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PowerTrack use moves forward with railroad equipment shipment

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ALEXANDRIA, Va. (USTCNS) --- The use of PowerTrack in paying Military Traffic Management Command freight bills has taken a big step forward.

The automated payment system has been used in an expanded use.

PowerTrack paid for a large railroad equipment move from Fort Carson, Col., to Fort Hood, Texas.

Previously, there has been a single railroad freight movement paid for by PowerTrack.

However, with the second railroad freight payment, the use of PowerTrack has been expanded.

This is the first time the payment system has been used to pay for a railroad shipment using the CONUS Freight Management system, said Kiazan Moneypenny system specialist.

"This is a new way of doing business," said Moneypenny.

"This is just another indication of how we are moving toward the use of commercial procedures in all the transportation processes.

"This is a further indication of our progressive and very natural growth in the use of PowerTrack."

The railroad shipment June 14 consisted of 27 cars carrying 136 pieces of military equipment belonging to the 2nd Brigade, 4th Infantry Division. The equipment was being returned to Fort Hood following training operations.

"The Burlington Northern Santa Fe benefited because they were paid within three days," said Moneypenny. "In the past it would take several weeks."

The on-line software system PowerTrack is now paying about 52 percent of the Department of Defense's domestic freight bills by dollar value.

Most transportation companies are now compensated within three days -- in the past, they would wait 44-77 days to be paid via the paper intensive payment process of the Defense Finance and Accounting Service.

PowerTrack is an electronic commerce system developed by USBank.

For the service, USBank charges carriers a fee on a sliding scale up to 2 percent of the freight bill.

The adoption of PowerTrack is part of Management Reform Memorandum #15, a Department of Defense initiative to use electronic systems to automate and standardize military processes with the commercial world.

"It is a significant accomplishment for the Management Reform Memorandum #15 initiative," said Ken Stombaugh, assistant for travel and traffic management, in the office of the assistant deputy undersecretary of defense for transportation policy.

"We knew that PowerTrack could pay traditional freight shipments," said Stombaugh. "This demonstrates it can be applied to rail movement."

Stombaugh said he sees greater and expanded use of PowerTrack in the future.

"Absolutely -- it will be expanded," said Stombaugh. "This is the stepping stone that will allow us to move forward with PowerTrack payments to the railroads."

The expanded use of PowerTrack was praised by Tom Hicks, MTMC's implementation director for Management Reform Memorandum #15.

"This is another example of the growth of PowerTrack and the benefits it brings to the entire Defense Transportation System," said Hicks.

"We're trying to bring ourselves into current commercial business practices," said Hicks. (FROM MILITARY TRAFFIC MANAGEMENT COMMAND PUBLIC AFFAIRS).

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