Transportes Olympics granted “Permanent Operating Authority” under new Pilot Program Rules. OOIDA cries “Foul”

Transportes Olympic national fleet
The Transportes Olympics is not a small fleet despite only offering 2 trucks for inclusion into the Cross Border Pilot Program
After the completion of their first trip to Garland Texas under the new Cross Border Pilot Program, Transportes Olympics has been granted “permanent operating authority” by the FMCSA as specified in a Memorandum of Understanding (MOU) regarding the cross border program.

The announcement was made last Wednesday by FMCSA North American Borders Specialist Carla Vagnini at the fall meeting of the Canadian Council of Motor Transport Administrators that was held in Ottawa.

Under the rules, Transportes Olympics will no longer be required to undergo a Level I CVSA inspection each time it crosses into the United States under the program.

The MOU states the “permanent operating authority cannot be suspended or revoked unless the motor carrier receives an unsatisfactory safety rating pursuant to U.S. laws and regulations.”

The memorandum also states that Mexican motor carriers with permanent operating authority may convert to standard permanent operating authority “upon termination or conclusion of the initial phase (pilot program).”

The operating authority was “earned” not given to Transportes Olympics because of their successful 18 month participation in the previous pilot program in 2007.

Of course not everyone is happy, especially that “joke” of an executive vice president of OOIDA who stated;

“It goes to show how much of a joke this so-called pilot program actually is. Our government should be ashamed!”

Spencer goes on to spin it his way, which as usual has no relationship to the truth of the matter. Spencer claims that Transportes Olypmics is being given special treatment and “IRREVOCABLE” permanent operating authority. No operating authority is irrevocable.

According to an article by Landline Magazine Senior Editor, OOIDA is claiming that Transportes Olympic is being given “special consideration” on matters that would cause other “new entrants” to be denied authority or have their authority revoked.

“Transportes is being given permanent, irrevocable authority to operate throughout the U.S. based upon the 18 months they participated in the 2007 demonstration program even though a compliance review completed at the end of that program showed that Transportes had violations that would have caused a new entrant carrier in the U.S. to lose their operating authority.”

Transportes had a number of violations in its 2009 compliance review following the previous demonstration program, which included violations such as using a driver before the motor carrier has received a negative pre-employment controlled substance test result and failing to ask employees about a positive test or a refusal to test in the previous two years.

The company also notably violated a subsection of 383.305, random testing. That, according to the FMCSA’s list of the industry dubbed 16 deadly sins for new entrants, would be an automatic failure for U.S. companies getting their authority to operate for the first time.

That’s the claim being made. Let’s discover the truth together, shall we?


OOIDA is basing their accusation from a compliance review conducted on Transportes Olympics on 2/24/2009 at their headquarters in Apodaca, Nuevo Leon in which they received a SATISFACTORY rating. And for the record, at the time of this review, Transportes Olympics WAS NOT a new entrant, having been a participant in the 2007 demonstration project at the time. They had passed a “new entrant” compliance review on 6/25/2003. Transportes Olympics has been in existence since 3/29/1994.

During the review, the FMCSA inspector found 8 areas of concern.

Perhaps, as Spencer claims, some of these could have been part of the superfluous “19 deadly sins” that could result in a new entrant being denied authority. But again, Transportes Olympic was not a “new entrant”.

Here’s what the on site FMCSA inspector had to say.

Part 40/382

Carrier hired 3 new CDL drivers in the last 365 days. As per EFOTM carrier was to test 3 drivers for pre-employment.Carrier used 1 of 3 drivers before receiving a negative pre-employment test result. Carrier had an average of 5 driversworking for them last year and was required to random drug test 3 drivers for drugs and 1 driver for alcohol. Carrier didrandom test 3 drivers for drugs but did not conduct the required 1 random alcohol test. Carrier conducts their own randomselection by using the program Randomizer purchased by them over the internet. All drug testing is done by either QuestDiagnostics Mexico SA de CV, PH # (811) 093-0862 and Rio Physical Medicine Center, 5505 S. Expressway 77, Suite #200, Harlingen, TX. 78550, PH # (956) 412-2200. Annual rate was calculated by 4 quarters. Lastly, the carriers lone person who has direct contact with the drivers did not have reasonable suspicion training.

Part 383

As per CDLIS Sampling Criteria all driver CDL’s were checked and verified.

Part 391

Carrier has an average of 5 driver positions and 5 DQ files were checked and violations were noted: Incomplete application and no background drug and alcohol check.

Part 395

Carrier has an average of 5 driver positions and as per EFOTM, I was required to check 5 drivers and 150 RODS andviolations were noted: false records and form and manner violations. Supporting documents such as bill of ladings, tripsheets, Comdata, toll receipts (int’l bridges and toll roads), fuel receipts, payroll records, and scale tickets were provided tome by Mr. Chavez to verify any falsification of time records. Carrier also uses J.J. Keller’s “Driver Management System” tocheck logs for violation of the 11,14, and 70 hr rule as well as form and manner violations. Carrier also has an HOS policythat requires each driver to sign a statement when they have an HOS violation.

Part 393/396

Carrier currently operates 5 truck tractors and 57 trailers. As per EFTOM a total of 13 vehicles were checked formaintenance files and no violations were found. As per EFOTM a total of 11 vehicles and 330 DVIR’s were to be checked. Idid not meet sampling size even though I increased my sample size to 31 vehicles as per trailers being pulled by trucktractors and still was short of the 330 days. A total of 226 DVIR’s were checked and no violations were found. Lastly, 2 of 2mechanics both had their CMV inspector and brake inspector qualifications.

Most importantly, the FMCSA inspector concluded;

Enforcement will not be recommended at this time. I left the carriers office with the satisfaction that they will comply witheverything they were written up on. I recommend compliance monitoring on this carrier at this time.

We choose to believe the inspectors conclusions instead of falling for Spencer’s continued buffoonery and slanted opinions.

Transportes Olympics OOS rate and accident rate was 0% for the past 365 days as found during the review.

The entire COMPLIANCE REVIEW can be seen HERE