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

1. United States/Mexico Cross-Border Long-Haul Pilot Program John Poole III, Texas 28th Annual IFTA Business Meeting Virginia Beach, Virginia August 17, 2011

2. US/Mexico International Border 1

3. US/Mexico Cross-Border Activity CY 2010 • 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 2

4. 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 3

5. 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 4

6. 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 5

7. 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 6

8. United States/Mexico Cross-Border Long-Haul Pilot Program IRP/IFTA Cross-Border Sub-Committee • 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 7

9. United States/Mexico Cross-Border Long-Haul Pilot Program IRP/IFTA Cross-Border Sub-Committee • 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 8

10. Questions/Comments? United States/Mexico Cross-Border Long-Haul Pilot Program