Americas Freight Challenge

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Americas Freight Challenge

• Industrial College of the Armed Forces
• February 13, 2009
• R. Leo Penne
• Program Director
• Intermodal and Industry Activities
• AASHTO

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Freight Double by 2035Yes, Double!!
Net Tons (in Billions)
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Truck
Rail
30
Water
25
Other
Air
20
15
10
5
0
2005
2007
2015
2017
2019
2023
2029
2009
2011
2013
2021
2025
2027
2031
2033
2035
Year
Source Global Insight 2004 TRANSEARCH data and
economic forecasts.
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More and More and More of the Same
Percent
95
100
Up from 92 in 2005
90
80
Up from 61 in 2005
Up from 77 in 2005
80
65
70
60
Down from 25 in 2005
Down from 5 in 2005
Down from 14 in 2005
50
40
24
30
Down from 11 in 2005
Down from 7 in 2005
20
Same
13
8
6
10
4
1
0
Truck
Truck
Truck
Rail
Rail
Rail
Water
Water
Water
Tons
Value
Ton Miles
Source Global Insight 2004 TRANSEARCH data and
economic forecasts.
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Truck Traffic 1998
10
NHS Peak Period Congestion2035
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Trucks 2005 and 2035By 2035, every truck on the
road today will have one more truck behind it
Source Cambridge Systematics based on Global
Insight 2004 TRANSEARCH data and economic
forecasts.
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Major Truck Bottlenecks2004
Source Cambridge Systematics, Inc, An Initial
Assessment of Freight Bottlenecks on Highways,
prepared for Federal Highway Administration,
October 2005.
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Waterborne Freight Network

• Coastal System
• Great Lakes and
• St. Lawrence System
• Inland System

Source U.S. Army Corps of Engineers
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U.S. Ports by Tonnage
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Port Demand and Capacity
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U. S. Container Ports
TEU totals combined for the Ports of Los
Angeles/Long Beach and Seattle/Tacoma.
Source Cambridge Systematics based on American
Association of Port Authorities data.
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Landside Links
Rail
Water
Highway
Source Cambridge Systematics
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50 More Railcars 2035
Source Cambridge Systematics based on Global
Insight 2004 TRANSEARCH data and economic
forecasts.
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Major Rail Choke Points 2007
Source Cambridge Systematics
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STRAHNET
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STRACNET
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Strategic Ports
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Freight Demand

• Consumption
• Population growth
• Production
• Expanding durable and non-durable goods
  manufacturing
• Trade
• Import and export growth
• Supply Chain Practices
• Changing logistics strategies

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Up The Trade Escalator
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Container Growth
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The More Trade GrowsThe More Things Change, e.g.

• Mega Distribution Centers
• Canadian and Mexican Ports
• Panama Canal Expansion
• Suez Canal
• Ethanol

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Toys Supply Chain
Source Boston Logistics Group and Cambridge
Systematics, Inc
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Transportation Costs RisingEveryone Pays
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States and FreightOrganizing, Planning
Collaborating, Investing

• CREATE
• FAST
• MAROPS
• Connect Oregon
• Florida Strategic Intermodal System
• California Goods Movement Action Plan
• Heartland Corridor (Crescent Corridor)
• I-70 Truck Highway

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Policy Puzzles

• Private Profit/Public Benefit
• Local Costs/National Benefits
• Global Economy/State Lines
• Shared Infrastructure
• Consumer Economy/Producer Economy
• Efficiency/Security
• Freight /Climate Change-Environment
• Who Pays?/Who Decides?

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• RECOMMENDATION 1
• National Freight Transportation System
• Establish a framework for freight policy,
  planning, operations, and investment by better
  defining the nations freight transportation
  system, the demand for freight transportation,
  and the associated infrastructure requirements.
• RECOMMENDATION 2
• Freight Corridor Organizations
• Authorize funding to support state-driven
  multistate, multimodal corridor planning and
  investment organizations
• RECOMMENDATION 3
• State Freight Transportation Program
• Authorize a state-administered freight
  transportation program within the Highway Trust
  Fund funded at 18 billion for six years,
  apportioned annually to states

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RECOMMENDATION 4
National Freight Corridors Investment
Fund Authorize investment fund for freight
related projects on national freight corridors to
total 42 billion over six years (revenues from
new sources-- half apportioned to states, half
allocated to fund national projects from a fund
administered by US DOT. RECOMMENDATION 5 New
Sources of Revenue From resources outside the
Highway Trust Fund (HTF), authorize new sources
of revenue for investment in freight
transportation infrastructure
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• RECOMMENDATION 6
• Existing Programs
• Reauthorize Freight Transportation Programs
  Authorized in SAFETEA-LU.
• RECOMMENDATION 7
• Other AASHTO Recommendations
• Support positions on freight transportation
  taken by other policy teams, standing committees,
  and the AASHTO Board of Directors

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NEXT STEPS Continue dialogue with freight
industry stakeholders to assess impacts of the
newly proposed revenue sources. FREIGHT
STAKEHOLDERS COALITION
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• www.freight.transportation.org