TC Ontario Region TSES Phase 11

1. TC Ontario RegionTSES Phase11 Study Results, Recommendations for Implementation May 20, 2003

2. Phase 11: Purpose & Objectives • Pilot Study (Phase 1): Proof of Concept • Demonstrated truck tractor logs as a fruitful and increasingly abundant source of empirical data on border wait-times, other related delays & capacity constraints in the highway system • Phase 11 Objectives: Move beyond “proof of concept” to : • Clarify effective ways & means to initiate & maintain the electronic interchange of proprietary data on wait-times at major Ontario border crossings. • Identify/estimate the total costs of implementing a scalable program of electronic data gathering 7 in-house data management. • Elicit a broad base of participation & support for such a program from the carrier community.

3. ….…..Where have we been ! • We have looked at both (Satellite & GPS) technology options from top-bottom. We know: • the strengths & limitations of each • the technical options, and practical applications that exist, and • the cost of building a data set in successive increments • Interest remains strong at both the association and individual carrier level. • progress made, carrier by carrier, abetted by the fact we can demonstrate alternative ways, means and costs of generating the required data elements

4. ….…..What do we know ! • What to remember, as we move forward (i.e rules of thumb, or lessons learned) • Two (2) technology options means, two (2) distinct data sources. Both can be used, to increase sample size, but each differs in certain fundamental respects • proposed solutions are based on “ready-use” applications, that require little or no custom programming, or concerted R&D efforts • all start-up costs are clearly visible, and are comparable to those incurred by carriers subscribing to any particular service • ongoing operating costs arelinear; i.e. unit charge/data reading escalates directly relation to volume of traffic coverage..

5. ……..What do we know (cont’d) • the project is fully scalable, we can start small & expand in increments as additional carriers & service vendors agree to participate • the singular focus of attention on border “wait-times” is more straight forward technically, more cost-effective, and all but eliminates any perception of regulatory oversight, that would arise if compiling a broad cross-section of data on the entire O/D trip. • there is no compelling operational reason to limit attention to any one particular crossing, once carrier access is granted and interface with the host network(s) is established, data can be generated from any/all Ontario crossings.

6. Tracking Technology Options • Technology service options • CanCom Satellite tracking • GPS-based tracking • Similarities • Real-time (position) tracking, 2-way communications • Precision/accuracy, extent of geographic coverage • System reliability, data logging & storage capacity • Differences • Network structure • Scale of operations, existing market shares, and most notably, • How the actual location, or position signal is generated

7. CanCom Satellite System Service • Technology Components • CanCom lease-in-perpetuity on former Anik family of telecommunication satellites • Exclusive Canadian.distributor of QualComm’s proprietary OmniTRACS technology • Network Service Elements • Automatic vehicle tracking; I.e. position polling • 2-way communications, via digital text-messaging • Data storage, data mgmt.services, including (optional)integration with“back-office” functions; I.e. route planning, dispatch, accounting, payroll • Scale of Operations • Only “satellite” service provider in Canada • Operations Centre processes more than 3M transaction per month • 400 Canadian fleets; I.e.,23 of 25 largest truckload carriers • 27,000 mobile units in service, @ 20% of registered t-trailer units

8. Satellite Positioning v.Wait-time Measurement • Despite its inherent functionality, there is a glitch when using the CanCom system to measure wait-time at border crossings • CanCom position polling is done via traditional satellite triangulation: • Polling typically done at 1 hr, intervals, • With each poll time-stamped and long/lat coordinates recorded • Frequency of polling interval can be increased – at considerable cost – to provide a continuous stream of readings, but • Unlike a truck-mounted GPS unit, the satellite system can’t be programmed to initiate a position poll at a pre-defined location, or specific set of long/lat coordinates, such as the entry & exit points of a Can/U.S. border crossing

9. What are the viable CanCom options? • Given its ubiquitous market presence, & the sheer volume of trip data routinely processed/stored in the CanCom system, we can hardly afford to ignore, or omit CanCom from further consideration • Basically, we are left with two options: • Macro Messaging. • Interpretation of existing Trip Data Streams • Both are practical, albeit “2nd best alternatives” • points in favor & against each • both lack reliability & precision of GPS readings • More on these options after reviewing accessible GPS options in greater detail

10. GPS System Service Options • GPS based service providers operate in a multiple-vendor market, where barriers to entry/exit are less prohibitive, and various firms , with comparable technology sets, compete to provide a differential array of tracking services • GPS System Configurations • GPS application service providers are typically smaller, • with a shorter, but by no means insignificant, list of client carriers, and most notably, • The actual service provided may differ, based on each vendor’s particular system configuration • This vital, latter distinction can best be illustrated by specific examples

11. Air IQ Ltd. • GPS combined with Cellularto provide a mobile communications service network • AirIQ operates on a different scale, and at a lower price-point than CanCom, to offer a similar array of tracking, data logging & network management services • Features: • Real-time tracking & position polling • 2-way digital communications • web-based subscriber access • on-board (downloadable) data storage bus (70 days, FI/FO) • on demand “Vehicle History Replay” with hi-resolution mapping interface • Polling on demand, at predefined, or specified locations • actively markets a “Boundary Crossing” feature

12. Turnpike Global Technologies Ltd. • GPS mobile technology integrated with vehicle, on-board Electronic Control Unit (ECU) • TGT foregoes real-time tracking & mobile communications in favor of data logging and reporting on vehicle operating performance, engine diagnostics, vehicle routing and mileage. • In effect, TGT offers the equivalent of an Electronic Tachograph Card • Features: • polling at pre-defined, or specified locations • data logging • Vehicle performance & activity reporting • IFTA fuel tax allocation & IRP reporting

13. 3rd Party Derivative (IFTA)Applications • TGT has successfully expanded its primary (vehicle diagnostics) service offering to include IFTA/IRP fuel tax allocation and reporting for both its own and CanCom subscribers. • This reflects an element of convergence,within this industry sector, which has productive implications for TC’s analytical efforts: • precise identification of jurisdictional boundaries is a primary element of IFTA/IRP reporting • TGT’s experience in data analysis/interpretation for IFTA purposes is an asset/opportunity that will enhance our ability to work within the limitations of the CanCom data base • The quality and legitimacy of IFTA reporting standards is well established and largely beyond refute.

14. Border Crossing Times Study

15. Call for Volunteers • TC Ontario region staff drafted a call for volunteers for the Border Time Crossing Study to be posted on the Ontario Trucking Association (OTA) web-based newsletter • Three interested trucking companies came forward initially: • Challenger Motor Freight • Bison Transport • Empire Transportation and have offered unqualified support and participation • This voluntary solicitation not only laid the foundation for bilateral discussions with these 3 carriers, it has also abetted our efforts to engage the interest of additional carriers (I.e. carrier by carrier)

16. Turnpike Global Technologies (TGT) • Turnpike provides a GPS tracking system called “Route Tracker” as well as fuel tax reporting services for Route Tracker and CanCom customers • Like an “electronic tachograph” the Route Tracker system combines information from the engine control module (J1708) with data generated by GPS to provide a detailed fingerprint of each trip • Data is recorded at frequent intervals i.e, every mile or every two miles depending on speed • This information is stored for up to 7 years for IFTA purposes

17. TC’s Crossing Times Wish List • To estimate border crossing times at least two GPS polls (and associated variables) are requiredon each side of the border, with additional polls programmed at pre-defined intervals to create a set “border zone” • At a minimum, TC wants to profile the border crossing times by date, time of day, and day of week. • Ideally TC would then consolidate the data by origin & destination, carrier type and SCTC classification number where possible. • Desired outputs include crossing time averages and variability for Canada and US-bound trips.

18. TurnPike’s Existing Data Set • TGT’s data base is comprised of historical border crossing data for the Bluewater, Ambassador and Queenston-Lewiston and Peace Bridges. • The existing database includes almost 11,000 truck trips • The historical time-series includes observations from December 2001 to March 2003 • Summary data can be generated on demand in a variety of reporting formats. • New border crossing data is compiled and the aggregate data set is updated on a weekly basis. • This ongoing data can be accessed by TC, at an additional cost, as it is compiled & processed on a weekly/monthly basis.

19. TGT Cost Estimates

20. Ongoing Efforts ……. Next Steps • TC Ontario Region has engaged Turnpike Global Technologies (TGT) to customize their program software and complete the analysis of their (12/01-07/03) data records in accordance with TC specifications : • analysis of the existing historic records will provide useful baseline data and the foundation for a collaborative partnership with a GPS data management specialist • the custom program software will include sufficient functionality, one, to generate wait-times within a pre-defined “border zone” as well as the actual crossing, and two, to import additional data from other external sources. • Total Cost $21,680.00 Completion date: 08/03 • Upon successful completion of the initial contract, TC anticipates procuring additional border wait time data from TGT on an ongoing (weekly/monthly)basis. • Total Cost @ 25-30K/annum

21. Ongoing efforts …Next Steps (cont’d) • The potential exists to negotiate a similar contractual agreement with AirIQ to procure border crossing data on an ongoing (weekly/monthly) basis. • Discussions with AirIQ have been ongoing and data access/procurement options have been discussed at length • Detailed negotiations awaiting only “carrier consent to access data records” before proceeding • Estimated Cost:$25K/annum for 100 crossings/day, based on $0.20/data entry (negotiable depending on volume), plus Start-Up costs (nominal) • Depending on the results of TGT’s development efforts raw data procured form AirIQ, and other potential sources, could be imported into the TGT software model

22. Other Related Intiatives …Next Steps • In light of the limitations cited respecting the CanCom data base, Macro-Messaging is the only immediately apparent option to generate wait-time data via the CanCom network: • Macros are preformatted sub-routines to facilitate ease of text messaging • 2 simple Marcos, delineating entry/exit at border crossings, would be activated by drivers with little more than 2 keystrokes • Discussions with CanCom have determined the costs of initiating this option to be @ 10K/annum per 100crossings/day, plus $15K start-up costs, plus @$7K /annum for Q Mass subscriber renewal fees.

23. Other Related Initiatives …Next Steps • Considering the extent of CanCom’s market reach, we believe Macro-Messaging to be a viable option; however, two mitigating factors warrant further consideration before proceeding: • Initial carrier reaction to the Macro messaging option is skeptical, or lukewarm at best. They question the reliability of driver intervention, otherwise noting any intervention is “not part of current business process” • The emergence of TGT ltd, with it existing Q Mass access to CanCom data and corresponding expertise in data interpretation for IFTA/IRP reporting, presents an opportunity for us to work in collaboration with both to further assess derivative way/mean to fine-tune and/or interpret existing trip data streams.