1. Freight Issues and Policy Options Memphis Freight Planning Conference October 2, 2001 Gary Maring, FHWA

2. 2 Objective Freight Trends/Issues What have we Learned from Outreach Events and Freight Analysis efforts Policy Development toward Reauthorization

3. 3 Emerging Freight Trends and Issues Markets/Logistics (demand)  From national markets to global markets  From a manufacturing to a service economy  Moving to customer dictated just-in-time delivery system Carriers/Transportation Systems (supply)  Increased DOD reliance on commercial freight system/National security implications for transportation  From modal fragmentation to cross-modal coordination  From system construction to system optimization Public Policy  From economic deregulation to safety regulation  From modal to multi-modal surface transportation policy  Increased environmental accountability

4. 4 More vehicles- More delay Vehicle travel up 72% Road Miles up 1% 1980-1998

5. 5 Freight Volumes Growing- Projected doubling by 2020

6. 6 Many Public/Private Partners in an Intermodal Movement PortRailroad RR1 Chicago Drayage RR2 Chicago RailroadDrayage Consignee Dest. City Port Authority Infrastructure Provider and manager- e.g.Traffic Mgmt. Infrastructure & Traffic Mgmt

7. 7 National Highway System Intermodal Connectors - InfrastructureConstraints NHS Connectors  Poor physical condition  Poor geometrics  “orphan status”  inadequate coordination of investment strategies

8. 8 Public Sector (States, MPOs) Private Sector (Shippers, Carriers) Global National Regional Local Freight Transportation Perspectives State and MPO focus is regional and local; private sector focus is increasingly national and global

9. 9 Highway Flows of International Freight Moving into and From the Port of Charleston

10. 10 DOT Freight Outreach Events

11. 11 What we’re Hearing Solutions will involve new capacity coupled with improved operations Plan and operate the system as a system, not as individual modes/elements Improve intermodal connections to offer choice, connectivity, interoperability Federal leadership needed given multiple modes, jurisdictions, and private stakeholders; international considerations, and national security implications Improve State and MPO planning and programming process for freight Support multistate coalitions to deal with corridor and regional trade/transportation issues Enable public private financing and other innovative finance approaches

12. 12 Future Options Toward Reauthorization

13. 13 Policy Framework - the 4-I’s We need to strengthen institutional arrangements to coordinate decision making and implementation We must expand the use of information/ technology to improve freight operations and security We must work closely with State and local partners, other agencies, and the private sector, to improve infrastructure decision making and finance needed improvements We must ensure that the US trade transport system supports international trade development

14. 14 Freight Transportation Problem Solving  The geography of freight...three key problem areas International gateways Multi-jurisdictional cooperation and finance Statewide and metropolitan freight programs  Define the problem…identify institutional and financing options to address each area

15. 15 Top Gateways for International Freight Exports and imports in tons Exports Imports

16. 16 International Gateways- Air and Water Gateway Problems  We have inefficient system connectivity & interoperability…connectors are orphans…there is a mismatch of freight benefits and costs…tough to get local jurisdictions to invest when benefits are perceived to flow elsewhere  Because of these compounded problems, state and local governments are challenged to cope with the magnitude and complexity of financing international gateways

17. 17 International Gateways -NAFTA Border Problems  We have a fragmented institutional approach for addressing NAFTA borders  There is an overall lack of funding to address problems  We are constrained in combining and leveraging existing State, national & international sources of funding  Cross border coordination is getting better, but has a long way to go

18. 18 International Gateways - possible approaches  Create a National Freight Advisory Council – provide continuous advice on gateways of national/international significance  Enable special authorities to deal with gateways and border financing…Alameda Corridor JPA, binational authorities  Create and support interagency and bi-national border coordinating mechanisms…JWC  Expand TEA-21 innovative finance options for freight…emphasize co-mingling of funds  Modify TEA-21 borders/corridors program  Create binational investment banks…expand NAFTA NADBANK eligibility to transportation

19. 19 Multistate/multijurisdictional Organizations I-95 Corridor Coalition I-35 Trade Corridor LATTS

20. 20 Multi-State/Multi-Jurisdictional Challenges  Freight does not recognize traditional jurisdictional boundaries…States, MPO, countries…current efforts are ad hoc  Coalitions lack the requisite authority to sustain and fund improvements  Coalitions are viewed by some as “just another layer of government”  Building coalitions, providing funding, and rationalizing their influence with state and local jurisdictions is a challenge

21. 21 Multi-Jurisdictional Issues Possible approaches  Enable jurisdictions to go beyond current boundaries…but don’t mandate their creation  Create Federal authority to enable multi-modal and multi-jurisdictional compacts…provide financial capacities to create “new money”  Provide Federal grants for multistate planning, technical support, staffing,  Enable Federal loans and credits for multijurisdictional capital improvements

22. 22 Statewide & Metropolitan Freight Planning and Programming  Inadequate coordination among Federal DOT agencies  Transportation planning process is not freight friendly…funding constrained… not all freight modes represented…lack of data and analytical capability… staffing issues… and limited coordination with the private sector  Disconnect between transportation planning and economic development  Difference in the time horizon and geographic perspective between transportation planning agencies and the private sector

23. 23 Statewide & Metropolitan Freight Possible approaches  Ask State Governor to designate appropriate freight institution(s)… include economic development… prioritize freight improvements…address public-private risk sharing roles  Reform the planning process…bring multimodal freight interests to the table…expand our ability to co-mingle private and public money  Create a One DOT freight planning approach… ?intermodal planning fund  Evaluate freight set asides & eligibility changes with existing programs

24. 24 ISTEA Intermodalism Innovative Finance TEA-21 Funding Increases TIFIA State/local freight focus ??? Information/Technology Infrastructure Funding Institutional Development International EfficiencyEquityEffectiveness 1991 - 971998 - 032004 - ?? Toward Surface Transportation Reauthorization- Freight elements?

25. FHWA Office of Freight Management and Operations, USDOT http://www.ops.fhwa.dot.gov/freight Gary Maring Director gary.maring@fhwa.dot.gov