1. Congestion Mitigation Through Improved Freight Efficiency: Partnering with Business for a Positive Solution Paul A. Belella Principal Delcan Corporation October 17, 2007

2. Congestion Mitigation Through Improved Freight Efficiency Contents Congestion: What We’re Up Against How We’ve Chosen to Deal With It… …and Why That’s Not Enough A Positive Alternative Where We Go From Here

3. Congestion Mitigation Through Improved Freight Efficiency What We’re Up Against We’ve all heard the statistics: Congestion at capacity bottlenecks represents 40 percent of all congestion delay In 1982, 35 percent of the major road system was congested; by 2003 that figure rose to 65 percent By 2020, 29 percent of urban NHS routes will be congested or exceed capacity for much of the day; 42 percent during peak periods Actual travel times routinely exceed ideal travel times by 20 to 60 percent Expenditures for new capacity are at 4 percent of what’s needed Trade traffic is expected to increase by 85 percent between 2003 and 2020 Domestic freight is expected to increase by 70 percent between 2003 and 2020 75 percent of freight traffic in US is carried on highways In January 2006, bottlenecks were causing truckers $8 billion annually This congestion is a direct threat to our global competitiveness and economic vitality

4. Congestion Mitigation Through Improved Freight Efficiency How We’ve Chosen to Deal With It Everyone agrees that something must be done, we just can’t all agree on what that is We’ve got Creative Financing Private toll roads and partnerships Loan programs and infrastructure banks We’ve got Intelligent Transportation Systems ATMS: signal control; ramp metering; event management; etc ATIS: navigation aids; traffic info sites; etc ITS/CVO: weigh station pre-screening; location tracking; RFID; etc We’ve got Travel Demand Management HOT lanes & Congestion pricing Truck-only facilities Unfortunately, too often we treat freight as an adversary, rather than a key component in the economic engine

5. Congestion Mitigation Through Improved Freight Efficiency Why That’s Not Enough The trucking reality Trucks will always be needed to complete the overwhelming majority of first- and last-mile goods movement Trucks provide essential flexibility and speed Depending upon the type of operation, as much as 50 percent of truck trips are empty Key freight axioms A full truck that’s moving = commerce in action = economic vitality A full truck that’s stationary = pure cost = economic harm An empty truck that’s moving = pure cost = congestion costs for everyone Pay-as-you-go facilities = new direct cost >> benefit Reliable performance + reduced costs = wide-ranging benefits We need to encourage efficiency, rather than penalize inefficiency – there is a difference

6. Congestion Mitigation Through Improved Freight Efficiency Competitiveness Improved Business Environment Greater Attractiveness Enhanced Quality of Life A Positive Alternative: Working in Partnership Goal: Trip Reduction Freight Carrier Benefits Improved Efficiency Higher Profitability Better Labor Conditions Less Traffic Volume Reduced Congestion Better Safety & Environment Public Benefits Lower Prices Better SC Performance Reduced Transport Costs SC Benefits

7. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: The IFTWG Example Industry and government working together An ongoing public-private partnership (since 1998) All modes are involved and engaged: Railroads Steamship lines Trucking companies Terminal operators Technology providers Government agencies Key objectives: Pursue solutions to common challenges Promote inclusiveness and collaboration Creatively apply new, emerging, and existing technologies Catalyze adoption of standards and best practices

8. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: The C-TIP Example The premise: Coordinated public agency and business truck trip reduction solution Encouraging business to expand collaboration Extracting business and public benefits Key components: A web services-based suite of applications to coordinate “cross-towns” Low-cost linkages between ATIS, freight dispatchers, and drivers Enhanced monitoring of network conditions using live freight data Improved access to information regarding “shipments of concern” Applicability: Applicable anywhere that multiple repetitive intermodal trips occur Particularly valuable in and around major freight centers Through the IFTWG, 4 RR’s, 3 trucking companies, a terminal operator, and 5 agencies are working together

9. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: Applying C-TIP with Rail

10. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: Applying C-TIP with Rail The Scenario: Two loads to be transferred between two rail terminals – one in each direction 1 2 Two carriers have trucks that are available to pull each load - which should take the loads? Data from KCScout provides roadway conditions and travel times With this data, and C-TIP, the railroads and carriers collaborate to avoid wasted trips ! C-TIP Server The carriers connect to the C-TIP web server to request the loads, and C-TIP assigns both to one carrier

11. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: Applying C-TIP with Rail FHWA conducted a case study to identify the potential congestion mitigation benefits of C-TIP For Kansas City, C-TIP has the potential to: Reduce intermodal truck trips by 22% Reduce cross-town and local delivery truck trips by more than 1,500 per week (approximately 82,000 annually) Provide benefits equivalent to removing nearly 245,000 personal vehicle trips annually Reduce annual truck VMT by more than 1 million* Applying similar effects to Chicago, C-TIP may: Reduce annual truck trips by 1.35 million (equivalent to more than 4 million personal vehicle trips) *Based on average trip length of 12.5 miles

12. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: Applying C-TIP Near a Port

13. Congestion Mitigation Through Improved Freight Efficiency A Positive Alternative: Applying C-TIP Near a Port The Scenario: Two loads to be picked up at Dundalk Terminal by 6 PM – It is now 5:30 PM 1 2 3 One dispatcher has 2 trucks in the area, another has one – which two should take the loads? Data from MMTIS informs them of conditions and travel times With this data, and C-TIP, they are able to coordinate regarding which trucks to send to make the time window and avoid a wasted trip ! C-TIP Server

14. Congestion Mitigation Through Improved Freight Efficiency Where We Go from Here Obtain funding for Kansas City demonstration Deploy system Conduct operational test & evaluation Explore applying the C-TIP concept in a Port City Formulate a partnership & Identify needs and expectations Adapt concept of operations to local conditions Conduct pilot deployment Identify other mutually beneficial regional options Establish a body of professionals to define opportunities Promote creativity and collaboration to evaluate alternatives Adopt a new mindset towards freight Remember that more freight = economic development Remember that more efficient freight = improved quality of life Remember that more collaboration with freight = better solutions