United States/Mexico Cross-Border Long-Haul Pilot Program

John Poole III, Texas28th Annual IFTA Business Meeting

Virginia Beach, VirginiaAugust 17, 2011

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US/Mexico International Border

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US/Mexico Cross-Border Activity CY 2010

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• 2,395,916 northbound trucks crossed the US/Mexico International Border through Texas in CY 2010

• 822,803 northbound trucks crossed the US/Mexico International Border through Texas as of March 31, 2011

• 71,122 northbound buses crossed the US/Mexico International Border through Texas in CY 2010

• Texas has 28 active IRP accounts reporting 4,607,094 non-prorated miles in Mexico

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US/Mexico Cross-Border Activity CY 2010

• September 7, 2009: FMCSA initiated the Demonstration Project allow up to 100 Mexican motor carriers to travel beyond the commercial zones into the US

• March 11, 2009 – The Project was terminated

• March 19, 2009 – Mexico exercised its rights to impose retaliatory tariffs / approximate annual cost of $2.4 billion

• January 18, 2011 – Discussions commenced with Mexico to reinstate the Project

• March 3, 2011 – US and Mexico announced there is a “clear path forward” to resolving the trucking issues between the two countries

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United States/Mexico Cross-Border Long-Haul Pilot Program

• FMCSA Federal Register Notice – April 13, 2011

• FMCSA response to public comments was published on July 8, 2011

• Expected start date of program is within 3 – 4 months

• Mexico-domiciled motor carriers may operate through US and Canada for up to 3 years

• US-domiciled motor carriers will be granted reciprocal rights

• Participating Mexican motor carriers will be required to comply with ALL state and federal requirements

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United States/Mexico Cross-Border Long-Haul Pilot Program

• Prohibits transport of placardable quantities of hazardous materials

• Authority granted for international cargo – only

• Security screening

• Liability Insurance

• Emission Control Label

• Federal Motor Vehicle Safety Standard (FMVSS) – Canadian Motor Vehicle Safety Standards (CMVSS)

• Electronic Monitoring Devices

• General Requirements for Drivers

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United States/Mexico Cross-Border Long-Haul Pilot Program

• Nine Mexico-domiciled motor carriers participated in Demonstration Project

• Mexico-domiciled apportioned registrants will comply with ALL registration requirements

• Training requirements for regional and headquarters staffs

• Review cost of personnel, equipment and other resources

• Records checks and audit requirements

• Language concerns

• US-based motor carriers may require assistance

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United States/Mexico Cross-Border Long-Haul Pilot Program

• Sub-committee of the IRP International Committee; commissioned by the IRP Board of Directors

• Basis for the sub-committee

• Committee representation

• First conference call – July 14, 2011

• Training for jurisdictional employees

• Training for IRP/IFTA jurisdictional motor carriers

• Funding to support jurisdictional cross-border program operations and outreach/training initiatives

IRP/IFTA Cross-Border Sub-Committee

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United States/Mexico Cross-Border Long-Haul Pilot Program

• Develop list of jurisdictions’ need for implementing program

• Create a statement of work for the sub-committee

• Each border state contact FMCSA State Division Director’s Office

• Review information from the last pilot program for its application to new program

• IRP, Inc. will contact FMCSA to discuss the formation of the sub-committee

IRP/IFTA Cross-Border Sub-Committee

Questions/Comments?

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United States/Mexico Cross-Border Long-Haul Pilot Program