1. Freight Transportation Regulation
Prof. Goodchild
CEE 587

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

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

4. Transportation Participants
Carriers: We have the equipment!

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

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

7. Transportation Participants
purchase fuel, transportation equipment, supplies

8. Transportation Participants
track shipments
purchase fuel, transportation equipment, supplies

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

10. Transportation Participants
Creates demand for transportation by purchasing products

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

12. 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

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

14. History of Transportation Regulation
– 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)

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

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

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

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

19. Rail Track Mileage and Number of Class I Rail Carriers, United States, 1830-2005
Source: BTS and Association of American Railroads.
Copyright © , 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

20. Average Speed of Class I Railroads, 1945-2004
Source: Association of American Railroads (2005) “Analysis of Class I Railroads.”
Copyright © , 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

21. Performance of Class I Railroads, 1964-2005
Source: Railroad Facts, AAR
Copyright © , 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