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

Congestion Mitigation Congestion Mitigation Through Improved Freight Through Improved Freight

Efficiency:Efficiency:Partnering with Business for a Partnering with Business for a

PositivePositive Solution Solution

Paul A. BelellaPaul A. Belella

PrincipalPrincipal

Delcan CorporationDelcan Corporation

October 17, 2007October 17, 2007

Congestion Mitigation Through Improved Freight Efficiency

ContentsContents

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


What We’re Up AgainstWhat 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


How We’ve Chosen to Deal With ItHow 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


Why That’s Not EnoughWhy That’s Not Enough

The trucking realityTrucks 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 axiomsA 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


Competit

iveness

Improved

Business

Environment

Improved

Business

Environment

Greater

Attractiveness

Greater

Attractiveness

Enhanced

Quality of

LifeEnhanced

Quality of

Life

A Positive Alternative: Working in PartnershipA Positive Alternative: Working in Partnership

Goal: Trip Reduction

Freight Carrier Benefits

Impro

ved

Efficiency

Impro

ved

Efficiency

Higher

Profit

ability

Higher

Profit

ability

Better L

abor

Conditions

Better L

abor

Conditions

Less Traffic

Volume

Less Traffic

VolumeReduced

Congestion

Reduced

Congestion

Better Safety

&

Environment

Better Safety

&

Environment

Public B

enefits

Lower

PricesLower

Prices

Bette

r SC

Perfo

rman

ce

Bette

r SC

Perfo

rman

ce

Reduce

d

Transp

ort

CostsRed

uced

Transp

ort

Costs

SC Benefits


A Positive Alternative: The IFTWG ExampleA Positive Alternative: The IFTWG Example

Industry and government working togetherAn 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


A Positive Alternative: The C-TIP ExampleA 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


A Positive Alternative: Applying C-TIP with RailA 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



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


A Positive Alternative: Applying C-TIP Near a PortA Positive Alternative: Applying C-TIP Near a Port


A Positive Alternative: Applying C-TIP Near a PortA 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

Serve

r


Where We Go from HereWhere We Go from Here

Obtain funding for Kansas City demonstrationDeploy system

Conduct operational test & evaluation

Explore applying the C-TIP concept in a Port CityFormulate a partnership & Identify needs and expectations

Adapt concept of operations to local conditions

Conduct pilot deployment

Identify other mutually beneficial regional optionsEstablish a body of professionals to define opportunities

Promote creativity and collaboration to evaluate alternatives

Adopt a new mindset towards freightRemember that more freight = economic development

Remember that more efficient freight = improved quality of life

Remember that more collaboration with freight = better solutions

Documents

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