1. Planning for Urban Freight Movement Talking Freight Series Susie Lahsene Port of Portland

2. Trends Affecting Urban Freight Globalization Transportation deregulation Business Practices Logistics/Supply chain mgmt Warehouse/distribution development Industry/carrier mergers Urban development Markets Economic base Urban land use Transport planning/investment

3. Globalization Markets around the globe-products moving longer distances with more frequency Freight mobility pressure added to urban environment- the site of ports and transport connections to reach other markets

4. Federal Transportation Deregulation Aviation Deregulation of 1978 Motor Carrier Act of 1980 Staggers Rail Act of 1980 Ocean Shipping Act of 1984 Ocean Shipping Reform Act of 1998

5. U.S. Trade Increasing Source: U.S. Department of Commerce and U.S. Bureau of Economic Analysis, 2003

6. Freight Tonnage Increases by 2020 South Region 89% Northeast Region 79% Central Region 89% West Region 100% Source: FHWA Freight Analysis Framework Project Reebie Associates 1998 data (1st Approximation) WEFA economic data and forecasts

7. Business Practices History of Industrial Competitiveness 1800s Firms stressed ability to decrease cost of production of each unit Early 1900s As production started to catch up with demand, businesses recognized the importance of sales Emphasis on PRODUCTION Emphasis on SALES Emphasis on LOGISTICS Late 1900s & 2000 Sophistication of product offerings, globalization and increased customer expectations make logistics key to companies’, regions’ competitiveness

8. Distribution & Logistics: The New Business Model The use of the transportation system, information technology, and distribution facilities to assemble and move raw materials and products to regional, national and international markets Why ? Increased competition for global markets Increasing offshore production and movement of parts and goods Business cost savings already realized through production efficiency Supply chain management offers opportunity for additional cost savings

9. Columbia Sportswear 1. Inbound Movement Apparel, footwear, and accessories arrive via ship from Asia at T-6, transported by truck to the Rivergate DC; some move through Seattle and Tacoma. Air shipments arrive both at PDX and Sea-Tac. Ocean/air shipments arriving in Puget Sound transported by truck to Rivergate. 1

10. 2. Value Added Services Ocean containers unstuffed; airfreight unpacked. Products sorted/stored by SKU. Once all SKUs for a customer's order arrive, shipment packed for delivery. Customers provide routing instructions; shipments prepared for truck or air shipment accordingly. The Rivergate DC also handles returns. 2

11. 3. Reload Facility Freight forwarders transport shipments by truck to reload facility for air shipment. LTL carriers take shipments by truck from DC to the LTL’s local hubs in Portland for consolidation with other loads to same cities. 3

12. 4. Outbound Movement All three product lines (apparel, footwear, and accessories) shipped out by air or truck. Air cargo shipped out of PDX primarily using integrated carriers (such as FedEx, UPS, Emery, etc.) for domestic delivery. Once consolidated, LTL shipments move through carrier’s hub and spoke network throughout North America. Full truckload shipments move directly from DC to customers’ warehouses or stores. 4

13. Freightliner 1. Inbound Movement Subassemblies (axles and engines) arrive by ship from Germany and Finland primarily through T-6. Other parts and subassemblies arrive by truck from Mexico and Canada, and by truck/rail intermodal from domestic suppliers. 1

14. 2. Manufacturing Steel and aluminum sourced locally. Medium and heavy-duty trucks produced at Swan Island production facility for global distribution. 2

15. 3. Distribution Finished trucks are distributed to dealers throughout the U.S. Parts are shipped to regional warehouses. 3

16. 4. Exports Western Star brand trucks are shipped to Australia and New Zealand predominantly through T-6. 4

17. Fred Meyer 1. Inbound Movement Asian imports arrive predominantly through T-6 and are sent to Fred Meyer distribution centers in Chehalis, WA and Clackamas, OR. Various grocery items and general merchandise arrive via truck and truck/rail intermodal from domestic suppliers. Seasonal goods for Kroger Supermarkets arrives through T-6. 1

18. 2. Reload Facility Kroger seasonal items are trucked to north Portland transload facility. Containers are unstuffed and consolidated into domestic containers before being trucked to intermodal facility. Goods are shipped via rail to Kroger’s distribution center in Nashville, TN. 2

19. 3. Warehousing/Distribution All food and nonfood items from international and domestic suppliers are sent to Clackamas distribution center for distribution to stores throughout the west (except WA and AK stores) 3

20. 4. Retail/Local Consumption Fred Meyer Stores operates a large fleet of trucks and trailers for distribution of goods to its retail stores. 4

21. U.S. Metropolitan Centers Fifty Largest

22. Manufacturing Centers Employment Density by County

23. Wholesaling/Distribution Centers Employment Density by County

24. Exports Imports International Freight Gateways Exports & Imports (Tons), 1998 Source: FHWA Freight Analysis Framework Project Reebie Associates 1998 data (1st Approximation) WEFA economic data and forecasts Exports Imports Source: FHWA Freight Analysis Framework Project Reebie Associates 1998 data (1st Approximation) WEFA economic data and forecasts

25. Metropolitan Freight Centers Major Population Areas

26. Freight Transportation Demand Growing in Most Urban Areas Portland origin/destination freight volume to double by 2030 Thousand Short Tons

27. Commodity Share of Portland/Vancouver Region Tonnage (Percent Share of Total Tonnage in 1997) Eight commodity categories comprise 74% of all tonnage shipped in the region on all modes.

28. Freight Mobility Largely Dependent Upon Trucks 1996 2030

29. Pass Through Tonnage Doubles The Portland region handles increasing pass through traffic for elsewhere in the country. Thousand Tons Pipeline Rail Truck Barge Thousand Tons

30. Challenges Meeting Urban Access Needs for Container Growth

31. Challenges Maintaining Industrial Land Adjacent to Freight Corridors

32. Challenges Maintaining Good Access to Warehousing and Distribution Centers

33. Challenges For Most Urban Areas Capacity Increases Represent a Hurdle

34. Implications Industry specialization and reliance on efficient transportation means industries may choose to relocate if transportation costs affect their ability to compete Congestion has real costs and affects business productivity Hard costs Extra time for pick-up and delivery/reduced production time Extra vehicles to meet “just-in-time” demands of customers and scheduling problems caused by longer delivery times Soft costs Business credibility Expansion decisions

35. Urban Freight Planning Tools Freight modeling Regional/local transportation plans Investment strategies Economic Base analysis Forecasting Comprehensive plans Land use location analysis Land use and tax policy assessment Design standards Access management policies

36. Urban Freight Planning Approach in Portland Planning/Policy/Research Reflect freight in region’s transportation and land use plan Key Freight Corridors Industrial lands and intermodal facilities Other freight facilities Local transportation plans reflects freight routes Policy emphasis on maintaining access to intermodal facilities and industrial sanctuaries Research on industry freight needs Freight bottlenecks Supply-chain geography Economic relationship to freight investments Freight Advisory committees Regional, City and Statewide-linked by membership

37. Urban Freight Planning Approach in Portland Forecasting/Analysis Commodity flow forecast for six county region 41 Industrial sectors- tonnage, mode and growth Truck Model Identification of freight bottlenecks Port Transportation Improvement plan (PTIP) City Freight plan Region priority freight needs Investments Oregon Transportation Investment Act-legislative program with freight emphasis Region allocation for federal funds Port request for demonstration projects