Regional Goods Movement Regional Goods Movement Study for the San Francisco Study for the San Francisco Bay AreaBay Area

presented bypresented by

Cambridge Systematics, Inc.Cambridge Systematics, Inc.

withwith

Hausrath Economics GroupHausrath Economics GroupThe Tioga GroupThe Tioga GroupDowling AssociatesDowling Associates

February 25, 2003February 25, 2003

All Businesses/Consumers Rely on Goods All Businesses/Consumers Rely on Goods Movement, But What are Economic Hot Buttons?Movement, But What are Economic Hot Buttons?

Goods movement businesses Goods movement businesses (carriers, warehouse/DC, logistics (carriers, warehouse/DC, logistics services)services)

• Jobs/communities impacted Jobs/communities impacted (880 corridor, South SF)(880 corridor, South SF)

• Trends affecting location Trends affecting location (Safeway example)(Safeway example)

• Opportunities for value and job Opportunities for value and job growth (value-added distribution)growth (value-added distribution)

Significant industries where Significant industries where transportation affects locationtransportation affects location

All Businesses/Consumers Rely on Goods All Businesses/Consumers Rely on Goods Movement, But What are Economic Hot Buttons?Movement, But What are Economic Hot Buttons?

TradeTrade

• Unique features of Bay Unique features of Bay Area Ports Area Ports

• Competitive issues Competitive issues

• Growth in air cargoGrowth in air cargo

How Should MTC Allocate Funds to Goods How Should MTC Allocate Funds to Goods Movement?Movement?

Most RTP funds are already planned or programmedMost RTP funds are already planned or programmed• How do freight needs overlap with passenger needs?How do freight needs overlap with passenger needs?• New revenue opportunitiesNew revenue opportunities

RTP emphasizes maintenance and operationsRTP emphasizes maintenance and operations• Traffic operations for freight (I-880 Corridor example)Traffic operations for freight (I-880 Corridor example)• Private sector solutions (FedEx staging in South SF)Private sector solutions (FedEx staging in South SF)• Public/private ITS solutions (Synchro Met example)Public/private ITS solutions (Synchro Met example)• Innovative modal services (CIRIS, Napa/Solano rail)Innovative modal services (CIRIS, Napa/Solano rail)

Look at goods movement system through eyes of the usersLook at goods movement system through eyes of the users• Market segments (long haul, parcel, construction, Market segments (long haul, parcel, construction,

drayage, etc.)drayage, etc.)• Customer requirements (timing, equipment choices)Customer requirements (timing, equipment choices)

Reauthorization and Statewide Policy IssuesReauthorization and Statewide Policy Issues

Freight fundingFreight funding

• User fees User fees

• Gateway fundingGateway funding

Funding for rail investments (e.g., rail shuttle projects, Funding for rail investments (e.g., rail shuttle projects, public-private)public-private)

• AASHTO Rail Freight Bottom Line, Mid-Atlantic RailAASHTO Rail Freight Bottom Line, Mid-Atlantic Rail

Project earmarking – Where is the competition?Project earmarking – Where is the competition?

Global Gateways and ITIP FundingGlobal Gateways and ITIP Funding

Overview of the TeamOverview of the Team

Cambridge Systematics, Inc.

• Project Management• Freight Data• Freight and Economic Development• Freight Policy

Key Staff: Michael Fischer, Project ManagerChristopher Wornum, Principal-in-Charge

The Tioga Group

• Industry Knowledge• Trucking, Ports and Rail• Logistics Trends

Key Staff: Dan Smith, Steve Nieman

Hausrath Economics Group

• Land Use• Economic and Community

Development

Key Staff: Linda Hausrath

Dowling Associates

• Traffic Operations• Transportation Engineering

Key Staff: Mark Bowman

Overview of ApproachOverview of Approach

Task 2. Assessment of Issues and

Strategies

Task 3. Final Report

Task 1. Stakeholder Interviews and Issue

Identification

Phase I Phase II

Task 3. Cluster and

Economic Impact Analysis

Task 4. Land Use and Community Impact Analysis

Task 1. Develop Detailed Work Plan

Task 2. Data Reconnaissance

and Trend Analysis

Task 6. Initial Stakeholder Interviews

Task 7. Phase 1 Report

Task 5. TEA-21 Reauthorization

Freight Transportation System Data and Freight Transportation System Data and Trends Trends

Economic Structure

Type of Businesses, Number of Households

Industry Logistics Patterns

Supply Chains, Distribution Networks

Freight Infrastructure

Highways, Rail Lines, Ports, Access Roads . . .

Traffic FlowsTrucks, Planes, Rail Cars . . .

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The Goods Movement IndustryThe Goods Movement IndustryHighway Infrastructure and Truck OperationsHighway Infrastructure and Truck Operations

Manufacturing

Warehousingand Distribution

Air Freight and Parcel/Express

ContainerizedOcean Shipping

Railroad and Intermodal Transportation

Commercial Trucking

Truck Fleet Operations and

Support Industries

Economic Impacts and Clusters – Goods Economic Impacts and Clusters – Goods Movement Dependent IndustriesMovement Dependent Industries

Supporting Infrastructure

Supporting Industries

Supporting Industries

Supporting Industries

Industry Clusters

Infrastructure and Business EnvironmentInfrastructure and Business Environment

CollateralActivities

• Business Attraction• Private Investment

• Job Training

OtherInfrastructure

• Water and Sewer• Education

• Power

Housing and Quality of Life

• Affordability• Crime

• Public Amenities

TransportationInvestments

• Transit• Freight

• Highways

Tax and Regulatory Environment

Labor Force• Wage Rates• Skill Level•Activism

Agriculture/Forestry

Manufacturing

Distribution

High-Tech

Construction

Health Care

Tourism

Military

Agriculture/Forestry

Manufacturing

Distribution

High-Tech

Construction

Health Care

Tourism

Military

Interregional, Interstate, and International Interregional, Interstate, and International Transportation Needs for Key IndustriesTransportation Needs for Key Industries

Less Important More Important

Land Use and Community ImpactsLand Use and Community Impacts

Impacts of economy and real estate market on location of Impacts of economy and real estate market on location of goods movement industrygoods movement industry

Community attitudes and local land use policyCommunity attitudes and local land use policy

Tax base advantages from switching land out of Tax base advantages from switching land out of transportation usestransportation uses

Future development patterns and goods movement Future development patterns and goods movement industryindustry

Stakeholder Interviews and IssuesStakeholder Interviews and Issues

Stakeholder groupsStakeholder groups

• CTA, commercial truckers, CTA, commercial truckers, private fleet owners private fleet owners

• Port/airport, ocean carriers, Port/airport, ocean carriers, terminal operators, air cargo terminal operators, air cargo operatorsoperators

• Class I and shortline Class I and shortline railroadsrailroads

• Local electeds and plannersLocal electeds and planners

• ShippersShippers

• Warehousing and Warehousing and distribution industrydistribution industry

Issue areasIssue areas

• Infrastructure needsInfrastructure needs

• Operational problemsOperational problems

• Land use and regulatory Land use and regulatory issuesissues

• Institutional/Governance Institutional/Governance

• Funding and FinanceFunding and Finance

Assessing Issues and Strategies/SolutionsAssessing Issues and Strategies/Solutions

Develop solutions Develop solutions and compile and compile evaluative evaluative informationinformation

Relate solutions to Relate solutions to implementation implementation issues and likelihood issues and likelihood of successof success

Construct Construct performance performance measures where measures where possiblepossible

Conduct Conduct workshop/charetteworkshop/charette

Category

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Infrastructure

Freeway 1 FreewayNew general purpose and/or HOV lanes Additional capacity on corridors used by trucks x x x

2 FreewayNew truck climbing lanesAuxiliary lanes to increase capacity for trucks and general-purpose traffic x x x

3 FreewayTruck-only freeway lanesDesignated truck lanes. Could be barrier-separated from general purpose lanes. x x x x

4 FreewayNew freeway interchanges and/or rampsNew and improved access to high-volume truck nodes. x x x x

5 FreewayRetrofit interchange & ramps Capacity and safety improvements. x x x x

Arterial 6 ArterialNew arterials New roads to access truck nodes and/or underdeveloped industrial lands. x x x x

7 ArterialRetrofit arterials for freightGeometric improvements (e.g., radii, turn lanes, vertical and horizontal clearance). x x x x x

8 ArterialAdequate vertical and horizontal clearances for oversize trucks

Eliminate obstructions (e.g., low bridges, signal mast arms, utility poles, trees). x x

9 ArterialOversize load corridorsContinuous routing of oversize loads across jurisdictions x

10 ArterialNew signals Improve capacity for side streets serving truck nodes. x x x x

11 ArterialAccess control improvements to serve truck needs

Geometric improvements (e.g., U-turn facilities for trucks, median design, etc.) x x x

ITS 12 ITSIntelligent Transportation Systems (Public projects)

Information, communications, advanced signal systems, etc. x x x x

Other 13 OtherSafety improvements for trucksGeometric improvements (e.g., radii, superelevation, shoulders, accel/decel lanes). x

14 OtherNew signage Enhanced driver information and routing. x

15 OtherTruck staging and parking Facilities to reduce truck impact. x x

Related Goods Movement StudiesRelated Goods Movement Studies

National Efforts with Regional SignificanceNational Efforts with Regional Significance

National Cooperative Highway Research ProjectsNational Cooperative Highway Research Projects

• 8-39 – Financing and Improving Land Access to U.S. 8-39 – Financing and Improving Land Access to U.S. Cargo HubsCargo Hubs

• 8-42 – Freight Movement by Rail, Impacts and 8-42 – Freight Movement by Rail, Impacts and OpportunitiesOpportunities

• 8-43 – Methods for Forecasting Statewide Freight 8-43 – Methods for Forecasting Statewide Freight Movements and Related Performance MeasuresMovements and Related Performance Measures

• 8-36(A), Task 33 – Best Practices for Statewide Freight 8-36(A), Task 33 – Best Practices for Statewide Freight PlanningPlanning

AASHTO Freight Rail Bottom Line ReportAASHTO Freight Rail Bottom Line Report

U.S. Chamber of Commerce, Port and Intermodal Access U.S. Chamber of Commerce, Port and Intermodal Access NeedsNeeds

National Efforts with Regional Significance National Efforts with Regional Significance (cont.)(cont.)

FHWAFHWA

• Freight Analysis FrameworkFreight Analysis Framework

• Freight Professional Capacity BuildingFreight Professional Capacity Building

• NHS Connector StudyNHS Connector Study

Transportation Security Agency, Operation Safe CommerceTransportation Security Agency, Operation Safe Commerce

TEA-21 ReauthorizationTEA-21 Reauthorization

Statewide Studies/ProgramsStatewide Studies/Programs

Global Gateways Development ProgramGlobal Gateways Development Program

State Rail PlanState Rail Plan

• Freight Rail PlanFreight Rail Plan

Freight Movement Cost Benefit StudyFreight Movement Cost Benefit Study

ITMS Statewide Freight ForecastITMS Statewide Freight Forecast

Northern California – Representative Northern California – Representative Completed StudiesCompleted Studies

MTC/BCDC Cargo Forecast Update MTC/BCDC Cargo Forecast Update

MTC I-880 Corridor Truck Access StudyMTC I-880 Corridor Truck Access Study

Port of Oakland CIRIS White PaperPort of Oakland CIRIS White Paper

San Joaquin Valley Goods Movement Study, Phase ISan Joaquin Valley Goods Movement Study, Phase I

Central Stanislaus Freight StudyCentral Stanislaus Freight Study

BCDC Bulk Cargo ForecastBCDC Bulk Cargo Forecast

Oakland Port Services Location StudyOakland Port Services Location Study

Northern California – Representative Northern California – Representative Ongoing StudiesOngoing Studies

San Joaquin Valley Goods Movement Study, Phase IISan Joaquin Valley Goods Movement Study, Phase II

Port of Oakland/Caltrans/SJ Valley COGs CIRIS Market Port of Oakland/Caltrans/SJ Valley COGs CIRIS Market Feasibility StudyFeasibility Study

Port of Stockton Rail Shuttle StudyPort of Stockton Rail Shuttle Study

SJ COG Inland Port StudySJ COG Inland Port Study

Napa/Solano County Passenger and Freight Rail StudyNapa/Solano County Passenger and Freight Rail Study

Alameda CMA North I-880 Operations and Safety StudyAlameda CMA North I-880 Operations and Safety Study

Southern California Goods Movement Southern California Goods Movement StudiesStudies

Alameda CorridorAlameda Corridor

SCAG Goods Movement White PaperSCAG Goods Movement White Paper

MTA/SCAG/Caltrans/FHWA Southern California Goods MTA/SCAG/Caltrans/FHWA Southern California Goods Movement Case StudyMovement Case Study

SCAG Heavy Duty Truck ModelSCAG Heavy Duty Truck Model

Sub-Regional Goods Movement StudiesSub-Regional Goods Movement Studies

Rail Capacity/Truck-Rail Diversion StudiesRail Capacity/Truck-Rail Diversion Studies

Southern California Goods Movement Studies Southern California Goods Movement Studies (cont.)(cont.)

Truck Lanes/Corridor StudiesTruck Lanes/Corridor Studies

• SR-60 Truck Lane Feasibility StudySR-60 Truck Lane Feasibility Study

• I-710 Major Corridor StudyI-710 Major Corridor Study

• I-15 Corridor StudyI-15 Corridor Study

TEA-21 ReauthorizationTEA-21 Reauthorization

The $64 Million Question – What Will the New The $64 Million Question – What Will the New Surface Transportation Bill Hold in Store for Surface Transportation Bill Hold in Store for Ports and Freight Transportation?Ports and Freight Transportation? Some themes are emerging Some themes are emerging

• Freight transportation will see increased emphasisFreight transportation will see increased emphasis

• The effort to create options for public-private partnerships The effort to create options for public-private partnerships will require creative approaches to financingwill require creative approaches to financing

• Multimodal freight interests will still be viewed with Multimodal freight interests will still be viewed with suspicion by traditional highway lobbies – but there is hope!suspicion by traditional highway lobbies – but there is hope!

What Stakeholders Said in FHWA OutreachWhat Stakeholders Said in FHWA Outreach

Solutions will involve new capacity coupled with improved Solutions will involve new capacity coupled with improved operationoperation

Improve intermodal connections to enhance connectivity, Improve intermodal connections to enhance connectivity, interoperabilityinteroperability

Improve state and MPO planning and financing mechanisms for Improve state and MPO planning and financing mechanisms for freightfreight

Support multi-state coalitions to deal with corridor and regional Support multi-state coalitions to deal with corridor and regional trade/transportation issuestrade/transportation issues

Better enable public/private financing and other innovative Better enable public/private financing and other innovative finance approaches for freightfinance approaches for freight

More federal leadership needed given multiple modes, More federal leadership needed given multiple modes, jurisdictions, private stakeholders, international considerations, jurisdictions, private stakeholders, international considerations, and national security implicationsand national security implications

Some Perspectives on FundingSome Perspectives on Funding

Basic funding categories/revenue sources and funding Basic funding categories/revenue sources and funding structure unlikely to changestructure unlikely to change

• Highway Trust FundHighway Trust Fund

• Apportionment categoriesApportionment categories

• Discretionary earmarksDiscretionary earmarks

Some Perspectives on Funding (cont.)Some Perspectives on Funding (cont.)

Some new funding sources may be proposed by stakeholdersSome new funding sources may be proposed by stakeholders

• Indexing gas taxIndexing gas tax

• Recovery of ethanol tax exemptionsRecovery of ethanol tax exemptions

• National Transportation Finance CorporationNational Transportation Finance Corporation

How will freight projects get more money?How will freight projects get more money?

• Discretionary projectsDiscretionary projects

• New funding categories (e.g., set asides) – Affects existing New funding categories (e.g., set asides) – Affects existing apportionmentsapportionments

• Changing eligibility rules (e.g., broaden STP eligibility, Changing eligibility rules (e.g., broaden STP eligibility, modify TIFIA, add gateways to Sec. 1118/1119)modify TIFIA, add gateways to Sec. 1118/1119)

• Changes in planning process – More effectively compete for Changes in planning process – More effectively compete for existing fundsexisting funds

Freight Reauthorization IdeasFreight Reauthorization Ideas

Improve Freight FinancingImprove Freight Financing

• Flexibility for intermodal freight in existing Fed-aid Flexibility for intermodal freight in existing Fed-aid programs (e.g., CMAQ, STP)programs (e.g., CMAQ, STP)

• Innovative Finance (e.g., TIFIA for freight)Innovative Finance (e.g., TIFIA for freight)

• More emphasis on NHS intermodal connectors More emphasis on NHS intermodal connectors

• Expand Borders/Corridors to include Gateways/HubsExpand Borders/Corridors to include Gateways/Hubs

Improve State/MPO freight planning, including public/private Improve State/MPO freight planning, including public/private collaborationcollaboration

Improve data and analytical tools Improve data and analytical tools

Need freight professional capacity building Need freight professional capacity building

Focus on Operations/Technology/SecurityFocus on Operations/Technology/Security