Freight Issues and Policy Options Memphis Freight Planning

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

Objective l Freight Trends/Issues l What have we Learned from Outreach Events and Freight Analysis efforts l Policy Development toward Reauthorization 2

Emerging Freight Trends and Issues l Markets/Logistics (demand) Ø Ø Ø l Carriers/Transportation Systems (supply) Ø Ø Ø l 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 Ø Ø Ø 3 From national markets to global markets From a manufacturing to a service economy Moving to customer dictated just-in-time delivery system From economic deregulation to safety regulation From modal to multi-modal surface transportation policy Increased environmental accountability

More vehicles- More delay l Vehicle travel up 72% Road Miles up 1% l 4 1980 -1998

Freight Volumes Growing. Projected doubling by 2020 5

Many Public/Private Partners in an Intermodal Movement Infrastructure Provider and managere. g. Traffic Mgmt. Port Authority Port Railroad RR 1 Chicago Drayage Infrastructure & Traffic Mgmt Consignee Drayage 6 RR 2 Chicago Dest. City Railroad

National Highway System Intermodal Connectors - Infrastructure Constraints l. NHS Ø Ø 7 Connectors Poor physical condition Poor geometrics “orphan status” inadequate coordination of investment strategies

Freight Transportation Perspectives State and MPO focus is regional and local; private sector focus is increasingly national and global Private Sector (Shippers, Carriers) Global National Regional Local Public Sector (States, MPOs) 8

Highway Flows of International Freight Moving into and From the Port of Charleston 9

DOT Freight Outreach Events 10

What we’re Hearing l l l l 11 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 12

Policy Framework - the 4 -I’s l We need to strengthen institutional arrangements to coordinate decision making and implementation l 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 l l 13

Freight Transportation Problem Solving Ø The geography of freight. . . three key problem areas ü International gateways ü Multi-jurisdictional cooperation and finance ü Statewide and metropolitan freight programs Ø Define the problem…identify institutional and financing options to address each area 14

Top Gateways for International Freight Exports and imports in tons Exports Imports 15

International Gateways- Air and Water Gateway Problems Ø Ø 16 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

International Gateways -NAFTA Border Problems Ø Ø 17 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 Gatewayspossible approaches Ø Ø Ø 18 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

Multistate/multijurisdictional Organizations l I-95 Corridor Coalition l I-35 Trade Corridor l LATTS 19

Multi-State/Multi-Jurisdictional Challenges Ø Ø 20 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 Ø Create Federal authority to enable multi-modal and multi-jurisdictional compacts…provide financial capacities to create “new money” Ø Provide Federal grants for multistate planning, technical support, staffing, Ø Enable Federal loans and credits for multijurisdictional capital improvements Ø 21

Statewide & Metropolitan Freight Planning and Programming Ø Ø 22 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 Ø Ø 23 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

Toward Surface Transportation Reauthorization- Freight elements? Efficiency Equity Effectiveness ISTEA 1991 - 97 TEA-21 1998 - 03 ? ? ? 2004 - ? ? Intermodalism Innovative Finance Funding Increases TIFIA State/local freight focus Information/Technology Infrastructure Funding Institutional Development International 24

FHWA Office of Freight Management and Operations, USDOT http: //www. ops. fhwa. dot. gov/freight Gary Maring Director gary. maring@fhwa. dot. gov