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US, Mexico Border Truck Program Expires

US, Mexico Border Truck Program Expires

Washington, DC – The three-year program giving Mexican long-haul truckers access inside the US beyond the designated commercial border zone has officially expired, but the border will remain open to the 13 Mexico-domiciled carriers that were granted authority to participate in the project.

As required by statute, the Department of Transportation has completed a three-year trucking pilot program with Mexico,” the Federal Motor Carrier Safety Administration, the US Department of Transportation (DOT) agency responsible for conducting the pilot project, said Tuesday in a prepared statement.

The controversial cross-border program, strongly opposed by the US trucking industry, was created in 2011 to evaluate the safety of cross-border long-haul operations, with 13 carriers participating in the program.

“Prior to making any additional determinations regarding cross-border trucking issues or specific carriers, the department will await expected reports on the pilot program from the Motor Carrier Safety Advisory Committee and the DOT Inspector General,” the agency said.

“In the interim, based upon successful completion of the program, as well as a review of safety and inspection data collected during the program, the department has converted the 13 participants to provisional or standard operating authority, allowing those carriers to continue to operate in the United States.”

The 13 carriers will reportedly continue to undergo regular border inspections and be subject to all US motor carrier laws and regulations, the DOT said.

In addition, it said that there were no fatalities or major accidents involving Mexico-domiciled trucks during the current pilot or the previous pilot program that ended in 2009 when it was scrapped by Congress.

10/15/2014

Carib Energy Granted ‘Small Scale’ LNG Export License

Jacksonville, FL – Carib Energy LLC has been granted a 20-year, small-scale US Department of Energy (DOE) export license for the supply, transportation and distribution of US-sourced liquefied natural gas (LNG) into several Non-Free Trade Agreement (NTFA) countries in the Caribbean, and Central and South America.

The licensing permits Carib Energy, a subsidiary of the Crowley Maritime Corp., to export 14.6 billion cubic feet (BCF) of LNG – roughly the equivalent of 480,000 gallons – per day via 10,700 gallon ISO-certified tanks to the specified regions.

Earlier in the year, the company was awarded a multi-year contract to supply containerized, US-sourced LNG to two Coca-Cola bottlers in Puerto Rico.

That contract included supplying and transporting the LNG to the two plants in Cayey and Cidra, Puerto Rico.

The LNG “provides both facilities with substantially lowered emissions, an alternative to their current diesel fuel source, and an uninterrupted fuel supply due to the abundance and availability of US-sourced LNG,” the company said.

The transportation of the LNG for all of the company’s new projects is being managed by Crowley’s in-house logistics team, which coordinates shipment of the 40-foot bulk liquid tank containers carrying the LNG from the company’s shipping terminal at the Port of Jacksonville, Florida.

The containers containing the LNG are ISO-certified and approved by the US Department of Transportation to carry approximately 10,000 gallons of the product.

LNG is natural gas that is cooled to -260° Fahrenheit until it becomes a liquid and then stored at essentially atmospheric pressure.

Converting natural gas to LNG, a process that reduces its volume by about 600 times allows it to be transported. Once delivered to its destination, the LNG is warmed back into its original gaseous state so that it can be used just like existing natural gas supplies.

When returned to its gaseous state, LNG is used across the residential, commercial and industrial sectors for purposes as diverse as heating and cooling homes, cooking, generating electricity and manufacturing paper, metal, glass and other materials.

LNG is not stored under pressure and it is not explosive. LNG vapors – methane – mixed with air are not explosive in an unconfined environment. When exposed to the environment, LNG rapidly evaporates, leaving no residue on water or soil.

Founded in 1892 in San Francisco, the Crowley Maritime Corp. entered the LNG market by acquiring Florida-based Carib Energy LLC last year.

Shortly thereafter, Crowley created a specialized LNG services group to offer supply, transportation, and distribution of LNG services utilizing the certified tank containers.

09/15/2014

Norwegian Air Denied Temporary US Service Application

Washington, DC – The US Department of Transportation (DOT) has rejected a ‘procedural application’ from discount air carrier Norwegian Air International (NAI) to temporarily operate in the US.

The decision is seen as a victory for US air carriers and their unions, which had vocally opposed the application, but the DOT said that while the temporary bid had been rejected, the agency would continue to “review the extensive record and deliberate on the application for longer-term operating authority.”

According to aviation industry analysts, the final determination by DOT probably won’t be announced until after the November mid-term elections.

Norwegian Air’s campaign to enter the US market became a magnet for opposition, not only from domestic US air carriers and their employee unions, but from a broad coalition of lawmakers from both parties on Capitol Hill.

More than 40 senators and 100 House members signed letters expressing their “concerns” about the deal with the House recently passing an amendment to the 2014 Transportation, Housing and Urban Development (THUD) appropriations bill in an effort to derail the airline’s efforts.

The Air Line Pilots Association (ALPA), which has labeled NAI as “the wolf at the door,” praised the DOT’s decision, saying that, “The US Department of Transportation took an important stand for fair competition today by denying Norwegian Air International’s request for temporary authorization to fly to and from the United States.”

NAI – which is certified in Ireland and hires its pilots from Singapore – has said that the opposition to its application is protectionism, driven by the major airlines who control more than three-quarters of the highly profitable transatlantic market.

On the company’s existing US routes operated under a separate company called Norwegian Long Haul, tickets are, according to several sources, often more than $100 cheaper than the closest competitors’ fares.

NAI said in a statement it still expected to win final approval from DOT, but it was disappointed with the ruling.

“While we think it is unfortunate that DOT feels the need to further delay issuance of our permit, which has been pending now for over six months, Norwegian Air International stands behind its business — from its pilots and cabin crew to its affordable fare model to its desire to bring competition to the transatlantic market — and looks forward to receiving approval to operate without further delay,” said NAI CEO Asgeir Nyseth.

09/05/2014