Final Draft Minutes
APEC Intermodal Task Force Meeting

Monday, April 19, 1999
Hotel Carrera
Santiago, Chile

I. Welcome and Introductions

Mr. Kenneth R. Wykle, Chair of the Intermodal Task Force, and Mr. Kevin Kavanaugh, Vice-Chair, welcomed the delegates present. The attendees included 22 delegates representing nine APEC member economies: Australia; Brunei Darussalam; Canada; The People’s Republic of China; Japan; The Republic of the Philippines; Chinese Taipei; Thailand; and the United States of America. Mr. Wykle made a formal introduction of the incoming Chair of the ITF, Mr. Gary Maring.

The Chair requested all attendees to review the final draft of the minutes from the Seoul, Korea meeting and submit any comments to Martine Micozzi as soon as possible so that the minutes could be finalized.

Future meeting minutes and documents pertaining to the Intermodal Task Force may be found on the APEC Transportation Working Group’s web site under "Expert Groups, Intermodal Task Force." To ensure proper posting of all future documents, delegates are requested to provide all presentations and papers on

a computer disk in Microsoft Office Windows ‘95 software , or PowerPoint saved in "rich text" format.

In his capacity as Vice-Chair of the ITF, Mr. Kevin Kavanaugh acknowledged that there were a number of new delegates to the ITF. Accordingly, Mr. Kavanaugh provided an historical overview of the Congestion Points Study and the subsequent formation of the Intermodal Task Force in 1997. He stressed the

importance of presenting deliverables to the APEC Ministers of Transport.

II. Update on Forum on Intermodalism and Satellite-Based Transportation Technologies, Singapore May 5-7, 1999

Ted Davies, of the U.S. Department of Transportation’s Federal Aviation Administration provided an overview of the upcoming two-day symposium scheduled for May 5-7, 1999 at the Singapore Aviation Academy. This symposium will have a series of demonstrations, including an in-flight demonstration using an FAA Boeing 727 with onboard Global Positioning Systems (GPS) for aviation navigation.

The symposium is being co-sponsored by the APEC Intermodal Task Force and the Satellite Navigation and Communication Systems Advisory Committee and is designed to share information on the latest technology to facilitate navigation for all modes of transportation. It is being offered free of charge, and is limited to 200 participants. The proposed program and registration information were disseminated at the meeting.

Objective 1, Task 2: Task each economy to identify obstacles to intermodality and the major challenge to implementing those standards.

Mr. Wykle began the discussions, introducing Kevin Kavanaugh, CANADA, Vice Chair of the ITF, to discuss the Intermodal Task Force Seamless Passenger Flow Questionnaire. Mr. Kavanaugh stated "Japan had prepared and distributed a similar questionnaire for Freight". Unfortunately, Japan was unable to present the findings of their survey at this meeting but were asked to make a final presentation at the next meeting in Hong Kong, China.

Discussion then took place regarding inclusion of intermodal passenger service as the ITF had focused exclusively on freight to date. Gary Maring clarified that we are looking at passenger movements that involve more than one mode of transportation. Kevin Kavanaugh stated that we are limiting the survey to the movement of passengers between economies and not looking at urban transportation congestion.

Mr. Wykle then briefly discussed the increases and expansion of international air terminals, such as Hong Kong, Korea and other terminals around the globe. Mr. Maring stated there will be a further expansion in this area. Mr. James Gough, UPS, added that there is not as intensive an effort underway to examine intermodal passenger transportation and recommended that the ITF move forward in this area. He also suggested that guidelines be established to determine the focus. Aviation and Maritime issues can be totally different, in fact, there are separate Immigration and Customs procedures for Aviation and Maritime passengers.

The question was then raised as to what sort of outcomes are expected from the intermodal passenger survey. Mr. Kavanaugh responded that, similar to the Congestion Points Study, the questionnaire is broken down into: physical, regulatory and institutional impediments. (Identify "hot spots"). Once we have identified these impediments, the next step is to recommend "best practices". It was agreed that the results should not be prescriptive or focussed on a single problem.

Mr. Griffith (Australia) stated that it was important to clarify the objectives, input required and the survey process. It should be left to the individual economy’s discretion how to determine the applicability of the survey to satisfy their own needs/situation. Mr. Griffith also emphasized that he supported the questionnaire, however, stated it must be stressed that the Intermodal Freight Group was very restricted on the application of the "Best Practices". Note: questionnaire was subsequently revised to reflect Australia’s concerns.

There was a question regarding how many questionnaires Canada expects from each economy. Sudanong Charuthus (Thailand) asked who the respondents to the survey should be? Mr. Kavanaugh stated that, in Canada, they would identify a number of experts in intermodal transportation and ask them to complete the questionnaire. He stated this decision would be the responsibility of each economy to determine how they choose to conduct the survey. It could be done in a number of ways, i.e., have the experts in each economy have the Ministry compile the responses or have someone from the Ministry respond directly.

Gary Maring suggested that each Ministry should ultimately be responsible to coordinate the responses within each economy. Mr. Maring stated it was also important to let the Ministry in each economy decide the scope of the questionnaire. The Ministry would coordinate data and prepare input/position of each economy. Acknowledging that "one size doesn’t fit all" is a good start in trying to identify key common areas.

Clay Kerswell, APEC Section, Australian Customs Service suggested, and Mr. Wykle supported, the idea that be one form per economy and each economy would decide the applicability of the information obtained. He stressed that the survey include the use of ITS technology. Australia suggested that two surveys could be provided, one for Maritime and one for Aviation, should any economy wish to do it this way.

Mr. Jess Browning (U.S.) gave a presentation on the TSHIPS project, on behalf of Mr. Carl Westby. The Transportation Shipping Harmonization and Integration Planning (TSHIPS) project is a demonstration project to quantify the importance of coordinated freight mobility infrastructure improvements. The projects premise is that spot transportation system improvements that are not coordinated as part of a larger intermodal system will simply result in the relocation of congestion points, not elimination of the congestion. This project involves the construction of a computer model that will provide a decision-making tool for making intermodal investments that are most efficient and effective.

At the request of the APEC TPT, two components were added to the TSHIPS project. The Kent project (a group of people in the Puget Sound region) are examining an operational approach to solving congestion problems. Two teams, working under the auspices of a facilitator, are exploring the cost of system delay and the cost of the system itself. Two researchers from the University of Washington are working with the Kent team. The Port of Kaohsiung was also added to the study per the APEC TPT's request. A presentation should be scheduled for the next TPT meeting in Hong Kong, China.

Progress of the report:
Project and the work with Kent Freight Transportation Group, which looks at the cost of the system caused by delay and the cost of the delay, are all on schedule. This work was extended by APEC, to Chinese Tapei.

The development of the NETSIM model is scheduled for completion by May. The completion time-frame for the entire project is by the end of August 1999. Ken Wykle inquired whether or not the software being developed under the project would be available to all member economies? Jess Browning seemed to think it would. Ken Wykle stressed the importance of Mr. Westby attending the Hong Kong meeting to provide answers to specific questions pertaining to the project.

Gary Maring stressed the importance of having the instrument include the benefits side of the equation. This is something that is badly needed. Ken Wykle supported Gary’s comment and stated that it may be a good deliverable for the ITF. Mr. Wykle stated that if we took the work from Japan, and combined it with the model, it could really provide invaluable information. At this time, the deliverable for this project is a published report and software. These will be made available to all APEC economies. It was discussed that the FAST project has also been included as part of this initiative. In the FAST project, a Freight Action Strategy for the Seattle/Tacoma Region was being developed.

Ms. Joan Yim, Parsons-Brinkerhoff (U.S.), provided an update on the Thailand Rail Efficiency Study which was presented a year ago in Mexico City. She stated that this was a follow-up to the Congestion Points Study. The study has a two-prong objective: it is intended to serve as a follow-up demonstration project to the APEC Congestion Points Study on steps that can be taken to reduce overlaps; and improve container movement from ports to inland destinations. In accessing the Port of Laem Chabang from the inland container distribution facilities, goods are shipped by trucks. They want to reduce traffic congestion coming into Bangkok. Other issues include getting rail-pricing to be competitive with the trucking industry when you have a government owned railroad. How do you make improvements to the freight rail system when it is politically better to make passenger rail system improvements? Both Laem Chabang and Lat Krabang need double-rail facilities to connect - currently they have a single rail line.

Other types of improvements that could be undertaken: investment side and management side. It’s to the benefit of the local economy to improve transportation systems (Many U.S. businesses overseas need access to good rail and truck transport). Through seminars and business meetings, the objective is to increase awareness of the need for improvement. This project has received support of the U.S. Trade Agency to go forward. This may include visits of Thai officials to U.S. Seattle and Alameda Corridor areas to showcase intermodal improvements, infrastructure development, etc. The freight forwarders and truckers in Thailand are the key players for this project.

Ms. Yim discussed the inland container port study. PB conducted the study for Thailand, however, other economies may face the same issues. For example, Rail pricing is also a major challenge in other economies. Another issue is how do you deal with improvements to freight rail, rather than passenger. (Freight does not vote) The intermodal container movements study concluded that there is a need for improvements in rail overall, when compared to intermodal container movements. This study listed a number of actions which could be taken to improve this situation. It is a benefit to the local economy to have an efficient freight process.

Furthermore, and this applies to many economies, numerous government agencies are involved in the process, but tend to take a "stove pipe" approach and don’t look at other operations which may impact the efficiencies which can be gained. The U.S. Trade Development agency (USTDA) did this study initially, and the USTDA will fund this study. This will involve several visits of Thailand representatives to Seattle/Tacoma.

Gary asked Ms. Yim if any process mapping or tracking of containers was being done in this study? He stated we are often finding that infrastructure is not always the primary reason for the problem. Ms. Yim stated that there were issues initially getting some support from stakeholders, however, now they have buy-in. The intermodal freight container support facility is seen as significant improvement.

Dr. Jess Browning of the University of Washington proposed conducting an Intermodal Symposium which would help implement a high-priority task of the Intermodal Task Force's work program. Dr. Browning provided a detailed power-point presentation on the Symposium. Australia suggested that the Symposium include presentations from UPS and FED-EX, because companies such as those were closely associated with the major transportation issues and problems associated with intermodal movements. Additional discussion took place regarding obtaining funding for the project and where the project should be held. It was stated that the University of Washington was willing to provide $5,000 funding in support of the conference.

To facilitate justification of delegates’ travel to the intermodal symposium, it was suggested that the event be combined with other activities, such as inter sessional meetings or public/private sector activities. A two-day event would include the symposium on the first day, followed on the second day by technical tours of ports and intermodal facilities and projects in the U.S. Pacific Northwest. Related exhibits and events planned by other organizations will be encouraged to coincide with the APEC intermodal Symposium.

Dependent on the venue and date of both the TPT WG-17 meeting and the next Transportation Ministerial, the proposed intermodal conference date will be set accordingly, keeping in mind that APEC funding was being sought for year 2000.

Mr. Kevin Kavanaugh, Vice Chair of the ITF, gave a power-point presentation on this proposal. The purpose of the proposal is to identify the skills required for a profession in intermodal transportation. Mr. Kavanaugh suggested that the project be conducted in two phases. The presentation provided by Mr. Kavanaugh only addressed the first Phase of the project. It was suggested that Phase I would identify the required skills and identify already available courses. The project is scheduled to commence in January 2000 (an RFP would be issued in Fall 99).

James Gough, UPS, stated there was a potential to combine the work of this project with that of the Electronic Commerce Training Group Project which already has been funded for $76,000. Ken Wykle recommended, and the ITF approved, moving forward with this initiative.

IV. DISCUSSION OF TIME-FRAME FOR COMPLETION OF HIGH-PRIORITY TASKS AND CONSIDERATION OF ADDITIONAL ACTIVITIES FOR ACTION PROGRAM.

Of the three presentations made for completing high-priority tasks of the Intermodal Task Force’s work program, two included proposals for APEC funding for the year 2000 budget cycle:

1.) Dr. Jess Browning stated that funds in the amount of $19,500 would be sought to fund the Intermodal Symposium. He stated, that since the University of Washington was willing to put up $5,000 in support of the symposium, his funding request to the APEC budget committee would be for $14,500. There was some discussion regarding where funding approval should initially be sought for this project. The APEC ITF recommended that his proposal for APEC funding in the amount of $14,500 (U.S.$), (with additional support of $5,000 from the University of Washington) be forwarded to the Steering Committee on More Competitive Transportation Industry for further consideration.

2.) Kevin Kavanaugh, Canada, proposed a project to implement two of the Intermodal Task Force’s high-priority tasks (Objective 6, tasks 1 and 2.)

These tasks seek to identify needed intermodal skills and develop required training programs to facilitate transportation professionals’ skill development.

The first phase of the proposed project consists of four steps:

Step 1: Contract a consultant to identify needed intermodal skills;

Step 2: Identify educational courses currently available to develop those intermodal skills which are identified in Step 1;

Step 3: Perform comparative analysis to identify gaps between needed skills and  educational courses available; and

Step 4: Disseminate the findings via APEC TPT web site.

At the conclusion of the first phase, the Intermodal Task Force will determine whether or not there is a need for proceeding to the second phase (development of needed training programs.)

The APEC Intermodal Task Force recommended that his proposal for APEC funding in the amount of $95,000 (U.S.$) for the first phase of a project be forwarded to the Human Resource Development Steering Committee (subsequently revised to $79K).

Mr. James Gough, UPS and Mr. Clay Kerswell, APEC Section, Australian Customs Service, provided a briefing on Customs facilitation. It was stated that even though there had been a 15 fold increase in trade in this region in the last 15 years and the Customs workload was increasing commensurate with this increase, Customs was facing diminishing resources. Based on this situation, there are higher levels of unethical practices in customs administrative procedures. In addition to this, there are significant impediments (inefficient customs procedures) to facilitating trade. The European Union estimates that if Customs procedures were simplified, savings would exceed $8 billion a year.

Of particular interest during this discussion was that UPS had worked with Customs in APEC economies in obtaining agreement from Customs to maintain their hours of operation to suit the industry needs and requirements. These APEC economies include Malaysia, Philippines, Chinese Taipei and Thailand.

There was discussion on the APEC Subcommittee for Customs Procedures (SCCP). The objectives of the SCCP are encapsulated in their guiding principles which include: (1) facilitating trade, (2) accountability, (3) consistency, (4) transparency and (5) simplification. Additional information on the SCCP can be obtained on their Web site.

Mr. Clay Kerswell, Australian Customs, stated there were numerous activities on-going in this area. The KYOTO Agreement, UN Edifact, Principles of the World Trade Organization (WTO), the Advanced Classification and Ruling System, Provisions for Temporary Importation were some, but certainly not all of the current organizations and activities.

* the top three impediments to intermodal transportation are capacity, customs procedures, capacity of the railway system. They contend that these impediments can be overcome by engineering.

* after completion of proposed high-speed railway in 2004, existing railway system will be used for commuters.

* North/South container transport TRIC is established jointly by the shipping line, operators and other private enterprises. Its aim is to provide an efficient and cost-efficient service for north/south container transport, and reduce traffic congestion. Operations will be privatized in the near future. Intermodal container transport will reduce traffic on the freeway. Kelung to Kaohsiung is the proposed route. North to south.

China reported the following:

* Container development of rail is underway. Currently, the container volume is only 1 percent of total railway traffic, primarily because the Ministry of Railway’s prioritization is not focused on container transportation via rail. In the past five years, the Ministry has decided to develop additional rail lines and improve the highway system. This includes upgrading the main lines from Beijing to Shanghai and Beijing to Guang Jo. Total container volume is expected to increase to 5 percent of all railway traffic over the next five years. Container transport is mostly by sea right now.

United States reported the following:

Gary Maring, the incoming Chair of the ITF,provided an update of current intermodal developments in America. Mr. Maring stated that he wanted to focus on three intermodal initiatives which are currently underway , two of the initiatives have a focus on ITS technology and the other one has a focus on infrastructure.

* the Intermodal Freight Technology Working Group (IFTWG), organized under the umbrella of ITS America, is an important initiative which the DOT/FHWA are supporting. The goal of IFTWG activities are to advance the deployment of ITS technologies to improve the movement of freight, improve the interoperability of intermodal carriers freight information technology systems and begin activities to support the formulation of an ITS Freight Architecture.

* the International Border Clearance (IBC) program is focused on developing interoperability and realizing the benefits of ITS technology. This is being accomplished through the IBC program by utilizing ITS technologies to integrate border crossing requirements and procedures into the international trade modernization efforts of Customs and Immigration. Such integration will facilitate the flow of people and goods between the U.S. and their trading partners.

Thailand reported the following:

A second Bangkok international airport is being built. The estimated completion date is the year 2004. Further, they recently passed a privatization bill which should help move public transition transportation towards privatization.

They are seeking funding for a Transport Logistics Corridor project. Australia has received $85,000 funding for this project from Australian industry, however more funding is required. The corridor is Thailand, Australia and Singapore. The goal of the project is to examine the supply chain along the corridor, identify efficiencies and identify impediments to seamless transportation movements.

Canada reported the following:

There is an on-going test at the Port of Montreal utilizing an AEI/OCR system. This is a prototype R&D project which is using Amtech technology, an EDI 418 transaction format, and the Canadian Pacific and Canadian National railroads are participating in the project. The project is scheduled to be completed by the end of May 1999.

Philippines reported the following:

Although air is the most dominant mode, they are moving forward on a Philippine National Railroad initiative. Associated with this is an increase in the trucking fee. Traffic is a major concern. They will not move the traffic from road to rail even if the initiative indicates this is warranted. There are also significant political challenges to passenger movements because a subway has been proposed.

Brunei reported the following:

They are in the process of introducing Electronic Data Interchange to their country.

Japan chose not to make a report.

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