1. (Auditors/Investigators) 8370 Burnham, Suite 100
2. El Paso, TX 79907
3. Phone: (915)593-8574   Fax: (915)594-8857

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3. Employers are responsible for their officers', employees', agents', consortia, and/or contractors' compliance with the requirements of 49 CFR Parts 40 and 382.
    
4. Los empleadores son responsables por el cumplimiento de sus oficinas, trabajadores, agentes, consorcio y contratistas. Con los requerimientos del 49 "CFR" (Código de Regulaciones Federales) parte 40.
    
5. Laboratory must transmit aggregate statistical summary on semi-annual basis
    
6. Asegurar que cada laboratorio use en sus programa de examen de drogas estadísticas del examen de orina de sus conductores trimestralmente al año.
    
7. Notice: On April 28, 2003, the FMCSA published a final rule revising the hours-of-service regulations for commercial motor vehicle drivers. Under the new rule, drivers may drive 11 hours after 10 consecutive hours off-duty, but may not drive beyond the 14th hour after coming on-duty. Similar to existing rules, drivers may not drive after being on-duty for 60 hours in a seven-consecutive-day period or 70 hours in an eight-consecutive-day period. This on-duty cycle may be restarted whenever a driver takes at least 34 consecutive hours off-duty. Short-haul truck drivers, who routinely return to their place of dispatch after each duty tour and then are released from duty, may have an increased on-duty period of 16 hours once during any seven consecutive day period.
   
   Passenger-carrying motor carriers and drivers are not subject to the new maximum driving limits. For more information on these regulations, please access the FMCSA website at www.fmcsa.dot.govx.
    
8. Aviso: En Abril 28, del 2003, la FMCSA publicó una regulación final revisando las horas-de-servicio para chóferes de vehículos comerciales. Bajo la nueva regulación los chóferes pueden conducir 11 horas después de 10 horas consecutivas fuera-de-servicio, pero no pueden manejar mas allá de las 14 horas después de regresar al servicio. Al igual que reglas existentes, los chóferes no pueden manejar después de haber estado en servicio por 60 horas en un periodo de siete días consecutivos o 70 horas en un periodo de ocho días consecutivos. Este ciclo de trabajo puede ser volver a comenzar cuando el chofer tome por lo menos 34 horas consecutivas fuera-de-servicio. Chóferes de camiones de carga pequeños, quienes regularmente regresan a su destino de despacho después de cada viaje y entonces son relevados del servicio, pueden incrementar su periodo de servicio de 16 horas una sola vez durante un periodo de siete días consecutivos.
   
   A los transportistas y chóferes de vehículos comerciales se les requiere cumplir con las actuales regulaciones de horas-de-servicio hasta Enero 3 del 2004. Cumplir con las nuevas regulaciones es mandatorio para todos los transportistas, excepto las operaciones de transporte de pasajeros, comenzando en Enero 4 del 2004. Autotransportistas y chóferes de transporte de pasajeros no están sujetos al limite máximo de manejo. Para más información de estas regulaciones, por favor entre a la página en el Internet del FMCSA en www.fmcsa.dot.gov.
    
9. The Federal Motor Carrier Safety Administration has a Spanish language version of its website at: www.fmcsa.dot.gov/spanish/.
    
10. La Administración Federal de Seguridad de Auto transportista tiene una versión en Español en la siguiente página del Internet: www.fmcsa.dot.gov/spanish/
     
11. A complete Educational and Technical Assistance package entitled " A MOTOR CARRIER'S GUIDE TO IMPROVING HIGHWAY SAFETY" is available free on the FMCSA website to assist you in complying with the safety regulations. It contains many forms and documents useful for improving the safety of your operations. Check: www.fmcsa.dot.gov/factsfigs/eta/index.html.
     
12. Un paquete completo de Asistencia Técnicas y Educacional titulado "Guía de el Auto transportista para mejorar la seguridad en la autopista," es disponible gratis en la página FMCSA ( Administración Federal de Seguridad de Auto transporte) para asistirlo a Ud. con el cumplimiento de las regulaciones de seguridad. La guía contiene muchas formas y documentos útiles para mejorar la seguridad de sus operaciones cheque en: www.fmcsa.dot.gov/factsfigs/eta/index.html
     
13. The violations discovered during this safety audit, may affect the civil penalty proposed in any subsequent Notice of Claim. In addition, your history of prior violations of the Federal Motor Carrier Safety Regulations, Federal Hazardous Materials Regulations or the Federal Motor Carrier Commercial Regulations may also affect the civil penalty proposed in any subsequent Notice of Claim. Your signature for receipt of this report acknowledges your understanding that the violations discovered by the FMCSA during this review/inspection may be used to calculate any civil penalty proposed as a result of this review.
     
14. Notice: A pattern of and/or repeated violations of the same or related acute or critical regulations will cause the maximum penalties allowed by law to be assessed under Section 222 of the Motor Carrier Safety Improvement Act of 1999 (MCSIA). A pattern of violations means two or more violations of acute and/or critical regulations in three or more Parts of Title 49, Code of Federal Regulations discovered during any eligible investigation. Repeated violations means violation(s) of an acute regulation of the same Part of Title 49, Code of Federal Regulations discovered in an investigation after one or more closed enforcement actions within a six year period and/or violation(s) of a critical regulation in the same Part Title 49, Code of Federal regulations discovered in an investigation after two or more closed enforcement actions within a six year period.
     

GCC, (Grupo Cementos de Chihuahua) Transporte SA De CV is a Private Property carrier with main office in Chihuahua City, Mexico. The carrier has OP-2 MX operating authority acquired in 1986 and operating in the U.S.-Mexico border commercial zone in El Paso Texas and Ciudad Juarez, Cl, Mexico.

In 2007, the carrier participated as OP-1 MX operator for a period of 16 months during the initial phase of OP-1 MX PASA Pilot Program. The carrier operated under this authority between November 2007 and March 2009. When PASA project was halted, the carrier reverted back to operating on previous OP-2 MX operating authority and resumed commercial operations within the border commercial zone between Mexico & United States.

On September 7, 2011, the carrier re-applied to resume OP-1 MX authority in the new Pre-Authorization Safety Audit (PASA) Pilot Program. The carriers request was granted October 14, 2011. The carrier seeks authority to operate beyond the municipalities and commercial zones on the United States-Mexico International Border.

The motor carrier intends to use 15 power units to operate in the pilot program beyond the United States municipalities and commercial zones along the U.S.-Mexico Border. A List of commercial motor vehicles were scanned in eMCATS Vehicle List.

The carrier designated 15 truck drivers to operate in the pilot program beyond the United States municipalities and commercial zone along the U.S.-Mexico Border. A list of COL drivers are scanned in eMCATS driver list.

The carrier uses two ports of Entries to transports cement from Mexico to the United States.

1. Zaragoza Bridge Port of Entry; El Paso, Texas.
2. Santa Teresa Port of Entry; Santa Teresa, New Mexico.

The carrier operates a storage terminal in El Paso Texas located at 2825 W. Paisano, El Paso Texas under the business name of GCC-EI Paso Rio Grande Terminal. The cement products from Mexico are stored and distributed from plant location.

The carrier has Cement producing plants in Albuquerque, New Mexico; Tijeras, New Mexico; Pueblo Colorado, and Rapid City, South Dakota. If OP-1 operating authority is granted, the carrier plans to transport products from Mexico to cement plants in the U.S. and interconnect transportation between company cement plants in the USA.

My initial contact with the carrier October 3, 2011, I spoke with Manuel Milan Reyes, CEO for GCC-Transporte in Chihuahua, Mexico. I also spoke with Hugo Escobedo, Logistics Manager in Chihuahua, Ruben A Mendez, General Operations Manager in charge of U.S.-Mexico border operations, and Enrique Jaurrieta, Operations Manager and supervisor of driver & cmv office in Ciudad Juarez, Mexico. Enrique Jaurrieta would provide all documentation for review from the base office in Ciudad Juarez. Enrique Jaurrieta provided driver list names and cmv list of vehicles intended to be used in the PASA OP-1 MX Long Haul Pilot Program as required in the vetting process.

November 8, 2011, A PASA Safety Audit was conducted on GCC Transporte SA De CV at the carriers El Paso-Rio Grande Terminal Plant, El Paso Texas. Present during the audit was Ruben A. Mendez, General Operations Manager for GCC Transporte, and Enrique Jaurrieta, Operations Manager for GCC Transporte based in Cd Juarez, Mexico. Ruben A Mendez provided a notarized letter signed by CEO Manuel Milan Reyes authorizing Ruben A. Mendez to act as highest legal representative for GCC Transporte SA De CV. Manuel Milan Reyes was not able to travel to the U.S. to attend the Safety Audit review. The carrier also provided a copy of GCC MCS-150 Application updated November 4, 2011. Both copies were scanned and attached in eMCATS profile. Phase 1 verification process on five mandatory elements were discussed and satisfied. The carrier was directed to FMCSA internet website, the ETA package, the Spanish programs and other training programs tools available on-line. Ruben A. Mendez and Enrique Jaurrieta are well knowledgeable with FMCSA Regulations and stated they knew and were familiar with the website programs.

The Advisement of Obligation to Comply with U.S. statutes, regulations and Pilot Program requirements in Attachment 3 was discussed with both motor carrier officials. A copy of the signed form was given to Ruben A Mendez and Enrique Jaurrieta for their record documentation. A copy is scanned in eMCATS folder.

The Protest Application was discussed following the flow chart of events. A copy of the Protest Procedures was signed with copy and given to Ruben A Mendez & Enrique Jaurrieta. A copy is scanned in eMCATS folder.

The Advisement of Reciprocal Recognition of restrictions for Certain Mexican Motor Carrier Operations seeking Provisional Operating Authority was reviewed and understood by Ruben Mendez. A copy is scanned in eMCATS folder.

The IRP/IFTA Program Registration was discussed and a copy provided to the motor carrier representatives. Ruben A. Mendez & Enrique Jaurrieta stating they understood and carrier has met with all requirements.

The following is a summary of parts that were reviewed:

FACTOR 1 -General:

Part 387- The carrier produced MCS-90 insurance endorsement issued to GCC Transporte with public liability of $1 mil. Policy #BAP9673174-03 issued by Aon Risk Services Southwest Inc., Houston, TX. Policy underwriter is American Zurich Insurance Company with effective date September 01, 201 1. Verification of policy was confirmed by insurance agent Traci Doan at ph II 832-476-5795. The carrier has insurance cards for Texas & New Mexico operations as they enter the U.S through both States. A copy is scanned in eMCATS folder.

Part 390- No violations noted. Carrier knows marking requirements. The carrier reported no recordable accidents either in the U.S. or Mexico within the past 365 days. There are no accidents appearing in the carriers MCMIS profile. The carrier was provided with an accident register form and explained how and conditions in maintaining a file.

FACTOR 2- Driver:

Part 391- The carrier produced complete sets of driver qualification files for each driver designated to operate in the United States under the Pilot Program. Each file were viewed and no violations were discovered.

Part 382/40-The carrier is subscribed with RI-TECH Drug Testing facility located at 11 551 Chilo Samaniego, El Paso, TX, ph II 915-351-0174 email: www.ri-tech.us, with compliance to D&A testing requirement. The carrier produced pre-employment test; tests results on drivers designated as drivers with the new OP-1 MX PASA authority. The carrier random consortium pool on summary report provided by RI-Tech show contamination with carrier listing driver names no longer employed with GCC. Contamination appeared in both calendar year 2010 & 2011. RI-Tech reported a shortfall of drivers for year 201 0; 5 drivers listed with GCC were no-shows. RI-Tech summary report divided in quarter sessions. Enrique Jaurrieta, supervisor, GCC Transporte, identified 4 drivers as past employees and could not identify 1 driver listen. Enrique Jaurrieta stated names were left in error and occurred before he took manaqement of driver list. Driver passed away May 2009 and remained listed till July 201 1. Driver erminated remained listed till July 2011. Enrique Jaurrieta identified Driver as an employee working in Mexico-Only. A&l DIR reoort shows on numerous inspections reports showing interstate trips after 6/08/2010 in which did not appear for random controlled substance testing and a no-show. RI-Tech D&A Testing provided summary selection report on driver selection and notification send to carrier on the no show. It was not established whether driver had notification of the scheduled random testing. The carrier submitted statement indicating driver was never notified by carrier of his selection for random test. Rl-Tech D&A Testing confirmed they properly notified thA r.:=.rrier of the test selection and carrier would notify driver of selection. Enrique Jaurrieta identifying driver as a Mexico operator only at time random selection was made. All data are attached in EDMS and eMCATS.

Note: 2/1 4/201 2.. Response to Q #18 & #19 were modified by request on no-show incident with driver No willful knowledge of driver refusal could be sustained.

FACTOR 3- Operational:

Part 395- No violations noted. The carrier produced examples of records of duty status log sheet that drivers intend to use if OP-1 authority is granted. The carrier currently operates within a 100 air-mile radius and prepares time cards as record of duty status. Disciplinary policies signed by drivers acknowledge they adhere to log sheet & time card/sheet record of duty standards. Ruben A Mendez stated drivers are well familiar and know how to use standard log sheet. Mr. Mendez stated they were aware that, if OP-1 operating authority is granted, the carrier will required to install EOBR equipment for monitoring all record of duty status. Mr. Mendez, however, stated the carrier has contracted Safety Consultant Maria Garcia with Border Trucking Compliance (BTC) in El Paso to provide additional classroom training sessions on drivers designated to participate in course.

Note: Ruben A. Mendez stated carrier has using a GPS software installed on all commercial motor vehicles intended for use in te Pilot Program. The carrier has monitored their truck operations for the past years. Ruben A. Mendez demonstrated the GPS program on laptop showing the travel and location of all15 power units. The GPS system also monitors other activity that includes: the physical location of unit, vehicle road speed and direction of travel, vehicle fuel levels & consumption, and distinguishes whether unit is loaded or empty.

FACTOR 4- Maintenance:

393/396- No violations noted. The carrier produce complete maintenance file on each vehicle designated to operate in the U.S. under the pilot program. The motor carrier utilizes a computer software S.A.P., designed to track and monitoring periodic and preventive maintenance program on each vehicle. Drivers are assigned to individual units but do submit DVIR inspection reports.

Each cmv were subjected to a level I-V inspection in compliance with PASA OP-1 requirements with inspections conducted at the carrier El Paso terminal site. Inspections were conducted by FMCSA Border Inspectors Robert Bain & Andrew Mendoza. 13 truck-tractors received CVSA inspection decals and certified. List of cmv results scanned in eMCATS.

FACTOR 5-Hazardous Material

171,177,180- The carrier is not subject to this Part.

Factor 6- Accident

390- The carrier shows no accidents within the past 365 days in MCMIS Profile.

Vetting Results:

Vehicle-Inspection: The carrier designated 15 truck tractors to operate in the U.S. under the OP-1 authority pilot program. 13 cmv trucks successfully passed Level V inspections and received CVSA decals. 2 cmv trucks were in-shop for repairs and not available for inspection and will be subject to inspection at a later date. CMV pass-list scanned in eMCATS profile.

Vehicle-FMVSS Compliance: All of the vehicles designated by the motor carrier to operate under the pilot program were verified and meet FMVSS requirements. Photo copies scanned in eMCATS profile.

Vehicle-ECL Compliance: All of the vehicles designated by the motor carrier to operate under the pilot program have engine markings and meet EPA ECL vehicle emission standards. Photo copies are scanned with eMCATS profile.

Driver: The carrier designated 15 truck drivers to operate in the pilot program beyond the United States municipalities and commercial zone along the U.S.-Mexico Border. Name list is attached in eMCATS profile. All drivers listed have valid Class-A U.S. equivalent Licencia Federal. 13 Drivers were cleared in vetting process by the Emergency Preparedness and Security Division FMCSA headquarters deemed eligible. 2 new drivers highlighted in Driver list form have not cleared to this date. List of drivers are scanned in eMCATS profile.

Driver: (ELP) English Language Proficiency- 14 drivers were subject to ELP testing requirements. 9 drivers successfully passed test administered on 11/09/2011 and are scanned in eMCATS profile. 4 drivers flagged in Violation 391.11 (b)(2) and requested to re-test. Drive- could not be present or tested this date due to his border Visa permit expiring and unable to cross to the U.S.

Conclusion:

The carrier was receptive to the PASA Safety Audit review. The review was conducted at carriers El Paso terminal office, GCC-Rio Grande Terminal, located at 2825 West Paisano St. All requested documents that were reviewed during the Safety Audit and annual fiscal earnings amounts for Fiscal Year 2010 were provided by Ruben A. Mendez, legal representative for GCC Transporte SA De CV. A copy of the Safety Audit Report (Part A. Part B. & Recommendations) was g1ven to and accepted by Ruben A Mendez, action as highest ranking official for GCC Transporte SA De CV by Safety Aud1tor Ramon D1az, performmg the Safety Aud1t 11/08/201 1. A copy of review will be mailed to Manuel Milan Reyes, CEO for GCC Transporte SA De CV with the results of the review. Ruben A. Mendez was informed the final results of review will not be available till full PASA process1ng IS completed by FMCSA. Ruben A. Mendez stated all record-keeping documentation are housed & maintained by Operations Manager Enrique Jaurrieta at their Juarez Office. The business address is located at Calle Turbosina 119410, Colonia Jardin del Aeropuerto, Ciudad Juarez, Cl, Mexico 32610 business phone number 01 1 52-656-637-6444.

Recommendations made during initial review were amended in this report to include translation in the Spanish language to accommodate the carrier and correction made to initial responses during the interview. A copy of review results were given to and accepted by carrier official Ruben A. Mendez acting high ranking official for the carrier.

An amended copy of the Safety Audit Review noting violation in Part 382 Part 8 of this review was mailed 1/26/2012 to Manuel Milan Reyes, CEO & highest ranking official for GCC Transporte SA DE CV, in Chihuahua, Mexico at mailing address in Ciudad Juarez, Chihuahua Mexico by Safety Auditor Ramon Diaz. Copy was mailed through UPS Postal Service carrier under shipping/track # A4762RTFW4G.

On 2/14/2012,A copy of an additional amended Safety Audit review, noting motification responses to Driver D&A Questions #18 & 19, was delivered to and accepted by Enrique Jaurrieta, GCC Transporte supervisor based in Ciudad Juarez, Mexico. The copy was hand delivered at meeting with Mr. Jaurrieta in the FMCSA Field Office on 3/14/2012. A current list of COL drivers, designated in the PASA program and enrolled into a D&A Test program, was also reviewed. Mr. Jaurrieta signed a Safety Audit receipt page acknowledging the safety audit report & results.

A copy of the amended Safety Audit review was mailed to Manuel Milan Reyes, CEO of GCC Transporte SA De CV, in Chihuahua, Mexico via carriers' mailing address in Cd. Juarez, Mexico. Copy was mailed 3/14/2012 on date of review by Safety Auditor Ramon Diaz. The copy was forwarded by UPS Express mail with track number # 1 ZA4762R0492630419 for tracking purposes.

All documents that require viewing in PASA vetting process are attached in folders in eMCATS.