# Presentation: 727834

## Freight and Transportation Planning Workshop- Executive Summary

*Presented by the*
*Federal Highway Administration *
*Date*
*Location*

**Notes:**
Good morning and thanks for coming to the freight and transportation planning workshop.  
Introduce team.

As you just saw in the video, the movement of freight not only affects our transportation system, it also has significant effects on our day-to-day lives.  An efficient freight transportation system allows businesses to move raw materials to their factories and finished goods to and from markets all over the world.  Because businesses can move products quickly and seamlessly, we as consumers have access to a wide variety of products at relatively low prices....the orange juice you had for breakfast this morning, the gas you used to drive here today, even the clothes on your back spent some time on the freight transportation system.   

The freight transportation system is increasingly important in economic development efforts, as well...just as cities, towns, and industries clustered around railroad stations 150 years ago, cities and towns are now attempting to lure businesses and attract jobs with their easy access to highway and air transportation facilities.  

Of course, freight movements have negative impacts, too...trucks contribute to congestion on our nation’s highways; trains, airplanes, and other vehicles contribute to noise and air pollution in our cities and towns; and freight transportation vehicles, because of their weight, can cause tremendous wear and tear on our transportation system, increasing pavement and bridge maintenance costs.

As you can imagine, freight transportation issues can be complex and involve a lot of different stakeholders- all of whom have different perspectives on how they view the freight transportation system.  The challenge faced by states and metropolitan transportation planners is how to best incorporate these issues and perspectives into existing transportation planning programs and in the development of a safe and efficient transportation system for both people and goods.  

To help provide a better understanding of freight transportation, its stakeholders, and its issues, we’ve developed a day-long freight transportation and planning workshop.  This presentation summarizes the major themes of the workshop.

[CLICK]

## Workshop Outcomes

- Better understanding of the modes and stakeholders involved in freight transportation
- Better understanding of the trends affecting freight transportation and its impacts on your transportation system and communities
- Better understanding of the common issues that prevent freight from being fully incorporated in the planning process
- Resource packet to help guide freight planning efforts
- Data and funding sources
- Examples of successful programs and initiatives
- Links to other organizations

**Notes:**
We’ve designed the workshop to provide kind of a “freight 101.” The workshop itself has several specific outcomes...we hope to provide workshop participants with:

A better understanding of the modes and stakeholders involved in freight transportation.  That sounds simple, but having a firm grasp on the modes involved in freight transportation, their strengths and weaknesses, and how they effect your area’s transportation system is an important start to a successful freight planning program. So is understanding your stakeholders, as freight stakeholders are typically much more varied than passenger stakeholders and have different concerns.
A better understanding of the trends affecting freight movements and how those trends may impact freight movements in your area and how you plan for them.
We also want to talk about the transportation planning process and give you a sense of why freight isn’t more fully incorporated into that process 
And finally, participants will receive a resource packet that will help guide freight planning program by providing examples of successful programs and initiatives from other areas, a list of freight data and funding sources, links to other freight planning organizations and information, and even a glossary of commonly-used freight terms.  This packet may be the most important thing that participants take away from this session, and we hope it will be used as a “ready reference” to your answer freight questions or at least point you in the right direction.

Today’s presentation will provide an overview of each of these themes: freight modes and stakeholders; freight trends; and the challenges associated with incorporating freight into the transportation planning process.

## How Does Freight Transportation Differ from Passenger Transportation?

*How Does Freight Transportation Differ from Passenger Transportation?*

**Passenger Movements**
- Movements often begin and end within the same jurisdiction
- Trip generation and attractionswell understood and predicted
- Plenty of publiclyavailable data
- Issues better understood by decision-makers and general public
- Less infrastructure impact
- Less intermodal in nature

**Freight Movements**
- Complex chain of interregional or international trips
- Sensitive to market forces; difficult to forecast demand
- Few sources of publiclyavailable data
- Private sector industry not always well understood
- Heavier vehicles have greater infrastructure impacts
- More intermodal

**Notes:**
Does anyone have any ideas about how freight movements differ from passenger movements?

GROUP EXERCISE

Bullet 1: Most passenger trips begin and end within the same jurisdiction.  Each day we make billions of commute trips, shopping trips, recreation trips, and school trips, each typically lasting an hour or less.  In contrast, many freight shipments consist of a complex chain of interregional or international trips by several modes.  Each trip can last days or weeks, and often has an origin or destination outside a single DOT’s or MPO’s jurisdiction.

Bullet 2: Passenger movements have been studied extensively and there is plenty of publicly-available data on trip making patterns.  Freight movements, on the other hand, are more difficult to predict and forecast due to their sensitivity to market forces.  

Bullet 3:  There are few sources of publicly-available data for freight movements, mostly due to the fact that so much of the freight transportation system is controlled by the private sector.  The private sector freight industry can be hesitant to share details of its business practices to public agencies because of fears that their competitors will use it against them.

Bullet 4: Lack of information combined with limited background in freight issues makes freight much more difficult to understand and study than passenger transportation.  As I mentioned, many people are familiar with passenger transportation because they have first-hand experience with the passenger transportation system.  Freight movements can be invisible to many people and may be taken for granted.

Bullet 5: Freight vehicles are much heavier than passenger vehicles and have more significant infrastructure impacts, particularly on roadways.

Bullet 6: Freight movements are more intermodal...in fact, freight movements handled by air, water, and rail are nearly all intermodal in nature, as trucks are used for final delivery.

## Who are Freight Stakeholders?

**Public Sector**
- Federal, state, local transportation planning agencies
- Economic development and trade organizations
- Federal, state, local law enforcement
**Private Sector**
- Shippers and receivers of freight (businesses)
- Freight transportation service and logistics providers
- Owners and operators of freight facilities
- Neighborhoods and communities affected by freight transportation
- The general public

**Notes:**
Just as freight movements can involve many modes, it involves many different kinds of stakeholders, as well.

Public sector freight stakeholders include transportation planning agencies such as the Federal Highway Administration, state DOTs, metropolitan planning organizations, councils of governments, and regional planning agencies.  These agencies are typically concerned with the transportation impacts of freight movements.

They also include economic development and trade organizations, such as chambers of commerce, who are interested in freight’s impact on business attraction and commerce.

Federal, state, and local law enforcement are playing a more important role in freight transportation, as well, ensuring the safety and security of cargoes, vehicles, and drivers. 

There are a wide variety of private sector freight stakeholders, too.  These include:

Businesses and industries that ship and receive freight.  Businesses and industry are not only concerned about the condition and performance of the local transportation system, but because they often ship their goods to national and international markets, are also concerned with the performance of the system outside their local area.

Freight transportation service providers, including carriers, such as trucking companies, airlines, and railroads; and logistics providers, who are often brokers between shippers and carriers.

Owners and operators of freight facilities, who can be private (like the railroads) or quasi-public (like airport and port authorities)

Neighborhoods, communities, and the general public are also concerned with freight movements....particularly those neighborhoods and communities located adjacent to freight facilities.

## Stakeholder PerspectivesState, MPO, Local Agency Focus is Regional and Local; Private Sector Focus is Increasingly National and Global

**Public Sector****(States, MPOs, local agencies)**

**Private Sector****(Shippers, Carriers)**

***Global***

***National***

***Regional***

***Local***

*Stakeholder Perspectives**State, MPO, Local Agency Focus is Regional and Local; Private Sector Focus is Increasingly National and Global*

**Notes:**
The agencies involved in freight planning often have different perspectives...the perspective of the public sector is often local or regional, as their influence over the transportation system often stops at the city, county, or state boundary.  The private sector perspective, meanwhile, is more national and global.  As you saw in some of the earlier modules, local businesses often serve national and global markets and have far-flung supply chains.  The private sector, then, is typically more concerned with the condition and performance of the transportation system on a more “macro” scale.

## Importance of Freight PlanningTransportation Investments Lead to Increased Productivity

**Florida**
- Freight transportation investments generate a 35 percent annual rate of return in terms of GSP growth
**Maryland**
- Highway improvements responsible for 10 percent of state’s productivity growth 1982-1996
**Wisconsin**
- Every $1 of highway investment leads to $2 of benefits to passengers; $1 of benefits to freight movements

*Sources:  Florida DOT Macroeconomics Study, 2002; Transportation Improvements Grow Wisconsin’s Economy, 2003.*

**Notes:**
Now that you know the ways in which freight movements differ from passenger movements and the various stakeholders involved in freight transportation, the question is why should you care about freight and why should you consider it in the transportation planning process?  Well, freight has impacts on several important areas, including an area’s economic vitality. 

Investments in the freight transportation system have also proven to lead to increased productivity for businesses and decreased costs for customers.  In Florida, for example, freight transportation investments have been shown to generate a 35 percent annual rate of return in terms of the state’s GSP.

Maryland’s highway improvements were shown to be responsible for 10 percent of the state’s productivity growth through the 80s and early 90s.

And every dollar invested in Wisconsin’s highway system led to 3 dollars worth of benefits to passengers and freight movements. 

## Importance of Freight PlanningEfficient Freight Transportation System Attracts New Businesses

- 88 percent of all new and expanded manufacturing facilities in Wisconsin chose to locate within 5 miles of key highways

**Notes:**
An efficient freight transportation system can also improve a state or region’s ability to attract and retain businesses.  In Wisconsin, for instance, 88 percent of new and expanded manufacturing facilities chose to locate within 5 miles of the state’s highway system.  A strong freight transportation system, as much as land cost, labor availability, and tax policy, is becoming critical to the economic success of a region.

## Modes of Freight Transportation

**Notes:**
All modes are involved in freight transportation... we go into more detail on each of these modes in the full workshop.  As you can see, with the exception of pipelines, freight movements occur on the same infrastructure as passenger movements...trucks travel on the highway; the majority of air freight is handled by passenger aircraft; freight and passenger rail often share trackage; and deepwater seaports often cater to both freight traffic and cruise passengers.  

## Modes of Freight TransportationFreight Service Spectrum

*Modes of Freight Transportation**Freight Service Spectrum*

**Fastest, ****most reliable, ****most visible**
**Lowest weight, highest value, ****most time-sensitive cargo**

**Slower, ****less reliable, ****less visible**
**Highest weight, lowest value, ****least time-sensitive cargo**

**Fast, ****reliable, ****visible**
**Range of weight and value**

-         $1 - $10,000/lb.                             3-10¢/lb.                                            1/2-1¢/lb.

**Higher . . . . . . . . . . . . . . . . . . . . . .** **Service Cost Continuum. . . . . . . . . . . . . . . . . . . . . .Lower**

**Air ****	****Truck ****	**** Rail ****	****           Water ****	****                      Pipeline**

**Notes:**
Each mode of freight transportation offers different levels of service....and different levels of pricing.  On one end of the spectrum, you have air cargo, which provides fast, reliable service and handles low weight/high-value, time sensitive cargo.  As you move down the spectrum, the speed of service decreases, the commodities handled become heavier and less valuable, but the price per pound shipment decreases, as well.  Water and pipeline shipments provide slower, less reliable, less visible shipments and handle high-weight/low-value cargo...but they do so at a very low price.  

Though the speed, reliability, and prices may vary, each mode is a critical piece of the overall structure of the freight industry.  

## Freight Transportation System

*Freight Transportation System*

**Notes:**
The nation’s freight transportation system is both highly developed and highly intermodal.  This system includes:

4 million miles of roadways which act as the backbone to the transportation system, providing the last leg of door-to-door service and providing connections between the other modes.  The centerpiece of this system is the national highway system, which was designated in 1996.  The NHS has 162,000 miles of road considered important to the nation's economy, defense, and mobility.  The system, which was designated by Federal Highway in concert with state and local partners, includes interstates, principal arterials, the STRAHNET, and intermodal connectors, which we’ll discuss later on.
An extensive freight rail network, as well, consisting of approximately 173,000 miles of interstate trackage.  Unlike the highway system, the rail network is privately owned and operated by the railroads themselves, though in many cases passenger trains also operate on the system.
Literally hundreds of airports, though only a handful of them handle significant amounts of air cargo.  In fact the top 25 airports in the US account for nearly 75 percent of all freight and mail traffic.  A large portion of air cargo is transported in the bellies of passenger aircraft, so, with the exception of FedEx and UPS, whose operations are based in Memphis and Louisville, most air freight is concentrated at large passenger hubs, including LAX, O’Hare, Miami, and JFK.
Over 25,000 miles of inland, intracoastal, and coastal waterways in the US, over 12,000 miles of which are capable of handling freight traffic.  The centerpiece of this system is the Fuel-Taxed Waterway system.  Commercial users of this system are taxed with the revenue targeted toward infrastructure improvements along the waterway.  There is an increased emphasis in some areas to make better use of this system to help relieve congested highways and rail lines
Over 1.5 million miles of pipelines, a sometimes-forgotten mode of freight transportation.  As most of these pipeline are natural gas and petro-chemical pipelines, they are concentrated in the Gulf Coast and Alaska.

## Freight Movements14 Billion Tons Valued at $11 Trillion in 1998

*Freight Movements**14 Billion Tons Valued at $11 Trillion in 1998*

**Notes:**
The freight flows on this infrastructure are significant.  In 1998, over 14 billion tons valued at over $11 trillion was handled by the system.  As you can see, the vast majority of these flows occurred by truck, which handled 78 percent of the tonnage; 60 percent of the ton-miles; and 88 percent of the value of these shipments.

## Freight TrendsAnticipated Growth in Freight Traffic

**Notes:**
While there are specific issues and challenges that affect each freight transportation mode, there are also trends that affect the entire system.  The first of these is the anticipated growth in overall freight movements.

Freight traffic on this infrastructure is expected to grow significantly over the next several decades...
domestic trade (shown in orange) is expected to increase by about two-thirds by 2020 while international trade (shown in blue) is expected to double by that time.

Note: Major ports anticipate that intermodal container volumes will double or triple over the next decade
Note: Major air-cargo hubs such as LAX anticipate a four-fold increase in air cargo volume. 

## Freight Growth ImpactsHighway Congestion Impacts, 1998

*Source: CSI based on FHWA Freight Analysis Framework Project and HPMS data*

**Notes:**
The major impact of this freight growth is congestion...

Congestion won’t just be limited to urban areas with major international freight gateways.  This slide shows existing levels of service, those highway links in yellow, orange, or red experiencing congested conditions. [CLICK]

## Freight Growth ImpactsHighway Congestion Impacts, 2020

*Source: CSI based on FHWA Freight Analysis Framework Project and HPMS data*

*Freight Growth Impacts**Highway Congestion Impacts, 2020*

**Notes:**
And this slide shows the anticipated level of service in 2020.  Notice that even inter-city links, such as between Kansas City and St. Louis; between Tampa and Orlando; between LA and San Francisco; and between San Antonio and Dallas are expected to be operating at level of service “F” by 2020.

## Freight Growth ImpactsOther Impacts

*Freight Growth Impacts**Other Impacts*

- Transportation system impacts
- Intermodal access and capacity further strained
- Congestion reduces mobility for people and goods
- Economic impacts
- Congestion and delays lead to increasing costs for shippers and carriers
- Community impacts
- Increased truck idling and grade crossing delays lead to worsening air pollution

**Notes:**
Growth in freight traffic will affect both urban and rural areas....the transportation system in urban areas, particularly those areas with major freight gateways, such as ports, airports, or border crossings, will be even further strained than they are today.  As you saw in the previous slide, inter-city links and rural areas will also be affected, limiting the mobility of both people and goods.

  This will have both economic and social impacts in the form of increased costs for freight shippers and carriers and detrimental environmental effects caused by increased truck and train idling.

## Freight TrendsIncreased Emphasis on Security

- Post-September 11 cargo inspections more frequent and intensive, particularly for international shipments
- Increasing reliance on pre-clearance of known shippers and closer scrutiny of chains of custody
- Increasing use of ITS and other technologies to verify cargo, vehicle, driver

**Notes:**
The next overarching trend has to do with striking the balance between freight transportation efficiency and security- a major emphasis in both the public and private sectors following the events of September 11th, 2001.

Cargo inspections since September 11th have become more frequent and intensive- particularly for international shipments arriving through our ports and border crossings.  To help mitigate the effects of these inspections, there has been an increased emphasis on the “known shipper” program, whereby cargo is only accepted from reliable sources, and for shippers and carriers to more closely scrutinize their chains of custody to prevent sabotage.  The use of Intelligent Transportation Systems, such as container scanning devices, biometrics, electronic sealing devices, and tracking systems for freight security is also increasing.  

## Freight TrendsMany Agencies Involved in Freight Security 

**Transportation Agencies **
- Transportation Security Administration
- Federal Motor Carrier Safety Administration
- State DOTs
- State Registries of Motor Vehicles

**Law Enforcement Agencies **
- U.S. Customs
- INS
- Border Patrol
- DEA
- FBI
- U.S. Marshals
- USDA
- ATF
- Coast Guard

**Notes:**
Note: class participation here?  Who are the agencies involved in freight security?  This slide presents an alternative format- which is better?

Many states and metropolitan planning organizations (MPOs) are interested in better defining their roles and responsibilities in improving freight security, but defining roles and responsibilities can be complex because many local, state, and federal agencies have significant missions in ensuring the safety and security of the nation’s freight shipments.  This slide lists just some of the agencies involved in freight security.  

Further confusing matters is the fact that several of the agencies involved in freight transportation security were reassigned to the newly-created Department of Homeland Security in March and it is not yet clear how the freight security efforts of this new department and of state departments of transportation will be coordinated .

## Security Impacts

- Increased delay at border crossings and other gateways and along major trade corridors
- Uncertainty as to appropriate state and MPO role in addressing freight security
- Greater degree of coordination with law enforcement agencies
- Limited funding available for freight security efforts

**Notes:**
There are several freight transportation impacts related to the increased emphasis on freight security.  First, border crossings- which weren’t operating at peak efficiency even before Sept 11th- are suffering from increased delays, driving up costs to shippers and carriers.  Many states and metropolitan areas are uncertain as to what role they play in addressing freight security.  There is a greater need for coordination between law enforcement agencies and transportation agencies.  And, finally, though some security-related grants have been made available, there are limited funding programs for states and MPOs, particularly those “non-gateway” states and MPOs, to address freight security needs.

## Freight TrendsEnvironmental Accountability

*Freight Trends**Environmental Accountability*

- Construction and expansion of freight facilities more politically and socially challenging
- Intermodal access often occurs through residential neighborhoods and town centers

**Notes:**
Environmental accountability is another trend affecting freight movements across all modes.

As a result of the rapid growth in freight movements, many ports and terminals are running out of space. Though port and terminal expansion is a logical solution to manage the expected increases in freight volumes, these expansions can be politically, socially, and environmentally challenging.  Issues such as dredge spoil disposal and the ecological sensitivity of the marine environment can make port expansion difficult.

Environmental justice concerns can also prevent ports and terminals from expanding their operations, as access improvements may generate additional truck or rail trips in air quality non-attainment regions and the neighborhoods adjacent to freight facilities and those that are most seriously impacted by expanding port traffic are very often those housing the poorest citizens in the community.  Many ports and terminals are under pressure to resolve their access problems without creating additional community impacts. 

## Freight TrendsEnvironmental Accountability

- Trucks account for over 50 percent of all NOx and Particulate Matter (PM-10) emissions
- Truck accident rates do not differ significantly from passenger car accidents, but have greater impacts
- Nearly 70 percent of transportation-related noise caused by trucktraffic

**Notes:**
There is an increasing emphasis on mitigating the quality of life effects of freight movements, as well.  Diesel engines produce a very large percentage of the nitrous oxides and particulate matter emissions, though new EPA rules are designed to reduce these emissions significantly by 2030.  
Particulate matter is primarily associated with the aggravation of respiratory conditions, such as asthma.  Nitrous oxides may lead to changes in airway responsiveness and lung function in individuals with pre-existing respiratory illnesses and increases in respiratory illnesses in children (5-12 years old). Long-term exposures to NO2 may lead to increased susceptibility to respiratory infection and may cause alterations in the lung. Nitrogen oxides also contribute to the formation of acid rain. Nitrogen oxides contribute to a wide range of environmental effects, including potential changes in the composition and competition of some species of vegetation in wetland and terrestrial systems, visibility impairment, acidification of freshwater bodies, and increases in levels of toxins harmful to fish and other aquatic life

Trucks in particular can have important safety impacts, as well, especially in rural areas.  Though the overall accident rate for trucks is not significantly different than for passenger cars, truck accidents have greater impacts, particularly when they involve passenger cars.  As you can see,  86 percent of heavy truck fatalities involve non-truck occupants.  Well over half of motor vehicle fatalities occur in rural areas- and half of those at night.

Note: Particulate matter (PM) is the general term used for a mixture of solid particles and liquid droplets found in the air.  They originate from many different stationary and mobile sources as well as from natural sources, including fuel combustion from motor vehicles, power generation, and industrial facilities, as well as from residential fireplaces and wood stoves. Fine particles are most closely associated with such health effects as increased hospital admissions and emergency room visits for heart and lung disease, increased respiratory symptoms and disease, decreased lung function, and even premature death. Sensitive groups that appear to be at greatest risk to such effects include the elderly, individuals with cardiopulmonary disease, such as asthma, and children. In addition to health problems, PM is the major cause of reduced visibility in many parts of the United States. Airborne particles also can cause damage to paints and building materials 

Nitrogen dioxide (NO2) is a reddish brown, highly reactive gas that is formed in the ambient air through the oxidation of nitric oxide (NO). Nitrogen oxides (NOx), the term used to describe the sum of NO, NO2 and other oxides of nitrogen, play a major role in the formation of ozone. The major sources of man-made NOx emissions are high-temperature combustion processes, such as those occurring in automobiles and power plants. Home heaters and gas stoves also produce substantial amounts of NO2 in indoor settings. 

## Environmental Accountability Impacts

- Increased sensitivity at all levels of government to the environmental and community impacts of freight movements
- Greater emphasis on improving the efficiency of freight operations rather than expanding freight infrastructure

**Notes:**
The increased emphasis on environmental accountability will have two important impacts:

First, government at all levels in addition to the general public, will have a greater sensitivity to the impact of freight movements on the environment and on the livability of their communities.

In addition, as expanding freight infrastructure- particularly in and around sensitive marine environments- is becoming increasingly difficult, there will be a greater emphasis on using freight operational strategies- such as ITS- to improve the efficiency of the existing transportation infrastructure.

## Freight in the Planning ProcessGeneral Transportation Planning Process

*Freight in the Planning Process**General Transportation Planning Process*

**Notes:**
One of the main outcomes of the freight planning workshop is to discuss the ways in which freight can be better incorporated into the transportation planning process.

This slide provides a very simplified description of the transportation planning process used by public sector transportation planning agencies.  A more detailed description of this process is provided in your resource packets.  The elements that make up the transportation planning process are located in the big “bubble” in the middle of the diagram.  The inputs to this process, in the form of staff resources, inter and intra-agency coordination, public and private input, data and analytical tools, and funding, are located around the outside.  There are obstacles associated with each of these inputs that can prevent freight from being fully incorporated into the planning process.  

## Freight in the Planning ProcessChallenges

- TEA-21 provides little specific guidance as to how or to what extent states and MPOs should consider freight interests
- Many state DOTs and MPOs only address freight generally in their long-range plans
- Freight planning at some states and MPOs is reactive rather than proactive
- Organization and Staff Resources
- Many state DOTs are organized modally, leading to fragmented freight planning
- Limited freight education and training available for technical staff  and transportation decision-makers

*Freight in the Planning Process**Challenges*

**Notes:**
The first is freight goals and objectives....

While most states and MPOs have clearly defined goals for their passenger transportation systems, goals relating to freight transportation and planning are not as common and TEA-21 provides little specific guidance to states and MPOs as to what extent they should be considering freight when developing transportation plans.

In many cases, freight is addressed generally in long range plans, but freight transportation planning is typically a subset of the overall highway planning process and very few freight-specific policies are produced.  In many cases, freight planning is seen as a way to mitigate the negative effects of freight movements (such as trucks parking in neighborhoods) rather than attempts to improve freight efficiency or enhance economic development efforts.  

There are several organizational challenges that can hinder effective freight planning at states and MPOs.  Many state DOTs are organized modally, which hinders cross-modal communication and leads to fragmented freight planning.  It is not uncommon to find significant variation with respect to freight improvements among the long-range plans and programs developed by state DOT statewide planning offices and state DOT modal offices. 

State DOT and MPO staff are an important resource in identifying potential improvement projects and moving those projects through the transportation planning process.  While many state DOT and MPO transportation planners hold advanced degrees in transportation or planning, few have formal training in freight planning.  Rather, they gained their expertise through TRB programs, continuing-professional education courses, and on-the-job training.  While state DOT and MPO technical staff may take advantage of the freight training courses, decision-makers do not normally receive training on freight transportation issues and often do not fully appreciate the complexity of freight movements and their associated local impacts.

## Freight in the Planning ProcessChallenges

- Intermodal freight improvement projects often involve several federal, state, and local agencies
- Freight movements often affect multiple MPOs, states, and countries and can require coordinated planning efforts
- Private Sector Participation
- Vastly different planning horizons
- Public sector – “generational”
- Private sector – “quarterly”
- Many potential private sector participants do not have the staff time or resources to fully commit to the process

*Freight in the Planning Process**Challenges*

**Notes:**
Intermodal freight improvement projects are often complex projects involving several agencies.  Interlocking requirements for coordination, permit approvals, hearings, etc., can significantly expand the time required to plan and implement projects, often driving up the cost of a project significantly. Without effective interagency coordination, freight improvements in such complex areas often stumble and die.

Freight improvement projects can also cross jurisdictional boundaries requiring effective communication among different DOTs, MPOs, local agencies, and even federal governments.

Further complicating freight planning efforts is that fact that some state DOTs and MPOs have very little influence over non-highway modes.  Many MPOs, especially those in smaller areas, deal strictly with highway improvement projects, leaving the responsibility for non-highway and multimodal planning to other agencies or the private sector.

The private sector freight community can provide the background, training, and expertise necessary to address freight in statewide and metropolitan planning processes.  The public and private sector planning processes have vastly different timelines, however.  

Long range planning in the public sector is on a “generational” time frame, often consisting of 10- and 20-year capital improvement plans.  Long range planning in the private sector is typically much shorter- the private sector often thinks in terms of a 12- to 18-month operating horizon.  This mismatch in planning horizons and the fact that the private sector perceives the transportation planning process as overly cumbersome and bureaucratic, makes it difficult to keep the private sector engaged in the public sector planning process.  

Further hampering private sector participation is the considerable time investment required to become full participants in the public planning process.  Many potential private-sector participants do not have the staff time or resources to fully commit themselves to the process, preventing them from realizing the potential long-term benefits of participation. 

Input from the general public is equally as hard to obtain, as many constituents do not make the link between an efficient freight transportation system and economic competitiveness and quality of life.  Input from the general public typically comes from people directly (and negatively) affected by freight movements- those who live near freight facilities or on heavily-traveled truck routes, or those that will be directly impacted by port or terminal expansions.

## Freight in the Planning ProcessChallenges

- Publicly available data often lack industry detail due to privacy concerns
- Privately-maintained commodity flow data sets often costly and require extensive analysis
- Funding
- Federal funding programs for multimodal and intermodal projects exist, but can be limited
- Some states and MPOs find it is difficult to justify spending money on projects that are perceived to benefit the private sector freight community

*Freight in the Planning Process**Challenges*

**Notes:**
Effective freight planning depends on the availability of good public and private sector data on freight flows.  The lack of affordable, disaggregate, commodity flow data is a major concern for states and MPOs.  While the U.S. DOT Bureau of Transportation Statistics conducts and publishes the national Commodity Flow Survey (CFS), the data are often aggregated and reported for large areas limiting the usefulness of the data for state and metropolitan planning, especially for modeling and forecasting truck trips.  
To address this problem, several states and MPOs have supplemented the information provided by CFS by purchasing detailed commodity flow data from private sources.  By using a combination of data sets, states and MPOs are better able to understand county- and local-level commodity flows, pinpoint congestion and capacity problems, and identify needed freight improvements.  However, the purchase of these privately maintained data sets is often costly, and some states and MPOs lack the funding and staffing resources to utilize them to their full potential. 

Several states and MPOs have developed or are developing freight modeling techniques to estimate future commodity and vehicle flows; however, freight transportation modeling capabilities in many states and MPOs are still limited.  Unlike passenger movements, the underlying factors driving freight shipment patterns and mode choice vary considerably across different industries and commodities.  These factors are less readily understood than the factors that affect passenger travel.  As a result, many states and MPOs find it difficult to adapt traditional automobile and transit modeling techniques to predict freight movements.  Truck freight movements are often modeled as passenger car movements (with trucks counted as equivalent to two or three cars depending on the mix of truck types and sizes) rather than modeled as a separate mode.  This approach is adequate for estimating overall volumes and travel time effects, but the impacts and benefits of transportation improvements cannot be traced back to specific types of trucks and the industries they serve. 
Even when freight projects are identified in the planning process, many states and MPOs find it difficult to program these projects, as there are limited resources for freight-specific improvement projects.  While highway-related freight improvement projects are usually eligible for funding under federal-aid and state highway programs, multimodal and intermodal projects must often be shoehorned into air-quality mitigation programs (like CMAQ) or safety programs (like highway-rail grade-crossing separation programs).  

While some rail projects have received public funding, many rail improvements are not eligible.  There is no rail equivalent to the federal aid highway program.

And, despite the link to economic development and jobs, some states and MPOs find it is difficult to justify spending money on non-highway projects, projects that are perceived to inordinately benefit the private sector freight community, or projects whose costs are local, but whose benefits accrue regionally or nationally. 

## Freight in the Planning ProcessChallenges

- Freight champions sometimes do not exist
- Freight projects compete with passenger projects for funding
- Freight specific evaluation criteria often do not exist
- Freight planning can occur outside the transportation planning process
- Earmarks
- Economic development activities
- Projects on privately owned and operated infrastructure

*Freight in the Planning Process**Challenges*

**Notes:**
There are several of these planning and programmatic challenges.  First, high-level champions for freight planning efforts sometimes do not exist, making it difficult for organizations to fully pursue freight planning.  

Second, most freight improvement projects are evaluated for inclusion in TIPs and STIPs using the same set of criteria that are used for evaluating non-freight improvement projects.  These criteria typically consider how a proposed project will improve highway volume-to-capacity ratios, highway level-of-service ratings, and safety.  Some freight improvement projects receive decent scores for these criteria, but most fail because, for example, a freight connector improvement project typically serves fewer total vehicles than a competing suburban intersection improvement.  Missing are evaluation criteria that reflect the other economic and business development benefits of freight improvement projects such as how they may improve shipping-time reliability or the extent to which they may attract or retain businesses and jobs in an area.  States and MPOs are beginning to consider such criteria during their project evaluation processes, but most do not do so today, with the result that many freight projects never appear on a TIP or are ranked very low.

Thirdly, freight planning, particularly for privately-funded projects, but also for economic development activities, can often occur outside the normal statewide or metropolitan planning process.  These kinds of projects provide little opportunity for states and MPOs to conduct the types of plans and studies, such as travel demand modeling and freight flow studies, that would normally occur during the project preparation phase.

## Freight in the Planning ProcessFactors of Success for Incorporating Freight

- Program or project champion
- High level champions can often raise awareness of importance of freight
- Education and outreach efforts
- To decision-makers and general public who may not realize the importance of integrating freight movements into the transportation planning process
- Some DOT and MPO professional staff lack knowledge and expertise in freight issues
- Intra- and inter-agency coordination
- Most freight projects involve several agencies – both within and outside of transportation

**Notes:**
Despite these challenges, there are many examples of states and MPOs with successful freight planning programs.  During the full workshop, we discuss many of these examples and identify ways in which the efforts of these states and metropolitan areas can be replicated in other areas.  

There are several factors that lead to a successful freight planning program.  The first is a freight program or project champion, who can raise the awareness and importance of freight within all levels of the organization.  Having an advocate for freight planning is a key element of success.

Education and outreach, particularly to decision-makers and others, is also important.   When legislators and other transportation decision makers are educated about freight and its transportation system, economic, and social impacts, many become quite enthusiastic and supportive of freight planning efforts.  In many cases, legislators are keenly interested in freight plans and studies, as they can be used  to support economic development efforts; business leaders are interested in freight, as well, because it directly reflects their needs.  

Intra and Inter-agency coordination is another key to success, as many freight improvement projects involve several agencies- both within and outside the transportation planning agency.  Getting these agencies to work together efficiently is important.

## Freight in the Planning ProcessFactors of Success for Incorporating Freight

- Freight data
- Good freight planning begins with good freight data
- Data can come from many different public and private sources
- Private sector involvement
- Private sector can often provide the background and expertise necessary to conduct effective freight planning
- Innovative project development and funding methods
- Freight improvement projects often do not fit neatly within existing funding categories or project development processes

**Notes:**
As we just discussed, effective freight planning depends on the availability of good public and private sector data on freight flows.  There are many examples of states and MPOs that use a variety of public and privately-available data to support their freight planning programs.

As they can provide the background and expertise necessary to conduct effective freight planning, the consistent involvement of the private sector involvement sector is important, though it can be a challenge to keep the private sector freight industry energized throughout the planning process. 

Finally, states and MPOs must think innovatively, particularly when it comes to programming freight improvement projects.  

## Questions and Discussion

**Notes:**
Any questions?