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DBA Freight Co-op

DBA. DBA Freight Co-op. We are a minority owned, community based, driver co-op, drayage company. We transport freight from the ports of Long Beach and Los Angeles – using Peterbilt 386 day cab.  Hybrid-diesel trucks. Vision/ Mission statement .

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DBA Freight Co-op

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  1. DBA DBA Freight Co-op

  2. We are a minority owned, community based, driver co-op, drayage company. We transport freight from the ports of Long Beach and Los Angeles – using Peterbilt 386 day cab.  Hybrid-diesel trucks

  3. Vision/ Mission statement • Vision statement: To become the most successful co-op freight transportation company with a positive impact on the customers we serve, the environment we share and increased revenue to our employees we support. • Mission Statement: Our purpose as a freight transportation company is to provide superior customer service, exercise a positive impact on the community, environment and to produce world class employees that represent our company

  4. Values Statement: DBA Freight Co-op offers: • Quality service - We provide our customers with courteous, prompt and dependable service. We build our reputation for timely deliveries, professional drivers for quick turn around. Available support for any issues that may arise with our trucks. The return of empty containers after delivery • Package Handling – by maintaining dependable and safe equipment, we ensure no damage to cargo • Competitive rates – we are able to provide competative rates because we have low cost inputs

  5. Long Term Goals and Objectives • By building partnerships with established firms that have a strong presence in the Port complex therby eliminating purchase cost of facilities, equipment, labor, security. And also this would diversify our risk • Minimizing cost through purchasing equipment that keeps fuel cost low (ie= medium deisel hybrid trucks • Create a multidimensional approach to augmenting base returns • Make use of POLA grant program and tax credits to reduce cost per vehicle • Access the immediate community thru LBCC and CSLB students involved in green mechanics programs to intern at our site and perhaps obtain full employment – by doing so will increase company’s profitability by • maximize share holder value and establish efficient minimum scale or economies of scale • We are imposing a positive impact on the community and make ourselves available for related grant opportunities

  6. Goals and Services Goals: 1. Financial – through a detailed balance sheet, and proper cash flow coupled with a projected income statement to show a 2% profit within the first two years. 2. Establish respect in the business, healthy competition, and reliable service.

  7. Services • To have 50 diesel – hybrid trucks running 24/7 with minimum turn around time at the port, other destinations and return of empty containers. • Drivers to be rated on performance not seniority • Serving community by being in compliance with 2010 emission standards, internship program and being a community based resource for minority jobs • Drivers efficient on getting in and out of port quickly • Manager on duty to offer support if issues arise with one of our trucks • 70% of profit goes to driver thereby insuring care of truck and motivation for world class performance

  8. We are using a focus strategy • We have selected a specific segment/niche = POLA/POLB • Their need is to have us in and out of the port quickly( professionally trained drivers) – problem free (manager on site) • Customer delivery – at the best price using the up to date technology (tracking) (marketing) • Our services is that we serve the port/customers better than the competition • We return and quickly expedite the empty containers

  9. Business Organizational Chart • CEO – Victor Roman • Marketing – Chris Cleary, Carmen Williams , • Logistics – PK Karunphan , CassadyOzimec and JerikaTopasna • Finance Manager – Joseph Galantin , Maria “Tina”Pittman, Carlos Hernandez • Human Resources – Remo Hunt • Operations – Dale Johnson • Legal Team – Yim Lincoln, Jeremy Rostom, Bruce Kearny and Xiomora Benitez

  10. Marketing Plan – Carmen Williams 1.0 Marketing Vision To become the industry leading provider of green-subcontract trucking to the Port of Los Angeles and the Port of Long Beach. Initial entry into the market will be through a strategic parternership with Superior Trucking with future goals to expand strategic partners. We also aim to establish facilities in close proximity to the ports we serve ,positioning ourselves as a primary transportation source to out of state truckers and those non-compliment with state and county regulated , Clean Trucks policy. We view our partners as trusted allies, providing them with the loyalty of a business partner while adding an adding an economic benefit. We enable our partners to run their operations at maximum efficiency and reliability. 1.1 Target Market Ideal companies to form partnerships will be Class I firms with established business at the POLA/POLB as well as a national presence Emissions standard and new green policies will become increasingly stringent with fewer companies able to provide drayage services that meet required standards. This ultimately will contribute to DBA’s growth and expansion and will reinforce our push to be the leading provider in green-subcontracting.

  11. 1.2 Competitive Advantage DBA ‘s acquisition of the Peterbilt 386 will be the leading catalyst for advancing companies objectives. From inception we position ourselves with a fleet of trucks that are in compliance with current and future emission standards and green regulations. We will drive growth through excellent customer service, strict adherence to customer delivery request and times, and communication via state of the art technology. Special attention should be paid to new regulatory factors expected in 2010 and 2012. Ideal market conditions should permit us to expand into second phase of business growth. 1.3 Communications DBA will market itself through a series of press releases targeted at industry insider, government agencies, local regulators, institutions of higher education, union leaders, and trade organizations. Company will adopt message for all print materials. “ Go Green with DBA” Marketing message should all be consistent. Second phase will involve allocation of 12% percent of operation cost be allocated to print in industry magazines, local bill boards, participation in Trade shows, and sponsorship of training programs that will serves as personnel feeders for new hires. Reevaluation of impact of measures should be reevaluated at the end of first fiscal year for effectiveness.

  12. Marketing • Peterbilt 386 day cab Hybrid – Diesel • At $ 120 thousand a truck • Marketing plan – target market : • We are a green sub-contracting trucking service. With Superior and the point of destination markets whom we deliver to and back to port. • We provide great customer service addressing their needs of best rates, ensuring the shipment arrives on time , in good condition • Our competitive advantage is that we have trucks that are compliant with the port green regulations and that we can return empty containers – a full round trip. • words we have all the equipment and services that customers need.

  13. Marketing Continued • Our marketing mix is : • Product – our hybrid deisal trucks operate 24/7 in 3 shifts , return containers , on time delivery, and outstanding customer service, • Price – competitive pricing • Place – by subcontracting with Superior – we are in the right place to freight their containers and deliver containers for anywhere in the U.S. • Promotion – we can promote ourselves and our customer service because we are owned and operated by the drivers with a small management team and a on site manager at the port to address any problems that arise • – using the Vantive or Quantum View Manage tracking system – no need to remember any tracking numbers – any PO# , bill of lading #or customer name will be used as a predefined reference to track shipment • Signature tracking tool – obtains valuable proof of delivery information including a digital signature and delivery address • We have our own fleet of trucks and deliver containers/freight (FCL/LCL) on time, at the right place, in the right condition, our scope can be anywhere in the U.S. We are also capable of overweight containers, refrigerated containers (refers), loose freight – in other

  14. Sales and Marketing Plan for Community Based Driver Owned Green Trucking Company –Chris Cheary • As a driver owned, community based, green trucking company we have to market our selves to Terminal Owners in the Port of Long Beach and Los Angeles. Terminal Owners would choose our service over other companies out there for the following reasons: •  Driver-owned community based: We are a driver owned company based in the community. We provide jobs to minorities within the community with the chance to earn a good salary with benefits. Through advertising we reach out to the local community through job fairs and lateral recruitment from other competitors to create new jobs. In turn we are able to put pressure on the terminal owners to use our services. •  Terminal Friendly: We market our company as the best trained and most knowledgeable drivers around. We ensure that our drivers “turn and burn” loads because we are performance based and not seniority based. We ensure our drivers show up on time with the right credentials and move in and out of the terminals in an efficient manner. • Customer Satisfaction: We ensure our drivers are the best trained, most efficient and and have all proper credentials. If a problem does arrive we have a team on duty in the ports if problems do arise. If such problems do exist we ensure that we will do everything in our power to have a team on site to defuse the problem as quick and painless as possible. •  Green Trucks: Our trucks are not only new and reliable but they are one of the few diesel-hybrid trucks on the market. After tons of research we chose hybrid trucks over many of our competitors alternative fuel vehicles. Hybrids provide better air quality when at an idle so do to our freeway system we can guarantee lower emissions than our competitors and lower fuel costs for us keeping our costs down and our prices down. •  Trough campaigning with local terminal owners and explaining them our business model we can put pressure on them through marketing ourselves through media sources. Interviews with local papers i.e. Press Telegram and the L.A. Times, websites, and even local Long Beach television gives us a chance to market ourselves and spread the message of a community based, driver owned green trucking company. We can assure the terminal owners who contract with us that they will have positive publicity through a joint campaign were we as the local green trucking company promote them as a eco-friendly responsible local business owner.

  15. Finance • Joseph, Tina, Carlos • Financial Projections and Analysis • Funding Requirements and Uses • The company is raising $6 million dollars for the purpose of financing 50 new green trucks to meet the demand for its services, in purchasing advanced and integrated technology system, and to fund the operations for the business. The company management has reason to believe that a new green truck fleet, value added service offerings, and a high technology system will assist the company in its effort to be recognized and grow its market offering and increase sales. • In order for the company to be operational, it has to secure funding to pay and maintain its business costs. Business costs include wages and benefits, administrative costs, sales and marketing costs, technology costs, costs of sales, and professional fees.

  16. DBA qualifies for several grants because… We address several environmental and social issues… DBA does have… • Energy & Environmental Solutions • Education via Internship Program with LBCC & CSLB • Community Development by job development and minority ownership • accept and encourage minority and women • A strong management team • A clear understanding of their market(s)  • Legally defensible technology  • Third party product or business model verification  • Clear commitment to a social and/or environmental mission

  17. Grants we qualify and have been approved for •  Investors' Circle - seeks early or expansion-stage companies whose businesses address significant social or environmental issues. • http://www.investorscircle.net/for_entrepreneurs/our-criteria • Fleet Assistance Program -Grant applications, financing, emission evaluation, equipment assessment & consulting. • The Port of Los Angeles and several other organizations have grant programs available to support air quality improvements from Port operations. Grant funds are available from local, state and federal agencies for air emission reductions that go beyond current regulatory requirements. Potential grant opportunities are summarized below. • http://www.cleanandgreenvehicles.com/fleetassistanceprogram.htm

  18. We also qualify for… SCAQMD Carl Moyer ProgramEligible Source Categories: HDV, HC (no fishing vessels), CHE The Carl Moyer Program is a grant program implemented by CARB and local air districts that funds the incremental cost of cleaner-than-required engines. SCAQMD administers both a Lower Emission Heavy Duty Engine Program and a Heavy Duty Truck Fleet Modernization Program. The Carl Moyer Program provides monetary grants to help businesses and public agencies clean up their heavy-duty diesel engines more than required by air pollution regulations.  The grants cover a percentage of the cost of cleaner projects.  Maximum funding is dependent on the project category and type. The AQMD funds a variety of vehicle classes and types. Funds are used to help purchase new vehicles or new engines Projects reducing PM and/or ROG are also eligible for funding provided they are cost-effective. Alternative fuel engines, such as those using compressed natural gas, liquefied natural gas, propane and electricity will be given preference for funding. • http://www.portoflosangeles.org/environment/grants.asp Federal NGV Tax Incentives Eligible Source Categories: HDVIn an effort to reduce America's dependence on foreign oil, reduce urban emissions and reduce greenhouse gases, the federal government offers vehicle buyers and owners a number of tax incentives for natural gas vehicles, including income tax credits for alternative fuel vehicles and alternative fuel infrastructure, and excise tax credits to the seller of natural gas. • http://www.aqmd.gov/tao/Implementation/carl_moyer_program_2001.html

  19. Based on these grants – DBA assumes we qualify and have been accepted/awarded these grants. With this money we purchase the trucks and equipment needed and install a Internship program under the logistics management – this, in turn , will keep us with positive interaction with the community as we train students and offer green jobs at the port to those who qualify.

  20. Financing continued • Plan B-Capitalization is the amount and the source of money needed to start and operate a business. The finance committee of DBA Freight recommends a plan of capitalization: each member of the co-op will give an equal amount of capital investment (risk capital), the company will borrow money it needed in short term and long term credit (debt capital); and the company will avail of any government grants and funding to help acquire and purchase green trucks. • Investing risk capital is a basic member responsibility. The initial investment required from each member will be determined by the projected costs of the facilities, estimated volume of business, cash flow requirements, and projected number of members. • How much debt capital that the cooperative will borrow depends on how much risk capital members initially invest, cash flow, quality of management, and the degree of risk in the venture. DBA Freight will get a long term credit to purchase its expensive green trucks equipment. Since short term loan can only be obtained after 1 year of established business operation, DBA Freight will only use it to make up when member’s equity investment are insufficient. The company will explore and choose the best financing institution that’s best suited to the need of the cooperative business.

  21. Investors • Freight CO – OP can sell stock shares via the following stock exchange. NYSE and NASDAQ • Stock price analysis - Freight CO – OP Fundamental Analysis determines a projected income of 2% profit within the first two years. • Sharholders • Stock share ownership of Freight CO – OP Share of Stock - Convertible preferred Stock Currency - USD Sector – Transportation Stock Exchange – (NYSE) New York Stock Exchange, NASDAQ Loan Source • Banks we can borrow commercial loans • Wells Fargo: • Credit amount - $50,000 to $500,000 • Terms - 5, 10 or 15-year terms, 10-year balloon with a 25-year amortization schedule or 5-year balloon with a 30-year amortization schedule. • Interest Rates – Fixed or Prime – Based.

  22. The long-term loan in the amount of $5,000,000 is expected to be received in January, 2010. The company is planning to purchase 50 trucks (25 in February and 25 in June) in the first year of plan implementation, 2010. Monthly repayments on the $5,000,000 loan will be made in the amount of $100,000.

  23. Human Resources – Remo Hunt • Operations Managers –Oversee all yard operations and reports to Owners frequently on productivity. • -NightsideMonitors the yard and operations at night • -Dayside Monitors the yard and operations during the day • Dispatch-Relays information via radio to vehicles and drivers. Bilingual Dispatcher during both shifts to assist drivers with issues that may be of concern. I, E (directions, terminal changes, traffic) Dispatch is 24 hours. • Administrative Assistant –Assists the Op’s Mgr’s and Dispatch with Admin related duties such as paperwork, vacation requests, sick time, health benefits, grievances, and provides information for educational resources. • -Day only • Yard Mechanics- 4 yard mechanics will maintain and keeps trucks running full of fuel, clean and inspected daily. Any major overhaul or mechanical duty should be covered by warranty from the retailer. • -Day/Night • Green Rover/Bus. Agent- This position is shared by any one in human resources, and will usually be the responsibility of the Op’s Managers. This person will roam the Ports/Terminal and offer guidance and support for the drivers and collect information on terminal routes and changes. This person will also deal with Terminal Operators/Superintendents and gather feedback on how to expedite services and save time while reducing emissions.This position rotates between nights and days throughout the week.

  24. Human Resources Back ground checks – The Transportation Security Administration (TSA) developed the Transportation Worker Identification Credential (TWIC™) Program in response to the Maritime Transportation Security Act of 2002 (MTSA). MTSA requires use of a biometric identification credential by individuals who require unescorted access to secure areas of maritime facilities and vessels. Before issuing a TWIC, TSA must conduct a security threat assessment on the TWIC applicant. An applicant who, as a result of the assessment, is determined to not pose a security threat, will be issued a TWIC. Each applicant for a TWIC must provide biographic information, identity documents, biometric information (fingerprints), sit for a digital photograph, and pay the established TWIC fee. TSA will send pertinent parts of the enrollment record to the FBI, as well as within the Department of Homeland Security (DHS), so that appropriate terrorist threat, criminal history, and immigration checks can be performed. TSA will review the results of the checks to determine if the person poses a security threat, and will notify the applicant of the results. When TSA determines that an applicant qualifies to receive a TWIC, a credential will be produced and sent to the enrollment center at which the applicant applied. The applicant will return to the enrollment center for issuance and activation of the TWIC. Possession of a TWIC does not guarantee access to secure areas because the owner/operator controls which individuals are granted unescorted access to the facility or vessel. Rather, TWIC is a secure, verified credential that can be used in conjunction with the owner/operator's risk-based security program that is required in security regulations issued by the Coast Guard. • The authority for collecting this information is 49 U.S.C. 114, 40113, and 49 U.S.C. 5103a.

  25. Types of training needed • Basic Preparation for the CDL: General Knowledge, Air Brakes, Combination Vehicles, Doubles & Triples, Tank Trucks, Hazardous Materials.Other Topics: Orientation to School and Trucking, Control Systems, Vehicle Inspection, Basic Control, Shifting, Backing, Coupling & Uncoupling, Special Rigs, Visual Search, Communication, Speed Management, Space Management, Night Operation, Extreme Driving Conditions, Hazard Perception, Emergency Maneuvers, Skid Control & Recovery, Vehicle Systems, Preventive Maintenance & Servicing, Diagnosing & Reporting Malfunctions, Handling Cargo, Cargo Documentation, Hours of Service Requirements, Accident Procedures, Personal Health & Safety, Trip Planning, Public & Employer Relations, Career Planning and Job Search, Railroad Crossing Procedures, Driver-Dispatcher Relations, DOT Rules, and Defensive Driving Techniques. • ADMISSION REQUIREMENTS FOR TRUCK DRIVER TRAINING: • PTDI requires 44 hours of actual driving from an accredited school • Age: have to be 21 to drive a truck interstate (over-the-road from state to state), Health and Drugs: In order to work for a trucking company you must pass a U.S. DOT physical examination and a drug screen. The medical exam will be conducted by a doctor in accordance with DOT requirements. Results are documented on a DOT form. Drivers must always have in their possession the certificate showing the results of the examDriving Record: Every trucking company has its own rules about acceptable driving records for their drivers. The main issues are any violations that involve driving and alcohol or drugs, excessive speeding or recent accident problems • Education: Regulations that govern the qualifications of drivers require that all drivers be able to speak, read and write the English language sufficiently to accomplish the basic duties of a driver. These include speaking with dispatchers and customers and the public, reading street signs and the motor carrier regulations, and completing basic reports such as logbooks, bills of lading and other written records and documents

  26. Operations Findings – Dale Johnson • Establish a comprehensive operations component to the whose goal is to increase shareholder value and adhere to the stringent environmental requirements for commercial trucks doing business at the Ports of Los Angeles and Long Beach. • We as logisticians must be reasonable economist and accountants as well. The Clean Trucks Program at the Port of Los Angeles (POLA) will cost the port complex approximate $2bn and private industry $500m. Note that these estimates were made during a favorable economic climate and most likely won’t be as widely available now. Therefore, a large infusion of capital without proven profitability is highly unlikely. Furthermore, “clean air” is not a selling point in most board rooms. This was the insight given by an influential industry contact • Operations: -Operations encompasses the execution of our plans. In order to ensure that we operate in a way that maximizes shareholder value we must operate within efficient minimum scale or economies of scale. Ways to do this are: • Build partnerships with established firms with a strong presence in the Port Complex (i.e. superior trucking- Class I firm) • Establish operations close enough to reach the POLA/POLB Phase I subcontract to superior to do drayage Phase II: Establish a facility that accepts Long Haul truckers from out of state (or not included in Clean Trucks Jurisdiction) to bring into the POLA/POLB and the other way around. - City of Carson close to freeways, avoid the unions - Minimizing cost through purchasing equipment that keeps fuel costs low and exempts our clients from having to pay port imposed fees for “dirty’ trucks. - Fuel cell medium range rigs - Electric Yard Utility Tractor Rigs - Create a multidimensional approach to augmenting base returns

  27. Operations continued … • Consider: • Capital and municipal grants are not as plentiful as when the Clean Trucks Program was authored • Reduced trade volumes • Weak US dollar • Rising oil pries - Oil prices have a direct impact on fuel costs and therefore the entire supply chain in the form of a fuel surcharge. - 935 trucking industry bankruptcies due to lack of sustainability • POLA is the only port engaged in this program therefore with increased costs, shippers’ incentives to go elsewhere will increase • Barriers to entry created by long established competitors •  Economics: Factors and Opportunity Costs to Consider •  First we must think of the operation in terms of opportunity costs and the three economic factors of land, labor, and capital. • Land: buildings, loading bays, blacktopping, K-rail, security features, land/building leases, operating permits, etc. •  Labor: mechanics, clerical workers, staff assistants, security guards, IT services, and drivers, janitorial, gear specialists, and contracted maintenance. • Labor for an average operation, even one of a medium scale can cost an operator an average of $400,000/week.

  28. Operations continued… • Capital: Trucks, chassis, refueling stations, rail-mounted gantries, maintenance equipment, fuel, side handlers, top handlers, Information technologies (RFID), computers, software, servers, etc. • Opportunity costs: If Independent the amount of financial capital and capital equipment used to start our firm will severely limit our organization’s ability to make choices later on. • Conclusion: The amount of capital required to start an independent operation is unreasonable. Subcontracting our drayage services to a larger, more established firm like Superior trucking is the ideal route to serve our niche market. This would allow the larger trucking firm to focus on what it is that they do best while allowing us to maximize their market share and minimize their capital costs. Furthermore, with low to no fossil fuel base vehicles freight costs would reduce dramatically. This would allow us and Superior to earn and maintain higher profits over competing firms. • Building a relationship with an established trucking firm ensures that the facilities, capital equipment, and labor exists and we wouldn’t have to front majority of the cost (DIVERSIFYING OUR RISKS). It is not wise to accept a 100% burden. Moreover, diversification means that if failure were to occur our creditors would receive the highest payback possible in the event of liquidation. • Using various grants and tax credits from state and local governments we can reduce costs per vehicle (electric and fuel cell) to $10,000-$30,000, much less than its original $150,000 price tag. Again, these trucks produce zero emissions and require little to no fuel. Therefore, age or depreciation would be a factor to consider for our trucks. •  Also in our bid to become a “green drayage” subsidiary for a larger trucking firm we would request that the company make a contribution to either retrofit or add the facilities needed to maintain these our more modern vehicles. • In terms of the community element we would have students at LBCC PCH campus involved in the green mechanics program to intern at our site and perhaps in time obtain full employment. Doing so may entitle to us more grant opportunities.

  29. Logistics continued… • Background • Our firm, in an effort to control costs, will work as an operating subsidiary for a class 1 trucking firm, specializing in green port drayage services. • The organization will operate within its mission to provide value to our partners and customers while aggressively adhering to and exceeding the environmental standards mandated by the Ports of Los Angeles and Long Beach. • The premise of operating as a subsidiary is to eliminate barriers to entry, control starting costs, and provide substantial returns for our stakeholders. • Pairing with a Class 1 trucking firm with a foothold within the industry and is regionally recognized ensures there is an established client base and therefore a steady revenue stream. Furthermore, partnership with a class 1 firm means that the organization will have access to plenty of resources including facilities, staffing, information technology, and extensive experience with industry practices and processes. • Partnering with a class 1 trucking firm also means that our firm would be allowed to specialize in one aspect of the business while the Class 1 can focus their energies on other aspects of their business. Our firm providing trucks, drivers, and various other staff prevents our partners from having to add costs to their balance sheets. • Our firm is a concessionary- with employee drivers, which is a tenant of the Port of Los Angeles Clean Trucks Programs.

  30. Logistics contiued… •  Implementation •  The organization’s fifty trucks will work around the clock- trucks will run with full container loads (FCL). This means that their schedule is not consistent but based on client’s needs. • Twenty-five trucks, based on their regular maintenance schedules, will be available to run each day. This will extend the life of our vehicles. • Maintenance will be done by our own mechanics hired and trained at local schools (i.e. LBCC) • Fifty staff truck operators will operate based on which of the twenty-five trucks are scheduled for maintenance. • Selected trucks will depart and be dispatched from our partner’s facilities. This will ensure that trucks will be routinely refueled and receive minor maintenance. • Trucks requiring total maintenance will be switched between our partners facilities and an offsite storage facilities • The trucks will operate exclusively within the Ports of Los Angeles and Long Beach complexes and our surrounding facilities. • Trucks will dray containers between terminals, particularly between those terminals without on-dock rail facilities to those terminals with such accommodations. • Trucks would be furnished by our firm, while all dispatches would be arranged by our partners and filtered to our firm’s logistics managers and dispatchers. • There will be two dispatchers (one AM & one PM) • RFID tags will be maintained by our firm’s mechanics and IT specialists. • Further operation of trucks would service out of state cargo entering into the Ports of Los Angeles and Long Beach. • Prevents complications with out of state truckers security credentials • Ensure trucks entering the port complexes are property identified and tracked. • Prevent complications with

  31. Operations ManagementBenefits of subcontracting with an established company DBA subcontracts with Superior Class 1 trucking service Established and experienced management team Large amount of financial capitol -Established debts and assets • Existing capital • Chassis • storage space • garage • Refuel Trucking experience Industry know how Existing personnel Industry experiance Ability to raise capital -creditor base AAA rating Information systems - Tracking using either Vantive or Quantum View Manage • Consistent Customer base • Reduces marketing cost • reduces transaction cost in contract negotiations Legal Department - Well versed in matters associated with the industry Familiarity with Industry and accounting standards Marketing

  32. Logistics – PK , Cassady, Jerika • 3 shifts, simply stated so that there is round the clock availability for maintenance and repairs • 12am-830am, 8am-430pm, 4pm-1230am, with 30 min overlap to account for lunches, etc •  Each shift is provided a tow truck by Superior, Superior also has the fleet maint and storage facilities where our fleet is secure .  • Each truck checked on a... 15 point check –inspecting of all vital parts of truck (i.e. bumper, fuel tanks, drive shaft…), bi weekly, normally done by night crew (4pm-1230am): in addition to inspection of complete truck every three months to ensure dependable service Each crew has 1 driver for emergency towing who can act as an “express truck” to pick up cargo from disabled trucks and continue to transport them so that cargo arrives in a timely manner. • All staff besides the emergency driver can act as techs, being very knowledgeable and able to trouble shoot problems that may arise fast and efficiently • Techs can arrive at disabled trucks and attempt to make repairs on site or tow vehicle back one of secure facilities for further assistance

  33. Logistics continued… • Internship/Training • Under Logistics we set aside money from our grant and use it to install our Internship program – for green truck maintenance – with the mandate to keep our trucks on the road 24/7 and not in the shop • Provides Education and Relevant Work/Intern Opportunities in: • -Project Team Intern • Process analysis and strategies for improved business operations in logistics management. • -Marketing Intern • Support Customer Requests for Bill of Lading, SeaFreight/Intermodal transactions. • -Technical Intern • Provides support to vehicle technician crew. Receiving hands on experiences and lessons Insurance quotes are: $9,071 per year per truck  300 CSL (Combined Single Limit) (Includes:  UMPD, UMBI) 1000 Collision, Actual Cash Value 1000 Comprehensive, Actual Cash Value  Vehicle Value (Insurance uses for reference for cost if totaled):  $110,000  Rated at:  $9071 Per year Total:  9071x50 Units = $453,550 Company:  Geico Commercial Auto trucks at 300csl and 1000/1000 was $1550 per truck, per 6 months.

  34. ADMINISTRATIVE LAW – Federal, state and local regulations, environmental compliance • Trucks • Clean Trucks The Port of Long Beach has launched a Clean Trucks Program that will reduce air pollution from harbor trucks by more than 80 percent by 2012. 

Beginning October 1, 2008, 1988 and older trucks were banned. Beginning January 1, 2010, 1993 and older trucks will be banned, and 1994-2003 trucks will need to be retrofitted or replaced. The program progressively bans all trucks that don't meet 2007 emission standards by 2012. The Port of Long Beach recently awarded subsidies for 100 new trucks, of which 98 were alternatively fueled liquefied natural gas (LNG) models. The trucks will add to a growing local fleet of less polluting vehicles which, under the Port's Clean Trucks Program, will reduce truck-related air pollution by 80 percent by 2012. Also, a new round of grants has begun that will subsidize as many as 1,000 more clean trucks. • Zero emissions – diesel emission control As of January 1, 2009, all verified diesel retrofits sold and installed must comply with the 2009 nitrogen dioxide (NO2) emissions limit as defined in the Verification Procedure, Warranty and In-Use Compliance Requirements for In-Use Strategies to Control Emissions from Diesel Engines (the Procedure), title 13, California Code of Regulations, sections 2700-2710. CARB. • LEGAL ASPECTS ( Lead- Yim Lincoln, Bruce Kinnear, Jeremy Roston)

  35. Legal continued… c. Truck size. The California Vehicle Code (CVC) limits height to 14 feet and width to 8.5 feet. The basic length limit for all single unit vehicles is 40 feet; however, length exceptions are given for buses and motor homes up to 45 feet on certain routes. Combination vehicles coupled together, such as a truck tractor and semi-trailer, or a truck tractor, semi-trailer and trailer, are limited to 65 feet, or 75 feet, or may be unlimited depending on the route. In addition, legal trucks in California must not exceed a kingpin-to-rear-axle (KPRA) length of 40 feet. Truck lengths and routes are discussed in detail in the Caltrans fact sheet Truck Route Classifications. d. Maximum weight limits The maximum overall weight limit is 80,000 pounds. The CVC also specifies maximum axle weight limits as well. Generally, the maximum allowable weights are 20,000 pounds on single axles and 34,000 pounds on tandem axles equipped with the proper tire weight capacity ratings. e. State route restrictions. There are approximately 20 state route segments with specific truck restrictions, including number of axles, gross weight, length, and cargo type (flammables, explosives, radioactive materials).

  36. Legal continued… • 2. Government Agencies • US EPA ( Environmental Protection Agency ) • Smart Way Transport voluntary program • EPA’s SmartWay transportation programs result in significant, measurable air quality and/or greenhouse gas improvements while maintaining or improving current levels of other emissions and/or pollutants ( pasted sentence) while this is a voluntary act to follow it would most definitely keep us below any legal emission standards and keep us in a good light with the community. http://www.epa.gov/SmartwayLogistics/newsroom/documents/smartway-e-update-may-07.pdf • http://www.epa.gov/smartway/basic-information/index.htm • Co-op business= smartway provides a list of other businesses acting in partnership with the smartway transport program, these are the ideal businesses to partner with. http://www.epa.gov/otaq/smartway/transport/partner-list/ CARB ( California Air Resource Board ) In December 2007, the California Air Resources Board (ARB) approved a new regulation to reduce emissions from drayage trucks at California’s ports and intermodal rail yards. • In general, the regulation requires emission reductions from drayage trucks as well as recordkeeping and reporting to help monitor compliance and enforcement efforts. • Truck drivers must provide motor carrier contact information to enforcement officers, if requested; truck owners are required to register their trucks in the State administered Drayage Truck Registry (DTR), ensure their trucks meet emission standards by the appropriate deadline dates and ensure that emission control technologies are functioning properly; motor carriers must ensure that dispatched trucks are compliant with the regulation, provide a copy of the regulation to truck owners, and keep dispatch records for five years; and terminals are required to collect information from each noncompliant truck entering their facility and report it to their respective port or rail authority, who then reports this information to the Air Resources Board.   The regulation requires truck owners to register their trucks in the State run Drayage Truck Registry by September 30, 2009.

  37. Legal continued… • California Department of Transportation – Office of Truck Services • The Department of Transportation has the discretionary authority to issue special permits for the movement of vehicles/loads exceeding statutory limitations on the size, weight, and loading of vehicles contained in Division 15 of the California Vehicle Code. Requests for such special permits requires the completion of and application for a Transportation Permit. • The Transportation Permits Branch is responsible for the administration of the Transportation Permit program through the uniform issuance of Transportation Permits. B. LABOR AND EMPLOYMENT LAW • 1. OSHA a. Section 5(a)(1) of the OSH Act, often referred to as the General Duty Clause, requires employers to "furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees". Section 5(a)(2) requires employers to "comply with occupational safety and health standards promulgated under this Act". • b. OSHA is preempted by Section 4(b)1 of the OSH Act from • enforcing its regulations if a working condition is regulated by another Federal agency. •   For example: - * While traveling on public highways, the Department of Transportation (DOT) has jurisdiction. However, while loading and unloading trucks, OSHA regulations govern the safety and health of the workers and the responsibilities of employers to ensure their safety at the warehouse, at the dock, at the rig, at the construction site, at the airport terminal and in all places truckers go to deliver and pick up loads. • * While operating at an airport, if there is an operational plan negotiated between the carrier and the Federal Aviation Administration (FAA) that covers a working condition, then the FAA has jurisdiction. • * Due to the DOT brake regulation, OSHA does not cite for failure to chock trailer wheels if the vehicle is otherwise adequately secured. DOT's regulation preempts enforcement and DOT has jurisdiction. However, if the vehicle is an intrastate truck, OSHA has jurisdiction. Only another Federal agency may preempt OSHA's jurisdiction.

  38. Legal continued…. • 2. Union • a. According to an L.A. Times article, dated 3 Mar 09, there was a demonstration at Swift Transportation and Southern Counties Express in Wilmington, who have recently “purchased hundreds of new, clean trucks under subsidies for use in the port.” . In order to comply with a new city requirement for drayage firms, and “Under the new concessionaire agreements, shipping companies that do port drays will have to employ 20% of their drivers by the end of the year and 100% by 2012.” The teamsters were demonstrating to organize drivers who were employed under this requirement during the previous six months. • b. We will need to consider this requirement to hire drivers as employees and the resultant workers compensation insurance and benefits costs. •   3. Contract Negotiation • a. We will need to hire a contracts specialist, or in the alternative, retain a legal firm to handle the contracts. • b. I have contacted The Law Offices of Paul E. Antill, whose firm specializes in performing all legal details and documents necessary for a start-up trucking company. • 1. http://www.paulantill.net/PracticeAreas/Contracts • Billing.asp. • 2. Their retainer is $25,000 per year and $2500 per month. Work is billed by the hour at $400 per hour. • 3. They will handle all legal details, including PUC registration of each vehicle, contracts, and driver ,lease agreements.

  39. Legal continued • 4. Labor Legislation and Regulation • a. We will need to hire a Human Resources Manager to handle these requirements since we will have some employees and will be required to initially hire some drivers as employees. •   5Wage and Hour • a. Human Resources Manager is the expert in this area, salary cost is minimum $50,000. •   6Drug Test • a. A local industrial clinic will have to be named and will agree to handle our drug testing and minor on-the-job injuries. •   7. Transportation Work Identification Credentials • a. Compliance date for Port of Long Beach was 14 April 2009. All persons entering the port area are required to present a TWIC card. • b. Criminal and immigration background checks are required, all must be U.S. citizens and present a passport and drivers license. • c. Cost is $132.50 for five years. • d. Drivers can enroll in person at: TWIC Enrollment Center Suite 500 - 301 E. Ocean Blvd. - • Long Beach, CA 90802 • RISK MANAGEMENT •  Co-op business • cooperative is a legal entity owned and democratically controlled equally by its members. A defining point of a cooperative is that the members have a close association with the enterprise as producers or consumers of its products or services, or as its employees. • Worker cooperative, such as our clean truck company, is a cooperative, that is owned and democratically controlled by its "worker-owners". • Liability, Auto, Workers Compensation Insurance - All trucking companies wishing access to pickup/deliver containers must complete the Drayage Services Concession Agreement and forward the appropriate SPECIAL ENDORSEMENTS to the City of Los Angeles for the General Liability, Auto Liability, and Workers Compensation Insurance coverage required.     This process is expected to take the port approximately 30 days to complete.

  40. Legal continued…. • POLITICAL •  Internship program •  a. Develop Internship cooperation between our company and Long Beach City College / Cal State Long Beach. Promote green mechanic courses to train students to work on green and clean trucks. This program will further qualify our company for Port of LB/LA clean port grant. •  Internship agreement content to include: •  The internship experience is productive and beneficial to both parties • It outlines the obligations of the intern and the organization hosting the intern. • Beginning and end dates. • Paid rate • Job duties • Plans to develop work skills • Evaluation of supervisor • Student exit report of learning experience.

  41. Scorecard Scorecard – measures : 1- how customers see us – delivery time, reliability and performance/service -that’s PR so falls into marketing 2-financial – how our lenders, stock holders?, shareholders see us – our drivers may drive and own a piece of the co-op but are we letting them down or able to project a show of profit by our formula for success?- Joseph that is your department to elaborate on but do not re-invent the wheel – just surmize in a paragraph or two Internal Business- quality of service, cycle time – this may appear to be a Human resource issue Lastly but not least – can we continue to improve and create value – this is open to all of us – my input here is the implementation of the scorecard as a way to measure how we are doing at any given time.

  42. Peterbilt 386 day cab Hybrid – Diesel Model 386 LNG day cab, and a Model 386 hybrid 63-inch UnibiltUltraCab sleeper equipped with an Eaton Electric Hybrid Drive System that is currently being tested by Wal-Mart.That Model 386 marks a new area for development of commercial truck hybrid products, which up till now have focused on medium-duty applications such as utility trucks, pick up and delivery and waste management. There are six of these Peterbilt/Eaton units currently in field tests. The Peterbilt Smartway-certified Model 386 hybrid tractor is expected to reduce CO2 emissions by almost 45 tons per year, as compared to its diesel counterpart.

  43. References…. www.srinternational.com www.logisticsworld.com/logistics/international.htm Logistics - Wikipedia, the free encyclopedia www.penskelogistics.com logistics.about.com www.limcologistics.com www.export.gov/logistics Real Business Information – Logistics Management Entrepreneur Connect Entrepreneur.com Daily Dose econnect.entrepreneur.com/?cam=connect&cid=topnav And the valuable input of each team member

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