THE OFFICIAL MAGAZINE OF THE CALIFORNIA TRUCKING ASSOCIATION Caltrux Q1 SPRING 2024 CTA in Action California Bottlenecks Fighting Human Trafficking GILLIS Jim IMC
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Q1 SPRING 2024 5 TABLE OF CONTENTS Q1 SPRING 2024 FEATURES 10 CTA in Action CTA is working on legislative and regulatory issues around the state on your behalf 13 Eight Bottlenecks in California BY STEVE BRAWNER 20 Fighting Human Trafficking 31 Across the State CTA’s Lamb Fry and Casino Night 35 CTA Events CTA’s 2024 Annual Management Conference DEPARTMENTS 5 CTA Circle Club Partners & Affiliated Companies 7 CTA Staff 9 From the CEO by Eric Sauer 33 CARGO PAC Contributors 30 CTA Welcomes New Members 42 Calendar of Events 42 Advertising Resource Index ON THE COVER: 22 From Oceans to Highways Jim Gillis comes from a family steeped in the tradition of duty and service and is applying that experience to his leadership role with IMC. BY STEVE BRAWNER THE OFFICIAL MAGAZINE OF THE CALIFORNIA TRUCKING ASSOCIATION IMAGES OF JIM GILLIS ON COVER AND THIS PAGE BY GRANT ROMANCIA Caltrux
6 CALTRUX www.caltrux.org Thank you for supporting the California Trucking Association and its members! Visit www.caltrux.org to find out how you can become a CTA Partner. Executive Level Premier Level Preferred Level CTA Affiliated Companies Circle Club Partners & Affiliated Companies
Q1 SPRING 2024 7 Caltrux Caltrux, CTA's statewide quarterly magazine, is owned by the California Trucking Association and published by Matthews Publishing Group. For details about advertising, please contact the publisher at [email protected] CTA STAFF Chief Executive Officer Eric Sauer Senior Vice President of Government Affairs Chris Shimoda Vice President, Finance & Administration Matt Mandell Accounts Receivable & Member Invoicing Desiree Ochotorena Accounts Payable & Staff Accountant Vira Melnechuk Director, Government & Public Affairs Bernice Jimenez Creager Director, Government & Regional Affairs Nick Chiappe Program Assistant Hayden Tallman Membership & Marketing Manager Jeneca Kretchman Membership & Marketing Specialist Mandip Randhawa Units & Events Specialist Heather Schreindl Events Specialist Tina Ferguson TSC Outside Sales Executive Levi Ochotorena TSC Programs Manager Monique Castillo Publisher Jennifer Matthews-Drake [email protected] www.matthewspublishing.com Creative Director Fran Sherman Graphic Designer Cristian Iancu Production Manager Bernice Creager Contributing Writers Steve Brawner Dan Calabrese David Lee Cullen Kevin Jones Renee Miller David Monteith Jack Roberts John Schultz Lacey C. Thacker Photographers Christian Koszko, Grant Romancia, Blake Wilson A lot of people talk a big game, but Matthews Publishing and California Trucking Association deliver. We said we were going to improve the overall design, photography, editorial content and distribution of Caltrux and CTA’s Annual Membership Directory, and we’re proud to say we’ve held up our end of the bargain. Now it’s your turn. Advertise today in Caltrux! It’s the ONLY publication in the state of California owned by CTA and dedicated to trucking. It’s sure to provide you the biggest bang for your buck. All of our readers who see your ad are either your current customers, your ho prospects, or people who may refer you to potential customers. And, all proceeds from every edition go directly back to CTA to help elevate your voice on the issues that matter most. So, why wait? Advertise in the new and improved Caltrux today! GO AHEAD AND STARE We know we look good. Caltrux CALIFORNIA TRUCKING ASSOCIATION 2024 Membership Directory & Resource Guide THE OFFICIAL MAGAZINE OF THE CALIFORNIA TRUCKING ASSOCIATION Q2 SUMMER 2023 Caltrux CTA in Action TDC Coverage CTA Members Respond to ATRI's Critical Issues Survey Karen Vellutini Devine Intermodal Celebrating 100 Years THE OFFICIAL MAGAZINE OF THE CALIFORNIA TRUCKING ASSOCIATION CaltruxQ1 SPRING 2024 CTA in Action California Bottlenecks Fighting Human Trafficking GILLIS Jim For more information, contact the publisher at 501-690-9393 or e-mail [email protected].
8 CALTRUX www.caltrux.org
Q1 SPRING 2024 9 From the CEO As we journey into the first quarter of 2024, I am thrilled to reflect on the remarkable success of our Annual Membership Conference, hosted at the exquisite Omni La Costa in Carlsbad, California, from January 17th to 21st. This year’s conference exceeded all expectations, underscoring the unwavering dedication and collaborative spirit of our team. The Omni La Costa provided an idyllic setting for our conference, fostering an environment conducive to learning, networking, and collaboration. From captivating keynote sessions to insightful panel discussions, our meticulously curated agenda addressed the most pressing challenges and opportunities in our industry. I extend my heartfelt gratitude to our esteemed speakers, generous sponsors, and enthusiastic attendees for their invaluable contributions to the triumph of this event. A highlight of our conference was the opportunity to engage with peers and industry experts from around the globe. The exchange of ideas and best practices not only enriched our collective understanding but also forged meaningful relationships that will undoubtedly drive future collaborations. Our commitment to nurturing a vibrant community of professionals remains steadfast, and I am eager to witness the enduring impact of these connections. In addition to celebrating the success of our conference, we must recognize the dynamic landscape of the legislative arena as we navigate through the 2024 legislative session. Policymakers are grappling with a myriad of complex issues with far-reaching implications for our industry and beyond. Moreover, with 2024 being an election year, lawmakers seeking reelection are particularly motivated to secure significant legislative victories, ideally culminating in the governor’s endorsement. As stakeholders in our industry, it is incumbent upon us to closely monitor these developments and actively engage with policymakers to ensure that our voices are heard. Our collective advocacy efforts, including our contributions to the Political Action Committee, play a crucial role in shaping favorable policies that promote innovation, growth, and regulatory stability. Whether advocating for legislative reforms or addressing regulatory challenges, our united voice is instrumental in shaping the future landscape of our industry. As we embark on the remainder of 2024, let us reaffirm our commitment to excellence, innovation, and collaboration. Together, we possess the power to overcome any obstacle and seize every opportunity that comes our way. With our shared vision and unwavering determination, I am confident that we will continue to achieve unprecedented success. I extend my deepest gratitude to each member of our team for their dedication and commitment to our shared mission. Here’s to a fulfilling year ahead, filled with impactful achievements and meaningful progress. Warm regards, Eric Sauer CEO, California Trucking Association NAVIGATING NEW OPPORTUNITIES IN 2024
10 CALTRUX www.caltrux.org As we embark on the second year of the 2023-24 Legislative session, it’s an opportune moment to take stock of the significant legislative developments shaping California’s future. With the recent bill introduction deadline now behind us, the halls of the State Capitol are abuzz with activity as lawmakers diligently work to address a myriad of pressing issues facing our state. This year, a staggering 2,124 bills were introduced, reflecting the breadth of proposals and the diverse challenges and opportunities that lie ahead in California. Amidst this legislative flurry, our CTA Government Affairs Team is working tirelessly to monitor and analyze the impact of these measures on the trucking industry. From advocating for sensible regulations to ensuring fair treatment for trucking businesses, our team is committed to representing the interests of our members every step of the way. Our Government Affairs Team is actively engaging with policymakers to ensure that any regulations implemented are both effective and equitable for trucking businesses. Here are a few of the key legislative measures our team is working on: SPONSORED • AB 1953 (Villapudua): Vehicles Weight Limits SUPPORT • AB 936 (Seyarto): CEQA: Exemption: Road & Safety Improvement Projects • SB 1418 (Archuleta): HydrogenFueling stations: Administrative Approval: Checklist 2024 LEGISLATIVE SESSIO
Q1 SPRING 2024 11 ON STARTING STRONG OPPOSE • AB 2535 (Bonta): Trade Corridor Enhancement Program • AB 2754 (Rendo): Employment Contracts & Agreements: Sufficient Funds: Liabiity • AB 3151 (Gipson): Intermodal Roadability Inspection Program In addition to the multitude of bills being introduced, we’re also keeping a close eye on measures being proposed by regulatory boards including the Indirect Source Rule for Ports by the South Coast Air Quality Management District as well as continuing our litigation efforts against the overreaching and unachievable implementation of the Advanced Clean Fleets Rule by the California Air Resource Board. As for the election results, stay tuned for our upcoming newsletter where we’ll provide a comprehensive analysis of the outcomes and their implications for the trucking industry. That’s why we urge you to consider contributing to CARGO PAC. By supporting this political action committee, you’re not just investing in individual candidates – you’re investing in the future of our industry. Your donations will help ensure that knowledgeable and dedicated individuals are elected to represent our interests effectively, championing policies that promote innovation, safety, and sustainability in transportation. Together, we have the power to drive positive change and shape policies that benefit our communities and our economy. So let’s stay informed, stay engaged, and work together to build a brighter future for California.
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E ight California freight bottlenecks, including four in Los Angeles, are among the country’s 100 worst. But it could be worse. California could be Connecticut or Washington, D.C. According to the American Transportation Research Institute’s annually updated report, “Top 100 Truck Bottlenecks – 2024,” the highest-ranking freight bottleneck in California was the State Road 60 at State Road 57 interchange in Los Angeles. It now ranks number seven nationally. EIGHT BOTTLENECKS IN CALIFORNIA BY STEVE BRAWNER CONTRIBUTING WRITER Eight California bottlenecks ranked in ATRI’s top 100, but at least we’re not Connecticut or DC Q1 SPRING 2024 13
14 CALTRUX www.caltrux.org The average speed at that location when monitored in 2023 was 42.4 miles per hour, but during the busiest peak traffic hours it fell to 35.2 mph, a drop of 1.5% from 2022. ATRI uses truck GPS data to create an ongoing bottleneck analysis of 328 locations first identified by the U.S. Department of Transportation and state transportation departments as being freight-significant. ATRI uses the data to determine a “total freight congestion value” based on free flow speed, average truck speed and deviation from free flow, and by the number of commercial trucks passing through the bottleneck. In other words, the formula takes into account both speeds and the number of trucks affected. The report found that average peak traffic truck speeds across the top 100 bottlenecks were 34.4 miles per hour, a 3.8% drop year over year from the previous report. Sixty-two percent of the top 100 bottlenecks had average overall truck speeds of less than 45 miles per hour. Two other California locations appear in the top 20. At number 11 is the I-710 at I-105 interchange in Los Angeles. The average speed there was 37.5 miles per hour, but that number fell to 27.5 mph in peak traffic hours, a drop of 3.7% from 2022 numbers. At number 18 was the I-10 at 1-15 interchange in Ontario. The average speed there was 42.8 mph, while the average speed during the busiest peak traffic hours was 35.4 mph. That number increased 3.8% from 2022. “Traffic congestion continues to challenge California’s trucking industry, which ultimately leads to supply chain delays and increased freight costs,” said California Trucking Association CEO Eric Sauer. “ATRI’s 2024 Top 100 Truck Bottleneck List highlights the urgent need for infrastructure improvements and smart solutions to keep our economy moving forward.” Five other California locations are listed in the top 100. Ranking number 42 is the I-15 at State Road 91 interchange in Corona. Speeds averaged 45 miles per hour when monitored in 2023, while peak traffic hour speeds averaged 38.7 mph, a 7.3% decrease from 2022. Three spots down at number 45 was the I-880 at I-238 interchange in Oakland. Speeds there averaged 40.9 miles per hour but fell to 33 mph during peak hours, which was a 3.75% drop from 2022.
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Q1 SPRING 2024 17 Three other California locations are in the top 100. At number 60 is the I-110 at I-105 interchange in Los Angeles. Speeds at that location averaged 39.1 miles per hour but fell to 30.1 mph during peak hours, which was a 4.8% drop from 2022. Ranking number 87 is the State Road 91 at State Road 55 interchange in Los Angeles. Speeds averaged 46.4 mph there, while peak hour traffic speeds were 39 mph, a 3.6% drop from 2022. The I-80 at I-580/I-880 interchange at Oakland is ranked number 96. Speeds averaged 34.9 mph overall but were only 27.2 mph during peak hours, which was a 6.1% drop from 2022. “They’ve got eight in the top 100, mostly in Southern California.” said ATRI President and Chief Operating Officer Rebecca Brewster. “But like other states with a high number of bottlenecks, you’ve got high population density with a lot of four-wheeler commuters. You’ve also got the Port of L.A.-Long Beach, generating a lot of truck activity. The combination simply creates significant congestion.” The report lists the nation’s worst bottleneck as Fort Lee, New Jersey, at the interchange of I-95 and State Road 4. The area covers both sides of the Hudson River where the George Washington Bridge connects New Jersey and New York. Brewster does not expect that bottleneck to relinquish its top spot any time soon. “Anybody going over into Manhattan to make deliveries or to go to work travels over the George Washington Bridge,” Brewster said. “And so it is always going to have volume because you’ve got the most populous city in the U.S., New York City, driving demand for everything that comes on trucks, and from an infrastructure standpoint, there are not a lot of ways you can fix that location. In fact, I told somebody the other day, if it drops out of the number one spot, it means we’ve got a real problem somewhere else.” Following Fort Lee nationally are two locations in Chicago. Number two is the interchange of I-294 and I-290/I-88. Number three is I-55. In fact, Chicago has six locations in the top 31. Rounding out the rest of the top 10 are: • Houston: I-45 at I-69/U.S. 59 • Atlanta: I-285 at I-85 North • Atlanta: I-20 at I-285 West • Los Angeles: State Road 60 at State Road 57 • Houston: I-10 at I-45 • Atlanta: I-285 at State Road 400 • Nashville: I-24/I-40 at I-440 East
18 CALTRUX www.caltrux.org Average peak traffic truck speeds were 28.5 mph among those top 10 locations. A total of 28 states plus Washington, DC have at least one bottleneck listed within their borders. The states with the most bottlenecks are Texas with 13, Georgia with nine, and California with eight. Tennessee has seven while Illinois has six, all in Chicago. Connecticut is home to five, making it the most bottlenecked state by land area. California is home to 40 million Americans – about 12% of the U.S. population – and is home to 8% of the worst bottlenecks. Arguably, it’s doing better than many other states – certainly Connecticut. “Don’t tell that to the drivers around Los Angeles. I don’t think they’d appreciate it,” Brewster said with a laugh. “You look at them, they’ve got pretty tough speeds, particularly when you look at rush hour speeds. Number 11 is at 27 miles per hour.” That would be the I-710 at State Road 57 interchange in Los Angeles. All of California’s West Coast and nearby neighbors had at least one bottleneck on the list, and Washington State had six. Oregon, Nevada, and Arizona each had one. Western states without a top 100 bottleneck were Idaho, Utah, Montana, Wyoming, and New Mexico. Alaska and Hawaii also did not have a top 100 bottleneck. In an ATRI press release accompanying the report, American Trucking Associations President and CEO Chris Spear said traffic congestion adds $95 billion to the cost of freight transportation and generates 69 million metric tons of excess carbon emissions annually. “The freight bottlenecks identified in this report provide an actionable blueprint for state and federal transportation officials on where to invest infrastructure funding most costeffectively,” Spear said. “Increasing freight efficiency should be a top priority for the U.S. (Department of Transportation), and alleviating these bottlenecks would improve highway safety, protect the environment and support interstate commerce.” Brewster said the annual report provides guidance to policymakers as they determine where to focus resources. She noted that bottlenecks can move up and down the list. Perhaps the best example of the list’s usefulness is the
Q1 SPRING 2024 19 MEETINGS REGISTER TODAY www.Caltrux.org Sacramento, CA JUNE 5-6, 2024 Jane Byrne Interchange in Chicago. Its ranking in the top spot three years in a row helped prompt Illinois to take action. “They specifically cited the fact in the press release announcing it that they did not want to have the nation’s number one truck bottleneck anymore,” Brewster said. Brewster said the Byrne Interchange remained in the top 10 while road construction was occurring, but this year, it is down to number 13. It will probably always rank high because of its traffic volume. It’s a transit point for other points across the country and has a huge intermodal presence. But speeds have gotten better. She noted that while the report focuses on the challenges faced by trucks, those same challenges affect passenger vehicles. “I always have to remind people: We call them truck bottlenecks because that’s where our data generates from, but if trucks are going that slowly, cars are going that slowly in the same locations,” she said. “It’s not that the trucks are operating so much more slowly than the cars. This is everybody. These are jointly shared pain points for cars and trucks.” While Connecticut is the most bottlenecked state by land area, it isn’t as bad as Washington, D.C. The nation’s capital, gridlocked both politically and logistically, is home to five of the top 100 bottlenecks that are packed into a 68-square-mile city. Two metropolitan areas – the Atlanta area and Houston – represent 18% of all the worst 100 bottlenecks in the country. Atlanta is home to eight of the top 100 bottlenecks, including four in the top 12. The worst is the interchange of I-285 and I-85 North at number five. In addition, a ninth spot at number 16 is at McDonough, which is part of the Atlanta metropolitan area. Houston, home to Port Houston, also has nine bottlenecks, including the number four worst, the I-45 and I-69/U.S. 59 interchange, and three others in the top 26. Brewster, who lives in Atlanta not far from the ninth-ranked I-285 at State Road 400 bottleneck, has some hope for the city. The Georgia Department of Transportation appears to be addressing the issue. Construction at that site is being completed, and over the next several years traffic should improve. Improvements there should improve traffic at the other bottlenecks on the I-285 corridor. Other cities with more than two freight bottlenecks are Los Angeles and Denver, each with four; and Indianapolis, Charlotte and Nashville, each with three. Fixing each bottleneck requires road construction. About $350 billion is available to federal highway programs through the Infrastructure Investment and Jobs Act, passed in 2021. When construction on a site is completed, the bottlenecks improve. But in the meantime, drivers – truck and passenger – must contend with work zones and orange barrels. Brewster said it’s worth it, adding, “It does get worse before it gets better, but that’s congestion we can live with because we can see on the back side where we’re going to have smoother roads ahead,” she said.
20 CALTRUX www.caltrux.org T he California Trucking Association CEO Eric Sauer, JSG Trucking, the San Joaquin County District Attorney Ron Freitas, and the California Highway Patrol joined Senator Shannon Grove (R-Bakersfield), Senator Ochoa Bogh (R-Yucaipa), Assembly Member Gail Pellerin (D-Santa Cruz), and Assembly Member Carlos Villapudua (D-Stockton) in proclaiming January as National Human Trafficking Awareness Month. The event, which took place at the State Capitol, focused on intensifying efforts to combat this heinous practice through increased publicity, training, and response opportunities available to all Californians. Speakers included Ashlie Bryant from 3strands Global Foundation, Jenna McKaye, a survivor of human trafficking, and Jess Torres from Rising Worldwide. Senator Grove opened the event by stating that “as an elected representative I believe it is our duty to stand up for the most vulnerable members of our community, especially those that are disproportionately victims of this heinous crime.” Legislative leaders followed and provided updates on individual and collective efforts to stop human trafficking including Assemblymember Pellerin who introduced her resolution proclaiming Human Trafficking Awareness Month. “Here in California, we remain committed to partnering with and learning from survivors and the wonderful nonprofit advocacy FIGHTING HUMAN TRAFFICKING California Trucking Association, State Leaders, Law Enforcement and Victims Unite to Combat Human Trafficking During National Awareness Month Truck wrapped with Truckers Against Trafficking information provided by JSG Trucking Co. President Rachel Crusenberry traveled to Sacramento to confirm CTA and the trucking community's commitment to combat Human Trafficking.
Q1 SPRING 2024 21 Know your reporting ƒnd emissions requirements Clean Truck Check applies to all diesel and alternative fuel trucks and buses with a GVWR over 14,000 pounds, including out-of-state and out-of-country vehicles, California motorhomes and agricultural vehicles. To learn more, visit arb.ca.gov/cleantruckcheck groups giving insight to policy solutions. I am proud to author ACR 125 to declare January Human Trafficking Awareness Month,” Assemblymember Pellerin said. Assemblymember Villapudua provided remarks emphasizing the critical role of the trucking community and their collaboration with the CHP to enhance the ability of law enforcement and public safety professionals to identify human trafficking activities and better serve its victims. "The unique position of leaders in the trucking industry as the eyes and ears on the roads makes them vital in identifying and reporting the signs of human trafficking," stated Assemblyman Carlos Villapudua. "I am proud to recognize the California Trucking Association and its members for their commitment to combating this terrible crime." CTA CEO Eric Sauer highlighted the association’s involvement with Truckers Against Trafficking, emphasizing that the CTA has been a key partner in training drivers to recognize signs of human trafficking. Over 1.7 million trucking industry professionals have received Truckers Against Trafficking training to date. Sauer added, "By equipping drivers with knowledge and resources, we transform them into frontline advocates, capable of making a significant impact in our fight against trafficking." The event also served as an acknowledgment of the dedication of CTA members who have donated time and resources to combat human trafficking. Contributions, both in terms of finances and volunteer hours, exemplify the industry's commitment to social responsibility. JSG Trucking showcased its commitment by driving a truck wrapped with Truckers Against Trafficking information—a powerful symbol of the industry's dedication to raising awareness and combating human trafficking. The California Trucking Association reaffirms its commitment to working alongside government officials, law enforcement, and NGOs to eradicate this crime and create a safer environment for all.
COVER STORY 22 CALTRUX www.caltrux.org
Jim Gillis comes from family steeped in the tradition of duty and service and is applying that experience to his leadership role with IMC BY STEVE BRAWNER CONTRIBUTING WRITER PHOTOGRAPHY BY GRANT ROMANCIA Q1 SPRING 2024 23 From Oceans to Highways J im Gillis has had a lot on his plate the past few years: growing IMC’s Pacific Region, helping it come together, and moving it forward to meet his chairman’s goal of being a zero-emissions carrier in California by 2028. As the region’s president, Gillis is in charge of IMC’s operations and sales at 11 terminals on the West Coast and Nevada. Among his responsibilities has been integrating the newly acquired American Pacific Transportation into the company. That purchase, which was announced March 4, added about 100 drivers to IMC’s 400 who were already operating in California. “There were just a lot of synergies between the two companies, like-minded cultures, the way drivers were treated, the way employees were treated, and so we just felt like it would be a good time to expand our capabilities and grow by acquisition,” he said. The move comes on the heels of last year’s successful completion of IMC’s “Unity” project that folded its eight member companies into the IMC brand. The project represented a change in company strategy from its old model of separate regional sister companies. That strategy gave executive leaders equity and skin in the game, but it was proving cumbersome with regards to customer service, marketing and operations. Executives maintain their equity, but now it’s one company with one brand. Memphis-based IMC is the nation’s largest privately held intermodal drayage company. Gillis knows what it’s like to work in a large organization considering he spent his childhood as part of one – the U.S. Marines. “I was from a military family,” he said. “I’m J.A. Gillis the Fourth. The first three were all Marine Corps lifers. I was born on a Marine base in North Carolina, and every two to three years we moved around. I spent high school in Korea. So that’s all I really knew for the first 18 years of my life was military.” After high school, he followed in the family footsteps, although he veered off a little. Instead of the Marines, he attended the U.S. Naval Academy. He said the experience taught him to follow before he became a leader. He realized that his path was not as a career military officer, however, “I had the itch to do business, and I wanted to get out and become a business guy,” he said. Even though Gillis wouldn’t spend his career in the military, he would take the lessons he learned from his early experiences
24 CALTRUX www.caltrux.org OUR SERVICES INCLUDE: • Import / Export: Bulk transloads and handling including rail • Rigging and crating, crossdocking, trucking and heavy haul • Our trucks are lightweight and we are set up to legal any containerized load Serving the Port of Oakland for 30+ years, let us serve your needs for the next 30 years! WE ARE YOUR INTERMODAL AND DRAYAGE SOLUTION HIGH MOUNTAIN TRANSPOR H T IGH MOUNTAIN TRANSPORT Lockwood, NV (800) 394-3037 | [email protected] | www.HighMountainTransport.com to“The Marine ethos is: Every Marine is an infantryman,” he said. “My take on it, especially in the intermodal world, is every one of my employees is a dispatcher, and they’re interfacing with drivers, and so I’ve always believed in strong communications and really being a hands-on leader with your driver population.” IMC CEO Joel Henry said Gillis’ military background informs the way he leads the region. “(From an) integrity and morals standpoint, Jim is an outstanding person,” he said. “He’s a Christian. He’s an exmilitary, Naval Academy, so Jim comes from a background of structure. He’s brought that background of structure into our company on the West Coast. … I would say he’s pretty typical of the vast majority of military-type individuals – very structured, works hard, brutally honest, but also very caring for his teammates. We’re investing a ton in the West Coast, and we feel like Jim is the right guy for IMC.” Gillis started in the business world by working for Yellow Freight in Dallas., and moved to a container drayage firm in Dallas, P & H Transportation, who was the house carrier for Sealand Services at the time. After about six months, he moved to the Dallas office of Intermodal Cartage, which later became IMC. “I didn’t even know at the time what a container was,” he said. He obviously figured it out quickly. Within three years he was managing IMC’s Dallas, Houston, and New Orleans regional operations. When IMC opened a facility in Houston, he moved to Houston. The company then moved him back up to Dallas, where he was embedded in an office back at Sealand. Then he returned to Houston, where he became a regional manager. In late 2004, Gillis struck out on his own and started Double G Transportation and Warehousing, a cotton transloader in Dallas and Houston. It grew from one driver to 120 in three years and had nearly a million square feet of warehouse space in both Houston and Dallas. After about three years, he sold that business to TCI Trucking and Warehousing, for which he worked under contract as a general manager for
Q1 SPRING 2024 25 Save more time, fuel, & money with PrePass! Ask about a free trial offer to see for yourself. 866.228.1424 PrePass.com/CA INTEGRATED SOLUTION WEIGH STATION BYPASS TOLL PAYMENT SERVICES FLEET DATA INSIGHTS four years. But IMC retained a special place in Gillis’ heart. He returned to it in 2011 as a vice president for one of its member companies, Houston-based Gulf Intermodal Services. By that point, he had become a loyal Texan. However, he would not stay in Texas. After IMC purchased Californiabased Progressive Transportation Services in 2016, he was sent west in 2017 to integrate the company into IMC’s culture and business practices. At the time of the purchase, the company had owner-operators. California’s regulatory environment posed significant changes for IMC, a stout proponent to the independent owner operator model. The company soon rebirthed itself as Pacific Drayage Services, which was 100% asset based, employee model. The company seeks to grow at least 15% a year, a goal it has far surpassed at times. Its gross revenues grew from $347.4 million in 2019 to $982.63 million in 2021 during the covid-19 pandemic. Gillis credits company chairman Mark H. George for much of the company’s growth. “Mark has had a vision of growth, and every leader in our organization is tasked with strategically growing your business every year,” Gillis said. “Do it responsibly, do it sustainably, but you’ve got to continue to grow your business because we’re a growth-oriented company. And I think that having somebody like that at the helm and pushing certainly provides a lot of kindling for that fire of growth.” California is aggressively pushing zeroemissions technology through its Advanced Clean Trucks and Advanced Clean Fleets mandates. Meanwhile, some customers, particularly large corporations and European-based ones, want their carriers to be green, even sooner than mandated. The company is responding to that environment both by playing defense and going on the offense. It played defense in 2023 by accelerating its purchasing cycle and buying 117 diesel trucks in the middle of a freight recession. At the time, the Advanced Clean Fleets rule mandated that the last drayage internal combustion engine trucks could be entered into the state database no later than December 31,
26 CALTRUX www.caltrux.org 2023. Trucks were hard to find that year, so it purchased them out of Memphis. Since then, the rule has been suspended. The California Trucking Association has sued to block its enforcement. But the California Air Resources Board has said it reserves the right to back-enforce the rule if the Environmental Protection Agency grants a waiver. IMC isn’t taking any chances. Those were the last diesel trucks it plans to buy in California. George, the company’s chairman, wants IMC to be a zero emissions company in California by 2028, a more aggressive timeline even than CARB’s. Meanwhile, the company is going on offense by purchasing and testing both electric and hydrogen-powered heavyduty vehicles. Two years ago, it bought six Volvo VNR electric trucks and began testing them. Results have been mixed. Drivers say it’s a comfortable ride. However, in contrast to diesel trucks’ 650-700-mile range, the electrics are traveling only 150-160 miles,
Q1 SPRING 2024 27 which means routes must be carefully planned. Gillis also is concerned about the state’s electrical grid being able to handle the statewide conversion. Moreover, there have been several recalls. “Even after the grant money that you get, it’s an expensive unit not to be operating,” he said. Looking for alternatives, Gillis started researching hydrogen. He especially liked the Nikola truck, which he beta-tested on every route IMC operates in Southern California. The company did a small purchase order of 10 class 8 hydrogen fuel cell trucks that quickly grew to 50. The first 10 were arrived in March, with future deliveries coming 10 at a time every two weeks. “One of the lessons Mark’s really taught me over the course of my career is, if you’re going to do something, you’ve got to be a leader in it, and so the idea of this toe-in-the-water approach with electric was OK, but we wanted to do something bigger,” Gillis said. Gillis said the truck weighs as much as the Volvo VNR – much heavier than a diesel truck. But importantly, it has a 500- mile range and a 20-minute refuel cycle versus electric trucks spending one to four hours on a charger. That makes it usable for the company’s slip-seat model that requires about one-and-a-half drivers per truck to make a profit. Gillis said the cost of hydrogen is comparable to electricity. A downside is that most of California’s hydrogen supply is being produced out of state and then trucked in. That is not a sustainable model economically or environmentally, but he believes the state will have more production facilities soon. Even though the initial tests of the battery electric trucks were mixed, the company is trying a blended approach. Gillis said that electric trucks can work well for short hauls where they return to their domicile and can take advantage of opportunity charges. Long term, both battery electric and hydrogen trucks will be needed. “I do believe in it,” he said. “I feel that 10 years from now, we need to have zero emissions trucks. Anybody who lives in Southern Cal can tell you it’s a beautiful place, but it is dirty, and some of the emissions coming from these trucks, that’s part of it. There’s no trucking exec I’ve met in California that will tell you we want dirty air. Everybody wants clean air, right? It’s just how fast do you get there? And so we felt like, going back to Mark’s comment to me, ‘if you’re going to do something, let’s be a leader at it. Let’s come out and show some leadership and show the state what we can do,’ and that’s why we went out a little bit bigger with the hydrogen trucks.” Gillis has led the Pacific Region through a number of property investments as well. When the company changed its name to Pacific Drayage Services, he found property on 10 acres in Compton that has been the region’s headquarters since. Six charging stations were recently installed there. Because the company had so many drivers coming from the Inland Empire, he opened terminals in Fontana, Riverside and Bakersfield. The company opened a terminal in Reno/Sparks for the same reason to service northern California. The company has another nine acres where it plans to install chargers starting the third quarter of this year. It plans to install 30 (209) 944-1516 | (925) 308-7545 Locally Owned and Locally Managed Since 1965 www.bankbac.com/trucking EQUIPMENT LOANS 5.99% *Advertised as low as interest rate is accurate as of January 12, 2024 and is subject to change. All rates and terms are subject to credit approval. Some restrictions may apply. Speak with a bank representative for details. *
28 CALTRUX www.caltrux.org chargers at this new facility in Fontana, which will house both hydrogen and electric trucks. The office construction for that one is close to being completed, but installing chargers can take a long time. Few intermodal draymen own their property, so the leasing agreements can be complex and require long-term commitments, he said. As a result of that environment, he said companies are racing each other to find where the power already exists so they can grab those properties. The Fontana site was a dismantled manufacturing site that still had active lines coming into it. “When I look at property now, the first question I ask is, ‘What’s the power availability?’” he said. “When we start talking about heavy power, those are the ones we’re trying to gobble up quickly and say, ‘Hey, let’s get our hands on that.’” Gillis said being involved in the California Trucking Association has been a valuable asset for the company as it navigates today’s trucking environment. When he came to the state, he joined the Harbor Trucking Association because he was focused on port-related activities. Eventually, he joined the board. But HTA doesn’t have a lobbying arm and has always partnered with the CTA on those activities. He started having conversations with CTA CEO Eric Sauer and then joined last year. “California Trucking Association’s just a great resource,” he said. “I find that I get looped in on a lot of conversations about legislation that’s pending that’s helping us to make strategic decisions in advance, and I feel like we also have a seat at the table.” It’s been a challenge coming from Texas, a state openly supportive of trucking, to one with a lot of regulations like California. Costs of doing business here are higher. Meanwhile, drayage customer rates in Southern California are lower than they are in Houston. “I tell everybody a story – When I moved here, I was probably the only U-haul that was going from Texas to California, and everybody else is on the way out,” he said. Coming to California was an adjustment personally, too, but it has become home for him, his wife, Andrea, and their three children ages 10, 4 and 2. “I tell everybody we’re proudly from Texas, and I have a Texas flag flying at my house,” he said. “Now, we’re proud Californian now, and we love this state and just hope that we can get everything turned around and get it moving in the right direction.” Gillis plays a little golf in his personal time, but otherwise he’s focused on IMC and on his family. He grew up in a family of Marines, and those values got passed down to him. The same thing will happen with his children, but they’ll get their start in trucking. “My hobby is going to work and spending time with my kids,” he said. “When I’m not working, I’m just a regular church dad – you know, get my kids to and from church and take them to sporting events. We’re hyper-focused on having our kids have the greatest opportunities, and I want my kids to experience a lot of diversity, and so we put them in all different kinds of classes. We’re teaching our kids Spanish, and so I just feel like the thing that my folks were able to do for me at an early age is really give me a very broad view of the world, and I feel like that’s my place for my kids. I want them to see everything. “My kids will be working at this facility. My 10-year-old, in the next five years, he’ll be out there sweeping the floor, and I feel like I want them to get a little humbleness at the first part of their careers. I want them to experience what folks have to do to make a living before they get into college.”
Q1 SPRING 2024 29 Support ATRI’s Mission American Transportation Research Institute (ATRI) is your trusted partner for critical data and analysis. Contributing to ATRI is crucial for the future of the transportation industry: Industry Advancement Your support drives innovation to enhance safety, e ciency, and sustainability Tackling Challenges ATRI focuses on critical issues and provides practical solutions for the trucking industry and beyond Informing Policy Evidence-based policymaking leads to better regulations and standards across all levels of government Power Economic Growth ATRI’s insights drive profitability by identifying opportunities for e ciency improvements and cost savings JOIN US IN SHAPING THE FUTURE OF TRANSPORTATION Learn more & contribute to our mission today
30 CALTRUX www.caltrux.org If you aren’t at the table, you’re on the menu! Led by real truckers and industry leaders, CARGO PAC understands what policies will be detrimental to your business’s future and supports the candidates who will support you. What is CARGO PAC? Policy over Politics As a non-partisan PAC, CARGO is committed to uplifting the candidates who support the trucking industry, not self-interested politicians. Staying Focused CARGO PAC is known throughout Sacaramento. Your contribution is a reminder to all legislators how critical the transportation industry is to all of California. Driving the Industry Forward Delivering the Goods The Concerned Americans for Responsible Government Political Action Committee (CARGO PAC) is a bi-partisan committee run by truckers, for truckers, for the sole purpose of supporting industry-friendly representatives that support beneficial policies that help California’s trucking community. Contributions to CARGO PAC are not tax deductible for federal or California tax purposes. California state PACs may accept a maximum of $9,100 per contributor, per calendar year for candidate support purposes. Corporate contributions may be accepted and will be used for California elections only. Contributors of $10,000 or more to CARGO PAC and all other California state or local candidates, PACs, political party committees or ballot measures in a calendar year must file a California “Major Donor Committee” Report as required by law. Membership is valid upon receipt of your contribution. Contributions are non-refundable. Contributions are not deductible as charitable contributions for income tax purposes but may be deducted under other IRS codes. Consult your tax advisor. Scan Code or visit caltrux.org/cargo-pac to contribute today! “In our regulatory environment everyone needs to be a part of CARGO PAC!” - Greg Dubuque, General Manager, Liberty Linehaul West Contributor Since 2010
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34 CALTRUX www.caltrux.org Click Here to Register March 21 Sailing Through Your BIT April 18 NEW! FMCSA Portal Essentials: From Basics to Advanced May 16 Compliance on Tap: Controlled Substance and Alcohol Testing (CSAT) Reasonable Suspicion Training for Supervisors June 20 Hours of Service Truck Inspection and Maintenance Programs - Interstate and Intrastate Requirements August 15 Accident Management for Motor Carriers September 19 Sailing Through Your BIT October 17 NEW! FMCSA Portal Essentials: From Basics to Advanced November 21 Compliance on Tap: Controlled Substance and Alcohol Testing (CSAT) Reasonable Suspicion Training for Supervisors 2024 SEMINARS! CTA SAFETY & COMPLIANCE Rev up your knowledge with our 2024 compliance Seminars. 2024 brings completely refreshed presentations and the introduction of new topics! Visit caltrux.org/compliance-training/ to learn more.
Q1 SPRING 2024 35 T he rich history of the California Trucking Association’s Annual Membership Conference (AMC) added an extra layer of significance this year as we celebrated our 70th Conference. Throughout the years, various iconic locations have hosted this prestigious conference including the fabulous city of Las Vegas. In 2024 however, the AMC returned to Southern California with a nod to past conferences held at the Hotel Del Coronado and a transition into the future. The 2024 AMC brought together industry leaders, policy experts, and esteemed guests for a four-day at the Omni La Costa Resort in Carlsbad, CA, from January 17 to 21. The conference commenced with meetings among CTA leadership and a dinner among CTA’s Past Presidents, setting the tone for a series of engaging discussions and events. A dedicated day for policy discussions led by CTA’s Government Affairs Team kicked off the conference for all attendees on Thursday, allowing participants to delve into the industry’s most critical issues. The Highway Policy Committee, Safety, Security & Human Resources Policy Committee, Environmental Policy Committee, and the CTA Kingpin Committee hosted informative sessions throughout the day capping the night with an evening reception sponsored by MN8. Educational panels on Friday covered a wide array of topics. From discussions on Zero-Emission charging and Fueling Solutions to comprehensive Legal Updates by legal experts, attendees gained crucial knowledge to navigate the everevolving trucking landscape. The General Session Lunch featured keynote speaker Assemblyman David Alvarez (D-San Diego), while Assemblyman Vince Fong (R-Central Valley) engaged in a thought-provoking conversation about Cargo Theft with California Retailers Association President Rachel Michelin, joined by members of CargoNet and the California Highway Patrol. A highlight of the conference was the presence of American Trucking Associations President & CEO Chris Spear, who addressed attendees during the General Session Breakfast. Spear offered a comprehensive update on federal-level matters, covering infrastructure funding, workforce development, and the electrification mandates in California. He emphasized the need to increase the representation of women in trucking and provided insights into the upcoming presidential election and its potential impact on the industry. The culmination of the 2024 AMC was marked by a Member Appreciation Party sponsored by Downs Energy. The event featured a lively football watch party, filled with camaraderie, exciting prizes, and a diverse crowd of Packer and Niner fans passionately cheering on their favorite teams. On behalf of all of us at CTA, we want to thank those who were able to join us for the 2024 AMC. We are excited to return to this location in 2025 as we eagerly anticipate the continued participation in another exceptional gathering. CTA EVENTS CTA’S 2024 ANNUAL MANAGEMENT CONFERENCE
36 CALTRUX www.caltrux.org CTA EVENTS
Q1 SPRING 2024 37 Caltrux reaches more than 10,000+ leaders in transportation throughout California and beyond. Our highly targeted audience of transportation executives contemplates purchasing decisions every day. That makes promoting your company in Caltrux an excellent business decision. If you want to reach this highly targeted and influential group of industry decision-makers and ask them to consider purchasing your products or services, then you’ll want t o place an ad in every edition of Caltrux. Questions? Need more details? Please contact our publisher, Jennifer Matthews, at jennifer@matthewspublishing. com or call (501) 690-9393. MORE THAN TEN THOUSAND READERS STRONG 10,000+
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40 CALTRUX www.caltrux.org CARRIER: Delta Grinding Company Mike Rose 5401 Live Oak Ave. Oakley, CA 94561 (925) 864-1224 www.deltagrinding.com Cosio Trucking, Inc. Jose Cosio 25275 Potrero Valley Rd. #47 Potrero, CA 91963 (619) 628-9172 Anheuser-Busch Companies, Inc. Curtis Raulinaitis 1201 K St., Ste. 730 Sacramento, CA 95814 (916) 442-2600 www.anheuser-busch.com King D Trucking Brian Duboise 3501 Fruitvale Ave. Bakersfield, CA 93308 (661) 978-2692 Marathon General, Inc. Steve Gallant 1728 Mission Rd. Escondido, CA 92029 (858) 335-8108 Linde Wladimir Sarmiento Darkin 1585 Sawdust Rd., #300 The Woodlands, TX 77380 (716) 507-3382 www.linde-engineering.com Celtic Cartage, Inc. Adrienne Anderson 11260 Southwest Hwy. Palos Hills, IL 60465 (708) 581-6119 www.celticcartage.com Canopy Logistics, LLC Shane Speake 9530 Hageman Rd., Ste. B128 Bakersfield, CA 93312 (661) 556-7380 Sharp Freight Solutions, Inc. Manny Heer 18 Oak St., Unit 1288 Brentwood, CA 94513 (925) 201-6599 Savage, Co. Andy Pierucci 901 W Legacy Center Way Midvale, UT 84047 (800) 827-4439 www.savageco.com Roche Oil, Inc. Courtney Roche 1120 E. Paige Ave. Tulare, CA 93274 (559) 686-5837 rocheoil.com Trans International Trucking, Inc. Pablo Garcia 1920 S. Acacia Ave. Compton, CA 90220 (310) 221-8544 www.transinttrucking.com Landjet-Inc. Sandie Jimenez 1090 Hall Ave Jurupa Valley, CA 92509 (909) 873-4636 www.landjet-inc.com Kojus Trans Logistics, LLC Justice Seshi 1711 W Crone Ave. Anaheim, CA 92804 (714) 390-7735 www.kojuss.com CTA WELCOMES
Q1 SPRING 2024 41 Access Transport & Logistics David Freitas 14312 Cacheville Rd. Woodland, CA 95697 (530) 216-9282 www.accesslogisticsinc.com Dickinson Fleet Services DBA Cox Automotive Inc David Slaton 4709 W. 96th St. Indianapolis, IN 46268 (530) 412-3966 www.coxautoinc.com/mobility/fleetservices Cargill Meat Logistics Solutions, Inc. Robb Kaiser 825 E. Douglas Ave. Wichita, KS 67202 (952) 984- 0111 www.cargill.com/transportation Reliance Steel & Aluminum, Co. Steve Cress 55 S. Lake Ave., Ste.500 Pasadena, CA 91101 (213) 576-8897 www.rsac.com ALLIEDS: REMSafe Sleep Brad Mader 7200 Hudson Blvd. Ste 107 Oakdale, MN 55128 (651) 301-0126 remsafesleep.com/ RTS Mallory Kleoppel 9300 Metcalf Ave Overland Park, KS 66212 (931) 553-5565 www.rtsinc.com Aurora Sydnee Journel 280 N Bernardo Ave. Mountain View, CA 94043 (650) 918-7151 www.rtsinc.com Eide Bailly, LLP Bill Garcia 10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA 91730 (909) 466-4410 www.eidebailly.com QuikQ, LLC Trevor Morley 501 Corporate Centre Dr., Ste. 520 Franklin, TN 37067 (615) 330-6366 www.quickq.com Compass Equipment Finance Sean Wheeler 115 W. 55th St., Ste 302 Clarendon Hills, IL 60514 (630) 486-2653 www.compassef.com DriverReach Scott Klein 1945 Jefferson St., Apt 301 San Francisco, CA 94123 (800) 791-0461 www.driverreach.com Brief Relief Sam Alhmad 2655 Vista Pacific Dr. Oceanside, CA 92056 (760) 741-6600 www.briefrelief.com NEW MEMBERS
42 CALTRUX www.caltrux.org ADVERTISING RESOURCE INDEX American Transportation Research Institute (ATRI) 29 BAC Community Bank 27 California Air Resources Board (CARB) 21 California Truck Centers Inside front cover Caltrux 7, 37 CARGO PAC Sponsors 30 CTA Board & Policy Summer Meeting 19 CTA’s Truck Driving Championship 34 CTA’s Trucking Proud 39 CTA’s TSC 21 Great West Casualty Company 15 High Mountain Transport 24 Inland Kenworth 12 Jay Johnson & Associates 34 MV International / Navistar 4 PrePass Safety Alliance 25 RMC Engineering Back cover Southern Tire Mart 3 TEC Equipment Inside back cover TravelCenters of America 8 This edition of California Trucking Association’s magazine, Caltrux, was made possible by the support of the corporate advertisers listed here. These generous companies support the trucking industry by enabling CTA to provide this publication to its members, prospective members, elected officials and the business community at large. They deserve your consideration and patronage when making your corporate purchasing decisions. Please visit www.caltrux.org to see the digital version of Caltrux, complete with live links to advertisers’ websites. CALENDAR OF EVENTS Caltrux Q1 SPRING 2024 May 6-8 NATMI Certified Driver Trainer (CDT) Program Virtual Seminar May 13 2024 Bay Area Unit Golf Tournament May 16 2024 Compliance on Tap: Controlled Substance and Alcohol Tsting (SCAT) 10:00am–Noon Virtual Seminar 2024 Reasonable Suspicion Training for Supervisors 1:00pm–3:00pm Virtual Seminar May 17 2024 CHP & CTA Sober Grad Night Golf Tournament May 18-22 2024 American Trucking Associations Mid-Year Management Sessions (MYMS) May 20 2024 San Juaquin Unit Joe Kent Memorial Golf Tournament May 23 2024 Kern Unit Golf Tournament June 5-6 Transitioning to the Future: CTA Board of Directors & Policy Committee Meetings June 13 2024 Safety Council Meeting 10:00am – 11:30am Virtual Meeting June 20 2024 Hours of Service (HOS) Virtual Seminar 10:00am-Noon 2024 Truck Inspection and Maintanance Programs – Interstate and Intrastate Reqirements 1:00pm-3:00pm June 27 2024 San Bernadino/Riverside Unit 44th Arthur F. Thompson Memorial Golf Tournament July 18 2024 San Diego/Imperial Unit 15th Annual Golf Tournament October 12-15 2024 American Trucking Associations Management Conference & Exhibition (MCE) For more information and to register, please visit https://members.caltrux.org/cta-events
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