Freight Issues and Policy Options

Memphis Freight Planning Conference

October 2, 2001Gary Maring, FHWA

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Objective

Freight Trends/IssuesWhat have we Learned from Outreach

Events and Freight Analysis effortsPolicy Development toward

Reauthorization

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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

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More vehicles- More delay

Vehicle travel up 72%

Road Miles up 1%

1980-1998

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Freight Volumes Growing- Projected doubling by 2020

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Many Public/Private Partners in an Intermodal Movement

Port RailroadRR1

Chicago Drayage

RR2 Chicago

RailroadDrayageConsignee Dest. City

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

Infrastructure &Traffic Mgmt

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National Highway System Intermodal Connectors - InfrastructureConstraints

NHS Connectors Poor physical condition Poor geometrics “orphan status” inadequate coordination

of investment strategies

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Public Sector(States, MPOs)

Private Sector(Shippers, Carriers)

Global

National

Regional

Local

Freight Transportation PerspectivesState and MPO focus is regional and local; private sector focus is

increasingly national and global

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

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DOT Freight Outreach Events

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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

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Future Options Toward Reauthorization

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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

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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

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Top Gateways for International Freight Exports and imports in tons

Exports

Imports

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International Gateways- Air and Water GatewayProblems

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

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International Gateways -NAFTA BorderProblems

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

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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

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Multistate/multijurisdictional Organizations I-95 Corridor Coalition

I-35 Trade Corridor

LATTS

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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

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Multi-Jurisdictional IssuesPossible 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

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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

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Statewide & Metropolitan FreightPossible 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

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ISTEA

Intermodalism

Innovative Finance

TEA-21

Funding Increases

TIFIA

State/local freight focus

???

Information/Technology

Infrastructure Funding

Institutional Development

International

Efficiency Equity Effectiveness

1991 - 97 1998 - 03 2004 - ??

Toward Surface Transportation Reauthorization- Freight elements?

FHWA Office of Freight Management and Operations, USDOT

http://www.ops.fhwa.dot.gov/freight

Gary Maring

Director

gary.maring@fhwa.dot.gov