Transportation Topics

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                            Transportation Topics
                                 July 2005 – Volume 1 Issue 3
                                      result of the increased            When Donald Hamm became
                                      demand for local drayage of        president of the Port Newark
 Diesel Prices as of                  overweight containers.             Container Terminal two years
   June 20, 2005                                                         ago, some friends and
                                      Our current Regional lanes         colleagues congratulated him.
National Average: $2.313              of service are:                    Others said he must be crazy.
                                                                         PNCT was a troubled terminal
CGM CURRENT FUEL 14%                  Western New York and               that had seen a succession of
   East Coast $2.348                                                     managers.
                                      Western Pennsylvania,
  New England $2.442                  all of New England.                Last winter, Hamm may have
   Central Atl $2.451                                                    been tempted to agree with
    Lower Atl $2.296                  We provide daily Import,           those warnings, as surging
    Midwest $2.294                    Export, and Truckload              volume was accompanied by
   Gulf Coast $2.274                  service to these points.           complaints about congestion
   Rocky Mtn $2.236                                                      and delays. PNCT hit bottom
   West Coast $2.391                  We also offer competitive          in January, when a severe
    California $2.476                 rates on HAZ MAT                   snowstorm all but shut the
                                                                         terminal during what Hamm
                                      Service, Cross-docking
                                                                         termed "two weeks of hell."
CGM Transportation                    and Tri-Axle chassis for           Truckers became so angry
Adds New Equipment                    overweight containers to           that some independent port
                                      our entire service area.           drivers refused pickups at the
                                                                         terminal and some trucking
                                      Call us today for a price          companies imposed
                                      quote on your next                 surcharges for pickups and
                                      Regional move.                     deliveries there.

                                      Chris Frey                         But now all the work that
                                      973-639-0177 ex: 223               Hamm and his team have
                                      Chrisf@cgmindustries.com           done appears to have paid
                                                                         off.
                                      Bill Spiedel
                                      973-639-0177 ex: 229 or,           "The whole team has done a
                                      BillS@cgmindustries.com            bang-up job since January,
                                                                         and they should be
CGM is pleased to announce                                               complimented for their
the addition of 5 new units to                                           efforts," said Jeff Bader, who,
our fleet. In March of this           Note: - Many of our customers      as president of the
year, we purchased 2 new              questioned our surcharge in        Association of Bi-State Motor
2005 Freightliner Century             January of this year to pick up    Carriers and president of
Class tractors. In May of this        containers at PNCT. Lines          Golden Carriers, has been
year we added a 2005 Mack             were horrible and drivers          one of PNCT's most vocal
Vision and 2, Mack CH                 waited all day to get equipment,   critics. The Bi-State
models to our operating fleet.        if they were lucky. This is a
                                      recent J.O.C. article about what
                                                                         association's "Turn-Time
                                      happened this winter at PNCT       Operations Report," a daily e-
The addition of these trucks          and what they have done to         mail that updates truckers
will help us with the current         correct it.                        about traffic conditions at the
expansion of our Regional                                                port's six container terminals,
service. Needless to say, we
have 5 happy drivers.
                                      Turnaround at PNCT                 has consistently described
                                      Monday, June 6, 2005               conditions at PNCT as
                                      Journal of Commerce                normal, with "no problems or
In June of this year, we added                                           delays," since February.
six (6) new Tri Axle Chassis          BY PETER T. LEACH
to our pier fleet. This is a
                                                                                      Page 2 of 2

Throughout the darkest days         double move - dropping off an     Millennium Rail terminal was
of what Hamm calls the              empty or export container and     built with port authority funds.
"perfect storm" of snow, ice        picking up an import container
and truck delays of up to 12        - is now averaging between        While PNCT has near-dock
hours in January, Hamm said         40 and 50 minutes, compared       rail service, truckers must
he kept the faith, telling his      with up to four hours during      endure traffic lights and public
team that conditions would          the darkest days.                 road congestion to reach the
improve when the terminal                                             4,700 feet of track at PNCT's
took delivery of 10 straddle        "I didn't expect the new strads   intermodal terminal. The port
carriers that could help handle     to make such a difference,"       authority plans to expand the
the growing volume. In early        Hamm said. "With them, we
February, when the new              have boosted our throughput       terminal to 10,000 feet and
straddle carriers were              capacity by 40 percent since      build a flyover bridge that will
delivered, "It was like the flick   2003." The sudden spurt in        simplify the trip to the
of a light switch, in terms of      the terminal's capacity           terminal, but the project won't
our ability to clear out the        prompted Hamm to seek             be completed until after 2008,
volumes," said Robert               board approval to acquire six     Hamm said. He said the port
LaMura, PNCT's commercial           more straddle carriers so that    authority has budgeted $141
director.                           PNCT can handle even more         million for Express Rail
                                    volume. "I think they realize     expansion in the next few
Before February, the terminal       the necessity of having           years, but most of this will go
was using the same 54               sufficient equipment to meet      to providing on-dock service
straddle carriers to handle         customers' demands," he           to the New York Container
volume that had grown from          said.                             Terminal on Staten Island and
1,300 gate moves per day in                                           expansion of Millenium Rail.
2003 to about 1,700 by the          PNCT, meanwhile, will finish
end of 2004. At the end of the      repaving the 15 acres of          "The port authority has talked
year, PNCT was struggling to        waterfront space on the east      to us about putting on-dock
handle that number of trucks,       end of its terminal late this     rail service at PNCT, but this
sometimes staying open until        summer and take delivery of       wouldn't happen until after
midnight just to clear them         two new container cranes.         2010," Hamm said. "This
out.                                While Hamm does not plan to       would be instead of the
                                    add another berth to the          flyover and would require new
Soon after he took over in          terminal, the new cranes and      bridges and lanes, but there's
2003, Hamm changed work             waterfront space will enable      no plan for it. My concern is
processes to handle the             PNCT to have as many as           that it's a way for the port
growing number of trucks in         five cranes unloading a vessel    authority to put off spending
the terminal yard - space that      simultaneously. With the new      on it, and we need it right
was being constricted by a          cranes and additional space,      now," he said.
repaving project. Because 25        Hamm expects to handle
percent of the container            465,000 vessel moves this         The port authority plans to
moves in the yard involve           year.                             double the capacity of the
empties, PNCT acquired two                                            near-dock Express Rail facility
empty-container handlers,           Still, PNCT's troubles aren't     that serves PNCT by next
bringing the total to eight, and    over. Hamm is looking at the      summer or fall, said Kenneth
10 yard hostlers. But even          next big hurdle: improved         Spahn, the agency's senior
with the additional equipment,      intermodal rail service. Unlike   manager of railroad projects.
the terminal couldn't keep up       the Millennium Rail intermodal    "We are also looking at ways
with volume, which soared 33        terminal that sits between the    to improve access (from
percent, from 307,000               terminal of two competitors,      PNCT to the rail terminals)
container moves on or off           APM Terminals and Maher           short of a flyover in the near
vessels in 2003 to 465,000          Terminals, PNCT does not          term," he said. Spahn also
last year. Drivers and trucking     have on-dock rail service,        said the port authority is
companies screamed about            although Hamm said PNCT           planning to provide access to
the delays.                         pays the Port Authority of        the Express Rail facility at
                                    New York and New Jersey           Port Newark for Norfolk
The turning point came with         four times as much rent per       Southern as well as CSX,
the arrival of the 10 straddle      acre as APM, and twice what       which is the only railroad that
carriers. Almost overnight,         Maher pays. "I feel like we are   can reach it now.
PNCT was handling 2,400 to          subsidizing on-dock rail at my
2,700 gate moves a day, and         competitors' terminals with       "In the long term, there will be
clearing them by 6 p.m.,            every dollar of money I pay       a flyover or a rail terminal right
LaMura said. The amount of          the port authority," he said.     next to the facility," he said.
time it takes a truck to do a       The on-dock rail service at the   "The board has not yet
                                                                                     Page 3 of 3

authorized that piece of it, but                                      something will or won’t
either way, we are confident                                          happen.
that we will be able to              “Food For Thought”
accommodate the growth of                                             Ever hear someone say, “If it
PNCT."                                                                wasn’t for bad luck, I’d have
                                   Positive or Negative.              no luck at all”? Could there be
Another major question             What influences your               a more negative outlook? This
involving the port authority       attitude?                          person is doomed to a life of
and PNCT's ownership                                                  expecting to lose. (Hopefully,
remains unresolved and could       Most people think they have a      it’s a competitor.) This person
change the outlook for the         positive attitude —                has “influenced” himself into
terminal. PNCT's ownership         unfortunately, most of those       failing before the event
structure is complicated: The      people are wrong.                  occurs. How pathetic is that?
terminal is owned 50-50 by         Oh, it’s easy to have a            Who and what “influence”
Royal P&O Nedlloyd and P&O         positive outlook when things       you? And how do those
Ports, a unit of P&O Group.        are going your way. But what       “influences” affect your
The P&O Group owns 25              happens when you lose? Do          attitude?
percent of Royal P&O               you begin to grumble and
Nedlloyd but has agreed to         start playing the blame game?      Consider the following
sell that stake to A.P. Moller-                                       “influences” and whether they
Maersk, which is acquiring         Now, if your attitude isn’t as     affect your thinking and your
P&O Nedlloyd.                      strong or as positive as it        actions in a positive or a
                                   should be, the first thing you     negative way. Remember,
When the acquisition is            need to do is find out WHY.        awareness is the first step in
completed, A.P. Moller, which      Too often people—especially        the change-in-attitude
also owns APM Terminals,           salespeople—look for               process. Doing something
will own P&O Nedlloyd's 50         immediate answers. Answers         about your attitude is 90
percent stake in PNCT. "We         are good, but not without an       percent of the challenge.
might be owned 50 percent by       understanding of the
Maersk, and I don't know           circumstances.                     The influences of your
whether the port authority will                                       associations. The people
allow one company to control       If you understand what’s           you hang around with will
so much of the harbor's            causing your “negative”            often determine how you think
terminal capacity," Hamm           attitude, it’s easier to accept    of yourself.
said.                              and implement a remedy—or
                                   change your attitude. But in       The influences of your
Meanwhile, the additional          order to change your attitude,     home environment. This
capacity PNCT has developed        you must understand what           includes more than your
in the last year has allowed it    “influences” it. So the key        physical surroundings. It’s
to take on some new liner          here is to determine what          about what takes place in
business - a luxury not            INFLUENCES your attitude.          your home environment.
enjoyed since April 2004           Once you understand what
when it added the Indamex          influences your attitude, you      The influences of your
service operated by CP Ships,      will understand how to             social environment. Where
CMA CGM, APL and Shipping          improve it.                        do you hang out? Bars?
Corp. of India. This year it has                                      Clubs? Bookstores? Malls?
added the ABX service, a           In the legendary Earl              Movies? The very words
weekly service to the east         Nightingale recording of “The      conjure up attitudes.
coast of South America that is     Strangest Secret,” Nightingale
operated by P&O Nedlloyd,          says, “You become what you         The influences of your work
CMA CGM and APL, a                 think about all day long.” That    environment. Is it
relatively small-volume            single statement is THE “aha!”     demanding? Do you like your
operation that will involve        you need to understand             job? How do you feel about
another 800 vessel moves per       “influence.”                       your boss? Coworkers?
week. Hamm said PNCT will                                             Politics? Stress-related
take on additional liner           Take the adage, “Self-talk         situations?
services next year.                equals self-performance.” The
                                   reason it’s been around so         The influences of your
                                   long is because it’s true. Self-   reading and listening. By
                                   talk is an influence. You tell     reading and listening to some
                                   yourself—or should I say—          of the greatest self-help
                                   sell yourself on why               information, you influence
                                                                      your attitude by setting the
                                                                      tone for positive thinking.
                                                                                      Page 4 of 4

                                    few tips that will help you build          CGM News
The influences of your              a positive attitude:
watching. Most TV programs
are negative or violent or          1.Guard your time. Do
both. So, don’t watch.              positive things in your spare         HOLIDAY SCHEDULE
                                    time.
The influences of your
                                                                              Independence Day:
career. Are you unhappy with        2. Read more than you
                                                                                 July 4, 2005
your job? If you are not driving    watch TV. This single action
for fulfillment beyond success,     will turn your “influencing”
                                                                                 Labor Day:
it will influence you in a          factors in a positive direction.
                                                                              September 5, 2005
negative, sometimes cynical
way.                                3. Make positive selections.
                                    This sounds easy, but in
The influences of your              reality, the world is more than
family. Does your family            half negative.
encourage you or hold you
back? Your family can be your       3.5 Ignore people that try to
greatest positive asset—or          discourage you. These are
your greatest negative              miserable people who are
roadblock.                          jealous of your dedication to a
                                    positive, fulfilling life.           Warehousing Transportation
The influences of your                                                           Logistics
health. Good health can             When Earl Nightingale wrote
make you feel good; bad             and recorded “The Strangest          320 Elizabeth Avenue, Newark
health can devastate your           Secret,” he had a firm handle               New Jersey 07112
attitude.                           of the impact of his words.          p: 973-639-0177 f: 973-639-0177
                                    They were the ones that                  www.cgmindustries.com
The influences of your              influenced him. They are the
experiences. It’s so true—          words that continue to
past success breeds                 influence me. And they are           “Quote of the Month”
confidence for future               the words that will influence
successes.                          you. Remember: “You
                                                                        Our quote of the month comes
                                    become what you think about
                                                                        from a pocket book called “Zig
The influences of your self-        all day long.”
                                                                        Ziglar’s little book of Big
esteem or perceived self-
                                                                        Quotes.” Zig is recognized by
worth. This is about how you        If you are interested in having
                                                                        his peers as America’s most
think of yourself when you          your own copy of “The
                                                                        consistent messenger of hope
look in the mirror or when you      Strangest Secret,” go to
                                                                        and optimism. Works for me!
worry what others think of          www.gitomer.com and look
you.                                under “Products.” You will be
                                                                        “I’m so optimistic I’d go after
                                    directed to a personal win.
                                                                        Moby Dick in a row boat and
The influences of your
                                                                        take the tartar sauce with me.”
personal choices. How do             Jeffrey Gitomer, the author         – Zig Ziglar
you feel when you evaluate or       of The Sales Bible and The
second-guess your choices?          Little Red Book of Selling, is
                                    President of Charlotte-based
Your attitude is influenced by
what you read and watch—by
                                    Buy Gitomer. He gives
your interactions,                  seminars, runs annual sales
associations, home                  meetings, and conducts
environment, work                   Internet training programs on
environment, social                 selling and customer service
environments, and what you          at www.trainone.com. He can
think about. But here’s the         be reached by phone:
one-word secret to a certain        704/333-1112 or e-mail:
positive attitude:                  salesman@gitomer.com
AWARENESS.

The more aware you are of
your influences, the easier it is
to change them. The result? A
positive attitude. Here are a