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TRANSPORTATION BORDER WORKING GROUP SEATTLE, WASHINGTON APRIL 17TH 2012 QUÉBEC TRUCKING SURVEY

TRANSPORTATION BORDER WORKING GROUP SEATTLE, WASHINGTON APRIL 17TH 2012 QUÉBEC TRUCKING SURVEY. NEW REALITY AT THE BORDER. Better understanding of border-related transportation issues Traffic volumes decreased between 2000 and 2010*: Total vehicles: - 25% Trucks: - 32.6% 2007-2011: -19%

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TRANSPORTATION BORDER WORKING GROUP SEATTLE, WASHINGTON APRIL 17TH 2012 QUÉBEC TRUCKING SURVEY

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  1. TRANSPORTATION BORDER WORKING GROUPSEATTLE, WASHINGTONAPRIL 17TH2012QUÉBEC TRUCKING SURVEY

  2. NEW REALITY AT THE BORDER Better understanding of border-related transportation issues Traffic volumes decreased between 2000 and 2010*: Total vehicles: - 25% Trucks: - 32.6% 2007-2011: -19% Significant compliance to security requirements at the border Important proportion of carriers accredited to trusted travelers programs Overall, post 911 security context seems assimilated by the industry * Statistique Canada, Northbound traffic

  3. SURVEY OBJECTIVE AND METHODOLOGY Objectives: Identify new ways to support the industry, contribute to stimulate trade and maintain security Acknowledge 2011 carrier’s preoccupations Methodology: Consultant firm: Jolicoeur et Associés Sample: Québec carriers registered to U.S. DOT from all sizes and regions 752 phone interviews (March 2011) : 469 still doing business into the U.S. Margin of error: 2.94% / Answer rate: 75.05%

  4. SURVEY VERIFIED VARIOUS ASPECTS OF INTERNATIONAL TRUCKINGAT THE QUÉBEC BORDER WITH THE STATES OF NEW YORK, VERMONT,NEW HAMPSHIRE AND MAINE (complete report available upon request) Carrier profiles Export activities Port of entries mostly used to enter United States and come back to Canada Accreditation to Trusted Traveller’s programs Document used to comply with WHTI Border delay perception Access to proper information Most challenging requirements Solutions proposed to increase fluidity without compromising safety

  5. C-TPAT, (CUSTOM-TRADE PARTNERSHIP AGAINSTTERRORISM) • 2008: Previous survey* indicated: • 38% of Québec carriers registered to U.S. DOT were C-TPAT approved • 55.2% see no benefit in being accredited • 46.3% had no intentions of asking accreditations • 2011: • 47% of Québec’s carriers registered to U.S. DOT were C-TPAT approved • Highest accreditation rate among carriers operating 20 trucks or more and hiring 16 drivers or more • PIP (Partners in Protection): • 72% of carriers crossing the border are not PIP members *2008 C-TPAT/FAST survey conducted by Jolicoeur et Associés for the Ministère du Développement économique, de l’Innovation et des Exportations du Québec

  6. FAST (FREE AND SECURE TRADE) FAST membership: • 2009: 82 000 • 2011: 68 000 2008 • 46% of drivers crossing the border were FAST approved 2011 • Up to 50% of drivers employed by carriers having activities in the United States are FAST approved The program is popular with small and large businesses • 40% of carriers have between 76% and 100% of their drivers FAST approved • 50% of carriers owning one truck (owner-operators) are FAST approved

  7. BORDER DELAY PERCEPTION* Average delays to cross the border is approximately 35 minutes ** *Wait times were not provided by drivers but dispatchers, conformity agents, etc. **Delays includes: queues export controls, custom clearance, inspections, etc.

  8. ISSUES CONTRIBUTING TO BORDER DELAYS

  9. MOST CHALLENGING ISSUES FOR TRANSPORTATION BUSINESSES 25% of carriers consider that most binding challenges are not among those suggested in the survey. Among those: Length and frequency of inspections (20%) Customs officers efficiency and zeal (21%) Custom broker involvement (15%)

  10. SOLUTIONS PROPOSED BY CARRIERS TO FACILITATE BORDER CROSSING AND TO REDUCE BORDER DELAYS

  11. SURVEY CONCLUSIONS Main issues: lack of booths and custom officers (43%) and lack of coordination with custom brokers (34%) 17% of carriers observe no issues at the border Average wait times: 35 minutes Among border issues, the most challenging are: Queues (38%), lack of harmonization (38%) and the excess of paperwork required(30%) 8 carriers out of 10 have easy access to relevant information and email and Web sites remains the best communication mechanism Solutions suggested: Increase the number of custom officers Standardize processes and training Reduce the amount of paperwork and stakeholders involved

  12. BEYOND THE BORDER ACTION PLAN MEASURES MEET CARRIERS PREOCCUPATIONS Part I - addressing threats early: CBSA/Transport Canada Targeting Initiative relying on the examination of inbound marine cargo arriving at the Port of Montréal destined to the United States by truck Part II - Trade facilitation, economic growth and jobs: Hamonization of PIP and C-TPAT, new benefits and automated enrolment system Extension of FAST benefits to members at agreed locations by mid-2012 Enhancement of facilities to support trusted and trader and traveller programs: Review of the FAST program to determine if future investments are warranted and at which locations: By June 2013, expansion of Nexus lanes and booths at 9 locations in Canada, including Lacolle in Québec

  13. BEYOND THE BORDER ACTION PLAN MEASURES MEET CARRIERS PREOCCUPATIONS Part II: Trade facilitation, economic growth and jobs (continued): • Implementation of additional pre-inspection and preclearance initiatives • Negociation of a preclerance agreement for land, rail and marine mode to provide necessary legal framework • Full preclearance of goods and passengers at Massena, NY • Truck Cargo facilitation pilot project in Canada (location to be determined) • CBSA and CBP will provide a single window through which they can electronically submit all information required to comply with customs and other government regulations • Coordination of border infrastructure investment and upgrade of physical infrastructure at key crossings to relieve congestion and speed traffic

  14. Thank you! Dave Henry Ministère des Transports du Québec (418) 644-4719 ext. 2351 dave.henry@mtq.gouv.qc.ca

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