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November 3, 2004 Vol. 4, No. 15

Table of Contents
Welcome
Coming up in Modern Bulk Transporter
CTA says US FAST driver program on hold at border
Bush signs biodiesel tax incentive law
Production of several petrochemicals increases 18 percent
Vopak, Cosco Logistics form new China venture
Valero, Kaneb merge terminal, pipeline entities
Ports, auxiliary facilities face growing pains
FMCSA issues clarifying proposal for HOS requirements
Teamsters, institute team up on smoking prevention
People
Suppliers
Events
Calendar
The 2004 Tank Cleaning Directory is online!!!


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Welcome
Bulk Logistics Trends is compiled by Modern Bulk Transporter magazine Editor Charles Wilson and Associate Editor Mary Davis.

More news can be found in Modern Bulk Transporter and on its Web site at bulktransporter.com.


Coming up in Modern Bulk Transporter
Anyone planning new vehicle purchases will want to check out the comprehensive listing of medium and heavy-duty trucks in the November issue of Modern Bulk Transporter. The issue also highlights the customized on-board tracking and communication system developed for a Canadian petroleum hauler.




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NEWS
CTA says US FAST driver program on hold at border
According to the Canadian Trucking Alliance (CTA), US Customs will not start turning back Canadian trucks November 15 at the US/Canada border despite a US Trade Act requirement. The US regulation requires all drivers who wish to continue to participate in the (BRASS) line release program to be registered for FAST by November 15.

The regulation, titled 19CFR123, specifies that truck carriers carrying Border Release Advanced Screening and Selectivity (BRASS) merchandise may only utilize drivers who are registered under the Free and Secure Trade (FAST) program and carry a valid FAST driver card, according to US customs information.

The Canadian alliance calculated that at present rates it could take 15 weeks to eliminate the backlog of drivers who were awaiting interviews as of September 30, "let alone all the new drivers who have become attracted to the FAST process following the more widespread understanding of the FAST/BRASS requirement."

The CTA information followed a meeting with representatives from the alliance and US customs October 22 when the alliance expressed its concerns about meeting the November 15 deadline. CBP also informed CTA that about a third of all FAST driver applications are being rejected because of administrative errors by the applicants.

CTA said US customs officials will not start levying fines against carriers that have not been able to get enough drivers into the system and will follow a practice of "informed compliance" for a reasonable period of time. CBP also agreed to examine whether fines should be levied against shippers when the program becomes fully operational, CTA said.


Bush signs biodiesel tax incentive law
President Bush has signed into law a bill containing the first biodiesel tax incentive, according to the National Biodiesel Board (NBB). The tax incentive, which is structured as a federal excise tax credit, amounts to a penny per percentage point of biodiesel blended with petroleum diesel for first-use oils (like soybean oil) and a half-penny per percentage for biodiesel made from other sources (like recycled cooking oil). The incentive is expected to increase biodiesel demand from an estimated 30 million gallons in fiscal year 2004 to at least 124 million gallons per year, based on a United States Department of Agriculture study. However, depending on a number of other factors including crude oil prices, the industry projects that demand could grow much higher than that in the next decade, according to NBB.




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Production of several petrochemicals increases 18 percent
A petrochemical production increase of 18 percent has been reported for the third quarter of 2004, according to information from the National Petrochemical and Refiners Association (NPRA). The petrochemicals surveyed include ethylene, propylene, butadiene, benzene and mixed xylenes, and the largest volume first and in some cases, second derivatives of these petrochemicals.

Petrochemical production surveyed indicated production of 53.9 billion pounds, up from 45.9 billion pounds a year ago. An increase of four percent was reported above the 2004 second quarter. In addition, the survey showed that total 2004 third quarter inventories of six petrochemicals reportable was 3.5 billion pounds, a decrease of nine percent from the same quarter in 2003.

NPRA regularly surveys the US petrochemical and refining industries on a quarterly basis regarding production of 19 petrochemicals. VERIS Consulting, LLC conducts the survey for NPRA. NPRA also surveys end of the quarter inventory levels for eight of those petrochemicals. Data are only reported if they meet NPRA policy for minimum number of reporters and maximum share of a statistic by any one reporting company, according to NPRA.


Vopak, Cosco Logistics form new China venture
Vopak North China BV and Cosco Logistics Co Ltd are forming a chemical logistics service in which Cosco will provide truck, barge, and warehouse space in conjunction with access to Vopak's five chemical terminals in China. The Vopak terminals have a capacity of over 600,000 cubic meters. Cosco will handle the chemicals for feeder services in China's Yangtze River and Pearl River Delta.

The new venture will operate out of Shanghai, Ningbo, Tianjin, and Guangzhou, and is expected to be in operation in the first quarter of 2005.


Valero, Kaneb merge terminal, pipeline entities
Valero LP, Kaneb Services LLC, and Kaneb Pipe Line Partners LP have executed definitive agreements to merge Valero LP and Kaneb Partners in terminal operations and petroleum liquids pipelines. The assets of the combined partnership, which will retain the Valero LP name, will include approximately 9,700 miles of pipeline comprised of approximately 6,900 miles of refined product pipelines, 800 miles of crude oil pipelines, and a 2,000-mile anhydrous ammonia pipeline. The combined partnership also will own 101 terminal facilities in 30 states, Canada, Mexico, the Netherlands Antilles, Australia, New Zealand, and the United Kingdom, as well as four crude oil storage tank facilities. The combined system will have approximately 85 million barrels of storage capacity.



Ports, auxiliary facilities face growing pains
The Department of Transportation (DOT) is taking a comprehensive look at how the growing pains of the US maritime sector and its auxiliary facilities can be eased, said Jeffrey Shane, DOT under secretary for policy. He made the comments at a conference in New Orleans LA October 28.

Port facilities and the highway and rail networks that serve them are being stretched to their limits as cargo volumes increase, ships grow larger, and highways become more congested. In 1970, overseas trade accounted for only 13 percent of US gross domestic product (GDP) while today the trade accounts for nearly 30 percent. The nation's transportation system now carries more than 15 billion tons of freight annually, valued at over $9 trillion, and even the most conservative forecasts suggest that overall freight volumes will grow by another 60 percent by 2020, he said.

Shane said that improvements will require significant investments from both the public and private sectors.


FMCSA issues clarifying proposal for HOS requirements
The Federal Motor Carrier Safety Administration (FMCSA) is clarifying that motor carriers have "the duty" to verify the accuracy of drivers' hours of service (HOS) and records of duty status (RODS), according to information published in the Federal Register November 3. In addition, the obligation extends to the HOS and RODS of independent drivers or owner-operators while driving for the motor carriers.

Motor carriers are to ensure each driver collects and submits to the employing motor carrier all supporting documents with the RODS, and ensure all motor carriers know of the requirement to maintain supporting documents in a method that allows cross reference to the RODS.

The supplemental notice of proposed rulemaking (49 CFR Parts 379, 381, 385, 390, and 395) also proposes a supporting document-based, self-monitoring system that would be the carriers' primary method for ensuring compliance with HOS regulations.

In recognition of developing technologies, the FMCSA proposes to permit the use of electronic documents as a supplement to, and in certain circumstances, in lieu of, paper supporting documents.

Comments on the proposal must be received by January 3, 2005. For more information, click here for the notice in the Federal Register.


Teamsters, institute team up on smoking prevention
The Teamsters Union and the Dana-Farber Cancer Institute (DFCI), an affiliate of the Harvard Medical School, have teamed up for a program addressing smoking and obesity prevention. The Centers for Disease Control and Prevention (CDC) has awarded researchers at DFCI two grants totaling $3 million to develop workplace-based health promotion and prevention programs. DFCI will be working with the Teamsters Union on a study that will assess the effectiveness of a tailored telephone delivery program on tobacco use and weight management for motor freight workers, and will provide one of the first evidence-based health-promotion programs for mobile workers.



PEOPLE IN THE NEWS
People
STEVE MATHEYS has been named chief marketing officer; MIKE MATTES has been named vice-president, sales; STEVE GOMOLL is focusing on revenue management; and PAUL JANCO has been appointed customer service director, Schneider National Inc, Green Bay WI.
JERRY WARMKESSEL, sales engineer, Mack Trucks Inc, has received the Silver Spark Plug Award from the Technology and Maintenance Council, American Trucking Associations. DAN ALLEN has been named transit business unit manager, Webb Wheel Products Inc, Cullman AL.



SUPPLIERS
Suppliers
McLeod Software Corp, Birmingham AL, has been named a preferred vendor for safety products by the American Transportation Research Institute. The preferred list was announced after the completion of the Department of Transportation-funded Hazardous Materials Safety and Security Operational Test was completed. The list is approved by Homeland Security, according to McLeod.



EVENTS
Events
Discussions on base oils, fuel and lubricant additives, waxes, and finished lubricants will headline the 2004 International Lubricants and Waxes meeting November 11-12 at the Hilton Americas Hotel, Houston TX. Sponsored by the National Petrochemical & Refiners Association, the meeting is for the refining and petrochemical industries which manufacture, distribute and market the products. For more information, click here for the meeting Web site at npra.org, or telephone 202-457-0480.

A coalition of industry trade associations and the Environmental Protection Agency (EPA) have scheduled the 2004 Ultra-Low Sulfur Diesel Implementation Workshop November 15-16 at the Astor Crowne Plaza Hotel in New Orleans LA. With the compliance date now less than 20 months away (June 2006), the workshop will provide a forum to discuss the many concerns of the fuels industry regarding the new low-sulfur diesel rules, as well as the recently promulgated ULSD rules for non-road vehicles effective June 2007, and their potential impacts on the supply and distribution chain throughout the overall diesel fuel production, transportation, distribution, and user industries.

Co-sponsors of the workshop include the National Tank Truck Carriers, National Petrochemical and Refiners Association, the American Petroleum Institute, the Association of Oil Pipelines, the American Trucking Association, the Independent Fuel Terminal Operators Association, the Independent Liquid Terminals Association, the National Association of Convenience Stores, the National Association of Truck Stop Operators, the Society of Independent Gasoline Marketers, and the Petroleum Marketers Association of America. Call Charlie Drevna 202-457-0480 for more information.

The 10th annual Transportation and Distribution Conference January 13-14 in New Orleans LA will include presentations on 15 new senior level case studies from chemical industry leaders sharing best practices. The event, sponsored by Chemical Week, will be at the Fairmont Hotel. For more information about the conference and the subjects to be covered, click here for the conference Web site at chemconference.com, or call 212-621-4978. Mention code: MBULK

For more transportation industry associations events and news, click here for the Modern Bulk Transporter Web site and search for your association.


CALENDAR
Calendar
November 4, 2004
National Tank Truck Carrier Regional Safety Meeting, Philadelphia PA. Click here for more information or Ph:703-838-1960.

November 7-10, 2004
TMW Systems 18th annual Client Conference and Vendor Showcase, InterContinental Hotel & Conference Center, Cleveland OH. For more information, contact Shelli Weisz at 216-831-6606 or e-mail Weisz at sweisz@tmwsystems.com.

November 9, 2004
National Tank Truck Carrier Regional Safety Meeting, Jacksonville FL. Click here for more information or Ph:703-838-1960.

November 9, 2004
Dixon Bayco USA overfill training seminar, Albuquerque NM Marriott. For more information, contact Roger Heater at Quality Trailer in Albuquerque at 505-833-5000 or Dan Burke at Dixon Bayco in Houston at 800-530-0233.

November 11, 2004
Houston Transportation Professionals Association bi-monthly meeting and program, Maggiano's Restaurant, 2019 Post Oak Blvd., Houston, TX Ph: (281) 298-9700 or access htpa.net.

November 11-12, 2004
National Petrochemical & Refiners Association 2004 International Lubricants and Waxes meeting, Hilton Americas Hotel, Houston TX. For more information, click here for the meeting Web site at npra.org, or telephone 202-457-0480.

November 13-16, 2004
Intermodal Association of North America (IANA) Intermodal Expo/TransComp exhibition, Henry B Gonzalez Convention Center, San Antonio TX. Ph: (866)438-EXPO.

November 13-17, 2004
National Industrial Transportation League annual meeting and TransComp Exhibition, Henry B Gonzalez Convention Center, San Antonio TX. For more information click here for the NITL meeting Web site.

November 15-16, 2004
2004 Ultra-Low Sulfur Diesel Implementation Workshop, Astor Crowne Plaza Hotel, New Orleans LA. Ph:Charlie Drevna 202-457-0480.

November 16, 2004
National Tank Truck Carrier Regional Safety Meeting, St Louis MO. Click here for more information or Ph:703-838-1960.

November 17-19, 2004
Dangerous Goods Advisory Council (DGAC) conference and exposition, Hyatt Regency, St Louis MO. For more information, click here for the conference Web site at dgac.org.

November 17-19, 2004
Expo Transporte, Guadalajara Expo Center, Guadalajara, Mexico.

November 23, 2004
Resarch and Special Programs Administration (RSPA) public hearing to prepare for the 26th session of the United Nation's Sub-Committee of Experts. RSPA meeting at Department of Transportation headquarters, Nassif Building, 400 Seventh Street SW, Washington DC. For more information, click here for the Federal Register.

November 29-December 7, Geneva, Switzerland.
United Nation's Sub-Committee of Experts, Geneva, Switzerland. For more information, click here for the Federal Register.

December 15, 2004
Resarch and Special Programs Administration (RSPA) public hearing, report on United Nation's Sub-Committee of Experts, Department of Transportation headquarters, Nassif Building, 400 Seventh Street SW, Washington DC. For more information, click here for the Federal Register.

December 1-2, 2004
The Society of Automotive Engineers truck safety, security and efficiency through technology seminar, Embassy Suites North, Phoenix, AZ. For additional details and registration information, go to sae.org.

December 3, 2004
Houston Transportation Professionals Association Annual Holiday Luncheon, Aquarium Restuarant, 410 Bagby Street, Houston, TX Phone (281) 298-9700 or access htpa.net.

December 8-10, 2004
National Tank Truck Carriers (NTTC) Executive Strategies Forum, Westin O'Hare Hotel, Chicago IL Ph: (703)838-1960

Calendar for 2005

January 13-14, 2005
Chemical Week's 10th annual Transportation and Distribution Conference, Fairmont Hotel, New Orleans LA. For more information about the conference and the subjects to be covered, click here for the conference Web site at chemconference.com, or call 212-621-4978. Mention code: MBULK

January 15-19, 2005
National Private Truck Council (NPTC), Fleet Management Institute, Renaissance Grand Hotel, St Louis MO Ph: (203)438-6244 or access nptc.org.

February 2-4, 2005
National Tank Truck Carriers, Winter Board Meeting, La Quinta, Palm Springs CA. Click here for more information or Ph:703-838-1960.

February 14-18, 2005
Technology and Maintenance Council (TMC) annual meeting and Transportation Equipment Exhibition, Tampa Convention Center, Tampa FL Ph: (703)838-1763.

February 23-26, 2005
2005 Pumper and Environmental Expo, Gaylord Opryland convention center, Nashville TN. Click here for more information.

March 3-4, 2005
The Dangerous Goods Advisory Council's 2005 Global Conference, Antwerp, Belgium. Special session to address a number of significant changes to international standards for the transportation of infectious substances March 2. More specific information will be provided at a later date.

March 28-29, 2005
National Tank Truck Carriers Tank Truck Cleaning Council, Hyatt Regency, Phoenix AZ. Click here for more information or Ph:703-838-1960.

March 30-31, 2005
National Tank Truck Carriers Tank Truck Safety Council, Hyatt Regency, Phoenix AZ. Click here for more information or Ph:703-838-1960.

March 31-April 2, 2005
2005 Mid-America Trucking Show, Kentucky Fair and Exposition Center, Louisville KY. Click here for the Web site at truckingshow.com.

April 23-25, 2005
International Milk Haulers Association annual convention, Gaylord Opryland Resort, Nashville TN. More information to come on milkhauler.org.

May 9-11, 2005
National Tank Truck Carriers Annual Conference, Fairmont Hotel, Chicago IL. Click here for more information or Ph:703-838-1960.

May 20-22, 2005
Midwest Propane Gas Convention and Trade Show, Indiana Convention Center, Indianapolis IN. Ph: 317-595-0999.

May 31-June 4, 2005
Transport Logistics Expo and International Tank Container Organization (ITCO) Village display, Munich, Germany. Click here for the Web site at itco.be.

April 2-5, 2005
Southeastern Propane Gas Conference and Trade Show, Georgia World Congress Center, Atlanta GA. For more information, click here for the conference Web site at npgasoutheastern.com.

May 20-22, 2005
Midwest Propane Gas Convention, Indiana Convention Center, Indianapolis IN. Ph: 800-319-5823 or 317-595-0999.

August 3-5, 2005
National Tank Truck Carriers Summer Board Meeting, Homestead VA. Click here for more information or Ph:703-838-1960.

September 14-16, 2005
National Association of Chemical Distributors OPSEM 2005, Fairmont Hotel, San Jose CA. For more information, click here for nacd.com.

November 7-9, 2005
National Tank Truck Carriers Cargo Tank Maintenance Seminar, Louisville KY. Click here for more information or Ph:703-838-1960.

Calendar for 2006

April 8-11, 2006
Southeastern Propane Gas Conference and Trade Show, Georgia World Congress Center, Atlanta GA. For more information, click here for the conference Web site at npgasoutheastern.com.



The 2004 Tank Cleaning Directory is online!!!
The 2004 Tank Cleaning Directory from Modern Bulk Transporter is one of our most popular issues. The directory includes geographical listings of commercial tank wash facilities including location information and services provided. Requests for an electronic version of the guide encouraged us to post the guide online at our Web site, bulktransporter.com



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