Im going to comment today on heavyduty prospect. Buyers of heavyduty today can offer technology that will keep driver safer active breaking. But on the horizon we see Great Potential for both vehicletovehicle messages for b to e and b to i. Its dedicated using short range. The government got it right when it set aside for only safety relatedcommunication. In 2013 the fcc began exploring to also support unlicensed wifi users. Provide nod consensus yet reached. The concern is allows other technologies to be shared could create and sending lifesaving communication signals. Lets say a vehicle number one is approaching red right but the blocked by a building. The driver in vehicle number one can be alerted of an oncoming vehicle number two thats not slowing down. The alert will allow the collision to be avoided. For example wifi user the accident would not be avoided. 5. 9 giga hertz frek roadside and inspections stations where truck stop along the interstate with long license and create potential hazard. Protocols to the truck to the weight station that allow them wirelessly communicate to the inspection station such as if the weight of the vehicle is bellow the limit. It keeps those trucks moving and authorities focus on other trucks that havent validated in a program called trusted truck. Automotive technology, connected Vehicle Technology for on board collision. We think its interesting. Implementation will be to how safe its to the vehicle and society. Its wirelessly linked to a truck thats following behind it. Volvo grouper in the process of implementing that will be extended to three trucks in 2016. 10 fuel efficiencies. Were developing technology for connected automotive driving because of potential to enhance safety. Increasing the speed of adoption should be achieved if we eliminated 12 federal taxes added to the purchase of a new tax. Another challenge is that though product, different states are developing different regulations to provide vehicle testing, will need a National Standard before the vehicles can become operational. Adoption of these new technologies will allow us to move increasing amount of freight for a growing population but it wont solve all of our freight capacity problems. Thank you for the opportunity to testify to you today i look forward to questions. Thank you welcome. Thank you madame, thank you for having me. Began 20 years ago this month in 1995, our problem was to create at scale where pallets will be stored. We should ship brown boxes we developed pallet in and box out. We are only at retail. Now thirdparty are responsible through all units sold through am zone and many of our services to warehouse and fulfill orders of their goods. We also receive small brown boxes to be stored waiting for a customer to place an order for the goods. In some our warehouses now support box in and box out. Last december Time Magazine produced a video. Thank you for shoeing showing it here today. Looking backwards as the trailer door is open. There is sound for this. Thank you. After we receive an item it is stored waiting for customer order. The orange things are robots. They move up things up to 750 pounds. Once a customer order an item it is retrieved and sent to packaging. And then it gets loaded on a truck for shipment. While we continue to im improve efficiency ups usps, 15 Sortation Centers that provide ups boxes going to the same location. It benefits by letting it make better use of our facilities and personnel. I look forward to your questions. Thank you very much. Mr. Fox, welcome. Thank you very much for the opportunity. My name is greg fox im executive nsf railway. Most of you know a large western railroad 47 employees. Ive seen safety improve year after year. In 2014, achieved ever safety results. You can see the trend. Technology has clearly played a role. While technology is the focus of the hearing investment and inclusive Safety Culture for bnsf employees is critical. Investment and maintenance renewal the orange bars that you see is also an important part of safety. Invest significant amount of capital into the network. The nations real operation are 140,000mile production line. It means that infrastructure and equipment sometimes fails or that human error can occur. A riskbased initiatives are all aspects. There are combination of critical safety processes as well as technology. While youre very familiar with implementation of training control i would like to share a brief video that i lust rates Detection Technologies that we deploy on the railroad to produce safety benefits. Track geomet ri vehicles. Track or relationship of the rails at one point over a distance. Realdefect system. Wheel temperature detecters that use infrared and machine visioning systems that investigate for passing trains. Are deploying unman system or drones for bridge inspections in a variety of conditions. Also earlier this year, we were one of three award the path award Pathfinder Program. All of these technologies as you might expect generate data. Were working with ibm to take the information we already use to detect safety standard deviations to ultimately drive further understanding of the factors that cause the deviations in the first place. Our goal is to drive proactive maintenance practices. Lets take a look at one example. Ill walk you through how we are using to improve equipment safety. You saw the equipment detectors earlier. They continually monitor the overall equipment of passing trains using thermal and visioning systems. Well go from focusing on absolute alarms really to understanding composite alarm. Big data will allow us to monitor health over time in across Rey Rodriguez and railroads and ultimately assist in capacity and safety. As you can see the technology and potential here is tremendous as long as we have regulatory framework. The technologies are very complex and e e and at a very high pace. The Railroad Industry will continue technology and support for infrastructure. Thank you mr. Fox. Madame chair woman. Big ships and ocean carrier are changers. Ill spend the next few minutes talking about technologies and strategies to meet the challenges. Modernizing infrastructure is first strategy. No port in the United States is investing more than the long beach. Our 1. 3 million Harbor Terminal is the port of the future. Its the greenest most sustainable that can acomoddate the worlds greenest ships. It will strengthen our ability to compete with canada and mexico for trade that sends cargo to the United States and supports a million and a half million jobs. This terminal by itself would be the fourth largest port in the nation and it will boost the capacity by 20 . Long for jobs at the terminal will also be modernize and will ship to technical occupations with long short labor increasing when the terminal reaches its full capacity. These advanced technologies will help improve reduce air pollution and will demand a great deal more electricity. How would we deal with electric power, the answer is our Energy Island initiative. The technologydriven strategy for transitions to sustainable selfgeneration systems and Renewable Power sources. I talked about the infrastructure or the hardware strategy. What about the software . It would not be possible to meet the challenges we face without changes the way the port operates. We have joined our neighbor, the port of los angeles in a federal commission sanction jointport initiative that will be aimed of enhancing reliability of shipments that come in, and were making progress which include full range of cart owners, ocean carrier marine operators, labor and management. A few things have come out of this jointpoirt port. Supply chain operation from data they are examining new roles to gather filter and distribute reliable data to the benefit of the entire supply chain. Promising entrepreneurial software is also appearing and with Great Potential. One is software that operates on smartphone. Under their system Truck Drivers move important containers much as a taxi driver would move passengers to airport. It is also showing great promise in transferring information between in realtime between marine terminals and trade operation. Stay tune for much more that will be coming from the initiative. In conclusion they are heavily relying on technology in order to meet objectives of not only good but worldclass velocity and reality. As local public agencies, are shifting from our landlord role to one of active supplychain part required to and International Trade. We look forward to looking with our federal partners in an exciting venture, thank you for the attention and i look to answering any questions. Thank you very much, we will begin our round of questioning at this time. Some research on the truck market estimates that by 2020 to 2022 were going to see level three Truck Technology in certain states. The level of drivers still require to be in the vehicle but the truck can be switched into an autopilot mode when circumstances permits. When do you think were going to see truck equipped with that levelthree driving technology in american highways and can you go into it a little bit more of how that would work . You said that you read that it was going to be available in 2020. So five years from now and you said in certain states. Right. Thats possible, there are states that have more flexible laws to allow for testing. The challenges, of course, products we built go across the states. We need to have some sort of federal standard. The technology is actually leading the associate. The society. Thats your level three. That technology is not that far away in terms of the Actual Technology which roads can it be driven on and are you going to be comfortable in your vehicle with 160,000 pounds of fright moving beside you with a driver thats not theyre in control but not fully if in control. Theyre going to have to be much more alerted to us and then also were going to need a standard to cross all the nations. Our vehicle operate in one state at a time. I understand that the United Kingdom they have the least restrictive regulations. Within the United Kingdom theyre not restricted by the boundaries right . I dont think so, so i dont know the answer to that fully, sorry. Do they its my understanding they dont need special permits or even special insurance in the United Kingdom to be able to do that. I know that Many Companies are planning on on doing some testing in the United Kingdom on british roads for that reason specifically. What do you think we need to do here in the United States . Is it possible for the federal government to move forward with regulations if society is not ready for it yet . So its a balance. You dont want to be forcing or identifying which technology to use and then putting that into some sort of federal regulation. But its a new world that were in and regulations even putting terms like what is a driver, is the driver the system thats moving the something or the guy or gal thats sitting behind the driving wheel. What is the system . There are so many similar semantics. What can we do across the states so that when i know we design these vehicles they can operate in all of the states . So we need standardization of simple things. The terminology, i think is one step. How close are we . A long way from that. Mr. Fox, in january this Committee Heard testimony from the up regarding importance of performancebased standards and regulation. They moved government away from the sign based standards. For example mandates that intervals of inspections. Do you believe that performance standards can help foster innovation and Technology Driven advances better than the designed based standards . We believe thats the way to progress. Performance face on the outcome than the method. By focusing on the outcomes were free to innovate with technology or process changes. We had a great example for working with our safety regulator. Its an example of that on the bnsf. How effective have they been . We had progress with the waivers. Thank you. Senator incident booker. Thank you chairman. Im concerned, we share the same goals and i appreciate all of your work. I appreciate all of the things your company does but im really just kind of concerned when i read your written testimony you refer to the legislation i introduced with senator rubio in it and i was actually pretty shocked as to what i read. The bipartisan in both house and senate piece of legislation our bills for those who read it places timelines and guidelines in consultation can the department of transportation. Some of the testing has already happened but our bill provides further structure for testing alone. I can understand why a lot of people in the industry want to attack this as you did in your written testimony and maybe even misbelieve people. The industry has been sitting on the spectrum since 1990. I want to be clear what this bill does for you and for others. It has been working on new technology while at the same time other Technology Radars have evolved without using dedicated spectrum. Over billion dollars of taxpayer Dollars Money has been spent and our bill sunt simply asks for testing to see if the limited resources, precious resources that you indicated can be shared. It is a factfinding bill and that is all. Its not if its not safe to share, i agree and the bill clearly says there will be no sharing. If it can be shared, im sure people should agree that it should be. Im disappointed of the portrayal of mine and intended rubios legislation to your testimony. Ive never seen something clearly misleading. Safety should come first but im disappointed by the xag did you read our legislation yes or no . No. You read the legislation but you state that wifi will open up wifi access. That is very frustrating. You know when i was mayor i used to think in god we trust but everybody else bring me data, facts. The truth should come through. The factbinding bill simply looks to understand what is the best way to achieve safety goals that your company puts first this senator and the whole panel puts first. Im just curious my last question to you, i believe consumer should have all on the table. I wonder if you agree that our transportation policy should be technology neutral. What is best to ensure that policy and safety dont lag behind the cuttingedge technology. Do you agree with that . Of course i agree with that. Can i respond to some of your comments then . You certainly may. The unlicensed wifi doesnt have structure like a licensed frequency does. The industrial electronic engineers group, that is the group that put two proposals forward. They have not come to conclusion. Our position is that the legislation is simply premature. Im sorry. I can believe your testimony you submitted to United States senate which doesnt say what you just said. It says you are against this bill because and i quote it will open up 5. 9 giga hertz spectrum. That is not true and you agree with that. What the bill does, lets begin to have a factfinding endeavor that better understands the use of spectrum and the question, thats why i know your Company Wants to protect it. Thats all were looking to do. Attacking the bill on clearly false standings is insulting. My time has run out. Thank you senator booker. I welcome senator nelson. Thank you madame chairman. What about what booker said . We come to an agreement that we do not want to see that it is shared and so unless the governing bodies are sure that there is no interference from other technology. You say that technology is practical to basically the spectrum. Do you think the spectrum is practical to be used by the automobile spray any time in the near future. I dont know the answer to that. Any time the bodies have not come to a conclusion after putting two proposals. There are four thousand crashes no. There are four thousand people that are killed each year from serioustruck crashes. How would you suggest technology is used to lesson that . The more that vehicles can speak to each other vehicle to vehicle, this is truck talks to trucks and cars talking to cars, the more they can talk to each other to let the other one know, hey, im here you need to stop, that is a technology that will reduce crashes. Over last week i met with a grieving mom whose daughter on her honey moon when the traffic had stopped on interstate 95, it literally come to a stop and her new soninlaw and daughter were in the traffic stopped but a truck with the driver not having had a lot of sleep because of his company requiring a roundtrip trip within the state of florida in the same day of 16 hours, the truck driver was basically sound asleep and so she is a grieving mom because of that truck plowing into the back of all of those stopped vehicles. How would how would you think technology could address the issue of Truck Drivers safety . Im a mom, i would grieve with her obviously. Thats horrible. Theres on board recording system that would record the hours of service the driver can drive. Perhaps technology that should shut the truck could be something, requiring the trucks have on board recorders, this technology is available and i believe its close to being legislated. Those are things that can help. And this particular truck was not in intra state what rules that we have up here, for example, we dont allow the trucks in our roads more than 28 feet, but they are allowing two tandem trucks intrastate of 33 feet, which is an issue that will be in front of this committee with regard to truck safety. Let me ask you you all have acomoddated the big ships from asia and soon in a year or two when the panama canal is completed, you want to give any quick pointers, what we could do that Lessons Learned on handling the huge, huge container ships . Thank you for the question. It is the game changer but the term of being ship is a changing term. When i started working in the port about ten years ago a big ship was 8,000teus. It can acomoddate 13,000teu ships. We are customers at the port of long beach are now ordering, it is a moving target to our colleagues on the east coast they are dealing with this with ships that are transiting the canal. It has to do with depth channel to get them there. That is exactly the focus of our working groups to figure out a way to operate our ports so we can deal with a very large amount of unsorted containers. The question was what are the Lessons Learned that you can share with the other ports . Lesson, we are still learning senator, and they have to do with having adequate supply chacy. Discipline in their storage of the vessel which has been thrown aside because of the way the vessels are calling on asian ports. It has to do with working much much closely with communication of data which were again finding extraordinarily within the supply chain. Being able to provide with information days before they hit terminal so they can plan moves is all lessons we are learning. Im not sure that we could tell much more to our friends on the east coast to how to deal with that issue beyond that. Thank you senator nelson. Thank you for holding the hearing and thank you for the hearings. Congratulations on 20 years. It seems yesterday and definitely would say that the information of delivering goods and services has been quite impressive. We didnt i didnt hear in your testimony discussion about the droning issue. The full committee has had testimony on that and an area that continues to move forward and delivering product. It would have been great if you would have said if it was about seatle instead of long beach. Happy to hear about your description that we can actually increase the cargo shipments because there is that demand in product to be shaped but we have to continuously make improvement, and this is something we see in seatle as well. Somebody estimated instead of three million Cargo Containers we could do Something Like six. Its not out of the question. You described that. You described that would be good. Were talking about efficiency, my question to you and anybody else even though were talking about technology that helps us move and be more knowledgeable about the product do we still need to make investments of freight mobility to make sure as those products are being moved around that our technology isnt measuring stuff and making us less competitive . Well, thats partly to me, i appreciate that and thank you for congratulation. Going to 15 of those 20 years. I think we are looking for inohative innovative policies. We congratulate for that bill. If anything it can be broader. But that kind of thinking and that kind of communication. Theres also need for communication among stakeholders. Thats a big part of your bill to get them talking to one another to get an innovative solution. Thats something we are doing with the usps. Big component op our interaction with them is making sure they get forecast of what were seeing, what were going to be shipment and that is particular important for sunday delivery so they can use sufficient routes. He mentioned the magic words as im wrnd, panama and canada. Whether that business is going to go to, you know, canada, via panama canal. Do you support for the freight efforts at the federal level . As we see International Trade continue to increase and we are now at levels that are peeking over we will surely be seeing bottlenecks. As i mentioned in our testimony strategies of infrastructure with technology infused with operational efficiencies, i believe that the legislation youre proposing is timely its its critical to the future of our chain opt and hope to be able to collaborate with your team on that. Its so critical to be looking ahead recognizing that infrastructure bottlenecks dont go away. It takes years and years to solve the bottlenecks as they come up. How do you your system, as i said i appreciate it because you describe what had the future opportunity was, not just an automation, how do you think we tell the story on a national basis. Is this data that the supply chains from other ports have. Its data but fractured data. Right now its critically important that we bring data in through a reliable gaitway and make it transparent and public. We have challenges ahead of us. We are working on those very, very hard in our working groups. Seatle that is worked very hard on efforts as well. So there are opportunities but theres a lot of opportunities ahead of us but theres a lot of work to be done. Thank you, thank you madame chair. Thanks for holding this hearing, thank you to the witnesses. Mr. Fox, december 2013 Government AccountabilityOffice Report found that the fra faces a lot of challenges, safety challenges including the fact that the inspectors of the capacity have capacity to expectless than 1 of the activities. I come from a state with entry point of oil in canada. And as you know, fra partners with states to oversee inspections, oirpcions. I sent a letter to the appropriations committee. I would like to hear more about technology to prevent derail mints. Do you think thats Better Technology that could get us through this . I think weve shown as an industry and bnsf that we Leverage Technology and the results have clearly been best ever safety results from an plea and derailment prospective. Beyond that, theres opportunity. Theres theres tremendous opportunity. Again, i think as we talk about regulation, part of our challenge today is is regulation based on a design standard and as we focus on outcomes again that will allow the industry to innovate, innovate with technology, process changes. How is that what kind of technology would help with this . As we look forward as i mentioned mentioned in my testimony, i think this Drone Technology very early in in practice has a real has a real potential. This Pathfinder Program with faa will move beyond lineup sight where we could utilize drones for hundreds of miles a day taking highest speed images, highdefinition images of our network down to a quarter inch academy accuracy. Okay. I would just in the last week, this is not a northern issue where a were in trouble. [laughs] a small bridge collapsed. It happens to be near minnesota can canada border. One of the things that we talked about, in addition to bridge collapsing theyve been having with that railroad and the workers not allowing us to cross that railroad, the issue was that theyve been having costing issues there. Eight to ten hours a day the trains in the middle of the town. People have to drive two and a half miles around the town. The Railroad Safety institute to more accurateliest mate train arrival and crossings. If we could have a signal for the people if theyre deciding to take a two and a half mile route before they made the decision with some kind of technology so that would empower drivers to know what to do. I just wonder if you had an idea. I just did an amendment and it was brought home to me why i did it. I think when we walk about federal fund supporting freight projects, there clearly needs to be part of that. Obviously weve been active in that area with contributions against those great separations. When were talking about train head lights we have to be talking about train head lights. And the side track that was another thing they brought up. If the trains could wait some where else they wouldnt be waiting in the middle of the town. We have all requirement about how long we can block crossings and obviously we spent a lot of energy on ensuring ive called about a number of issues, so thank you. Just one more question on distracted driving. Right now only one state received our funding for the distractive driving grant which we would really like to have change, the ton of money sitting there and we have emerging problems. Thats why we have sponsored a bill to change some of the criteria so we can get the money out to the states for education efforts, its called improving Driver Safety act. I thought id ask you what kinds of technology we know drivers are doing things they shouldnt do in the cars, a lot of them have admitted in surveys and its killing people to the point where we had 424,000 injured. And again these are individuals making decisions on their own. But are there any technologies you think from the Car Companies that you think will be helpful with it . Well, i can speak not from the Car Companies but the group that im with we dont make cars, we make everything but cars. I can speak from the heavyduty truck side. We do have alerts that are built in for a driver to wake them up. Its through either some sort of vibration in the seat or loud sound. So you know, its some heavyduty prospective perspective. Okay. Well, i think we know i appreciate your words on trucks. This is an issue for all vehicles as we try to figure out if theres anything to shut down technology when people are in the cars. Its just a grown problem so, all right thank you very much. Thank you senator. Were going to have a second round of questions in case any other senators are still trying to get here to the committee hearing, and i would like to begin first of all on your video if you could have had the teddy bear delivered to nebraska or new jersey, that would were happy if you would like to be hugging a teddy bear. As we look at networks out there, how do you think that that will benefit consumers . Thank you madame chair, very much. The more broad transportation infrastructure is very important to consumers because it affects how they receive the goods they purchase on line. On behalf of customers we have been try toing to improve. Increasing automation is going to be helpful. But they have a choice. Thats what we always try to provide them. Its a choice of speeds. We talk about drones. Drones are really the only way to figure out how to get goods to consumers for less than 30 minutes. We are offering our customers a slow delivery that givers them additional delivery if theyre willing to accept it when it comes. Then its they can get an additional benefit from us. Its all about providing our customers the choice. Obviously it applies more broadly to american consumers. Thank you very much. How i would love to talk to you more about drones. But sadly im coming down to either about trucks. We recommend the use of 10 feet longer trucks. The department of trmcion came out transportation came out with a system. Thats a car length and a half. The larger and heavier trucks are greater destruction with greater destruction occurs. The weight of course is what goes into the inertia and Kinetic Energy and object like this. So it is wait times velocity is inertia, not the length of the truck. Safety should be the first but also the impact on the infrastructure as well. Those heavier trucks, with the tear up more of our local wrote . We dont support heavier trucks typically. Our support is for a longer truck. Not increasing the weight limits at all. Increasing the length of the truck should not affect the infrastructure adversely. It can help us because while going over a bridge the weight is less concentrated and, therefore, easier on the bridge. I appreciate that. Lastly really quickly, another balancing act as you want greater safety but also they want to see what, put the least necessary burden on businesses and how they operate. The big issue of minimum insurance is one of have some concerns that and look for you you to just give me your thoughts. With the truck size and weight we realize trucks are getting bigger, causing big accidents as well over the last 20, 30 years. Minimum insurance has not been raised since the 1980s. Im wondering do you think that there is a needed minimum insurance increase or at least pegging its amount to elevated regularly on an ongoing basis . It seems very reasonable to me. I mean, that carriers the we use are the ones that were directly affected by the. The carriers we work with our reputable ones. We certainly would not want are products of traveling over problematic or difficult carriers. Im not sure that the correct answer for you so because it would not be directly affecting us at this point. Thank you very much. You can meet me out by the capital with it, if you would like. Thank you, senator poker. I would like to announce the hearing record will open for two weeks entering the time senators are asked to any questions for the record. Upon receipt the witnesses are requested to submit their written answers to the committee as soon as possible. I would like to thank the witnesses for being here today and i thank my colleagues who attended the hearing. Thank you all. We are adjourned. [inaudible conversations] before going out for the august recess, the senate will take up cybersecurity legislation which would encourage private companies and the government to share information about cyberattacks and data breaches. Heres a Hudson Institute event we covered yesterday. Its two hours. All right good afternoon. Im samantha ravich, Principal Investigator on this project and want to thank everyone for attending, and particularly want to thank the Hudson Institute and the foundation for defense of democracies for cohosting this event. Also want to thank the coauthors of the monograph. Summer going to be speaking today, juan zarate and on the following panel mark and michael but somebody in the some may be in the audience. Tiffany was quoted extensively in a recent Washington Post series on the cyber vulnerabilities of the auto sector. A few housekeeping notes before we get started. The first panel will begin momentarily and with a rolled right into the second panel, finished around 2 00. There is a short survey that i would ask to be good if you havent taken it already we would really appreciate it. It will give us anonymous shortcomings you can fill it out and live in a box, it will really give us a better idea about how people are thinking about cybercom abled Economic Warfare and where resources should be put to it. We will be publishing both a