Moving Freight Moving Freight ForwardForward

A National PerspectiveA National Perspective

Crystal JonesCrystal Jones

USDOTUSDOT

Federal Highway Federal Highway AdministrationAdministration

April 2007April 2007

Topical OutlineTopical Outline

• ContextContext

• National Initiatives (US DOT)National Initiatives (US DOT)

–National Freight Policy FrameworkNational Freight Policy Framework

–Congestion InitiativeCongestion Initiative

• National Initiatives (FHWA)National Initiatives (FHWA)

The ContextThe Context

• 25% of the U.S. GDP is related to international trade and is predicted 25% of the U.S. GDP is related to international trade and is predicted to grow to 35% in the next 20 years.to grow to 35% in the next 20 years.– US/Canada/Mexico = largest world trading relationshipUS/Canada/Mexico = largest world trading relationship– $2.2 Billion in trade/day $2.2 Billion in trade/day – 2 Million people legally cross/day2 Million people legally cross/day

• From 1980 to 2002, truck travel on US highways grew by 90% while From 1980 to 2002, truck travel on US highways grew by 90% while lane-miles of public roads grew by only 5%.lane-miles of public roads grew by only 5%.

• Between 1998 and 2020, the percentage of urban interstates Between 1998 and 2020, the percentage of urban interstates carrying 10,000 or more trucks will increase from 27% to 69%.carrying 10,000 or more trucks will increase from 27% to 69%.

• U.S. rail traffic is at or near segment capacity in intermodal corridors U.S. rail traffic is at or near segment capacity in intermodal corridors and new tracks are not being laid down. and new tracks are not being laid down.

• Potential investment in capacity expansion and operational Potential investment in capacity expansion and operational improvement (including ITS applications) will have to compete with improvement (including ITS applications) will have to compete with existing infrastructure maintenance and improvementexisting infrastructure maintenance and improvement

• Congestion impedes timely and reliable freight movements and Congestion impedes timely and reliable freight movements and threatens business productivity.threatens business productivity.

Vision

Objective2

Objective3

Objective4

Objective5

Objective6

Objective7

Objective1

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

ResponsibilityTask Federal State Local Private

Framework for a national freight Framework for a national freight policypolicy

Vision

Objectives

Strategies

Tactics

Activities

Freight policy objectivesFreight policy objectives1.1. Improve the operationsImprove the operations of the existing freight transportation system of the existing freight transportation system

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

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

4.4. Reduce or remove statutory, regulatory, & institutional barriersReduce or remove statutory, regulatory, & institutional barriers to to improved freight transportation performanceimproved freight transportation performance

5.5. Proactively Proactively identify and addressidentify and address emerging transportation needsemerging transportation needs

6.6. Maximize Maximize thethe safety and security safety and security of the freight transportation system of the freight transportation system

7.7. MitigateMitigate and better manage the and better manage the environmental, health, energy, and environmental, health, energy, and community impactscommunity impacts of freight transportation of freight transportation

Overarching themesOverarching themes

• Framework for Framework for nationalnational, not, notFederalFederal, freight policy, freight policy

• Importance of investmentImportance of investment

• Value of public-private collaborationValue of public-private collaboration

• Living documentLiving document

• Need for accountabilityNeed for accountability

““Mobility is one of our country’s greatest freedoms, but congestion Mobility is one of our country’s greatest freedoms, but congestion across all of our transportation modes continues to limit predictable, across all of our transportation modes continues to limit predictable,

reliable movement of people and goods, and poses a serious threat to reliable movement of people and goods, and poses a serious threat to continued economic growth. Congestion no longer affects only roads continued economic growth. Congestion no longer affects only roads

in larger urban areas, but is spreading across America.”in larger urban areas, but is spreading across America.”

- Secretary Mary Peters, October 2006Secretary Mary Peters, October 2006

““Congestion is not a fact of life. We need a new approach and we need Congestion is not a fact of life. We need a new approach and we need it now.”it now.”

- Former Secretary Norman Mineta, May 2006- Former Secretary Norman Mineta, May 2006

National Strategy to Reduce Congestion on America’s Transportation Network

• Cost of highway congestion in 2003Cost of highway congestion in 2003– 3.7B hours of travel delay, and 2.3B 3.7B hours of travel delay, and 2.3B

gallons of wasted fuel…gallons of wasted fuel…– ……for a total cost of $63Bfor a total cost of $63B– Total costs would be much higher if Total costs would be much higher if

unreliability, inventory and environmental unreliability, inventory and environmental costs (among others) were included costs (among others) were included

• Cost of aviation congestionCost of aviation congestion– Annual commercial airline passenger Annual commercial airline passenger

delays amount to $9.4B in U.S. delay costs delays amount to $9.4B in U.S. delay costs

The Big PictureThe Big Picture

National retailer keeps $2.5B merchandise on-hand, but adds 10 days of “buffer stock” to its inventory due to rail delays. Additional stock costs $2.7M annually.

In 2000, congestion at the Ambassador Bridge between Detroit, Michigan and Windsor, cost motor carriers between $150M and $200M.

In 2005, congestion at the Otay Mesa and Tecate crossings, along the California-Mexico border, cost the U.S. economy $3.7B in output and almost 40,000 jobs.

Atlanta area distributor of pet food with an 11-truck fleet finds it difficult for one truck to make more than 12 daily deliveries; in 1984, one truck made as many as 20 deliveries each day.

Cost of Congestion to U.S. Cost of Congestion to U.S. BusinessesBusinesses

Cost of Congestion in Wasted Time and Cost of Congestion in Wasted Time and Fuel in the Largest Urban AreasFuel in the Largest Urban Areas

Metro AreaMetro AreaTotal CostTotal Cost

($ in ($ in Millions)Millions)

Cost PerCost Per

Peak Peak TravelerTraveler

Los Angeles-Long Beach-Santa Ana CALos Angeles-Long Beach-Santa Ana CA $10,686$10,686 $1,598$1,598

San Francisco-Oakland CASan Francisco-Oakland CA $2,604$2,604 $1,224$1,224

Washington DC-VA-MDWashington DC-VA-MD $2,465$2,465 $1,169$1,169

Atlanta GAAtlanta GA $1,754$1,754 $1,127$1,127

Houston TXHouston TX $2,283$2,283 $1,061$1,061

Dallas-Fort Worth-Arlington TXDallas-Fort Worth-Arlington TX $2,545$2,545 $1,012$1,012

Chicago IL-INChicago IL-IN $4,274$4,274 $976$976

Detroit MIDetroit MI $2,019$2,019 $955$955

Miami FLMiami FL $2,485$2,485 $869$869

Boston MA-NH-RIBoston MA-NH-RI $1,692$1,692 $853$853

Phoenix AZPhoenix AZ $1,295$1,295 $831$831

New York-Newark NY-NJ-CTNew York-Newark NY-NJ-CT $6,780$6,780 $824$824

Philadelphia PA-NJ-DE-MDPhiladelphia PA-NJ-DE-MD $1,885$1,885 $641$641

Why Now?Why Now?

• Surging public discontent with congestion and “pork” barrel spendingSurging public discontent with congestion and “pork” barrel spending

• New advances in technology that can greatly improve system New advances in technology that can greatly improve system management and pricingmanagement and pricing

• Successful congestion reducing demonstrations in major cities Successful congestion reducing demonstrations in major cities around the worldaround the world

• Strong private sector investment interest in U.S. infrastructure Strong private sector investment interest in U.S. infrastructure

• Growing consensus that traditional financing mechanisms for Growing consensus that traditional financing mechanisms for highway and aviation infrastructure are unsustainablehighway and aviation infrastructure are unsustainable

• Economic benefits of trucking, rail and aviation deregulation Economic benefits of trucking, rail and aviation deregulation (estimated at $60B/year) increasingly threatened(estimated at $60B/year) increasingly threatened

A Six Point PlanA Six Point Plan

• Execute “Urban Partnership Agreements” with 1-5 major metro areasExecute “Urban Partnership Agreements” with 1-5 major metro areas

• Encourage States to consider enacting public private partnership lawsEncourage States to consider enacting public private partnership laws

• Develop new interstate highway and rail capacity through a “Corridors of the Future” Develop new interstate highway and rail capacity through a “Corridors of the Future” competitioncompetition

• Reduce bottlenecks at major freight gateways, including Southern CaliforniaReduce bottlenecks at major freight gateways, including Southern California

• Find and implement solutions to border congestionFind and implement solutions to border congestion

• Accelerate major airport capacity projects, reform airport pricing policies and Accelerate major airport capacity projects, reform airport pricing policies and overhaul the air traffic control systemoverhaul the air traffic control system

FHWA - Office of Freight Management and FHWA - Office of Freight Management and Operations – ObjectivesOperations – Objectives

• Understand the magnitude and geography of freight Understand the magnitude and geography of freight moving on the nation’s transportation system, including moving on the nation’s transportation system, including international freight international freight

• Develop strategies, analytical tools, institutional Develop strategies, analytical tools, institutional arrangements, and professional capacities for all levels of arrangements, and professional capacities for all levels of government to address freight movementgovernment to address freight movement

• Understand and promote the economic benefits of freight Understand and promote the economic benefits of freight transportationtransportation

• Encourage innovative freight technology & operationsEncourage innovative freight technology & operations• Enforce commercial vehicle size and weight requirementsEnforce commercial vehicle size and weight requirements

Freight Analysis Framework (FAF)Freight Analysis Framework (FAF)

• Commodity flows by origin and destination for truck, Commodity flows by origin and destination for truck, rail, and water in 1998, 2010, 2020rail, and water in 1998, 2010, 2020

• Planned improvements: update base year to 2002 Planned improvements: update base year to 2002 Economic Census, improve coverage, identify Economic Census, improve coverage, identify hazmat flows, time of day estimates, provisional hazmat flows, time of day estimates, provisional estimates of current year freight activity, etc.estimates of current year freight activity, etc.

• Applications: policy-sensitive mode split model, links Applications: policy-sensitive mode split model, links to policy models, scenario forecaststo policy models, scenario forecasts

• Assure continuation of data sources and explore new Assure continuation of data sources and explore new data sourcesdata sources

Freight Analysis Framework (FAF2)Freight Analysis Framework (FAF2)

• Origin-Destination Database: 106 CFS regions plus Origin-Destination Database: 106 CFS regions plus international gatewaysinternational gateways– 2002 benchmark2002 benchmark– Forecasts for 2010, 2015, …, 2035Forecasts for 2010, 2015, …, 2035– Annual provisional estimatesAnnual provisional estimates

• Network Flow DatabaseNetwork Flow Database– 2002 benchmark, forecasts, annual provisional 2002 benchmark, forecasts, annual provisional

estimatesestimates• Maintain and improve source data and look for new sourcesMaintain and improve source data and look for new sources

– CFS, ITDSCFS, ITDS• Development of local knowledge encouraged in lieu of Development of local knowledge encouraged in lieu of

dependence on default values from national surveys and dependence on default values from national surveys and overextended models. overextended models.

Freight Performance Freight Performance MeasurementMeasurement

Strategic Objective - Global ConnectivityStrategic Objective - Global Connectivity““Facilitate a more efficient domestic and global transportation system Facilitate a more efficient domestic and global transportation system

that enables economic growth and development”that enables economic growth and development”

Desired OutcomesDesired Outcomes• Reduce transportation-related barriers to tradedReduce transportation-related barriers to traded• More efficient movement of cargo throughout the supply chainMore efficient movement of cargo throughout the supply chain

GoalsGoals• To reduce travel time in key highway freight corridors. To reduce travel time in key highway freight corridors. • To reduce delays of commercial vehicles processed atTo reduce delays of commercial vehicles processed at• National Highway System border crossingsNational Highway System border crossings

Outcome MeasuresOutcome Measures • Travel Time and Reliability on Freight Significant HighwaysTravel Time and Reliability on Freight Significant Highways• Border Crossing Time Border Crossing Time

Freight Performance Freight Performance MeasurementMeasurement

• What?What?• Methodology use Trucks as ProbesMethodology use Trucks as Probes

• Automatic Vehicle Location(AVL)/Satellite Automatic Vehicle Location(AVL)/Satellite TechnologyTechnology

• GPS Coordinates (Date and Time Stamped)GPS Coordinates (Date and Time Stamped)• Unique Carrier IDUnique Carrier ID

• How?How?• Partnership with American Transportation Research Partnership with American Transportation Research

Institute, a Satellite Technology Vendor and CarriersInstitute, a Satellite Technology Vendor and Carriers• Data Cleansing techniques allows collection of Data Cleansing techniques allows collection of

collection data from all/most of the vendor’s carrier collection data from all/most of the vendor’s carrier subscribers (~250,000 vehicles)subscribers (~250,000 vehicles)

• Where?Where?

• 25 Major US Interstates25 Major US Interstates• Land Border CrossingsLand Border Crossings

• 5 US/Canada Crossings5 US/Canada Crossings• US/Mexico under developmentUS/Mexico under development

• Application of ResultsApplication of Results

• Provides a quantifiable basis to engage public and Provides a quantifiable basis to engage public and private sector and investigate and explore causes of private sector and investigate and explore causes of delaydelay

• One of several analytical tools that helps get us to One of several analytical tools that helps get us to solutions – target resources where greatest needs solutions – target resources where greatest needs existsexists

Freight Performance MeasurementFreight Performance Measurement

Current Effort - 25 CorridorsCurrent Effort - 25 Corridors

FPM Border ComponentFPM Border Component

• Data Collection Began 7/01/05 for 5 CrossingsData Collection Began 7/01/05 for 5 Crossings• Blaine (Pacific Highway): Blaine, WABlaine (Pacific Highway): Blaine, WA• Pembina: Pembina, NDPembina: Pembina, ND• Ambassador Bridge: Detroit, MIAmbassador Bridge: Detroit, MI• Peace Bridge: Buffalo, NYPeace Bridge: Buffalo, NY• Champlain: Champlain, NYChamplain: Champlain, NY

• Effort looks at crossings as well as transportation network that supports Effort looks at crossings as well as transportation network that supports the crossingsthe crossings

Freight Professional Freight Professional DevelopmentDevelopment• Section 5204: Training and EducationSection 5204: Training and Education

– (h) Freight Planning and Capacity Building Program(h) Freight Planning and Capacity Building Program• Courses, seminars & workshopsCourses, seminars & workshops

– Congestion Mitigation Strategies for Urban Goods Movement (seminar)Congestion Mitigation Strategies for Urban Goods Movement (seminar)– Freight and the Environment (course)Freight and the Environment (course)– Uses of Multimodal Freight Forecasts in Transportation Planning Uses of Multimodal Freight Forecasts in Transportation Planning

(course)(course)– Engaging the Private Sector in Transp. Planning (workshop)Engaging the Private Sector in Transp. Planning (workshop)

• Peer-to-peer exchangePeer-to-peer exchange• Talking FreightTalking Freight• Public sector activity in academic curriculumPublic sector activity in academic curriculum

SAFETEA-LU Freight ProvisionsSAFETEA-LU Freight Provisions• Section 1301: Projects of National and Section 1301: Projects of National and

Regional SignificanceRegional Significance

• Section 1302: National Corridor Section 1302: National Corridor Infrastructure Improvement ProgramInfrastructure Improvement Program

• Section 1306: Freight Intermodal Section 1306: Freight Intermodal Distribution Pilot Grant ProgramDistribution Pilot Grant Program

• Section 5209: National Cooperative Section 5209: National Cooperative Freight Transportation Research Freight Transportation Research ProgramProgram

Key Take-AwaysKey Take-Aways

• The national economy is reliant on a functional transportation The national economy is reliant on a functional transportation network.network.

• Today's intermodal freight system is not equipped to handle Today's intermodal freight system is not equipped to handle predicted growth predicted growth

• System deficiencies increase operating costs and congestion, System deficiencies increase operating costs and congestion, and decrease safety, economic competitiveness, and and decrease safety, economic competitiveness, and environmental quality environmental quality

• Keeping freight moving requires coordination and collaboration Keeping freight moving requires coordination and collaboration among varied private and public stakeholders at the among varied private and public stakeholders at the international - national – regional – state – local levelsinternational - national – regional – state – local levels

Additional Information at:Additional Information at:

National Policy FrameworkNational Policy Frameworkhttp://www.dot.gov/freight/http://www.dot.gov/freight/

Congestion InitiativeCongestion Initiativehttp://www.fightgridlocknow.gov/http://www.fightgridlocknow.gov/

FHWA Freight ProgramsFHWA Freight Programshttp://www.ops.fhwa.dot.gov/freighthttp://www.ops.fhwa.dot.gov/freight

QuestionsQuestions