1. Self-Supporting Truckways: Closing the Gap in Financing Expanded Goods Movement By Robert W. Poole, Jr. and Peter Samuel

2. Trucks Will Remain the Mainstay of Goods-Movement z Decentralization of warehouses and industry (no rail sidings) z Growth in just-in-time logistics (premium on speed and reliability) z Short-medium distances uncompetitive for rail z Projected increase in S. Calif rail mode-share from 22% to 37% by 2020 is highly unlikely.

3. But Trucking Faces Serious Problems z Inadequate highway capacity z Increasing congestion z Limited productivity gains z Continued safety problems z Diesel emission problems

4. Inadequate Highway Infrastructure (national figures) z From 1980 to 2000, VMT grew by 80%. z From 1980 to 2000, lane-miles increased only 4%. z Truck VMT is growing faster than car VMT. z 46% of National Highway System will be at or over capacity by 2020.

5. Interstates Becoming Congested z Severely congested (V/SF>.95) Interstates in 2001: Urban: 3,084 rt.-mi. Rural: 523 rt.-mi. z Moderately congested Interstates (V/SF 0.8 to 0.95) in 2001: Urban: 2,392 rt.-mi. Rural: 1,299 rt.-mi.

6. Trucking Could Be Far More Productive z Rail labor productivity has increased four-fold since 1980. z But in trucking, one driver still hauls (mostly) one trailer. z Longer combination vehicles (LCVs) can more than twice as much freight as conventional 18-wheelers z Truck shipping is $610 billion/year business; 10% saving is $61 billion

7. What Are LCVs?

8. Safety Issues Holding Up Change z 5,000 deaths/year from car-truck crashes. z Highway safety groups against expanding territory of LCVs. z Federal (1991) “LCV freeze” restricts use to western states and a few eastern turnpikes.

9. Existing LCV Routes

10. Toll Truckways: a new approach z Heavy-duty lanes designed for LCVs z Built in existing right of way along freeways and Interstate routes z Open (voluntarily) to all trucks; mandatory for LCVs in non-LCV states z Self-funding from tolls, charged electronically

11. Toll Truckway Productivity Mixed freeway semi-trailer Mixed freeway double-shorts Truckway semi trailer Truckway double-short Truckway triple-short Truckway double-long Payload45,000 lbs 67,500 lbs90,000 lbs metric tons20t 30t40t 100 mile delivery - 2004 freight rates$500 $750$1,000 Average speed on the road43mph 65mph Miles driven in 8-hr shift (6 hrs driving)258 miles 390 miles Revenue from 6 hrs payload at 2004 rates$1,290 $1,950 $2,925$3,900 Variable costs$775 $1,007$1,165 Available for overhead, profits, tolls$515 $1,175 $1,918$2,735 Extra earnings from using truckway/shift/day$660 $1,403$2,220 Drop assumption of no change in freight rates Assume the extra productivity split 3 ways3x$220 3x$4683x$740 Shipper's savings on 100 mile delivery, %$56 11.2% $120 24%$189 38% Additional for trucker overhead & profit/day$220 43% $468 91%$740 x1.44 Truck tollway - possible toll per mile56c/mile $1.20/mile$1.89/mile

12. Key Urban Truckway Features z Two (14’) lanes each way z Concrete jersey barrier separation z Separate access/egress ramps z Nodes (make-up/breakdown yards) z Variable tolling, all-electronic z Voluntary for conventional rigs, mandatory for LCVs z Located in existing freeway corridors

13. Twin Ports to Nevada Truckway z I-710,I-210, SR 60, I-10 among top 7 truck volumes nationally (2020) z Trucks often 10% of traffic, 30% of capacity z 4-lane truckway ports to I-15, 2-lane (+ passing lanes) I-15 to NV border z Urban segment: 292 lane-mi., $8.1B z Rural segment: 380 lane-mi., $2.0B

14. Ports - Nevada Toll Truckway

15. Analysis of Ports-Nevada Truckway z Assume 3% annual truck traffic growth z Medium-term urban: 50% of trucks @ $1.00/mi (2004) average toll z Medium-term rural: 60% of trucks @ $0.40/mi. (2004) average toll z Results: both segments financially feasible (urban NPV = $17.7B, rural NPV = $6.2B)

16. Oakland-Valleys Truckway z Link Port of Oakland to Silicon Valley and Stockton/Tracy z 80% of Bay Area goods-movement is by truck z 325 lane-miles, all 4-lane z $11.9B construction cost (using SCAG figures)

17. Oakland – Valleys Toll Truckway

18. Analysis of Oakland-Valleys Truckway z Truck traffic from federal FAF z Medium-term: 60% of truck traffic z $1.00/mile average toll (2004) z Results: financially feasible (NPV of $14B vs. cost of $11.9B)

19. Needed Policy Changes z Provision of right of way in Interstate and freeway corridors (federal and stae) z Liberalized size & weight limits on Toll Truckway lanes (federal and state) z Removal of ban on Interstate tolling for Toll Truckway lanes (federal and state) z State enabling legislation for tolling, regional joint powers authorities

20. Conclusion: toll truckways could be a win-win proposition z Increased goods-movement capacity, paid for by users z Reductions in shipping costs z Increased highway safety z Reduced highway emissions