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A Draft Framework for National Freight Policy Presentation to American Association of Port Authorities Jeffrey N. Shane Under Secretary for Policy U.S. Department of Transportation March 21, 2006

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A Draft Framework for National Freight Policy

Presentation to American Association of Port Authorities

Jeffrey N. ShaneUnder Secretary for PolicyU.S. Department of Transportation

March 21, 2006

2

Dramatic increases in projected freight demand

1,4371,4376,1656,165

(TEUs in thousands)

2020202020042004

HoustonHouston1,0101,010 2,1522,152

MiamiMiami

2,0432,043 3,3823,382

OaklandOakland

4,4784,478

15,83515,835

NY/NJNY/NJ

1,8091,8095,5665,566

VirginiaVirginia

1,8601,8606,6396,639

CharlestonCharleston

1,7981,7984,3964,396

TacomaTacoma

1,7761,776 2,5572,557

SeattleSeattle

1,6621,662

9,4209,420

SavannahSavannahLA/LBLA/LB

59,42059,420

13,10113,101

Volume of trade,2004 and 2020

Forecast figures based on a 10-year linear regression

3

Diversity of freight capacity interests(and influence)

Balancing capacity and demand will require efforts by both the public and private sectors

USDOT

Private-sector interests

• Highway builders• Private trucking industry• Private railroads• International shipping companies• Private terminal operators• Third-party logistics firms• Ports• Shippers• Organized labor• Private financial community

Other public-sector interests

• U.S. Department of Defense• State DOTs• Metropolitan planning organizations

(MPOs)• Impacted communities• Environmental interests

4

Communication is critical

• Communication within the transportation sector• Public partners need to understand supply chain logistics • Private partners need to understand the public sector role and

capabilities

• Communication beyond the transportation sector• Communicate both the problems and the benefits of freight

transportation to the public, elected officials, and other stakeholders

5

Partnering for our collective future

6

TRB freight industry roundtable

• Response to calls for Federal freight policy leadership

• Roundtable’s charge:• Improve USDOT’s understanding of supply chain logistics (SCL)• Improve industry’s understanding of Federal role and capabilities• Facilitate a dialogue between industry and government

• Roundtable has met since mid-2005

7

Draft framework for a national freight policy

Vision

Vision

Objective

2Objective

3Objective

4

ObjectivesObjective

1Objective

5Objective

6Objective

7

Strategies

Tactics

Responsibilities/ tasks

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

8

Draft framework for a national freight policy:Setting the vision

Vision:The United States freight transportation system will ensure the efficient, reliable, safe and secure movement of goods and support the nation’s economic growth while improving environmental quality.

Objective

2Objective

3Objective

4Objective

5Objective

6Objective

7Objective

1

Vision

Objectives

Strategies

Tactics

Responsibilities/ tasks

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

9

Draft framework for a national freight policy:Objectives, strategies, and tactics

Vision

Vision

Objective

2Objective

3Objective

4

ObjectivesObjective

1Objective

5Objective

6Objective

7

Strategies

Tactics

Responsibilities/ tasks

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

10

Freight policy objectives

1. Improve the operations of the existing freight transportation system

2. Add physical capacity to the freight transportation system in places where investment makes economic sense

3. Use pricing to better align all costs and benefits between users and owners of the freight system and to encourage deployment of productivity-enhancing technologies

4. Reduce or remove statutory, regulatory, & institutional barriers to improved freight transportation performance.

5. Proactively identify and address emerging transportation needs

6. Maximize the safety and security of the freight transportation system

7. Mitigate and better manage the environmental, health, and community impacts of freight transportation

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Objective 1: Improve the operations of the existing freight transportation system

Photo courtesy of Maher Terminals

12

Objective 2: Add physical capacity to the freight transportationsystem in places where investment makes economic sense

Photo courtesy of the Alameda Corridor Transportation Authority

13

Objective 3: Use pricing to better align freight system costs and benefits and encourage the deployment of new technologies

Photo courtesy of PierPass

14

Objective 4: Reduce/remove statutory, regulatory, & institutional barriers to improved freight transportation performance

Highway Trust Fund

Private Rail $$$ Port

$$$

Airport Trust Fund

Note: Images not drawn to scale.

15

Objective 5: Proactively identify and address emerging transportation needs

16

Objective 6: Maximize the safety and security of the freight transportation system

Photo courtesy of U.S. Customs and Border Protection

17

Objective 7: Mitigate and better manage the environmental, health, and community impacts of freight transportation

Photo courtesy of www.railindustry.com

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An illustrative example:The promotion of idle reduction opportunities

Vision

VisionObjective 7. Mitigate and better manage

environmental, health, and communityimpacts of freight transportation

Objective

2Objective

3Objective

4Objective

5Objective

6Objective

1

7.1.1. Promote idle reduction opportunities

Objectives

Tactic 7.1.2. Tactic 7.1.3. Tactic 7.1.4.

7.1. Pursue pollution reduction technologies

and operationsStrategy 7.2. Strategy 7.3. Strategy 7.4.

Strategies

Tactics

ResponsibilityTask Federal State Local Private

Raise awareness of new eligibility for idle reduction projects XImplement 400lb weight exemption for idle reduction equipment on commercial motor vehicles X

Implement locomotive idling reduction technologies and strategies XExplore terminal operation strategies to reduce idling X

Responsibilities/ tasks

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• Overarching themes• Framework for national, not Federal, freight policy• Importance of investment• Need for public-private collaboration• Living document

• Want to know more?• Draft framework available at www.dot.gov/freight• USDOT appreciates your feedback on the framework; please

email comments to [email protected]