# Presentation: GFPM5HAYEZBP2H6QLBTEZKQX3SLLWQP4

## Freight Issues and Policy OptionsMemphis Freight Planning ConferenceOctober 2, 2001Gary Maring, FHWA

**Notes:**
This presentation summarizes FHWA’s efforts in cooperation with the other DOT modes to identify emerging freight trends and issues and begin to develop policy responses.

## Objective

- Freight Trends/Issues
- What have we Learned from Outreach Events and Freight Analysis efforts
- Policy Development toward Reauthorization

## Emerging Freight Trends and Issues

- Markets/Logistics (demand)
- From national markets to global markets
- From a manufacturing to a service economy
- Moving to customer dictated just-in-time delivery system
- Carriers/Transportation Systems (supply)
- Increased DOD reliance on commercial freight system/National security implications for transportation
- From modal fragmentation to cross-modal coordination
- From system construction to system optimization
- Public Policy
- From economic deregulation to safety regulation
- From modal to multi-modal surface transportation policy
- Increased environmental accountability

**Notes:**
We have made a first cut at identifying trends and issues by commissioning 9 white papers:

The themes are grouped into three areas:
The first three themes deal with trends that are changing the demand for freight transportation – trends that are changing the market for freight transportation and logistics strategies: the shift from national to global markets; the transformation of the US economy from a manufacturing to a service economy; and the evolution of logistics from “push” systems to “pull” systems, and the reorganization of the military’s logistics system, which is leading to substantial integration of the military and commercial freight systems. 

The second set of themes deal with trends that are affecting the supply of freight transportation – trends that describe how carriers and government are responding to changing demand and reorganizing the freight transportation system:  moving from fragmented, standalone services to more integrated and coordinated freight services;  moving to optimize the operation of the freight system – including better fleet and vehicle management as well as better highway traffic management.

The third set of themes deals with public policy implications such as safety, multimodal policy, and environmental implications.  In the policy discussions, conflicting political goals may provide incentives or disincentives for improving freight productivity.  

## More vehicles- More delay

- Vehicle travel up 72%Road Miles up 1%
- 1980-1998

**Notes:**
From 1980 to 1998, vehicle travel increased 72 percent while miles of public roads increased only 1 percent.    And this is no longer a phenomenon of the big city.  The largest increase in travel time delay in the last 15 years (between 1982 and 1997) occurred in small urban areas, with 400 percent growth.

## Freight Volumes Growing- Projected doubling by 2020

## Many Public/Private Partners in an Intermodal Movement

*Many Public/Private Partners in an Intermodal Movement*

- Port

- Railroad

- RR1 Chicago

- Drayage

- RR2 Chicago

- Railroad

- Drayage

- Consignee

- Dest. City

- Port Authority

- Infrastructure Provider and manager- e.g.Traffic Mgmt.

- Infrastructure &
- Traffic Mgmt

## National Highway System Intermodal Connectors - Infrastructure	Constraints

**NHS Connectors**
- Poor physical condition
- Poor geometrics
- “orphan status”
- inadequate coordination of investment strategies

**Notes:**
In reviewing the broader themes, it is apparent that freight has unique characteristics when compared to passenger traffic.  But the improvement of freight productivity warrants examining the linkages between both the main system miles and freight facilities.

Connectors are one of those key components which can make a difference. FHWA was directed by Congress to examine the condition of the connectors to the National Highway System. The connector study was published in December 2000, and is available on the FHWA website. 

This shows one of our intermodal connectors in Chicago; Chicago has more than any other city and many are inadequate; with poor geometrics and pavement conditions, conflicts with residential communities, etc.  In the picture above, the poor road condition, and ability to expand roadway surface, and the limited turning radius, all capture the problems facing freight- a general lack of adequately examining freight operations.

The findings were:  
Poor physical condition-generally the state of the road itself, 
Poor Geometrics- limited turning radii, signally, etc., 
Orphan Status- these small sections are sometimes owned by different political jurisdictions, nor are considered a primary area of overall regional planning
Inadequate coordination of investment strategies: so coordination on improving this small sections are difficult when balanced against other projects, and finding the funding sources to make improvements is difficult.

## Freight Transportation Perspectives

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

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

***Global***

***National***

***Regional***

***Local***

**Freight Transportation Perspectives**
- State and MPO focus is regional and local; private sector focus is
- increasingly national and global

**Notes:**
I tend to come from Freight. Most compelling case for multi-state.
As the private sector has moved towards a more global view of business, we have moved to put decision making at the local level. Both ISTEA and TEA-21 promoted this trend for several reasons. However, many of our problems which affect us at a local level require solutions that cut across various political boundaries.

## Highway Flows of International Freight Moving into and From the Port of Charleston

**Notes:**
This slide shows the national significnace of a gateway like Charleston; shows economic importance of a gateway to larger region and nation.

## DOT Freight Outreach Events

## What we’re Hearing

- Solutions will involve new capacity coupled with improved operations
- Plan and operate the system as a system, not as individual modes/elements
- Improve intermodal connections to offer choice, connectivity, interoperability
- Federal leadership needed given multiple modes, jurisdictions, and private stakeholders; international considerations, and national security implications
- Improve State and MPO planning and programming process for freight
- Support multistate coalitions to deal with corridor and regional trade/transportation issues
- Enable public private financing and other innovative finance approaches

## Future Options Toward Reauthorization

## Policy Framework - the 4-I’s

- We need to strengthen **institutional** arrangements to coordinate decision making and implementation
- We must expand the use of **information/** technology to improve freight operations and security
- We must work closely with State and local partners, other agencies, and the private sector, to improve **infrastructure** decision making and finance needed improvements
- We must ensure that the US trade transport system supports **international** trade development

## Freight Transportation Problem Solving

- The geography of freight...three key problem areas
**International gateways**
**Multi-jurisdictional cooperation and finance **
**Statewide and metropolitan freight programs**
- Define the problem...identify institutional and financing options to address each area

## Top Gateways for International Freight Exports and imports in tons

*Top ****Gateways**** for International Freight **Exports and imports in tons*

**Notes:**
Highlights our top gateways, land and water ports of entry; this highlights facilities of national significance for trade.  The FAF seeks to provide information on both rail and truck crossings, but also the port landside access.  The bottlenecks that exist at ports or border crossings need to be addressed to improve economic competitiveness and offset local congestion problems.  For example, the Alemeda Corridor in Southern California, or the FAST program in Washington State are seeking to improve both freight mobility and urban traffic flows.

The Freight Office is engaged in many border activities, including simulating border facility construction, border and corridor programs, and encouraging technology deployment at border facilities to increase throughput.  Information on these items is available on our website.

## International Gateways- Air and Water GatewayProblems

- We have inefficient system connectivity & interoperability...connectors are orphans...there is a mismatch of freight benefits and costs...tough to get local jurisdictions to invest when benefits are perceived to flow elsewhere
- Because of these compounded problems, state and local governments are challenged to cope with the magnitude and complexity of financing international gateways

**Notes:**
Marin & Air
Current Institutions (local and state government) can not respond or identify issues and solutions.
Modes at gateways are not always linked effectively 
Access to key gateways must be improved
State and local governments cannot deal effectively with financing

## International Gateways -NAFTA BorderProblems 

- We have a fragmented institutional approach for addressing NAFTA borders
- There is an overall lack of funding to address problems
- We are constrained in combining and leveraging existing State, national & international sources of funding
- Cross border coordination is getting better, but has a long way to go

## International Gateways-possible approaches

- Create a National Freight Advisory Council – provide continuous advice on gateways of national/international significance
- Enable special authorities to deal with gateways and border financing...Alameda Corridor JPA, binational authorities
- Create and support interagency and bi-national border coordinating mechanisms...JWC
- Expand TEA-21 innovative finance options for freight...emphasize co-mingling of funds
- Modify TEA-21 borders/corridors program
- Create binational investment banks...expand NAFTA NADBANK eligibility to transportation

**Notes:**
The National Advisory Group would be made up of private and public sector.
Authorities refers to the creation of a group of stakeholders to plan, implement, and possibly operate certain freight transportation improvements.  The organization would have the ability to raise funds, cross jurisdictional boundaries to make decisions regarding planning and improvements.  Seed money from FHWA would be made available.
Interagency and bi-national agreements would allow a broader source of funds.  Federal agencies would co-mingle funds easily to achieve joint goals and objectives.  Creating the mechanisms needed for bi-national funding should enable the decision makers to move beyond the JWC which does not have the powers needed for bi-national program development and implementation – 1119 is ineffective in enabling the cross border improvements needed: Bring federal interagency and national decision making involved in process to enable states and local governments to focus on needs.

## Multistate/multijurisdictional Organizations

- I-95 Corridor Coalition
- I-35 Trade Corridor
- LATTS

**Notes:**
 The Coalition Connection was developed to be a
   primary source of easily accessible information for our members,
   friends, and those who may not even know us yet. We invite you to
   browse around and learn about the many exciting things that are
   happening related to the various modes of transportation used in the
   12 state Coalition region from Maine to Virginia. The agencies and
   organizations that represent these states are all working together to
   coordinate transportation in the region. This includes the use of
   advanced technology tools to better manage and operate the
   transportation system to save time, lives and money, and by doing
   that, improve the quality of life for our area. 

   We hope you find the Coalition Connection useful and informative,
   and will welcome your comments, questions, and suggestions (email
   to us). Remember, the transportation network in the I-95 corridor
   serves as an economic engine for the entire northeast region of the
   United States.  (From the Website)

The Federal Highway Administration (FHWA) and the Departments of Transportation in Texas, Oklahoma, Kansas, Missouri, Iowa and Minnesota have combined their efforts to conduct a study of Interstate Highway 35 (I-35). The purpose of the study is to assess the need for improved local, intrastate and interstate service on I-35 and clearly define a feasible improvement plan to address those needs. The study will recommend general strategies for potential improvements to
move people, goods and services through the corridor efficiently and safely well into the future.
Since 1994, when Congress passed the North American Free Trade Agreement (NAFTA), the
heartland of America has become an increasingly important thoroughfare for trade among the United
States, Mexico and Canada. I-35, which connects these three countries through the heartland, carries a greater percentage of trade among the NAFTA partners than any other U.S. Interstate Highway. Its
multimodal transportation hubs- where air, rail, river and truck cargo converge - ideally position I-35 to be a major route for what’s expected to be increasing levels of international trade activity.

While the level of international trade represents significant economic opportunity, it also brings additional challenges related to the impact on highway infrastructure, roadway maintenance, traffic congestion, traffic safety and air quality. Additionally, many sections of the existing highway are currently operating at less than desirable levels of service, and anticipated population growth within the corridor is expected to exacerbate the situation. It is unclear how each state along the corridor will cope with these issues, as well as more localized concerns like how long-distance freight traffic
will affect rush-hour travel. The I-35 Trade Corridor Study was initiated to address these concerns.
(From Website)

## Multi-State/Multi-Jurisdictional Challenges

- Freight does not recognize traditional jurisdictional boundaries...States, MPO, countries...current efforts are *ad hoc*
- Coalitions lack the requisite authority to sustain and fund improvements
- Coalitions are viewed by some as “just another layer of government”
- Building coalitions, providing funding, and rationalizing their influence with state and local jurisdictions is a challenge

## Multi-Jurisdictional IssuesPossible approaches

- Enable jurisdictions to go beyond current boundaries...but don’t mandate their creation
- Create Federal authority to enable multi-modal and multi-jurisdictional compacts...provide financial capacities to create “new money”
- Provide Federal grants for multistate planning, technical support, staffing,
- Enable Federal loans and credits for multijurisdictional capital improvements

## Statewide & Metropolitan Freight Planning and Programming

- Inadequate coordination among Federal DOT agencies
- Transportation planning process is not freight friendly...funding constrained... not all freight modes represented...lack of data and analytical capability... staffing issues... and limited coordination with the private sector
- Disconnect between transportation planning and economic development
- Difference in the time horizon and geographic perspective between transportation planning agencies and the private sector

## Statewide & Metropolitan FreightPossible approaches

- Ask State Governor to designate appropriate freight institution(s)... include economic development... prioritize freight improvements...address public-private risk sharing roles
- Reform the planning process...bring multimodal freight interests to the table...expand our ability to co-mingle private and public money
- Create a One DOT freight planning approach... ?intermodal planning fund
- Evaluate freight set asides & eligibility changes with existing programs

**Notes:**
Governor Directed:
Governor takes leadership role as freight goes beyond MPO and state jurisdictional boundaries.  Provide leadership for direction of freight activities to implementing agencies (State DOT , MPO’s etc.) include the private sector at all levels

## Toward Surface Transportation Reauthorization- Freight elements? 

- Efficiency

- Equity

- Effectiveness

- 1991  -  97

- 1998  -  03

- 2004  -  ??

*Toward Surface Transportation Reauthorization- Freight elements? *

**Notes:**
Surface transportation reauthorization development will occur in the 2002-2003 timeframe with new authorization required by Oct. 1, 2003 for FY 2004 apportionments to the States.  One of the themes suggested for reauthorization is ‘Effectiveness’. An Effective system is one that meets the challenges of freight movement associated with an integrated system that supports all U. S. and North American Trade/Transportation activities

In short, to make the best use of public and private assets to strengthen America’s global competitive capability.

Elements to support Effectiveness include three Is:

Intelligent Technology- investing in IT and ITS solutions to improve operation of the freight system
Infrastructure funding- considering intermodal options
Institutional change- changing planning process to better address freight; fostering multistate and binational coalitions to address trade/transportation issues

## FHWA Office of Freight Management and Operations, USDOT

**http://www.ops.fhwa.dot.gov/freight**
- Gary Maring
- Director
- gary.maring@fhwa.dot.gov