1. FREIGHT TRANSPORTATION POLICY STUDIES AT THE NATIONAL ACADEMIES Freight Capacity for the 21 st Century Federal Role in the Marine Transportation System Review of USACE Restructured Upper Miss. Study Joseph Morris, Transportation Research Board jmorris@nas.edu National Waterways Conference September 25, 2003

2. FREIGHT CAPACITY FOR THE 21ST CENTURY Transportation Research Board The National Academies November 2002

3. FREIGHT CAPACITY FOR THE 21ST CENTURY Charge: Identify factors influencing capacity; define govt. options to enhance operating efficiency & better target investment Funding: FHWA, states, Corps of Engineers, TRB Committee: state & local agencies, port, carrier, shipper, academics Information Sources: trends, case studies, interviews

4. National Academies Study Procedures Committee:responsible for report & recommendations National Academies:approve committee review report publish report Sponsors:funding information resources Interested Parties, Public:comments solicited open meetings www.nationalacademies.org

5. FREIGHT CAPACITY FOR THE 21 ST CENTURY SUMMARY OF RECOMMENDATIONS A Comprehensive Federal Freight Program: The Comprehensive Policy Agenda Principles to Guide Freight Programs Recommendations on Specific Programs Federal freight infrastructure programs Decisionmaking processes and planning Regulatory issues

6. RECOMMENDATIONS A Comprehensive Federal Freight Program Federal government should recognize the full range of its programs affecting freight and make decisions in all these consistent with the principles below. Adequacy of capacity will depend on government decisions in numerous existing programs : infrastructure investment operations finance regulation

7. RECOMMENDATIONS A Comprehensive Federal Freight Program (cont.) Principles to Guide Government Freight Programs Respecting four principles will maximize contribution of freight infrastructure to economic well-being: Make economic efficiency the primary goal of policy. Limit government involvement to essential roles. A government responsibility does not justify subsidy. Take advantage of the link between finance and performance. Specific policy recommendations illustrate applications of principles.

8. PROGRAM RECOMMENDATIONS Surface Transportation Act Reauthorization Freight Priorities in the Surface Transportation Program Any programs enacted to direct resources to freight-related projects should satisfy these criteria: Sustain the user-pays principle. Fund projects that fee payers recognize as having value. Let demand decide market shares of modes. Credit assistance should entail performance evaluation.

9. PROGRAM RECOMMENDATIONS Federal Freight Infrastructure Programs (cont.) Port Development Admin. & Congress should reexamine planning & funding rules to concentrate dollars on projects with greatest benefits. Should consider: deauthorization review regional planning, regionalization of investment greater reliance on local cost sharing & user fees strengthened independent review of evaluations Congress should sustain WRDA 86 cost-sharing reforms.

10. PROGRAM RECOMMENDATIONS Federal Freight Infrastructure Programs (cont.) Harbor Maintenance Pros/cons of funding options to replace HMT described: general revenue Harbor Services User Fee, with trust fund closely matching fees to costs, with local project funding other dedicated revenue stream (e.g. customs revenue) No recommendation, but Congress urged to recognize that site- specific fees for maintenance would have certain benefits.

11. PROGRAM RECOMMENDATIONS Federal Freight Infrastructure Programs (cont.) Operation and Management of the Inland Waterways Congress & Administration should direct Corps to improve lock efficiency through demand management. Congress should begin to rely on user fees to fund o&m. Efficiency does not require full cost recovery. Congress, Administration should consider: segment-specific user fee finance; regional authorities for waterway management

12. PROGRAM RECOMMENDATIONS Decision-Making Processes and Planning DOT Data and Analysis Programs Develop DOT capabilities for economic analysis and applications. Adapt DOT's policy guidance tools for state and local use. Evaluation Methods Create evaluation methods clearinghouse in DOT.

13. CURRENT TRB STUDY The Federal Role in the Marine Transportation System Sponsors: Coast Guard, NOAA, C. of E., Customs, Agriculture, Marad Issues: Appropriate federal functions, finance, coordination, evaluation Schedule: Report in fall 2003 Contact: Tom Menzies (Transportation Research Board) tmenzies@nas.edu

14. CURRENT WSTB STUDY Review of Upper Miss.-Ill. Waterway System Restructured Navigation Study Sponsor:Army Corps of Engineers Task:Review Corps' restructured Upper Miss. feasibility study of capacity expansion, considering 2001 NRC report. Schedule:Reports in fall 2003, early 2005 Next meeting St. Louis Dec. 15-16 Contact:Jeff Jacobs, Water Science & Technology Board jjacobs@nas.edu