume 68, Issue 3 Q3 2015

FTA Annual Conference Photos

ON THE COVER

Denny Ross, owner of Kenworth of Jacksonville, is the new FTA chair. Learn about Denny’s career in trucking and how he went from being convinced to attend an FTA lunch to the helm of the association. To start reading, flip to page 8. FLTrucking.org | Q3 2015 | Florida Truck News

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FROM THE PRESIDENT AND CEO

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KENNETH S. ARMSTRONG, PH.D. PRESIDENT AND CEO, FLORIDA TRUCKING ASSOCIATION

VOLUME 68, NUMBER 3 • Q3 2015 Published for:

350 East College Ave. Tallahassee, FL 32301-1565 President and CEO, Kenneth S. Armstrong ken@FLTrucking.org Vice-President, Tisha Keller tisha@FLTrucking.org Director of Operations, Angela Cundiff angela@FLTrucking.org Graduate Assistant, Marcela Romero marcela@FLTrucking.org Published by:

140 Broadway, 46th Floor New York, NY 10005 Toll-free: 866-953-2189 Toll-free Fax: 877-565-8557 President, Jeff Lester Vice President & Publisher, Sean Davis Business Development, Jeff Wall EDITORIAL Editorial Director, Jill Harris ADVERTISING Book Leader: Colleen McDonald Quinn Bogusky Ken Hodgert Louise Peterson

Trucking … Safer Every Day

TA’s Annual Conference was notable for many activities and sessions. I hope you were one in the record crowd who attended. Later in this issue, you will find a story summarizing the State of the Association address that I had the honor to deliver to the first meeting of FTA’s Council of Delegates. Please take time to look through the article—it’s full of important numbers on finances and membership. One major initiative was announced at the Annual Conference: Trucking … Safer

Every Day. The plan is to build an FTA program that will “help and highlight.” We can help our companies operate more safely with a variety of advanced tools and techniques. And we can highlight the tremendous lengths to which our companies go in order to have the safest vehicles and safest drivers on the road. We are just getting started on this new program, so keep an eye out for a series of announcements about what you can do in the future to make “Trucking … Safer Every Day.”

We can highlight the tremendous lengths to which our companies go in order to have the safest vehicles and safest drivers on the road.

© 2015 Florida Trucking Association. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the FTA. For subscription information, please contact the FTA at 850-222-9900. Disclaimer: The opinions expressed by the authors of the articles contained in Florida Truck News magazine are those of the respective authors and do not necessarily represent the opinion of the Florida Trucking Association or its member companies. Printed in Canada. Please recycle where facilities exist.

FLTrucking.org | Q3 2015 | Florida Truck News

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DESIGN & LAYOUT Art Director, Myles O’Reilly Crystal Carrette Jessica Landry John Lyttle Gayl Punzalan

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DIRECTORS & COMMITTEES

2015-16 Board of Directors Denis Ross, Kenworth of Jacksonville—Chair Jeffrey Day, Publix Super Markets—First Vice-Chair Rob Sandlin, Florida Rock & Tank Lines—Second Vice-Chair Carlos Currlin, Rechtien International Trucks—Secretary Terry Borglund, McGee Tire Stores—Treasurer Jeff Marple, SEIDS/Rooms to Go—ATA Vice President John McTyre, McTyre Trucking (Ret.)—Immediate Past Chair Doc Hyder, Rowland Transportation—Past Chair Rob Carryl, Reliance Supply—Past Chair Phillip Pritchett, Pritchett Trucking—Past Chair Kurt Vest, PrePass

Keith Walpole, Walpole Phares Acuff, Florida Utility Trailers—Member Recruitment Chair Terry Dicks, Dicks Enterprises—PAC Chair Chris Emrich, Southeastern Freight Lines— Technology & Maintenance Council Chair Jared Dusharm, Armellini Express Lines—2.0 Chair Jared Fritts, Landstar Transportation System— Safety Management Council Chair Mark Shallar, FedEx Express/MPS Transportation—Road Team Chair

2015 FTA Committees Member Recruitment Committee Phares Acuff, Florida Utility Trailers (Chair) Brad Pruitt, Vertical Alliance (Vice-Chair) Shannon Bolan, TransForce Rob Carryl, Reliance Supply John DeMarco, Palm Peterbilt Jared Dusharm, Armellini Express Lines Ed Heil, J.J. Keller Rich Kurtz, PeopleNet Johnny McTyre, McTyre Trucking Jake Severit, Publix Super Markets J. Taylor, Taylor and Associates Bob Thomas, Nextran Tampa Cary Watkins, Moments Notice

Finance Committee Terry Borglund, McGee Tire (Chair) Charlie Brown, Nextran Corp. Ralph Cartwright, Con-way Freight Carlos Currlin, Rechtien International Jeff Day, Publix Super Markets

Debra Gilkey, Wallace International Doc Hyder, Rowland Transportation Ray McGowan, People’s Capital and Leasing David Teichert, Raven Transport

Investment Committee Michael O’Leary, Grimes Companies (Chair) Jeff Marple, SEIDS/Rooms to Go (Vice-Chair) Rob Sandlin, Florida Rock and Tank Lines (Vice-Chair) Terry Borglund, McGee Tire Charlie Brown, Nextran Corp. Debra Gilkey, Wallace International Rick Johnston, Indian River Transport Scott Perry, Ryder System Keith Walpole, Walpole

Member Benefits Committee Doc Hyder, Rowland Transportation (Chair) Robert Beryl, Vero Logistics Mike Cobb, Landstar

Mike DelBovo, Saddle Creek Transportation Damian Diaz, North American Transport Melissa Ernst, Quality Distribution Cecil King, Cheney Brothers Tracy Linhart, Premier Beverage Company Tommy Oakley, Oakley Transport Denny Ross, Kenworth of Jacksonville Joanna Schwend, Schwend Inc. Jim Shaeffer, McKenzie Tank Lines Keith Walpole, Walpole

Public Policy Committee Jimmy Davis, Davis Express (Chair) Keith Walpole, Walpole (Vice-Chair) Philip Fulmer, Carroll Fulmer (Vice-Chair) Steve Bacalis, Tom Nehl Trucks Mark Bostick, Comcar Terry Dicks, Dicks Enterprises Gary Enzor, Quality Distribution Frank Morris, UPS J. Taylor, Taylor and Associates Philip Taylor, Broadleaf Duple Travillion, FedEx Corp. Chris Verlander, AIF

2015–2016 SMC Officers

2015–2016 TMC Officers

Cary Watkins Jared Fritts Landstar Transportation System Moments Notice Truck Chair Driver Leasing Secretary Tracy Linhart Premier Beverage Company Jim Anderson Florida Rock & Tank Lines First Vice-Chair Immediate Past Chair Bill Roy Scott Reagan Walmart Transportation Centurion Auto Logistics Second Vice-Chair TDC Chair Larry Hicks Publix Super Markets Treasurer

Chris Emrich Southeastern Freight Lines Chair

Tom Jones Publix Super Markets Training Chair

Jeff Hile Saddle Creek Transportation Vice-Chair

Jeff Day Publix Super Markets SuperTech Chair

Bob Thomas Nextran Truck Center Immediate Past Chair

FLTrucking.org | Q3 2015 | Florida Truck News

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2015-16 Florida Trucking Association Council of Delegates Phares Acuff, Florida Utility Trailers (Board Member)

Bob Magnus, Maudlin International (Major Sponsor)

Jim Anderson, Florida Rock and Tank Lines (Board Member (Outgoing))

Jeff Marple, SEIDS/Rooms to Go (Board Member)

Steve Bacalis, Tom Nehl Trucks (Major Sponsor)

Corey Mathews, FL Movers and Warehouser’s Association (Association Partner)

Quinn Barton, Jr., Retired (Past Board Chair)

John McTyre, Retired (Board Member)

Dan Baugh, Service Trucking (Past Board Chair)

Frank Morris, UPS (At-Large)

Terry Borglund, McGee Tire (Board Member)

Tommy Oakley, Oakley Transport (Past Board Chair)

Mark Bostick, Comcar Industries (Past Board Chair)

Michael O’Leary, Grimes Companies (Investment Committee Chair)

Charlie Brown, Nextran Corp. (Past Board Chair) Robert Burleson, FL Transportation Builders Association (Association Partner)

Zack Paulk, Walmart Transportation (At-Large)

Rob Carryl, Reliance Supply (Board Member)

Scott Perry, Ryder System (Board Member (Incoming))

Steve Casey, Florida Sheriffs Association (Association Partner)

Phillip Pritchett, Pritchett Trucking (Board Member)

Mike Cobb, Landstar Transportation Logistics (Top 10)

Brad Pruitt, Vertical Alliance Group (Major Sponsor)

Carlos Currlin, Rechtien International Trucks (Board Member)

Scott Reagan, Centurion Auto Transport (TDC Chair)

Jimmy Davis, Davis Express (Past Board Chair)

Denny Ross, Kenworth of Jacksonville (Board Member)

Jeff Day, Publix Super Markets (Board Member) Mike DelBovo, Saddle Creek Transportation (Top 10)

Geoff Russell, Sunshine State Towing Association (Association Partner)

Terry Dicks, Dicks Enterprises (Board Member)

Rob Sandlin, Florida Rock & Tank Lines (Board Member)

Chris Dudley, Southern Strategy Group (FTA Legislative Affairs Advisor)

Frank Silio, Publix Super Markets (Road Team)

Jared Dusharm, Armellini Express Lines (Board Member)

Dick Stohler, Retired (Past Board Chair)

Chris Emrich, Southeastern Freight Lines (Board Member (Incoming))

David Teichert, Raven Transport (Top 10)

Gary Enzor, Quality Distribution (Major Sponsor)

Pat Tornwall, Florida Rock & Tank Lines (Past SMC Chair)

Jared Fritts , Landstar Transportation Logistics (Board Member (Incoming))

Duple Travillion, FedEx (Major Sponsor)

Matthew Penland, Cypress Truck Lines (Top 10)

Nick Stack, Thermo King (Major Sponsor)

Bob Thomas, Nextran Tampa (Board Member (Outgoing))

Philip Fulmer, Carroll Fulmer Logistics (Top 10)

Matt Ubben, Floridians for Better Transportation (Association Partner)

Paul Gleason, Suddath Companies (Top 10)

Kurt Vest, HELP/PrePass (Board Member)

Jamie Hammons, American Trucking Associations (ATA Florida Representative)

Ed Walpole, Retired (Past Board Chair)

Ken Heard, TMW Systems (Major Sponsor) Tom Hindle, Retired (Past Board Chair) Doc Hyder, Rowland Transportation (Board Member) Rick Johnston, Indian River Transport (Major Sponsor) Ronny Jones, JJ Keller (Major Sponsor)

Keith Walpole, Walpole Inc. (Board Member) David Warta, Con-Way Freight (At-Large) Additional delegates have been invited based on the number of designated seats in each category as voted by the Board of Directors. They will be added as they accept.

FLTrucking.org | Q3 2015 | Florida Truck News

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From Trucking Engineer to Industry Evangelist

Promoting safety and the trucking industry’s image are at the top of new FTA Chair Denny Ross’ priority list By Lisa Kopochinski | Photos by Ryan Ketterman

ew FTA chair Denny Ross recalls that, if it weren’t for Terry Dicks, he may never have joined the Florida Trucking Association more than a decade ago. “You don’t say ‘no’ to your largest customer when he’s coming to pick you up to take you to an FTA membership lunch,” said 8

Florida Truck News | Q3 2015 | FLTrucking.org

Ross, who is owner of the Kenworth dealership in Jacksonville. “And after seeing the caliber of people at the meeting, I joined that day.” His first opportunity was to serve on the FTA Annual Conference committee. After a year, he became committee chair.

C O V E R S T O RY

“My expectations are always very high for our Annual Conferences,” said Ross. “Keith Walpole then helped me get involved with the executive committee.” In his new role as chair, Ross says his goal is to proactively champion the image change for the trucking industry in Florida, including driver recruitment and industry safety initiatives.

“We have to concentrate on the soon-to-be drivers and enhance what the Florida Road Team is currently doing with the ‘No Zone’ program that they take to high schools and community groups,” he said. Comprised of more than 20 professional drivers statewide, the Road Team promotes safe driving around big trucks at high FLTrucking.org | Q3 2015 | Florida Truck News

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can see. We adjust the mirrors—to show the blind spots—so that even a full-size car ‘disappears.’ We also discuss what trucking companies are doing on a regular basis to be safer.”

Lifelong love of trucks

schools, press conferences and other events. Last year alone, the team educated more than 7,200 people with its “Share the Road Safely” message. A big part of this message is the “No Zone” program, where carrier members visit high schools with a full-size truck and trailer to educate students on how they can be safer around trucks. “Florida Highway Patrol will also bring in a patrol car and park behind the truck,” said Ross. “We show students what the driver

Ross’ love for the trucking industry began as a child growing up in Columbus, Ohio. “My favorite toys were my Tonka® trucks,” he said. “I could imitate a pretty good diesel engine noise at an early age and am still not bad at it today. My dad worked for Marathon Oil, where they ran a fleet of 200 Kenworth petroleum tractors delivering fuel to service stations. I would go to work on summer break with my dad and ride along with the drivers to deliver gas to service stations. I wanted to be a diesel technician. That changed into a mechanical engineer later on, but I always wanted to work in the trucking industry.” Ross graduated from Ohio State University with a degree in mechanical engineering and, after writing nine letters to Kenworth, he landed his first job more than 20 years ago designing intake and exhaust systems. This was followed by applications engineering and then field sales positions in South Carolina, Georgia and Florida.

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Florida Truck News | Q3 2015 | FLTrucking.org

C O V E R S T O RY

“When I first started at Kenworth, Bob Gisert gave me my first big promotion. He pulled me off the design floor and mentored me as an application engineer. This was one of the highlights of my Kenworth career,” said Ross. “I was able to travel and see different applications of trucks from the pineapple fields in Kauai to oil field units in Edmonton. The opportunity to work directly with customers to help them order the needed specifications to perform better was very rewarding.” In 2002, Ross was given a huge opportunity—to buy the Kenworth dealership in Jacksonville—and embark on a journey that would have its share of ups and downs. “Of course, the factory had to guarantee the loan,” he said. “I didn’t have the financial funds to buy a dealership. It was touchand-go between the seller and all the terms and conditions Kenworth needed. On March 9, 2003, the deal closed and I became the Kenworth dealer in Jacksonville.” That’s when the real fun began. “I didn’t even know what I didn’t know for the first few years,” he said. “The economy in Florida was a rocket ship ride up until the end of 2006 and then it was a free fall to a low I didn’t think was possible in 2009. I’m not sure I remember 2009—I didn’t sleep much that year. But our market has been on a nice incline since 2010.” When asked if he would do it all over again—knowing what he knows now—he doesn’t hesitate. “Yes! We have 77 employees now. That’s an increase from 28 people in 2003. We have three businesses: Kenworth of Jacksonville, PacLease of Jacksonville and Coastal Industrial

“ Technology, innovation and good, hardworking people make this industry fun. And I haven’t even mentioned the best part. We get to play with life-sized toy trucks.” – Denny Ross, Chair, Florida Trucking Association Equipment. I enjoy meeting with our customers and learning about what they do, what kind of equipment they have, what kind they should have and how I can help them make more money.” It is with this same enthusiasm that, as FTA chair, Ross is making public outreach his mission to get the word out to the public that jobs in the trucking industry—as drivers or support positions—are viable options. “We need to start building positive images about this industry as a career and not a third choice,” he said. “In other countries, truck drivers are held in higher regard. I don’t know how we got ourselves in this position. Technology, innovation and good, hardworking people make this industry fun. And I haven’t even mentioned the best part. We get to play with life-sized toy trucks.”

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FLTrucking.org | Q3 2015 | Florida Truck News

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SELF-DRIVING VEHICLES:

Are We Ready? Substantial change is on the horizon in the form of autonomous vehicle technologies By Lisa Kopochinski

riverless vehicles? George Jetson would be proud that today’s society is finally catching up to his futuristic world of 2062. We’re not quite there yet, but there is great anticipation that we will see big changes in the next 10 years. “Autonomy is already the norm in some specific cases,” said Nidhi Kalra, Ph.D., an information scientist and director of the RAND Center for Decision Making Under Uncertainty, a global nonprofit research organization that develops solutions to public policy challenges to help make communities safer and more prosperous. “In Western Australia, for example, automated heavy-duty, driverless mining trucks have been in operation for several years,” she said. “The big difference is that they operate in isolated environments. It is a huge technology and policy leap from driving on empty dirt tracks in the desert to driving down I-75 during rush hour.”

PHOTOS COURTESY OF DAIMLER TRUCKS NORTH AMERICA

Levels of autonomy It’s important to clarify what “autonomous vehicle technologies” comprises—as it can mean a number of things. Kalra says it’s helpful to draw upon the National Highway Traffic Safety Administration (NHTSA’s) designation of five automated vehicle levels. • Level 0 involves no autonomy. This is our current traditional vehicle. • Level 1 vehicles have autonomy with a single automated function, such as adaptive cruise control or lane keeping. The driver can use these driver-assistance technologies, but is still fully responsible for driving and must perform the non-automated driving functions. • Level 2 vehicles start combining these functions. For example, adaptive cruise control combined with lane keeping allows the driver to take his/her hands off the wheel and pedals. The driver is still fully responsible for ensuring safe vehicle operation and cannot be distracted or engage in other tasks. 12

Florida Truck News | Q3 2015 | FLTrucking.org

F E AT U R E

Daimler Trucks North America unveiled the Freightliner Inspiration Truck in Las Vegas in May 2015. It is the first licensed autonomous commercial truck to operate on an open public highway in the United States. Developed by engineers at Daimler, it unlocks autonomous vehicle advancements that reduce accidents, improve fuel consumption, cut highway congestion and safeguard the environment. FLTrucking.org | Q3 2015 | Florida Truck News

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FEATURE

“ The biggest advantages for everyone are in safety, efficiency and the environment. Nearly all crashes—for both truck and passenger vehicles—are caused by human error and result in the loss of thousands of lives and billions of dollars each year.” – Nidhi Kalra, Director, RAND Center for Decision Making Under Uncertainty • Level 3 is where real autonomy exists. The driver can let the vehicle drive itself for periods of time and engage in other tasks. The driver may need to take over control occasionally, but there is time for this transition from vehicle control to driver control. • Level 4 vehicles are essentially driverless. The vehicle can perform all driving tasks and the driver/owner just needs to put in the destination. These vehicles may have no occupant at all and drive themselves to their destination. As such, they may have no steering wheel, brake or any way for a human to drive in our usual sense.

So where are we at the moment? “A number of automakers are offering light-duty vehicle models that have Level 2 autonomy, such as automated parking systems,” said Kalra. “They are also showcasing Level 2 technology for freight. For example, Daimler this year unveiled its self-driving truck, which can keep in its lane and maintain a safe distance from other vehicles, though it can’t change lanes or do other maneuvers.” Other companies are working on truck platooning—where vehicles are electronically daisy chained together so that rear vehicles can respond to acceleration and braking maneuvers

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PHOTO COURTESY OF NIDHI KALRA

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FEATURE

performed by the first vehicle in the platoon—thereby increasing safety and energy efficiency. “Most automakers are also working on Level 3 autonomy and a few are working on Level 4 autonomy,” said Kalra. “These aren’t available yet, but I anticipate they will be in the next decade.”

Implications for the trucking industry It’s easy to speculate that autonomous vehicle technologies will have profound implications for society overall and the trucking industry. But not everyone will be a winner. “The biggest advantages for everyone are in safety, efficiency and the environment,” said Kalra. “Nearly all crashes—for both truck and passenger vehicles—are caused by human error and result in the loss of thousands of lives and billions of dollars each year. Automation, first and foremost, can have huge public health benefits by reducing the errors that lead to these crashes and losses.” Automation also increases energy efficiency. Vehicles operating at their most efficient speeds can avoid harsh acceleration and braking. They also offer efficiencies to the supply chain. Autonomous trucks can travel throughout the night—while their drivers sleep. Or, there could be no driver at all. Goods can be transported much faster, thereby boosting economic activity. “These are just the initial benefits, and there are also a number of enormous secondary benefits,” said Kalra. “We could potentially make trucks much lighter. They would use less fuel, resulting in lower costs, less dependence on oil and fewer emissions of damaging greenhouse gases and particulates. Fewer crashes also mean fewer delays and less congestion, which would otherwise also pose enormous costs.”

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FEATURE

FDOT’s initiative

While automation can save drivers’ lives, it can also make those jobs unnecessary. According to the Bureau of Labor Statistics, there were an estimated 1.7 million trucking jobs in the U.S. in 2012. “This is a potentially huge cost savings for trucking companies, but a correspondingly huge loss of income and livelihood for truckers,” said Kalra. “This is true not only for truck drivers, but taxi drivers, bus drivers and others who make their living behind the wheel.”

The biggest challenges that the Florida Department of Transportation and other DOTs currently face are how to safely allow these technologies on our roads. FDOT, for example, is planning for the deployment of autonomous and connected vehicle technologies on public roadways with the establishment of the Florida Automated Vehicles (FAV) initiative. This initiative is helping to engage stakeholders, develop research and pilot projects and create awareness of the technologies and how they support FDOT’s vision statement of “serving the people of Florida by delivering a transportation system that is fatality and congestion free.” An important component of the FAV initiative is public outreach and education. FDOT staff and consultants have traveled around the state to various planning and engineering conferences and meetings to engage entities involved in transportation infrastructure. In fact, the upcoming Third Annual Florida Automated Vehicles Summit takes place in Jacksonville from December 1 to 3 this year and will showcase efforts in creating the framework for the execution of autonomous vehicles on Florida’s roadways. The FAV Summit will be a hands-on experience for attendees to grasp firsthand why Florida is the ideal location for the testing and implementation of autonomous technology. What this new technology could mean for the trucking industry is imagining a future where freight transportation looks much different than it does right now. Much like petroleum companies a few decades ago had to expand their energy products to include wind, solar and natural gas, so too trucking companies may need to diversify their services to meet future conditions and technologies.

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All Systems Go for Florida Rock & Tank Lines

Multi-safety-award-winning Florida-based tanker giant is well positioned for future growth after its recent spin-off By Shawn Gill

revenue from petroleum-related products, with the rest of revenues split between powdered lime and cement-based products and regional industrial chemicals.

Company growth and development The company was founded in 1962 as Shands & Baker Inc., a private carrier and dump truck operation. “In the early ’70s, Florida Rock Industries, Inc. (FRTL’s onetime parent company) wanted to ensure its ability to get diesel and so they acquired a petro operation in Jacksonville, which was really the beginning of the tank truck business,” said Sandlin. The acquisition paid immediate dividends by insulating the company from fuel shortages associated with the 1973 Arab oil embargo. Since then, the company’s tank truck business has grown steadily. In the last 20 years alone, FRTL acquired between 10 and 12 private fleets and tank truck companies of various sizes. During the 1990s, FRP Development Corp., a Baltimore-based real estate development concern operated by FRTL’s parent company, became an ever-greater component of the publicly traded company’s market capitalization. In order to help analysts and investors better realize each entity’s value, Patriot Transportation Holding Inc.

With 21 terminals and nine satellite terminals in six southeastern states, including this one in Pensacola, Fla., Florida Rock & Tank Lines is currently looking to leverage its recent corporate spin-off to attract new acquisitions and investors FLTrucking.org | Q3 2015 | Florida Truck News

PHOTO COURTESY OF FLORIDA ROCK & TANK LINES

lorida Rock & Tank Lines (FRTL), headquartered in Jacksonville, with 21 terminals and nine satellite terminals across the Southeast region, is the 12th largest tanker truck operation in the nation by revenue, according to Bulk Transporter. FRTL specializes in transporting petroleum, powder products and chemicals in a region that includes Florida, Georgia, Alabama, Tennessee and the Carolinas. The company is the sole subsidiary of Patriot Transportation Holding, Inc. that trades on the NASDAQ market under the ticker symbol “PATI” and has a market cap of $76 million. Throughout its 53-year existence, FRTL has maintained its competitive edge and ensured continual growth by adapting its business to the changing times. Today, it operates 480 tractors, including 430 company-owned tractors, 650 trailers and employs 700 drivers, with 850 total staff. “When I joined the company in 1984, about 50 percent of our business was in dump trucks and 50 percent was in petroleum tank trucks and a little chemical work,” said Rob Sandlin, president and CEO of FRTL. More than 30 years later, the company is out of the dump truck business altogether and derives over 80 percent of its

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CARRIER HIGHLIGHT

was spun off, becoming a separately traded public company in January 2015. “We had looked at spinning off Patriot for a long time, and this just seemed to be the right time to do it with the financial markets and both of our companies’ abilities to get credit,” said Sandlin.

Working hard to retain drivers

Ensuring roll stability is of the utmost importance to a fuel carrier. A roll stability system monitors the fuel tank for load shifting in real time. Omnitracs then automatically reports any load shifting beyond a certain threshold to management. FRTL’s latest crop of tractors employ the Bendix Wingman system, which provides active collision mitigation and adaptive cruise control technology.

With more than 20 facilities across the Southeast region, FRTL is capable of offering a range of career paths and opportunities to new hires. “Though we’re a public company, we try to maintain that small, family-owned feeling about who we are and how we manage our business. We’ve got a lot of employees that have significant tenure with the organization, which, to me, is an indication that it’s a great place to work,” said Sandlin. FRTL drivers tend to make multiple deliveries and pick-ups per day within a set geographical region, which means that they can usually count on being home with their families nearly every day or night. “It means that our drivers can attend their children’s ball games versus that road driver who’s gone for two to three weeks at a time and is just glad to get home for three days. This is a huge benefit to working in the tank truck industry,” said Sandlin.

Awards and safety

Investment in the latest technology

Looking ahead, FRTL and its parent company, Patriot Transportation Holding, Inc., will continue to look for growth through new acquisitions. “We’re always on the lookout for good operations with good people who would like to partner up with us and be a part of something bigger and better,” said Sandlin.

As part of the company’s focus on safety and driver satisfaction, recent additions to FRTL’s tractor fleet include Omnitracs, an onboard computer system that uses GPS to monitor driver performance for safety and compliance.

Throughout its history, FRTL has received industry recognition for its commitment to safety. The company received the Carrier of the Year award from Murphy USA, a national fuel supplier, five years in a row between 2010 and 2014. “Not only does FRTL meet stringent delivery standards, their entire organization operates under a set of core principles that mirrors those at Murphy USA,” said Josh Henderson, vice president of fuel at Murphy USA. In 2011, FRTL received national recognition for its safety program by winning the Outstanding Performance Trophy in the National Tank Truck Carriers’ Tank Truck Safety Contest.

Plans for the future

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SAFETY

Safety First

Key FMCSA rulemakings intended to help advance commercial vehicle safety mandate By Jeff Sanderson, Federal Motor Carrier Safety Administration

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he trucking industry serves an essential role in the U.S. economy, and the carriers and drivers who transport gas to the pump, food to the shelves and clothes to the racks are the backbone of commerce. It is the Federal Motor Carrier Safety Administration (FMCSA)’s responsibility to make sure the more than half a million interstate motor carriers and nearly four million active CDL holders play their important role in the economy as safely as possible. While the vast majority of the industry values safety, the most recent crash numbers tell us we still have a lot of work to do to

achieve our goal of bringing the number of crashes and fatalities to as close to zero as possible. In 2013, there were more than 3,800 fatal crashes involving large trucks and buses—a two percent increase over the previous year—and more than 4,250 lives lost in those crashes. FMCSA is continuously working to advance initiatives that help carry out the mission of reducing crashes, injuries and fatalities involving large trucks and buses. First and foremost, we rely on the Compliance, Safety, Accountability program (CSA) to help FMCSA identify, prioritize and intervene with those truck and bus carriers that pose

FLTrucking.org | Q3 2015 | Florida Truck News

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SAFETY

While the vast majority of the industry values safety, the most recent crash numbers tell us we still have a lot of work to do to achieve our goal of bringing the number of crashes and fatalities to as close to zero as possible. forms that carriers, freight forwarders and brokers currently use to register and update their information with the agency into a single, electronic “smart form.” The streamlined, web-based system will begin operating in 2015. At that time, all new applications and updates to existing records will be handled through the new system. The first big step in this process—the Biennial Update—is already underway. Carriers that failed to renew their two-year registration currently are being deactivated at a rate of 15,000 to 20,000 carriers per month, although most were already out of business. This simple, but significant, change has greatly improved the quality of the data in the system, giving a clearer picture of the carrier population. Highway safety relies on the driver behind the wheel of a commercial motor vehicle (CMV). To ensure that entry-level drivers have the knowledge and skills they need to be safe before they get behind the wheel of a large commercial truck, we conducted a negotiated rulemaking throughout the spring of 2015 on requirements for entry-level driver (ELD) training. The 26 members of the advisory committee, known as the ELD Technical Advisory Committee (ELDTAC), successfully reached consensus and issued recommendations on: curriculum content; delivery of training; accreditation; financial aid; and compliance dates. The agency is on target to issue its proposed rule by Oct. 15, 2015 and a final rule in Sept. 2016. FMCSA continues to advance a rulewww.sunbeltcarrier.com making authorized by MAP-21 to prohibit coercion of drivers to violate FMCSA safeOrlando Jacksonville Miami ty regulations, such as hours of service (407) 812-4844 (305) 239-8200 (904) 696-8563 limits or drug and alcohol testing requirements. A final rule on coercion is Tampa West Palm/Ft. Pierce expected to be published later this year. (813) 626-5101 (772) 210-7200 The major provisions of this rule include

the highest safety risk. CSA is a data-driven program with three key components: the safety measurement system (SMS); safety interventions; and safety fitness determination (SFD). The agency is working toward publishing the safety fitness determination (SFD) proposed rule that will consider expanding the use of roadside inspection data—in addition to findings from investigations—to determine a carrier’s safety rating. By doing so, FMCSA would be able to assess the safety fitness of a larger number of motor carriers on a monthly basis. The rule is currently under review at the Office of Management and Budget, and FMCSA anticipates it being published this fall. FMCSA is also committed to completing the implementation of the unified registration system this year. This effort is designed to improve the accuracy and timeliness of the information in our database of registered motor carriers. It will combine various

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SAFETY

prohibitions of coercion, procedures for drivers to report incidents of coercion to FMCSA and rules of practice the agency will follow in response to allegations of coercion. The final rule will respond to many of industry’s comments that were submitted to the docket. FMCSA wants CMV drivers to be medically fit, and we recently reached a milestone with the National Registry of Certified Medical Examiners. Since 2014, FMCSA has been requiring all medical examiners (MEs) that perform physicals for drivers and issue medical certificates to be trained on our medical qualification standards and listed on the registry. In 2015, we exceeded our goal to register 40,000 MEs across the country, and we continue to add more. Further to this point, FMCSA recently published the National Registry II final rule, which speeds up the submission of medical information about CMV driver physicals by providing it to FMCSA for transmission to the state driver licensing agencies. This final rule requires medical examiners to use an updated form and gives them a 24-hour deadline to report results of driver physicals. The effective date was June 2015 and the compliance date is three years after that. This new rule is the next significant step in ensuring that only medically qualified drivers are on the roads. Another key part of driver wellness is ensuring that CMV drivers are sober and drug-free. Last year, FMCSA published a Notice of Proposed Rulemaking (NPRM) to establish a Drug & Alcohol Clearinghouse. The final rule would require commercial truck and bus companies and those who manage testing programs to report verified results into a nationwide database. The comment

period for the rule has ended, and FMCSA is now developing a final rule for publication in 2016. Another one of the Agency’s top priorities in 2015 is to publish a final rule on electronic logging devices (EOBR). The rule is designed to benefit everyone by helping businesses cut paperwork and save money; making it easier for law enforcement and safety inspectors to review driver hours of service (HOS) records; and protecting drivers from harassment. By improving hours of service compliance, the rule is estimated to prevent an estimated 20 fatalities and over 400 injuries each year. In response to ATA’s petition and that of Road Safe America, FMCSA is in the final stages of a joint rule with NHTSA to propose a speed limiter requirement on heavy vehicles. The joint rule will require carriers to install and maintain a speed-limiting device in vehicles with a gross vehicle weight rating of more than 26,000 pounds. The proposed rule will be issued for public comment soon. FMCSA places a high value on building partnerships because the agency’s life-saving mission cannot be accomplished alone. Together, in cooperation with industry, state partners, law enforcement officials, stakeholders, safety advocates and the public, we can all improve commercial vehicle safety. At the end of the day, it takes all of us working together to ensure the motor carrier industry serves the American people well and is the safest it can be. Jeff Sanderson is FMCSA division administrator for Florida.

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STATE OF THE ASSOCIATION

The State of the Association An excerpt from Ken Armstrong’s Annual Conference speech By Ken Armstrong, Florida Trucking Association

[Editor’s Note: One of FTA’s new traditions is for the CEO to deliver an update to the Council of Delegates on where the association is and is going. Since that meeting took place during the Annual Conference and not all could be present, here are excerpts from Ken Armstrong’s presentation that told the FTA story for this year and beyond.]

hat we have achieved in the last year, and will continue to achieve, we will do TOGETHER. That’s the theme of the conference this year, and it was an easy choice. “Together” is the reason an association—ours or any other—exists. First, our voice is larger together. When nearly 20 of us go to Washington—as we did in May—and call on almost our entire legislative delegation, they notice, and they listen. When even more of us than that spend time with the governor, the Speaker of the House and the Senate president during Trucking Day at the Capitol in Tallahassee, it’s evident they know that our voice is stronger together. No matter what your politics, I think you’ll be impressed that FTA members put together a $100,000 contribution to the governor’s reelection campaign and thereby obtained a private luncheon with him to talk about trucking. Now let’s talk about working together. The thing I’m most excited about is the new approach to sharing information, governance and responsibility. The Council of Delegates list is published on page 7 in this issue of Florida Truck News. As we originally conceived the council, the purpose was to collect in one influential body approximately 100 of the key companies, partners, public and private sector associates, most committed friends and representatives of major committees and councils. And what can the council accomplish? First, it can give the board and the association feedback on key industry and transportation issues. Second, the members can utilize their networks to communicate about FTA, its initiatives and the topics that matter most to us. Third, the council gives everyone in the association a direct line to us. Fourth, we are formally expanding our network and the process by which we all connect with each other. You can see why I put this first on my list of examples on working together.

FTA president and CEO Ken Armstrong delivering his State of the Association speech at this year’s FTA Annual Conference

I won’t go into detail about the Safety Management Council, Technology and Maintenance Council, 2.0, FTA PAC or the Truck Driving Championships Committee, but I can assure you that the members of those groups are absolutely up to the task of accomplishing their objectives and working together to support the industry and the association.

Continued on next page FLTrucking.org | Q3 2015 | Florida Truck News

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STATE OF THE ASSOCIATION

Finances Regarding the association’s finances, we have made a turnaround of almost $350,000 in net revenues from operations during just the last year and a half. The outlook for the rest of 2015 and moving into 2016 is very positive. For 2015, we are also operating substantially under budget. If we were to break down our overall financial situation, the first key element is membership dues. The chart shows a more than $100,000 increase in 2014 above the previous years, with an even more dramatic increase so far in 2015.

The second key element in our financial condition is this Annual Conference. Just taking a look at the sponsorship dollars, we have more than doubled the support from sponsors in the last two years.

Sponsorship Dollars $250,000 $200,000 $150,000

Membership Dues Received

$100,000 $50,000

$450,000 $400,000

$ – ■ Dollars

$350,000 $300,000

2013 $92,230

2014 $168,655

2015 $209,500

$250,000 $200,000 $150,000 $100,000 $50,000 $ –

2012

■ Series 1

$274,681

2013 $291,525

2014 $400,387

6/30/2015 $328,020

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“ At last year’s Annual Conference, FTA made a considerable number of changes that placed new emphasis on membership and paved the way for improvement. The result has been explosive growth.”

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STATE OF THE ASSOCIATION

Membership Membership numbers are sort of the litmus test on togetherness, aren’t they? Do companies want to join or don’t they? At last year’s Annual Conference, FTA made a considerable number of changes that placed new emphasis on membership and paved the way for improvement. The result has been explosive growth. July to December 2014

January to July 17, 2015

30 total new members

78 total new members

18 suppliers

42 suppliers

12 carriers

36 carriers

40 percent carriers

46 percent carriers

Currently, FTA has 324 members, versus fewer than 250 only 18 months ago! And the overall percentage of carriers (at 46 percent) is higher than in recent memory.

Safety There’s one more initiative I’d like to suggest for FTA to begin this year. I think we can do more as an association to promote and improve safety in our companies. I think we ought to commit to a

major effort to ramp up safety education, safety practices, safety promotion, safety cross training, safety equipment…you get the idea—everything safety. Safety is a classic example of our capacity to learn from each other, to motivate each other, to celebrate each other—and collectively to improve ourselves. Another way to say that is, “Together, we can do better.” The brand we have chosen is “Trucking … Safer Every Day.” We can, by working together, make our companies and our roads safer every day. I absolutely believe every one of your companies excels in safety. But I also believe four things: 1. We can do better. 2. We can help others do better. 3. We can use our emphasis to attract new members and help them improve. 4. We can do better telling the world about our commitment to safety. Together, I believe we can be safer every day. Thank you for your support. I have a good feeling about where we are going together. I hope you do, too.

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5/28/2015 9:47:52 AM FLTrucking.org | Q3 2015 | Florida Truck News

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Florida’s Trucking Industry Achieves F L O R I D A T R U C K I N G A S S O C I AT I O N A N N U A L C O N F E R E N C E 2 0 1 5

The 2015 FTA Annual Conference

The 2015 FTA Annual Conference was a wonderful event in every way. Dynamic speakers, fascinating entertainment, useful networking and a perfect setting made the event very successful. If you missed the conference, you can access the presentation materials for many of our speakers by giving us a call at 850-222-9900.

ALL PHOTOS COURTESY KEN CARR BACKGROUND: CVIJUN/SHUTTERSTOCK.COM

Outgoing chair John McTyre passes the gavel to Denny Ross

Start of conference golf outing 28

Florida Truck News | Q3 2015 | FLTrucking.org

A high-energy performance by Dance South Florida made the banquet lively

ANNUAL CONFERENCE

THANK YOU TO OUR SPONSORS! Diamond Level ($10,000) HELP Inc., PrePass Indian River Transport International Truck Dealers of Florida Publix Super Markets

Platinum PLUS Level ($7,500) Kenworth Oakley Transport Thermo King Vertical Alliance Group

Platinum Level ($5,500) Comcar Industries FedEx Corporation Freightliner and its Florida dealers Nextran Corporation Quality Distribution Ryder System TMW Systems Walpole

Newly tapped chair, Denny Ross, embraces his new role at the Closing Banquet

ATA general counsel, Prasad Sharma

Commercial Carrier Journal executive editor, Jack Roberts, keynote speaker

Lt. Col. Troy Thompson, FHP Commercial Vehicle Enforcement

Gold Level ($2,500) Bestpass Boulevard Tire Bynum Transport CDT USA Comdata Cummins Power South Cypress Truck Lines/Sunbelt Transport Davis Express Florida Rock & Tank Lines Florida Utility Trailers Goodyear Tire & Rubber Great West Casualty Integral Energy J.J. Keller Landstar Transportation Mack Trucks Meritor Michelin Tires North America Omnitracs Palm Peterbilt Truck Centers Pilot/Flying J Reliance Supply Smartdrive Systems Volvo Trucks North America

Silver Level ($1,500) Bridgestone Commercial Solutions Carroll Fulmer Logistics Continental Tire Daniel Mullins Trucking Dillon Transport Great Dane Trailers Lytx McLeod Software McTyre Trucking People’s Capital and Leasing Corp. Premier Beverage Company Raven Transport Rowland Transportation Saddle Creek Transportation Southern Strategy Group Southern Wine & Spirits TAB Bank Taylor & Associates TA/Petro US Legal Services Walmart Transportation Yokohama Tire Company

Enterprise Florida’s Bill Johnson

FDOT secretary Jim Boxold FLTrucking.org | Q3 2015 | Florida Truck News

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EVENTS

Upcoming Events OCTOBER 7–8

Safety & DOT Compliance NATMI class UCF, Orlando

7–9

NOVEMBER 9–13

Certified Director of Safety Series NATMI class

DECEMBER 8–9

J–Tech, Jacksonville

SMC Executive Committee Retreat The Shack, Inverness

Hazmat Training NATMI class CVSA North American Roadside Inspection Familiarization Seminar NATMI class J–Tech, Jacksonville

14–15 Fall Round-Up & 2015 Educational Institute

Essential Instructional 10–11 Skills for Professional Driver Trainers NATMI class

Daytona Beach

17–20 ATA MC&E Annual Conference

UCF, Orlando

Philadelphia, Pa.

29–30 Trafficking Summit, Florida Attorney General Bondi CVIJUN/SHUTTERSTOCK.COM

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Florida Truck News | Q3 2015 | FLTrucking.org

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NEW MEMBERS

New Members

Below is a list of new members that joined between June 1 and August 15, 2015. FTA welcomes everyone on the list! Carrier Companies

Blue Line Transpor – Miami, Fla. Caspers Distributio – Tampa, Fla. Davis Transfer Co – Carnesville, Ga. Gilchrist Transpor – Bell, Fla. Harrell’ – Lakeland, Fla. MPS Transportatio – Mount Dora, Fla. Performance Truckin – Suwanee, Ga. Ring Power Corporatio – St. Augustine, Fla. SSI Lubricants dba SSI Petroleu – Belle Glade, Fla. TMS Logistic – Brandon, Fla. Trans-Pho – Bartow, Fla.

Supplier Companies

Asset Protection Partners, a Division of Sihle Insurance Grou – Altamonte Springs, Fla. Bates Hewett & Floyd Insurance Agenc – Palatka, Fla. Bestpas – Albany, N.Y. Blue Dot Solution – Jupiter, Fla. Bouchard Insuranc – Clearwater, Fla. East Manufacturin – Palm Harbor, Fla. Eaton Corporatio – Wesley Chapel, Fla. Efficiency Enterprise – Tampa, Fla. First Tennessee Ban – Memphis, Tenn. Four Star Freightline – Montgomery, Ala. Gator Tank Traile – Ocala, Fla. GFO Oi – Winter Haven, Fla. IMM – Westfield, Ind. Integral Energ – Brandon, Fla. Navista – Duluth, Ga. One Beacon Accident Grou – Morristown, N.J. Remy International – Pendleton, Ind. Rissman, Barrett, Hurt, Donahue & McLain, P.A – Orlando, Fla. Schooley Mitchell of Orland – Longwood, Fla.

Safety Management Council

Technology & Maintenance Council

James Goding, Bouchard Insuranc – Clearwater, Fla. Brian Abergel, Rissman, Barrett, Hurt, Donahue & McLain, P.A. – Orlando, Fla. Scott MacDonald, Harrell’ – Lakeland, Fla. David Kirkpatrick, Armellini Express Line – Palm City, Fla. Chad Herron, Performance Truckin – Suwanee, Ga. Jeff Bowron, US 1 Logistic – Saint Augustine, Fla. Mike Cochran, Gator Tank Traile – Ocala, Fla. Steve Lovelady, IMM – Westfield, Ind. Richard Mangan, Rissman, Barrett, Hurt, Donahue & McLain, P.A – Tampa, Fla.

Scott MacDonald, Harrell’ – Lakeland, Fla. Steve Lovelady, IMM – Westfield, Ind. Richard Mangan, Rissman, Barrett, Hurt, Donahue & McLain, P.A – Tampa, Fla. Barry Parham, Performance Truckin – Suwanee, Ga. Jeff Hile, Saddle Creek Transportatio – Lakeland, Fla. Mark Chandler, US 1 Logistic – Saint Augustine, Fla. Joe Fugate, Gator Tank Trailer – Ocala, Fla. Michael Parks, GFO Oi – Winter Haven, Fla.

WE BUILD THEM TO LAST.

New Council Members 2.0 Jason Woods, Performance Truckin – Suwanee, Ga. Jamie Babeaux, US 1 Logistic – Saint Augustine, Fla. Ed Dunaway, Navista – Duluth, Ga. James Goding, Bouchard Insuranc – Clearwater, Fla. Brian Abergel, Rissman, Barrett, Hurt, Donahue & McLain, P.A. – Orlando, Fla. Scott MacDonald, Harrell’ – Lakeland, Fla.

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Q&A

SUPPLIER SPOTLIGHT

Getting to know Tim Owen, Owen and Associates What super power would you want to have? To know what people are thinking and feeling—then minister to their needs. What is the last movie you saw in theaters? American Sniper. If you could eat one thing for the rest of your life, what would it be? Vegetables—I easily could be a vegetarian, but if I had to pick just one thing it would be broccoli. I’m a cancer survivor and broccoli contains good antioxidants and is known as one of the world’s healthiest foods. Corporate Mission Statement: To serve, care and minister with expert ability

At home Hometown: Albany, Ga. I’m a smalltown redneck and very proud of it. College: I was scared I’d fail. I barely got out of high school and had to check the walk-list to make sure I actually graduated. Now, I read 15 to 20 books a year, love learning and God truly changed who I am. First car: Toyota Mark III. I bought it from my dad, paid for all of it and he did not cut me a deal. I sold it two years later for a profit. Favorite color: Orange, but my daughter tells me to wear blue to match my blue eyes. Favorite movie: I love all true stories of heroism, conviction and underdogs. Favorite vacation spot: Anywhere outside. I love the mountains, and the mountains love me—we snowboard in Montana often. Do you have children? Three—all grown, all mature, all Christians and all (as of typing this) still respect and love me. Apple or Android? Apple—Once you go Mac, you’ll never go back.

At work Current title: President, but I’m not the sharpest tool in the box. But I’m good at surrounding myself with sharp tools. What’s the best piece of advice you’ve ever received? Love God with all of my heart, soul, mind and strength and love my neighbor as myself. What is your personal business philosophy? Serve, die to self and the rest is blessed by God. When and how was your company started? After working for an insurance company, I met many insurance agents and said to myself: “I can do it better than them”—so I became one 28 years ago. What are the challenges facing your company today? Cost, compliance, confusion ( for our clients). Health reform is like rain, and we are the umbrella salesmen—we make rain go away. What is the biggest challenge currently facing the trucking industry as a whole? Wellness, shortage of drivers and figuring out how drivers can be home more with those they love. What improvements have you seen in the industry? Technology, cameras, communication and the trucks themselves are pretty cool. What are the greatest benefits to FTA membership? The people—greater love has no one than this that someone lay down his life for his friends. (John 15:13)

What is the last thing you Googled? Insurance stuff—and how to spell words. Which reality show would you choose to be on? None of them—I do kind of like American Ninja Warrior … it shows discipline and hard work. Who—living or deceased—would you most like to meet? Jesus, King Solomon, Adam, Eve and the apostle Paul … in that order. 32

Florida Truck News | Q3 2015 | FLTrucking.org

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