Overview and Purpose of Agreement Sample Clauses
Overview and Purpose of Agreement. The purpose of the Agreement is to provide for a cooperative working arrangement pursuant to the Shipping Act of 1984, as amended, for the formation and operation of a regional Chassis Pool that is intended to improve the quality and efficiency of operations relating to the use and operation of intermodal chassis in the Southeastern United States. The three ports participating in this agreement have concluded that the most efficient, reliable and environmentally sustainable approach to chassis provisioning in the South Atlantic region would be provided by an interoperable “grey” chassis pool operated under a single provider utility type model. Given the successful operation of the SACP multi contributor pool over the last 15 plus years, this Agreement designates SACP, as Pool owner and operator for such a regional single provider pool covering the Ports’ facilities and other locations in the region. Pursuant to an agreement(s) between SACP and CCM LLC (and/or a CCM LLC affiliate) (together, such affiliate and CCM LLC are referred to herein as “CCM”), CCM will serve as the Pool Manager and the sole Contributor to the Pool. SACP or CCM shall rent the chassis to Pool users pursuant to written use agreements and a publicly available SACP schedule of Rental Rates. The structure of the Chassis Pool is based on the Ports’ determination that the chassis needs of the South Atlantic region, including adequacy of supply of chassis, the need to upgrade the fleet, efficient pool operation, and sustainability are best served by a single provider interoperable pool owned by SACP, with CCM as the sole Contributor and Pool Manager under contract with SACP.
Overview and Purpose of Agreement. The purpose of the Agreement is to provide for a cooperative working arrangement pursuant to the Shipping Act of 1984, as amended, for the formation and operation of a regional Chassis Pool that is intended to improve the quality and efficiency of operations relating to the use and operation of intermodal chassis in the Southeastern United States. The three ports participating in this agreement have concluded that the most efficient, reliable and environmentally sustainable approach to chassis provisioning in the South Atlantic region would be provided by an interoperable “grey” chassis pool operated under a single provider utility type model. Given the successful operation of the SACP multi contributor pool over the last 15 plus years, this Agreement designates SACP, as Pool owner and operator for such a regional single provider pool covering the Ports’ facilities and other locations in the region. Pursuant to an agreement(s) between SACP and CCM LLC (and/or a CCM LLC affiliate) (together, such affiliate and CCM LLC are referred to herein as “CCM”), CCM will serve as the Pool Manager and the sole Contributor to the Pool (such agreement(s), collectively and as amended from time pursuant South Atlantic Multiport Chassis Pool Agreement FMC Agreement No. 201391-004 First RevisedOriginal Page 7 practices, with a reasonable and predictable operating profit based on a utility type business model. To the extent it incurs operating costs relating to the administration, ownership, operation, or management of the Pool, SACP may recover such costs as part of the Rental Rate.
a. Pool Chassis may be offered for rent based on volume discounts off of a base Rental Rate. Volume discounts will be based on volume usage paid for by a User for usage of Pool Chassis in support of its transport operations. For purposes of this subsection, in the case of a shipper, “transport operations” shall include transport of its cargo.
b. In the Initial and Additional Terms (as defined herein), the initial Rental Rates and any changes in Rental Rates (increases or decreases) from initial Rental Rates would be based on: actual or anticipated changes in costs which are beyond the reasonable control of SACP and/or CCM (e.g., port labor, insurance and claims, tires, parts, repositioning costs, Chassis lease costs, etc.); or costs driven by Pool volumes or utilization (additional data cleansing or inspection staff, additional Chassis lease costs, additional repo costs, etc.); as well as, actual...