Freight Transportation Regulation Prof. Goodchild CEE 587

Transportation Participants I need something shipped at the lowest possible cost!

Transportation Participants I need something shipped at the lowest possible cost! I need something delivered at the lowest possible cost!

Transportation Participants Carriers: We have the equipment!

Transportation Participants Carriers – we can find a shipper! Shippers – we can find a carrier!

Transportation Participants the transportation system is vital for the country’s economic health

Transportation Participants purchase fuel, transportation equipment, supplies

Transportation Participants track shipments purchase fuel, transportation equipment, supplies

Transportation Participants track shipments purchase fuel, transportation equipment, supplies match products needing to be shipped with available capacity

Transportation Participants Creates demand for transportation by purchasing products

Types of Transportation Regulation Economic Investments in transportation infrastructure (e.g., highways, airports, ports) Control of routes, pricing, schedules

Types of Transportation Regulation Economic Investments in transportation infrastructure (e.g., highways, airports, ports) Control of routes, pricing, schedules Social/Safety Protect the public, the environment Make sure equipment operates safely, cleanly Safe transportation of hazardous materials (HAZMAT) Regulating hours worked

History of Transportation Regulation Pre-1920 – establish initial government control Act to Regulate Commerce (1887) Interstate Commerce Commission (ICC)

History of Transportation Regulation 1920-1940 – regulatory formalization, extension to other transportation modes Motor Carrier Act (1935) Civil Aeronautics Act (1938) Civil Aeronautics Board (1940) Federal Aviation Administration (FAA) National Aeronautics & Space Administration (1951)

History of Transportation Regulation 1940-1970 Regulation of water transportation by ICC (1940) Railroad Revitalization and Regulatory Reform Act of 1976 AMTRAK CONRAIL

History of Transportation Regulation 1970-1980 – prelude to deregulation Shift from regulation/control to fostering competition Department of Transportation (DOT) 1961 Airline Deregulation Act 1978

History of Transportation Regulation 1980-2000 – deregulation Motor Carrier Act 1980 Staggers (Rail) Act 1980 Interstate Commerce Commission (ICC) abolished 1996 Ocean Shipping & Reform Act 1998

History of Transportation Regulation 2000-Present – focus on technology, safety, and security Patriot Act Jones Act

Rail Track Mileage and Number of Class I Rail Carriers, United States, 1830-2005 Source: BTS and Association of American Railroads. Copyright © 1998-2007, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. 19

Average Speed of Class I Railroads, 1945-2004 Source: Association of American Railroads (2005) “Analysis of Class I Railroads.” Copyright © 1998-2007, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. 20

Performance of Class I Railroads, 1964-2005 Source: Railroad Facts, AAR Copyright © 1998-2007, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use. 21