1. Transportation and the Economy H. Scott Matthews March 2, 2004

2. Admin / Announcements  Midterm Due Thurs!  Thurs: HW #3 passed out (due 3/23)  Next week: Spring break

3. Recap of Recent Lecture(s)  Prob/stats discussion about models to envision, predict, portray infrastructure effects  Including deterioration models  How can we apply these?  Need data  What kind of data exists?

4. What is Management?  The act, manner, or practice of managing; handling, supervision, or control: management of a crisis; management of factory workers.  The person or persons who control or direct a business or other enterprise  Source: American Heritage Dictionary (00)

5. What is Infra. Mgmt.?  Administrative process of creating, planning, and maintaining our infrastructures  An integrated, inter-disciplinary process that ensures infrastructure performance over its life cycle  Life cycle is entire time from design through decommissioning 2 (familiar?) slides from the first lecture in the course: How did we claim to achieve/realize this goal?

6. Policy Issues  Need to recognize geographical or locational needs/differences  Need flexibly-designed standards at federal, state levels (e.g. snow in NE US)  Systems designed flexibly to accommodate technological change  Need to track/predict performance indicators

7. How to Manage Transportation Infrastructure?  Brainstorm ways to make decisions..  Manage life cycle costs based on ___?  Source: “Transportation and the Economy”, AASHTO, May 1998.

8. AASHTO Excerpt  Benchmarks how important highway investments are to economy (and well being)  Rates of return of investments  Important metrics - tell us everything?  Prioritize multi-modal transport programs?  i.e., rail vs. truck vs. air decisions  Using this info for toll/tax decision making  Difference in-house vs. outsourced transportation  3% vs. 5% of GDP from transportation  Focuses mainly on freight transport but personal/passenger also relevant

9. Where do you THINK data comes from for these facts?  Or, what would ideal data/modeling look like?

10. Background on Data Sources  Several major components  Department of Commerce  Shipments, locations, employees, etc.  Department of Transportation  Commodity Flow Survey (CFS)  Consumer Expenditure Survey  American Travel Survey (Households)

11. Commodity Flow Survey  Multimodal - Flow of goods & materials by mode  Samples 200,000 establishments randomly from a universe of about 800,000 engaged in mining, manufacturing, wholesale, etc.  Each selected establishment reported a sample of abut 25 outbound shipments for a one-week period in each of four calendar quarters in 1997.  Total sample of over 5 million shipments. For each shipment: zip code of origin and destination, commodity shipped, weight, value, and modes of transport  Data for all modes used per shipment

12. CFS Outputs  State-to-state level transport data  http://www.bts.gov/ntda/cfs/cfs97od.html  Approximate distances and routings  Estimates of freight movement within/to/ from/through per state (truck ton-miles)  See Map 1 in Handout  Similarly, see Map 2 for Passenger  How would this data change your thoughts on highway funds allocation?

13. Woodrow Wilson Bridge  I-95 over Potomac (near Wash, DC)  Used CFS data to estimate shipments that happened over the bridge  $58 billion in 1993 (1.3% of total)  30 million tons (0.5% of total)  About $1/pound (3x higher than avg)  Why? Mix of commodities different  Note some shipments missed (farm, construction, transportation, retail)..  CFS data didn’t give exact routes - had to guess

14. Technology Applications  This is not enough data to make management decisions - get more?  How?  Track/locate individual vehicles  Schedule/route vehicles  Fleet/logistics management application  Fleet managers can get value from these approaches (better, faster freight business)  Connected w/ Geographic Info Systems (GIS)

15. Security Perspective  Might want to be able to track/ verify shipments entering an area (e.g. US)  With all of this, what kinds of solutions could be implemented?

16. Other Issues  “Data Gaps”  NAFTA (North American Free Trade Agreement)  Effects of just-in-time inventory mgmt