CALIFORNIA FREIGHT ISSUES: Senior Forum Palm Springs, CA October 29-31, 2007

Michele Fell-CasaleSenior Transportation PlannerOffice of Goods MovementCalifornia Department of Transportation

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INTERSTATE 710–TYPICAL DAY

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California is facing a significant infrastructure shortfall. Interstate 710 is a dramatic example, but it

is not the only one. Today, I will be sharing information about

California’s approach as we address current and future impacts of dramatic increases in trade to and through the state.

It is about a focused planning, a State vision, innovative financial approaches, and collaborative partnerships. Senior planners are uniquely positioned to play a key role.

Introduction

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GMAP BackgroundGMAP BackgroundThe Action Plan is a response to: Severe congestion at the Ports of Los Angeles and

Long Beach that occurred in 2004 (and continued GROWTH!).

Public concern regardingcommunity, health and environmental impacts of goods movement.

Importance of goods movement to the State’s economy and global competitiveness.

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Goods Movement Action Plan

The Plan was developed in two phases:Phase I was the ‘what’ and the ‘why’: Trade trends, freight/maritime industry changes Inventory of state’s goods movement

infrastructure needs Growing evidence of the severity of goods

movement activities on the environment and public health

Phase II is the ‘who’, ‘when’ and ‘how’: Phase II outlined the strategies, policies and

potential projects to address the issues identified in Phase I.

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Goods Movement Action Plan Principles

Undertake simultaneous and continuous improvement in infrastructure and mitigation. Consider the 4 port-to-border corridors as an

integrated system San Diego, LA-Inland Empire, Central Valley, Bay Area Don’t forget the rest of the state!

Pursue excellence through technology, efficiency, and workforce development.Develop partnerships to advance goals.Promote trust, provide for meaningful public participation, address environmental justice concerns.

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Project Challenges/Meeting the Needs

How do we meet the need? September 2005 Phase I Report identified

180 projects or groups of projects, totaling $47.3 billion.

January 2007 Phase II Report reflected 24 of the original 180 as “TCIF Bond Funding Recommendations” (GMAP, Phase II Report, Table I-2, page I-22). Total project costs: $10.3 billion Total available TCIF: $2 billion

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Strategic Growth Plan

California’s Strategic Growth Plan (SGP) is intended to lay the foundation for long-term investments in the State’s critical infrastructure needs.It is a ‘down payment’ to jump start delivery of critical projects. More resources, including public investments and public/private joint ventures--will be needed over the long term.

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STRATEGIC GROWTH PLAN FUNDING

$2 billion Trade Infrastructure

$1 billion Emissions Reduction

$100 million Port Security Grants

$250 million Rail Grade Separations and Crossings

Transportation

California Transportation

Plan

GoCalifornia GMAP

Total$19.9 billion

Overall Bond Shares Goods Movement

Total$3.3 billion

Total$37.3 billion

Transportation

Education

Levee Repair/FloodControl

Housing

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Highway Safety, Traffic Reduction, Air Highway Safety, Traffic Reduction, Air Quality, andQuality, andPort Security Bond Act of 2006Port Security Bond Act of 2006

This act (Proposition 1B) provides $19.9 billion for transportation and related improvements, including:

Highway upgrades to reduce congestionState highway rehabilitation and operational improvementsTrade corridor infrastructure and emission reductionExpansion of intercity rail and public transitLocal street, road, and bridge repairPort anti-terrorism security improvements

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Trade Corridors Improvement Fund Trade Corridors Improvement Fund (TCIF)(TCIF)

$2 billion trade infrastructure program contained in Proposition 1B.For highway, freight rail, seaport, and airport and border access improvement projects.Key allocation principles include: Addressing the state’s most urgent needs in

partnership with both the public & private sector Balancing both the needs of large and small ports,

and providing reasonable geographic balance Concurrent mobility improvement and emissions

reductions Programming for deliverability, maximum benefit

and optimum performance

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The GMAP and the TCIFThe GMAP and the TCIF

The California Transportation Commission will consider the GMAP as it identifies and selects projects funded by the TCIF.

The California Marine and Intermodal Transportation System Advisory Council (CALMITSAC) port master plan, and Regional Transportation Plans and goods movement studies of the MPOs/RTPAs will also be considered.

Development of the TCIF Guidelines is targeted for a June or July completion. The latest target for investment decisions is March 2008.

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TCIF Legislative and Guideline Issues

Program/project priorities – system, mode, project, performance outcomesProject selection criteria – consideration of diverse sources, other programs coordinationGeographic balance Match eligibility – Other State fundsProject initiation (delivery) deadlineAuthority to fund/deliver rail freight projectsDue dates – Guidelines, program

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Partnerships—the key to effective planning

Regional and Local Governments – Metropolitan Planning Organizations (e.g., SCAG), County Transportation Commissions (e.g., LACMTA, SANBAG), local cities, counties and planning agencies. Private Industry – Carriers (shipping lines, railroads, trucking firms), terminal operators, shippers, receivers, interest groups.General public, including community based organizations and advocacy groups.

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Public-Private Partnerships

“P3” is an emerging and critical aspect of California’s innovative approach to funding needed infrastructure projects.There are a number of proposed joint venture projects that will utilize innovative partnerships approaches.Some projects will be primarily funded by the public sector, with private sector contributions.Some projects will be primarily funded by the private sector, with public sector contributions.

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Potential Goods Movement Public-Private Partnership Projects

Gerald Desmond Bridge (Port of Long Beach) Port - highway project

Otay Mesa East Port of Entry (near San Diego) International gateway

Truck toll lanes in the Los Angeles (SCAG) region Highway corridors

Tehachapi Double Track (near Bakersfield) Rail corridor improvement

Oakland Outer Harbor Terminal Port terminal

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Goods Movement Planning

Principle: Build the program of action based on overall policy, desired outcomes, system analysis, project evaluation and selection, and performance measurement.Principle: The planning approach must be flexible, that is a balancing of federal, state, regional and local objectives and individual needs. No one size fits all. Planning must also be done in a cooperative, inclusive and open fashion, involving all interested freight interests, public and private. It must be continuing, and it must be comprehensive.

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District Planning Program ElementsDevelop/enhance goods movement stakeholder partnerships and dialogues – infrastructure providers, users, and impacted communities.Develop goods movement system studies/analyses, including the identification of: Goods movement transportation network,

including major generators/receivers; Performance of that network (i.e., including

design, operational, safety, maintenance, access and capacity deficiencies and other issues);

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District Planning Program Elements

Factors/variables that are driving system performance changes (e.g, international trade growth, truck/rail industry changes, goods movement land-use development);

System deficiencies; and Improvement alternatives, including project

evaluation and selection.

Develop goods movement improvement project lists, priorities, and PIDS.

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District Planning Program Elements

Advocate study and project programming in OWPs, RTPs, RTIPs/FTIPs, the ITIP, and the SHOPP.Work with local planning agencies to consider goods movement requirements.Monitor land-use and system changes that may impact system performance.Expand goods movement data resources, information and expertise.

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Performance MeasurementPrinciple: To determine how the system is performing, to guide decision-makers and analysts in recommending appropriate action;Proposed freight performance measures: Travel time reliability (% on-time performance;

variance in travel times for interregional and intraregional trips);

Modal facilities inventory; Truck volumes by axle/percent of corridor

capacity; Total emissions and rates (by ton-mile) measured

at statewide and regional air basin levels; Percent increase in goods movement over

baseline.

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Future Directions

Greater recognition of goods movement planning as separate, distinct, planning subject and discipline.Significantly expanded focus on environmental, community and public health impacts and mitigation measures.Increased multimodal policy, planning and funding analysis and commitment.More creative funding partnerships and arrangements.

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Case StudiesThe Alameda Corridor 20-mile rail cargo corridor that runs from the San Pedro

Bay Ports north to downtown Los Angeles. The Corridor opened in April 2002, after 20 years of

planning and development that involved a broad spectrum of stakeholders.

The project cost $2.4 billion, funded through a unique blend of public and private sources.

Revenues from user fees paid by the shippers will be used to retire the debt.

Adjacent communities received additional benefits, including community beautification, job training and technical consulting for local import-export businesses.

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ALAMEDA CORRIDOR—LOS ANGELES

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Case Studies—Alameda Corridor East

Alameda Corridor East (ACE) Project This project will construct 131 grade

separations along the three east/west rail corridors radiating from downtown Los Angeles (Redondo Junction), to Barstow and Indio), operated by the UP and BNSF railroads.

Major stakeholders include 4 county transportation commissions, the Alameda East Construction Authority, Caltrans, and the Orange North-American Trade Rail Access Joint Powers Authority (OnTrac).

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Alameda Corridor East

Like the Alameda Corridor, the ACE project has taken many years of commitment by a wide variety of stakeholders.The total cost of the project is estimated to be approximately $4.3 billion.A variety of funding sources will be used: regional STIP funds, local sales taxes, contributions from the two Class I railroads (up to 10%) and SAFETEA LU earmarks. Proposition 1B funds are another potential funding source.The project is expected to be completed by 2020.

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Conclusions

California has major goods movement challenges. But, we are addressing them through a dynamic process that includes a State vision, focused planning, diverse joint ventures and other governmental investments, and collaborative partnerships.

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Office of Goods Movement-Your Partner in Planning

Richard NordahlMichele Fell-CasaleDan McKellTodd LaCasseJeff SpencerMarcus Evans

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QUESTIONS AND CONTACT INFORMATION

Richard Nordahl 916-653-0426Michele Fell-Casale 916-653-4287