Marine Transportation System

Posts Tagged ‘rail’

Our Friend and Partner, Mr. Truck

In Efficiency, Intermodal, Marine Highway, Surface Transportation Policy on May 12, 2010 at 12:16 am

Everyone who thinks there are too many rigs on the roads, raise your hand.  If today you used something that arrived on a truck, raise your other hand.

You can put both hands down.

Bill Graves, President of the ATA, has taken umbrage at some of the recent rhetoric in Washington.  Not much love is being heard.  Just “take trucks off the road.”

It must have hurt to read this sharpened lead in a recent Journal of Commerce cover story:  “The Obama administration is forming a national freight transportation policy that can be boiled down to one concept: Get more trucks off the roads.”

In his April 30, 2010 letter to Secretary Ray LaHood Mr. Graves points to USDOT’s favorable references to, and funding of, intermodal rail and marine highway as ways to “take trucks off the road.”  The Trucker-in-Chief disagrees.

Of course Secretary LaHood has good reason to point to rail and water.  We all know intermodal rail is more fuel efficient than moving packages downhill on a Soap Box Derby special.  (That’s the only image the RRs have yet to use in their non-stop ads.)  So much more efficient that environmental organizations have become the railroads’ best advocates here in town.

And barges can carry even more tonnage on a whiff of what is in a locomotive’s fuel tank.   Too bad far fewer people know it (although the barge industry is trying to do something about that).

There are great efficiencies to be realized in the rail and marine modes.  Moving some truck loads to rail and water routes can be both good business and policy.

But here’s a shocker.  Trucks aren’t going away.  Not unless you want to have to trek down to the docks to pick up your new flat screen.  Or to the farm to get your cabbage.

The “off the road” talk is shorthand.  Not the full story.  The policy talk doesn’t single out just trucks.  It’s just that one doesn’t hear politicos say “take cars off the road” nearly as much.  Yet that also is part of USDOT’s “livable community” message.

Under Secretary Roy Kienitz said in his March testimony about the TIGER-like National Infrastructure Investments program that it  “focuses funding on investments in whichever modes are most effective in achieving our national transportation goals…”

The policy talk is about making the most of each of the modes.  Using the modes where they are most efficient in moving the goods.  Where possible make the long haul on rail much as trucking increasingly is hopping the freight…much as trucks will become customers of freight ferries and other coastal services.  Maybe even become owners.

And notwithstanding some of the words used by short sea advocates, the marine highway effort is not about putting trucks and their drivers off the road and out of business.  It’s about giving trucking logistics another route to take and an opportunity to rationalize operations.

Bill Graves is right to complain about glib “off the road” talk.  There are better ways to describe the future role of trucks, water and rail in the national transportation system.   Pbea

What TIGER Tells Us

In Marine Highway, Surface Transportation Policy on February 23, 2010 at 12:39 pm

No, not that Tiger.

The eagerly awaited TIGER grants were announced last week.  An experiment in government.  Against their better judgment members of the House and Senate gave $1.5 billion to the Administration and left it to the discretion of USDOT program managers, modal administrators, the Secretary (and perhaps the White House, just in case) to decide what projects were worthy.  (Egads! The bureaucrats!)

The multimodal discretionary grants program—later assigned a name and acronym at USDOT—was created a year ago in the cauldron in which Congress cooked up the economic recovery package.  The context was job creation in a failing economy.  But the genius of TIGER’s tenacious sponsors—most visibly Sen. Patty Murray (D-WA)—was that it also was a good time to try something different.  Politics would always be lurking in the background (if not in the foreground) when doling out tax revenue for public works but this was not a time for the earmarking norm.

Also lurking was the thought: if this works it could set the example for a change in transportation policy.

Lisa Caruso of the National Journal asks in her transportation “experts” blog if TIGER should be replicated in the surface transportation authorization bill.  Can it serve as a model for the revised policy and programs that many of us look for in the bill?

So far the respondents (scroll thru the page) generally agree there is benefit in the approach.  What’s not to like? Livable community folks liked the selection of street car and pedestrian path projects.  Goods movement was given a strong boost with around $300 million going to rail projects.  And it was good to see that at least one of the promising marine highway initiatives was granted $30 million.  (The first of many one hopes.)  That award illustrates how TIGER–and Secretary Ray LaHood–was open to more than the usual road, transit and bike path projects.

By and large, very good projects were selected.  But the question posed by Caruso is whether TIGER represents a policy approach worth continuing.

Some of the respondents think TIGER is a good starting point but that it is important to change the underlying policy.   In particular Steve Heminger notes it is not enough to create a grants program that is mode neutral.  An improved Federal policy and program should have a clearer, focused national perspective e.g., goods movement and metropolitan mobility.  It is a view I share.

Bob Poole raises an important policy question worth debating by suggesting an underlying weakness of a multimodal approach if a highway tax is the sole source of support.

One person’s response I would be interested to see is that of Sen. Barbara Boxer (D-CA).  In January 2009 the chair of EPW, which is to produce highway and other portions of the next authorization bill, flatly opposed the multimodal discretionary grants provision in the draft Senate stimulus bill, even as Heminger and other Californians welcomed the idea of a mode-neutral program and projects judged on their merits.  Boxer and others in the transportation leadership of Capitol Hill will decide whether the TIGER approach is just a brief detour from projects as usual.   Pbea

Rail + Road + Water = Surface Freight System

In Efficiency, Intermodal, Surface Transportation Policy on December 1, 2009 at 1:32 pm

Federal Railroad Administration (FRA) released a study in November comparing truck and rail fuel efficiency.  It’s an update of a 1991 FRA report.

The new study identifies rail as more efficient.  No surprise there.

The report, Comparative Evaluation of Rail and Truck Fuel Efficiency on Competitive Corridors (November 19, 2009), should be useful to Secretary Ray LaHood in developing a new freight policy.  But he should not leave it at road and rail.  Marine transport–the wet surface transportation–should be in the mix.

The Secretary has spoken about the need to understand how marine transportation can be better integrated with the surface transportation system.  He has identified marine highway development–and the capacity it would bring to domestic freight transportation system–as an administration objective.

The MARAD-funded TTI modal comparison report is very helpful in understanding how barge transportation compares to rail and road.  Does that tell us all we need to know?  After all, there’s more to domestic marine freight movement than tugs and barges.  More to the point, there’s more in store for coastwise and inland services than what is on the water today.  How would the planned, new Ro-Ro and container vessels compare to rail and truck?   Policy makers need complete 3-mode data to make complete policy decisions.

The freight logistics industry has pointed to the lack of a national freight policy.  The Freight Stakeholders Coalition announced in May its suggested “platform” for a freight policy.  As the platform suggests the policy should “foster operational and environmental efficiencies in goods movement.”  The platform also calls for the establishment of a “multi-modal freight office” in the Office of the Secretary (OST) in the interest of advancing freight mobility.

A multi-modal view that is not hampered by an old view of how transportation works is what is called for today.  Greater fuel efficiency isn’t an ideological issue.  It’s very much an economic matter to business and a bi-partisan policy matter as we understand the country’s interest in energy security.  Likewise we see environmental issues–emissions, particularly–becoming more of a business and policy concern.

That’s why the developers of the GIFT model are attracting interest.   Dr. James Corbett of the University of Delaware and Dr. James Winebrake of the Rochester Institute of  Technology–with the support of USDOT, MARAD and others–are developing the Geospatial Intermodal Freight Transportation (GIFT) model.  GIFT enables the fuel and emission comparison of modes for specific freight routes.  In other words, logistics planners soon will have a tool that goes beyond the one-sided “carbon calculator” analysis available on some rail and marine transportation company websites.

Corbett and Winebrake add further value with their IF-TOLD Mitigation Framework that they describe as “A Context for Mode Shifting Discussions.”

Some good work is being done to provide more information for making modal decisions and enable the development of smarter freight policy.  With any luck the policy makers will determine what multi-modal information is available as well as what additional information is needed before deciding on a long overdue national freight policy and the successor to SAFETEA-LU.   Pbea

Vision Ingredients (Part 1)

In Federal Government, Leadership, Surface Transportation Policy on November 28, 2009 at 8:19 pm

Thinking of George H. W. Bush can conger up a few unfortunate (for him), lasting images. For me it’s the former president’s food judgments (pork rinds good/broccoli bad), his unfamiliarity with the price of  milk, and Dana Carvey’s exaggerated but dead-on impersonation.  Then there was, “oh, the vision thing.”  It sounded like he thought it a useless factor in governing–perhaps more so than he may have intended–but it stuck.

As a practical matter civil servants and political appointees often aren’t given the time to engage in “visioning”. Sometimes when it is done it can amount to little more than a facilitated exercise.  But what may seem like a luxury, or a waste, arguably is essential for a new administration and even newly sworn congressional leadership.

At USDOT some part of a vision is in place, though I don’t know how much is the result of planning or predisposition.

The two elements of an Obama transportation vision that I can identify are high speed passenger rail and livable communities.  The first is courtesy of President Obama himself.  In an out-of-the-blue moment earlier this year the White House said the economic stimulus package being written in Congress must include billions to start a high speed rail program.  (It was one of a few Obama “musts” in a measure that was mostly dismissed by Republicans as a “Pelosi” bill.)   The rail piece was the president’s vision, and an inspired one to be sure.

The second quickly became a regularly voiced theme by Secretary Ray LaHood and his policy staff.  It suits an administration that is oriented toward energy conservation, the urban environment and, not to be forgotten, the voting pedestrian/commuter.  Does it qualify as vision?  I think so.  It’s more than a policy view because a livable community objective could transform urban and town landscapes and it entails a broad range of policy solutions.

Meanwhile a more complete administration surface transportation policy is still in the cooker.  Congressional committees are wondering what and when policy recommendations for a successor to SAFETEA-LU will emerge from USDOT headquarters.  Perhaps no sooner than mid 2010.

Vision and policy are not synonymous.  One can have a new vision, and implementing policy, for passenger rail while maintaining a decades-old freight policy.  Somehow that doesn’t sound like this administration.

It’s one thing for the recent Bush administration and Secretary Mary Peters to articulate a scant administration view  about transportation that amounted to little more than less Federal government, more State responsibility, and greater private sector financing and management.  It made for a transportation policy only a Cato could appreciate.

But we might reasonably expect more from Messrs Obama and LaHood given the administration’s expansive environmental and energy view.  Transportation’s role in addressing those issues is significant and goes beyond putting passengers on trains and encouraging transit use and bicycling.

So here’s the question: What is the total vision that will steer administration action and guidance to congress over the next three, maybe seven, years?  Will it be more than passenger rail and livable communities?    Pbea

California Trailblazing to a Miami Tunnel

In Intermodal, Ports, Surface Transportation Policy on November 17, 2009 at 11:04 pm

When earth was turned in 1997 for the Alameda Corridor project in the San Pedro Bay port region more than one kind of ground breaking was occurring.  The Port of Miami is a beneficiary.

In freight transportation policy circles the Alameda Corridor project one day may be legend.  The ports of Los Angeles and Long Beach were the gaping end of a freight funnel that emptied import boxes onto the exit rails and streets.  In essence the solution was to eliminate grade crossings by building a blow-grade rail way out of town.  A big project with a $2.4B price tag.  A key to the financing was Federal credit assistance.  The project and two others in California were the first to benefit by this innovation.  A paper on the FHWA website tells the story.

Due to Federal budgetary constraints, however, the grant was not deemed to be a fiscally or politically viable option. An alternative form of Federal support for this project was needed, and by 1997 the answer was clear: Federal credit enhancement in the form of a junior-lien loan to ACTA.

The fiscal year 1997 Omnibus Consolidated Appropriations Act (Public Law 104-208) provided $58.7 million for DOT to cover the capital reserve charges associated with making a direct loan of up to $400 million to ACTA for the Alameda Corridor Project. This represents an actual budgetary cost of 14.7 percent of the face value of credit assistance. The legislation also provided that the loan be repaid within 30 years from the date of project completion and that the interest rate on the loan not exceed the 30-year Treasury rate.

Inspired by the success of leveraging non-Federal investment for large infrastructure project, particularly private financing, Congress in 1998 fashioned a fully articulated TIFIA program.  It was adjusted in SAFETEA-LU with a lowered threshold to make more projects eligible.

Nearly $7 billion in projects in 13 states have benefited since TIFIA was created by Congress.  The Port of Miami’s rail freight tunnel had an uncertain future but with the October announcement the financing is in place and a $607 million construction project soon will be underway.  Not bad.   Pbea

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Putting an ! on Intermodal

In Intermodal, Marine Highway on November 6, 2009 at 6:39 pm

It’s been talked about for a while but the talking is over.  J.B. Hunt Transport Services did a major deal with Norfolk Southern Railway.  According to the Journal of Commerce (November 6, 2009):

Hunt said the accord “will further establish the parties as the leading providers of transcontinental and local intermodal service in the eastern half of the United States.”

***********

The new deal with NS, the trucker said, gives both partners “a platform to accelerate the conversion of traditional truck traffic to cost effective, environmentally friendly intermodal transportation with service that is competitive with truckload moves.”

It makes great sense (not that the folks at the two companies need affirmation from this quarter).  But if one thinks in total system terms, they are only making use of two-thirds of the surface system capability.  They are using only one-half of the available high capacity, high efficiency modes.

If the maritime stakeholders make the effort to fix Federal policy and put the U.S. Flag in fighting trim it’s only a matter of time before a Hunt or a Schneider–or, yes, a CSX–will do a deal with, or acquire, a “Blue Water Transport”.   The press release will tout…

“a new deal that gives partners a platform to accelerate the transition of traditional  land mode traffic to cost effective, environmentally friendly intermodal transportation with service that is competitive with coastal corridor moves along the congested interstate highway.”

It will be the starting shot.   Pbea

Will Ports Be Ready? (Part 2)

In Environment, Ports on September 15, 2009 at 5:14 pm

Will U.S. ports, especially those on the Atlantic and Gulf coasts, be ready to operate in the changing domestic and international commercial environment? With major shifts on the way the ports that adequately prepare will be the ones to maintain and gain market share.  The change in environment—at local, national and global levels—will be a constant factor not easily addressed.

Environmental Concerns
From 2002 to 2007 many ports found it necessary to have a proactive environmental policy to get community approval to operate and expand.  Most major ports experienced double digit volume increases that resulted in problems with surrounding communities over increasing road congestion, noxious air emissions, and safety concerns.  In the San Pedro Bay ports communities voiced their anger to local politicians and in short order port projects were put on hold.

With the collapse of global trade, the pressure subsided as the number of containers and trucks decreased.  However, all indications suggest that world trade will rebound and cargo volumes will double by 2040.  Community concerns and political problems will re-emerge as well.  Other environmental issues may also emerge to affect port business practices—consumption of non-renewable resources, bio-hazards, and concerns about species redistribution that may persist even with ballast water regulation.  A proactive policy may again be a necessity for certain major ports if their environmental performance is seen as problematic for their neighbors.

Green house gases (GHG) are probably going to be the biggest environmental game changer for businesses as climate change policy is put in place and businesses calculate the added expense.  The U.S. contributes 20 percent of the world’s emissions from burning fossil fuels; India contributes 4 percent.  Will there be a carbon tax or cap and trade policy established worldwide?  What will be the cost penalty for oceanborne cargo here or worldwide?  How fast will engine room and terminal equipment technology adapt?  Those questions await answers and clarification.

As climate change concerns and political acceptance addressing those concerns increase, the pressures to aggressively address GHG will be enormous.  (That is likely notwithstanding the relative environmental and energy per-ton/mile efficiency of the marine and rail elements of MTS related transportation.)  These issues will have even greater impacts on the cost of ports, particularly if dealt with retroactively.

Next: Consumer demand and the bottom line.

T. H. Wakeman

Our Turn to Pay the Freight

In Infrastructure, Surface Transportation Policy on September 9, 2009 at 5:21 pm
PBS "Blueprint America" Documentary:  "Keep on Trucking?"

PBS "Blueprint America" Documentary: "Keep on Trucking?"

Blueprint America is the PBS infrastructure series.  The series is one of the best I have seen on the subject, not that there is much competition on TV in this category.  Keep on Trucking? has the virtue of being taped in my Garden State, where men are men and women are truck drivers who train the men.

The segment reported by Miles O’Brien covers our reliance on trucking and the 50+ year old interstate highway model.  He reports on the benefits and limitations of the rail freight system.  He covers how trucking and rail compete and cooperate (“the term of art is intermodal”).  He introduces community concerns via New Jersey’s Ironbound, which is adjacent to the Newark container terminals.  And O’Brien overlays the  fact that Congress will have to replace SAFETEA-LU and face the political conundrum of taxes, with Jim Oberstar’s (D-MN) foot on the House accelerator.

Part of the value of this particular “…Trucking?” segment, as one individual awkwardly said, is the need “to look at the network of this nation as a whole” and “how these two modes can be interfaced in the most efficient way”.   “A freight relay if you will,” Miles O’Brien added, “… trains and trucks each doing the part of the job they do most economically, then passing the baton.”

Of course that topic deserves a 24-minute segment of its own…but not one limited only to two surface modes.

Predictably marine transportation was not mentioned.  Considering the key points made in the piece the marine highway should have been included in the “network of this nation.”  The water mode applies to the ideas of intermodal operation, efficiency, congestion mitigation, and the need to think outside the 1950s highway model.  As one voice noted, “it’s about retooling the freight infrastructure so American business can compete in the global marketplace.”  Not about maintaining the primacy of road and rail, one might add.

Miles O’Brien alluded to the fact that arriving at a new policy will not be easy.  “There is no love lost in the fight over infrastructure dollars.”  Bill Graves of the American Trucking Association asserted that the public shouldn’t be “deluded” that rail is “the answer”…the Association of American Railroads‘ ad campaign notwithstanding.

O’Brien expressed no particular confidence that Congress will adopt a new model.  He spoke of an American consumer trait, taking things for granted–”plentiful, high quality goods, delivered fast and cheap”–and made possible seemingly “like magic.”  Not willing to make it easy on voter or legislator, he said “it is actually about planning ahead and making big investments.”  The generation that built the interstate system did it.  “Now it may be our turn to pay the freight.”   Pbea

Rail Shows the Way to the Water

In MTS Policy on September 3, 2009 at 8:27 am
RiverRailRoad

Closing image from a CSX commercial

This is a compelling image but not necessarily in the way intended by the folks at CSX.

For good reason I’ve heard many people credit CSX for the quality of its television commercials.  Norfolk Southern and the collective Class I industry also have put up very effective ads that have been running for a few years.   The message is exceedingly simple.  On a ton-for-ton basis rail is a fuel efficient and low carbon-footprint way to move lots of freight now traveling on the highways.

The ads are shown repeatedly in this D.C. market because this is where policy makers and influencers are.   The railroads want Congress to approve a targeted 25%  tax credit for their infrastructure investments.  They also know that new climate and energy policies could affect their bottom line.   So the industry is investing  millions to instill a favorable public image.  It is working.  Green groups are lobbying for more freight trains and fewer trucks.

As an admirer of the ad campaign I use this image in presentations about the need for marine highway policy.  The ad accomplishes two things for those of us who think that the even greater efficiency of marine transportation deserves equal attention.

First, it graphically reveals the availability of waterside capacity for the surface transportation system.  It is hidden capacity, metaphorically speaking, when early in the commercial the focus is on containers lifted from the congested roadway to the nearby train.  Then our last view is of a waterway so uncongested as to be empty of vessels.

Second, it serves as a challenge to the maritime industry, which  can top the railroad claims about fuel efficiency.   The tug and tow companies have undertaken a modest general ad campaign to carry that message.  However that AWO effort is the only one.  The present and future marine highway–including the capacity of ships to carry trucks themselves–remains a hidden asset because the larger industry isn’t telling the story.

There is no comparing the resources of the rail and barge industries.  So don’t look anytime soon for a comparable televised promotional effort by vessel operators.  Nor have I seen signs that the broader maritime sector is ready to pool resources to promote the marine highway to Washington.

If the public and the policy makers are to learn about the advantages of marine transportation and the potential for addressing some of the nation’s growing transportation challenges it will happen when the maritime sector comes together to carry that message.   The railroads can’t be counted on to place more subliminal maritime messages on TV.  Pbea

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