FREIGHT EFFICIENCY STRATEGIES - California … Efficiency Strategies White ... inefficiencies in the on-road trucking and maritime ... , and develop common performance and efficiency

FREIGHTEFFICIENCYSTRATEGIES

March2016 AWhitePaperSeriestoInformtheCaliforniaSustainableFreightActionPlan

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FreightEfficiencyStrategiesWhitePaperSeriesIntroductionInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz)aswellastheCaliforniaStateTransportationAgency(CalSTA),theCaliforniaEnvironmentalProtectionAgency(CalEPA),andtheNaturalResourcesAgency(CNRA).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.Thecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmanyindividualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensusonthepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinionorpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedtoinformandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightActionPlan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattemptedtoincludedissentingopinionsandareasofconcurrencewheretheymayexist.Abstractsforeachpaperisincludedbelow.Topic#1:FundingforFreightInfrastructureandCleanEquipmentLeadAuthors:WillKemptonandGarthHopkins,CaliforniaTransportationCommissionThewhitepaperprovidesanoverviewoftheneedforadditionalfundingforbothcontinueddevelopmentofCalifornia’sfreightinfrastructureandexpansionofcleanequipmentforfreight.ThepaperadvocatesforthecontinuationofthesuccessfulTradeCorridorsImprovementFund(TCIF)andtheGoodsMovementEmissionReductionProgram(GMERP).Asadditionalfundingforfreightimprovementsisidentified,bothTCIFandGMERPshouldbecontinuedunderanewprogramtitled“TCIF/GMERP-PhaseII”.ThewhitepaperalsolistssuggestedselectioncriteriaandpossibleimprovementsforaTCIF/GMERP-PhaseIIprogram.

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Topic#2:StrategiestoMaximizeAssetUtilizationintheCaliforniaFreightSystem:PartI–BackgroundandGeneralRecommendationsLeadAuthor:MiguelJaller,UniversityofCalifornia,DavisThispaper(PartIofatwo-partseries)providesabriefoverviewofthefreightsystem,withanemphasisonkeystakeholders,theirrolesandinteractions,andimplicationsassociatedwiththetypesoffreightmovementsandlayersoftheeconomy.Moreover,theworkdiscussesmajorinefficienciesintheon-roadtruckingandmaritimesectors,wherecongestionoftenimpedesmaximizingassetutilization.Thepaperpresentsanumberofgeneralrecommendationstoimprovefreightefficiency;whilespecificstrategiesarediscussedinthesecondpartofthisseries.Generalrecommendationsinclude:conductingsoundfreightplanningatalllevelswithemphasisonurbanfreight;identifyingbehaviorsthatneedtobefostered,ormitigated,amongthevariousstakeholders;developingparticipatorystakeholderengagement;fosteringinformationsharing;developingplans,agreementsandplatformsforactiveconversationtoaddresslaborissues;investinginworkforcedevelopment;andinvestinginresearchandcontinuedimprovementefforts.Inaddition,thispaperacknowledgesthefactthatitisnotlikelythatanysinglestrategywillresultinsignificant-enoughimprovementsonitsown.Theinherentlycomplexnatureofthesystemwillrequireanequallycomplexsetofsolutions.StrategiestoMaximizeAssetUtilizationintheCaliforniaFreightSystem:PartII–StrategiesLeadAuthor–MiguelJaller,UniversityofCalifornia,DavisThefreightsystemismulti-facetedandtherecouldbeamyriadofpotentialstrategies;however,thepaper(PartIIofatwo-partseries)focusesonthosethatcouldimproveorhelpmaximizeassetutilizationbyfosteringcollaborativelogistics(CL)practicesand/orfreightdemandmanagement(FDM).Thestrategiesanalyzedinclude:receiver-ledconsolidation;voluntaryoff-hourdeliveryprograms;developmentofanintegratedChassisPoolofPools;integratedsystemfordrayservices;loadmatchingandmaximizingcapacity;improvingTrafficMitigationFeeprograms;implementingadvancedappointmentandreservationsystems;andrelaxingvehiclesizeandweightrestrictions.Thepaperdiscusseseachstrategyintermsofitsnature(CLorFDM);thegeographicscopeoftheinefficiencyorimplementation;theexpectedbenefits;levelofimplementationeffort/time/cost;theprimarystakeholderstargeted;thestakeholders’roleintheimplementation/planningeffort;thepotentialforunintendedconsequences;andbarriersforimplementation.Theresearchshowsthatthereisgreatvariabilityinthelevelofdataavailable(e.g.,researchreports,operationalreports,implementationprograms,pilottests)toconductdetailedassessments,highlightingtheneedforadditionaleffortstobeabletoestimatethemagnitudeofthepotentialeffectsofeachstrategytoreduceinefficiencies(e.g.,congestion/delays,environmentalemissions,safety,andeconomicimpacts,andcosts,amongothers).However,stakeholderengagementduringtheresearchprocessallowedforaqualitativeassessmentbasedonempiricalevidencefromon-goingefforts.

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Topic#4:PlanningandPolicyLeadAuthors:TomO’Brien,CaliforniaStateUniversity,LongBeachIncreasingtradevolumesatfreighthubsandnodes,includingmaritimeports,airports,intermodalfacilities,andbordercrossings,providesignificanteconomicbenefitbutalsosocialcosts.Increasedvolumeoftradecreatesjobs,generatesStateandlocaltaxrevenue,andcreatespositiveexternalities.Hightradevolumesalsoimposecosts,includingvehiclecongestion,collisions,environmentalcosts,andincreasedinfrastructuredevelopmentandmaintenanceandpreservationcosts.Thiswhitepaperexploresthewaysthatstatedepartmentsoftransportationcanenhancetheirpolicyandplanningefforts—andtheoutreacheffortsthatinformthoseprocesses—tobetterimplementinfrastructure,operational,andtechnologybasedmodernizationstrategiestoimprovesystemproductivityandefficiency.Topic#5:OperationalModernizationatDistributionNodesLeadAuthors:TomO’Brien,CaliforniaStateUniversity,LongBeachThiswhitepaperidentifiesarangeoftechnologicalandprocess-drivenopportunitiesthatholdthepotentialformodernizingdistributionnodestopromotefreightefficiencywhilealsoimprovingsafetyandairqualitystandards.Topromoteimprovedtruckaccessatdistributionnodes,theresearchinvestigatedtheuseoftruckplatooning,virtualcontaineryards,design-basedguidelines,andweigh-in-motionstrategiestoimprovefreightefficiency.Theresearchalsoexploresstrategiesfocusedonestablishingenergyindependenceatmarineterminalsthroughtheuseofenergymicrogrids.Topic#6:InformationTechnologyLeadAuthor:GenevieveGiuliano,UniversityofSouthernCaliforniaThiswhitepaperexploresthepotentialtoimprovedataandinformationsystems,bothpublicandprivate,toincreasesystemefficiency.ItpresentsrecommendationsforusinginformationtechnologysolutionstoincreasetheefficiencyofCalifornia’smultimodalfreightsystem.Theserecommendationsresultedfromaconsensusbasedprocessbyworkinggroupcommitteemembers.Weaddresstwoproblems:informationproblemsinthegoodsmovementsupplychain,andinformationproblemsinstatewidetrucking.Regardingthegoodsmovementsupplychain,werecommendthefollowingstrategies:1)accelerateandexpandtheFRATISprogram;2)implementports-wideappointmentsystemsatthestate’smajorports;3)developandimplementatransparentsupplychainwideloadtrackingsystem.Regardingstatewidetrucking,werecommendthefollowingstrategies:4)statewidesmartparkingsystem;5)“push”freightinformationsystem;6)statewidefreightinformationplatform;7)borderregionITSstrategy;and8)freightfocusedtrafficmanagement.ThefullwhitepaperscanbedownloadedontheCaliforniaSustainableFreightActionPlanwebsite,foundhere:http://www.casustainablefreight.org/Thetablebelowsummarizesrecommendedstrategiesfromeachofthewhitepapers.

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WHITEPAPERRECOMMENDEDSTRATEGIESTABLEWHITEPAPERTITLE THEMES STRATEGIESFundingforFreightInfrastructureandCleanEquipmentLeadAuthors:WillKemptonandGarthHopkinsCaliforniaTransportationCommission

I.AllFederalandStatefreightfundingadministeredbytheStateshouldcontinueusingthesuccessfulTCIFmodel”.

II.EnsureTCIF/GMERP-PhaseIIFundsareLeveragedWithOtherFundingSources

III.DevelopaLong-TermFundingProgramSpecificallyforFreightInfrastructureandCleanEquipment

IV.BuildontheGMERPProgramwiththeDedicationofCap-And-TradeFundsforFreightInfrastructureandCleanEquipmentWhichWillReduceFreightEmissions

V.MinimizetheComplexityofStateAdministeredFreightFundingPrograms

VI.ImproveExistingAccessInfrastructuretoCalifornia’sMajorPortFacilities

VII.UnderwritePresentCapitalExpensesInAnticipationofFutureBenefitsMaximizingAssetUtilization:GeneralRecommendationsLeadAuthor:MiguelJallerUniversityofCalifornia,Davis

A.CargoandVehicleMovements

B.InefficienciesintheFreightSystem

C.KeyStakeholders,theirRolesandInteractions

I.HoursofServiceRules–TheStatemustconsiderthepotentialnegativeimpactthattheHoursofServicerulescanhaveforfreightefficiency,becausetheenforcementoftherestartprovisionsoftheFinalRulewouldintroducesignificantinefficienciesintheCaliforniaFreightSystem.

II.DriverShortages–TheStatemustconsiderlaborshortagesinthetruckingindustry(e.g.qualifiedtruckers).EvaluateWorkforceDevelopmentStrategies

III.ConductsoundfreightplanningatalllevelswithemphasisonurbanfreightandstrategicfreightcorridorsIV.Planningeffortswillallowidentifyingthetypesoffreightbehaviorsthatneedtobefosteredormitigatedamongthevariousstakeholders.V.ParticipatorystakeholderengagementVI.Developingappropriatestrategiesrequiresinsightsanddetailedanalysisofhoweachsupplychainoperates.VII.Informationsharingmaynotonlybeincentivizedforplanningpurposes,butalsotorecognizethevalueofinformationasaninputandoutputtooperationalprocesses.Informationsharingmayalsoinvolveactiveanddynamicfreightdatacollectionschemes.

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MaximizingAssetUtilization:StrategiesLeadAuthor:MiguelJallerUniversityofCalifornia,Davis

A.ImprovingPerformanceoftheDistributionEconomy

I.VoluntarilyOff-HourDeliveries(DemandManagement):Researchtheeffectsandchallengesofexpandingoff-hourdeliverythroughincentiveprograms.II.Receiver-LedConsolidation(CollaborativeLogistics):Researchanddevelopincentiveprogramstofosterthedevelopmentofdelivery(receiver-led)consolidationinurbanareas.III.FreightParking:Improvefreightparking/loading/unloadingareamanagementandavailability

B.InternationalGateways

IV.ChassisPoolofPools(C-PoP)IntegratedSystem(CL):Workwithstakeholderstosupportthedesign,development,andimplementationofanintegratedchassispoolsystem.V.ImprovingTrafficMitigationFeePrograms(DM):Workwithstakeholderstoresearchinformationsystems,developpricingschemes,anddevelopcommonperformanceandefficiencyindicatorsregardingFreightDemandStrategies.VI.ImplementAdvancedAppointment/ReservationSystems(DM):ResearchandassessthecapabilityofflexibleappointmentsystemstoreducecongestionandimproveefficiencyatCaliforniaports.VII.DevelopanintegratedsystemforDrayageoperationsandServices(CL):ResearchanddevelopanintegratedinformationsystemthatiscompatiblewithexistingservicessuchasFRATIS(FreightAdvanceTrafficInformationSystem).VIII.(a).ReducingtotaltransactionsandMaximizingCapacity(CL):Supporttheplanningandresearchofpotentialapplicationsofloadmatchingservices.VIII(b).ReducingtotaltransactionsandMaximizingCapacity(CL):Researchthedevelopmentofanincentiveprogramtoincreasethelikelihoodofmatchingorprovideaninformationplatformthatdecreasesemptyandnon-revenuegeneratingtrips.IX.Relaxingvehiclesizeandweightlimits(DM):Investigatetheopportunityforincreasedtrucksizeandlengthandidentifycorridorswhereitwouldbepossibletoliftcurrentrestrictions.

PlanningandPolicyLeadAuthor:TomO'Brien–CaliforniaStateUniversity,LongBeach

A.StrategicStatewideandInterregionalFreightPlanning

I.FreightEducation:Formpublic-privatepartnershipstoimplementpubliceducationinitiativesthatcommunicatetheimportanceoffreightincompellingways.

B.TruckRoutesandIntegratedCorridorManagement

II.Truckroutes:Researchthestate'sabilitytoprovideinformationcurrentlocaltruckroutesthroughoutthestatetoavoidadverseimpactstocommunities.III.Assessingnationalbestpractices:Looktootherstatesforexamplesoftheirexperienceswithintegratedcorridormanagement,environmentalstreamlining,anddatacollection

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OperationalModernizationatDistributionNodesLeadAuthor:TomO'BrienCaliforniaStateUniversityLongBeach

A.EnergyEfficiencyatMarineTerminals

I.EnergyEfficiencyatMarineTerminals:UseSmartMicroGridstoincreaseenergyreliabilityatmarineterminalsandpromotetheuseofalternativeenergyinthesystem.Statemaypotentiallyneedtoregulatecost.

B.ImprovedTruckAccessatNodes

II.TruckPlatooning:MitigatebottlenecksatportsthroughTruckPlatooningtopromoteefficientuseofroadways.III.VirtualContainerYards:Promotetheuseofvirtualcontaineryardstoincreaseemptycontainerinterchangebetweenimportersandexporters;reducetheincidenceofuncoordinatedemptytripsbetweenimportwarehousesandports.

C.Design-basedGuidelines

III.Intermodalfacilities:Implementdesignbasedguidelinesinordertoconsolidatedeliveriesacrossvendorsandencouragetheprevalenceofintermodalfreightfacilities.

InformationTechnologyLeadAuthor:GenevieveGuilianoUniversityofSouthernCalifornia

A.InformationProblemsintheGoodsMovementSupplyChain

I.AccelerateandExpandtheFRATISProgram:EstablishpublicprivatepartnershipsthatwouldintegrateandmanagefreightmovementandotherdataandprovideoperationandmaintenancesupporttofacilitatetheestablishmentofFRATISatalargerscale.II.Implementasystem-wideappointmentssystematCalifornia'smajorseaports:researchthefeasibilityofanappointmentsystemfortruckgateentriesanddocktransactionsthatisuniversalacrossallportterminalsinagivencomplex.III.Designafullytransparenttrackingsystemacrossthesupplychain:Researchtheeffectsoftrackingsystemsonloadmatching;trippredictability,anddrayageturntimes.

B.InformationProblemsinStatewideTracking

IV.DevelopandImplementastatewideparkingsystemandincreasethesupplyoftruckparking:Implementanactionplantointegrateandexpandtruckparkingreservationsystemsinthestate.V.Developandimplementa"push"freighttrafficinformationsystem:researchfeasibilityofcorridorspecifictrafficalertsdesignedfortruckers.VI.Developandimplementastatewidefreightinformationplatform:Integratestateandregionaltruckroutedataandpresentitinanaccessibleformat.VII.ImplementtheBorderRegionITSStrategyVIII.FreightFocusedTrafficManagement:DevelopandImplementfreightprioritytrafficmanagementinhighvolumetruckcorridors

FUNDINGFORFREIGHTINFRASTRUCTUREANDCLEANEQUIPMENT

March2016 AWhitePaperfromtheFreightEfficiencyStrategiesDevelopmentGroup

LeadAuthors:WillKempton,CaliforniaTransportationCommissionGarthHopkins,CaliforniaTransportationCommissionWorkingGroupMembers:AnnieNam,SouthernCaliforniaAssociationofGovernments;ChrisShimoda,CaliforniaTruckingAssociation;CynthiaCory,CaliforniaFarmBureauDavidLibatique,PortofLosAngeles;FranInman,MajesticRealty;KerryCartwright,PortofLosAngeles;LaDonnaDiCamillo,BNSFRailroad;MikeJacob,PacificMerchantShippingAssociation;PatSmith,HarrisRanch;WesLujan,UnionPacificRailroad;andChristinaCasgar,SanDiegoAssociationofGovernments

AbouttheFreightEfficiencyStrategiesDevelopmentGroupInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.DisclaimerThecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmanyindividualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensusonthepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinionorpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedtoinformandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightActionPlan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattemptedtoincludedissentingopinionsandareasofconcurrencewheretheymayexist.TheU.S.GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.NordoesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.GovernmentandtheStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.

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TABLEOFCONTENTSEXECUTIVESUMMARY..................................................................................................................iii

Abstract..........................................................................................................................................1

Background....................................................................................................................................1

Proposition1B(2006)Overview................................................................................................2

TCIFOverviewasPartofProposition1B....................................................................................3

Discussion......................................................................................................................................6

TCIF-PhaseIIShouldIncorporateManyoftheCriteriaIdentifiedinNewFederalTransportationAct.....................................................................................................................6

CurrentStateProposalsRegardingFreightFunding..................................................................7

TCIF/GMERP-PhaseII.................................................................................................................8

Recommendations.........................................................................................................................9

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FundingforFreightInfrastructureandCleanEquipment

EXECUTIVESUMMARYThe2007GoodsMovementActionPlanpreparedbytheCaliforniaDepartmentofTransportation(Caltrans)in2007establishedaclearconnectionthatfreightinfrastructureinvestmentsandfreightemissionsareoftenrelatedissues.Thiswasconfirmedinthe2014CaliforniaFreightMobilityPlanandtheon-goingSustainableFreightStrategy.

ThepassageofProposition1Bor“Prop1B”in2006provided$20billioninadditionalfundingforCalifornia’stransportationinfrastructure,ofwhich$3.1billionwasdedicatedtotheimprovementoftheState’sfreightnetworkincluding$2billionadministeredbytheCaliforniaTransportationCommission(CTC)specificallydedicatedfortheTradeCorridorsImprovementFund,or“TCIF”.Inaddition,theCaliforniaAirResourcesBoard(ARB)administeredatotalof$1billioninProp1BfundsusedfortheGoodsMovementEmissionReductionProgram(GMERP).ThepurposeofGMERPistoprovidegrantfundstolocalagencies(suchasairdistrictsandseaports)toquicklyreduceairpollutionemissionsandhealthriskfromfreightmovementalongCalifornia'stradecorridors.ThesefundswereinstrumentalinensuringCaliforniamaintainedcompetitivewithotherstates.

TheTCIFandGMERPweretwoseparateprograms,butnotdisassociated.TheTCIFcriteriawasdevelopedbytheCTCwithextensiveparticipationandinputfromregionalstakeholders;andtheGMERPcriteriawaspreparedbytheARB.Theissueofinfrastructureinvestmentandairqualityinvestmentarestronglylinked.Howthatlinkageisassessedandfinanced,isacomplexpolicydecision.ThispaperassertstheseparatebutassociatedfundingapproachasemployedwithProp1BthroughtheTCIF/GMERPprocessisagoodstartingpointforfuturefundingprograms.

Therecentfive-year$305billionfederaltransportationreauthorizationknownas“FixingAmerica'sSurfaceTransportationAct”,or"FASTAct"allocatedfundingspecificallyforfreightprojects.Atotalof$10.8billioninfundshasbeenspecificallydirectedtoimprovethenationalfreightinfrastructure:$6.3billioninfreightformulafundsintendedtotargetinvestmentsonanewly-designated“NationalHighwayFreightNetwork”and;$4.5billionforacompetitivegrantprogramprioritizing“nationallysignificantfreightandhighwayprojects”forurbanandruralareas.TheU.S.DepartmentofTransportationrecentlyreleasedtheNoticeofFundingOpportunity(NOFO)toexpeditetheawardthefirstroundofthecompetitivegrants.

ThefundingavailablethroughTCIFwasabletoleverageanadditional$5.2billioninpublicandprivatefunds.TheTCIFandGMERPprogramsarebothmodelsthatshouldbereplicatedforfuturefreightfundingprogramsinCalifornia.ThefirstopportunitytousetheTCIFandGMERPmodelsfor“TCIF/GMERP-PhaseII”willbewithanapproximate$582millionindedicatedfederalformulafreightfundingtobeallocatedtoCaliforniaoverthenextfiveyears.

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InJanuary2016,theGovernorintroducedhisproposedbudgetforfiscalyear2016-17whichincludesatotalof$211millionfortradecorridorimprovements.SenatorBeallandAssemblyMemberFrazierhavebothintroducedseparatelegislationthatwouldprovidefundingforfreightinfrastructureimprovements.WithrespecttothenextgenerationofGMERP-likefundingfocusedonreducingemissions,twootherbillshavebeensubsequentlyintroducedrelatedtofreightfunding:AB1780(Medina)wouldestablishtheSustainableTradeCorridorsProgramusing25%oftheannualCapandTradeproceeds;andAB1657(O’Donnell)wouldestablishtheZeroandNear-ZeroEmissionIntermodalTerminalsProgramandthePortBuildingandLightingEfficiencyGreenhouseGasReductionFundProgram.

TheFundingforImprovingExistingInfrastructuresubgrouprecommendsthattheTCIF/GMERPmodelbeusedforallocationoffuturefreightinfrastructurefunding,andthatCapandTradeproceedscontinuetobeusedtofunddemonstrationprojectsthataccelerateuseofadvancedtechnologythatresultsingreenhousegasandcriteriaemissionreductionsfromfreight.ATCIF/GMERP-PhaseIIprogramwouldtakethepositiveaspectsofthe2006TCIFandGMERPprogramsandincludeprojectselectioncriteria,whichwillcontinuetomirrorthetriplebottomlinegoalstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia'sfreightsystemasstatedintheGovernor’sExecutiveOrderB-32-15.

SB1228(Hueso,2014)addedlanguagetotheStreetsandHighwaysCodewhichcontinuestheexistenceoftheTCIFprogram.Suggestedperformancemeasures/selectioncriteriaforTCIF-PhaseIIarediscussedonpage10ofthispaper.

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Abstract“IdentifyinfrastructureinvestmentsthatwillimproveCalifornia’sfreightsystemtoincreaseefficiency,competitivenessandenvironmentalsustainability.Estimatetheeconomic,airemissionsandefficiencybenefitsfromsuchinfrastructureinvestmentsanddevelopanevaluativeframeworkforhowtoweighthesebenefitsaspartofanintegratedimplementationstrategy.Identifynecessaryprivateandpublicsectoractionsandpolicies,includingfundingandfinancingstrategiesthatareconducivetovariousinfrastructureinvestmentsand/orefficiencymeasures.TheseactionsandpoliciesshouldfocusonachievingtheobjectivesoftheGovernor’sExecutiveOrdersandthedesiredoutcomesofthoseOrderstosupportenvironmental,energy,mobility,safetyandeconomicgoals.”

BackgroundTheGovernor’sJuly2015ExecutiveOrderB-32-15identifiedthatCalifornia’scomplexfreighttransportationsystemisresponsibleforone-thirdoftheState’seconomyandjobs,withfreight-dependentindustriesaccountingforover$700billioninrevenueandoverfivemillionjobsin2013.

BothpublicandprivatesectorshavealonghistoryofinvestmentinCalifornia’sfreightsystemtocreatethenation’smostdiverse,highestcapacityfreightnetworkthatnotonlylinksthestatetothenationalandglobaleconomiesbutalsoservesasthenation’sprimarygatewaytothePacificRim.GiventhatCaliforniahasapopulationofover38millionpeople,itshouldalsoberecognizedthataconsiderableamountoffreighttrafficstayswithinthestate’sborders.

However,theinvestmentinCalifornia’sfreightinfrastructurehasnotkeptpacewiththenecessaryimprovementstomaintaineconomiccompetitiveness,addressthestate’senvironmentalgoals,orquitesimplytomeettheincreasedcapacitydemands.ThishasbeenarticulatedbytheCaliforniaDepartmentofTransportation(Caltrans)intheDecember2014CaliforniaFreightMobilityPlan(CFMP).SubsequentupdatestotheCFMPshouldcontinuetonoteCalifornia’suniquefreightneeds.

CongestiononCalifornia’ssurfacetransportationsystemisanimpedimenttoeveryCalifornianwhichincludesthemobilityofthetrucksmovingfreightonboththehighwaysandlocalroads.Thiscongestionincreasesvehicleemissionsandreducesoureconomiccompetitiveness.Forexample,theSouthernCaliforniaAssociationofGovernments(SCAG)draft2016RegionalTransportationPlan/SustainableCommunityStrategy(RTP/SCS)statedthatdriverwagesandfuelcostsrepresent50percentoftotalmotorcarriercosts,andtrucksidlingonheavilycongestedroadsincreasetheirtraveltimewhichhasamajorimpactonthebottomlineofthetruckingindustry.

AccordingtoanApril2014reportpreparedbytheAmericanTransportationResearchInstitutetitled:CostofCongestiontotheTruckingIndustry,theLosAngelesmetropolitanareawasidentifiedasleadingthenationincoststothetruckingindustrycausedbytrafficcongestion

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withnearly$1.1billioninaddedoperationalcoststotheindustry.Atthenationallevel,thereportalsohighlightedthefollowing:

• In2013,increasedcoststothetruckingindustryduetocongestiondelaystotaled$9.2billion.Totaltruckdelayin2013was141millionhours,equatingtoover51,000driverssittingidleforaworkingyear.

• Congestionwasconcentratedinurbanareaswith89percentofcostsincurredononly12percentofthenationalInterstateHighwaySystem.

Railproductivityisalsochallengedbycapacitychokepointsalongcriticalcorridorsandatintermodalterminalsasfreightdemandgrows.InSouthernCalifornia,forexample,traintrafficisprojectedtomorethandoubleby2040,requiringsignificantimprovementstorailterminalcapacity,includingtheconstructionofon-dockandnear-dockintermodalterminals.Whendesiredpassengertraingrowthistakenintoaccount,therewillbeneedsfornewraillinecapacityasfreightrailtrafficoftenshareslimitedtrackcapacitywithpassengerrailtraffic.Additionally,gradecrossingscanbethesourceofsignificantdelaytothetravelingpublicandalsoposeaseriousriskofcollisionsbetweentrainsandvehicles.

AccordingtotheSanDiegoAssociationofGovernment(SANDAG)-Caltransstudy,2007Update:EconomicImpactsofBorderWaitTimesintheSanDiego-BajaCaliforniaBorderRegion,thebordertrafficcongestionanddelayscosttheU.S.andMexicaneconomiesanestimated$7.2billioningrossoutput(valueofgoodsandservicesproducedannually)andmorethan62,000jobsin2007.Sincethisinitialgroundbreakingstudy,otherstateshavecompletedsimilarstudieswithsimilarresults.SANDAGandCaltranshavejustcontractedfora2016updateoftheBorderWaitTimeStudywhichwilladdressbothwaittimeimpactsandemissionsimpacts.

Proposition1B(2006)OverviewProposition1B,or“Prop1B”wasapprovedbyCaliforniavotersin2006andauthorizedthestatetoissueapproximately$20billioningeneralobligationbondsforspecificprogramstorelievecongestion,facilitatefreightprojects,improveairquality,andincreasethesafetyofthestate’stransportationinfrastructure.TheCaliforniaTransportationCommission(CTC)wasassignedresponsibilityforprogrammingandallocatingapproximately$12billionofthetotalamountoffundingavailablethroughthisbondmeasure.

California’sTCIFprogramisthemostrecentexampleofsuccessfulstateinvestmentinfreightinfrastructure.Atotalof$2billioninvoterapprovedtransportationinfrastructurebondsin2006wereprovidedforcapitalimprovementstokeyfreightfacilities.The$2billioninTCIFfundingwasusedtoleverageanadditional$5.2billioninmatchingfundsfromavarietyofpublicandprivatesourcestodeliverandconstruct81high-priorityseaport,railroadandhighwayprojectsforatotalinvestmentof$7.2billionaccordingtotheDecember2014documenttitled:CaliforniaFreightMobilityPlanpreparedbyCaltrans.

Inadditiontothe$2billioninTCIFfundsmadeavailablethroughProp1B,SB88(2007)allocated$1billionofProp1BfundstotheARBtocreatetheGoodsMovementEmissionReductionProgram(GMERP).ARButilizedthesefundstomaximizetheemissionreduction

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benefitsandachievetheearliestpossiblehealthriskreductionincommunitiesheavilyimpactedbyfreightactivities.TheGMERPfundingresultedinthepurchaseofover13,000piecesofequipmentthrough2015resultinginareductionofover78,000tonsofNOxand2,200tonsofparticulatematter(PM).GMERPprojecttypesincluded:trucksincludingthoseservingportsandrailyards,freightlocomotives,electrificationofshipsatberthatports,cargohandlingequipment,transportrefrigerationunits(TRUs)andharborcraft.

TCIFOverviewasPartofProposition1BAtotalof$2billionwasdedicatedfortheTCIFprogramoutofthe$12billionavailableforProp1BprogramsadministeredbytheCTC.TheprimarypurposeofTCIFwastoimprovefreightmovementalongtradecorridorswhilereducingdieselparticulatematterandotherpollutantsthatimpactairquality.RecognizingthecriticalfreightneedsinCalifornia,theCTCprogrammedandallocatedanadditional$500millionfromtheStateHighwayAccountfortheTCIFprogram.

FundsintheTCIFwereavailabletotheCTCtoallocateforinfrastructureimprovementsalongfederallydesignated“TradeCorridorsofNationalSignificance”inthestateoralongothercorridorswithinthestatethathadahighvolumeoffreightmovement.GiventhemandatesofProp1B,theCTCheldanumberoflisteningsessionsthroughoutthestateinthefallof2007toseekinputfromtransportation,logisticsandenvironmentalstakeholdersonhowtoimplementtheTCIF.TheselisteningsessionsallowedstakeholderstobriefthetransportationCommissionersonkeygoodsmovementissueswithintheirregionandtocommentonthekeyelementsofimplementingtheTCIF,includingwhichcorridorsshouldbeconsideredofstatewideimportance;thecriteriaformakingseaport,airportandrailinvestments;therelativeweightingofvelocity,throughput,reliability,congestionreliefandemissionreduction;andthetimeframeinwhichinvestmentsshouldbecommitted.

SubsequenttothepassageofProp1Bandinresponsetostakeholderinput,theCTCestablishedaTCIFWorkGroupandheldaseriesofmeetingsinthefallof2007.TheWorkGroupincludedtransportation,logisticsandenvironmentalstakeholders,aswellasrepresentativesfromvariousstategovernmentalagencies.ThepurposeoftheTCIFWorkGroupwastodevelopapolicyframeworkfortheimplementationoftheTCIFandforlongtermstrategiesforgoodsmovementinvestmentsinCalifornia.TheWorkGroupfocusedonseveralkeypolicyareasinvolvedinimplementingtheTCIF,including:

• TheappropriateprogrammingframeworkfortheTCIF;ensuringthefundswereprogrammedtoaddressthestate’smosturgentneeds,providingreasonablegeographicbalancebetweenthestate’sregions.

• TheroleandtypesoffundingmatchforTCIFdollars.• Theappropriaterolesforthepublicandprivatesectorsindeveloping,fundingand

implementingTCIFprojectsandstrategies.

Inordertoprioritizefunding,fourcorridorswereidentified.ThecorridorsalsoallowedforvariousregionalstakeholderstocollaborateduringthedevelopmentofTCIFapplications.Thecorridorswere:

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1. LosAngeles/InlandEmpire2. BayArea/CentralValley3. SanDiego/Border4. OtherCorridors

Aspartoftheguidelinedevelopmentprocess,theCTCdeterminedfourcorridorshadahighvolumeoffreightmovementandwereeligibleforTCIFfunding.TheCTCacknowledgedthatotherregionsofthestatemayhavefreightinfrastructureneedsalongcorridorsthathaveahighvolumeofgoodsmovementwouldbeeligibleforTCIFfundingandallowedtheseregionstonominateprojectsforconsideration.

BasedontheinputfromlisteningsessionsandtheWorkGroup,CTCstaffdevelopedguidelinesfortheTCIFandtheseguidelineswereadoptedbytheCTCataspecialmeetinginDecember2007.TheTCIFGuidelinesareavailablethroughthefollowinglink:http://www.catc.ca.gov/programs/tcif.htm

Eligibleprojectsidentifiedinthe2007TCIFGuidelinesincluded,butwerenotlimitedtothefollowing:

• Highwaycapacityimprovements;• Freightrailsystemimprovements;• Portcapacityandefficiencyprojects;• Truckcorridorimprovements;• Improvementsthatmaximizestateaccesstofederalborderinfrastructurefunds;and• Airportgroundaccessimprovements.

Tobeconsideredforfunding,projectswererequiredtoincludethefollowingeligibilitycriteria:

1. Theprojectneededtobeincludedineitherastatefreightplan,orinanadoptedregionaltransportationplan.

2. Theprojecthadtodemonstratea1:1fundingmatch(local,federalorprivatefunds).3. ConstructionhadtobeginbyDecember31,2013.4. Theprojecthadtocontributetocorridororairbasinemissionreductionofparticulates

andotherpollutants.5. Theprojecthadtostimulateeconomicactivity,enhancetradevalueand

preserve/createjobs.

Thefollowingevaluationcriteria(orperformancemeasures)wereusedtoselectprojectsforfunding:

1. Throughput–projectprovidesforincreasedvolumeoffreighttrafficthroughcapacityexpansionoroperationalefficiency.

2. Velocity–Projectincreasesthespeedoffreighttrafficmovingthroughthedistributionsystem.

3. Reliability–Projectreducesthevariabilityandunpredictabilityoftraveltime.

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4. Safety–Projectincreasesthesafetyofthepublic,industryworkers,andtraffic.5. CongestionReduction/Mitigation–Projectreducesdailyhoursofdelayonthesystem

andimprovesaccesstofreightfacilities.6. KeyTransportationBottleneckRelief–Projectrelieveskeyfreightsystembottleneck

whereforecastsoffreighttrafficgrowthratesindicateinfrastructureorsystemneedsareinadequatetomeetdemand.

7. Multi-ModalStrategy–Projectemploysorsupportsmulti-modalstrategiestoincreaseportandtransportationsystemthroughputwhilereducingtruckvehiclemiles/hourstraveled.

8. InterregionalBenefits–Projectlinksregions/corridorstoservestatewideornationaltradecorridorneeds.

9. AirQualityImpact–Projectreduceslocalandregionalemissionsofdieselparticulate,CO2,NOxandotherpollutants.

10. CommunityImpactMitigation–Projectreducesnegativeimpactsoncommunities(noise,localizedcongestion,safety,etc.).

11. Economic/JobsGrowth–Projectstimulateslocaleconomicactivity,enhancestradevalueandpreserves/createsjobs.

TheTCIFGuidelinespromotedacorridor-basedapproachfortheprogrammingofTCIFfundsandalsorecognizedandcomplementedthefreightplanningworkthathadalreadybeenconductedwithinthemajorfreightcorridors.Topromotethiscorridor-basedapproach,theCTCdevelopedgeographicprogrammingrangesinconsultationwithCaltransandthecorridorregionalagencies.Thetargetswereneitherminimumsnormaximums;theydidnotconstrainwhatanyagencycouldproposenorconstraintheCTCtoprogramandallocate.TheCTCrecognizedandsupportedthekeyrolethestateplayedinprojectidentificationandintegrationofstatewidefreightprioritiesthroughacorridorapproach.TheapproximatepercentageofTCIFfundsreceivedbyeachregionwereasfollows:

Region Approx.%TCIFFundsReceived

LosAngeles/InlandEmpireCorridor 60%

BayArea/CentralValleyCorridors 26%

SanDiego/BorderCorridor 11%

OtherCorridors 3%

AB268(2008)codifiedtheCTC’sroleinadministeringtheTCIFprogramadoptionandsetthecorridorprogrammingtargetsinlaw.Inaddition,SB1228(2014)continuedtheexistenceofthe

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TCIFprogramaftertheexpenditureofallProp.1Bfunds,ifotherfreightfundingopportunitieswereidentified.

BothpublicandprivatefreightprovidersalongwithotherstakeholdersoverwhelminglysupportedtheTCIFprogram,twooftheprimaryreasonsincluded:

1. ItclearlyarticulatedstateprioritiesfortheTCIFfundsandidentifiedfourspecifickeyfreightcorridors.

2. RegionalgovernmentwasabletoprogramspecificfreightinfrastructureprojectsthatachievedthestateTCIFgoals.

DiscussionFuturefundingforfreightinfrastructureshouldbebasedonthesuccessfulTCIF/GMERPmodelandensurethefollowingthreegoalsoftheGovernor’sExecutiveOrderB-32-15arerealisticallyconsidered:

1. Establishcleartargetstoimprovefreightefficiency;2. Transitiontozero-emissiontechnologies;and3. IncreasetheeconomiccompetitivenessofCalifornia’sfreightsystem.

This“TCIF/GMERP-PhaseII”programshouldincludemanyofthekeycomponentsthatmadetheTCIFandGMERPprogramssosuccessful.

TCIF-PhaseIIShouldIncorporateManyoftheCriteriaIdentifiedinNewFederalTransportationActOnDecember4,2015,thePresidentsignedintolawtheFixingAmerica'sSurfaceTransportationAct,or"FASTAct".TheFASTActauthorizes$305billionoverfederalfiscalyears2016through2020forhighway,highwayandmotorvehiclesafety,publictransportation,motorcarriersafety,hazardousmaterialssafety,rail,andresearch,technologyandstatisticsprograms.

TheFASTActaddressedtheneedforacoordinatednationalfreightstrategy,andacknowledgedtheneedtoensuretheU.S.maintainsitsdomesticandglobaleconomiccompetiveness.TheFASTActcreatedthefollowingtwofundingprogramsspecificallyforfreight:

• A$4.5billioncompetitivegrantprogramprioritizing“nationallysignificantfreightandhighwayprojects”forurbanandruralareas.Theprogramwillawardgrantstoentitiessuchasmetropolitanplanningorganizationsandportauthorities.

• A$6.3billionfreightformulaprogramaimingtotargetinvestmentsonanewly-designated“NationalHighwayFreightNetwork”inadditiontoothercriticalurbanandruralfreightcorridors.Thesefreightformulafundsaretobeallocatedtoeachstate.UnderthiscategoryCaliforniawouldreceiveanestimated$100millionayearforthenextfiveyears.

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TCIF/GMERP-PhaseIIshouldincorporatethefollowingfederalfreightgoalsthatwereidentifiedintheFASTAct:

1. Improvethesafety,efficiency,andreliabilityofthemovementoffreightandpeople;2. Generatenationalorregionaleconomicbenefitsandanincreaseintheglobaleconomic

competitivenessoftheUnitedStates;3. Reducehighwaycongestionandbottlenecks;4. Improveconnectivitybetweenmodesoffreighttransportation;5. Enhancetheresiliencyofcriticalhighwayinfrastructureandhelpprotectthe

environment;6. Improveroadwaysvitaltonationalenergysecurity;and7. Addresstheimpactofpopulationgrowthonthemovementofpeopleandfreight.

Theonlyfreightprojectsthatareeligibletoreceivethesefederalfreightfundsinclude:

1. HighwayfreightprojectscarriedoutontheNationalHighwayFreightNetwork;2. HighwayorbridgeprojectscarriedoutontheNationalHighwaySystem;3. ProjectstoaddcapacitytotheInterstateSystemtoimprovemobility;4. Projectsinanationalscenicarea;5. Freightprojectsthatareafreightintermodalorfreightrailproject;orwithinthe

boundariesofapublicorprivatefreightrail,water(includingports),orintermodalfacilitythatisasurfacetransportationinfrastructureprojectnecessarytofacilitatedirectintermodalinterchange,transfer,oraccessintooroutofthefacility;orarailway-highwaygradecrossingorgradeseparationproject.

NOTE:TheU.S.DOTwillneedtopromulgatefinalregulationsonthefederalfreightgrantprogrambeforeadditionaldetailsandrequirementsonfederalfreightfundingcanbeclarified.

CurrentStateProposalsRegardingFreightFundingAsofFebruary2016,therearefivestateproposalsonthetableregardingspecificfundingforfreightinfrastructure:

Governor’sFY2016/17ProposedBudgetInJanuary2016,theGovernorreleasedhisproposedbudgetfortheupcomingfiscalyear2016-17thatcontainedatransportationpackagetoimprovethemaintenanceofhighwaysandroads,expandpublictransit,andimprovecriticalfreightinfrastructure.Overthenexttenyears,the$36billiontransportationpackagewouldprovide$16billionforhighwayrepairsandmaintenance,andinvestover$2billioninthestate’stradecorridors.Thiswouldequatetoroughly$3.6billionavailableannually.Localroadswouldreceivemorethan$13billioninnewfundingoverthenexttenyears.Over$4billioninadditionalfundingwouldflowtotransitandintercityrail;halfofthesetransitandintercityrailfundswouldbeallocatedtobenefitthestate’sdisadvantagedcommunities.

IfapprovedasproposedbytheGovernor,thistransportationpackagewouldallocate$211millionperyeartofundprojectsalongthestate’smajortradecorridors.

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CaliforniaSenateBillX1-1(Beall)SenatorJimBeall’sproposalincreasesfundingprimarilytoaddressthemaintenancebacklogforCalifornia’stransportationsystem.SenatorBeall’sproposalwouldraiseatotalof$6billionannually;ofthattotal,$5.5billionwouldbededicatedforimprovementstoexistingroadsandhighwaysand$500milliontoimprovefreightinfrastructure.

CaliforniaAssemblyBill1591(Frazier)InJanuaryofthisyear,AssemblyMemberJimFrazierintroducedAB1591whichwouldraiseover$7billionannuallyandfundtwomajorinitiatives:1)tradecorridorimprovements;and2)roadmaintenanceandrehabilitation.Thisbillwouldannuallyprovidealmost$6billionforexistingroadsandhighways;$1.2billionforfreightinfrastructure;$600millioninCapandTradefundsfortransitandrailimprovements;and$200millionforCompleteStreets.

Inadditiontothethreeproposalsabove,thefollowingtwolegislativebillswereintroducedinJanuary/February2016relatingtofreightprojectsandtheuseofGreenhouseGasReductionFunds;commonlyreferredtoas“CapandTrade”:

• AB1780(Medina)wouldestablishtheSustainableTradeCorridorsProgram.25%oftheannualCapandTradeproceedswouldbeusedtofundthisprogramwhichwouldbeadministeredbytheCTC.

• AB1657(O’Donnell)wouldestablishtheZeroandNear-ZeroEmissionIntermodalTerminalsProgram.ThisprogramwouldfundequipmentupgradesandinvestmentsatintermodalterminalsandwouldbeadministeredbytheARB.ThebillwouldalsocreatethePortBuildingandLightingEfficiencyGreenhouseGasReductionFundProgramtobeadministeredbytheCaliforniaEnergyCommission.

TCIF/GMERP-PhaseIIThemaingoalofTCIF/GMERP-PhaseIIwouldbetosupportthedevelopmentoffreightinfrastructureandcleanequipmentprojectsthataddressthethreegoalsoftheGovernor’sExecutiveOrderB-32-15.Thesubgroupoffersthefollowingninerecommendations(below)regardingpossibleperformancemeasures/selectioncriteriaforTCIF/GMERP-PhaseII.Theseareintendedtoestablishabaselineofpossibleitemswhichcouldbeusedbythestatetosetgeneralprojectselectioncriteria;aswiththeTCIF,aTCIF/GMERP-PhaseIIprogramwouldrelyonregionalagenciestoselectspecificprojects.ThesuggestedTCIF/GMERP-PhaseIIprojectselectioncriteriaaddressFederalFASTActrequirementsandtheGovernorsExecutiveOrderB-32-15:

1. GHGandFederalCriteriaEmissionReductions–ProjectwillhaveapositiveimpactinreducingCO2emissionsandfederalcriteriaairpollutants.

2. Throughput–Projectprovidesforincreasedvolumeoffreighttrafficthroughcapacityexpansion,connectivityoroperationalefficiency.

3. Safety–Projectincreasesthesafetyofthepublic,industryworkers,andtraffic.4. CommunityImpactMitigation–Projectreducesnegativeimpactsoncommunities

(noise,localizedcongestion,safety,etc.).

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5. Economic/JobsGrowth–Projectstimulateslocaleconomicactivity,enhancestradevalueandpreserves/createsjobs.

6. PromotesInnovation–Projectincludestechnologicalinnovationthataddressefficiency,reducesenvironmentalimpacts,orboth.

7. Resiliency–Projectwillreduceclimatechangerelatedimpactstofreightinfrastructure.8. Security–Projectwillenhancethesecurityofportorrailfacilities.9. ImpactstoDisadvantagedCommunities–Projectwillreducetheimpactoffreight

facilities/movementtodisadvantagedcommunities.

AsspecifiedinSB1228(2014),TCIF/GMERP-PhaseIIeligiblefreightinfrastructureprojectswouldbeselectedfromthefollowingdocuments:

• CaliforniaFreightMobilityPlan-PreparedbyCaltrans• SustainableFreightStrategy-PreparedbyARB• GoodsMovementActionPlan(2007)-PreparedbyCaltrans• FreightPlans-Preparedbyregionaltransportationagencies• AdoptedRegionalTransportationPlans-PreparedbyMetropolitanPlanning

OrganizationsandRegionalTransportationPlanningAgencies• StatePortMasterPlan-PreparedbytheCaliforniaMarineandIntermodal

TransportationSystemAdvisoryCouncil

ARBwouldberesponsibleforcontinuingtospecifyeligiblecleanequipmentrequirements.Itisimportantfortheprojectlistingineachofthesedocumentstobeupdatedregularlytoensurethelistsrepresentcurrentregionalneeds.PrioritizationofprojectsunderTCIF/GMERP-PhaseIIshouldalsoensurethatinadditiontoconsiderationofPortandtruckrelatedimprovements,theimportanceoffreightrailprojectsarealsoaddressed.

UnderSB1228,eligiblefreightinfrastructureprojectsinclude:

• Highwaycapacityandoperationalimprovements;• Freightrailsystemimprovements;• Projectstoenhancethecapacityandefficiencyofports;• Truckcorridorimprovements,truckfacilities,ortrucktollfacilities;• Borderaccessimprovements;and• Surfacetransportationandconnectorroadimprovements

RecommendationsListedbelowaretherecommendationsdevelopedbythesubgroupregardingpossiblestateallocationoffundingforfreightinfrastructureandcleanequipmentimprovements:

1. ContinuetheSuccessfulTCIFProgramWitha“TCIF/GMERP-PhaseII”

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• AllfuturefundingdedicatedforfreightinfrastructureimprovementsandallocatedbythestateshouldusetheTradeCorridorsImprovementFund(TCIF)programasamodel,thisnewprogramcouldbecalled“TCIF/GMERP-PhaseII”.

• AllfuturefundingdedicatedforcleanequipmentpurchasesshouldbeadministeredbyARB.

• TCIF/GMERP-PhaseIIshouldincorporatemanyoftheaspectsoftheoriginalTCIFprogram(includingtheaforementionedregionalshares).Inaddition,updatesmaybenecessarytomeetperformancemeasures/selectioncriteriaandotherFASTActrequirementsaswellastheGovernor’sExecutiveOrderB-32-15.

• AsoccurredduringtheTCIFprocessusingProp.1Bfunds,TCIF/GMERP-PhaseIIwillrequireon-goingdirectcommunicationbetweenstate,regionalandlocalgovernmentinadditiontotheprivatefreightindustry.

• SB1228(2014)continuedtheexistenceoftheTCIFProgramandallowedforfundsotherthantheoriginalProp1BfundingtobeallocatedbytheCTC.ThefirstopportunitytoimplementTCIF/GMERP-PhaseIIwouldbewiththerecentlyapprovedfederaltransportationreauthorizationreferredtoasthe“FASTAct”.TheFASTActauthorizesapproximately$100millionperyeartoCaliforniaforthenextfiveyears.OtherfederalorstatefundsdedicatedforfreightinfrastructurecouldbeincludedintoTCIF/GMERP-PhaseIIastheyaremadeavailable.

• ThestatelegislatureneedstointroduceimplementinglegislationforFASTActfreightfunding.

2. EnsureTCIF/GMERP-PhaseIIFundsareLeveragedWithOtherFundingSources• TCIF/GMERP-PhaseIIfundsshouldbeheavilyleveragedwithotherpublicand

privatefundingsources.3. DevelopaLong-TermFundingProgramSpecificallyforFreightInfrastructureandClean

Equipment• Californiashoulddevelopalong-termdedicatedfreightinfrastructureandclean

equipmentfundingprogramasarticulatedintheGovernor’sFY2016-17proposedbudgetandalsoidentifiedinbothSenatorBeall’sandAssemblyMemberFrazier’slegislativeproposals.

4. BuildontheGMERPProgramwiththeDedicationofCap-And-TradeFundsforFreightInfrastructureandCleanEquipmentWhichWillReduceFreightEmissions• Cap-and-Traderevenuesshouldbededicatedforusewithin“SustainableTrade

Corridors”andat“ZeroandNear-ZeroEmissionIntermodalTerminals”likeasproposedinAB1657(O’Donnell)andAB1780(Medina).OtherfundingsourcesshouldbeidentifiedinadditiontoCap-and-Tradefunds.Theseprogramswouldfundequipmentupgradesandinvestmentsthroughoutthestate’stradecorridors,asidentifiedinTCIF,andincludingadditionalfundingforequipmentupgradesandinfrastructureinvestmentsatintermodalmarineterminals.

5. MinimizetheComplexityofStateAdministeredFreightFundingPrograms

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• Ifadditionalfundingisidentifiedforfreightinfrastructureorequipmentprojects,thecomplexityandrequirementsofthoseprogramsshouldbeheldtoaminimum.Inaddition,freightcapitalimprovementprojectsshouldbeadministeredbytheCTC,cleanfreightequipmentprogramsshouldbeadministeredbytheARB,andtheCaliforniaEnergyCommissionshouldadministerprogramsaimedatreducingfreightrelatedenergyconsumption.Asbestpossible,thegrantapplicationrequirementsshouldbesimilarbetweenstateagencies.

6. ImproveExistingAccessInfrastructuretoCalifornia’sMajorPortFacilities• Anyadditionalstatefundingforfreightinfrastructureshouldtakeintoconsideration

theimprovementofaccesstomajorportfacilities.ExistingkeyhighwayandroadaccessnearCalifornia’smajorportfacilitiesmustbemaintainedandimproved.Localgovernmentshouldtakeintoconsiderationhowdecisionstoreduceaccesstothesefacilitiesmayhaveasevereimpacttostatewideeconomiccompetiveness.

7. UnderwritePresentCapitalExpensesInAnticipationofFutureBenefits• Ifthestatecanidentifydirectefficiency,environmentalandeconomicbenefits

whichwillresultfromaninvestmentinfreightinfrastructure,andthesebenefitsincludefuturesavingswithrespecttopublicexpendituresorfuturerevenueswithrespecttostatetaxcollection,thenthepresentvalueoftheinvestmentcanbemonetizedbythestate.Ifthevalueofaninvestmentcanbemonetizeditcanbeusedasabasisforunderwritingthefinancingoftheinvestment.Notunliketaxincrementfinancingandsimilartootherrevenuebondingmodelswhichexistforvarioustypesofinfrastructureatthestateandlocallevels,thestatecanandshouldutilizeitsabilitytoleveragecurrentinvestmentinthefreightnetworkonthebasisofachievingitsgoalsandensuringthecreationoffuturebenefits.TheopportunitiesandconstraintswhichareattendanttoamonetizationandunderwritingoptionshouldbeexploredinmoredetailastheSustainableFreightActionPlanisdevelopednotonlyfromanefficiencyperspective,butalsowithrespecttoimprovingeconomiccompetitivenessandzero-emissionsequipmentfinance.

STRATEGIESTOMAXIMIZEASSETUTILIZATIONINTHECALIFORNIAFREIGHTSYSTEM:PARTI–BACKGROUNDANDGENERALRECOMMENDATIONS


LeadAuthor:MiguelJaller,UniversityofCalifornia,DavisWorkingGroupMembers:JamesJack,CoalitionforResponsibleTransportation;CynthiaCory,CaliforniaAirResourcesBoard;ChrisShimoda,CaliforniaTruckingAssociation;MikeJacob,PacificMerchantShippingAssociation;andKerryCartwright,PortofLosAngeles

AbouttheFreightEfficiencyStrategiesDevelopmentGroupInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.AbouttheNationalCenterforSustainableTransportationTheNationalCenterforSustainableTransportationisaconsortiumofleadinguniversitiescommittedtoadvancinganenvironmentallysustainabletransportationsystemthroughcutting-edgeresearch,directpolicyengagement,andeducationofourfutureleaders.Consortiummembersinclude:UniversityofCalifornia,Davis;UniversityofCalifornia,Riverside;UniversityofSouthernCalifornia;CaliforniaStateUniversity,LongBeach;GeorgiaInstituteofTechnology;andUniversityofVermont.Moreinformationcanbefoundat:ncst.ucdavis.edu.DisclaimerThecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmanyindividualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensusonthepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinionorpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedtoinformandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightActionPlan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattemptedtoincludedissentingopinionsandareasofconcurrencewheretheymayexist.ThisdocumentisdisseminatedunderthesponsorshipoftheUnitedStatesDepartmentofTransportation’sUniversityTransportationCentersprogram,intheinterestofinformationexchange.TheU.S.GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.NordoesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.GovernmentandtheStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.

AcknowledgmentsThisstudywasfundedbyagrantfromtheNationalCenterforSustainableTransportation(NCST),supportedbyUSDOTandCaltransthroughtheUniversityTransportationCentersprogram.TheauthorswouldliketothanktheNCST,USDOT,andCaltransfortheirsupportofuniversity-basedresearchintransportation,andespeciallyforthefundingprovidedinsupportofthisproject.

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TABLEOFCONTENTSEXECUTIVESUMMARY...................................................................................................................3

Abstract..........................................................................................................................................6

IntroductionandBackground........................................................................................................6

OverviewoftheFreightSystem.....................................................................................................7

Keystakeholders,theirrolesandinteractions...........................................................................7

CargoandVehicleMovements..................................................................................................8

InefficienciesintheFreightSystem.............................................................................................10

InefficienciesintheOn-roadTruckingSector..........................................................................10

InefficienciesintheMaritimeSector.......................................................................................15

SummaryandGeneralRecommendations..................................................................................17

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FundingforFreightInfrastructure&CleanEquipment

EXECUTIVESUMMARYThefreightsystemisoneofthekeycontributorstoahealthyeconomy.However,thevehicles,equipment,andfacilitiesusedbythedifferenteconomicagentsthatconductfreightoperationsproducesignificantexternalities:congestion,environmentalemissions,andsafetyissues,amongotherimpacts.Therefore,publicandprivateinitiatives,measures,orstrategiestomitigatethesenegativeexternalities,andmovethesystemontoamoresustainablepath,areapriority.

Inresponsetothisneed,theFreightEfficiencyStrategyDevelopmentGroup(FESDG),acollaborativeeffortbetweenacademia,publicandprivatestakeholders,andgovernment,wasconvenedinAugust2015withtheultimategoalofidentifyingfreightsysteminefficienciesinCaliforniaanddevelopingasetofefficiencyimprovementstrategies.

Thispaper(PartIofatwo-partseries)discusseskeyfindingsfromtheeffort.Itprovidesanoverviewofthefreightsystemintermsofthemainstakeholders,theirrolesandinteractions;theimpactsfromthetypeofvehiclesusedtomovecargoin,outandthroughouttheState;andvariouspressinginefficiencies.

Wheninvestigatingthedynamicamongthestakeholders,severalkeypointsareidentified:

• The industry objectives, business models, and regulatory compliance requirementsassociatedwitheachofthelargenumberofstakeholdersaresomeofthefactorsthatevidencethesystem’scomplexity.

• Although there ismultiplicityof stakeholders, theperformanceof the systemmaybedrivenbythedecisionsofalimitednumberofplayerswhohavewithgreaterdecision-makingpowers(e.g.,shippers,receivers).

• Designingpoliciesorstrategiestofosterbehavioralshiftsandefficiencyimprovementsrequiresidentifyingtheappropriatedecisionmakercapableofinfluencingsuchchange.

• The freight system is comprised of a number of supply chains, each with differentoperationalpatterns(e.g.,distributivenetworks,spokeandwheelpatterns,corridors).

• Freight activity manifests itself in different forms, depending on the layer of theeconomy:1)internationaltradeeconomyfreightgateways(i.e.,seaports,airports,landportsofentry);2)domesticmanufacturing/agriculturaleconomy;and3)thedistributionandurbaneconomy.

• Although usually overlooked, the freight traffic generated by the domesticmanufacturing/agriculturalanddistributioneconomiesisamagnitudelargerthantrafficgeneratedbytheinternationaltradelayers.

Therearemyriadtypesofefficienciesandinefficienciesworthdiscussion:

• Thefreightsystemexperienceshighlevelsofpressurefrombothexternalandinternalfactors. Government, market, and environmental conditions require the system’s

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playerstosqueezeprofitmargins,insomecases,creatinginefficienciesattheexpenseofotherplayersandevenattheexpenseoftheirownsub-systems.

• Due to the silo nature of the freight system components, efficiency gains at the sub-systemleveldonottendtoequatetonetgainsintermsofasystemoptimum.

• Congestion, highway capacity, safety, geometrics, surface conditions, and intermodalconnectionsarekeyconcernsofthetruckingindustry.

• ThereareseveralcorridorsandfreightbottlenecksaffectingtheefficiencyofgoodsandpassengermovementsindifferentregionsoftheState.

• Congestion (in its various forms) is an important factor contributing to the system’sinefficiencies.

• The share of accidents causedby trucks is small; however, accidents involving heavy-dutyvehiclesaremorelikelytoresultinfatalities.

• Thereareissueswithtruckroutesandfreightplanning.• Inefficienciesassociatedwiththebulkof freightvehiclemovements,andwiththe last

mileanddistributioneconomy,aretheresultofalackofplanningandconsiderationforthefreight industry ingeneralplanningprocesses;the importanceofthe lastmileanddistributioneconomyhasbeenneglectedinparticular.

• Thegeneralpublicandsomepublicofficials,usuallyassociate themajor freight issueswith on-road motor carriers. However, these carriers are only the conduit betweenpoints of origin and destination; because of how the system works, shippers andreceivers tend to be the ultimate decision makers that determine how, when, andwherefreightoperationsoccur.

• HoursofServiceRules,especially theHoursofServiceofDriversFinalRuleof2011, ifimplemented,couldintroduceadditionalinefficienciesinthefreightsystem.

• There are concerns in the trucking industry about the predicted shortageof qualifiedtruckdrivers.

• Within the seaports, congestion and inefficiency can be seen at the intersections ofmultiple portions of the supply chain and multi-modal transactions across multiplebusinesslines,allinoneconcentratednode.

• Port labor disruptions during contract negotiations, and/or lack of new terminalinfrastructure,canimpactCalifornia’seconomiccompetitiveness.

• International cargomovementpatterns that translate into congestionat seaports canalsoresultinsignificantdelaysfortruckslookingtopickupanddropoffcargo.However,inefficienciesdonotonly affect the land sideofmarine terminals.Vessel loadinganddischargeisalsosusceptibletocongestion,atagreatexpensetovesseloperators.

InlightoftheGovernor’sExecutiveOrder,itisimperativethatCalifornia’svariouspublicagenciesinitiate,continue,orreinforceeffortstoaddressfreightefficiencyissuessuchasthoseoutlinedabove.Theseeffortsshould,ingeneral,concentrateon:

• Conductingsoundfreightplanningatalllevels;withemphasisonurbanfreight.• Identifying behaviors that need to be fostered, or mitigated, among the various

stakeholders.

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• Developingparticipatorystakeholderengagement.• Fosteringinformationsharing.• Developing plans, agreements and platforms for active conversation to address labor

issues;andinvestinworkforcedevelopment.• Investinginresearchandcontinuedimprovementefforts.

Ingeneral,tryingtoachievethegoalofimprovingfreightefficiencywillrequirecoordinatedeffortsbetweenthepublicandprivatesectors,academia,communities,andanyotherrelevantstakeholders.Astherearenumerousdifferenttypesofissuesidentifiedwithinthefreightsystem,itisnotlikelythatasinglestrategywillresultinsignificantimprovements.Thisisacomplexsystemrequiringmulti-partcomplexsolutions.

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AbstractThispaper(thefirstofatwo-partseries)discusseskeyfindingsfromacollaborativeeffortbetweenacademia,publicandprivatestakeholders,andgovernmenttoidentifystrategiestoimprovetheefficiencyofCalifornia’sfreightsystem.Indoingso,thepaperprovidesabriefoverviewofthesystem,withanemphasisonkeystakeholders,theirrolesandinteractions,andimplicationsassociatedwiththetypesoffreightmovementsandlayersoftheeconomy.Moreover,theworkdiscussesmajorinefficienciesintheon-roadtruckingandmaritimesectors,wherecongestionoftenimpedesmaximizingassetutilization.PartIpresentsanumberofgeneralrecommendationstoimprovefreightefficiency;Specificstrategiesarediscussedinthesecondpartofthisseries.Inaddition,thispaperacknowledgesthefactthatitisnotlikelythatanysinglestrategywillresultinsignificant-enoughimprovementsonitsown;theinherentlycomplexnatureofthesystemwillrequireanequallycomplexsetofsolutions.

IntroductionandBackgroundThefreightsystemisoneofthekeycontributorstoahealthyeconomy.However,thevehicles,equipment,andfacilitiesusedbythedifferenteconomicagentsthatconductfreightoperationsproducesignificantexternalitiesincludingcongestion,environmentalemissions,andsafetyissues,amongotherimpacts.Therefore,publicandprivateinitiatives,measures,orstrategiestomitigatenegativeimpactsandmovethesystemtowardsamoresustainablepathareapriority.Ingeneral,thetypeofstrategiesthatcouldbeimplementedrangefrominfrastructureimprovementsandtechnologicaladvancementstofreighttransportationdemandmanagementstrategies(whichfocusonbehavioralchanges).Althoughinfrastructureandtechnologyenhancementsareessentialcomponentsofacomprehensiveimprovementstrategy,thesealonecannotaddressunderlyingbehavioralaspectsthattranslateintosysteminefficiencies.

ThisconceptisevenmoreacuteinageographiclocationsuchasCalifornia,whereimportantlargetrafficgeneratorssuchasthemaritimeports,internationalborder,extensiveagricultureandproductionlands,andhugeconsumptiondemandinitslargemetropolitanareasinteractandexhibitdiversefreightpatterns,operations,andissues.Thefreightsystemexperienceshighlevelsofpressurefrombothexternalandinternalfactors.Government,themarket,andenvironmentalconditionsrequirethesystem’splayerstosqueezeprofitmargins,insomecases,creatinginefficienciesattheexpenseofotherplayersandevensub-systems.Moreover,efficiencygainsatthevarioussub-systemsdonotequatetoasystemoptimum.Therefore,puttingforwardaplantoimprovetheefficiencyoftheCaliforniafreightsystemasawholerequiresanunderstandingofitsmultiplestakeholders,industryrelations,andthecurrentopportunitiesandconstraintsfacedbythesystem.

Inthissense,PartIdiscussessomeofthefindingsfromtheFreightEfficiencyStrategyDevelopmentGroup(FESDG).TheFESDGisacollaborativeeffortbetweenacademia,publicandprivatestakeholders,andgovernment,sponsoredbytheCaliforniaDepartmentofTransportation(CALTRANS)andtheAirResourcesBoard(ARB).AnumberofstakeholdershavebeenconveningsinceAugust2015,withtheultimategoalofidentifyinginefficienciesfacedbythefreightsystemandputtingforwardasetofstrategiestoachieveamoreefficientfreight

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system.Indoingso,akeyfirststepwastoprovideinsightastothepossiblerootcause(s)ofmajorinefficienciesaffectingthesystem.

Inadditiontoassessinginefficiencies,thispaperdescribessomeoftheaspectsandnecessaryconditionsthatneedtobeconsideredwhendefiningoridentifyingremediatingstrategies.Specificstrategiesarethendiscussedinacompanionpaper.

Thispaperisorganizedasfollows.SectionIIprovidesabriefoverviewoftheCaliforniafreightsystem,emphasizingkeystakeholders,theirrolesandinteractions.SectionIIIdiscussesmajorinefficienciesaffectingthesystem.SectionIVprovidesasummaryanddiscussescrucialpointstobeconsideredinthedevelopmentofimprovementstrategies.

OverviewoftheFreightSystemKeystakeholders,theirrolesandinteractions

Atfirstglance,variousstakeholdersintheCaliforniafreightsystemcanbeclearlyidentified.Theseincludecarriercompanies(e.g.,rail,oceanvessel,truckers,etc.);shippers;receivers(e.g.,beneficiarycargoowners,retailers,manufacturers,farms,businesses,households);publicagencies;terminal,distribution,warehousingandancillaryfacilityoperators;intermediariesandlogisticsoperators;regulators;thegeneralpublic;tradeorganizations;unions;lawenforcement;and,non-governmentalorganizations.

AccordingtotheCaliforniaFreightMobilityPlan1,thecurrentcorefreightsystemincludes:

• Twelvedeepwaterseaports(11privateand1public),• Numerousprivateportandterminalfacilities,• Twelveairportswithmajorcargooperations,• TwoClass I railroads and twenty-six short-line railroads operating over approximately

6,000milesofrailroadtrack,• Approximately 5,800 center-line miles of high-traffic-volume interstate and state

highways,• Three existing, and one future, commercial land border ports of entry (POE) with

Mexico,• Intermodaltransferfacilities,• Approximately19,370milesofhazardous liquid (includes crudeoil, refinedpetroleum

products,andotherhighlyvolatileliquids)andnaturalgaspipelines,• Avastwarehousinganddistributionsector,and• Numerouslocalconnectorroadsthatcompletethe“lastmile.”

Thesheernumberofstakeholders(eachwiththeirownobjectives,businessmodels,regulatorycompliancerequirements,andareasofinfluence),makesdescribingtheirinteractions,andevenunderstandingtheimpactofefficiencyimprovementstrategies,adauntingtask.Withinthesystem,therearenumerousmarketforcesthataffectthewayeachindividualplayerperformsandtherolethatitplays;eachsubsetofeachsupplychainaimstoachievethesameendgoal:tomaximizeitsownutilityandefficiency,andtominimizeitsowncostofdoing1CaliforniaDepartmentofTransportation,CaliforniaFreightMobilityPlan(Final)Chapter2.1~2.3,2013.

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business.Itisimportanttonote,,asdiscussedbefore,thateachindividualplayeractingtomaximizeitsownefficiencydoesnotguaranteeachievingagreatertotalsystemsefficiency.

Atthispoint,itisimportanttomentionthatalthoughallplayersmaybeperforminginsideasupplychainwithmanystakeholders,theperformanceofthechainmaybedrivenbythedecisionofalimitednumberofthem(havingincreaseddecisionpower).Inmanycases,theshippersand/orthereceiversofthecargoaretheonesdefiningthefrequencyofdistribution,mode,routes,andeventransactionschedules;withtherestoftheplayersadjustingtotheserequirements.Thishighlightstheneedtofullyidentifytheseinteractionswhendesigningpoliciesorstrategiesinordertoreachtheappropriatedecisionmaker.Ingeneral,theeffectivenessofanystrategieswillnotonlybetheirabilitytoaddressthekeyproblembutalsotoreachtheadequatestakeholder.Forexample,PierPasscongestionchargesaresuccessfulatshiftingcargofrompeakdemandperiodstooff-peakdemandperiodsmainlyduetothesystemdesignwherethefeeswerepaidbyreceiversandnotbythemotorcarrierdrayagecompanies.

CargoandVehicleMovements

Describingthefreightsystemrequiresdefiningthesupplychainsthatcomprisethesystem.Thesystemdoesnotdrivefreight;freightdemanddrivesthesystem.Eachsupplychainsystemismadeupofthousandsofinvestmentsincompanies,properties,publicinfrastructureprojects,vehiclesandpiecesofequipment.Thedifferentstakeholdersthatareapartofeachsupplychainreacttothedemandforfreight.Thisistheultimatemanifestationofthefreighteconomy,wheremonetarytransactionstranslateintothemovementsofgoods(andthevehiclesthatcarrythem)frompointsofproductiontothoseof(intermediateorfinal)consumption.Toputitinperspective,thesemanifestationswhichoccuroverandoveragainwithinthefreightsystemcontributetoone-thirdoftheeconomyanddirectandindirectjobsinCalifornia.

Mostsupplychainsaredistributivenetworks;othersareformedinspokeandwheelpatternsorcorridors.SomearedefinedwithintheboundariesoftheStatewhileothersspanstatelines.Insomecases,productstobeconsumed,transformed,orexportedintheState,mayhavealreadyenteredandexitedtheboundariesseveraltimes.Someflowsofcargopassthroughurbanareaswhileothershavetheurbanareasasthedestination.ThisisofgreatimportancesinceefficiencyimprovementswillnotonlybeneededinsidetheStatebutupstreamintheirout-of-statesupplychains.Inmanycases,lastmilechallengesandinefficiencieshindertheefficiencygainsinthelonghaulportionofthetransport.Theseimpactswillvaryacrossdifferenttypesofgeographiesandurbanareas.

Withoutlossofgenerality,onecanassumetheseareastobecomprisedofdifferentlevelsofthreemainlayersoftheeconomywherefreightplaysarole:theinternationaltradeeconomy,domesticmanufacturing/agriculturaleconomy,andthedistributioneconomy:

• Internationaltradeeconomyfreightgatewaysincludeseaports,airports,andlandportsof entry. Usually, these operations concentrate along specific freight corridorsconnecting the port or border facilities and import or export facilities such aswarehousesanddistributioncentersormanufacturingplantsandfarms.

• Domestic manufacturing/agricultural economy include users who build, grow,transform,andstoregoods.Thisisanimportantlayerwhichdrivesasignificantportion

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of urban economies (the majority of the production centers are localized in or nearurbanareas).

• Thedistributioneconomyisrelatedtothefinalconsumptionofthegoods.Traditionally,the final recipients of goodswere almost always freight intensive businesses, such asretail,wholesale,andfoodandbeverage,butnowdirectresidentialdeliveriesconstituteagrowingandsignificantpercentageofurbanfreightmovements.

Itisimportanttohighlightthat,althoughusuallyoverlooked,thefreighttrafficgeneratedbythedomesticmanufacturing/agriculturalanddistributioneconomiesareofamagnitudelargerthantheinternationaltradelayers.Table1showstheestimatedaveragedailytrucktripsinSouthernCalifornia,withtheinternal2trucktrafficrepresentingalmost85%ofthetraffic.Thisissimilartotheproportionofurbangoodsmovementscomparedtomajorfreightgeneratorsinothergeographiclocations.

Table1:DailyRegionalTruckTripsbyCategorybyCounty3

Eachoftheseeconomiesbringsasetofstakeholdersandplanningneeds.Somearemulti-modalinnature,whileothersaredominatedbyasinglemode.Freightoperationsandpatternscanalsoshowahighdegreeofvariability,dependingonthecomposition(percentageoftrade,manufacturinganddistribution),imposingadditionalplanningandmodelingchallenges.

Whilethispaperwillsimplifythefreightsystemintermsofthesethreelayers,supplychainsarecomplexandanyfurtherdetailwouldrequireanalysisofadditionalechelonsorintermediarystepsofthechain.Eachoftheselayerswillalsoexhibitdistinctmodesoftransport,fromlargeoceanvesselcarrierstransportingthousandsofTEUstocargo-bikesorevenpersonalparceldeliveriesatresidentiallocations.Evenatthesedifferentscales,thetypesofinefficienciescouldbeverysimilar,yettheapproachestosolvethemratherdistinct.

2InternalTruckTrips:ThesearetrucktripsthathavebothanoriginandadestinationwithintheSCAGregionandaregeneratedbylocalindustries,constructionsites,domesticwarehousesandtruckterminalsandresidences.

3http://scagrtpscs.net/Documents/2016/draft/d2016RTPSCS_GoodsMovement.pdf

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InefficienciesintheFreightSystemIngeneral,inefficienciesinthefreightsystemtaketheformofcongestion,whichinturncanresultinhigherlevelsofenvironmentalpollution,additionalsafetyconditions,andnegativeimpactsoneconomicgrowthandinvestment.

InefficienciesintheOn-roadTruckingSector

Accordingtoa1998statesurveyoftruckingfirms,4congestion,alongwithhighwaycapacity,safety,geometrics,surfaceconditions,andintermodalconnections,wasaprincipalconcernoftheindustry.Sincethattime,growthinfreighttraffic,overtheroadoratspecificfreightbottleneckshaveonlycausedmorerecurringandpredictablecongestioninselectedlocations;whilethetemporarylossofcapacity,ornonrecurringcongestionthatiscausedbyincidents,weather,workzonesandotherdisruptions,isstillnotablywidespreadeveniflesspredictable5.

InCalifornia,themajorcongestedhighwaysinthepeakperiodareconcentratedinitstwolargesturbancores,intheSanFranciscoBayAreaandgreaterLosAngeles.Accordingtothecorridorreliabilitybufferindex,theleastreliablecorridorsin2010were6:

• WestboundI–80,AlamedaCounty,BTI7:79percentintheAMpeak.• WestboundSR–22,OrangeCounty,BTI:75percentintheAMpeak.• EastboundSR–91,OrangeCounty,BTI:74percentinthePMpeak.• NorthboundSR–57,OrangeCounty,BTI:70percentinthePMpeak.• SouthboundSR–57,OrangeCounty,BTI:67percentinthePMpeak.

AccordingtotheAmericanTransportationResearchInstitute(ATRI),theLosAngelesmetropolitanareahadthehighestcosttothetruckingindustryduetocongestionwith$1.1billionaddedoperationalcosts8.Specifically,thetop5bottlenecksidentifiedarelistedbelow9.

• SR-60atSR-57inLosAngelesCounty• I-710atI-105inLosAngelesCounty• I-10atI-15inSanBernardinoCounty• I-15atSR-91inRiversideCounty• I-110atI-105inLosAngelesCounty.

4Regan,A.C.,andGolob,T.F.(1999).Freightoperators'perceptionsofcongestionproblemsandtheapplicationofadvancedtechnologies:Resultsfroma1998surveyof1200companiesoperatinginCalifornia.TransportationJournal,57-67.

5 U.S. Department of Transportation Federal Highway Administration, Freight Management and Operation,http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congestion.htm.

6CaliforniaDepartmentofTransportation,CaliforniaFreightMobilityPlan(Final)Chapter2.1~2.3,2013.7BufferTimeIndex(BTI)isareliabilitymeasureoftraveltime.BufferTimeisthedifferencebetweentheaveragetravel timeand the95thpercentile travel timeascalculated fromtheannualaverage.The Index isestimatedconsideringanumberof roadway sections (usingVMT toweight the various) sectionsand controlling for theaveragetravelrateacrossallthesections.Ingeneral,themeasurecouldbeexplainedastheextraBTI%traveltimethatatravelershouldallocateduetovariationsintheamountofcongestiondelayonatrip.

8AmericanTransportationResearchInstitute(ATRI).CostofCongestiontotheTruckingIndustry.April2014.9American Transportation Research Institute (ATRI). Congestion Impact Analysis of Freight Significant HighwayLocations.October2014.

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Inaddition,thereaderisreferredtotheGoodsMovementAppendixinthe2016-2040SouthernCaliforniaAssociationofGovernments’(SCAG)RegionalTransportationPlan10fordetailedanalysisoffreightbottlenecksaffectingthefreightsystemintheregion.

Intermsofsafety,theCaliforniaHighwayPatrol(CHP)StatewideIntegratedTrafficRecordsSystem(SWITRS)reportedthatofthe2,758totalnumberoffataltrafficcollisionsin2010,235involvedtrucks(1outof10)11.Truckdriverswereatfaultinonly75oftheincidents,indicatingthatinfatalcollisionsbetweencarsandtrucks,automobiledriversarefarmorelikelytobeatfaultthantruckdrivers.Similarproportionscanbefoundwhenlookingatinjurycollisionstatistics.However,thoughtheshareofaccidentscausedbytrucksissmall,accidentsinvolvingheavy-dutyvehiclesaremorelikelytoresultinfatalities.

Otherinefficienciescanbeassociatedwithlackofinformationsharing.Someoftheseproblemsarisebecauseofthesilonatureofcurrentoperationalpatterns,andothersstemfromtechnicalreasons.Stillothertransportationplanninginefficienciescouldtakemanyforms,examplesincludeissueswithtruckrouteplanning,wherethemainproblemsareassociatedwith:discontinuitiesbetweenjurisdictions;lackofdesignatedroutestodevelopingorplannedindustryclusters;andwidedivergencesbetweendesignatedanddefactotruckroutes.

Theinefficiencieswhichareassociatedwiththebulkoffreightvehiclemovements,thelastmileandthedistributioneconomy,aretheinherentresultofalackofplanningandconsiderationforthefreightindustry,ingeneral,andneglectoftheimportanceofthelastmileandthedistributioneconomy,inparticular.Usually,thisistheresultoflackofvisibilitybyFederalorRegionalregulatoryormanagemententities;inothersbecausethe“atomization”oftheoperationsdoesnotfallwithinthetraditionaldefinitionoffreight.Thisisbothintermsofthecargo(volumes)andthevehiclesormodesused.However,recentfederalinitiatives(STAA,ISTEA,SAFETEA-LU,MAP-21andFAST)haveincreasedtheattentionfortheroleoffreightmovementsinurbanandmetropolitanareas.

On-roadmotorcarriers,especiallyfor-hire,bothfulltruckload(FTL)orlessthantruckload(LTL)facechallengeswhichareaccentuatedbythefactthatthegeneralpublicandpublicofficialsusuallyassociatethemajorfreightissuestotheiroperations.Itisperceivedthatthesearethecompaniesusingthevehiclesthatgeneratecongestion,parkingproblems,adisproportionateamountofemissions,andaccidents(byseverityandlikelihoodofresultingincasualties).However,becauseofhowthesystemworks,thesecarriersareonlytheconduitbetweenpointsoforiginanddestination(explicitlyshippersandreceiversdecisions)whicharetheonesthatdeterminehow,when,andwherethoseoperationsoccur.Developingstrategiesthatsolelyfocusonthesestakeholders,whichhasbeenthetraditionalpractice,willnottakethesystemfarenoughastheadditionalcostsandothersysteminefficienciesaremainlyabsorbedbythesecompanieswithoutaffectingotherlegsofthechain.

Inadditiontothefactorsdiscussedbefore,twoaspectsrepresentathreatforefficiencyimprovements:hoursofservicerules,anddrivershortages.Thesearediscussednext.

10http://scagrtpscs.net/Documents/2016/draft/d2016RTPSCS_GoodsMovement.pdf11CaliforniaDepartmentofTransportation,CaliforniaFreightMobilityPlan(Final)Chapter2.1~2.3,2013.

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HoursofServiceRules

HoursofService(HOS)ruleshavetoppedthelistofleadingtruckingconcernsforthepastfewyears(seeFigure1).In2004,a34-hourrestartwasfirstintroducedinhours-of-servicerules.HOShavebeen(andcontinuestobe)revisedovertheyears.Thelatestupdate(HoursofServiceofDriversFinalRule)waspublishedintheFederalRegisteronDecember27,2011,withaneffectivedateofFebruary27,2012andcompliancedateofremainingprovisionsonJuly1,2013.

Changestothe34-hourrestartandthe30-minutebreakwerethebiggestchangestobemadesince2004.TheupdatesaddedthefollowingchangesandprovisionstotheexistingHOSrules:12

1)1a.m.to5a.m.RestartProvision:avalid34-houroff-dutyrestartperiodmustincludetwoperiodsfrom1a.m.to5a.m.

2)OneRestartperWeekRestartProvision:useoftherestartislimitedtoonetimeperweek(onceevery168hoursfromthebeginningofthepriorrestart).

3)RestBreakRequirement:adrivermaydriveonlyif8hoursorlesshaspassedsincetheendofthedriver’slastoff-dutyorsleeper-berthperiodofatleast30minutes.

Figure1:Distributionofindustryissueprioritizationscores13

12Federal Motor Carrier Safety Administration - Seemore at: https://www.fmcsa.dot.gov/regulations/hours-of-service#sthash.fMoFHwkP.dpuf13ATRI (2014). Critical Issues in the Trucking Industry. http://atri-online.org/wp-content/uploads/2014/10/ATRI-2014-Top-Industry-Issues-Report-FINAL.pdf

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TheFinalRule,however,wassuspendedinDecember2014.Congresssuspendedthechangestotherestartprovisionsaftertruckinggroupscomplainedregulatorsdidn’tcompleteastudywhendevelopingtherules.Changes,especiallythe2consecutive1-5ambreaks,werebroadlyopposedbytruckinginterests.Regulatorsarguedthattherulesweremeanttoincreasesafetyandreduceexcessiveworkhours.Thetruckingindustryclaimedthatshiftingworkhourstohoursofgreatercongestionismoreriskyandthatregulatorsfailedtostudythisproperly.

ItisimperativethattheStatecarefullyaddressesthepotentialnegativeimpactsthattheHoursofServicerulescanhaveforfreightefficiency,becausetheenforcementoftherestartprovisionsoftheFinalRulewouldintroducesignificantinefficienciesintheCaliforniaFreightSystem.Forinstance,itwouldmakedifficultforsomeoftheoperatorsthatwanttoparticipateinextendedhoursoroff-hoursoperationsasitwilllimittheirearlytravelalmosttwiceperweek.Consideringtheuncertaintyintruckingfreightoperations,therulecouldgreatlyreducetheefficiencyoftruckingcarriersandimpedetheachievementofthemandateoftheGovernors’ExecutiveOrder.Figure2showsaclearexampleoftheinefficienciesthatcouldbeintroducedbytherule.Dependingonthescheduling,therestartrulecouldtranslateinaminimumof1hourlostandmaximumof17hoursforeveryrestart.Thisisamajorinefficiencyasthe34hourrestartrulecouldbecome51hours.Insomecases,duetodifferencesintimezones,thiscouldmeanevenlongerdowntimes.ParkingavailabilityisanotherfactorthatshouldbeanalyzedwhenevaluatingtheHOSrule.

Figure2:TheimpactofHoursofServiceRules14

14http://www.joc.com/sites/default/files/u48502/InteractiveGraphics/HoursOfServiceRestartChart.pdf

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Asaresultoftheconcerns,astudywasorderedandscheduledtobereviewedbytheU.S.FederalMotorCarrierSafetyAdministration(FMCSA)andCongress.ThisreportisstillpendingasofFebruary2016.Recently,theFMCSAeasedconcernsthatthesuspensionwouldbeliftedandruleswouldbereinstatedthisyear.Thishasbeenreferredtoasaregulatory"snapback",andisfearedandopposedbytruckingandshippinginterests.ThesuspensioncannotbelifteduntilCongressreceivestheagency’sreport,butithasbeensomewhatunclearwhethertheFMCSAcansimplyreinstatethesuspendedrulesafterthereportisdelivered,orifCongressmustactfirst.

Concernsassociatedwithtruckinghoursofservicerulesincludelimitedproductivityandcompensationissues.Congress’ssuspensionoftheprovisionsiscreditedwithfreeingupasmuchas1to3percentoftruckloadcapacityin201515.“…Teamoperationswereprobablymostaffected…,”saidBillMatheson,presidentofintermodalandlogisticsservicesattruckingfirmSchneider.“…Therollbackgavethemprobably2to3percentoftheirproductivityback...”Itisalsobelievedthatstudiesarelikelyunderestimatingthenegativeimpactsaswell,sincesomedriversmayhavebeencheatingthesysteminordertoavoidproductivitylosses,thussofteningtheimpactseeninreportednumbers.Intermsofcompensation,alltruckersaremajorlyconcernedwiththepossibilityoffewerworkedhoursduetohoursofservicerules.

DriverShortages

Inadditiontohoursofservicerules,anotherconcernrelatedtolaborinthetruckingindustryisthepredictedshortageinqualifiedtruckers.Hiringisn’tup,oratthesamerateasinpast,andretirementsmeanthelossofexperienceddrivers.

Thekeyfindingsfromrecentreportsandnewsaboutthedrivershortageprobleminclude16,17:

“…Overthepast15years,thetruckingindustryhasperiodicallystruggledwithashortageoftruckdrivers

In2014,thetruckingindustrywasshort38,000drivers.Theshortageisexpectedtoreachnearly48,000bytheendof2015.Ifcurrenttrendsholditisexpectedtogrowto175,000by2024.

Thereisalsoaconcernofquality,in2012,88%offleetssaidthatmostapplicantsweresimplynotqualified.

Overthenextdecade,thetruckingindustrywillneedtohireatotal890,000newdrivers,oranaverageof89,000peryear.Replacingretiringtruckdriverswillbebyfarthelargestfactor,accountingfornearlyhalfofnewdriverhires(45%).Thesecondlargestfactorwillbeindustrygrowth,accountingfor33%ofnewdriverhires.

15http://www.joc.com/trucking-logistics/labor/hours-service-snapback-put-doubt_20150922.html16AmericanTruckingAssociation(2015).TruckDriverShortageAnalysis.http://www.trucking.org/ATA%20Docs/News%20and%20Information/Reports%20Trends%20and%20Statistics/10%206%2015%20ATAs%20Driver%20Shortage%20Report%202015.pdf

17http://www.joc.com/special-topics/driver-shortage

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Ofthe7.1millionpeopleemployedthroughouttheeconomyinjobsrelatedtotruckingactivity,3.4millionweretruckdriversin2014.Thereareover10millionCDL(CommercialDriver’sLicense)holdersintheU.S.,butmostarenotcurrentdriversandnotallaretruckdrivers.Therearebetween2.5millionand3milliontrucksontheroadtodaythatrequireadrivertohavesomesortofCDL.Ofthosetrucks,1.6millionaretractor-trailers.Ofthosetractor-trailers,nomorethan800,000areusedinOTR(i.e.,non-local)operations.

Thebulkofthedrivershortageisforover-the-road(i.e.,non-local)driversoperatingheavy-dutytractor-trailers(i.e.,Class8tractors),for-hiretruckloadsector.

Itishighlyunlikelythatthedrivershortagecouldbereducedinanysignificantmannerthroughmodalshift

Truckdriverhours-of-service,reduceindustryproductivity.Reductionsinproductivityexacerbatethedrivershortageasitrequiresmoretrucks,andthusmoredrivers,tomovethesameamountoffreight…”

Inaddition,underfederallawitisillegaltoorganizeindependentdrivers.However,advocacygroupssuchastheteamstershavebeenorganizingdriversundersuitsclaiming“misclassification”asindependentcontractors.Overthepastseveralyears,teamstersandtruckdrivershavewonsomelawsuitsinCAandsomedrivershaveevenbeenawardedsomebackwages.Threegovernmentagencies(theCaliforniaLaborcommissioner,theregionalofficeoftheNationalLaborRelationsBoardandtheCaliforniaEmploymentDevelopmentDepartment)haveissuedrulings.Unionscanlegallyattempttoorganizedirectemployees,socourtvictoriessuchasthosementionedabovecouldpotentiallyhaveagrowingimpactonthedrayageindustry.Onestrategy,inadditiontolegalaction,hasbeenpicketingandwithholdingofdriverservices,causingdelaysforallsectionsoftheportsystem.

InefficienciesintheMaritimeSector

Withintheseaports,congestionandinefficiencyarereflectedintheintersectionofmultipleportionsofthesupplychainandmulti-modaltransactionsacrossmultiplebusinesslines,allinoneconcentratednode.Toillustratethemanybusinessstakeholdersinvolved,Figure3showsadynamicpyramid,witheveryone’sultimatecustomers–theshippersandreceivers–ontop.Thesecargoownersdetermine,inmostcases,shipmentsizes,frequencies,modesoftransport,deliveryandtransportschedulesandlocations,andmostimportantlythedemandandthepricesthatwillbepaidforservicesacrosstheintermodalspectrum.Atthenextlayerthereareoceanvesselandrailcarriers.Theirimmediatecontractualprivitytotheshippersallowsthemtohaveamoredominantrolealongthechainsthanportterminalsanddrayagetruckingtransportoperators.Marineterminaloperatorsandpublicportauthoritiesmaintainhighly-leveragedandintensivecapitalinvestments,whichlimitmarketentryconditions,andaredependentonthecargovolumesprovidedbyoceanandrailcarriers,whicharedemandedbyshippers.

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Figure3:KeyStakeholdersoftheFreightSystem

However,therelationshipbetweenoceancarriersandportterminaloperatorsisfacingincreasedchallenges,especiallyduetoexternalfactorsdrivingchangeswithinthesystemsuchaslabor,alliances,andcongestionatthefacilities.Forexample,recentlaborshortagesatthemain(WestCoast)portsduetocontractnegotiations(about20,000dockworkers)accountedfor80%ofabottleneckthatimpacted36vesselsidlingatsea18.

Morechallengesareposedinthedevelopmentofeverlargervessels,whichcanboostvesseloperatingefficiencies,aswellastheincreaseduseofVessel-SharingAlliances(VSAs),withmostmajoroceancarriersoperatinginVSAsoftwotosixmemberlines.Thedirectefficienciesfromthevesselsarewelldocumented,i.e.,>18,000TEUvesselsprovide50%ofmoreenergyefficiency.19

Portlabordisruptionsduringcontractnegotiationsand/orlackofnewterminalinfrastructurecanimpactCalifornia’seconomiccompetitiveness.Forinstance,theimpactsin2014/15duringtheprotractedcontractnegotiationresultedinshort-andlong-termimpactsaffectingthesystemwherebymanybeneficiarycargoownersadopteda“fourcornerlogisticsstrategy”todiversifytheirsupplychainsinorderreducefuturevulnerabilitytolabordisruptionsattheSanPedroBayports.The“fourcornerlogisticsstrategy”introducesredundancyinsupplychainsbynotconcentratingonSouthernCalifornia,butratheronewhichreliesonseaportsinall“fourcorners”oftheU.S.(i.e.,southwest,northwest,northeast,andsoutheast).

Congestionatseaportscanalsoresultinsignificantdelaysfortruckslookingtopickupanddropoffcargo20,21.Truckscanexperiencemajordelaysjustwaitingfordispatchtoaseaport,in

18Bloombergbusiness(2015),“PortDealNearasOneIssueRemains,LongBeachChiefSays”,February11,http://www.bloomberg.com/news/articles/2015-02-11/port-deal-near-as-single-issue-remains-long-beach-chief-says,accessedOctober2015

19Kindberg,Lee(2015),“DeliveringSustainability:OceanShippingandSupplyChainEfficiency”,UniversityofCalifornia,Davis,webinar,October1st.

20Giuliano,G.,Hayden,S.,Dell’aquila,P.,&O’Brien,T.(2008).EvaluationoftheterminalgateappointmentsystematthelosAngeles/Longbeachports(No.METRANSProject04-06).METRANSTransportationCenter.

20CaliforniaDepartmentofTransportation,CaliforniaFreightMobilityPlan(Final)Chapter2.1~2.3,2013.

Shippers,Receivers

OceanVesselandRailCarriers

PortTerminals,andTrucking(drayage,for-hire)Carriers

AncillaryFacilityandLogisticsOperators

PublicAgenciesRegulationsLaborPortAuthoritiesCommunities…

InternationalEconomyDisruptionsMarketsTechnology…

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additiontoqueueingoutsidetheterminalsandwaitingtimespentinsidetheterminalswhenconductingtheirtransactions.Overall,timespentwaitingisasignificantinefficiency.Thishasadirectimpacttodrayageoperations,andrepresentsanopportunitytoachieveefficiencyimprovements.22Althoughtruckqueuesandcongestionatportterminalsgatesgenerateinefficienciesandotherexternalities,terminaloperatorsservetheirprimarycustomerswhicharethesteamshiplinesandmajorimport/exportcompaniesbymanagingtheirinternaldockoperationsundertheirlongshoreworkrules,leasesandcontracts,andotherconstraints23.However,inefficienciesnotonlyaffectthelandsideoftheseterminals.Vesselloadinganddischargeisalsoaffectedatagreatexpensetovesseloperators.

SummaryandGeneralRecommendationsTheprevioussectionsdiscussedsomeofthekeycharacteristicsoftheCaliforniaFreightSystem.Specifically,thetypesofstakeholdersinvolved,theirdynamicrelations,andanumberofinefficienciesaffectingthesystem.InlightoftheGovernor’sExecutiveOrder,itisimperativethatthevariouspublicagenciesintheStateinitiate,continueorreinforceeffortstoaddresssomeoftheseissues.Ingeneral,theseeffortsshouldconcentrateon:

Conductingsoundfreightplanningatalllevels

Californiaisadiversegeographiclocationintermsoffreight,withvariousrequirementsandconstraintsthroughouttheState.Toimprovetheefficiency,planningshouldbeconductedaddressingtheneedsofthedifferentsectorsandlayersoftheeconomy.Although,theinternationaltradeeconomygatewaysattractmuchoftheattentionandcandominatetheplanningagenda,thedomesticmanufacturing/agriculturalandthedistributionurbaneconomiesplayakeyroleinthefreightsystem.Consequently,planningresourcesarerequiredatalllevels,fromthelargeMetropolitanPlanningOrganizationstothelocaljurisdictions.Itisimportantalsotorecognizethatacrossallthesectorsandeconomies,congestion(initsvariousforms)isakeyfactorthathindersmaximizingassetutilization,andshouldbeapriorityforplanningorganizations.Urbanfreightisalsoplaguedwithmanyinefficienciessuchaslackofparkinginfrastructure,conflictingregulations,andhighercostsofconductingbusinessinmanylargedenseareas.

Planningeffortswillallowidentifyingthetypesoffreightbehaviorsthatneedtobefosteredormitigatedamongthevariousstakeholders

Thesebehavioralchanges,willrequireinmostcases,thedesignofeffectiveincentiveprograms.Theseprogramscouldincludeadequaterecognitionsprograms,financialornon-

21Barber, D., & Grobar, L. M. (2001). Implementing a statewide goods movement strategy and performancemeasurementofgoodsmovementinCalifornia.METRANSTransportationCenter.

22HavemanJ.andK.Monaco(2009).Comprehensivetruckmanagementprogram:economicimpactanalysis.Availablefrom:http://www.portofoakland.com/pdf/maritime/ctmp/ctmp_Beacon_Final.pdf?utm_source=redirect&utm_medium=old_site_request

23Giuliano,G.,&O’Brien,T.(2007).Reducingport-relatedtruckemissions:TheterminalgateappointmentsystematthePortsofLosAngelesandLongBeach.TransportationResearchPartD:TransportandEnvironment,12(7),460-473.

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monetaryassistance,orpricingandtaxationtypeofschemes.ThereareanumberofprogramsintheStatetryingtoachievehigherlevelsofsustainability.However,theseprogramsdonotfullyconsideroperationalorlogisticschanges,andforthemostpart,concentrateontechnologicalimprovements.

Participatorystakeholderengagement

Eachindividualstakeholderisorhasinvestedgreateffortstoimprovehowtheyoperate.Everycompanyhasanincentivetoinvestintechnology,planning,andinfrastructureinordertostreamlinetheiroperationsandtobemoreefficientgiventhepressuresofthesupplychain.Inordertocontinuebeingcompetitiveinamarketwhereratesareattheirlowest,companiesarerequiredtooperatewithhighlevelsofsophisticationandplanning.However,whileeachindividualcompany,industry,ormodeisorganizingitselfinwayswhicharemosteffectiveandefficientforitself,thesupplychainasawholemaystillbenefitfromsomethird-partyincentiveswhichcreateevengreatersystemefficiency.Thisinturn,requiresthedevelopmentofsystemlevelperformancemeasuresthatareconduciveofsystem-wideefficiencies.

Currently,therearealreadyongoingeffortsforsupplychainoptimizationandportoptimizationwhichareresultinginsignificantimprovementsandefficiencygains.Forexample,thePortofLongBeach’sGreenPortGatewayproject,fundedbyfederalandlocalsources,wasfinalizedin2015.Themainpurposewastoimprovetracks’infrastructuretoenhancerailefficiencyandexpandondockcapacityinthePortofLongBeachtohaulcargocontainersdirectlytoandfrommarineterminals24.Asaresult,750trucktripswillbeavoidedbyeachtrain.ThePortofLongBeachhasestablishedagoalofmoving35%ofcontainersbyrailinthenext5yearswhileaimingtoachievealongtermtargetof50%25.ThePortofLosAngelespolicyissimilar:toprovideasmuchrailinfrastructureasnecessary,andfacilitateintermodallogisticssuchthatthemovementofdirectintermodalcargo(approximately40-50%,dependinguponterminalandsteamshipline)viaon-dockrailismaximizedtothegreatestextentpossible.Theresultsfromeffortssuchasthese,highlighttheimportanttorecognizetherolethatplanning,collaborationandcooperation,andincentivescanhavetofurtherproducemulti-modalandsupplychainefficiencies.Consideringhowdiverseeachstakeholder’soperationscanbe,withtheirownconstraintsandopportunities,developingappropriatestrategiesrequiresinsightsanddetailedanalysisofhoweachsupplychainoperates.Oftenthisisinformationthatonlyspecificindustryexpertscanprovide.

Fosteringinformationsharing

Itisimportanttodevelopthemechanismstofosterinformationsharing.WhetheritisthroughStrategyDevelopmentGroups,TaskForcesoranyothercollaborativespaces,publicagenciesshouldactivelyengagethevariousstakeholdersinthefreightandothersectorstofullyidentify24PortofLongBeach(POLB)(2015c),“GreenPortGatewayRailProject:FactSheet”,http://www.polb.com/civica/filebank/blobdload.asp?BlobID=10973,accessedOctober2015

25Railwaytechnology(2015),“California'sPortofLongBeachcompletes$93mGreenPortGatewayrailproject”,September18,http://www.railway-technology.com/news/newscalifornias-port-of-long-beach-completes-93m-green-port-gateway-rail-project-4673539,accessedOctober2015

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thekeyproblems,anddevelopsoundsolutions.Furthermore,informationsharingmaynotonlybeincentivizeforplanningpurposes,butalsotorecognizethevalueofinformationasaninputandoutputtooperationalprocesses.AllstakeholdersparticipatinginthisFreightEfficiencyStrategyDevelopmentGroup(FESDG)haveidentifiedtheneedtomanageinformationflows,thusdevelopinginformationtechnologiesandinfrastructureareamust.However,itisalsoimportanttounderstandthefullimplicationsoftheseefforts,becauseoftheveryvalueofinformation.Theresolutionofthedata,privacyconcerns,openorcontrolledaccess,thestructureofthemanagingagency,andthevalidityofthesources,arejustafewamongthenumberoffactorsthatneedtobeaddressedwhendevelopingsuchinformationsystemsandsharingpractices.

Other

Whileacompanionpaperfocusesonspecificstrategiestoimproveassetutilization,itisalsoimportanttohighlighttheneedtodevelopplans,agreementsandengageinconversationstoaddresslaborissuestooptimizesuchresources.Labordifficultiesimpactallfacetsoffreight,frommodestofacilities.Whilesomeoftheinefficienciesmaybedrivenbysafetyconcernsandtheassociatedregulations,itisimportanttoconsiderthefullspectrumofimpactsthatregulationsanddecisionscanhaveacrossotheroperationalandtacticalfactors.Laborissues,suchasdrivershortages,couldalsobeaddressedbyinvestinginworkforcedevelopment.

Investinginresearch

Ingeneral,tryingtoachievethegoalofimprovingfreightefficiencywillrequirecoordinatedeffortsbetweenthepublicandprivatesectors,academia,communities,andanyotherstakeholder.Itisnotlikelythatasinglestrategywillresultinsignificantimprovements.Thisisacomplexsystemrequiringcomplexsolutions.Asaresult,itisimportantthatpublicandprivateagenciesandorganizationssupportresearcheffortsthatcanhelpshedlightintothevariouscomplexissuesaffectingthesystemandpotentialspecificsolutions.

STRATEGIESTOMAXIMIZEASSETUTILIZATIONINTHECALIFORNIAFREIGHTSYSTEM:PARTII–STRATEGIES


LeadAuthor:MiguelJaller,UniversityofCaliforniaDavisWorkingGroupMembers:AlisonBird,FedEx;MikeChristensen,PortofLongBeach;ChrisShimoda,CaliforniaTruckingAssociation;AnnieNam,SouthernCaliforniaAssociationofGovernments;LeeKindberg,MaerskLine;KerryCartwright,PortofLosAngeles;andElizabethFretheim,Walmart

AbouttheFreightEfficiencyStrategiesDevelopmentGroupInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.AbouttheNationalCenterforSustainableTransportationTheNationalCenterforSustainableTransportationisaconsortiumofleadinguniversitiescommittedtoadvancinganenvironmentallysustainabletransportationsystemthroughcutting-edgeresearch,directpolicyengagement,andeducationofourfutureleaders.Consortiummembersinclude:UniversityofCalifornia,Davis;UniversityofCalifornia,Riverside;UniversityofSouthernCalifornia;CaliforniaStateUniversity,LongBeach;GeorgiaInstituteofTechnology;andUniversityofVermont.Moreinformationcanbefoundat:ncst.ucdavis.edu.DisclaimerThecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmanyindividualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensusonthepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinionorpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedtoinformandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightActionPlan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattemptedtoincludedissentingopinionsandareasofconcurrencewheretheymayexist.ThisdocumentisdisseminatedunderthesponsorshipoftheUnitedStatesDepartmentofTransportation’sUniversityTransportationCentersprogram,intheinterestofinformationexchange.TheU.S.GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.NordoesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.GovernmentandtheStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.

AcknowledgmentsThisstudywasfundedbyagrantfromtheNationalCenterforSustainableTransportation(NCST),supportedbyUSDOTandCaltransthroughtheUniversityTransportationCentersprogram.TheauthorswouldliketothanktheNCST,USDOT,andCaltransfortheirsupportofuniversity-basedresearchintransportation,andespeciallyforthefundingprovidedinsupportofthisproject.

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TABLEOFCONTENTSEXECUTIVESUMMARY...................................................................................................................3Abstract..........................................................................................................................................6IntroductionandBackground........................................................................................................6ImprovingPerformanceoftheDistributionEconomy...................................................................9

VoluntaryOff-HourDelivery(OHD)Programs(DemandManagement)..................................11

Receiver-ledConsolidation(CollaborativeLogistics)...............................................................16

InternationalGateways................................................................................................................17DevelopmentofaChassisPoolofPoolsFullyIntegratedSystem(CollaborativeLogistics)....19

ImprovementofTrafficMitigationFeePrograms(DemandManagement)............................21

ImplementAdvancedAppointment/ReservationSystems(DemandManagement).............23

DevelopinganIntegratedSystemforDrayOperationsandServices(CollaborativeLogistics)26

LoadMatchingandMaximizingCapacity(CollaborativeLogistics).........................................27

AllLayersoftheEconomy............................................................................................................29RelaxingVehicleSizeandWeightRestrictions(TrafficManagement).....................................29

SummaryofStrategies.................................................................................................................31

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StrategiestoMaximizeAssetUtilizationintheCaliforniaFreightSystem:PartII–Strategies

EXECUTIVESUMMARYThispaper(thesecondofatwo-partseries)buildsuponthediscussionofthefreightsystemandkeyinefficienciesinCalifornia(discussedinPartI)andputsforwardasetofstrategiestargetedatimprovingsomeofthoseinefficiencies.Thepaperfocusesonthosethatcouldhelpimproveormaximizeassetutilizationbyfosteringcollaborativelogistics(CL)practicesand/orfreightdemandmanagement(FDM).CLpracticesaredefinedasthoseactivitiesinitiated,maintained,and/orconductedbydifferentsupplychainorfreightsystemstakeholdersinwhichtheycollaborate,coordinate,orcooperateintermsofresources,knowledge,assetsorinformationtoachieveoperationaloreconomicefficiencyimprovementsofalargersystem.And,FDMstrategiesaredefinedastransportationpoliciesthatseektoinducechangesindemandpatternsandfreightbehaviorstoincreaseeconomicproductivityand/orefficiency,sustainabilityandenvironmentaljustice.Becauseoftheverynatureofthesystemitself,strategiesdonotworkinisolation,andeachstrategymayrequirecomplementarystrategiestobefeasibleandimplementable(e.g.,sponsoredprogramstoacquiretechnology,incentivestofosterbehavioralchanges,fundingforcapitalinvestments).

Thepaperprovidesinsightintoexpectedimpacts,planning,technicalandoperationalrequirements,andevaluationmetricsforeachstrategybyanalyzinganumberoffactorssuchas:

• Nature of the Strategy: Collaborative logistics practices (collaboration/cooperation) orfreightdemandmanagement.

• Geographic scope of the inefficiency/improvement strategy: Area(s) where theinefficiency is acute, including at international gateways, on-road sections of thedistributionnetwork,andurbanareas.

• Expectedbenefits:Anticipatedbenefitsofthestrategies(i.e.,reducecongestion,increaseenvironmental sustainability, enhance safety and security, enhance economiccompetitiveness,increaserevenuegenerationandenhancelivability)

• Levelofimplementationeffort/time/cost:Estimatedinputsrequired.

• Primary stakeholders targeted by the strategy: Stakeholders directly affected by thestrategy.

• Stakeholders’ role in the implementation/planning effort: Stakeholder type(s) andanticipatedrole(s).

• Potential for unintended consequences: Any undesirable impacts that could be linkedwithastrategy.

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Theresearchprocessincludedacriticalreviewoftheavailableinformation(e.g.,researchreports,operationalreports,implementationprograms,pilottests)ofcurrentfreightoperations,discussionsandstakeholderengagement(academia,publicandprivatestakeholders,andgovernment)toidentifystrategiesthatcouldhelpimprovetheefficiencyoftheCalifornia’sfreightsystem.Theauthorsselectedgeographicscope(e.g.,layeroftheeconomy)asacategoricalfactoranddiscussedthosestrategiesthatwouldmainlyaffectthedistributioneconomyandtheinternationalgateways.Resultsfromtheprocessallowidentifyingthefollowingpotentialstrategies:

• VoluntaryOff-HourDeliveryPrograms.Thisstrategyisbasedonavoluntaryprogramofpick-upanddeliveryoperationsintheoff-hours.

• Receiver-led Consolidation.This type of strategies seeks to foster behavioral changeswithin supply chains by taking advantage of the power of receivers to push for cargoconsolidation.

• DevelopmentofaChassisPoolofPoolsFullyIntegratedSystem.TheDevelopmentofaChassis-PoP fully integrated system that seeks to transition the current PoP to aninformation and management system that provides the adequate type, quantity andqualityofchassisavailable,andofferssimplifiedadministrativeandbillingservices.

• ImprovementofTrafficMitigationFeePrograms.• Implement Advanced Appointment/ Reservation Systems. Seeks to develop and

implement and advanced appointment and reservation flexible system that integrateswithotherinformationsystemstomaximizeassetutilizations.

• DevelopinganIntegratedSystemforDrayOperationsandServices.Thisstrategyseeksto foster the development of cooperation and collaborative agreements betweendrayageoperators,beneficialcargoowners,andinsomecases,shippinglinesandportterminals,toofferasharedservice.

• LoadMatchingandMaximizingCapacity.Therearemanyvariationsofloadmatching;examples includematchingemptycontainerswith loads; first come, first takepickups;and platforms tomatch small loadswith available space in containers which are notalreadyfull.

• Relaxing Vehicle Size andWeight Restrictions.Allowing increases in truck lengthandsizewouldprovidetheopportunityforsignificantgainsinefficiencyforcertainportionsofthefreightindustry.

Eachstrategyshowedthatthereisvariabilityinthepotentialfortheirimpacts,thelevelsofeffortneededfortheirimplementation,andthetypeofstakeholdersinvolvedintheplanning,research,andimplementationphases.Someofthestrategiesarelikelytobewidelyunderstoodbythepractitionercommunity,whileothersrequirecarefulanalysisandimplementationtoavoidunintendedconsequences.Aqualitativeassessmentofthestrategiesshowedthatthesestrategieshavethepotentialtogeneratepositiveeffectsintermsofincreasedoperationalefficiency,reducedcongestion,andimprovedenvironmentalsustainability;whilenotgeneratingmajorimpactsonsafety,securityandenhancinglivability.However,themagnitudeofthosebenefitscouldnotbeestimated,asadditionalresearch,simulation,modelingandanalysesarerequiredtoidentifythecorridors,and/orspecificlocations(orstakeholders)wherethosebenefitswouldberealized.Theanalysesalsoindicatethatthedevelopmentand

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implementationofsomeofthesestrategies,althoughmainlytobeinitiatedbytheprivatesector,wouldrequirecriticalexternalplanning,financialandpolicysupportfromlocal/regional/State/Federalgovernment,planningagencies,andotherpublicauthorities.And,asalsodiscussedinPartIofthistwo-partseries,theanalysesshowedthatthereisnosinglestrategythatcouldaddresstherangeofinefficienciescurrentlyaffectingtheCaliforniaFreightSystem.Whilesomeofthestrategiesareintendedtomitigatepressingissues,otherscouldhelptoadaptandbeabletomitigatetheimpactsoffuturetrends,andoperationalpatterns.Designingaplantoimprovethefreightefficiencyshouldconsiderasetorpackagesofcomplementarystrategies.

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AbstractThispaper(PartIIofatwo-partseries)discussesthekeyfindingsfromacollaborativeeffortbetweenacademia,publicandprivatestakeholders,andgovernmenttoidentifystrategiestoimprovetheefficiencyoftheCalifornia’sfreightsystem.

Thefreightsystemismulti-facetedandtherecouldbeamyriadofpotentialstrategies;however,thepaperfocusesonthosethatcouldimproveorhelpmaximizeassetutilizationbyfosteringcollaborativelogistics(CL)practicesand/orfreightdemandmanagement(FDM).Thestrategiesanalyzedinclude:receiver-ledconsolidation;voluntaryoff-hourdeliveryprograms;developmentofanintegratedChassisPoolofPools;integratedsystemfordrayservices;loadmatchingandmaximizingcapacity;improvingTrafficMitigationFeeprograms;implementingadvancedappointmentandreservationsystems;andrelaxingvehiclesizeandweightrestrictions.Thepaperdiscusseseachstrategytermsofitsnature(CLorFDM);thegeographicscopeoftheinefficiencyorimplementation;theexpectedbenefits;levelofimplementationeffort/time/cost;theprimarystakeholderstargeted;thestakeholders’roleintheimplementation/planningeffort;thepotentialforunintendedconsequences;andbarriersforimplementation.

Theresearchshowedthatthereisgreatvariabilityinthelevelofdataavailable(e.g.,researchreports,operationalreports,implementationprograms,pilottests)toconductdetailedassessments,highlightingtheneedforadditionaleffortstobeabletoestimatethemagnitudeofthepotentialeffectsofeachstrategytoreduceinefficiencies(e.g.,congestion/delays,environmentalemissions,safety,andeconomicimpacts,andcosts,amongothers).However,stakeholderengagementduringtheresearchprocessallowedforaqualitativeassessmentbasedonempiricalevidencefromon-goingefforts.

IntroductionandBackgroundInPartI,wediscussedsomeofthecharacteristicsoftheCaliforniaFreightSystem,somekeyinefficiencies,andimportantaspectstoconsiderwhenaddressingsuchissues.PartIIdelvesintostrategiestoaddresssomeofthoseinefficiencies.Thefreightsystemismulti-facetedandtherecouldbeamyriadofpotentialstrategies.Thispaperfocusesonthosethatcouldimproveormaximizeassetutilizationbyfosteringcollaborativelogistics(CL)practicesand/orfreightdemandmanagement(FDM)strategies.Forthepurposeofthispaper,CLpracticesaredefinedasthoseactivitiesinitiated,maintained,and/orconductedbydifferentsupplychainorfreightsystemstakeholdersinwhichtheycollaborate,coordinate,orcooperateintermsofresources,knowledge,assetsorinformationtoachieveoperationaloreconomicefficiencyimprovementsofalargersystem.And,FDMstrategiesaredefinedastransportationpoliciesthatseektoinducechangesindemandpatternsandfreightbehaviorstoincreaseeconomicproductivityand/orefficiency,sustainabilityandenvironmentaljustice.ItisimportanttomakethedistinctionbetweenFDMandfreighttrafficcontrol.Freighttrafficcontrolstrategiestrytomodifythefreighttrafficinthenetwork,withoutconsiderationoffreightdemand,i.e.,highertollsinahighway.Instead,FDMstrategiestrytomodifyfreightdemandthatcouldtranslateintoareducednumberoffreighttrips.

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Becauseoftheverynatureofthesystemitself,strategiesdonotworkinisolation,andeachstrategymayrequirecomplementarystrategiestobefeasibleandimplementable(e.g.,sponsoredprogramstoacquiretechnology,incentivestofosterbehavioralchanges,fundingforcapitalinvestments).Thisisespeciallythecaseforcollaborativeandcooperativebasedstrategies.Ithasbeenalongstandingpracticeinthefreightsystemtoengageincollaborativeorcooperationagreements,whetherbysharinginformationandknowledgeorphysicalassets.Thishasbeenthecasewhenfacilitatedbyathirdpartywhichcandemonstrateultimatebenefitstocargointerestsandcarriers.Regardlessofcollaborativeandcooperativebehaviors,thesupplychainalsoremainsanexceptionallycompetitiveplace,andconsumersaroundtheglobeandinyourneighborhoodalikebenefitfromthecontinualdownwardpressureontheratespaidtotransportgoods.

Thepaperdiscussessomespecificstrategiesandprovidesinsightintoexpectedimpacts,planning,technicalandoperationalrequirements,andevaluationmetrics.Error!Referencesourcenotfound.showsasummaryofthetypesofsuggestedimprovementstrategies.

Thekeyfactorsidentifiedandanalyzedforthesestrategiesinclude:Thekeyfactorsidentifiedandanalyzedforthesestrategiesinclude:

• Nature of the Strategy: Collaborative logistics practices (collaboration/cooperation) orfreight demand management. Strategies may fall into either category, or may be acombinationofboth.

• Geographic scope of the inefficiency/improvement strategy: Area(s) where theinefficiency is acute, including at international gateways, on-road sections of thedistributionnetwork,andurbanareas.Moredetailedgeographicscopescanbe:statewide,or specific to a layer of the economy, freight corridors, a certainmetropolitan area, orparticular locationswithin the State. Considerationsof scopeacknowledge the fact thatthefreightsystem,andthesupplychainswithinit,spanacrossvariousgeographicareas,someofwhichextendbeyondCalifornia.

• Expectedbenefits:Anticipatedbenefitsofthestrategies.Strategieswillbeabletoaddressspecific issuesandinefficienciesbasedonthebenefitstheyareexpectedtobringabout.Benefitsmayinclude:

o ReducedCongestion

o IncreasedEnvironmentalSustainability

o EnhancedSafety

o EnhancedSecurity

o EnhancedEconomicCompetitiveness

o IncreasedRevenueGeneration

o EnhancedLivability

• Level of implementation effort/time/cost: Estimated inputs required. While somestrategiesmay require lower levels of implementation and design effort, smaller costs,andshorter implementationscales,othersmayrequire largecommitmentsofresources,

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coordination, planning and policies. It is important to consider these factors whenexaminingthefeasibilityandviabilityofstrategicoptions.

• Primary stakeholders targeted by the strategy: Stakeholders directly affected by thestrategy.Stakeholdertypescaninclude:shippers,receivers,orcarriers.Definingprimarystakeholdershelpstoidentifythetypesofmodes,industriesorfreightfacilitiesthatwouldbe directly impacted by the strategy. This is significant, for instance, because it isimportanttobeabletoanticipatedetailsinregardstotrafficgeneration(includingheavy-dutytraffic,lightdutytraffic,through-traffic,largetrafficgenerators(e.g.,ports,airports,andwarehouses),rail,maritime,andinlandwaterways,amongothers).

• Stakeholders’ role in the implementation/planning effort: Stakeholder type(s) andanticipated role(s). Strategies analyzed in this paper will require the participation ofvarious stakeholders. Nearly all efficiency strategies will require private sectorstakeholderstotaketheleadforthesuccessfulimplementationofsuchstrategieswithintheir supply chains. Additionally, public entities will need to provide critical externalplanning,financial,orpolicysupport.

• Potential for unintended consequences: Any undesirable impacts that could be linkedwith a strategy. It is imperative to analyze, anticipate, and avoid unidentified andunintendedconsequences.Whilerealworldresultscannottrulybeknownuntilaftertheimplementationofan improvementstrategy,stepscanbetakentoanticipateandavoidanynegativeconsequences.Pastexperiencescanbeanalyzedtoshedlightontopotentialissuesandmethodstocircumventsuchissues.

Table1:SummaryofStrategies

Layer of the Economy Nature of the Strategy StrategyCollaboration/ Cooperation Receiver-Led ConsolidationFreight Demand Management

Voluntary Off-Hour Deliveries

[Chassis] Pool of Pools (C-PoP)Integrated Dray ServicesLoad Matching/ Maximizing CapacityImproving Traffic Mitigation Fee ProgramsImplement Advanced Appointment/Reservation Systems

All Traffic ManagementRelaxing Vehicle Size and Weight Restrictions

Collaboration/ Cooperation

Freight Demand Management

Trade and Manufacturing Economies

Distribution Economy

TheremainderofthispaperwilldiscussinSectionII,thosestrategiesrelatedtothedistributioneconomy;SectionIIIfocusesontheinternationalgateways;andSectionIVprovidesasummaryoverviewofthevariousstrategieswithrespecttotheirimpactsandotherplanningfactors.

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ImprovingPerformanceoftheDistributionEconomyThedistribution(urban)freightsystemisusuallyoverlooked,despitethefactthatitcanrepresentthevastmajorityofthefreighttrafficinaregion.Thistrafficincludesfreightandservicestripstocommercialestablishmentsaswellasresidentiallocations.AsdiscussedinPartIofthispaperseries,insomecases,internaldistributioncanrepresentupto80%ofthefreighttraffic1andareducednumberoflocations(largebuilding,conglomerateofestablishments)withinanurbancoremaycouldgeneratemorefreighttrafficthanaseaportorairport2.

Transportationpolicyshouldensurethatfreightismovedasefficientlyaspossible,ashamperingtheflowofcargoisboundtohaveanegativeeffectontheeconomy.Improvingtheefficiencyofthesystemguaranteesthatfreightshipmentsarereliableandarriveontimesothattherearenoeconomiclossesduetolostsales.Inaddition,reliableoperationswouldincreasebusinessthroughputbyanefficientsupplyofrawmaterials.Arecentprojectfundedbythe(TransportationResearchBoard)NationalCooperativeFreightResearchProgram(ProjectReport33)conductedanin-depthanalysisofthevariouspublicandprivatesectorstrategiesthatcouldbeimplementedtoimprovefreightsystemsperformanceinmetropolitanareas3.Thereportproducedacomprehensiveclassificationandcriticalexaminationofthenationalandinternationalevidenceconcerningtheiroverallperformance.Morethan40mainstrategiesarediscussedandgroupedintosevenmajorcategories.Advantages,limitations,planningneedsandeffortsarediscussedforeachofthestrategies.Theserangefromthoseaddressingsupplyatoneendanddemandattheotherend.Operationalandfinancialstrategiesareinthemiddleofthecontinuum.Thecategoriesinclude:InfrastructureManagement;Parking/LoadingAreasManagement;Vehicle-RelatedStrategies;TrafficManagement;Pricing,IncentivesandTaxation;LogisticalManagement;andFreightDemand/LandUseManagement(seeFigure1).

1http://scagrtpscs.net/Documents/2016/draft/d2016RTPSCS_GoodsMovement.pdf2Jaller,M.,X.Wang,and J.Holguín-Veras (2015). LargeUrbanFreightTrafficGenerators:Opportunities forCity

LogisticsInitiatives.JournalofTransportandLandUse(JTLU),8.1,1–173http://onlinepubs.trb.org/onlinepubs/ncfrp/ncfrp_rpt_033.pdf

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Figure1:Urbanfreightstrategies4

Thereport,discussesthepotentialofsomeofthesestrategiestohelpalleviatemajorissuessuchascongestion,environmentalandhealthimpacts,andimprovequalityoflifeandthecompetitivenessoftheeconomy.However,thepotentialresultsfromtheimplementationofeachstrategyaredependentonsoundplanningandimplementationefforts.Planningagenciesandprivatesectorbusinessesshouldcarefullyanalyzethefeasibilityandapplicabilityofthesestrategiestotheircontextandspecificissues.

Onekeyaspect,relatedtofreightefficiencyinurbanareasistheadequateallocationandmanagementofparking,loadingandunloadingareas5.Inmanylocations,curbspaceisrequiredtoconductfreightoperations(freightpick-upsanddeliveries);butatthesametime,otherusersareconstantlycompetingforthescarceresource.Inothercases,assigningthehighestprioritytofreightmaystillrequireadditionaloperationalchangestoavoidtheissuesassociatedwithurbanfreightparking.Freightparkingisakeyissuefortheindustrythatextendsbeyondtheurbanenvironments.Thisissueshouldbeintheagendaofanyplanningandtransportationorganization.Similardifficultiesareexperiencedwhenanalyzingnetworkcapacity.ExamplesofFDMincludeoff-hourdeliveryprogramswhichincentivizereceiversofthecargotoacceptdeliveriesintheoff-hours;andstaggeredfreightprogramsinwhichbusinessescoordinatetheirdeliveriesorpick-upsthroughouttheday,ratherthanconcentratingtheminspecifictimeperiods(usuallyduringtrafficpeakperiods).Consideringtheexperiencesfromnationalandinternationalpilottestsandimplementationsprograms,VoluntaryOff-HourDeliveryProgramshavethepotentialtoplayakeyroleintheState’sefforttoimprovefreightefficiency,astheyseektomodifyfreightbehaviors.IntermsofCLpractices,amongthevariousalternatives,Receiver-ledconsolidationprogramsshowgreatpotentialastheyoffersimilar

4http://onlinepubs.trb.org/onlinepubs/ncfrp/ncfrp_rpt_033.pdf5Jaller, M., J. Holguín-Veras and S. D. Hodge (2013). "Parking in The City: Challenges For Freight Traffic."TransportationResearchRecord2379:46-56.

• RingRoads,UpgradedInfrastructure,IntermodalTerminals• Removalofgeometricconstraints,rampsforforkliftsInfrastructureManagement

• On-streetparking,loadingzones,reservationsystems• Off-streetparking,enhancebuildingcodes,upgradedinfrastructure

Parking/LoadingAreasManagement

• Emissionstandards• LownoisedeliveryprogramsVehicle-relatedStrategies

• Accessandvehiclerestrictions,truckroutes,lowemissionzones• TrafIiccontrolandlandmanagementTrafIicManagement

• Roadpricing,parkingpricing• Recognitionprograms,certiIication,incentivesPricing,IncentivesandTaxation

• Cargoconsolidation• ITS,lastmiledeliverypracticesLogisticalManagement

• Off-hourdeliveryprograms,consolidation• Landusepolicy,largetrafIicgeneratorsFreight/LandUseManagement

11

benefitstotraditionalcargoconsolidationschemeswhileovercomingsomeofthelimitationsandimplementationchallenges.Thefollowingsectionswilldiscussthesetwostrategies.

VoluntaryOff-HourDelivery(OHD)Programs(DemandManagement)

Off-hoursisusuallyassociatedwithlateeveningsandearlymornings,thoughitvariesfromindustrytoindustry,geographiclocationandlanduse.Thisstrategyisbasedonavoluntaryprogramofpick-upanddeliveryoperationsintheoff-hours.Usually,participationisfosteredbyofferingincentivestoreceiverestablishmentssothattheychangebehaviorsandallowtheirsuppliersorcarrierstomakeOHD.Althoughparticipationisvoluntary,asuccessfulimplementationoftheprogramrequirespublicsectorsupport.AttheStateorFederallevel,publicagenciesshouldincorporatethetypeoffundingandresourcesupportneededforthedesignandimplementationoftheprogramintothelegislation.Theprogramwillthenbedesignedandimplementedbylocaljurisdictions.Fundingandsupportwillbeneededforthedevelopmentofthespecifictypesofprograms,thedesignoftheincentivescheme,stakeholderengagementandoutreachactivities,andmoreimportantlyforthestafftoimplementthevariousactivitiesassociatedwiththeprogram.Although,thereareanumberofsuccessfulexperiences,carefuldesignandplanningwillrequireadditionalresearchtofullyunderstandthefreightbehaviorsintheareasunderanalysis.Theresearchwillhelpidentifythepotentialtargetmarketsforimplementation,thetypesandlevelsofincentives,thebarriersforimplementation,andtoidentifytheappropriateperformancemeasurestobeused.

Theresourcesrequiredfortheincentiveprogram,willdirectlydependonthetypeofOHDprogram.Forinstance,thetypeofincentivesanalyzedintheliteratureincludethosethatarecontinuouslyofferedthroughoutthedurationoftheprogram,andthosethataregivenasaninitialone-timeincentive.Incentivescouldbemonetaryorotherwise.TheprogramimplementationprocessinNewYorkCityevaluatedvarioustypesofincentives6.Themonetaryincentivesrangedfromaone-timeincentiveof$500toa$50,000incentivewithshiftpotentialsrangingfrom10%to30%.Theindustrysectorofthetargetedstakeholdersisakeyfactordeterminingthereachofanincentivepackage.Table2summarizessomeofthestudiesthathaveinvestigatedthereceiverbehaviorinrelationtothelikelihoodtoparticipateintheprogram.Ingeneral,researchresultsshowthatfoodandretailrelatedindustriesaremorelikelytoparticipate.Similarly,

Table3showstheresultsfortwodifferent(butcontiguous)locationsinNewYorkCity.

ThevariousexperiencesandinternationalstudiesaboutthepotentialimplementationofOHDprogramsindicatethatcarrierscanhavedirectbenefitsseenintheformofreductionsintraveltimesduringtheoff-hours(giventhatlowertrafficvolumesallowforhigherspeeds)7.InNewYorkCity,modestshiftpercentagescanproducebenefitsof5%toallnetworkusers.Moreover,

6Jaller,M., and J.Holguín-Veras (2013). “ComparativeAnalysesof the StatedBehavioralResponses toOff-HourDeliveryPolicies”.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):18-28.

7Holguín-Veras, J.,K.Ozbay,A.L.Kornhauser,M.Brom,S. Iyer,W.Yushimito,S.Ukkusuri,B.AllenandM.Silas(2011)."OverallImpactsofOff-HourDeliveryProgramsintheNewYorkCityMetropolitanArea."TransportationResearchRecord2238:68-76.

12

duringapilottestconductedintheCity,thetravelmeanspeedsfromthewarehousestothefirststopinthedeliveryrouteimprovedby70%.Otherbenefitsinclude:

• Reductionsinservice/deliverytimesduetonothavingtowaitfortheirdelivery/parkingspot;• Reductioninidletimessincetherewasnowaitforthereceivertoacceptthecargo;• Easyaccess toparking, loadingandunloadingzonescloser to theestablishment.Thisallowed the

carrier tounloadand transport larger shipments, thus reducing service times, and in somecases,tripstotheestablishment8;

• Reductions in traffic infractions (with pre-implementation infractions in the order of $500 to$1,000+pertruckpermonth);and

• In some cases, travel time reductions allowed carriers to include additional stops per tour, thusminimizingtheroutessenttothecity.Thistranslatesinhigherloadfactors,andassetutilization.

Theprogram,couldgenerateadditionalcostsforcarriersincludingwagedifferentialtodriversintheoff-hours;capitalinvestmentsininformationtechnologysystemstoimproveoperations,e.g.,routing,dispatching,monitoring;andincreasedsecuritycosts.However,accordingtointerviewsandtheexperiencesoftheparticipants,theirbenefitswerehigherthantheincurredcosts.Itisimportanttorecognizethatsomecarriersarenotabletoparticipateinthistypeofprograms.Parcelandcourierservices,maynothavetheabilitytoparticipateduetotheircustomersunwillingnesstoparticipate,regulatoryconstraints,accessconstraints,andhoursofoperationsandservicerules,amongothers.

8Jaller,M.,J.Holguín-Veras,andS.Hodge(2013).ParkingintheCity:ChallengesforFreightTraffic.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):46-56.

13

Table2:Summaryofbehavioralresearch9

Variables HV 2007 HV 2013 DOM-S 2013 DOM-B 2013Industry SectorFood and beverage stores * +++ + +++Press and book * * +++ ++Clothing stores * + ++ *Apparel manufacturing * ++ * *Accommodation * * * ++Non-durable wholesalers * + * *Miscellaneous stores * + * *Performing arts * + * *Furniture stores * * * +Personal laundry services * - * *

Commodity: Alcohol +++ * * *Commodity: Wood Lumber ++ * * *Commodity: Food + * * *Commodity: Textiles/clothing + * * *Commodity: Medical supplies + * * *Commodity: Office supplies + * * *Commodity: Paper + * * *IncentiveTax deduction ++ * +++ +++One-time monetary incentive * +++ * *Trusted vendor * +++ * *Shipping discounts ++ ++ * *Public recognition * + * *Business support * + * *

Type of facility is single +++ * * *External warehouse * * ++ *Employment + * * *Number of vendors + * * *Number of deliveries * - * *

Commodity Received

Other receiver attributes

Notation:(*)denotesnotconsideredornotfoundstatisticallysignificant.(-)denotesalownegativeeffect.(+)denotesalowpositiveeffect.(++)denotesamoderatepositiveeffect.(+++)denotesahighpositiveeffect.Notes:NewYorkCityHV200710;HV201311;DOM-S201312thecaseofSantander;andDOM-B2013thecaseofBarcelona.

9Holguín-Veras, J., I. Sánchez-Díaz,M. Jaller, F.Aros-Vera, S.Campbell,C.Wang,andS.Hodge (2014).Off-HourDeliveryPrograms.CityLogistics:MappingTheFuture.E.TaniguchiandR.Thomson(eds).CRCPress,Taylor&FrancisGroup,BocaRaton,Fl.

10Holguín-Veras, J., M. A. Silas, J. Polimeni and B. Cruz (2007). "An Investigation on the Effectiveness of JointReceiver-Carrier Policies to Increase Truck Traffic in the Off-Peak Hours: Part I: The Behaviors of Receivers."NetworksandSpatialEconomics7(3):277-295.10.1007/s11067-006-9002-7

11HolguínVeras,J.,C.Wang,S.D.Hodge,I.Sánchez-Díaz,S.Campbell,S.Rothbard,M.Jaller,J.WojtowiczandR.Marquis (2013). "Unassisted Off-Hour Deliveries and Their Role in Urban Freight DemandManagement." (inreview).

14

Table3:ComparativeanalysesofthebehavioralresponsestoOHDindifferentgeographicareas13

Man. Man. Man. Bro. Man. Bro.Rec. Rec. Int. Rec. Rec. Int. Car. Car. / Int. Car. Car. / Int.

+++ (ii) ++ (ii) ++ (ii) ++ (ii)++ (iii) +++ (iv) + (v) + (vi)

Wood/lumber + + ++ +Medical supplies + + + -Paper + - + ++ + ++Alcohol + ++ -- - -Food + + - - -Metal + ++ + +Furniture + + -- - - -Electronics +Stone and concrete +++ --- -Textiles/clothing + +++Construction and hardware -- ++ --Office supplies +Petroleum/coal ++Plastic/rubber - ++ --Machinery - +++ -Household goods - -- - --Number of employees ++ + + ++ + +Increased operational costs -- -- -- -- -- --Hours of operation - - + +Shipments from NJ ++Number of deliveries +Accesibility to building ---- -- --- -No control of delivery times --Number suppliers +Truck drivers ++ +Containers from Baltimore ++Containers from Connecticut --Trips to Manhattan +++ +Located in Brooklyn ---Time/distance to first stop - -Trips to the Bronx and NJ --Type of facility ++ (vii) -- (viii)Line of business --- +++ (ix) +++ (x) -- (xi)Delivering to the Bronx -Union regulations -- -Parking related issues -- - --- -

(i) Only companies that receive and ship (vii) Single(ii) Request from customers (viii) Headquarters(iii) Toll savings only for petroleum/coal, wood/lumber, food, and textiles/clothing industries(iv) Toll savings (v) Financial reward for food, computer/electronics, and textile/clothing industries(vi) Financial reward for machinery/automotive and paper industries (xi) For Warehouse carriers

C1: Requests from customers and toll

savings

C2: Requests from customers and

financial rewards

Policy

Bro. Bro.

R1: Tax deduction for accepting OHD

R2: Shipping discounts for OHD

+++ ++ -- +++

Fact

ors i

mpa

ctin

g th

e be

havi

oral

res

pons

e to

the

polic

ies

+ (i)

(ix) For shipper, 3PL, trucking, warehouse and mover carriers(x) For shipper, manufacture, trucking and warehoue carriers

Indu

stry

Seg

men

tN

otes

:

Most likely to accept OHD (+++) to Least likely to accept OHD (---)

12Domínguez, A., J. Holguín-Veras and Á. Ibeas (2012). "Receivers’ response to new urban freight policies."Procedia-SocialandBehavioralSciences54:886-896.

13Jaller,M.,andJ.Holguín-Veras (2013).“ComparativeAnalysesof theStatedBehavioralResponsestoOff-HourDeliveryPolicies”.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):18-28.

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Inthecaseofreceivers,benefitsincludereliabilityimprovementsintheservicetimes,staffoptimization,andenvironmentalemissionsreductions,amongothers.Forthecaseswhentheestablishmentsareclosedduringtheoff-hours,costsmaybeincurredtohirepersonnel.Alternatively,unassistedoff-hourdeliveryprogramscanbedeveloped(useofdoubledoorsystems,closedcircuitTV,remoteaccesscontrol)14,15.

Anadditionalbenefitfromthestrategyistheimpactinthetrafficflowandparkingconditionsintheimplementationarea.AparkinganalysisinNewYorkCityrevealedthatabout25%oftheZIPcodesinManhattanhaveademandforfreightparkingthatexceedcapacity.Moreover,thestudyanalyzedthebenefitsofOHDtomitigatetheparkingissues.Inadditiontoalleviatingcongestionandparkingissues,estimatesforNewYorkCityshowthattheprogramcouldleadtoyearlyreductionsof202.7metrictonsofcarbonmonoxide;40tonnesofhydrocarbons;11.8tonnesofnitrogenoxide;and69.9kgofparticulatematter16;similaranalysesfortheMexicoFederalDistrictareaindicatethattheprogramcouldhelpoverallemissionbetween.8%and4%(seeFigure2)17.

Oneofthekeyaspectsoftheprogramisitsvoluntarynature.Onlythosebusinessesthatareabletoparticipate(withorwithouttheincentivepackage)willdoit.However,thereareseveralbarriersthatcouldhamperparticipation:trafficconstraintsduringtheoff-hours(regulationbanningfreightvehiclesduringthoseperiodsoftime);limitedaccesstothebuildingorbusinesses;staffingorscheduling;unionregulations;overtimecosts;driverissues;hoursofservicerules;safetyandsecurityreasons.Asmentionedbefore,theresearchhaveshownthatreceiverparticipationisvitaltothesuccessoftheprograms,ascarriersdonothavetheabilitytoimposeoff-hourdeliverytimestotheircustomers.Itisnotrecommendedthatoff-hourdeliveriesbemandatedasitcouldintroduceinefficiencies,increasecostsandexternalities,andreduceeconomiccompetitivenesstothosefreightoperationsthatcouldnotimplementthem.

Giventhebodyofknowledgeabouttheprogram,itcouldbeexpectedthatwithadditionalresearchtoexplicitlyconsiderspecificfreightbehaviorsinCalifornia,theProgramcouldbedesignedandimplementedinarelativelyshort-term.Though,theprogramwouldrequiretheinvolvementofalargenumberofstakeholderstoidentifyparticipants,conductplanningandresearch,pilottesttheincentiveprogram,implementandmonitor.Thedesignmustalsopayspecialattentiontomitigatingpotentialnoisedisturbancesandcommunityperceptions.ThistypeofFDMmustalsobeassociatedwithpassengerdemandmanagementstrategiestomitigatethepotentialissuesofinduceddemand.

14Holguín-Veras,J.,R.Marquis,S.Campbell,J.Wojtowicz,X.Wang,M.Jaller,S.Hodge,S.Rothbard,andR.Goevaers(2013).FosteringtheUseofUnassistedOff-HourDeliveries:OperationalandLowNoiseTruckTechnologies.TransportationResearchRecord(TRR),JournaloftheTransportationResearchBoard.(2379):56-63.

15Jaller,M.,X.Wang,andJ.Holguín-Veras(2015).LargeUrbanFreightTrafficGenerators:OpportunitiesforCityLogisticsInitiatives.JournalofTransportandLandUse(JTLU),8.1,1–17.

16 Holguín-Veras, J., J.M. Wojtowicz, C. Wang, M. Jaller, X.J. Ban, F. Aros-Vera, S. Campbell, X. Yang, I. Sanchez-Diaz, J. Amaya, C. González-Calderón, R. Marquis, S.D. Hodge, T. Maguire, M. Marsico, S. Zhang, S. Rothbard, K. Ozbay, E.F. Morgul, S. Iyer, K. Xie, and E.E. Ozguven. Integrative Freight Demand Management in the New York City Metropolitan Area: Implementation Phase. United States Department of Transportation, 2013.

17 Jaller, M., S. Sanchez, J. Green, and M. Fandiño (2016). Quantifying the impacts of sustainable city logistics measures in the Mexico City Metropolitan Area. Transportation Research Procedia. (12):613-626

16

ReductionsinVMT

RecutionsinVHT

ReductionsinCO2

ReductionsinPM2.5

Figure2:ExamplepotentialbenefitsfromtheimplementationofOHD

Receiver-ledConsolidation(CollaborativeLogistics)

Thistypeofstrategiesseekstofosterbehavioralchangeswithinsupplychainsbytakingadvantageofthepowerofreceiverstopushforcargoconsolidation.18Theobjectiveofthestrategyistoachieveareductioninthenumberofdeliveries.Thiscouldbeachievedby

18Holguín-Veras,J.,Sánchez-Díaz,I.FreightDemandManagementandthePotentialofReceiver-LedConsolidationprograms.Transport.Res.PartA(2015),http://dx.doi.org/10.1016/j.tra.2015.06.013

0.8%

4%

0.2%1.0% 0.8%

5%

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0% 0%

1%

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8.0%

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16%

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21%

0.15% 1% 1%

4%

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9%

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10%

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25%

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-

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-102030405060708090100

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17

reducingthenumberofsuppliersorvendors,orbyfosteringtheuseofurbanconsolidationcentersfromtheexistingsuppliers.Thegeneralbenefitsassociatedwiththistypeofstrategiesincludethosetothereceivers,suppliers,andthesystem.Receiversbenefitingfromhavingconsolidatedshipments,avoidingtheneedtodealwithmultiplevendors.Insomecases,thecanachieveeconomicbenefitsbybeingabletonegotiatepreferentialorvolumerates.Suppliersandcarrierscanincreaseproductivity,withthenegativeconsequencethatsomesupplierswillbereplaced.Theoverallreductionindeliveries,willtranslateinreducedfreighttrafficandtheassociatedconsequences.

ThefirstcasehavebeensuccessfullyimplementedthroughtheimplementationofDeliveryServicingPlans(DSP).19TheideabehindDSP,developedbyTransportforLondon,isthatcommercialestablishmentsinlargebuildingsorlargetrafficgenerators,orlargecorporationswithdecentralizedprocurementpracticesconducttripgenerationassessmentsandidentifypotentialsforconsolidation.InLondon,regulationrequiresthatnewdevelopmentsproposeconstructionlogisticsplansandDSPs.However,theseplansarenotsubsequentlyenforced,andlandlordsormanagersmaynothaveincentivestoinvesttheresourcesrequiredfortheirimplementation.ForanimplementationinCalifornia,thepublicagenciescoulddevelopincentivesschemestofostertheimplementationofthesetypesofplans.Successfulimplementationsinlargebuildingshaveshowntheirpotentialtoreducethenumberoftrucktripsgeneratedfrom20%to60%.20Consideringthatinlargedenseurbanareas,theremayexistlargetrafficgeneratorswhichcouldrepresentasignificantproportionofthetotalfreighttrafficandassociatedexternalities,theseplanscouldhelpimprovethefreightefficiencyandperformance21.AnalysesofthepotentialforimplementationofthistypeofstrategiesinNewYorkCity,showedthattheycouldreducetrucktrafficbetween6.5%and21%.

Publicagenciesshouldidentifythetypesofregulationsthatcouldfacilitatethedevelopmentofthesetypesofstrategies,consideringthatthefocuswouldbeonthereceiverofthecargo.Moreover,researchisstillneededtodesignprogramsthatconsiderthecharacteristicsandbehaviorsoftheCaliforniafreightsystem.

InternationalGatewaysTheinternationaltradeeconomyisofhighimportanceinCalifornia,especiallyduetothesheervolumeofcargohandledinSouthernCaliforniabytheSanPedroBayPorts.Approximately60%oftotalwestcoastintermodalcontainerspassthroughthePortofLosAngelesandLongBeach,andtheexceptionallybusyinternationalbordercrossingsbetweenCaliforniaandMexico.

Withrespecttotheseaports,alongwiththebenefitsofhandlingmorecontainersthananyotherportcomplexinNorthAmericacomethelogisticalinefficienciesofwaitsinandaroundterminals,congestionatcorridorsfeedingthesegateways,andotherissuesintroducedby19 Transport for London. (2013a). "Delivery Servicing Plans." Retrieved July 04, 2013, 2013, fromhttp://www.tfl.gov.uk/microsites/freight/delivery_servicing_plans.aspx.

20Transport for London. (2013c). "A PilotDelivery Servicing Plan for TfL’s PalestraOffices in Southwark: A CaseStudy." Retrieved July 12, 2013, 2013, from http://www.tfl.gov.uk/microsites/freight/documents/20090921-DSP-Palestra-Case-Study.pdf.

21Jaller,M.,X.Wang,andJ.Holguín-Veras(2015).LargeUrbanFreightTrafficGenerators:OpportunitiesforCityLogisticsInitiatives.JournalofTransportandLandUse(JTLU),8.1,1–17

18

labor-relatedfactors.Myriaddifferenttypesofinefficiencieswithinmarineterminalscanaffectboththetrucktrafficandvesseloperationsatinternationalgateways.Forexample,althoughnon-recurrent,portdowntimescannegativelyaffecttheshippingcompaniesthatowndelayedvessels.However,vesselsaretypicallyhandledefficiently,andmostoftheinefficienciesexistinthetransferofcontainersfromtheterminaltodrayman.

Portterminalinefficienciescanbeexacerbatedbythearrivaloflargerships,coupledwiththerapidincreaseinpopularityofVesselSharingAlliances(VSAs).VSAsareagreatexampleofcollaborativelogisticsstrategies,whereanumberofindependentshippinglinesconsolidatetoshareassetsandmaximizetheuseoftheirresources.Whilelargershipsandalliancesaretremendouslyimportantimprovementsinefficiencyforoceancarriers,theycanposeadditionallogisticalchallengesformarineterminals.Alargevesseldischargingcargofrommultipleoceancarrierscancomplicateterminalmanagement,aseachshippinglineinanalliancemayhaveitsownterminalagreements,truckingcontracts,dispatchingagreements,railroadagreementandoperationsmanagement.Insomecases,oncethecontainersareunloaded,allsynergiesdisappear.Theselargevesselscanalsocreatecargosurgesofmorethan10,000containermovespercall.ThisisalsocoupledwithVSAshavingasmanyassixcarriersinonevessel(withsomeothereffectssuchasthescatteringofcontainersacrossmultipleterminals).Thecallsurgescanresultinanincreasednumberofcontainerrepositioningmoveswithintheterminalsbeforetheboxesaredeliveredtoatrucker,furtherincreasingterminalcongestion.Whenthisprocessisrepeatedweekafterweek,itcanmakethedeliveryofcontainersmorecomplex,costly,andinefficient.

However,asVSAsarebecomingthenorm,andthegreatefficienciesandadvantagesoflargervesselsareinternalizedintothesupplychain,marineterminalsandpublicportauthoritiesareworkingeffectivelyandefficientlyinordertohandletheincreasesindemand.Positiveexamplesresultingfrompreparedness,planningandcollaborationincludetherecentexperiencesfromportcallsof15,000and18,000TEUvessels.Within10daysinDecember2015,thePortofLosAngeles(POLA)AMPTterminalhandled2ofthelargestvesselsevertocallaportintheAmerica’s(15,000+18,000TEUvessels);inFebruary2016,thePortofLongBeach(POLB)PCTterminalPCTterminalhandledtheBenjaminFranklin,a18,000TEUvesselaswell.AccordingtoPortAuthorityofficials,all3vesselcallswereextremelywellcoordinatedwithallsupplychainpartners,includinglabor,andnocongestionwasexperienced.

Giventhesechallenges,itisimportanttodevelopstrategiestofostercollaborationbetweenbeneficialcargoowners,portterminals,thetruckingandrailindustry,equipmentproviders,andancillaryfacilitiessuchaswarehousesanddistributioncenters.Althoughthesewouldbeprivatedriveninitiatives,publicfundingorincentivescouldbeusedtohelpsupportthedevelopmentofcollaborativerelationshipsinstrategicportionsofthesupplychainthatcouldhelpmaximizeassetutilization.Inaddition,fundscouldbeallocatedtoinvestigateandidentifythesuccessfactorsoftherecentmega-shiphandlingexperiencesmega-ships.ThefollowingsectionsdiscusssomestrategiesthatcouldbeusedtohelpmitigatesomeoftheissuespreviouslydiscussedandthoseinPartI.

19

Development of a Chassis Pool of Pools Fully Integrated System (CollaborativeLogistics)

Chassismanagementhasbecomeamajorissuefortheintermodalsupplychain,bothintermsofchassisavailabilityandalsolevelsofutilizationacrossthesupplychains.Theseissuesprimarilyemergedaftermanyoceancarriers´decidedtonolongerownandmanagetheirownproprietarychassisfleets.Ironically,manyofthesenewinefficienciesaretheresultofoceancarriers’movetowardsgreatersystemefficiencieswherebytheyremovedequipmentownershipbarriersandterminalspecificityissues.Theseissuespersistedintheintermodalsystemasaresultofthelines’traditionalchassisownershipandprovisionmodel.Forpurposesofthisstrategy,itisimportanttonotethatnomatterwhoownstheequipment,chassisarecriticaltointermodalism,anditisimpossibletomovecontainersbytruckon-roadwithoutthem.Asaresult,beingabletoreducethetimeandcostsofchassismanagementbyeliminatingshortagesormaintenanceproblemscouldimprovesystemefficiencyandbecomeacommercialadvantageintheservicesprovided22.

Tocopewithshortagesofchassis’,andalsogeneralavailabilityproblems,thePoolofPools(PoP)initiativewascreated.ThisprivateinitiativeiscomprisedbytheDirectChassisLinkPool(DCLP),TracPacificSouthwestPool(TPSP)andFlexi-VanLosAngelesBasinPool(FLBP)23.ThePoPhavealleviatedtheproblembyprovidingmorethan81,500chassistobeusedinterchangeablyandanewconfigurationofsuppliers.TheportsofLosAngelesandLongBeachutilize31,866chassisdailyrepresenting40%ofthetotalfleet.ThePoPhavehelpedreducecostsinoperatingprivatefleetsandhasaninterchangeablepooltobeutilizedamongallstakeholdersreducingflips24,decreasingtimesandfuelconsumption,aswellasgeneratingacollaborativeenvironmentwithstakeholderstoshareassetsandinformationabouttheiroperations.However,thePoPexperiencesanumberofissuesincluding25:

• “Thenumberofchassisdwellingonterminal forgreaterthan60days isalmost7,000units.Weneedhelpingettingtheseunitsbackintocirculation.”

• “ThenumberofOutofServicechassisisstillover5,000.Weneedhelpingettingtheseunitsrepairedandbackintoservice.”

• “Repositioningofchassiscouldbelimitedduringthisperiod,PoolofPoolswillneedeachMTOtoreleasesurpluson-terminalchassis.”

These,amongotherissues,provideimprovementopportunitiesforthePoP.Therefore,thisstrategysuggests:

TheDevelopmentofaChassis-PoPfullyintegratedsystemthatseekstotransitionthecurrentPoP toan informationandmanagement system thatprovides theadequate type, quantityandqualityofchassisavailable,andofferssimplifiedadministrativeandbillingservices.22http://www.fmc.gov/assets/1/Page/PortForumReport_FINALwebAll.pdf23http://www.morethanshipping.com/the-gray-chassis-pool-and-what-it-means-to-you/24“Needtotransferacontainerfromthechassisitisrestingupontoanotherchassis”,NCFRPReport2025http://www.pop-lalb.com,accessedNovember30th,2015

20

Aneffectiveprovisionofchassisrequirestheoptimalandreliableprovisionof“certified”equipmenttotruckers.Tobesuccessfulinthelongrun,thestrategyrequiresthattheprivateandpublicsectorworktogethertocreateareliableinformationandmanagementsystemthatprovidesanadequatequantityofchassisinoptimalconditions.Theschemeofa“graypool”requiresfullyinterchangeableequipment,simplificationofmanagementandbilling,goodandregularmaintenanceandrepairofassets,andthedevelopmentofrobustinformationsystemswhichprovidetoparticipantsinthesupplychaindataregardingequipmentavailabilitytimelyandaccurately.Havingthisinformationabouttheincomingequipmentcouldhelpdeterminethereconfigurationofchassisatterminalsandatvirtualandoff-siteyards,andimprovelevelofservice.Inaddition,theaveragestreetdwelltimeforchassisis4.5days,thusreducingdwelltimewillimprovetheavailabilityofchassis26.

AreportreleasedbytheFederalMaritimeCommission(FMC)inJuly201527,containsanoverviewofdiscussionsfromdifferentstakeholdersaboutportcongestionandsupplychainissues.Participantsagreedontheneedofmore“graypools”toprovidechassisinteroperability.Graypoolsaremosteffectivewhentherearen’trulesorprovisionslimitingmotorcarriersfromutilizinganyparticularchassis,orchassisprovider,andmotorcarriersareabletopicktheproviderfromthepoolthatbestsuitstheirrequirements.Thistypeofequipmentintermodalismispossibleonlywhenfacilitatedbylegalinterchangeagreements.Inthisregard,thereisaUniformIntermodalInterchangeandFacilitiesAccessAgreement(UIIA)28whichisanindustrycontractbetweentruckersanddrayagecompaniesandwaterandrailcarriersandleasingcompaniesthatservesasastandardinterchangeagreementforequipmentbutisnotappliedforchassis.ThePoPhasinstituteditsowninterchangestandardstofacilitateitspool.

TheimprovedChassis-PoPshouldcombineboththecollaborationofdifferentleasingcompaniesthatshareacommoninterchangeableagreementofequipmentbutcompetinginserviceandprice,andtheabilitytoimprovethelandoperationsattheportfacilitieswithinaseparateoff-terminalyardoryards.Ingeneral,itwouldhelpreducethenumberofflipsbetweentrucksandchassisandreducethetimesofrepairandinspection.Flipsandtripstodeliverchassisthatbelongtooneterminaloroperatorisaninefficiencyofthecurrentsystem.Moreover,itwouldhelpreducetruckturntimesatmarineterminals,increasingthenumberofturnspervehicle,reducethenumberofmovementsperchassis,andthenumberofoutofservicechassis.

ThenewChassis-PoPintegratedsystemwillalsohelptoimproveroadabilityinadditiontorelievingcongestionandinefficiency.TheFederalMotorCarrierSafetyAdministration(FMCSA)29requireschassistobeinoptimalconditionsbeforeinterchange,buttruckersatmarineterminalsareinconveniencediftheyareonlytoldoftheneedtomakerepairsattheroadabilitygateaftertheyhavealreadyreceivedthechassis.Theproblemhereoccurswhen26JournalofCommerce(JOC)(2015),“ExtendedfreetimecontributestochassisshortagesinLA-LongBeach”,October1,http://www.joc.com/port-news/us-ports/extended-free-time-contributes-chassis-shortages-la-long-beach_20151001.html,accessedOctober2015

27U.S.ContainerPortCongestionandRelatedInternationalSupplyChainIssues:Causes,ConsequencesandChallenges,2015

28http://www.uiia.org/about/index.php29https://www.fmcsa.dot.gov

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roadabilityinspectionsareperformedafterthechassisisprovidedtothetrucker.There’snoinboundchassisinterchangeinspection,becausetruckersmustreportchassisconditionsorproblemswhentheydroptheequipmentasrequiredbytheFMCSA,butmostdonot.Withouttheserequiredreportsbeingfiled,noqualityassurancesystemexiststoensurethatchassisprovidedareingoodconditionsuntilitisprovidedtothenexttrucker.Mostchassisarerepairedonlyifatruckerdecidestotakeittotheroadabilitygatewhichimpactstheirhoursofservice,becausetheyhavetowaitforthemtobeready.Underthisstrategy,becauseroadabilitywillbeimproved,itwillstoptheinefficienciesthatresultfromachassisinbadconditionjustgoingbackintothepoolandbeingdirectedtoanothertruckerwhichwillhavetofacethesameproblemsanddelay.

The POLA/POLB C-PoP is currently developing and implementing management systems to improveoperations.Also,theFMCsanctionedPOLA/POLB“SupplyChainOptimization”effortisworkingwiththeC-PoP to explore system improvements, including possible integrationwith other intermodal logisticsmanagementsystemssuchas:eModalandtheUSDOT’sFRATISproject,currentlyinthedemonstrationphase. The POLA/POLB are also working with LA METRO and CARB for incorporation of theaforementionedsystemsand“connectedvehiclesystems” intotheproposedState’sCARBSustainableFreightActionPlan(SFAC)PilotProject,beingconsideredforfunding.

Asdemonstratedbythecurrentefforts,thesuccessfulimplementationofthisstrategyandexpansiontootherportswouldrequirecollaborationbetweenvariousstakeholders.Moreover,theeffectivenessofthesystemtomaximizeassetutilizationrequiresintegrationwithothermanagementandinformationsystems,withinthemarineterminals,andparticipatingstakeholders.Publicagenciessupportforpilottestingwillbecrucialinthedevelopmentandevaluationofsuchintegratedsystems.

ImprovementofTrafficMitigationFeePrograms(DemandManagement)

TheTrafficMitigationFee(TMF)Program,PierPass,hasbeenasuccessintheSanPedroBayports.Thisprogramfostersfreightoperationsintheoff-hours.Since2005,asaresultofseverecongestion,theOffPeakprogramhasbeeninplaceandaTMFhasbeenchargedtocontainermovementsduringthedayshiftstopayforthenighttimeshifts.Theprogramhandles17,000trucktripsonaveragepernightduringthe6pmto3amshift;thisrepresentsaround55%ofthedailytrucktrips30,31.In2015,thePortofOaklandannouncedthatitsmarineterminalsareconsideringtheimplementationofasimilarOffpeakprogramcalledOakPass.

Accordingtoapublicreport,whilemanycarriersexpresswillingnesstomovetheiroperationstonighttimedeliveries,theredoesn’tappeartobeacorrespondingresponseonthesideofthebusinessestooperateduringoff-peaknighttimehours32.Duringtheinterviewsconductedaspartofthispaper,itwasidentifiedthataboutonethirdofthewarehousesintheSCAGregionoperateintheoff-hoursmainlybecausetheyarepartofthePierPassprogram.Byperforming

30PierPASS(2015),“OffPeakInformation”,http://www.pierpass.org/offpeak-information/,accessedOctober201531http://www.pierpass.org/wp-content/uploads/2015/07/2014-Operational-Costs-and-Financial-Report_Final.pdf32TheTiogaGroup,Inc.–DowlingAssociates,Inc.(2008).Truckparkingfacilityfeasibilityandlocationstudy.Availablefrom:http://www.alamedactc.org/files/managed/Document/10635/Truck_Parking_Facility_Feasibility_and_Location_Study.pdf.

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operationsduringthesetimes,theprogramisabletoimproveoperationsrelatedto:timespentwaitingbetweendispatches,timespentwaitingtoentertheterminal,andtimespentinsidetheterminaleitherpickingupordroppingoffaload.Moreover,reducedtrucktrafficduringthepeakhoursimprovesoperationstoallusersinthenetwork.Consideringthatabout95%ofallthetrucktripsto/fromthePOLA/POLBareto/fromcontainerterminals,anyreductioninthenumberoftripsduringthedaytimewouldhaveasignificantenvironmentalandtrafficimpact.

DespitetheinitialsuccessofPierPass,therearecurrentissuesaffectingitsperformancewhichcouldbeoptimized.Thefirstissuehastodealwiththeperceptionoftruckdriversaboutthedirectbenefitsofoperatingatthenighttimes.Duetoclaimsofinsufficientdemandtomeettheincreasedcostsofoperatingintheoff-hours,anumberofportterminalshavereducedthenumberofnight(andweekend)shiftsprovided(only4-5terminals).Insomecases,thisreductionofshiftshaveresultedinperceiveddiminishingbenefitsfromcustomersduringthesetimeperiods.ThereductionindirectbenefitscoupledwithanincreaseintheTMFof$69.15perTEU,havepromptedcriticismtotheprogram.Effortshavebeeninvestedbytheterminaloperatorstoexplainandsupportthefeeincreases33,34.

Inaddition,duetothefixedandstaticformatoftheprogram,queuesformoutsideterminalsbeforethenightshifts(bythenumberofdriversthatwanttotakeadvantageofthedifferentialpricing).Therefore,withtheimprovementofPierPassitisalsoimportanttoimprovetheefficiencyoftruckdwelltimesandvalidationsprocesses.AccordingtoPierPASS,usualtruckturntimesareatabout60-70minutesaverage,40minutesforapick-uptransactionand20-30foradrop-off.Butifsomeinformationaboutthetruckisnotfullysupportedbydocumentation,onlineappointmentvalidationoranyotherissuethatcouldraise,truckersarerequiredtogotothetroubleticketwindowswhichcantakeonaverage1hour(butcouldbemuchlonger).AspartoftheSupplyChainOptimization(SCO)effort,thePOLA/POLBareworkingwiththeMetropolitanTransportationOrganizationandothersupplypartnerstoexploremodifications/improvementstothePierPasssystem,includingbettermeasuringofturntimesandappointmentsystems.Regardingturntimes,thePOLA/POLBareconsideringpartneringwithanewsystemsoontobelaunchedbytheHarborTruckingAssociation,whichutilizesasmartphone/tabletapplicationtoconstantlytracktrucks,andproduceturntimes.AdditionallythePOLA/POLBisconsideringincorporatingthissystem,intotheaforementionedCARBSFACPilotProject.

Ingeneral,theprogramhasprovidedbenefitstothesystem,andhasshownthesuccessofimplementingaTrafficMitigationFeethatischargedtocargoownersinsteadtothetruckers(asitistypicalinotherpricingorchargingschemes).Therefore,thestrategyputforwardhere,seekstoimprovetheTMFProgram.Thiscouldbeaccomplishedby:

• Addressing inefficiencies within themarine terminal to increase the benefits experienced by theProgramusers. Inefficiencies inmarine terminalsexist regardlessof the timeperiod, therefore, toincreasethebenefits fromtheProgram,therootcauseof these inefficienciesmustbeaddressed.

33Rule7oftheWCMTOASchedulereads:“…theFeeshallbeadjustedannuallytoreflectincreasesinlaborcosts

basedonPacificMaritimeAssociationmaritimelaborcostfigures.”Theapproximate3.5%increaseintheTMFreflectsthisfee.ItispartofongoingrateincreasesappliedperthisRule.

34http://www.pierpass.org/wp-content/uploads/2015/11/PierPass-Financial-Overview_10-21-2015.pdf

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When looking at system level improvements, terminal operators are best positioned to engineersolutions.Portscanhelptofosterterminaloptimizationandbestpractices,butnon-operatingportscannotdevelopand implementaprogram.Aspartof the SCOeffort, thePOLA/POLB is exploring“push(asopposedtopull)terminallogisticsITsystemstoconveycontainersto/fromdrayman.

• Revisingthecurrentpricingscheme.Amoredynamiccongestionmanagementpricingschememayprovemoreoptimalatreducingcongestionandimprovingefficienciesduringboththedayandoff-peak hours. These charges could be lower during periods of lower utilization during the day andsomeminimal charges could be instituted for periods of high demand and utilization during off-peak. Although a fully dynamic pricing scheme would optimize the port (terminal) utilization, itcould create confusion among the various stakeholders. An alternative would be to identifyblock/segments of time, and charge themdifferently. The development of an appropriate pricingschemerequiresadditionalresearch.

• Normalizethemultipleexistingindustryperformanceandefficiencyindicatorsinordertomeasureimprovementsordegradationsofoff-peakprograms.

• Implementingappointment/reservationsystems.TheTMFProgramcouldalsobecombinedwiththeimplementationofappointmentandreservationsystems.

Implementationofthesestrategicchangeswouldreduceturntimesoftrucksandimproveterminalefficiency.Thisinturn,wouldhelpreducecongestion,truckwaitingtimesatthequeues,andincreasethroughput.Someofthechangesdescribedbelowcouldbeaddressedintheshort-term,thoughcarefulplanningandresearchaboutoptimalprogramdesigncouldrequireadditionaltimeandfundingsupport.Publicagenciescouldprovidethefundingandplanningsupportforthedevelopmentoftheimprovedprogram,andatthesametime,workwithPortAuthorities,terminalsandotherstakeholderstoidentifyadditionalopportunitiesforperceivedbenefits.Ifadynamicsystemisfoundtobetheoptimalpricingscheme,adatacollectionandinformationdisseminationframeworkandsystemmustbedeveloped.Thiscouldrequireinvestmentandplanningbeyondthemarineterminals,thusrequiringahigherlevelofcoordination,planningandfunding.

Tobesuccessful,thereisaneedforsomespecificcommonmetricstomeasuretheturntime.Aswiththecurrentsystem,queuesoutsidetheterminalconstituteapotentialunintendedconsequence.Theabilityofthesystem,theincentives/penalties,andtheimplementationofthereservationssystemcouldalleviatethoseissues.OneimportantaspecttobeconsideredwhendesigningthepricingschemeishowthisFDMstrategywillaffectthecorridorsandlocationssurroundingthemarineterminals.Researchtoinvestigatesuchpotentialoutcomesisrecommended.

ImplementAdvancedAppointment/ReservationSystems(DemandManagement)

Itisclearthattruckingisoftencharacterizedasthemostirregularandunpredictablemodeoftransportinport-relatedoperations.Inastudyontruckannouncementtimes,vanAsperenetal.notesthat“…ifweconsiderthedifferenttransportmodesacontainerterminalhastodealwith,thenroadtransportbytruckistheleastcoordinated”35.Despitealackofcoordinationbetweentruckingcompaniesandotherpartsintheintermodalmachine,generalresearchresultshaveshownthattotalnumberoftruckarrivalstendtofollowcertainpatterns.Whilea35van Asperen, Eelco, Bram Borgman, and Rommert Dekker. “Evaluating Impact of Truck Announcements onContainerStackingEfficiency.”Springer.19Oct2015.Web.23July2011.

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specifictruckmaynotbepredictable,truckarrivalnumbershavebeenshowntopeakduringcertainhourwindowswithinaday.Thisinefficientcharacteristiclendsitselfwelltobeingaddressedbytruckschedulingstrategies.

Consequently,thestrategyputforwardhereseekstodevelopandimplementandadvancedappointmentandreservationflexiblesystemthatintegrateswithotherinformationsystemstomaximizeassetutilizations.However,developingsuchasystemrequirestheanalysesofvariousoperationalaspectsandpotentialconsequencesresultingfromthesystem’simplementationandtheresearchabouttheeffectivenessofappointmentsystemsisnotconclusive.

Manystudieshavechosentousetruckline(orqueue)lengthsand/ortruckturn-around(orwaiting)timesasmeasurementsofefficiency.Reducinglinelengthsandoverallwaittimelessensorerasesthephysicalrepresentationoftrucktrafficoutsideofports,henceaddressingthemostvisibleproblemwithcontainer-movementinefficiency.Appointmentwindowshavebeenapopularsolution,underliningtheultimategoalofeveningouttruckappointmentsoverthedayinordertotakeadvantageoflessbusytimeperiodsandavoidpeakdemand.Currenttrendsindicatethattruckswillberequiredtoscheduleappointmentsin10outthe13containerterminalsintheSanPedroBaybytheendofnextyear36.

InaMarseillesstudy37,authorsattributethesuccessoftheirtruckappointmentsystem(TAS)tothefactthatthesystemwaswellthought-outandthorough,ratherthanmyopic.Theauthorsofthestudynotethatpreviousstudieshavefailedtoincludeallofthepiecesofasystemthatneedtobeconsideredinordertoeffectivelyimplementaschedulingstrategy.Intheirstudy,theyfocusedonthesupply-demandrelationshipbetweentruckorvesselarrivalsandcargo-handlingequipmentavailabilityattimeofarrival.ThiscouldbeevaluatedforapplicationinCaliforniaports.

AccordingtoareportthatanalyzedinitialappointmentsystemsimplementedinsometerminalsinCaliforniaindicatedthat“…theestimatesofpotentialturntimesavingsfromappointmentssuggeststhatalargeproportionoftripswouldhavetouseappointments,andappointmenttripswouldhavetobegivensomeprioritytorealizesignificanttimesavings.Itisonlyundertheseconditionsthatanappointmentsystemwouldreducetruckqueuingenoughtoresultinlowertruckemissions...”38

Otherstudieshaveshownnoimpactorhaveevenshownanegativeresult.IncontrastwiththesuccessseenatMarseilles,Le-Griffinetal.39concludedthataddressingtruckcongestionby

36http://www.polb.com/news/displaynews.asp?NewsID=1491,accessedOctober201537Zehendner,ElisabethandDominiqueFeillet.“Benefitsofatruckappointmentsystemontheservicequalityofinlandtransportmodesatamultimodalcontainerterminal”.EuropeanJournalofOperationalResearch.19Oct2015.Web.15July2013.

38Giuliano,G.,&O’Brien,T.(2007).Reducingport-relatedtruckemissions:TheterminalgateappointmentsystematthePortsofLosAngelesandLongBeach.TransportationResearchPartD:TransportandEnvironment,12(7),460-473.

39Le-Griffin,HahnD.,LamMai,andMarkGriffin.“ImpactofcontainerchassismanagementpracticesintheUnitedStates on terminal operational efficiency: An operations and mitigation policy analysis.” Research inTransportationEconomics.19Oct2015.Web.20July2011.

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makingappointmentstolettrucksthroughterminalentrancegatesmorequicklysimplyshiftedtheinefficiencyofthesystemfromoutsideofthegatetoinsideofthegate.Unintendedconsequencesmustbeconsidered.Thisdemonstratesthattakingawaythemostvisiblerepresentationofaproblem,suchastrucks,doesnotnecessarilymeanthatthatproblemhasbeenfixed,orthatanotherproblemhasnotbeencreated.

Historically,truckappointmentsystemshavenotbeenasappealingtoterminalsbecausetruckqueuesweremoreofaburdentotruckingcompanieswaitinginlinethantheywereforterminaloperatorsservingthoselines.Inaddition,itisclaimedthatbysettingappointmentsinefficienciesareintroducedastheyareassociatedwithafixednumberoftransactionsinaday.However,asdemonstratedbytheMarseillesstudy,someresearchinrecentyearshasbeguntohighlighttheimportanceofconsideringtheinterconnectionofallmodesoperatingbothinandoutofaterminal.Thevalueincoordinationisstartingtobemorestronglyrecognized

Astruckingappointmentsystemshavebeenevaluatedinmanystudiesaroundtheglobe,investigatingtheirfeasibilityinreducingcongestionandimprovingefficiencyinCaliforniaportswouldbewise.Developingsuchsystemrequiresanintegratedeffortbetweenthepublicandprivatesector.Itisimportanttoidentifytherootcausesfortheirregularandunpredictableoperationsbothinandoutofthemarineterminals.Thiswouldallowdefiningtherulesandlogicsoftheflexiblesystem,anddefiningtheappropriatetimewindowsconsideringtheuncertaintiesabouttheexacttransactiontimes.Duetothemixedresultsreportedintheliterature,appointmentsystemsshouldnotbeimplementedlightly,rathertheyshouldbetheresultofsignificantresearchandplanningefforts.Thepublicauthoritiesshouldprovidethesupport(funding,accesstoinformation,stakeholderengagement)neededforthoseactivities.Oneimportantaspectthatwouldrequirecarefulattentionishowtodealwiththepenaltiesandenforcementofappointmentsandreservations.Similarlyaswiththeotherstrategies,theappointmentsystemshouldbeintegratedwiththeothermanagementsystemsputinplacebysomeofthesystemstakeholders.

Nevertheless,itisexpectedthatanappointmentsystem(grantedthatterminaloperationsareoptimized)wouldhelpmitigatesomeoftheinefficienciescurrentlyobserved.Theappointmentsystemneedstobeflexibleenoughtohandletheoperationalneedswhenimplementingstrategiesrangingfrompushsystems,topeel-offandfree-flow.

Asmentionedbefore,aspartoftheSCOeffort,thePOLA/POLBisworkingwiththeMTOandothersupplypartnerstoexploremodifications/improvementstothePierPasssystem,includingappointmentsystems.Anexistingintermodallogisticssystem,eModal,whichhasbeeninexistenceandusedbytruckingcompanies,terminaloperators,customsbrokers,3PL,etc.,since2002,providesappointmentsystemsforseveralofthePOLA/POLBterminalsalready.Emodalwillbeexpandingtheirappointmentsystemstomoreterminalsin2016.ThePOLA/POLBisworkingwitheModalandtheterminaloperatorstohaveauniversalanduniformsysteminplaceinthenearfuture.Additionally,thePOLA/POLBisconsideringincorporatingthissystemintotheaforementionedCARBSFACPilotProject.

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Developing an Integrated System for Dray Operations and Services (CollaborativeLogistics)

Thisstrategyseekstofosterthedevelopmentofcooperationandcollaborativeagreementsbetweendrayageoperators,beneficialcargoowners,andinsomecases,shippinglinesandportterminals,toofferasharedservicethatcanfacilitatepracticessuchas“freeflow”or“peeloff.”ThemainobjectivewouldbetooptimizecontainerflowinPortTerminals.Adrayagreementdoesnotnecessarilyinvolvetheprovisionofapoolofvehicles,butitwouldrequiretheimplementationofinformationsystemsthatallow,amongotherthings,containervisibilitytoentiresupplychains,realtimetrafficdata,roadsandterminalturntimeandqueues.

Inaddition,astrategylikethiscouldhelpwithnewportparadigmssuchaspushsystems.Asthenameindicates,inpushsystems,containersare“pushed”outoftheterminalinsteadofbeingpulledbybeneficialcargoownersattheirdiscretion.Thisinessencewouldhelpreducecost,increasecontainervelocityandtruckturns,improvereliabilityandpredictability,andimprovelaborandequipmentdeployment.

Thesenewpractices,pushsystems,peel-off,dray-off,andfreeflowaresimilarinthesensethattheytrytomoveboxesoutoftheterminalmoreefficiently.Howevertheymayimposeadditionalchallengestoindividualoperators,especiallydrayagecompaniesthathavecontractswithspecificclients.Pushsystemsandpeel-offtypeofsystemscouldbeimplementedtogether,aspushcouldbeimplementedforallsizedshippers,andpeel-offforlargebeneficialcargoowners.Thesuccessofthesestrategiesheavilydependsonthefluidityofthesystemwhichisaffecteduponinlandfacilityoperationsandcapacity40.

ThecreationoftheDraysystem,wouldworksimilarlyasthepeel-off/dray-offcostmodel,butextendedtotheintegratedoperationswithotherstakeholdersinthesupplychain.Peel-off/dray-offmodelsgenerallyassumethatthecontrolandownershipofeachboxfromshiptodoorisallmanagedbyasingleagencythatminimizesoverallcosts.Ingeneral,themodelestimatestotalterminalanddrayagecostsbasedonunitcapitalandoperatingcostsandtypicalproductivityfactors

Thepublicsector,asinthecaseoftheChassis-PoP,shouldfosteracompetitiveandcollaborativeenvironment.Moreover,investmentswouldbeneededtodeveloptheintegratedinformationsystemthatshouldbecompatiblewithsolutionssuchastheCaliforniaFreightAdvanceTrafficInformationSystem(FRATIS),andothercommercialsystems.ApilottestatthePortofLosAngelesshowedthatusingacommercial(onlineandapp-basedbrokerage)systemandafreeflowstrategycouldincreaseproductivityby500%(250containerdeliveriespershiftvs.50)andreducetheaveragedriverturntimesinhalf(42minsvs.85mins).41

Animportantaspectofastrategylikethiswouldbetheneedfortheimplementationofincentivesorthecreationofanappointmentsystemthatiscapableofhandlingthedifferent

40Davies,P.andM.Kieran(2015).PortCongestionandDrayageEfficiency.Presentationatthe2015INUFMetrans

Conference.LongBeach,CA.41Harman, D. (2016) On-demand Load Matching for Trucks. Presentation at the 2016 TRB Annual Conference

Urban Freight Workshop on On-Demand Technology and Sharing Economy for Freight. Washington, D.C.January10th.

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requirementsofportrelatedactivities,dependingonthetypeofoperationalstrategyinplace.Moreover,thistypesofsystemsthatrelyoninformationsharingandtechnologiesneedtobedevelopedconsideringdataaccessandcustodial,aswellastheframeworkfortheirmanagement.Whilethepublicsectorcouldnotmandatethecollaborationbetweendrayoperatorsandservices,itcouldprovidethesupportfortheanalysisandresearchofeffectiveincentiveprogramsthatfosterparticipationandabehavioralchange.

AspartoftheSCOeffort,thePOLA/POLBisexploring“push”(asopposedtopull)terminallogisticsITsystemstoconveycontainersto/fromdrayman.

LoadMatchingandMaximizingCapacity(CollaborativeLogistics)

Ascargoratesareincreasing,portsarefacingchallengestomeetdemand.Schedulingarrivalofshipsandaligningotherelementsinthesupplychaintoachieveagoodlevelofservicerequiresinformationsystemsandcollaborationamongstakeholders.Oneoftheby-productsofaneffectiveandglobalizedcontainerizedcargoistheabilityofthesystemtokeepahealthynumberof“empties”inthesystemandavailableforshippers.Thenumberofemptiesalsoreflectstherelativebalanceoftradebetweennations,whichisafunctionoftheinternationaleconomyandfactorsoutofthecontrolofanyoneseaport.AsaresultoftheUnitedStates’currentimbalanceoftrade,forinstance,in2015atthePortsofLosAngeles,whileemptiesaccountedforonly2.8%ofimportedcontainerstheyaccountedfor57.3%ofallexportedcontainers(2.2millionTEUs).42Thetransportationoftheseemptycontainers,primarilybacktotheterminalforexport,requiretransportationservicestoandfromfacilitiesafteruse,butthesearerepositioningmoveswhicharenotrevenue-generating,andalthoughneeded,thetransportofemptycontainerscanaddtototalsysteminefficiency.Someofthecausesofemptycontainerinefficienciesarisefromsizeandtypeofequipment,lackofvisibilityandcollaborationwithinstakeholdersaswellasinformationsystemstotrackcontainers43.

Toremediatethisissue,LoadMatchingStrategiescouldprovidekeybenefits.TheobjectiveofloadmatchingstrategiesistoreduceVMTassociatedwithemptytrips.Therearemanyvariationsofloadmatching;examplesincludematchingemptycontainerswithloads;firstcome,firsttakepickups;andplatformstomatchsmallloadswithavailablespaceincontainerswhicharenotalreadyfull.

Thesetypesofstrategieshavebeenimplementedwithsomesuccessinvariousregionsofthecountry.Forempties,empiricalevidenceindicatesthatitispossibletomatchbetween20-30%ofthetrips.However,themainlimitationismostcasesisthepositioningcost,orthecosttotransporttheemptycontainerbetweenitslocationandthelocationofthecargo.Although,analysesarestillneeded,thesecostscouldbeintheorderof$200-$300permovement.44Therefore,thepublicsectorcoulddevelopanincentiveprogramtoincreasethelikelihoodofmatchingandthuscontributetoreducethenumberofemptytripsinthesystem.Considering

42https://www.portoflosangeles.org/Stats/stats_2015.html43Lee,Meng,ed.,HandbookofOceanContainerTransportLogistics:MakingGlobalSupplyChainsEffective,Switzerland,Springer,2015

44Turman,R.(2015)SoutheastStreamline.Developersofload-matchingsystemforimportersandexportersontheEastCost.CoalitionofResponsibleTransportation.Personalcommunication.

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thehighernumbersofemptiescomparedtoloadedoutboundshipments,thepotentialbenefitsoffosteringthesetypesofstrategiesishigh.

Otherexamplesinvolvethedevelopmentanduseofinformationtechnologiestofacilitatetraditionalfreightservicessuchasfreightbrokerage.Thesetypesoftechnologyplatformsallowparticipationfromcarriers,manufacturersanddistributors,freightforwarders,3PLs,brokers,orbusinessesthatregularlyorsporadicallyhavefreightneeds.Oneofthekeyfactorsthatbenefitsfromthesetechnologiesistheabilitytoprovideinformationaboutunusedcapacity,assetvisibilityandreductionof“deadhead”milesorempties.Thesesystemscouldhelpreducesomeoftheinefficienciesatthelonghaul(citytocity)transport,short-haul,lastmile,international,andevenatthecourierexpressservices.Complementarystrategieshavealsobeendevelopedtohelpmitigatesomeoftheproblemsassociatedwith“empties”atthewarehousinglevel.Figure3showsexamplesofthesesystems45.

Figure3:ExamplesofOn-DemandLogisticsPlatforms

AlthoughsomeoftheexamplesinFigure3arenewtechnologicalplatformsfortraditionalfreightservices,currenton-demandtechnologiesandsharingpracticeshaveresultedinnewfreightoperationsandbehaviors.Publicagenciesshouldsupporttheplanningandresearchforthepotentialapplicationsofsuchservices.However,itisclearthattechnologyandinformationsystemscouldplayakeyroleinmaximizingassetutilization.Publicsectoragenciesshouldalsoidentifytheadequateallocationofresourcessuchthattheseplanningandresearcheffortsareconducivetoanefficientsystemanddonotinterferewithprivatebusinessmodels.

45Pazour,J.(2016).TheOn-DemandEconomyandUrbanFreight.Presentationatthe95thTransportationResearchBoardAnnualMeeting,Washington,D.C.

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ThePortsofLosAngelesandLongBeachareexploringaVirtualContainerYard(VCY)aspartoftheirSupplyChainOptimizationeffort(SCO).ThePortshavebeenindiscussionwithaprivateentitywhichwillsoonbelaunchingaVCYservice.ThePortsandSCOparticipantswillcontinuetopromotesuchaservice,andothersthatmightemerge.However,thePortswillnotactuallydeployitsownVCYtosupplantorsupplementotherVCYservices.

AllLayersoftheEconomyThepreviousstrategieshaveconcentratedinfreightdemandmanagementandcollaborativelogistics;however,trafficmanagementintheformofrelaxingvehiclesizeandweightrestrictionscouldhavethepotentialtocontributetomaximizingassetutilization.Thisstrategycouldaffectthedistributioneconomyaswellasthefreightcorridorsintheinternationalgateways.

RelaxingVehicleSizeandWeightRestrictions(TrafficManagement)

Thisfinalstrategy,doesnotspecificallyrelatetodemandmanagementorcollaborativelogistics;however,duetoitsimportancetoalleviatesomepressingissues(investmentinrailinfrastructure,drivershortages,andfreighttraffic)itisdiscussedhere.

Allowingincreasesintrucklengthandsizewouldprovidetheopportunityforsignificantgainsinefficiencyforcertainportionsofthefreightindustry.HeavierGVWmaximumsandlongertrailerconfigurations,e.g.,97,000lbweightlimitsoruseof2-3trailerlongcombinationvehicles(LCVs),couldprovidebenefitsinmultipledifferentforms.Intermsofexpectedbenefits,examplesofmetricsmeasuresusedinsomestudieslookingattheUSsystemincludereducednumberoftrips,reducedadministrativecosts,lesscongestion,fewerhoursofidling,lessdemandfordrivers,reducedtotalfuelusage,andlowertotalemissions.

TruckweightandsizelimitsintheUShavenotbeenchangedsincethe1982,whentheSurfaceTransportationAssistanceAct(STAA)mandatedan80,000lbfederalweight(GVW)limitforinterstatehighways.Thisisexacerbatedbythecontinuedexistenceofapreviousprohibition[from53yearsbefore2009]thatrequiresthat,inordertoincreasetheirsizeorweightlimitsonsectionsoftheinterstatehighwaywithintheirborders,individualstatesmustdemonstrateagrandfatheredright(frombefore1956)todoso.Additionally,in1991ISTEAfrozetheweights,lengths,androutesofoperationoflongcombinationvehicles(LCVs).Itisclearthatvehiclesizeandweightrestrictionsisacomplexissue.

Afewdifferentopportunitiesexistwheretruckweightand/orsizeincreaseswouldprovideeasilyachievableefficiencybenefits.“ItisgenerallyacceptedthatintheU.S.theratioofmass-limitedtovolume-limitedsemitrailersrangesfromabout50/5046to40/60”47.AccordingtoasurveyoftheNPTC,86percentofcompaniesexperiencesomeweightout,76percentexperiencesomecubeout,and66percenthavebothweighoutsandcubeouts.Amorein-

46NRC[NationalResearchCouncil](2010).TechnologiesandApproachestoReducingtheFuelConsumptionofMedium-andHeavy-DutyVehicles.Availableat:http://www.nap.edu/catalog.php?record_id=12845

47Woodrooffe,J.(2014).Reducingtruckfueluseandemissions:tires,aerodynamics,engineefficiency,andsizeandweightregulations.http://deepblue.lib.umich.edu/bitstream/handle/2027.42/109749/103144.pdf?sequence=1&isAllowed=y

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depthsurveyfoundthatfifty-sixpercentofcompanies’shipmentsregularlyweightout,and34percentregularlycubeout.Anysituationthatinvolvesaweightoutcanbeequatedwithanopportunityforheavierweightallowancestohaveanimpactonefficiencies.Similarly,anysituationinvolvingacubeoutrepresentsanopportunityfortrailersize/lengthincreasessuchastheuseofLCVs.

Inthebrightside,companiesestimatedthattheycouldseea10%reductionintrucktripsifweightrestrictionswereincreased,anda6percentreductionintripsifLCVswereallowed.For5companiesthatcouldbenefitfromweightrestrictionincreases,anincreaseof8,000lbsinGVWallowancewouldsave7.5milliongallonsoffuel,andanincreaseof14,000lbswouldsave10.8milliongallons.UseofLCVsareestimatedtoachievea34.9%reductioninfuelusage,onaverage.“Ofthethreescenariosevaluated,theLCVoptionhasthegreatestprojectedinfluenceonfuelconsumptionandemissionsreduction”48.Lookingatthescenarios,combined,canprovideevenmorebenefits.AssumingallcompaniesinthestudyarerepresentativeofthegeneraltruckpopulationintheUS(anissuetheauthorsacknowledgedwasanunknown),ifbotha8,000lbincreaseanduseoftwin53-fttrailerLCVswereallowed,nationalannualdieselfuelusagewoulddecreaseby2.6billiongallons.Ifa14,000lbincreaseandLCVswereused,thatreductionwouldbenearly3billiongallons.

Investigatingthepotentialforlongerand/orheaviertrucksinCaliforniawouldprovideasignificantprospecttoaddressgoalsspecifiedbytheGovernor’sExecutiveOrder.Comparedtoothercountriesthatalreadyhavelooserrestrictionsonsizeandweight,theUShasalargeopportunitytoincreasetheirefficiencyandhaveamorecompetitivefreightsystem.“ThepotentialgainsinfreightefficiencyforfreightthatcouldmakeuseofvehicleweightincreasesmatchingourNAFTApartnersCanadaandMexicoare44and53percent,respectively”49.LargeincreasesinefficiencythatcouldbeachievedbyadjustmentstothefederalweightandsizelimitscouldprovideefficiencygainsthatcouldpossiblymeetorexceedtheGovernor’sgoal.Itisimportanttoconsider,however,severalfactorsthatcanhavelargeeffectsonestimatedresults50:

• Eachcompanyhasdifferentareaswhereefficiencygainscanbeachievedthroughtheexpansionofsizeandweightlimits;notallcompanieswouldbenefitfromeachpossiblelooseninginregulation;

• “Larger trucks, including LCVs, will not be suitable for all roads, and route selection,permittingandmonitoringwillbeimportantissues”;

• Therecouldbe increasedwear-and-tearonthetrucks, tires,andtrailers,affectingthelifetimesoftheequipment;

48Woodrooffe,J.,Belzowski,B.M.,Reece,J.,&Sweatman,P.(2009).AnalysisofthepotentialbenefitsoflargertrucksforUSbusinessesoperatingprivatefleets.http://deepblue.lib.umich.edu/bitstream/handle/2027.42/65000/102510.pdf?sequence=1&isAllowed=y

49Woodrooffe,J.(2014).Reducingtruckfueluseandemissions:tires,aerodynamics,engineefficiency,andsizeandweightregulations.http://deepblue.lib.umich.edu/bitstream/handle/2027.42/109749/103144.pdf?sequence=1&isAllowed=y

50Woodrooffe,J.,Belzowski,B.M.,Reece,J.,&Sweatman,P.(2009).AnalysisofthepotentialbenefitsoflargertrucksforUSbusinessesoperatingprivatefleets.http://deepblue.lib.umich.edu/bitstream/handle/2027.42/65000/102510.pdf?sequence=1&isAllowed=y

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• Weight increases would be compatible with most existing infrastructure, but bridgeweightrestrictionsneedtobeconsideredinadditiontointerstatehighwayrestrictions;

• Heavier trailers that only have 2 axleswill need a third axle in order to handlemoreweight.Thisraisescostconcernsandissuessurroundingwhoownsthetrailer/wouldberesponsibleforretrofits/turnoverinthetrailerfleet.Estimatingretrofitcostswouldbeverydifficult,consideringthelargevarietyofequipment/uses;

• LCVusehaslimitationslargelybasedoninfrastructure-relatedgeometricconstraints;o LCVswilllikelyrequirespecialgovernmentpermittingandadditionaltrainingfor

drivers; they also would require significant infrastructure changes in differentareas of use, including on roads and also at the point of transition frominterstatetourbanarea(e.g.needingdropyards);operationaladjustments,onthesideofthecompanies,wouldbeneededaswell;

• Theuseoffor-hirecarriers,versusprivatecarriers,canhaveanimpactonthefeasibility(andcostburden)ofweightincreasesandLCVuse.

Additionally,impactsonCalifornia’sroadwaysandpavementsneedtobeconsidered.TheTransportationInstituteatTexasA&Mhasconductedresearchinthisgeneralarea,andtheirfindingsshouldbelookedatandconsideredwhenlookingatthepotentialofheaviertrucksinCalifornia.Althoughacomplextopic,thepotentialforimprovementsduetomodifyingsizeandweightsrestrictionswarrantstheneedforadditionalresearchtoidentifythoselocationsorcorridorswheretheycouldbeimplemented.FederalandStateAgenciesshouldtaketheleadonidentifyingthoseopportunities.Concernsaboutinfrastructuredamage,safety,andotherissuesarevalidreasonstoinvestresourcestoidentifythefeasibilityofsuchstrategies.However,technicalfeasibilitymaynotequatewithregulatoryconstraints.

SummaryofStrategiesIngeneral,thediscussionsforeachstrategyshowedthatthereisvariabilityinthepotentialfortheirimpacts,thelevelsofeffortneededfortheirimplementation,andthetypeofstakeholdersinvolvedintheplanning,research,andimplementationphases.Someofthestrategiesarelikelytobewidelyunderstoodbythepractitionercommunity,whileothersrequirecarefulanalysisandimplementationtoavoidunintendedconsequences.Moreover,theamountofpublicinformationavailableaboutexperiencesandassessments,variesfromstrategytostrategy;thisisespeciallythecasefortherequiredlevelofcostsandimplementationefforts.ThissectionsummarizesthevariousproposedstrategiesbasedonaqualitativeassessmentofsomeofthefactorsdiscussedinSectionI:potentialbenefits;stakeholders’roleintheimplementation/planningeffort;requirements;andtheopportunitiesfortheimplementationofnewtechnologies.Thequalitativeassessmentisbasedonthediscussionandcriticalanalysisofeachstrategy.Foreachfactor,a3-levelscaleisused,indicatinglow,mediumandhighrelationship(i.e.,positiveeffect,levelofinvolvement,andlevelofeffort/investment).Lackofanassessmentindicatesthatthecriteriondoesnotapplytothestrategy,orthattherelationshipisverylow.Ingeneraltheassessmentismadeconsideringthatthestrategyisfeasibleforimplementation,andthattheunintendedconsequenceshavebeenaddressed.Thisassessmentshouldbeusedasageneralguideline,andforcomparison

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purposesbetweenthestrategies.Theassessmentdoesnotimplytherealmagnitudeoftheeffectsasitwilldependonthespecificsoftheprogramtobeimplemented.

Forexample,

33

Table4showsthepotentialbenefitsexpectedfromtheimplementationofeachofthestrategies.Theassessmentclearlyindicatesthatthesestrategieshavethepotentialtogeneratepositiveeffectsintermsofincreasedoperationalefficiency,reducedcongestion,andimprovedenvironmentalsustainability;whilenotgeneratingmajorimpactsonsafety,securityandenhancinglivability.However,themagnitudeofthosebenefitscouldnotbeestimated,asadditionalresearch,simulation,modelingandanalysesarerequiredtoidentifythecorridors,and/orspecificlocations(orstakeholders)wherethosebenefitswouldberealized.Forexample,whilesomeofthebenefitscouldbeperceivedinsidemaritimeterminals,otherbeneftissuchasreducedcongestioncouldimpactallnetworkusers(thusquantifyingthemisacomplextask).Forthecasesforwhichinformationisavailable,overallemissionreductionscouldbeintheorderof4%asinthecaseofOff-HourDeliveries.Anotherimportantaspectthatlimitstheabilitytoquantifythebenefitsisthefactthat,inmostcases,theimplementationofvariousstrategiesdoesnothaveanadditiveeffect.Though,controllingforunintendedconsequencessuchasinduceddemand,itisexpectedthatthebenefitwouldbeacompoundedpositiveeffect.

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Table4:PotentialBenefits

PotentialBenefitStrategy

IncreaseOperationalEfficiency

ReduceCongestion

Environ-mentalSustaina-bility

EnhanceSafety

EnhanceSecurity

EnhanceEconomicCompeti-tiveness

PublicSectorRevenueGeneration

EnhanceLivability

Chassis-PoP +++ ++ + ++

IntegratedDrayServices

++ +++ +++ + ++

AdvancedAppointment/ReservationSystems

+ + ++ + + + + +

LoadMatching/MaximizingCapacity

++ ++ ++ +++ +

ImprovingTrafficMitigationFeePrograms

++ ++ ++ + + + +

RelaxingVehicleSizeandWeightRestrictions

+++ + + ++ +

Receiver-ledConsolidation

+++ +++ ++ ++ +

VoluntaryOff-HourDeliveryPrograms

+++ ++ ++ + ++ ++

(+)denotesalowpositiveeffect.(++)denotesamoderatepositiveeffect.(+++)denotesahighpositiveeffect

Whendesigingthevariousstrategiesandconductingtheplanningefforts,itisimportanttoidentifythestakeholders’roleintheprocess(see

35

Table5).Forthepurposeofthispaper,whenreferingtothelocal/regional/State/Federalgovernment,planningagencies,andotherpublicauthorities’involvement,theanalysesrefertothelevelofengagementrequiredfromeachofthosestakeholderstoprovidecriticalexternalplanning,financial,orpolicysupport.Acleardifferenceshouldbemadebetweenthestakeholderengagementforthedesign,planningandimplementationprocess,andthespecificstakeholderstargetedbythestrategy.Forexample,whilereceiver-ledconsolidationprimarilytargetsshippersandreceiversofthecargo,otherstakeholderssuchaslogisticsoperatorsandancillaryfacilitieswouldneedtocoordinatethechangesinoperationalpatterns;governmentalinvolvementrequirementsmaybelimited.Voluntaryoff-hourdeliveryprogramsexhibitsimilarcharacteristicsintermsofthetargetedstakeholders;however,theimplementationandplanningeffortsrequireengagementfrommanyotherstakeholdersincluding,local,regionalandnationalpublicagencies.

Inothercases,theplanningeffortshouldconsiderissuesresultingfromtheimprovementofoperationsofspecificmodes.Forexamples,relaxingtrucksizeandvehiclerestrictionsmayinduceanundesirablemodeshiftfromrailtotruck;moreover,theinfrastructureinvestmentstofacilitatethetrafficofheaviervehiclesmaycreateequitydifferencesbetweenthepubliclyandprivatelyownedinfrastructures(e.g.,rail).Inthisspecificexample,relaxingvehiclesizeandweightrestrictionsforovertheroadvehicles,couldgenerateoppositionfromtherailindustry,andcommunities.

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Table5:Stakeholders’roleintheimplementation/planningeffort

StakeholderStrategy

Shippe

rs

Carriers-Ro

ad(D

rayage/Distribution)

Carriers-Ra

il

Carrie

rs-Maritime(Shipp

ingLine

s)

Receivers(Largean

dSm

allEstab

lishm

ents)

PortTerminals

Wareh

ouses/DistributionCe

nters

LogisticsOpe

rators

LocalG

overnm

ent/Plann

ing/Au

thorities

State/Re

gion

al

Fede

ral

Others(Trade

organ

izations,

scientists,acade

mia,

commun

ities)

Chassis-PoP + +++ + ++ +++ +++ + +++ + +

IntegratedDrayServices ++ +++ ++ ++ + +++ ++ +++ ++ +++ +++ ++


+ +++ ++ +++ +++ +++ +++ +++ + + +


+++ +++ ++ ++ ++ +++ +++ + + +


++ +++ +++ +++ + + +++ + + +


+ +++ + + + ++ + + + +++ +++

Receiver-ledConsolidation ++ +++ +++ +++ +++ + + + +++

VoluntaryOff-HourDeliveryPrograms

++ +++ +++ +++ +++ +++ ++ ++ +++

(+)denotesalowinvolvement.(++)denotesamoderateinvolvement.(+++)denotesahighinvolvement

Eachstakeholdercouldparticipateintheimplementationandplanningeffortsinmanyforms.However,thetypeofrequirementstodevelopasoundstrategycouldbecategorizedin:cooperationandcoordinationefforts;needforincentivesortaxation;theneedforfundingorcapitalinvestment;developmentofinformationtechnologies;developmentofnew

37

technologiessuchashardware,equipment;infrastructureimprovements;andregulatoryframework.Inessence,therequirementscouldbeintermsoftechnological,financial,planning,policyoroperationalsupport.Table6summarizesthetype/levelofrequirementsexpectedforeachstrategy.Theassessmentshowsthatcooperationandcoordination,developmentofincentivesandtaxationschemes,andthedevelopmentoruseofinformationtechnologiesaretheprimaryrequirementsforthesestrategies.Designingeachstrategyshouldtrytoguaranteeparticipationfromthetargetedstakeholders.Examplesincludetheoff-hourdeliveryprogramandtheuseofincentivestofosterparticipation;ortherecentexperienceswiththeSCOatthePOLA/LB,whereanumberofstakeholdersarecooperatingandconsideringoptimizingstrategies.Thecooperationandcoordinationamongthestakeholdershaveresultedinsuccessfulstoriessuchasthehandlingofthe3largestvesselsevertocallaportintheUS.

Table6:Requirements

RequirementsStrategy

Coop

erationan

dCo

ordina

tion

Incentives/Taxation

CapitalInv

estm

ents

Inform

ationTe

chno

logies

New

Techn

olog

ies

(Hardw

are,Equ

ipmen

t,Ve

hicles)

Infrastructure

Improv

emen

ts

Regu

latoryFramew

ork

Chassis-PoP +++ ++ +++ + ++ +

IntegratedDrayServices

+++ ++ ++ +++ + + ++


++ + + +++ + + +

LoadMatching/MaximizingCapacity +++ ++ +++ +


++ + + +


+ +++ +++

Receiver-ledConsolidation +++ +++ + +

VoluntaryOff-HourDeliveryPrograms +++ +++ + + + +

(+)denotesalowlevelofeffort/investment.(++)denotesamoderatelevelofeffort/investment.(+++)denotesahighlevelofeffort/investment.

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Inadditiontothepreviousfactors,theproposedstrategiescouldalsoprovidesomeopportunities(directlyorindirectly)tointroduceorfostertheimplementationofneworsustainabletechnologies.Theseinclude,zeroornearzeroemissionvehiclesandequipment;improvementandretrofitstoexistingfacilities;automation;andtheimplementationofinformationtechnologies.Thequalitativeassessment(seeTable7)isdoneunderthefollowingassumptions:1)thesestrategieswillprovidesystemefficienciesthattranslateontooperationalefficienciesfortheindividualstakeholders;2)systemefficienciesalsogenerateeconomicbenefits;3)operationalandeconomicbenefitswillallowforthestakeholderstoinvestinsomeofthosenewtechnologies;and4)otheroperationalefficiencies,andimprovementsintheoverallsystemconditionscouldallowfortheuseofthenewtechnologieswithintheirtechnicallimitations(e.g.,rangeofelectricvehicles;loadingcapacity).Moreover,consideringthatthedevelopmentofsomeofthestrategiescouldbeinvolveincentiveandfundingprograms,theseprogramscouldalsoincludetheadoptionofthesetechnologies.

Table7:Additionalopportunitiesfortheadoptionandimplementationofnewtechnologies

OpportunitiesforStrategy

SustainableVehicles

SustainableEquipment

ImprovedFacilities

Automation ImplementationofInformationTechnologies

Chassis-PoP + +++ + + ++

IntegratedDrayServices +++ + + +++ ++


+ ++ +++ +++


+ + + ++


+ + ++


++ + + +

Receiver-ledConsolidation

+ ++ +

VoluntaryOff-HourDeliveryPrograms +++ ++ + + ++

(+)denotesalowpositiveeffect.(++)denotesamoderatepositiveeffect.(+++)denotesahighpositiveeffect

39

Ingeneral,andalsodiscussedinthefirstpaperofthistwo-partseries,theanalysesshowedthatthereisnosinglestrategythatcouldaddresstherangeofinefficienciescurrentlyaffectingtheCaliforniaFreightSystem.Whilesomeofthestrategiesareintendedtomitigatepressingissues,otherscouldhelptoadaptandbeabletomitigatetheimpactsoffuturetrends,andoperationalpatterns.Designingaplantoimprovethefreightefficiencyshouldconsiderasetorpackagesofcomplementarystrategies.

OPERATIONALMODERNIZATIONATDISTRIBUTIONNODES


LeadAuthors:ThomasO’Brien,CaliforniaStateUniversityLongBeachTylerReeb,CaliforniaStateUniversityLongBeachWorkingGroupMembers:AlisonBird,FedEx;MikeChristensen,PortofLongBeach;RichardCoyle,CaliforniaTruckingAssociation;LeeKindberg,MaerskLine;DavidLitbatique,PortofLosAngeles;PeterOkurowski,CaliforniaEnvironmentalAssociates;andElizabethFretheim,Walmart

AbouttheFreightEfficiencyStrategiesDevelopmentGroupInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.AbouttheNationalCenterforSustainableTransportationTheNationalCenterforSustainableTransportationisaconsortiumofleadinguniversitiescommittedtoadvancinganenvironmentallysustainabletransportationsystemthroughcutting-edgeresearch,directpolicyengagement,andeducationofourfutureleaders.Consortiummembersinclude:UniversityofCalifornia,Davis;UniversityofCalifornia,Riverside;UniversityofSouthernCalifornia;CaliforniaStateUniversity,LongBeach;GeorgiaInstituteofTechnology;andUniversityofVermont.DisclaimerThecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmanyindividualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensusonthepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinionorpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedtoinformandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightActionPlan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattemptedtoincludedissentingopinionsandareasofconcurrencewheretheymayexist.ThisdocumentisdisseminatedunderthesponsorshipoftheUnitedStatesDepartmentofTransportation’sUniversityTransportationCentersprogram,intheinterestofinformationexchange.TheU.S.GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.NordoesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.GovernmentandtheStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.

AcknowledgmentsThisstudywasfundedbyagrantfromtheNationalCenterforSustainableTransportation(NCST),supportedbyUSDOTandCaltransthroughtheUniversityTransportationCentersprogram.TheauthorswouldliketothanktheNCST,USDOT,andCaltransfortheirsupportofuniversity-basedresearchintransportation,andespeciallyforthefundingprovidedinsupportofthisproject..TheauthorsandworkinggroupmembersaregratefulfortheassistanceofthefollowingCaliforniaStateUniversity,LongBeachstudentswhoconductedresearchandprovidedinformationinthedevelopmentofthiswhitepaper:OrionGould,DanielMagno,andJenniferTran.

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ii

TABLEOFCONTENTS

EXECUTIVESUMMARY..................................................................................................................iiiIntroduction...................................................................................................................................1Theme1:EnergyEfficiencyAtMarineTerminals..........................................................................1

StatementoftheProblem.........................................................................................................2

Theme2:ImprovedTruckAccessAtNodes.................................................................................12TruckPlatooning......................................................................................................................12

VirtualContainerYards............................................................................................................19

Design-basedGuidelines..........................................................................................................22

Weigh-in-Motion......................................................................................................................31

Conclusion....................................................................................................................................37References...................................................................................................................................39

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OperationalModernizationatDistributionNodes

EXECUTIVESUMMARYThiswhitepaperdocumentsobstaclespreventingoperationalmodernizationattradenodesandthenrecommendsstrategiestoaddressthosechallengesinwaysthataddresstheStateofCalifornia’sgoalstoimprovefreightefficiency,economiccompetitiveness,andenvironmentalsustainability.AllofthestrategiesoutlinedinthisreportareintendedtoinformnextstepsinthedevelopmentoftheCaliforniaSustainableFreightActionPlan.

Thefirstofthoserecommendedstrategiesfocusesonestablishingenergyindependenceatmarineterminalsthroughtheuseofenergymicrogrids.Usingmicrogridtechnology,marineterminalscanbecomeself-sustaining“energyislands”capableofindependentlygeneratingtheirownenergysuppliesseparatefromlegacyenergygridstomaintainongoingoperations.Intheeventofnaturalormanmadedisasters,marineterminalswithenergygridscouldcontinueoperationsevenifthemainpowergridintheregioncollapses.Additionally,marineterminalscouldsellexcesselectricitygeneratedbytheirmicrogridsbacktothemainpowergridintheirrespectiveregion.Implementationofenergygridsrequiresconsiderablefinancialinvestmentaswellasnewpartnershipswithgovernmentalandindustrystakeholders.Thiswhitepaperalsoexploreswaystoincentivize“buy-in”forenergygridsintoexistingenergymarkets.

Inadditiontoaddressingtheimportanceofenergyefficiencyandindependenceatdistributionnodes,thiswhitepaperalsoaddressestheimportanceofimprovingtruckaccessatdistributionnodesinamannerthataddressesthethreeinterrelatedgoalsoutlinedinGov.Brown’sexecutiveorder:economiccompetitiveness,movementtowardzeroemissions,andoperationalefficiency.Topromoteimprovedtruckaccessatdistributionnodes,theresearchinvestigatedtheuseoftruckplatooning,virtualcontaineryards,design-basedguidelines,andweigh-in-motionstrategiestoimprovefreightefficiency.

Truckplatooninginvolvesatrainoftruckstravelingtogetheratverycloseproximitiestolowerfuelcostsandincreaseefficiency.Throughtheuseofadvancedwirelesscommunicationtechnologies,theseconddriver,thirddriver,andanysubsequentdriversareabletobrakeatthesametimeasthefirstdriverwhocontrolsthespeedandpaceofthetrainoftrucks.Althoughfurtherresearch,regulations,andtechnologicaladvancesarerequiredforwidespreadimplementationwhereanytruckcanjoinaconvoyortrain,potentialbenefitofthispracticeondieselconsumption,theenvironment,andtheeconomyissignificant.

Likewise,theeffectofvirtualcontaineryards(VCY)onfreightefficiencyholdsthepotentialofintroducingnewefficienciesintothefreighttransportationnetwork.Despitethemanytechnologicaladvancesinfreight,truckerscontinuetotransportemptycontainerswhentheyreturnorpick-upgoods.Carryingemptycontainersinthismannerwastestimeandmoneyfordriversandcompanies;italsoincreasescarbondioxideemissionsandunnecessaryfuelconsumption.However,implementationofVCYscaneliminatethisinefficiency.VCYleverages

iv

internet-basedsystemstolocateemptycontainersinreal-timeandfacilitatesexchangeswithouttheuseofaphysicalcontaineryardordistributionnode.

Thedesign-basedguidelinesoutlinedinthispaperaddressphysicaldesignelementsatdistributionnodesthateitheraidorimpedefreight.Asidefromdesigningfacilitiesfortrucktypes,loads,easeofmovementandmaneuverability,freightroutes,andparkingandloadingzonesatdistributionnodes,design-basedguidelinesshouldbetakenintoaccountforrouteswithinmetropolitanareasconnectingdistributionnodes.Inefficienttruckmovementscausedbypoorlydesigneddistributionnodescanhaveasimilarnegativeneteffectonthemovementofgoods,theeconomy,andtheenvironment.Implementingdesign-based-guidelinesattrucknodescannotonlypromotemodernefficienciesbutalsoincreasesafetyforallmodesoftransportation,maintaintruckmobilityandaccess,andreducenegativeenvironmentalimpacts.

Tofurthereasemovementbetweendistributionnodes,thiswhitepaperalsoassessesthepotentialbenefitsofweigh-in-motiontechnologies.Traditionally,freightfacesdelayswiththeenforcementofweightlimits.However,weigh-in-motiontechnologyallowstruckerstomeetregulationswhileenroutetotheirdestinations.Thisnotonlyeliminatestraveltimeandthecostsassociatedwithit,butalsoincreasesoverallfreightsafety,reducesequipmentandhighwaydamage,andcurbsharmfulairemissions.ThisWhitePaperconcludeswithrecommendationsthatinformnextstepsinthedevelopmentoftheCaliforniaSustainableFreightActionPlan.

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IntroductionThisWhitePaperpresentsbestpracticesandrecommendationsonoperationalmodernizationatdistributionnodestoincreasetheefficiencyofCalifornia’smultimodalfreightsystem.TheEfficiencyStrategiesDevelopmentGroup(EFDG)scopedocumentstates:

“ThisThinkTankwillbefocusedonopportunitiesforFederal,Stateandlocalpoliciesandtheprivatesectortoremovesystem-widebarrierstotheefficientmovementoffreight.”

Towardthatend,thisdocumentseekstoidentifytheinterrelatedfactorsthatleadtocongestionandbottlenecksattradenodesthatnegativelyimpactthebroadersupplychain.Thosechallengesinclude,butarenotlimitedto,obsoleteinfrastructure,lackofconvenientaccesstooptimalfuelandenergysources,technologicalbarriers,fundingdifficulties,lackofindustryengagement,andlapsesindesignandplanning.Afterdescribingtheobstaclespreventingoperationalmodernization,thispaperwillrecommendstrategiestoaddressthosechallengesinwaysthataddresstheStateofCalifornia’sgoalstoimprovefreightefficiencyandenvironmentalsustainability.

Theme1:EnergyEfficiencyAtMarineTerminalsPortfacilitiesrequireatremendousamountofenergytopowerthebroadrangeoftransportationsystemsrequiredtomovefreightinandoutofterminals.Assuch,thisputsaburdenonlegacyenergygrids.ToaddresstheeconomicandenvironmentalchallengesfacingCalifornia’sportsrelatedtofreightefficiency,theCaliforniaEnergyCommissionandfiveportsspanningnorthernandsouthernCaliforniaformedthePortsEnergyCollaborative.ThePortsEnergyCollaborativeprovidesaforumfortheCommissionandtheportstodiscussimportantenergyissues,mutualchallenges,andopportunitiesfortransitioningtoalternativeandrenewableenergytechnologies(PortsEnergyCollaborativeCaliforniaEnergyCommission,2016).

UsingthePortofLongBeach’sEnergyIslandsystemsapproach,andthePortofLosAngeles’splanneddevelopmentofaportmicrogridthatispoweredbytheLosAngelesDepartmentofWaterandPower(LADWP)HarborGeneratingStation(PortofLosAngeles,2014),theportsseektobecomeself-sustainingfacilities.Introducingmicrogridsintomarineterminalsisanewconcept,thereforethereisnosignificantbodyofliteratureaddressingsuchimplementation.Toaddressthischallenge,theresearchbeganwithacarefulreviewofPortofLongBeachEnergyIslandplanningdocuments,thePortofLosAngeles’planneddevelopmentofaportmicrogrid,andcorrelatedthosefindingswithexistingliteratureonthestudyofmicrogrids,whichisaconceptforwhichalargerbodyofresearchexists(particularlyasaresponsetothedamageandfalloutconnectedtothestrugglingpowergridontheEastCoastafterHurricaneSandy).Inthisway,theforthcomingresearchonmicrogridsatmarineterminalscouldalsobeappliedtosmallermarineterminals,airports,concentrationterminals,anddistributioncenters.

2

StatementoftheProblemTheportsofLongBeachandLosAngeleshavemadecommitmentstousethebestavailabletechnologiestoavoidorreducenegativeenvironmentalimpactsandpromotesustainability,whichhasresultedinsignificantincreasesinelectricalequipment.Reducingairemissionshasbecomeapriorityforindustrystakeholdersacrossthesupplychain,notjustportoperators.IndustrystakeholdershavemadeinvestmentstomeettheState’sVesselat-berthregulations,andocean-goingvesselsarerequiredbylawtoreduceemissionswhileat-berthviashoresidepoweroranalternativemethod.

AstheportsofLongBeachandLosAngelesmovetowardzero-emissiongoals,relianceonelectricalpowerhasdramaticallyincreased,andon-terminalelectricityusageispredictedtoquadrupleby2030comparedto2005(PortofLongBeach,2015).Thus,“electricaldemandsareincreasingformanagementofthelogisticsofgoods”(Parise,Parise,Martirano,Chavdarian,Su,andFerrante,2016).TheLosAngelesandLongBeachportsrequiretremendousamountsofenergytopowerthebroadrangeoftransportationsystemsrequiredtomovefreightinandoutofterminalsasshowninTable1whichliststheenergyconsumptionsofbothportsin2012.

(Parise,Parise,Martirano,Chavdarian,Su,andFerrante,2016)

Marineterminalsputatremendousburdenonagingelectricalenergygrids,andportsfacevulnerabilitiestopotentialregionalpoweroutagesthatwouldhinderfreighttransportation.Therefore,itisimperativethattheportsofLosAngelesandLongBeachdevelopaplanofaction“toimprovetheoverallpowerprofileofPortoperationsinamannerthatisprotectiveofthenaturalenvironmentandthePort’scontinuedeconomicviabilityandnationalcompetitiveness”(PortofLosAngeles,2014).Furthermore,anadaptive,flexibleactionplanisneededduetoadvancesandchangesintechnologyandoperations,makingany“energymanagement”an“ongoingprocess”(PortofLosAngeles,2014).

WiththeimplementationofthePortofLongBeach’sEnergyIslandsystemsapproach,portscanbecome“islands”ofsustainableenergygenerationbyusingmicrogridsandenergystoragesystems.Thissolutionwilladdresstheports’increasingdemandforelectricityasittransitionstomoreenvironmentallysustainableequipment.Inaddition,thedevelopmentofan

3

organizationalfoundationandprograms,policies,andstudiessimilartothe“EnergyTeam”andthe“PortEnergyPolicy”inthePortofLosAngeleswillprovidethenecessaryleadershipandsupporttoimproveoverallefficiency,reliability,andresiliencyofenergyoperationandmanagement(PortofLosAngeles,2014).

DescriptionThePortofLongBeach’sEnergyIslandInitiativeseeksto“providereliability,resiliency,andeconomiccompetitivenesstotheLongBeachportcomplexanditsmarineterminaltenantsvialocalizedpowergenerationandadequatefuelinginfrastructuretosupportcleantransportationoptions”(PortofLongBeach,2015).Toaccomplishthis,theInitiativewillcreatean“island”ofrenewableenergytechnologieswithmodularself-generationsystemsthatutilizelowcarbontechnologies,andload-controllingenergystoragestrategies(PortofLongBeach,2015).AnotablepartofthisEnergyIslandInitiativeistheintegrationofintelligentstoragesystemsinsmartmicrogrids.

Microgridsaresubsetsofagreatergridandusuallyincludetheirownenergygeneration,demand,andtheabilitytomodulatepriorityenergydistributionorstorage(Chan,2012).Itcanbeassmallas100kilowattsoraslargeas100megawatts.AccordingtoParise,Parise,Martirano,Chavdarian,Su,andFerrante(2016),smartmicrogridsarethe“mostrevolutionaryinnovation”withtheabilitytoreverseutilizationoftheshore-to-shiporship-to-shoreelectricalpowerorstorage,andinthefuture,dockedshipsmaybelocalgeneratorsthatcansupplygreatquantitiesofenergy1totheportgridorregionalmaingrid.Smartmicrogridsarenecessaryforportstooptimallymanagetheenergyflowsandmakegridsefficientandself-sustainablesystems(Martirano,Falvo,Sbordone,Arboleya,Gonzalez-Moran,Coto,Bertini,andPietra,2013).Belowisanoverviewofthemaincomponentsinacommonmicrogrid:

1 The creation of “great quantities” of energy is not conceivable in consideration of the purpose of the State’s at-berth regulations, which is to eliminate vessel emissions – regardless of the technical ability of vessels to do so or the desire to create energy independence.

4

(Romankiewicz,Qu,Marnay,andZhou,2013)

Furthermore,smartmicrogridsareuniqueastheyintelligentlycoordinateandbalancedifferentenergyproductiontechnologies.Whenthemicrogriddetectsadropinsolargenerationforexample,itcanincreaseproductionelsewhereorreduceenergydistributedinnoncriticalareasoftheporttomakeupforthedifference.Likewise,ifwindgenerationexceedsdemand,themicrogridcanchargeadditionalelectricalvehiclesorstoretheexcessenergyforlateruses.“Thisintricatedanceamongsupply,demand,andstoragecanenableacleanerandmoreresilientfuture”(Chan,2012).Byusingsmartmicrogridsandstoragesystems,portsareabletotaketheformofanelectrical“island”andensuresmoothproductionanddistributionofelectricity.

DevelopingsustainablesourcesofelectricityarealsofeaturedinthePortofLosAngeles’sEnergyManagementActionPlan(2014).“Integrationofenergymanagementpracticesandrenewablepowergenerationtominimizethedepletionofnaturalresourcesandprovideeconomic,social,andenvironmentalbenefits,”isastatedgoal.“Opportunitiesexisttostrategicallyreducegreenhousegas(GHG)emissionsfromterminaloperationsbyeitherimportinggreenelectricityfromLADWPrenewableenergysourcesorgeneratingcleanenergyatthePort.LocalgenerationoptionsthatreduceGHGemissionscanincludenaturalgas-firedcombinedheatpower(CHP),solar,wind,andoffshorewindandwaveenergy.”Towardthatend,theCityofLosAngelesHarborDepartment’s(HarborDepartment)Photovoltaic(PV)SolarPowerProgramemergedfromapartnershipbetweentheCaliforniaAttorneyGeneral(AG),theMayoroftheCityofLosAngeles,andtheHarborDepartmenttoreducegreenhousegassesandsupportthePortofLosAngeles(Port)CleanAirActionPlan(CAAP).OneofthegoalsofthepartnershipisfortheHarborDepartmenttoinstall10megawatts(MW)ofPVsolarpowerwithintheport,orotherlandownedbytheHarborDepartment,bytheendofcalendaryear2012intwophases.PhaseOnewouldbethedirectpurchaseofaoneMWPVsolarpowersystem(PVSystem)bytheHarborDepartmentforoperationundertheCityofLosAngelesDepartmentofWater&Power’s(LADWP)NetEnergyMetering(NEM)Program.PhaseTwo

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wouldbetheinstallationoftheremainingnineMWthroughaseriesofRequestforProposals(RFP)tosolarpowerdeveloperswhowouldtakeadvantageoffederal,state,andLADWPincentivesandoperatethePVSystemsunderafutureLADWPpowerpurchaseagreement(PPA)program.

AsofFebruary2016,theHarborDepartmenthas1.6MWofPVsolarpowerinstalledwithinthePort’sboundary.SincetheHarborDepartmentwasbehindscheduletomeetits10MWgoalforvariousreasons,itrequestedandwasgrantedanamendmenttoitspartnershipwiththeAG.TheamendmentdetailsapathunderwhichtheHarborDepartmentwouldmeetits10MWcommitmentbytheendofcalendaryear2018.Atpresent,another1.3MWofPVsolarpowerareunderconstructionand13.4MWareunderdevelopmentthroughacombinationofHarborDepartment,HarborDepartmenttenant,andsolarpowerdeveloperprojects.TheHarborDepartmentanticipatesitwillbothmeetandexceedits10MWgoalbytheendofcalendaryear2016.

Withtheimplementationofmicrogrids,thearchitectureoftheports’electricalsystemmustbeconsideredasitsignificantlyimpactstheperformanceofthesystem.Thestructurecanbecomeincreasinglycomplicatedbasedonportareaconfiguration,powersources(utilityandrenewable),anddifferentpowerdemandsfromvaryingequipment.Theremustalsobeplansformaintainability,flexibility,expandability(Parise,Parise,Martirano,Chavdarian,Su,andFerrante,2016).

AnotherpartofthePortofLosAngeles’EnergyManagementActionPlan(2014),istoformthe“EnergyTeam”andestablishthe“PortEnergyPolicy.”ThemainpurposeoftheEnergyTeamistoverifythatprojectsandpoliciesundertheplanareimplementedandfollowed.TheEnergyTeamessentiallyservesaspurveyorsforthePortEnergyPolicyandthemanagementofoperationsandenergyatthePort.Undertheplan,theteamleader,or“projectmanager,”isalsoresponsibleforcreatingplanstoengage“keystakeholders”intheadvancementofprojectsandotheractions.Todoso,theEnergyTeamconsistsofindividualsfrombusinessdevelopment,engineering,governmentaffairs,informationtechnology,realestate,andlegal,alongwith“expertsknowledgeableinenergymanagementandportoperations”(PortofLosAngeles,2014).Asidefromthemembers’expertiseinenergymanagementandportoperations,theEnergyTeamisstrategicallycomprisedofindividualswitharangeofskillsandknowledgetoaccomplishawidevarietyoftasks,suchas:

• CoordinatewithLADWPtoplan,develop,finance,andimplementenergyinfrastructureimprovements;

• CollaboratewithPOLBonjointPortenergyefforts;

• Developandmanagestakeholderoutreach;

• Workwithlocal,stateandfederalregulatoryagencies;

• OverseeandmanagestudiesandmodelingeffortsrequiredtodevelopanEnergyMasterPlan;

• Manageenergy-basedtechnologyprograms;

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• DevelopandmanagePortincentiveplans;

• ServeasthePortinterfacewithelectricityandgasproviders;

• Evaluatethefindingsandrecommendationsofenergy-relatedstudies;

• Developeducationandoutreachprogramstoincreaseenergyawareness;

• Developenergymanagementbestpracticesandtrainingprograms;

• EvaluateprojectsbasedonalignmentwithPortEnergyPillars;

• Identifyandsecurefundingopportunities;and

• AdaptivelymanagetheEMAPtotakeadvantageoflessonslearned,newtechnologies,andoperationalapproaches”(PortofLosAngeles,2014).

AsidefrompushingtheEnergyManagementActionPlanforward,theEnergyTeamisalsoresponsibleforimprovingcollaborationwithLADWP,porttenants,andotherimportantstakeholders(PortofLosAngeles,2014).

Intermsoffreightefficiency,thismeanstheimplementationofelectricity-drivenportsandgreaterterminalautomation.Thiscanincreasefreightefficiencyandbetteraddresscongestionmanagementatdistributionnodes.Also,withtheimplementationofanelectricalportrunbymicrogrids,therewillbegreaterincentivesanddemandtousesmartervehiclesthatcauselesstrafficdisruptionandmoreefficiencythroughbottlenecks(AmericanHighwayUsersAlliance,2015).ThisisespeciallytruewhenpairedwithanEnergyTeamthatcanmanageenergyandoperationsatportsanddistributionnodes,andarealreadyfamiliarwiththeresearch,evaluation,andimplementationinthegrowingfieldofintelligenttransportationsystems(ITS)technologiesintrucking.Furthermore,havingateamofexpertsdevotedtoenergyandfreightwillhelpportslikeLosAngelesreachtheirgoalsinresiliency,availability,reliability,efficiency,andsustainabilityinfreightefficiency.

ExpectedBenefitsTherearemanybenefitsforportsanddistributionnodesleveragingmicrogrids’capabilitytobalanceoneormorelocalpowergenerationsourcesandself-sustainingnature.Benefitsinclude:

• integrationofrenewableenergysourcesandreducedenvironmentalimpact,

• protectionforcriticalinfrastructurefrompowerlossandmaintainingoperationsduringoutages,and

• efficientmanagementofenergyproductionandconsumption(Wartian&Putnam,2013).

Thesebenefitslendthemselvestodependable,localenergyefficiencyandmanagement,andenhancedsafetyandreliability.Real-worldexamplesofmicrogridreliabilityandresiliencyareshowninKorea,Denmark,California,andHawaiiwheremicrogridshavebeenstress-testedannually.Thismeansthatmicrogridsweredisconnectedfromthegreaterormainregionalgrid,

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anddespitethat,wereabletomeetpeakpowerdemandsfromits“island”ofenergyproductionandstorage.

Anotherexampleoccurredin2009inSanDiego.WhentherestoftheSanDiegoutilitygridwasthreatenedbywildfires,themicrogridattheUniversityofCalifornia,SanDiego,continuedtosupplyelectricalenergytotheuniversity’slightingsystem(Chan,2012).TheHalifaxPortAuthorityannounceditsplantobethefirstportinAtlanticCanadatoprovideshorepowerin2013.Itsgoalwastoprovideshorepowerin2014andallowshipstopluginandturnofftheirauxiliaryengines.Vesselsareusuallyinportforapproximatelyninehours,andwillemitnocarbondioxide,mononitrogenoxides,sulfuroxides,orparticulatematterfromauxiliarygeneratorswhileconnectedtoshorepower.ThiswilldramaticallyreducethePortofHalifax’sharmfulairemissions(Sain,2014).

AmajorexpectedbenefitofimplementinganEnergyTeam(ascalledforinthePortofLosAngelesEnergyManagementActionPlan[2014]),isthatspecificmetricsandgoalsbecomeviableforprioritizationandtrackingofvariousenergymanagementandoperationprojectsandstudies.Thiswillbetterpositionportstoreachtheirgoalsinresistingpoweroutages,enhancerecoverycapabilitiesfromnaturaldisastersorgridoutages,meetfuturepowerdemands,minimizedisruptionsinoperations,reduceenergyusageandcosts,andreduceharmfulemissions.Byassigningspecificmetricsofmeasurementtotheselectedcriteriaestablishedintheenergymanagementpolicy,specific,realistic,andobtainablegoalscanbedetermined.Forinstance,thePortofLosAngelessetsspecificmetricstopinpointwhenandwherecertain“powerevents”takeplacewithintheport.Italsoanalyzeswhichindividualtenantsareaffectedbythesepowerevents,andhowthiseffectstheoverallpowersystem.ThePortofLosAngelesencouragestheHarborDepartmentandalltheport’stenantstorecordandtrackalldata,sothatbenchmarksforenergyconsumptionmaybesetandutilizedforfutureplanning(PortofLosAngeles,2014).

HowMicrogridsCanPromoteFreightEfficiencyHowcanenergyefficiencyatmarineterminalspromotefreightefficiency?TheanswertothisquestionrequiresabroadunderstandingofGov.JerryBrown’sexecutiveorderthatcallsforanewfreightinitiativethataddressesthreeinterrelatedgoals:economiccompetitiveness,amovetowardzeroemissions,andoperationalefficiency.Ifthesethreegoalsaretobereached,policyandplanningeffortstobringthosegoalstofruitionmustbecoordinatedandreinforcedratherthandetractfromeachofthethreeindividualgoals.

Inaddition,implementationofmicrogridsmaybecost-effectiveandimprovethelocaleconomybyattractingnewbusinesses,promptingqualityjobs,advancingnewtechnologies,andincreasingcustomerretention(PortofLongBeach,2013).Forinstance,ChevronEnergySolutions2installedamicrogridatSantaRitaJailinDublin,California,aspartoftheDepartmentofEnergy’sOfficeoftheElectricityDeliveryandEnergyReliability’sRenewableanddistributedSystemsintegrationprogram.Thesmartmicrogridincorporatedfuelcellscapableofproducingheatandpowerenergy,solarphotovoltaicsystem,windturbinegenerators,batteryenergy

2 Chevron Energy Solutions has been acquired by OpTerra Energy Services.

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storage,andbackupdieselgenerators.Theincorporationofthemicrogridreducedthejail’speakpowerloadby95percentandreducedenergyconsumptionduringpeakhoursby98percent.Theprisonalsoannuallysaved$110,000onelectricitybills(NationalEnergyTechnologyLaboratory,2014).

Intermsoffreightefficiency,thebenefitofmicrogridscanbeappliedtohybridandelectrictrucks.“Arecentstudyfoundthattheexpansionofhigh-efficiencytruckscangenerate$24billioninneteconomicbenefitsandgrow124,000jobsintheUnitedStatesby2030”(CaliforniaAirResourcesBoard,2010).Inaddition,thiswillhavereducedlong-termoperatingcosts.Hybridandbattery-electrictruckshaveexpandedbodyorchassiscombinationsthatallowforgreaterfreightefficiency,andtheuseofmicrogridsatdistributionnodescandirectpowertochargetrucks(CaliforniaAirResourcesBoard,2010).

Furthermore,microgridscansupporttheindustry’simplementationofITSintruckingtoincreasehighwaycapacity,andutilizationofcruisecontrolinvehiclestoallowsaferplatooningatcloserdistancesandathigherspeeds(AmericanHighwayUsersAlliance,2015).Already,“truckswithactiveemergencybrakingandblindspotwarningsystemsarepreventingrear-endandsideswipecollisionsthattraditionallycausehundreds,ifnotthousands,ofdailytrafficjams”(AmericanHighwayUsersAlliance,2015).Microgridscansupportthesetechnologicalsolutionsandimprovefreightefficiencybyprovidingpowerforthesesmartvehicles.

Othertechnologicalinnovationsinfreighttransportationthatmayneedreliableresilientpowerprovidedbymircrogridsinclude:electricaltollcollection,whichgreatlyspeedstrafficthroughtollbooths,rampmetering,trafficsignalcoordination,automatictransmissionshiftingintrucksusingadvancedmapsandreal-timedatatoreducefuelconsumptionandincreasesafety,andcongestionpricingbasedonITStechnologies(AmericanHighwayUsersAlliance,2015).

Thus,withthecontinuoustechnologicalevolutioninfreightanddemandforhigherperformances,itmakessensetodevelopanenergymanagementteamtomeetoperationefficiency.Anenergymanagementteam,similartothePortofLosAngeles’EnergyTeam,canorganizeandcoordinatefreightobjectivesandneeds,operatecontrols,measures,andprocedurestoreduceenergyconsumption,andincreasefreightefficiency(Parise,Parise,Martirano,Chavdarian,Su,andFerrante,2016).

ExpectedCosts“Asupplyofreasonablypricedandreliablepoweristhenumberoneconsiderationforlargescaleelectrificationeffortsatports”(Sain,2014).AccordingtothePortofLongBeachfiscalreport,itallocated$750,000forEnergyIslandInitiativeplanningactivities(POLB,2015).SincetheEnergyIslandInitiativeisspecifictothePortofLongBeachandisstillinitsinitialplanningphase,expectedcostsfortheinitiativeareunknown.However,asthePortmovesforwardwithitsInitiativePlanningphase,specificmilestonesandfundingwillbeclearerwiththeimplementationoftheinitiative’sthreephases,shownbelow:

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TheProgramOverviewstatesthatthePortanticipatesPhase1oftheprogramtobeimplementedoverthenextoneortwoyears,andPhase2willbeapproximatelythreeyears.ThePortofLongBeachplansoncompletingPhase3andoverallimplementationoftheprojectinapproximatelytenyears(PortofLongBeach,2015).

Elsewhere,inacooperativeinitiativebetweentheHalifaxPortAuthority,theGovernmentofCanada,andtheProvinceofNovaScotia,thePortofHalifaxplanstoprovideshorepowerforparkedvesselsin2014.Partofthatcooperativeinitiativecallsfortheimplementationofmicrogridsasabaselinetoapportionthepowerneededforthemarineterminal.Thiswasa$10millioncooperativeinitiative(Sain,2014).

InaninterviewinMarch2015,GilC.Quiniones,thePresidentandCEOoftheNewYorkPowerAuthority(NYPA)andChairmanoftheElectricPowerResearchInstituteannouncedNYPA’splanstoutilizemicrogridsintheirenergyefficiencyplans.ThroughtheNYPrizeinitiative,NewYorkplantofundupto$100,000forupto25microgridfeasibilitystudies,and$1millionforuptotendetaileddesigns,and$7millionforconstructionofuptofiveprojects(Quiniones,personalcommunication,2016).

RoleofthePublicSectorAccordingtoSaraC.Bronin,professoroflawandprogramdirectorfortheCenterforEnergyandEnvironmentalLawattheUniversityofConnecticut,“Innearlyeverystate,thelegalandregulatorychallengestoimplementingmicrogridsarebyfarthebiggesthurdle”(Magill,2013).Therefore,thePortofLongBeach’sEnergyIslandconceptrequiresfullcollaborationwithtenants,cityagencies,departments,environmentalgroups,labororganizations,localcollegesanduniversities,andcommunitymembers.

Otherlessonscanbedrawnfromtheexperienceofmicrogridsinotherlocations.AccordingtotheNewYorkStateEnergyResearchandDevelopmentAuthority(2010),microgridsarenotdefinedintheNewYorkStatelawgoverningtheelectricandsteamindustries.Therefore,intheirimplementation,ownershipandservicemodelsarenotillegal.However,microgridfeatureswillvarydependingonthetechnologiesdeployed,whetherthesystemislocatedonprivateorpublicproperty,orwhetherservingresidentialorunaffiliatedcustomers,andsizeofthedistributionarea(NewYorkStateEnergyResearch&DevelopmentAuthority,2010).

However,accordingtoQuiniones(2016),theNewYorkStatePublicServiceCommission’sReformingtheEnergyVision(REV)is“transforminghowcustomerenergyprojects,includingmicrogrids,participateinNYenergymarkets.”ThismeansthattheNewYorkStatePublicServiceCommissionhasimplementednotonlypolicyregulationssince2010,butalsoregulationsthataddincentivestobuildingmicrogrids.NewYorkrecognizedthebenefitsfrom

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microgrids’automatedcontroltechnologiesthatenablelocalenergysourcestoseamlesslyoperateaspartofamaingridorindependentlyfromit(Quiniones,personalcommunication,2016).Withregulationsthatwillcreateamarketformicrogids,NewYorkiseasingthepublicsector’sburdentosupplyenergybymakingitpossibleforsmallbusinessestobuildmicrogridsandgeneraterevenue,therebyproducingjobsandjumpstartingthelocaleconomy.

Romankiewicz,Qu,Marnay,andZhou(2013)recommendpolicymakers“developstandardsandprocessesforinterconnectionofmicrogrids”assoonaspossible.Thiswillrequirepolicymakerstoproactivelyplanforshort-termreviews,butalsobeabletoevaluatethelargescaleimpactsofamicrogrid.Also,toincreaseincentivestomonetizemicrogrids,policymakresshould“considermodificationstoelectricityratedesign”(Romankiewicz,Qu,Marnay,andZhou,2013).Thismeanslookingatpricinganddemandchargesonboththepurchaseandsalesideofthemicrogridtransaction.Furthermore,thepublicsectormusttakestockofcurrentincentivepoliciesandanalyzethebarriersandopportunitiestoimplementingmicrogrids(Romankiewicz,Qu,Marnay,andZhou,2013).Thiswillallowthepublicsectortobetterenabletheuseofmicrogridsinvariousindustriesandcommunities.

ImplementationChallengesAmajorchallengeinvolvedintheimplementationofmicrogridsisassessinghowthecostofmicrogridtechnologieswillchangeovertime,andhowvulnerablesuchfacilitiesmightbetochangingfuelandenergygridcosts.Onsiteenergystoragealsoneedstobeassessedalongwithdependenceonfuelsuppliesanddeliveries.“Whiletechnologyadvancementsarefacilitatingbusinessandutilitymicrogridimplementations,theintegrationofdistributedgenerationintoautilitysystemisnotatrivialmatterandfacilityandutilityexpertsneedtoproactivelygetinvolvedtoaddressemergingissues”(Masiello,2013).

AccordingtoParise,Parise,Martirano,Chavdarian,Su,andFerrante(2016),portshavetheuniquechallengeoflimitedpotentialonsiterenewablepowergeneration.Thisisduetothefactthatlandareaiscomprisedofmarineterminalsdedicatedtomaritimegoodsmovementoperations.

Themostcommontechnicalbarrierstomicrogridsincludetechnologycomponents,dual-modeswitchingfrommaingridconnectionto“island,”powerqualitycontrol,andprotectionissues.Also,regulatorybarriersexistininterconnectionruleswiththemaingridandthebi-directionalpowerflowbetweenthemicrogridandthemaingrid.Thereareunfaircostdistributionsbetweenentitiesutilizingmicrogridsandwithsharedlocalandregionalpowertrade.So,despitethe“pushtobuildmicrogrids,”the“lawsandrulesgoverningthesaleandtransmissionofpower”aretoonewtofullyregulatetheimplementationofmicrogrids(Magill,2013).AccordingtoRomankiewicz,Qu,Marnay,andZhou(2013),“thereisnotastrongenoughpolicysignalforwidespreaddeploymentofmicrogrids.”Soaninternationalstandarddoesnotexistnorageneralimplementationplanformicrogrids.

Themainfinancialbarrier,however,liesinthehighinvestmentneededtoimplementmicrogridsandreplacementcostsofthemicrogrid.Furthermore,therearestakeholderbarrierswithconflictingself-interestsandexpertiseinmanagingmicrogridoperations(Soshinskaya,Graus,Guerrero,Vasquez,2014).

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Furtherchallengesimplementingmicrogridsinportsanddistributionnodesresideinthecomplexityofrelateddesignrequirementsandoperationalspecificationssothatpowersystemsmaybeefficientlybuilt,operated,andmaintained.Becausemicrogridsarefairlynewtechnology,theplanmustallowfordesignrevisionsandexperimentaloperationaldataasthiswillallowoperatorstoidentifyandisolateissuesinthecomplexsystem,adoptadditionalpowersources,andefficientlyconfigurepowerdistribution.Tofullyleveragethisdata,however,requiresanenergymanagementteamtomeasure,analyze,review,andcoordinateprojectstoreduceenergyconsumptionsandaddressinefficiencies(Parise,Parise,Martirano,Chavdarian,Su,andFerrante,2016).

MeasuringSuccessThesuccessoftheEnergyIslandInitiativespecificallyforthePortofLongBeachhingesonwhethertheprogramaccomplishesitsfivegoals:

1. “Advancegreenpower,bothgeneratedandpurchased;2. Usedistributedself-generationwithmicrogridconnectivitytoprovideenergysecurity

andsustainability;3. Providecost-effective,advancedfuelingopportunitiestoportoperators;4. Improveenergyandenergy-relatedoperationalefficiencies;and5. Attractnewbusinesses,createnewjobs,andproducehigherrevenuesorcostsavings”

(PortofLongBeach,2015).

InitsInitiativePlanningphase,thePortofLongBeachthroughitsEnergyTechnologyAdvancementProgram(ETAP)isseekingafundingpartnershipwithPorttenantswithemergingenergytechnologythatmaybeappliedtotheseaportindustry.ThePortisparticularlylookingfortechnologiesthatwillincreaseefficiencyinportoperations,improveenergyreliability,andpotentialhealthandenvironmentalbenefitsofreducedemissions(PortofLongBeach,2015).This,alongwiththePort’spreliminaryresearchonplanning,studies,andpilotprojects(e.g.largewindfeasibility,portwidepower-demandassessment,LNGsiting,costanddemand,anddistributedgenerationandmicrogridfeasibilityamongothers)willdeterminewhetherthePortcansuccessfullytransitionallofthePort’spowercostsforterminaloperationstorenewablepowersources,energystorages,andself-generationsystemsandcontrols.

Toachievethisfulltransition,anenergymanagementteamiscrucialtodeterminethesuccessoffullyimplementingmicrogridsandtostudyitsneteffectonportoperationsandfreight.

Thesuccessfultransitionmaymeanincreasedautomationinportoperations,andthusfreightefficiencyatdistributionnodes.Also,leveragingtheports’electricalpowercouldresultinincreaseduseofhybridorelectricaltrucksasthedistributionnodemayalsoserveaschargingstationandincentivizetheuseofhybridorelectricaltrucks.ItcouldalsoencouragegreaterITSimplementation,leadingtotheautomationandimplementationofinformation-sharingtechnologythatwillmakeplatooningmorefeasible.

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EnergyIsland

Benefits Reduceenvironmentalimpactwhileprovidinghighenergyefficiency,reliability,andqualityoftheelectricityservice;self-generationallowshubsto“island”powersourceortooperateinisolationofmaingridorsupplypowerineventofnaturalorman-madedisasterstocommunity’scriticaloperations,cost-effective,attractnewbusiness,promotegoodjobsandadvancedtechnologies,customerretention

Costs For2016,POLBwillallocate$750,000forEnergyIslandInitiativeplanningactivities;thisincludesresearchandpilotprojectsofadvancemarineterminalenergytechnologies

Publicrole Collaborationwithtenants,agencies,citydepartments,environmentalgroups,labororganizations,localcollegesanduniversities,andcommunitymembers;fundingopportunities,energyevaluation,andincentiveprograms;regulatorychangestoprovidegreaterincentiveformicrogrids

Challenges Limitationofpotentialonsiterenewablepowergenerationsincelandareaiscomprisedofmarineterminalsdedicatedtomaritimegoodsmovementoperations;regulatoryconstraints(i.e.submetersnotallowed)andlackofdirectivesfromenergymanagementimpedethenecessaryinnovationtomeetthenewenvironmentalandenergygoals–needitforelectricenergyutilization;andexistingrulesandlawsinareaofcostforelectricalpowerconsumptionanddistributionofcost;highinvestmentcosts

Theme2:ImprovedTruckAccessAtNodesItisnosecretthatCaliforniaishometosomeofthemostcongestedroadwaysinthenation.TheAmericanTransportationResearchInstitute(ATRI)andtheFederalHighwayAdministration(FHWA,2011)recentlyreleasedareportonthetop250worstbottlenecksinthecountry.ResultsfromthatstudyfoundthatCaliforniawashometo15ofthe250worstbottlenecksacrossthecountry.All15ofthosebottleneckswereamongthetop160worstbottlenecks,withseveninthetop100and13inthetop150.InanotherbottleneckstudyreleasedbytheAmericanHighwayUsersAlliancein2015,Californiahad14outof50oftheworstbottlenecksinthenation.Althoughthetworeportsuseddifferentmethodologies,bothissuedfindingsthatpointedtotheclearneedforimprovedoperationalefficienciesacrossCalifornia’ssupplychain.Truckcongestionandbottlenecksleadtoidlingtrucksthatgeneratemoretoxicemissions,slowdownsincommerce,andcongestionthatimpactsothermodesoftransportation—thusimpactingqualityoflifeforallCalifornians.Toaddresstruckcongestion,thiswhitepaperrecommendsfurtherinvestigationofaseriesofstrategiestopromoteoperationalefficienciesatcriticaltrucknodes.Thefirstofthosestrategiesistruckplatooning.

TruckPlatooningInadditiontoaneedforimprovedvelocityandefficiencywithinthetransportationsector,environmentalimpactandcostreductionshouldalsobemajorpriorities.Transportationis

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responsiblefor28percentofthenation’scarbonemissions,secondonlytopowerplantsat31percent(Davies,2015).Bynearlyanymeasure,trucksplayasignificantroleincontributinggreenhousegas,consumingmorethan25percentofthefuelburnedannually.Fuelalsoaccountsfor39%ofoverheadcostsforthetruckingindustrywiththeaveragetruckburning20,500gallonsoffuelperyear.Newtechnologiesandpoliciesneedtobeembracedinordertoimprovefuelefficiencyintrucks.Anincreaseinfuelefficiencywouldallowforbothsavingsinfuelcosts,andreductionofemissions.Effortshavebeenmadetoincreasetheaerodynamicsoftruckfleetsbyutilizingfaringsandotherretrofittedaccessories,but“there’ssomanyelectronicsonthere,”Robinson[seniorvicepresidentofmaintenanceatflatbedcarrierMeltonTruckLinesInc.,Tulsa,Oklahoma]said.“Youhavetohavealaptopwithallthedifferentsoftwaretochecktheengine,checkthetransmission,checkthetrucks,andsoonandsoforth(Clevenger,2012).”Thismeansthatnewwaystooptimizefuelefficiencymustbefound,sincethereispushbackagainstexistingsolutions.

DescriptionOneoftheproposedmethodstoincreaseefficiencyinthetruckingindustryiscalledtruckplatooning.Truckplatooningistheprocessoftetheringtwoormoretruckstogetherwithawirelesssignal.“Attheheartofplatooningisawirelesselectroniccommunicationssystem,alsoconnectedtotheinternet,whichtellsthesecondtruckwhenthefirsttruckdriverhasbraked.Thesecondtruckbrakesalmostinstantaneouslywithoutdriverintervention.Inessence,bothtrucksbrakeatthesametime(Kahaner,n.d.).”Thefronttruckcontrolsspeedandbrakingforthewholechainoftrucks,whilethefollowingvehiclesremainengagedinsteering.Alltrucksinthe“train”areequippedwithdashcamerasandmonitorsthatkeeptrackoftheroadinfrontoftheleadtruck,aswellastheroadbehindthereartruck.Thoughtheconcepthasbeentoutedforyearsasaremedytohighfuelcostsandtrafficcongestion,ithasnotbeenuntilrecentlythattechnologicaladvanceshaveactuallymadeitpossible.Withthatsaid,therearestilltechnologicalhurdlesthatneedtobeovercomebeforethispracticecanbeusedonawidespreadbasis.“Itisenvisionedthatifaconvoyneedstobejoined,itwouldprobablybeamatterofdrivingtoanentryrampwherethecarwouldthenpollvehiclesonthemotorwayasitlooksforacompatibleconvoytomeshwithforarequiredjourneydestination.(Fleming,2012)ItisstillanascenttechnologythatisbeingtestedinlimitedcapacitytrialsinEuropeaswellasintheUnitedStates.

ExpectedBenefitsTruckplatooningimpactsfreightefficiencyinmultipleways.Whenmultiplevehiclesaretetheredtogetherandheadinginthesamedirectiontheycantravelathigherspeedsbecausedriversdonothavetoworryaboutpredictingthemovesoftheothertrucks.Furthermore,therearesignificantgainsinaerodynamicsasaresultoftruckplatooning.Thereareessentiallytwokindsofdrag:frictionandpressure.Frictiondragisthecontactofairandtheobjectmovingthroughit.Pressuredraghastodowiththelowpressurecreatedastheairmovesaroundtheobject.Intruckplatooning,theleadtruckeliminatesasignificantportionofthefrictiondragforthefollowingtruck(s).Thefollowingtruck(s)helpminimizetheimpactofpressuredragfortheleadtruck.Thisreductionindraghasbeenlinkedtoupto16%infuelsavings,reducingfuelcostsandstopsforfuel,whichimprovesefficiencyandshortenstrips.Thedecreasedfuelusage

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alsoreducestheenvironmentalimpactofshipping,aslessfuelisusedandtrucksgiveofffeweremissionswhentravellingathigherspeeds.

Discussionsoftruckplatooninghavebecomeincreasinglyubiquitousasmoreresearchandrelatedtechnologydemonstrationsreflectbenefitsinbothshippingvelocityandfuelefficiency.OnesuchdemonstrationwascarriedoutbyAuburnUniversity,inpartnershipwithPelotonTechnologies,aCaliforniabasedfirm.ThestudywasconductedatAuburn’sGPSandVehicleDynamicsLaboratorywiththeintentoftestingasystemofuptothreetruckstoconvoy,tetheredthroughawirelessdriverassistivetruckplatooningsystem(DATP).Thestudyfoundanestimated7.5percentincreaseinfuelefficiency,withthereartrucksusing10percentlessfuel,andtheleadtrucksaving5percent(AuburnUniversity,2015).Thisresultwasinpartduetoachievingimprovedaerodynamicsbydecreasingthespacebetweenvehiclesontheroad,butalsobecausetrucksintheconvoycanachieveuniformidealspeedsthatgiveallparticipatingtrucksthebenefitofaddedefficiencyandreduceddrivingtime(AmericanTransportationResearchInstitute,2015).Pelotonestimatesthatifthismodelweretobeappliedtotheentiretruckingindustry,companiescouldstandtosaveacombined$6billionworthofdieselperyear(Peloton,2016).When40percentofshippingfleetsoperatingcostsareindiesel,andthetruckingindustryaccountsfortenpercentofthenation’soverallfossilfuelconsumptionandcarbondioxideemissions,theimportanceofincreasingfuelefficiencyisparamount.

InadditiontothestudythatwascarriedoutbyAuburnUniversity,CaltransiscarryingoutaplatooningtesttrialinconjunctionwiththeUCBerkeleyPartnersforAdvancedTransportationTechnology(PATH)program.Thistechnologydemonstrationwilllikelycommencelaterthisyear.ThetestareawillbecenteredinthePortofLongBeach/PortofLosAngelesarea,andextenduptoStateRoute60.Thisnewbatteryoftrialsintendstousepre-existingadvancesinplatooning,andbuildoffofthem.Onegoalisdevelopandstreamlinethein-vehiclesystemthatwillcontrolthetetheringandspeedregulationprocesses,aswelltheabilitytotetheruptothreevehiclesatatime.Theotherprimaryobjectiveistotestandimprovesystemsthatwillallowplatoonstointeractwithtrafficinasafeandconsistentway,throughmaneuverssuchaslanechanging,merging,aswellasjoiningandleavingaplatoonmid-trip.Thestudyalsoseekstogetdriverfeedbackwithregardtothepreferreddistancesbetweenplatooningvehicles,andsubsequentlycalculatethefuelsavingsforthosedistances(G.Larson,personalcommunication,March1,2016)

Overall,truckplatooningresearchhasbeenconductedregardinghowsystemslikePeloton’scanbedeployedeffectivelyonanindustry-widescale.Fleetsanddriverswhoaveragetripsof500milesormorehavethemosttogainfromusingDATP,whilesmallfleetswouldstillbeabletoreapbenefitsbyusinga“backoffice”systemlikePeloton’sNetworkOperationsCentertofindothertruckstoplatoonwith,potentiallyfromotherfleets.Thistypeofmodelusesacentralnetworkandcenterforclientstologinto,andgetincontactwithotherusersinordertocollaborateonroutesandcreateplatoons.Smallfirmswouldbeabletoexpectpayingofftheirinitialinvestment(hardware,software,installation)withintenmonths,whereaslargerfleetscouldseepaybackinprojected18months.TheAuburn-Pelotonstudyfoundthatplatooningsystemsatworstwouldonlyperpetuatethecurrentlevelsofcongestion,onlyhavingtheabilitytoimprovecongestion.Thereportalsofoundthat,ifmarketpenetrationweretoreach60%,therecouldbemarkedincreasesinefficiencyanddecreasedtrafficcongestionacrossthe

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board,evenforthosenotdirectlyusingplatooningsoftware.Asincreasedtrialsproducegreateramountsofquantifiabledata,truckplatooningwillbecomeamuchmorefeasibleoption,andmorepalatabletobothprivateandpublicdecisionmakers.

TheAuburn-PelotontechnologydemonstrationandrelatedanalysiswasfundedbytheFederalHighwayAdministration.Arelatedbusiness-caseanalysisonthedemonstrationwasperformedbytheAmericanTransportationResearchInstitute(ATRI),whichaddressedtheusers,sectors,andbusinessmodelsthataremostlikelytoadopttheplatooningapproach.ATRIconductedanindustrysurveythatsolicitedbothcarrieranddrivercostandbenefitexpectations.Duetolimitedindustryknowledgeofplatooningatthistime,thesurveyshouldbeviewedasaninitialinvestigationthatmayberefinedasstakeholdersgainbetterunderstandingthroughdemonstrationsandpilottests.Nevertheless,insightscanbefoundfromtheseearlyresults.Findingsfromthesurveyinclude:

• Theplatooningconceptismostadvantageouswhentravelspeedsarehigher(becausedragisn’tasignificantfactoratlowerspeeds),trucktripsarelonger(i.e.,benefitsaccrueovertime/distance),andthelikelihoodofencounteringsimilartrucksinstalledwithDATPtechnologyishigh.

• Industrydataderivedfromsurveysandtechnicalreports(e.g.ATATruckingTrends2013)indicatethatover-the-roadoperations,withanemphasison“truckload”(TL)andline-haul“less-than-truckload”(LTL)sectorswouldexperiencethehighestlikelihoodofencounteringthedesiredattributes.Inparticular,truckloadoperationsoftenhavepre-determinedroutesorcorridorsbetweenlargefreightgenerators(e.g.businessparks,manufacturingcenters,warehouses,retailestablishments).

• Truckrouting:basedonsurveyresponses,75%ofthetimethetruckroutingwasdeterminedinadvanceofthetrip.Althoughthesurveydatashowsthatameaningfulnumberofthesetripsexperiencedunexpectedroutechanges,theabilitytopotentiallyconcentrateDATP-installedtrucksthroughadvanceplanningmayincreaseindustryinterest,atleastbythoseTLfirmsthathavemultipleDATPtrucksanddedicatedroutesbetweenfreightgenerators.

• ThelargestpercentageofTLtripmileageoccursonhighwaysandinterstates,whichimmediatelyimprovestheattractivenessofplatooningtothissector.Basedonthesurvey,71%oftheTLmileagewasgeneratedonlimitedaccessinterstatesandhighways(ATA TechnologyandMaintenanceCouncil,2015)

Inadditiontodomesticplatooningresearch,therearealsoexistingmodelsoftruckplatooningteststhathavebeentestedinternationally,andwhicharebeingincorporatedintodevelopingsystemsfortheU.S.TheSafeRoadTrainsfortheEnvironment(Sartre)program,foundedbytheEuropeanCommissionundertheFramework7program,emphasizesanapproachthatbalancesenvironmentalimpact,trafficsafetyissues,andcongestion(Sartre,n.d.).ItalsoinvestigatesotherpossibilitiesofDATP,suchasincorporatingregularpassengervehiclesintoplatoons,andofpotentiallyallowingforplatoonsservingalmostasmobilecarpoollanes.Thisillustratesthatnotonlyaretheregionsinwhichplatooningisbeingtestedandrefineddiverse,buttheapproachesalsovaryintermsofobjectivesandscope.

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Theincreasingvolumeoffreightpassingthroughtransportationhubsandalongtransportationcorridorsoverthepast10yearshadcreatedbottlenecksthatareincreasinglysevere.Withmorematerialcomingin,thereneedtobesubstantialchangestothewayfreightismovedinordertomitigatethesebottlenecks.Thetruckingindustryisessentialtothiseffort,becausewithouttheabilitytomovegoodsmoreefficiently,thewholesupplychainbecomescompromised.Asitstands,truckingcorridorsarehighlyvulnerabletotrafficfluctuation,accidents,andinfrastructureproblems(eitherfailuresorconstructionprojects).

ThisvulnerabilityiswhatcreatesanecessityforincreasedinvestmentinITS.“Theimplicationsof“smartmobility”and“connectivity”arethereforejustasimportantformanagersoverseeingtheflowofgoodsacrossoceansandraillinesastheyareforthetruckdriverhopingtosavehalf-an-hourofon-dutytimebyavoidingacrowdedweighstation”(Cassidy,2014).Withmorerealtimedatacomingfromvehiclesontheroad,trucknodessuchasportsanddistributioncenterswillbeabletoanticipateandaccountforchallengeswhileprocessingfreightmoreefficientlyandreflexively.Truckplatooningmayplayaroleinattainingthisgoalbecauseitinitiatestheprocessofincorporatingintelligenttransportsystemsintothecab.Foralargerquantityofup-to-date,descriptivedatatobeattainable,amosaicofsystemsdeployedsimultaneouslyisrequired.Ideally,truckswouldplatoonthroughcorridorstonodes,wheretheywouldbeprocessedbypeel-offsystems,andwouldknowwhichcontainerstheywouldpickupwellinadvanceduetocoordinationwithvirtualcontaineryards.“Astruckstravelinterstatehighways,onboardsensorsarecollecting,sending,andreceivinginformation,withthelion’ssharegoingtoandcomingfromafleetmanagementsystem.Butastechnologyadvances,thetruckisbeingknitintoabroader,moreopennetwork”(Cassidy,2014).Thougheachideawouldimproveoperationalefficiencyinitsownright,withoutcombiningmultiplestrategiesthepotentialofeachisdiminished.Lookingatthebiggerpicture,interconnectivitywillbethenewtrendintransportation,meaningthatwhatishappeningattheportwillaffectmovementonthehighway,andviceversa.Therefore,truckplatooningmightbeacorridor-focusedpractice,butitseffectswillinfluencetheentiresupplychain.

Testingofautomatedplatooninghasshownsignificantfueleconomybenefitsduetoclose-headwayfollowingenabledbytheV2Vcommunicationslink.A2013testofanearlytruckplatooningimplementationshowedimprovementsontheorderof4.5%fortheleadtruckand10%forthefollowingtruck,whentravelingat(100kph)64mphat(11m)33ftspacing.

In2014,DOE’sNationalRenewableEnergyLaboratory(NREL)conductedtestsofplatooningsystemsimplementedbyPelotonTechnology.TheSAEJ1321TypeIIFuelConsumptionTestProcedurewasmanagedbyNREL,usingvehiclesloadedat65,000lbsrunningatupto70mph.20-75footinter-vehiclegapswereevaluated.Thetestingdocumentedupto5.3%fuelsavingsfortheleadtruckandupto9.7%fuelsavingsforthetrailingtruck.

TheDutchresearchgroupTNOpublishedanextensivestudyontwo-truckplatooninginearly2015.Theauthorsnotethatthe“politicalandeconomicclimateispositiveforabroaddeploymentofplatooningasinitiallegislationamendmentsareproposedtoallowtestingandexperimentationonDutchroads”(Janssen,Zwijnenberg,Blankers,Kruijff,2015).Tomaximizebenefits,theyintroducetheconceptofaPlatooningServiceProvider(PSP)tosupportadhoc

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formationofplatoons.ThePSPwouldhelpplatoonpartnersfindoneanotherontheroad,aswellascertifyparticipants:

“Foron-the-flyplatooningitisnotnecessarytoknowexactlywhereyourplatoonpartnerisgoing.However,forreasonsofsafetyandtrustingyourplatooningpartner–especiallyifyouarethedriveroftheFollowingVehicle–youmightwanttoknowwhereyourplatoonpartnerisgoing,whethertheleadingdrivertooktherequiredrests,andwhethertheLeadingVehicleisingoodmechanicalconditionandisproperlymaintained.PSPscanestablishqualityschemessuchthattruckdriverscanhavetheconfidencethaton-the-flyplatoonsareonlyformedwith‘trustedpartners’.ThePSPsalsodealwithadministrativedutiesfromtheplatooningactivities,arrangeinsurances,andmakesurethatbenefitsofplatooningaredistributedfairlyamongtheplatooningpartners”(Janssen,Zwijnenberg,Blankers,Kruijff,2015).

Theynotethatplatooning“willallowamoreoptimaluseoftheavailableroadcapacityconsideringanormalsituationwith2trucksdriving80km/hwitha2secondsgap.Withatrucklengthof18.75metresthisresultsinaclaimof82metreroad,excludingthegapsinfrontofthefirsttruckandbehindthefollowingtruck.Usingplatooning,a0.3secondgapwoulddecreasethelengthofthosetwotruckswith46%to44metres.Withplatooningtheexistingroadswillsufficelongerwithouttheneedforadditionallanesorroads,especiallyonroadsegmentswithahighpercentageoftrucks,soroadinvestmentprojectscouldbedelayed”(Janssen,Zwijnenberg,Blankers,Kruijff,2015).

TheTNOteamprovidedausefulsummaryofoverallbenefitsviathischart:

ExpectedCostsDuetothespeculativenatureoftruckplatooning’sdevelopment,itisallbutimpossibletogivestablecostprojectionsasmuchofthetechnologyrequiredisstillindevelopment,andtherearedifferentmodelsbeingtested.Therehavebeenestimatesofaround“€1,500perdriver,basedonexperienceswithLZVandSARTRE14,includingperiodicre-examination,”butthosecan’tbe

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confirmeduntiltechnologicalconcernsaresettled(Janssen,2015).Furthermore,dependingonwhichmodeloftruckplatooningisemployed,costsmayfluctuate.Additionally,““littleattentionhasbeenpaidtooptimallycoordinatingtheformationanddissolutionofplatoonstominimizetotalfueluseasmanyvehiclesmovethroughoutaroadnetwork”(Larsson,Sennton,andLarson,n.d.).Thiscouldposemajorsafetyriskstobothcommercialandcasualdriversontheroad.

RoleofthePublicSectorJustasthecostsarelargelyunknown,therearesomemajorblindspotsregardingwhatmustbedoneonastateandfederalleveltoensurethatthisideacanbeimplemented.Regulationsandlawswouldn’tonlybenecessaryforthefeasibilityofenactingaplatooningregime,butalsotoallowforsubstantially“moreefficiency…ifwecouldconvincethegovernmenttogivedriversofautonomousvehiclesalittlemorelegaltimeontheroad.(Consideringthefactthatourcurrenthoursofserviceregulationsarestilllockedinunendingcyclesoflitigation,Iwouldn’tholdmybreathonthatone)”(Lockridge,2015).Regulationsregardingdistancebetweenvehicles,cruisecontrol,andsharingofinformationwouldneedtobestandardizedacrossstateborders..Furthermore,theremayneedtobephysicalchangesininfrastructuretoallowforelongatedchainsoftrackstravellinginunison(Janssen,2015).Untilthetechnologyissolidified,tested,andtherearetangibleproposalsonthetable,itwillbedifficulttopredictwhatmustbedonebythepublicsector.

ImplementationChallengesTherearenumerousbarrierstoimplementationthatimpactthefeasibilityoftruckplatooning.Unpredictableroadconditionsmaketheprospectoflargetruckstravellingatcloseproximitytooneanotheradangerousproposition,meaningthat“automatedvehicleswillhavetoco-existwithmanuallydrivenvehiclesaswellasotherroadusers(pedestrians,cyclists,etc.)[…]Theliteraturereviewedindicatesthatthistopicissomewhatneglected.(Azra,Englund,andWedlun,2013).”Fleetheterogeneitycouldalsoprovetobeproblematic,giventhatcompaniesoftenhavetrucksofvaryingmakesandagesintheirfleets,someofwhichwouldbecompatibleandsomethatwouldnot.Unforeseenmaintenancecostswouldactasadeterrenttobusinessesimplementingthisstrategy,especiallywithoutanestablishedprecedentormethodology.However,unpredictableroadconditions,fleetheterogeneity,andunforeseenmaintenancecostsareself-evidentchallengesthatlegacytruckingfirmsalsoface.Viewedinthiswaythosechallengesshouldnotbeviewedasuniquetoonlynextgenerationplatooningtechnologyimplementation.Alternatively,computationalcomplexitydoesposemajorconcernsastohowwirelesssystemscouldaccountforpotentiallyeverytruckintheUnitedStatesbeingconnectedtotheirnetwork.Yet,hereagain,thisbarriertoimplementationshouldbeviewedinthepropercontext—giventhatnotalltrucksaregoingtoopt-insimultaneously.Suchplatooningnetworkswillgrowincrementallyinamannersimilartothegradualbuildoutofwirelessphonenetworks.Thatsaid,failuresinwirelesstetheringsystemscouldprovecatastrophicinadverseweatherorroadconditionsandsafeguardsmustbedeveloped.

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VirtualContainerYardsDenselypopulatedfreightnodes(e.g.,LA-LongBeach,SanFranciscoBayAreaandNewYork-NewJerseyregions)facetradeimbalancesbetweenimportsandexportswhichleadtosignificantincreasesincontainertraffic.Italsoworsensemptycontainermanagementissueswhichincludeinefficientemptytruckshipmentstoandfromports.(Theofani&Boile,2007)Primarily,returntripscarryingemptycontainerscauseunnecessarycongestionatterminalswhichnotonlyaffectoverallflowefficiency,butincreaseCO2emissionscausedbyidling(seefigurebelow).

(Islam,Arthanari,Olsen,2010)

VirtualContainerYards(VCY)areInternet-basedsystemsthatcollectreal-timeinformationonthelocationsofemptycontainerstobrokerpotentialexchangesbetweenparticipatingpartieswithouttheneedofaphysicalcontaineryard.ThekeypurposesofVCYsinclude:

• Postingcriticalinformationoncargoandcontainerslocationsstatuses;• Facilitatecommunicationbetweenparticipatingbusinesses;• Permitanddocumentexchangeswithoutmovingcontainerstonodes;and• Assistbusinessesincontainerlogisticdecisionmaking(Hanh,2003).

Inessence,thiswouldsignificantlyalleviatecongestionissuesinadditiontosavingemissionsandfuelconsumption.Additionally,aprivatethird-partywoulddevelopandfacilitatepotentialtransactions,divertinganyimplementationcostsfromthepublicsector.Anexampleofthestreamlinedprocessisdepictedbelow:

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(PortofLongBeach,n.d.)

ExpectedBenefitsImplementingVCYsbenefitbothfreightnodesandparticipatingbusinessesbyreducingcoststhroughgainedefficientoperations.Specificquantifiablebenefitsforfreightnodesvarydependingontheoperationalconstraintsofeachnode.Forinstance,theNewYorkMetropolitanCommitteedeterminedthatVCYswouldeliminateapproximately1,100vehicletripstotheNewYorkandNewJerseyportsperday.Theburdenwouldbeonmajoreconomiccenterstoweighbenefitsrelativetotheirrespectiveoperations.However,freightnodesingeneralwillavoid“additionalgatetransactioncosts,grounding,storageandequipmentcosts,”andsavecarriersabout$200perre-usetransaction(Mongelluzzo,2006).

Fromtheparticipatingbusiness’perspective,efficienciescreatedwilltranslateintosavingsfromreducedfuelcostsanddecreasedtimespenthaulingemptycontainers.Bothfreightnodesandparticipantswillbenefitfromlow-startupandimplementationcostssincethethird-partydeveloperwillberesponsibleforlaunchingandmaintainingVCYsoftware.Therefore,entitieswillonlyneedtopayrelativelynominalfeesforsoftwareusage.VCYimplementationalsoaidsreducingCO2emissionsbygreatlyreducingtruckcongestionandidlingatmajorterminals(Gladstein,Neandross&Associate,2013).ThesuccessofVCYinitiativescanonlybemadepossiblebycompanycooperation.Increasedcooperationwillexponentiallyamplifyaforementionedbenefitsthataffectnearlyeverypartofthesupplychain.Therefore,pushingforVCYimplementationwillonlystrengthenoveralleconomicvitality.

ExpectedCostsCostconsiderationsboildowntocapitalinvestments,annualoperationcosts,andannualmaintenancecosts.However,itisassumedthatvendorswillentirelycovermaintenanceandoperatingcostssincetheyaretheonesdevelopingthesoftware.Therefore,capitalinvestmentsbecometheonlycostconcernforimplementation.Forinstance,thefollowinghypotheticalcapitalinvestmentalternativeswerepresentedinastudyinvestigatingthefeasibilityofestablishingVCYsintheNewYork-NewJerseyregion:

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• ThePortauthoritypayingapercentageofthecapitalandthevendorpaystherest;• Thevendorpayingthepayingthecapitalcostsexcludinginstallation/accessfee;and• Thevendorpayingthetotalcapitalcosts,includingtheinstallation/accessfee

(Theofanis&Boile,2007).

Usercostswilldependonthevendor’sservice.Foranexampleofpricingandservices,seeeModal’scompanywebsite:http://welcome.emodal.com.

Therearealsopotentialweaknessestoimplementationthatwoulddolittletoreducecurrentcostsenvironmentally.First,congestioncouldmovefromfreightnodestoVCYsites,thereforemakingoverallemissionreductionsinsignificant.Also,ifcurrentgrowthprojectionsofVCYimplementationhold,thenrespectiveinitiativeswillhavenegligibleimpactsoncongestion,emissions,andfuelsavingsoverall(Gladstein,Neandross&Associate,2013).

RoleofthePublicSectorIndustry-wideVCYacceptanceis,inessence,atechnologicalparadigmshift.Moreover,thetechnologydependsonresourcesharingmentality,whichwasalreadyproventobeanissuesinceonly2%ofcontainertripsusesVCYserviceswhereavailable.(Gladstein,NeandrosandAssociates,2013).Therefore,successfuluseofvirtualcontaineryardsdependsonaddressingthefollowing:1)determiningthemainfactorsbehindoverallreluctancetoparticipateinthevirtualcontaineryardsand2)spearheadingcollaborationandawarenesseffortsbyhighlightingtheobviouseconomicbenefitsbroughtuponbyincreasedportefficiencies.

Mostfailurescan(atleast)partlybeexplainedthrough“weakprojectgovernanceandlimitedpartnerparticipation”(Theofanis&Boile,2007).Therefore,theroleofthepublicsectorincludesengagingandaccuratelyidentifyinggeneralthird-partyreluctancesthathinderimplementation.Basedonthat,publicsectorentitiesshouldthendevelopaclearproposalthatdetailscompellingsystemgovernancethathighlightsthepotentialbenefitsofVCYstoeconomicvitalityandhowthosebenefitsoutweighthird-partyconcerns.

ImplementationChallengesVirtualContainerYardsoftwarewaslaunchednineyearsagobutprovedineffectiveduetoalackofdemandfortheservice.Diminisheddemandcouldberelatedtoimplementationchallengeswithpracticalconsiderations.Forinstance,LeDamHanh,USCDepartmentofCivilandEnvironmentalEngineering,pointsout:

“…(totheextentthatexisting,oryettobedeveloped,Internet-basedinformationsystemscanbesuccessfullyapplied)successfulapplicationsofWeb-basedinformationdependsonthewillingnessofallparticipantstosharebusinessinformationonatimelybasis,andthisparticularlyrequirescooperationamongoceancarriers.Withoutsatisfyingthesebasicconditions,theroleofthesesystemsinrationalizingemptycontainermovementsintheSCAG[SouthernCaliforniaAssociationofGovernments]regionwouldbelimited.”

Otherconsiderationsmayinclude:

• “oceancarrierfreetimeandperdiemprovisions;”• “inspectionsandliabilityfordamageoninterchangedcontainers;[and]”

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• “oceancarrierincentivesforemptyreturnversusexportloading…”(TheTiogaGroupetal.,2009).

FindingexportloadsforinboundcontainersemptiedatinlanddistributioncentersmayalsoprovedifficultinheavytradeenvironmentsareassuchasSouthernCaliforniaandNewYork-NewJerseywhereimportsoutnumberexportstwoorthreetoone(Mongelluzzo,2006).

Overall,successfulimplementationdependsoninvolvementfromallkeyplayerswithinthesystemtryingtobeimplemented.Thisemphasizesthenecessityforunderstandingandrespondingtotheinevitablyvariedneedsandexpectationsofthoseplayers.However,renewedinterestintheconceptremergedwithinrecentyearsasevidencedbythedevelopmentandgrowthofserviceprovidereModal.Asaforementioned,only2%ofcontainertripsuseVirtualContainerYardservices(whereavailable)whichsuggeststhedemandproblempersists(Gladstein,NeandrosandAssociates,2013).Thatsaid,a2%usagerateforVirtualContainerYardservicesshouldnotbeinterpretedasanoverallreluctancebetweencompaniestoengageincooperativearrangementsbutratheraslowevolutionfromtraditionalpartnershipstonext-generationtechnologydrivenpartnerships.Intermodalismitselfisbasedoncooperativearrangementsandequipmentinterchange–thesearrangementshaveonlyincreasedandbecomemoredynamicovertime.ThelackofVCYusealonedoesnotdiminishtheseintermodalrelationshipsordemonstrateareluctancetoengageinthem;ratheritislikelyamoretraditionalmarket-basedrationale.Regardless,significantgrowthopportunitiesexistforvirtualcontainersyardsandtheburdenisonthepublicsectortobalancethecostsandincentivestoallcommercialplayersanddevelopacompellingvaluepropositionthatincludesanddetailsthefeasibilityofimplementation(includingconsiderationsanyimpedinginformation,institutional,andbusiness-relatedbarriers)(Theofanis&Boile,2007).

Design-basedGuidelinesTheWhitePaperresearchincludedareviewofliteraturerangingfromprivate-sectordocumentstoMidwestandcoastalstateandcityDOTplansthatfocusondesign-basedguidelinesfortruckaccessefficiencyatnodesalongthesupplychain.Design-basedguidelines,inthiscase,refertothephysicaldesignelementsthateitheraidorimpedehowtrucksflowthroughnodes(e.g.,ports,docks,airports,distributioncenters).Portland’sOfficeofTransportationadopteditsDesigningforTruckMovementsandOtherLargeVehiclesinPortlandplanin2008whichofferedcommonexamplesofwhatthesedesignguidelinesmaylooklike.Forinstance,whendesigningfortrucktrafficinanyfacility,designersneedtoadopta“designfor”mentalitywhichmeansconsideringtrucktypesandtheirmovementcapabilities.Ifadesignerknowswhattrucktypeswillbepassingthroughanaccesspoint,theycanevaluatetrackmaneuversofspecifictrucksusingresourcessuchasAASHTOturningtemplatesofsoftwaresuchasAutoTURN(seeFigure1):

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(PortlandOfficeofTransportation,2008)

NOVATechnology,aproducerofloadingdockequipment,publishedadocumentthatoffereddesignguidelinesforsafeandefficientdocks.LikePortland’sdocument,NOVApresentspracticalguidelinesforissuesthatidentifybestwithdesign-basedsolutions.Forinstance,planningon-sitetrafficpatternsservestowardsefficienttruckmaneuverabilitywithinadock.Patternsshouldbedesignedaroundbuildingssothattruckdriversareontheinsideofeachturn,givingthembestcontrolofthetruck.Roadswithinadockshouldalsobeseparatedsoemployeetrafficdoesnotinterferewithtruckmovement(seeFigure2).

(NOVATechnology,2013)

Otherexamplesofcommondesign-basedguidelinesfortruckmovementinclude(WashingtonStateDOT,2014):

• Designatingtruckfreightroutesforhazardousmaterialsoroversize/overweighttruckloads

Figure1

Figure2

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• Managingcurbsidetruckparkingspaces/loadzones• Incentivizeimportersforadoptingnightdeliverypractices• Providingtruckparkingandloadingzonesthatmatchtrucktripdemandconnectingto

businessdistrictsandurbancorridors

NotethatwhiletheexamplesfromthePortlandandNOVAdocumentsaddressintersectionsanddocksrespectively,thoseguidelinesprovidetransferableinsightintopossiblesolutionsatothernodessuchasportsordistributioncenters.Moreover,theaforementionedexampleshelpdefinedesign-basedguidelinesincontextwithissuescoveredwithinthiswhitepaper.

Truckaccessissuesextendbeyondthedesignelementsofaspecificnode.Oftentimes,accessissuesoccurinroutesconnectingtothenodewithinmetropolitanareas.Todemonstrate,theChicagoMetropolitanAgencyforPlanning(CMAP)pointsout:

“Comparedtothe631milliontonsmovingbyrailintheregion,CMAPestimatesthatapproximately1.472billiontonsoffreightwasmovedbytruckin2007—morethan2.3timestherailvolume,andapproximately67percentoftheannualregionalfreighttonnage.Ofthistotal,approximately36percentofallfreightmovementswerethrough-traffic”(ChicagoMetropolitanPlanningAgency,2010).

Furthermore,a2013studyconductedbyDKSAssociatesin2013focusedontheoutboundmovementofgoodsfromWestsideC&EmanufacturerstoPortlandInternationalAirport’s(PDX)consolidationarea.ThestudyconcludedthatPDXisactuallyacriticalfreighthubalongthecompany’ssupplychain(seeFigure3)sincemostC&EfreightmovesoutofPDXviatruck.Thestudyalsofounditismostefficienttotruckgoodstoairportsthathavestrongerlinkstooverseasdestinations.Moreimportantly,thereliabilityofPortland’sroadwaysystem(includingruralroadswithknowndeficiencies)isessentialtoC&E’sgoodsmovement(DKSAssociates,2013).

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CMAP’sandDKS’scasesshowtheprominenceoftruckswithinanygivensupplychain.Therefore,inefficienciesintruckmovementhavewidespreadconsequencesfortheeconomicvitalityofbusinessesandthecommunitiestheyserve.While,severaloftheseinefficienciescanbetracedtotruckaccessnodes,theinterconnectednatureofanysupplychaincannotbeignored.Therefore,developingeffectiveguidelinesrequiresasystematicevaluationprocess.Specifically,answeringquestionssuchas:whatinefficienciesimpacttruckaccessthemost?Wherearetheyoccurring?Howshouldprojectsaddressingthoseissuesbeprioritizedrelativetootherprojects,andhowmuchwilltheimprovementprocesscost?Seattle’sFreightAccessPlanexemplifiesastructuredapproachthatfollowsthislineofquestioning(seeExhibit1):

(SeattleDOT,PortofSeattle,2015)

Figure3

Exhibit1

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Seattleevaluateseverypotentialprojectwithintheframeworkoffourpotentialgoals(safety,mobility,connectivity,andenvironmental).Everyprojectservestoimproveenvironmentalimpacts.Moreover,eachpotentialprojectcouldapplyanynumberofimprovementstrategies(seeExhibit2)thatservetoachieveanyoftheaforementionedgoals.Thismethodologydevelopsamatrixthatallowsthecityto“score”apoolofprospectiveprojectsandproduceaneffectiveprioritizationlist:

Exhibit2:ImprovementStrategies,ProjectGoals,andMatrix• Maintenanceandpreservation • ITSapplications

• Capitalinvestments • Geometricimprovements

• Intersectionoperations • Freightmanagement

• Wayfindingfortrucks

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ManyoftheprojectsincludedinSeattle’sFreightAccessPlandonotprovidedesignguidelinesfortruckaccessatspecificnodes.Someprojects,however,providearichcontextastohowconnectionsthroughoutmetropolitanareascanaffecttruckmovementtoaparticularnode.Forinstance,the15thAvenueWestSpotImprovementsprojectaddressesturnradiiissuesfortrucksthroughsmall-scalegeometricandintersectionoperationalimprovements(seeExhibit3).TheEastMarginalWaySouthFreightRoadwayRehabilitationprojectevaluatesthecriticallast-mileconnectorwhichprovidesaccesstoPortofSeattleterminals,railyards,andotherindustriallandusesintheGreaterDuwamishmanufacturingandindustrialcenter.Therouteisalsoavitalroutefortruckscarrying-over-sizedorflammablecargosotheprojectalsolooksatoptimizingsafetywithintheroute(seeExhibit4).TheprojectalsoseekstorebuildtheroadwaytoHeavyHaulroutestandards,upgradessignalhardware,andaddsCCTVcameraanddynamicmessagesignstoimproveoveralltrucktravelconditions.Finally,theLowerSpokaneStreetFreightOnlyLanesPilotProjectseekstodesign,implement,andevaluatefreight-onlylanesonthismajorcorridorthatservesnearly5,000trucksdailyinadditiontoconnectingthePortterminalsandprovidingotherlandusestotheregionalhighwaysystem(seeExhibit5).

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Exhibit3

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Theimportanceofconnectingboththebroaderscopeoftruckmovementswithinmetropolitanareasanddesignguidelineswithintruckaccessnodescannotbeunderstated.Californiafaces

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manyofthesameissuespresentedintheSeattlecasestudies:geometricconstraintsindesigningtruckroutes,massiveperiodsofcongestionandheavytruckvolumesinarterialroutesconnectingtomajormarineterminalssuchastheLosAngeles/LongBeachportcomplex;thepushforactivetransportationinitiatives;safetyconcerns;andoverallefficiencyinfreightmobilityandconnectivityarebutafewamongawealthofotherconcerns.Gainingperspectiveastohowmuchoureconomicvitalityreliesontruckingefficiencyshouldcreateurgencyinprovidingtheresourcesnecessaryforports,docks,airports,anddistributioncenterstooptimizetruckflowwithintheirrespectivefacilities.

Weigh-in-MotionTraditionally,staticweighingwasusedtoenforceweightlimits.However,staticweighingleadstofreightinefficienciesintermsofdelaysandstaffingdemands.Staffisneededtointercepttrucksintrafficflowtoperformtheweighingoperationandtoissuefinesorapplyotherpenaltiestoviolators.Giventhatthestaticweighingprocessmaytake10to30minutes(sometimesmore),theweighingareamaybecongested—causingdelays.Further,overloadtrucksmaybypassthecheckpoint,aviolationthatraisessafetyconcerns.

Toincreaseregulationandefficiency,technologiesweredevelopedtoaddresstheconcernslistedabove.Weigh-in-motion(WIM)technologieshavebeendevelopedandimplementedtoaddressinefficienciesrelatedtostaticweighing.“WIMtechnologiesallowtruckstobeweighedintrafficflowwithoutanydisruptiontooperations”(Jacob&Feypell,2010).

WIMsystemswerefirstintroducedintheUnitedStatesinthemid-1950s.Sincethen,technologicalinnovationshaveadvancedthetransportationsystemtoinclude:low-speedWIMtohigh-speedWIM,roadsensors,bendingandloadcellplates,stripsensors,multiplesensor,bridgeWIM,videoandautomaticvehicleidentification,amongotherapplications,toincreasefreightefficiencyandmitigateaccidentsandmaintenancecosts(Jacob&Feypell,2010).

Furthermore,countriesaroundtheworldareusingWIMforenforcement.Forinstance,Taiwanimplementshigh-speedWIMsystemswithlargetolerancestoenforcecontainerweightregulations.Canadaalsooperateshigh-qualityandhigh-speedWIMsystemstopromotefreightefficienciesasshownbelow:

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Duetotheensuringweighpadsimplementedwiththeroadsurfacetominimizevehicledynamics(orbounceagainstthepavement),thesehigh-speedWIMsystemsareveryaccurateinweighingtrucks.OncetheWIMsystemidentifiesapotentiallyoverloadedtruck,itdivertsthemtoaweighingarea.Iftheweighstationisnotstaffed,WIMonlyrecordsforstatisticalpurposes.TransportationsystemsintheNetherlands,France,Sweden,Japan,andothercountries,however,usevideocamerastoconstantlymonitoroverloadsandsendwarningstotransportcompanies.JacobandFeypell(2010)reportthatcountriesthatimplementedWIMtechnologiesin2007experiencedareductionofupto50percentoftheoverloadsobserved.Althougheconomiccrisisandimpactofroadfreighttransportvolumemayhavecontributedtothisreduction,thisshowsthatthispracticeisveryefficientinreducingoverloading(Jacob&Feypell,2010).

Intermsoffreightefficiency,implementingWIMsystemswillallowtruckstoprovethattheymeetweightregulationswithoutaddingtotheirtraveltime.Truckswillbeabletocontinueontheirjourneytodistributionnodeswithouthavingtostoporwaitinaqueuetobeweighed.WiththeWIMsystem,trucksareonlyrequiredtodriveoverapairofwiredmagneticloopsandaforcesensortobeweighedasshownbelow:

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(Bajwa,2013).

WIMtechnologiesareeffectiveinidentifyingtruckscarryingoverweightcontainers.“Trucksexceedingthelegalmasslimitsincreasetheriskoftrafficaccidentsanddamagetotheinfrastructure.Theyalsoresultinunfaircompetitionbetweentransportmodesandcompanies”(Jacob,Feypell,2010).Inadditiontobeingadangerontheroad,overweightcontainersprovedangerousinportterminalsandfortheworkershandlingthecontainers.

AccordingtotheWorldShippingCouncil(WSC)andtheInternationalChamberofShipping(ICS),overweightcontainershaveprovenchallengingforindustry,insurance,government,andthegeneralpublic.Afterajointindustry-governmentresearchprojectregardingcargosecuringthatincludescollapsingcontainerstacks,theMaritimeResearchInstituteoftheNetherlandsconcludedthatregulationsfor“compulsoryweighingofcontainerspriortovesselloading”areneeded(WSCandICS,2010).

Thisisbecausethereisnoreliabledatathatindicateshowmanycontainersareoverweight.Somecarriersreportthatitisnotunusualforthetotalcargoweightaboardashiptobethreetosevenpercentgreaterthanthedeclaredweight.Ina2005studybytheInstituteofTransportationStudiesattheUniversityofCalifornia,Berkeley,theaverageoverloadonfreighttruckswasmorethanfivepercentwhiletheworstoffendersaveragedmorethannineteenpercent(ITSInternational,2014).

Theproblemsresultingfromoverweightcontainersinclude:

• Incorrectvesselstowage;• Restowageofcontainersthatresultindelaysandcosts;• Collapsedcontainerstacks;• Containerslostoverboard;• Cargoliabilityclaims;• Chassisdamage;• Damagetoships;• Stabilityandstressrisksforshipsormodeofdelivery;• Riskofpersonalinjuryordeathbyworkers;

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• Impairmentofservicescheduleintegrity;• Supplychainservicedelays;• Exceedportdraftlimit;• Lostrevenueandearnings;• Liabilityforaccidentsandfines;• Timeandcostswithadditionaladministrativeefforts;• Impairmentofefficiency;• Greateruseoffuel;• Greatervesselairemissionsthatisharmfultotheenvironmentandresultinmorefines

(WSCandICS,2010);• Disproportionateamountofroaddamage(ITSInternational,2014);• Accidentriskandaccidentseverity;• Damagetoinfrastructure;and• Unfaircompetitionbetweentransportmodesandcompanies(Jacob&Feypell,2010).

Areasonforoverweightcontainersistheswitchfromcommoditypricingtocontainerpricing(JOCStaff,2016).Thismeansthatdespitehowfulloremptyacontaineris,companiesarechargedbythecontainer.

Inaddition,Cottrellfoundthatsometruckdriverswithoverweightvehiclestendtobypassstationaryweighstationstoavoidbeingcitedforweightviolationsormotorcarriersafetyviolations(1992).Forexample,inCalifornia,therearemorethan125weighstationsoperatedbytheCaliforniaHighwayPatrol.Themajorityoftheweighstationsareclassifiedasmini-sitesandareoftenunstaffed;however,whenstaffedandinoperation,theCaliforniaHighwayPatrolfoundthat“weightorloadingviolationsareobservedonaregularbasis”(ITSInternational,2014).The2005studybythePavementResearchCenterestimatesthatbetweenoneandtwopercentof78milliontrucksareoverloaded(2014).Itisdifficulttosafelyperformchecksonheavilytraffickedhighways,andwithhigh-trafficvolumeandnumberofheavyvehicles,theprobabilityofbeingweighedislow(Jacob&Feypell,2010).

Bypassingregulationslendstounfaircompetitionbetweentransportmodesandcompaniesthatdoobeythelawandthisimpactstheeconomy.InFrance,itwasestimatedthatatruckoperatingwitha20percentoverloadallyearround,generatesanadditional25,000euroseveryyear.Theillegalbenefitsofmovingoverloadedcontainersincludetaxevasionandadditionalprofits.Andwhiletheoperatorsbenefitfromsuchillegalpractices,theburdenfallsonthestatewhichmusttakeonunaccountedforinfrastructureandmaintenancefeesassociatedwithoverloadedcontainers(Jacob,&Feypell,2010)and(ITSInternational,2014).

Toaddresstheissueofoverweightcontainers,“newtechnologiesarebeingdevelopedformoreefficientoverloadscreeningandenforcement”(Jacob&Feypell,2010).TheFederalHighwayAdministration(FHWA)recommendsanincreaseinthenumberofweigh-in-motionsystemsonhighwaystomonitortruckloads.

ExpectedBenefitsTherearemanybenefitstoimplementingWIMsystemsasitdiscouragesoverloadedtrucksbyallowingstatestoenforcecontainerweightlimitationregulations.Forexample,itisshownthat

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anoverloadedtruckismorelikelytobeinvolvedinanaccidentandresultingreaterdamagetoothervehiclesorinfrastructureasdepictedbelow:

(Jacob&Feypell,2010).

Suchhazardsareduetotruckinstabilityduetothebrakingsystembeingunabletorespondtotheexcessload,lossofmaneuverability,ortireoverhead,andincreaseriskoffireandseverityoffireduetoanaccidentorlossofcontrol.WIMsystemscanmitigatechancesoftrafficaccidentsbydecreasingthenumberofoverloadedtrucks.Thiswillreducecostsfortransportcompaniesandstatesasitreducestraveltimeformanytransportcompanieswhichmaybecaughtintrafficaccidentsordelaystocleantheroadofthecargoandremovethevehicle,anddamagetoroadsandhighways(Jacob&Feypell,2010).

Inaddition,stateswillalsohavelessmaintenancecosts.TheCaliforniaDepartmentofTransportationcalculatedthat10percentaxleoverloadresultsin40percentincreaseinroaddamage.Thismeansthatoverloadingcontainershaveamajorimpactonthelifeofroad’sservice(ITSInternational,2014).

Furthermore,overloadingleadstosignificantdistortionsinfreighttransportcompetition.Thisistruebetweendifferenttransportmodes,e.g.,rail,waterborne,androad,andbetweenroadtransportcompaniesandoperatorsasoverloadingisaviolationoftaxationrules,suchasvehicleregistrationfees,axletaxes,andtollinfrastructurefees(Jacob&Feypell,2010).Byallowingsomecompaniestooverloadtheircontainers,bypassregulations,andskirtpenaltyfees,stateagenciescreateanunfairindustrymarketthatmayimpedecompetitionandencourageamonopolyinthetransportindustry.

ByimplementingWIMsystems,statesareaddressingtheproblemofoverloadedcontainers.Intermsoffreightefficiency,costsfromoverloadedcontainers,suchascollapsedcontainerstacks,cargoliabilityclaims,chassisdamage,riskofpersonalinjuryordeathbyworkers,impairmentofservicescheduleintegrity,supplychainservicedelays,lostrevenueandearnings,liabilityforaccidentsandfines,timeandcostsofadditionaladministrativeeffortsandfuelaredecreasedoreliminated.Furthermore,WIMsystemscansignificantlyreducethetime

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spentweighingcontainerstozeroasitisdonewhilethetruckistravellingtoitsnextdestination.

AsrecommendedbytheFederalHighwayAdministration,theWIMsystemalsohelpsportsdecreaseharmfulairemissionsfromidlingtrucksintheweighstationqueue(FHWA,2015).

ExpectedCostsAccordingtoBajwa(2013),currenttechnologiesforhighqualityWIMaretooexpensivetomaintainandforwidespreaddeployment.Aunitwithalifetimeof10yearscostsabout$497,000forinstallationand$6,240foroperationandmaintenance(Caltrans,2007).Thehighcostisduetothelargeandexpensiveloadsensorsandspecialpavementconstructionaroundthosesensors.

AnalternativeWIMsystemthatislessthanatenthofthecostisavibration-sensor-basedplatformforanalternativeintelligenttransportationsystemtechnology.However,thelifetimeforthisisonlytwoyears(Bajwa,2013).Therefore,thereisaneedforfurtherresearchanddevelopmentofinexpensivebutaccurateWIMsystemsthatmaybeinstalledonneworexistingroads.

RoleofthePublicSectorInresponsetothenegativeeffectsofoverloadedcontainers,theInternationalMaritimeOrganizationcreatedanewregulationundertheSafetyofLifeatSea(SOLAS)mandatingthatallcontainersmusthaveverifiedgrossmass(VGM)documentsiftheyaretobeloadedontoaship.Thedocumentmustalsobesignedeitherelectronicallyorinhardcopybytheshipperwiththeverifiedweight.ThisregulationcameaboutafterincorrectweightdocumentationcontributedtomaritimecasualtiesonthesouthernU.K.coastin2007andthepartialcapsizingofafeedershipintheSpanishPortofAlgecirasinJune,2015(JOCStaff,2015).

Althoughthisregulationfocusesoncontainersloadedonships,therearemanytransportcompaniesthatusemultimodaltransport.Therefore,thisregulationhelpspreventoverloadedcontainersontrucksandrailwaysaswell.

However,detailspertainingtothelawareunclear,e.g.,enforcement,marginoferrorallowed,anddirectionstohandlecontainersthatarriveataportwithoutthenecessarydocumentationortheincorrectVGM.Atthistime,whatisknownisthatthelawprovidestwooptionstomeetregulations:

1. “Weighthecontaineronatruckasitpassesoveraweighstation,subtractingtheweightofthetruck,chassisandfueltodeterminetheweightoftheloadedcontainer;or

2. Weighteachitemgoingintoacontainerandaddthesumofallthegoodsloadedtothetareweightofthecontainer”(JOCStaff,2015).

TheU.S.FederalMaritimeCommissionneedstocreateclearandwell-definedlawssotransportcompaniesandgovernmentagenciesarebetterabletomeetcontainerweightregulations.Elsewhere,JapanhasdraftedguidelinesandrevisedministryordinancesthatoutlinepenaltiesandvariationsbetweentheVGMandactualweightofacontainer,whichincludesadministrativepunishmentssuchasfinesforviolatorsofthenewinternationalrulesscheduledtobepromulgatedonApril1,2016(JOCStaff,2016).

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ImplementationChallengesInadditiontothehighcostsofhighqualityWIMsystems,implementationchallengesincludearangeofhighmaintenancecosts,e.g.,sensordurabilityunderheavyloads,roaddamage,andpavementmanagementasthesensormaybegreatlyaffectedbypavementtemperature(Bajwa,2013).Furthermore,thereareproblemsfortransportcompaniesandgovernmentagenciesinmeetingtheInternationalMaritimeOrganization’snewregulation.

AccordingtotheJournalofCommerce(2015),toomanytransportcompaniesandgovernmentagenciesareunpreparedfortheimplementationofthenewlaw,whichgoesintoeffectonJuly1,2016.Althoughweightinformationisrequiredforthesafeoperationofvessels,someshipperssaythatitisnotclearhowtomeettheoptionsprovidedbythemandate.

Inaddition,theUnitedStatesCoastGuarddeclaresthatitwillnotberesponsibleforpolicingthecontainerweightmandate,andthatenforcementwillgototheports.TheCoastGuardwillonlybeinvolvedifit“boardsanincomingvesselandfindsitdoesn’thaveVGMforeachbox”(JOCStaff,2016).Thismeansthatportsmustdeveloppoliciestoenforcethemandate,andtransportcompaniesandgovernmentagenciesmustanticipatehowportswillenforceitthiscomingJuly.

MeasuringSuccessIntermsoffreightefficiency,thesuccessofimplementingWIMsystemswidespreadmaybegaugedintermsoftime,vehiclesgasmileage,andhowairemissionsarereducedornegated.Furtherbenefits—e.g.reducedoverloadingcontainers,infrastructuremaintenancecosts,highwaytrafficaccidents,amongothermetrics—mayneedfurtherstudyandresearchafterthenewweightlimitationmandate.Also,thebenefitsofWIMsystemsdependonhowstrictthepublicsectorandportsregulateweightrestrictionsoncontainers.Thestrictertheyare,themorebeneficialandimportantWIMsystemsbecometofreightefficiency.

ConclusionAfterreviewingawiderangeoftechnologicalandplanningstrategiestopromoteoperationalmodernizationatdistributionnodes,theWhitePapersuggestsaseriesofnextstepstoinformthedevelopmentoftheCaliforniaSustainableFreightActionPlan.

• Installingmicrogridsatmarineterminalsandotherlargedistributionnodesmakespossiblenotonlytheobviousenvironmentalandenergyself-sufficiencybenefitsbutalsooperationalmodernization.Similarly,microgridscanalsosupporttheindustry’simplementationofintelligenttransportationsystems(ITS)intruckingtopromoteothertechnologicalinnovationsthatwouldbenefitfromthereliableandresilientpowerprovidedbymicrogrids.Suchtechnologiesincludeelectricaltollcollection,whichgreatlyspeedstrafficthroughtollbooths,rampmetering,andtrafficsignalcoordination.Giventheexpenseandpotentialdifficultiesrelatedtointegratingmicrogridsintolegacyinfrastructure,thisWhitePaperrecommendsthatfutureresearchonthistechnologyfocusonincentiveprogramstoexpediteitsimplementationintotraditionalenergymarkets.

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• Likemicrogrids,otherinnovativetechnologiesthatholdthepromiseofpromotingoperationalefficienciesattrucknodes,shouldalsobepursuedinanintegratedratherthansiloedmanner.Truckplatooningisrecognizedastechnologycapableofreducingcongestionontruckcorridors.However,usingnewITSapplicationstopromotereal-timeinformationsharingofdatagatheredviaplatooningapplicationstotrucknodessuchasportsanddistributioncenterscouldempowerfuturetransportationprofessionalstoanticipateandaccountforchallengeswhileprocessingfreightmoreefficiently.TruckplatooningmayplayanimportantroleinattainingthisefficiencygoalbecauseitinitiatestheprocessofincorporatingITSintothecab.

Forlargerquantitiesofup-to-date,descriptivedatatobeattainable,amosaicofsystemsdeployedsimultaneouslyisrequired.Inthisintegratedandmodernizedfuture,truckerscouldpresumablyplatoonthroughcorridorstonodes,wheretheywouldaccessweigh-in-motiontechnologytoeliminateatruckmove,accessavirtualcontaineryard,ortapintoanonlinesupplychainschedulingsystemtodeterminethecontainerstheywerepickinguplongbeforetheyarrivedatamarineterminal.

Intheend,itwillnotbeanyonetechnologythatwilldriveoperationalefficiencyattradenodesbutratheraconnectedsuiteofintegratedtechnologiesthatwillbeaccountedforearlyintheplanningphasesandfurtherenhancedbybestpracticesindesignedbasedguidelines.

ItisimportanttounderstandthatanyrecommendationsforoperationalmodernizationatdistributionnodesmustaccountforthethreeinterrelatedgoalsoutlinedinGov.Brown’sexecutiveorder,whichcallsfor:economiccompetitiveness,amovetowardzeroemissions,andoperationalefficiency.Ifallthreeofthesegoalsaretobeachieved,eachmustreinforcetheother.Forexample,ifzero-emissionelectrictrucksarerequiredinthefuture,itisimperativethatdistributionnodes—suchasmarineterminals,airports,bordercrossings,anddistributioncenters—areequippedwiththeelectricalchargingfacilitiestoensurethatthosezero-emissionvehiclesareabletorechargeinaseamlessmannerthatdoesnotcontributetoslowertruckturnsorextratruckmovestogainaccesstosuchfacilities.Saidanotherway,everystrategyintheCaliforniaSustainableFreightActionPlanmustengagethethree-prongedfocusesoneconomiccompetitiveness,environmentalsustainability,andoperationalefficiencyinanintegratedratherthansiloedmanner.

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PortofNewYork,&PortofNewJersey,(2014).ACollaborativeeffortforacollectivechange,21.Retrievedfrom:https://www.panynj.gov/port/pdf/pptf-final-report-june-2014.pdf.

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PLANNINGANDPOLICY


LeadAuthors:ThomasO’Brien,CaliforniaStateUniversityLongBeachTylerReeb,CaliforniaStateUniversityLongBeachWorkingGroupMembers:FranInman,MajesticRealty;AnnieNam,SouthernCaliforniaAssociationofGovernments;WillKempton,CaliforniaTransportationCommission;andKerryCartwright,PortofLosAngeles

AbouttheFreightEfficiencyStrategiesDevelopmentGroupInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.

AbouttheNationalCenterforSustainableTransportationTheNationalCenterforSustainableTransportationisaconsortiumofleadinguniversitiescommittedtoadvancinganenvironmentallysustainabletransportationsystemthroughcutting-edgeresearch,directpolicyengagement,andeducationofourfutureleaders.Consortiummembersinclude:UniversityofCalifornia,Davis;UniversityofCalifornia,Riverside;UniversityofSouthernCalifornia;CaliforniaStateUniversity,LongBeach;GeorgiaInstituteofTechnology;andUniversityofVermont.

DisclaimerThecontentofthewhitepapersproducedbythegrouprepresentsdiscussionsamongmanyindividualsrepresentingvariousfreightindustrystakeholders.Itmaynotreflectconsensusonthepartofalloftheparticipants,nordothesepapersnecessarilyrepresenttheofficialopinionorpolicyoftherepresentedorganizations,butratherarangeofthinkingthatmightbeusedtoinformandbuildconsensusforthedevelopmentoftheCaliforniaSustainableFreightActionPlan.Giventheperspectiveofthevariousfreightstakeholders,paperauthorshaveattemptedtoincludedissentingopinionsandareasofconcurrencewheretheymayexist.ThisdocumentisdisseminatedunderthesponsorshipoftheUnitedStatesDepartmentofTransportation’sUniversityTransportationCentersprogram,intheinterestofinformationexchange.TheU.S.GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.NordoesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.GovernmentandtheStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.

AcknowledgmentsThisstudywasfundedbyagrantfromtheNationalCenterforSustainableTransportation(NCST),supportedbyUSDOTandCaltransthroughtheUniversityTransportationCentersprogram.TheauthorswouldliketothanktheNCST,USDOT,andCaltransfortheirsupportofuniversity-basedresearchintransportation,andespeciallyforthefundingprovidedinsupportofthisproject.TheauthorsandworkinggroupmembersaregratefulfortheassistanceofthefollowingCaliforniaStateUniversity,LongBeachstudentswhoconductedresearchandprovidedinformationinthedevelopmentofthiswhitepaper:EstebanBarbosaandDanielMagno,CaliforniaStateUniversityLongBeach

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TABLEOFCONTENTSEXECUTIVESUMMARY..................................................................................................................iii

Introduction...................................................................................................................................1

Theme1:StrategicStatewideandInterregionalFreightPlanning................................................1

StatewideFreightPlanning........................................................................................................6

Theme2:TruckRoutesandIntegratedCorridorManagementAsExamplesOfStatewidePlanning.......................................................................................................................................10

GATruckLaneNeedsStudy.....................................................................................................12

ColoradoRoadX.......................................................................................................................16

IllinoisTruckRouteGrantProgram..............................................................................................16

IdentifyingandPrototypingIntegratedCorridorManagementStrategiesforApplicationinVirginia.....................................................................................................................................17

Conclusion....................................................................................................................................18

References...................................................................................................................................20

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PolicyandPlanning

EXECUTIVESUMMARYTheimportanceoffreighttransportationnetworksandothercriticalsupplychainconsiderationsarealltoooftenburiedintheplanningfunctionsoflocalgovernment.EffortssuchastheNationalFreightStrategicPlanareaddressingthistrendbutcoordinationbetweenstate,regional,andlocalleadersremainschallenging.Toestablishabroadperspectiveonwaysthatstatedepartmentsoftransportation(DOT)arefacilitatinginterregionalandstatewidefreightplanningefforts,thiswhitepaperbeginswithacomparativeanalysisofstateDOTorganizationalchartstoidentifywherethefreightplanningfunctionsarehoused.Thisanalysisfeaturesahistoricalcomparisonofhowcurrentorganizationalchartsdiffercomparedtoearlierpre-2009versionsofstateDOTstructures.

OrganizationalstructuresandtheinternalfreightprioritiesofstateDOTsarecritical,butsotooarethemodesofengagementusedtogaincomprehensivefeedbackfromeverystakeholderinthestatewidesupplychain.Thisoutreachcomponentincludesstrategicmessaging,publicinformationdissemination,publicevents,andin-personandonlinestakeholderengagement.Topromotestrategicstatewideandinterregionalplanninginitiatives,public-andprivate-sectorleadersmustworktogethertoaddresstrendsthathavehinderedsucheffortsfordecades.Suchtrendsincludedecentralizedplanningefforts,thederegulationofthetransportationsector,alackofcoordinationbetweenlocalgovernmentleaderstoplanforregionalandstatewidefreightcorridors,andfailuretoplanforinevitableconflictsbetweenfreightandcommutervehicles,transitoperationsaswellasbicyclistsandpedestrians.

Onthemostbasiclevel,remediesforalloftheseabovechallengeswillonlybedevelopedifciviccoalitionsofleadersfromthepublicsectorandtheprivatesectorfindwaystomakefreightefficiencyatoppriorityintheplanningandpolicystagesofprojects.Suchagentsofchangecorrectlyunderstandthatifoperationalandtechnologicalinnovationsaretoachievetheirfullestpotentials,planningandpolicyeffortsmustnotonlyaccountforhistoricalbestpracticesbutalsorespondtoprojectedincreasesinfreightvolumeandrelatedtechnologicalchallengesandopportunities.

TofacilitateaprocessthatdrivesstatewideandinterregionalfreightplanninginCalifornia,thiswhitepaperidentifiesrecommendationsrelatedtocriteriathatauthorsoftheCaliforniaSustainableFreightActionPlancanusetobenchmarktheadoptionofbestpractices.Thesebestpracticesservetoelevatefreightasastatewideprioritywithintheorganizationalstructureofstatedepartmentsoftransportation.Thiswhitepaperalsooffersrecommendationsrelatedtooutreachbestpracticesthatleveragetraditionalin-personmeetingsandtechnology-drivenmethods.

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IntroductionThisWhitePaperpresentsbestpracticesandrecommendationsonplanningandpolicyeffortsthatcouldincreasetheefficiencyofCalifornia’smultimodalfreightsystem.TheEfficiencyStrategiesDevelopmentGroup(EFDG)scopedocumentstates:

“ThisThinkTankwillbefocusedonopportunitiesforFederal,Stateandlocalpoliciesandtheprivatesectortoremovesystem-widebarrierstotheefficientmovementoffreight.”

Towardthatend,thiswhitepaperseekstoserveasasynthesizingdocumentthatprovidesanoverviewofhowcoordinatedplanningeffortscanmakethemovementoffreightmoreefficientinCalifornia.AnalysisofthoseplanningeffortswilldrawfrombestpracticesinotherU.S.statesandreferencetheland-usesectionsoftheNationalFreightStrategicPlanandoffercommentarythattranslatesthosenationalperspectivestostate,county,andmunicipaljurisdictions.Ateverystageofanalysis,thiswhitepaperwillrecognizepolicylimitationsandofferrecommendationsthatfactorintheappropriateroleofstategovernance.

Theme1: StrategicStatewideandInterregionalFreightPlanningAlthoughthemovementofgoodsthroughoutournation’scorridorsdeterminesthelivelihoodofpeopleineverycommunity—andcomprisesthelifebloodofthedomesticeconomy—freighthaslongbeenburiedintheplanningfunctionsoflocalgovernmentwithinsufficientattemptstocoordinateeffortsacrossjurisdictionalboundariesanddifferentlevelsofgovernment.ThistrendisgraduallychangingwitheffortsliketheNationalFreightStrategicPlan,butsignificantcoordinationbetweenstate,regional,andlocaldecision-makingbodiesremainsachallenge.EveryobstaclepreventingmeaningfulfreightefficiencyinnovationsonthenationallevelisexhibitedinCalifornia,astatewiththeseventhlargesteconomyintheworldandgoodsmovementchallengesmoreformidablethanthosefacedbymostnations.

Tobeginwith,“thereislittledesignguidancefordevelopinglandaroundfreightfacilitiesorcorridorsandland-useplannersinlocalgovernmentsaregenerallynottaughtaboutfreightaspartoftheirstandardeducationalcurriculum.SmallerMPOsandlocalgovernmentplanningdepartmentsmayhavestaffsofonlyafewpeopleandmayfinditdifficulttoobtainbudgetstospecializeinareassuchasfreight.LackofadedicatedsourceoffreightfundingcouldalsoreduceMPOdemandfordedicatedfreightstaff”(U.S.DepartmentofTransportation[USDOT],2015,p.47).Furthercomplicatingmattersistherealitythat“whileStateDOTsandMPOsplayapredominantroleinplanningpublicfreighttransportationinfrastructure,localgovernmentslargelycontrolland-usedecisionsthatarecriticaltoundertakingtransportationprojectsoralleviatingconflictingdevelopmentpatterns.Thedifficultyofcoordinatingamongtheseparticipantshasbeenfrequentlycitedasabarriertoimprovedfreightsystemperformance,mostrecentlybytheU.S.DOT’sNationalFreightAdvisoryCommittee(USDOT,2015,p.51).

ToestablishabroadperspectiveonwaysthatstateDOTsare(orarenot)attemptingtopromoteinterregionalandstatewidefreightplanningefforts,theresearchbeganwithacomparativeanalysisofstateDOTorganizationalchartstoidentifywherethefreightplanningfunctionsarehoused.Thisanalysisalsofeaturedahistoricalcomparisonofhowcurrentorganizationalchartsdiffercomparedtoearlierpre-2009versionsofstateDOTstructures.This

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reviewrevealedthatamajorityofstateDOTshavenotchangedtheirorganizationalstructuresinwaysthatdemonstratefreightplanningandpolicyisanelevatedpriority.

InCalifornia,forexample,theCaltransorganizationstructurehaschangedinrecentyears,butnotwithregardtofreight.TheofficeoffreightplanningishousedwithintheTransportationPlanningunitwhichisadivisionofPlanning&ModalPrograms.TheArizonaDOTaddedan“EnforcementandComplianceDivision,”butitsfreightplanisstillhousedwithinthestate’sMultimodalPlanningDivision.Similarly,otherstatesincludingMichigan,Minnesota,Georgia,andIllinoisDOTskepttheirfreightplanningelementshousedwithintraditionalplanningdivisions.

However,therewerealsosomenoteworthyexamplesofstateDOTsthatchangedtheirorganizationalstructureswithregardtofreightplanningfunctions.TheFloridaDOTsignaledanewfocusonfreightbychangingthenameofitsfreightplanningdivisionfrom“StatePublicTransportationandModal”to“StateFreight&Logistics”asshownhere:

Before After

TheNewJerseyDOTalsochangedits“CapitalProgramManagement”divisionin2009to“CapitalInvestmentPlanning&GrantAdministration”in2015.ThelatternowcontainsaMultimodalServicesubdivisionwithaFreightPlanning&Servicesdepartment.Thechangeisreflectedbelow.

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BEFORE

4

AFTER

TheNewYorkDOT2015organizationalchartalsoreflectsamoreprominentroleforfreightplanning.Asshownbelow,comparedto2009,theNewYorkDOTaddedanew“FreightRailBureau”withinitsOfficeofIntegratedModalServicesunderthePolicyandPlanningDivision.

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2009 2015

TheMaineDOTaddressesfreightthroughitsOfficeofFreightandBusinessServices,whichsignalsviaorganizationalstructureandinnamethattheworldsoffreight/supplychainlogisticsandbusinessdevelopmentareinterrelated(CambridgeSystematicsInc,2014).OtherstateDOTslikeTexasdidnotfeaturefreightasapriorityonorganizationalcharts,butotheraspectsoftheirplanningdocumentationdemonstratedabusiness-facingapproachtofreightplanningandpolicythatrepresentapproachesthatpublic-andprivate-sectorleadersmayconsiderastheydevelopnewfreightefficiencyinitiatives(TexasDepartmentofTransportation,2016).

OrganizationalstructuresandtheinternalfreightprioritiesofstateDOTsarecritical,butsotooarethemodesofengagementusedtogaincomprehensivefeedbackfromeverystakeholderinthestatewidesupplychain.Thisoutreachcomponentincludesstrategicmessaging,publicinformationdissemination,publicevents,andin-personandonlinestakeholderengagement.Topromotestrategicstatewideandinterregionalplanninginitiatives,public-andprivate-sectorleadersmustworktogethertoaddresstrendsthathavehinderedsucheffortsfordecades.Suchtrendsinclude:

• decentralizedplanningefforts,thederegulationofthetransportationsector;• lackofcoordinationbetweenlocalgovernmentleaderstoplanforregionaland

statewidefreightcorridors;and• failuretoplanforinevitableconflictsbetweenfreightandcommutervehicles,transit

operationsaswellasbicyclistsandpedestrians.

Onthemostbasiclevel,remediesforalloftheseabovechallengeswillonlybedevelopedifciviccoalitionsofleadersfromthepublicsectorandtheprivatesectorfindwaystomakefreightefficiencyatoppriorityintheplanningandpolicystagesofprojects.Suchagentsofchangecorrectlyunderstandthatifoperationalandtechnologicalinnovationsaretoachievetheirfullestpotentials,planningandpolicyeffortsmustnotonlyaccountforhistoricalbest

6

practicesbutalsorespondtoprojectedincreasesinfreightvolumeandrelatedtechnologicalchallengesandopportunities.

TofacilitateaprocessthatdrivesstatewideandinterregionalfreightplanninginCalifornia,thiswhitepaperwillidentifybestpracticesimplementedinrelevantstates.Particularattentionwillbedevotedtoinnovativeexamplesofstrategicplanningandmanagementoffreightcorridorsinotherstates.

StatewideFreightPlanningInordertoimplementcoordinatedstrategicfreightplanningeffortsthroughoutCalifornia,itiscriticalthatkeystakeholderswithinthesupply-chaincontinuumareengagedinanintegratedandongoingdiscussion/planningeffort.SuchengagementwillensurethatStateleadersaredevelopingfreightpolicythatisascomprehensiveandrelevantaspossible.ThewhitepaperresearchincludedareviewofawiderangeofstateDOTfreightplansandfoundthatpublicengagement(beyondthelegallyrequiredpubliccommentreviewprocess)wasafeatureineverystatefreightplan.However,themethodsusedandthedegreetowhichstateDOTsengagedthebusinesscommunitiesaffiliatedwiththestatesupplychainvaried.Giventheirpopulations,ports,andblendofurban,suburban,andruralrealitiessimilartoCalifornia,thereviewfocusedontheFloridaandTexasplansasusefulcomparisonsforthedevelopmentofanewfreightoptimizationinitiativeinthisstate.

TheFloridaDepartmentofTransportation’s2013FreightMobilityandTradePlan(FMTP)providesavaluableapproachtobroad-basedsupply-chainengagement.Fromtheoutset,theFMTPseeksto“developacollaborativeandtransparentprojectprioritizationprocesstomatchfundingforshort-termandlong-termrequirementstoensuremaximumreturnoninvestment(ROI)”(FloridaDepartmentofTransportation[FDOT],2013,p.2).

AclearstrengthoftheFloridaplanisitsstrategicengagementandmessagingeffortstotargetthestate’ssupply-chaincommunity.Thismodeofoutreachisworthhighlightingasabestpracticegiventhatfreightplanningrequiresmorecoordinationthanothermodesoftransportation.Thisfocusonsupply-chainoutreachwasevidentinFlorida’sFMTPanditsrelatedexecutivesummary,whichareveryclearlydesignedtobeaccessibleforpolicymakersandthegeneralpublic.“Wellover750membersfromFlorida’sprivatebusinessesandagencypartnerswereinvolvedintheprocess.Participationwasallencompassing,rangingfromlocalcommunityplannersandfreightusers,tobusinessleaders,andeventheHonorableRickScott,GovernoroftheStateofFlorida,”(FDOT,2013,p.13).AccordingtotheFMTP,outreacheffortsfocusedon:

• lackofworkforcetechnicalskillsinlogistics;• freightflowimbalances;• needforgreaterefficientintermodalinfrastructure;• expandingenergysources;and• needforbetterintegrationamongtransportation,trade,andenergy.

Thoseabovementionedfocuseswereaddressedin“fivestagesofdirectengagement,”whichweretitled:RegionalListeningForums;the1stFloridaFreightLeadershipForum;BusinessForumI:ScenarioPlanning;BusinessForumII:PlanDevelopment;andBusinessForumIII:Plan

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Review”(FDOT,2013,p.11).BeyondthestagesofengagementthatinformedthatcreationoftheFMTP,Floridaleadersemphasizedthatoutreachwouldcontinueafterthecompletionoftheinitialplan.TheFMTPauthorsdescribedtheneedfora“dynamicdocumentthatwillbeupdatedasneeded,andwilldemonstratethat,whenallstakeholderscommunicateandcollaborate,maximumeffortcanbeenergizedtopropelFloridaforwardasthenation’sfreightleader”(FDOT,2013,p.2).

TheongoingoutreachmethodsoutlinedintheFloridaFMTPareusefultouchstonesforfutureCaliforniaoutreach.“Followinganindustryparticipationapproach,ratherthanagovernment-onlyfocus,betterreflectstheneedsoffreightstakeholders,allowsthestatetobemoreproactiveandresponsive,andstreamlinesfreightinvestments.Thiscollaborativeprocessprovidesvenuesandopportunitiesforsignificantinteractionwiththosewhoutilize,provide,andplanforthefreighttransportationsystem”(FDOT,2013,p.12).

TheFloridaFMTPoffersavaluableperspectiveontheimportanceofstrategicmessagingandsupply-chainstakeholderengagement.Giventhatfreightplanningandpolicyismorecomplicatedandlessdiscussedthanothermodesoftransportationinstatesacrossthenation,communicationsandpublicawarenesscampaignsarecriticalelementsinanyattempttomakeinterregionalandstatewidefreightplanningeffortsatoppriority.Further,strategicandunifiedmessagingcampaignscanalsoserveasameanstoofferaconsistentfreightnarrativetolocaldecisionmakerswholargelydetermineland-usedecisionsthatimpact,forbetterorworse,thefateofinterregionalandstatewideplanningefforts.Localelectedofficialsoftenviewtheregulationsfromvariousstateagenciesasdisparateandunrelated.TheStateofCaliforniacouldgreatlyenhanceitsoutreachandcommunicationeffortswithlocaldecisionmakersifleadersintheCaliforniaStateTransportationAgency,theCaliforniaEnvironmentalProtectionAgency,theNaturalResourcesAgency,theCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation,theCaliforniaEnergyCommission,andtheGovernor'sOfficeofBusinessandEconomicDevelopmentfoundwaystoarticulateaconsistentandintegratedfreightnarrative.Saidanotherway,theJuly2016integratedactionplancalledforinGov.JerryBrown’sexecutiveorderwillbefarmoreeffectiveifitcallsuponleadersinagenciesthroughouttheStateofCaliforniatoreinforceaconsistentlystrategicmessageabouttheimportanceoffreighttotheState’swell-being.

Forthereasonsjuststated,Florida’sFMTPisavaluablepointofreferenceforanystateleaderlookingtodevelopacomprehensivestakeholderoutreachcampaignandconsistentmessagingstrategytopromotemoreeffectivestatewidefreightplanningefforts.ForCalifornia’spurposes,itisworthnotingthattheFloridaplandoesnotmaketheenvironmentalandcommunityimpactsoffreightmovementashighapriorityasiscalledforinGov.Brown’sexecutiveorder.However,incorporatingsuchenvironmentaltargetsintoanintegratedCaliforniafreightplanarefeasibleifthoseconsiderationsareidentifiedastopprioritiesupfrontintheprocess.

ItisalsoimportanttonotethatFloridaisnottheonlystatetoemploysuchacomprehensiveoutreachstrategytosupply-chainstakeholders.AlthoughmoreplanningdriventhantheFloridaplan,theTexasDepartmentofTransportation(TxDOT)TexasFreightMobilityPlanoffersanotherveryrecentandinstructiveexampleofanindustry-facingapproachtostakeholderengagement.Inbothcases,theFloridaandTexasplansdemonstratehowstrategicengagement

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andtargetedmessagingareeffectivetoolsforencouragingandmaintainingindustryinvolvementandpublicawareness,whichisessentialiffreightisgoingtobeelevatedtoatop-tierpriorityinstatewideplanningeffortsmovingforward.

TheTexasplanemphasizesthevalueofinstitutionalcoordinationwithcallsfor:

• increasedcollaborationwithneighboringstatestoensureaseamlesstransitionofthesystemacrossstatelines;

• collaborationandpartnershipsbetweenpublicandprivatesectors…neededtobetteralignplanningtimelines,andimproveprojectdevelopmentprocesses;and

• improvedcollaborationandcoordinationwithfederalandstateagencies,localgovernments,andMPOsisnecessarytoleverageinfrastructureimprovements,andincreasesupportforfreightissues(TexasDepartmentofTransportation[TxDOT],2016,p.4).

TxDOT’sproactiveengagementwith“stateandfederalagencies,MPOs,localgovernments,privatesectorentitiessuchasrailroadsandports,andotherorganizations”(TxDOT,2016,p.217)representsamodelpracticeforstateslookingtodeveloptheirownfreightoptimizationefforts.AswithmoststatesandinresponsetoMAP-21guidance,theTexasTransportationCommissionestablishedtheTexasFreightAdvisoryCommittee(TxFAC)inJanuary2013aspartofthedevelopmentofitsfreightplan.TxFACmembersincluded“private-sectorbusinessleaders,modalrepresentativesandelectedofficials,”(TxDOT,2016,p.197),whowereresponsiblefor,inpart:

• PromotingthelogisticsindustryandfreightmovementneedstoenhanceTexas’economicdevelopment.

• Educatingthepublicandelectedofficialsonhowfreightisdirectlytiedtotheeconomy(TxDOT,2016,p.197).

SimilartotheFloridafreightplan,theTexasplandrewinsightsfromaseriesof“listeningsessions”thatwere“designedtoengageacrosssectionofpublic-andprivate-sectorfreightstakeholdersinurban,suburbanandruralcommunitiesacrossTexaswiththegoalofincorporatinglocalissuesandconcernsintotheFreightPlan”(TxDOT,2016,p.198).TxDOTalsosolicitedinputfromcommercialvehicleoperatorsandmotorcarrierstoensurethatperspectivesfrom“front-lineoperators”wereincorporatedintothefreightplan.“InSeptember2013,1,195commercialvehicleoperatorinterviewswereconductedbyTxDOTrepresentativesat10locationsacrossTexas”(TxDOT,2016,p.199).ThoseinterviewsprovidedTxDOTwithinsightsonfreightflowlocationsthroughoutthestate.“Theinterviewsalsosupporteddataanalysisfrompreviouslyconductedresearchandmodelingasitrelatestotheoriginsanddestinationsoftruckfreight,equipment,cargotypeandareasofcongestion”(TxDOT,2016,p.199).Thisknowledgehelpedthestateanalyzeitssupplychainsbycommodity(e.g.automotive,cotton,beef)andtheplanpresentseachproduct’sfocusedsupplychainaccompaniedbyitsownprocessflow.

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TxDOTalsohostedarangeofeducationalandpublicoutreacheventstoengageandinformthepublicabouttheState’snewemphasisonimprovingitssupplychainefficiency.Asameansofengaging“private-sectorstrategicvisionaries,decision-makers,advocacygroupsandbusinessleadersinaforumconducivetomaximizingprivatecorporate-sectorinvolvement”(TXDOT,2016,p.200),TxDOTpartneredwithNorthAmericaStrategyforCompetitivenesstoholdasummitthatwouldhelpTxDOTidentify:

• anidealTexasmultimodalfreighttransportationsystemin2040;• needstoenhancethestate’sgrowthandeconomiccompetitiveness;and• otherstrategicinitiatives(suchaspolicies,projectsandfunding)topromote

improvementsinTexas’freighttransportationsystem(TXDOT,2016,p.200).

TxDOTalsodevelopedthewebsitewww.MoveTexasFreight.comasanothermethodofoutreachandengagementwithstakeholders.TxDOTdescribedthewebsiteasvaluableinpromotingtwo-waycommunicationviathecommentfeatureonthesite.Overall,TxDOTreportedthatthesiteprovedavaluabletool“asitenabledfast,convenientdistributionofinformationtoallstakeholdersandallowedforinputtobereceivedoutsideofanin-personmeeting”(TXDOT,2016,p.201).TxDOT’spracticalassessmentofthevalueofonlinestakeholderengagementshouldnotbeoverlooked.Indeed,onlineandnetwork-driveninformationtechnologyarepowerfultoolsstateleaderscanleveragetoconnectstrategicstakeholders,informthepublicabouttheimportanceofthesupplychain,andconveyaconsistentmessageaboutfreightoptimizationbestpracticesthatlocalleaderscanimplementwithintheirlocaljurisdictionstopromoteinterregionalandstatewideoperability.

AnotherinsightfulaspectoftheTexasfreightplanisitsinsightsdrawnfromnotonlyexternalstakeholdersbutalsointernalTxDOTandTexasDepartmentMotorVehiclesstaffers.Thisinternalreview“includedstafffromplanning,aviation,rail,trafficandsafety,maritime,tolloperations,design,construction,bridge,statelegislativeaffairs,federalaffairs,andinternationalrelations”(TXDOT,2016,p.201).Thestatedgoalsfortheinternalreviewwereto:

• openthelinesofcommunicationamongdifferentdivisionsandstaffmembers;• buildadvocacyforintegratingfreightissuesthroughoutTxDOT;• highlightprocessimprovementstoenhancetheintegrationoffreightwithinTxDOT;• improve,integrateandinstitutionalizefreightplanningwithinTxDOTandprovide

informationalsupporttotheTxFAC;and• developastructuretodescribehowfreightplanningactivitiesfitwithinexistingTxDOT

planning(TXDOT,2016,p.201).

OtherTxDOTpublicengagementeffortsincludedspeakingengagementswitharangeofeconomicdevelopment,transportation,andmetropolitanplanningorganizations.

Beyondbestpracticesinstakeholderoutreachandpublicoutreach,theFloridaandTexasplansdemonstratetheimportanceofoneoperativeword:education.Aspreviouslystated,freightandthevalueofthesupplychainhasbeenmisunderstoodandundervaluedonmanylevelsfordecades.Theonlywaytoelevatefreightasastatewidepriorityisthroughtheformationofpublic-andprivate-sectorpartnershipstoimplementpubliceducationinitiativesthatcommunicatetheimportanceoffreightincompellingwaysthatwilllendthemselvesto

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disseminationonsocialmedianetworksaswellasthroughacademicchannelsthatshapethedevelopmentofnewcurriculumacrosstheacademiccontinuum.Onlyafterlocalelectedofficialsandbusinessandcommunityleadersunderstandwaystosupportratherthanimpedesupplychainefficiencywillcomprehensivestatewideandinterregionalfreightplanningeffortsbepossible.

Afinalnoteaboutstakeholderengagement:dynamicnetworksofbusiness,government,academic,andcommunityleadersarebroughttogethertocreatefreightplansbutarenotoftenengagedinfollowupactivities.Giventheriseofenterpriseresourceplanningsoftwareplatforms,thesenetworksmaymoreeasilybemaintainedandcultivatedforfutureinitiativesseekingfurtherfreight/supplychaininnovations.

Theme2:TruckRoutesandIntegratedCorridorManagementAsExamplesOfStatewidePlanningEstablishinginterregionalandstatewidetruckroutesisakeystepfornotonlymakinggoodsmovementthroughoutCaliforniamoreefficient,butalsoinreducingnegativeimpactsonlocalcommunities.ThePlanningandPolicywhitepaperteamreviewedarangeofstatewideandinterregionaltruckrouteplanningeffortsandidentifiedsomecommonthemes.ThefirstobviouspointisthatleadersintransportationunderstandthatstatewidefreightefficiencywillnotbepossibleuntillocaljurisdictionsthroughoutCaliforniaareabletocoordinateplanningeffortsinsuchawaythataccommodatestruckroutesthatimproveefficiencyateverystageinthesupplychain—frompick-uptolast-miledelivery.

Asestablishedearlierinthispaper,statewideandpolicyeffortsrequireaconsistentoutreachnarrativepairedwithrobuststakeholderengagement.ThewhitepaperteamreviewedarangeofstatewideplanningdocumentsfromrelevantstateDOTstoidentifybestpracticestoinformCalifornia’sfreightefficiencyefforts.ThatprocessrevealedthatarangeofstatewideandinterregionaltruckrouteandintegratedcorridorplanningeffortshavebeenconductedinCaliforniaandotherstatesoverthelastdecade.However,large-scaleimplementationhasnotyetoccurred.

TheNationalFreightStrategicPlanoffersabasicrationaleforthevalueoftruckrouteplanning:

Aneffectivewayforlocalgovernmentstomitigateadversecommunityimpactsistoprecludethemfromoccurringinthefirstplace.Atthelocallevel,thiscanoftenbeaccomplishedthroughinformedland-usedecisionsandcommunicationwiththeaffectedcommunities.Iflocallanduses,includingresidentialdemographics,arewellunderstoodandmapped,placementoffreightandnon-freightfacilitiescanbedonewithallowancesforappropriatebufferzonesandfreightroutes.Thiseffortnecessarilyrequiresalookintothefuture.Planningtodayfortheinclusionoffuturefreightmovementanditsinteractionwithpopulationgrowthinurbanareascanleadtofarfeweradverseimpactstolocalresidentsandtheenvironment.Asnotedpreviously,however,localgovernmentdecisionstore-zonelandareoftenmadewithoutinformationaboutcurrentfreightactivityandneeds,muchlessfuturefreighttrafficflowsorsupplychainrequirements.GaininginformationofthistypewillinalmostallcasesrequirecoordinationwithMPO,State,andnational-levelforecasts(USDOT,2015,p.64).

InthecirculationelementofitsGeneralPlan,theCityofArroyoGrande,California,includedasimpledeclarativesentence:“TruckroutesshouldcoordinatewithCountyandadjoiningcities

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designatedroutesandavoidtraversingresidentialareas”(CityofArroyoGrande).Prosaicasitmayseem,inclusionofthissentencesignalsacommitmenttomitigatingadverseimpactsoftruckmovementsinArroyoGrandeandanawarenessthata“municipaltruckroutenetworkshouldbecoordinatedwithneighboringjurisdictionstoavoidareascontainingsensitivelanduses”(FederalHighwayAdministration[FHWA],2012,p.56).IfeverymunicipalGeneralPlaninCaliforniaincludedlanguagethathighlightedthevalueoftrucktripcoordinationinlocalplanningefforts,itwouldcreateanenvironmentinCaliforniathatpromotedstatewideandinterregionalplanningefforts.Thisnotionisreinforcedwiththeemphasisplacedonfreighteducationinthefirstportionofthiswhitepaperandisanimportantpointtoforegroundinthediscussionofanytruckrouteimplementation.

OneveryrecentattemptbyCaliforniapolicymakerstopromotethedevelopmentofastatewidetruckroutewaspresentedinCaliforniaAssemblyBill(AB)2432.IntroducedonFebruary19,2016,AB2432calledforCaltransto“prepareaninventoryofallstateandlocallydesignatedtruckroutesandservices”thatwouldbepublishedina“statewideTruckRouteNetwork”website.AB2432alsocalledforthepreparationof“aplanandscheduleforaddressingallinefficienciesandtrucktransportationnetworkgaps,includinganestimateoftheannualcostandthetotalcostofcarryingouttheplan.”Suchawebsiteandrelatedplantoaddressgapsandinefficienciesinthecurrent“patchworkoftruckroutesthroughoutthestate”couldserveasavaluabletooltoconvenelocaldecisionmakersandindustrystakeholderstoestablishregionalandstatewidetruckroutesthatwouldimprovetheefficiencyandsustainabilityofCalifornia’ssupplychain.

CaltranslikeotherstateDOTshasaccesstoarchivesofpastandcurrentlocaltruckroutesthroughoutthestate—aspresentedhere:http://www.dot.ca.gov/hq/traffops/trucks/truckmap/local-truck-routes.htm.Thechallengeishowtocoordinateandconnect.

Onewaytoengagelocalleaderstotakeonregionalandstatewideplanningeffortsistobeginwithoutreacheffortsthatdirectlyrelatetotransportationconcernsintheirownlocalareas.Tobetterunderstandtrafficcongestionanditseffectsontheefficiencyoffreighttransportation,theAmericanTransportationResearchInstitute(ATRI)andtheFederalHighwayAdministration(FHWA)developedanonlineform(seebelow)thatlocalstakeholdersfromacrossthecountrycanusetosubmitinformationaboutbottleneckswithintheirrespectiveregions.Theonlineformservesasavaluablemethodtosolicitinformationpertainingtotrafficcongestion.Anenhancedversionofthattoolcouldprovebeneficialinestablishingregionalplanningcoalitions.Forexample,iflocaldecisionmakersfromPasadenaandBurbank,CaliforniasubmittedinformationtothestateconcerningacertainbottleneckontheborderingGlendalearea,thoselocalleaderscouldbeengagedbystateleaderstosupportaregionalplanninginitiativetoaddressthatbottleneck.Thistoolcouldaidinpromotingtheimprovementofstateandlocalplanningefforts.

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AnothergoodexampleoflocalstakeholderengagementisreflectedintheWashingtonStateDepartmentofTransportation’sfreightadvisories,whichalertstakeholdersthroughoutthestateaboutimportantweatherandsafetywarningsthatimpactthemovementofgoods.Hereisanexample:

WSDOTALERT:SR14closedinKlickitatCountyduetotankertruckcrashandfuelspill

DATE/TIME:Feb.28,20162:45p.m.

DESCRIPTION:BothdirectionsofSR14areclosedduetoarolledovertankertruckandfuelspillnearRoosevelt,(milepost133.5).WestboundSR14isclosedatSR221inPaterson,andeastboundisclosedatUS97nearMaryhill.Itwilltakecrewsapproximately8hourstocleanupseveralthousandgallonsofspilledfuelandremovethevehicle.TheWashingtonStatePatrolandtheWashingtonStateDepartmentofTransportationareon-scene.Driversshouldavoidtheareaandaddextratimefortheirtrips.

LOCATION:SR14,Roosevelt,KlickitatCounty

START:Feb.28,201611:34a.m.

EstimatedEND:Feb.28,201611p.m.

BoththeFreightPerformanceMeasuresandtheWashingtonStateDOTfreightadvisoriesreflectaservice-drivenapproachtostakeholderengagement.Bydirectlyappealingtothelocalandoperationalneedsofstakeholders,statetransportationleadersareabletogatherdataaboutengagedlocalleadersandsupplychainstakeholders.Usingthatdata,stateleaderscanconductoutreacheffortswithlocallyinvestedpublic-andprivate-sectorleaderstoformstrategiccoalitionsandpromoteregionalandstatewideplanningefforts.

FollowingaresomeexamplesofmodelsfromotherstateswithlessonsforCalifornia.

GATruckLaneNeedsStudyIn2006,theGeorgiaDepartmentofTransportation(GDOT)conducteda“TruckLaneNeedsIdentificationStudy”todeterminethefeasibilityof“atruck-onlylanesysteminGeorgiaandtoidentifylocationswheretruckonlylanescanbefeasiblefromthestandpointsofengineering,

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operations,andeconomics”(GeorgiaDepartmentofTransportation[GDOT],2006,p.1)TheGDOTstudyderivedfindingsfromameetingwitharangeofstakeholdersfromFHWA,GDOT,FloridaDOT,NorfolkSouthern,theGAChamberofCommerce,GAPortAuthorities,GAPowerCompany,GAStateRoadandTollwayAuthority,GAMotorTruckingAssociation,amongotherstakeholders.DuringthatmeetingGDOTstaffersfacilitatedabreakoutsessionwhereonepublic-sectorandoneprivate-sectorgroupeachrespondedtothesamesetofquestionsregardingtheimplementationofatruck-onlylanesysteminGeorgia.ThequestionsareusefulpointsofreferenceforCalifornialeadersseekingtoconductstakeholderoutreachtosupportthedevelopmentofinterregionalandstatewidetruckroutes.TheGDOTbreakoutsessionalignedwiththebasicoutreachapproachnotedintheFloridaandTexasDOTplanswithbalancedoutreachtobothpublic-andprivatesectorleaders.Thevalueofthatbalanceisillustratedintheresponsetothisquestion:

Besidestrafficcongestion,whatarethemostsignificantissuesimpactingtrucktravelinGeorgia?

Public-sectorrepresentativesgavethefollowingresponses:

• Reliability• Enforcement• Safety• AirQuality• ComfortLevel• Reducescapacity• LandUse

Private-sectorrepresentativesgavesomeresponsesthatoverlappedwiththepublic-sectorgroup,buttheyalsoraisedotherissues,including:

• Reliability/unreliabilityoftraveltimes• Interactionsbetweencarsandtrucks• Publicawarenessoftruckissues(i.e.howlongittakestostopatruck,etc.)• Safety–mixedtravelstreams• Fuelcosts• Roleof“justintime”deliverysystems• Congestion–impactsonshippers’businessdecisions• Trucksdesirecontinuousthroughmovementwithaslittledelayaspossible• Understandingthetruckmovements(localvs.through/longhaul)• Permittedmoves(i.e.oversizeloads)(GDOT,2006,p.3).

Thepublic-andprivate-sectorgroupsalsoprovidedinstructiveresponsestothisquestion:

WhatfactorsshouldbeconsideredindeterminingwhethertruckonlylanesshouldbebuiltinGeorgia?

Public-sectorrepresentativeresponses:

• Whatkind?Segments?Systems?

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• Accessandconfiguration• Financing• Truckvolumes• Congestion• Truckgenerators• Pricing• Demandforecasts• Vehicleclassifications• Time-of-daytraffic/truckvolumes• Safety• Costs/benefits• Policies• Education• Freightmodechoice• Economicsoffreight• Intermodalconnectivity• Needsofshippers/receivers• Hoursofserviceregulation• Needsofconsumers• Roadwaydesign• Infrastructuremaintenance• Urbancircumferentials

Public-sectorrepresentativeresponses:

• Customerswithnoinventory(theyrelyontimelytruckdeliveries)• StrategicIndustryTaskForce• Logisticsarecritical• Incentivestoattractbusiness• Infrastructurecosts(related/leadingtoloadlimitsthatrestrictroutechoice)• Requirementforlargetruckpools–impactinglocallanduses• Largerlocalmarkets(withinlargeurbanareaslikeAtlanta)• Populationgrowth• Cost/whopays?• Recognizetruckissuesinprojectdesignphase–designconsiderationsthatare• appropriatefortrucks• Expresslanesforthroughtrucks• Dispatchingcapacity–assigningtraffictolanes(likerailroadscontroltheiroperations)• Incidentmanagement• Separatecarsandtrucks• Safety• Trafficvolumes• Congestion

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• Needforbetteraccessinurbanareas• RuralareasasTOLcandidateareas(duetoright-of-wayavailabilityandeasy

maintenance)(GDOT,2006,p.3-4)

ThequestionsusedbytheGeorgiaDOTtogainbroad-basedstakeholderperspectiveontheimplementationoftruck-onlylanesystemsserveaspracticaltemplatesofinquiryforCalifornia-basedengagementwithpublic-andprivate-sectorsupply-chainstakeholders.OtherGeorgiaDOTquestionsworthreviewingarelistedbelow.Whilereviewingthesequestions,itisvaluabletoconsiderhowthesequestionscouldbeadaptedtorelatemoredirectlytotheimplementationofinterregionalandstatewidetruckroutesinCalifornia.

Whoshouldbeinvolvedindevelopingpublicpoliciesontruckonlylanes?

• California:Whatpublic-andprivate-sectorstakeholdersshouldbeinvolvedindevelopinginterregionalandstatewidetruckroutesinCalifornia?

HowfamiliarareyouwiththeconceptofTruckOnlyLanes?

• California:Howfamiliarareyouwiththeconceptsofinterregionalandstatewidetruckroutes?

Besidestrafficcongestion,whatdoyouseeasthethreegreatesttransportationissuesorconcernsregardingTruckOnlyLanes?

• California:Besidestrafficcongestion,whatdoyouseeasthethreegreatesttransportationissuesorconcernsregardinginterregionalandstatewidetruckroutes?

WhattransportationcorridorsandareasoftheStateareofmostinteresttoyouintermsoftruckandfreight-relatedtraffic?

• California:noadaptationnecessary.

DoyoubelieveTruckOnlyLanesareneededinGeorgia?Where?Why?

• California:DoyoubelieveinterregionalandstatewidetruckroutesareneededinCA?Where?Why?

Hasyourbusinessbeenimpactedbytruck-relatedaccidents?

• California:noadaptationnecessary.

Otherdifficultyintransportinggoodsand/orservicesonGeorgia’sinterstatehighwaysandotherimportantroutes?

• California:Otherdifficultyintransportinggoodsand/orservicesonCalifornia’sinterstatehighwaysandotherimportantroutes?

Overall,howefficientlydoyouthinkGeorgia’sfreightmobilityis?

• California:Overall,howefficientlydoyouthinkCalifornia’sfreightmobilityis?

WhatadvicedoyouhavefortheprojectteamforexploringthefeasibilityoftruckonlylanesinGeorgia?

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• California:WhatadvicedoyouhavefortheprojectteamforexploringthefeasibilityofinterregionalandstatewidetruckroutesinCalifornia?

Itisaself-evidentstatement,theinsightissometimeslost:Comprehensiveandinclusivestakeholderengagementleadstocomprehensiveandinclusivepolicyformationandrelatedplanningdevelopment.ThatsentimentwasreinforcedbytheexitcommentsoftheGDOTbreakoutsession.Whenaskedforfeedbackandwaystoimprovestakeholderengagement,respondentsstatedthatGDOTmustfindnewways“toinvolvemoreindustryrepresentativesatthestakeholdermeetings,especiallynationalshippersandcarriers”(GDOT,2006,p.8).

ColoradoRoadXTheColoradoDOT’sRoadXinitiativestrivestoguidetheintegrationoftechnologyintoColorado’stransportationsystemwithapositiveimpactoncorridor-widetrucktraffic.Coloradoacknowledgesthepotentialoftechnologyasameanstoachievesocialprosperity.Assuch,CDOTisinvesting$20millionintobothstartingfundsforRoadXandcongestionandsafetyoptimizationtechnologies.Cooperationandcollaborationarebothcriticalwithprojectsofthisscope.CDOTrecognizesthisastheybeginconveningtheRoadXInnoVisersCouncilcomprisedoflocalandinternationalleaders,advisors,andinnovatorsfromboththepublicandprivatesectors(ColoradoDepartmentofTransportation[CDOT],2014).

ProjectsunderRoadXinclude:

InteroperableDataPlatform:Deployaweb-based,opensourcesafety,trafficandtransportationsystemdataplatformcapableofcommunicatingwithadiversecollectionofdrivers,cellular/mobileapplications,andconnectedandautonomousvehiclestodelivercriticalreal-time,actionableinformationandsafetyvoicealertssuchasmulti-vehiclepileups,rockfalls,avalancheslides,white-out/fog-outlowvisibility,wrong-waydrivers,runawaytrucks,stoppedvehicles,incidentadvisory,icyroads,emergencyvehicles,curvespeedwarnings,intersectionhazards,workzonewarnings,sunglarewarnings.

I-70ConnectedVehiclePilotDeployment:MaximizesafetyandmobilityontheI-70mountainouscorridorthroughprobedatacollection,vehicle-to-infrastructure(V2I)communication,andrelateddecisionsupportanalysistoenablerealtimetrafficmanagementandtravelerinformationandsafetyapplications.

TechnologyPlanningProcess:DevelopNEPA/environmentalevaluationprocessthateffectivelyincludestechnologyandoperationinnovationsasasignificantpartofthealternativesanalysis.Forprojectsalreadypasttheenvironmentalevaluationprocess,developa“RoadX”clearanceprocesstoensureallalternativesareincorporatedasaprojectmovesintodesign(CDOT,2014).

IllinoisTruckRouteGrantProgramTheIllinoisTruckAccessRouteProgram(TARP)isintendedtohelplocalgovernmentsupgraderoadstoaccommodate80,000poundtruckloads.Additionally,theroutesareintendedtoprovideaccesstopointsforbothloadingandunloadingandtofacilitiesforfood,fueltruckrepairanddriverrest.Anyprojectsundertheprogrammustconnecttoatruckrouteandendatanothertruckrouteortruckgenerator.

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TheTARPannualappropriationis$7.0million.Theprogramwillprovide$45,000perlanemileand$22,000pereligibleintersectionforselectedprojects.Thestateparticipationcannotexceed50%ofthetotalconstructioncostsor$900,000(whicheverisless).Additionally,iftheprojectisdoneinconjunctionwithastateEconomicDevelopmentProject(EDP),theprojectwillbecappedat$150,000.EachfalltheIllinoisDOTsolicitslocalprojectsthatcanbeconstructedduringtheupcomingfiscalyear(TruckAccessRouteProgram,IllinoisDepartmentofTransportation,2015)

IdentifyingandPrototypingIntegratedCorridorManagementStrategiesforApplicationinVirginiaTheVirginiaCenterforTransportationInnovationandResearchsponsoredastudythatsoughttoidentifyandanalyzecurrentissueswiththestate’scorridormanagementpracticesasameanstoaddressissuesrelatingtohighwaycongestionanditsnegativeimpactsonurbantransportation.Severalsubsystemscompriseagreatercorridormanagementsystemsuchasarterialsignalcontrolsystemsandtransitsystems.Thestudyattributesinstitutionalbarriersandtraditionalpracticesascausesforthesubsystemsoperatinginisolationfromoneanother.Therefore,thegoalwouldbetodevelopasystemthatcoordinatesandforcessubsystemstoworkcollaboratively(otherwiseknownasIntegratedCorridorManagement(Asare&Smith,2014).

Thestudywasbrokenupintoeightmaintasks:1.LiteraturereviewonICM2.SelectionofsitetotestprototypeICMstrategies3.IdentificationofbestpracticesandpotentialICMstrategies4.DevelopmentofICMevaluationmethodology5.Developmentandvalidationofsimulationnetwork6.EvaluationofproposedICMstrategies7.Analysisofresults8.Developmentofrecommendations(CenterforTransportation).

ThreecriticalsuccessfactorswereidentifiedthatdemonstratethepotentialforICMapplicationthrougheightofVirginia’s“pioneer”states(sponsoredbytheUSDOTICMInitiative):

1. ArobustIntelligentTransportationSystems(ITS)infrastructure.2. TheneedforStakeholderpartnershipswhichworktowardthedevelopmentof

institutionalframeworkswithinwhichtheICMwillbeimplementedandoperated.3. Theneedtoadoptstandardandprotocolsthroughwhichinformationwillbe

disseminated.

AnexperimentwasalsoconductedtofurtherexploretheeffectivenessofICM.TheexperimentinvolvedprototypingseveralICMstrategieswithinasimulatedenvironmentusingasegmentoftheI-95/I-395corridorasatestbed.Resultsofsimulationrevealed:

- Corridorpersonflowperhourcouldbepotentiallyincreasedby14%undernon-incidenttrafficconditions,comparedto38%duringincidentconditions.

- TheI-95generalpurposelanescouldexperience(intermsofaveragetraveltime)areductionof48%and58%undernon-incidentandincidenttrafficconditionsrespectively.

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- Averagetraveltimesontheprimaryarterial(U.S.1N)improvedby29%underbothnon-incidentandincidentconditions.

- Fuelusagewasreducedby34%and33%duringnon-incidentandincidentconditionsrespectively.

- Benefitcostrationsof4:1and6:1wereobtainedfornon-incidentandincidentconditionsrespectively(Asare&Smith,2014).

Overall,thestudyconcludedthatthemostpromisingICMstrategiesVirginiacouldimplementwere:variablespeedlimits,increasedtransitandparkingcapacities,HOVbypasslanes,andHOV/HOTlanes.

ConclusionAfterreviewingarangeofstateDOTorganizationalchartsandrelatedoutreachmethodsusedtoengagestrategicstakeholdergroups,thePlanningandPolicyteamhasestablishedrecommendationstoinformthedevelopmentoftheCaliforniaSustainableFreightActionPlan.

ThefirstseriesofrecommendationsrelatestocriteriathatauthorsoftheCaliforniaSustainableFreightActionPlancanusetobenchmarktheadoptionofbestpracticesrelatedtoelevatingfreightasastatewideprioritywithintheorganizationalstructureofstateDOTs.Towardthatend,thefollowingbestpracticesshouldbeconsidered:

1. ThefreightfunctionswithinastateDOTshouldbeprominentlyfeaturedonorganizationalchartssothatmembersofthepubliccaneasilyidentifywhichdivisioncarriesoutthosefunctions.Thatorganizationalchartshouldalsostatethenameofthedirectorforthefreightdivision.Presentingfreightasitsowntransportationdivisionwithaclearleadershipstructuresendsaclearmessagethatgoodsmovementisastatewidepriority.Signalingthatfreightfunctionsareanorganizationalprioritywillalsohelpwithrelatedpublicoutreachaswellasstakeholderengagementwithleadersinthestateandnationalsupplychain.

2. Giventhatfreightfunctionsrequireconstantengagementwithmembersfromthegoodsmovementindustry,stateDOTleadershipshouldalsoconsiderhousingfreightfunctionswithinabusinessservicesdivisionoftheorganization.Alternatively,DOTleadershipcanhousefreightfunctionswithinmoretraditionaltransportationorganizationalstructuresbutcreateabusinessservicessubdivision.StateDOTscanalsobuildbusiness-facingapproachesintootherrelatedplanningdocumentationtobetterengageindustryleaders.

Thesecondseriesofrecommendationsrelatestooutreachbestpractices.Withingoodsmovementandlogisticscircles,itisunderstoodthatfreightplanningandpolicyismorecomplicatedandlessdiscussedthanothermodesoftransportation.However,thisnotionislargelynotunderstoodbylocaldecisionmakersandmembersofthegeneralpublic.Thisiswhycommunicationsandpublicawarenesscampaignsarecriticalelementsinanyattempttomakeinterregionalandstatewidefreightplanningeffortsatoppriority.Itisessentialthatpublic-andprivate-sectorleaderscommunicatetheinvaluablerolethatthegoodsmovementindustryplaysinthedomesticeconomyand,moreimportantly,ingettingessentialfoodandgoodstocommunitiesthroughoutthenation.Failuretocommunicatethismessagemakesitmorelikely

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thatlocalelectedofficialsandtheconstituentstheyservewilltakeforgrantedthevalueofthelocal,state,andnationalsupplychainwhilecomplainingaboutnegativeeffectsrelatedtowhatisultimatelyafailuretomakefreightplanningandpolicyapriority.

ThisWhitePaperrecommendsthefollowingoutreachbestpractices:

1. Developandconductstrategicandunifiedmessagingcampaignstoofferaconsistentfreightnarrativetolocaldecisionmakerswholargelydetermineland-usedecisionsthatdetermineinterregionalandstatewideplanningefforts.

2. Engagelocalleaderstotakeonregionalandstatewideplanningeffortsbyusingoutreachmethodsthatdirectlyrelatetotransportationconcernsintheirownlocalareas.Onesimpleandcost-effectivewaytoconductsuchoutreachistouseanonlineformthatlocaldecisionmakerscanusetoreportbottlenecksintheirrespectiveregionofinfluence.Localdecisionmakerswhosubmitinformationtothestateconcerningbottleneckscouldthenbeengagedbystateleaderstosupportaregionalplanninginitiativetomitigatecongestionrelatedtohowthatbottleneckconnectstothelargerstatewidetransportationnetwork.Usingthatdata,stateleaderscanconductoutreacheffortswithlocallyinvestedpublic-andprivate-sectorleaderstoformstrategiccoalitionsandpromoteregionalandstatewideplanningefforts.DatagatheredfromthisonlineformofengagementcouldalsobeusedtodevelopregionalandstatewideplanstoaddressgapsandinefficienciesintheStatefreighttransportationnetwork.

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ReferencesAsare,S.K.,&Smith,B.L.(2014).IdentifyingandPrototypingIntegratedCorridorManagement

(ICM)StrategiesforApplicationinVirginia.Charlottesville,VA:VirginiaCenterforTransportationInnovationandResearch.

CaliforniaLegislature2015-2016RegularSession.(2016,February19).AB-2432Designatedstateandlocaltruckroutesandservices.RetrievedfromCaliforniaLegislativeInformation:http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB2432

CambridgeSystematicsInc.(2014).MaineIntegratedFreightStrategyFinalReport.MaineDepartmentofTransportation.

CenterforTransportation.(n.d.).RetrievedfromUniversityofVirginia:http://www.cts.virginia.edu/identifying-and-prototyping-integrated-corridor-management-icm-strategies-for-application-in-virginia/

CityofArroyoGrande.(n.d.).CirculationElement.RetrievedfromDocumentCenter:http://www.arroyogrande.org/DocumentCenter/View/472

ColoradoDepartmentofTransportation.(2014).Colorado'sVision:RoadX-WhereTransportationandTechnolologyIntersect.

FederalHighwayAdministration.(2012).FHWAFreightandLandUseHandbook.U.S.DepartmentofTransportation.

FloridaDepartmentofTransportation.(2013).FreightMobilityandTradePlan.

GeorgiaDepartmentofTransportation.(2006).SummaryofStatewideAdvisoryCommitteeMeeting.Atlanta.

IllinoisDepartmentofTransportation.(2015).EconomicDevelopmentProgram.

TexasDepartmentofTransportation.(2016).TexasFreightMobilityPlan:ExecutiveSummary.

TruckAccessRouteProgram(TARP).(n.d.).RetrievedfromIllinoisDepartmentofTransportation:http://www.idot.illinois.gov/transportation-system/local-transportation-partners/county-engineers-and-local-public-agencies/funding-opportunities/truck-access-route-program

U.S.DepartmentofTransportation.(2015).NationalFreightStrategicPlan.

INFORMATIONTECHNOLOGY


LeadAuthor:GenevieveGuiliano,UniversityofSouthernCalifornia

WorkingGroupMembers:MatthewBarth,UniversityofCalifornia,Riverside;KerryCartwright,PortofLosAngeles;ChristinaCasgar,SanDiegoAssociationofGovernments;MikeChristensen,PortofLongBeach;JamesJack,CoalitionforResponsibleTransportation;DavidLibatique,PortofLosAngeles;andChrisShimoda,CaliforniaTruckingAssociation

AbouttheFreightEfficiencyStrategiesDevelopmentGroupInJuly2015,GovernorJerryBrownissuedExecutiveOrderB-32-15,directingseveralstateagenciestoworktogetherindevelopinganintegratedactionplanthatwill“establishcleartargetstoimprovefreightefficiency,transitiontozero-emissiontechnologies,andincreasecompetitivenessofCalifornia’sfreightsystem”andthattheplanshould“identifystatepolicies,programs,andinvestmentstoachievethesetargets”.Inresponse,aninteragencygroupwasformedtooverseethedevelopmentoftheCaliforniaSustainableFreightActionPlan(CSFAP).MembersoftheinteragencygroupincludetheCaliforniaAirResourcesBoard,theCaliforniaDepartmentofTransportation(Caltrans),theCaliforniaEnergyCommission(CEC),andtheGovernor'sOfficeofBusinessandEconomicDevelopment(GO-Biz).Aspartofdevelopingtheplan,theinteragencygrouphassolicitedfeedbackfromabroadrangeofstakeholdersthroughavarietyofengagementactivitiesandoutreachefforts.AcomponentofthisengagementwasthedevelopmentoftheFreightEfficiencyStrategiesDevelopmentGroup(FESDG)madeupoffreightexpertsfromacademia,industry,andgovernment.Thepurposeandmaintaskofthisgroupwastoproduceaseriesofwhitepapersthatidentifypromisingstrategiesforincreasingtheefficiencyofthefreightsystem.Aseriesofsixpapersweredevelopedoverthecourseofsixmonths.Eachpaperfocusesonaspecificthemeforincreasingfreightefficiencywithinthelargerfreightsystem.AbouttheNationalCenterforSustainableTransportationTheNationalCenterforSustainableTransportationisaconsortiumofleadinguniversitiescommittedtoadvancinganenvironmentallysustainabletransportationsystemthroughcutting-edgeresearch,directpolicyengagement,andeducationofourfutureleaders.Consortiummembersinclude:UniversityofCalifornia,Davis;UniversityofCalifornia,Riverside;UniversityofSouthernCalifornia;CaliforniaStateUniversity,LongBeach;GeorgiaInstituteofTechnology;andUniversityofVermont.Moreinformationcanbefoundat:ncst.ucdavis.edu.DisclaimerThecontentsofthisreportreflecttheviewsoftheauthors,whoareresponsibleforthefactsandtheaccuracyoftheinformationpresentedherein.ThisdocumentisdisseminatedunderthesponsorshipoftheUnitedStatesDepartmentofTransportation’sUniversityTransportationCentersprogram,intheinterestofinformationexchange.TheU.S.GovernmentandtheStateofCaliforniaassumesnoliabilityforthecontentsorusethereof.NordoesthecontentnecessarilyreflecttheofficialviewsorpoliciesoftheU.S.GovernmentandtheStateofCalifornia.Thisreportdoesnotconstituteastandard,specification,orregulation.AcknowledgmentsThisstudywasfundedbyagrantfromtheNationalCenterforSustainableTransportation(NCST),supportedbyUSDOTandCaltransthroughtheUniversityTransportationCentersprogram.TheauthorswouldliketothanktheNCST,USDOT,andCaltransfortheirsupportofuniversity-basedresearchintransportation,andespeciallyforthefundingprovidedinsupportofthisproject.TheITGroupisgratefulfortheassistanceofthefollowingUSCstudentswho

conductedresearchandprovidedinformationinthedevelopmentofthisWhitePaper:LingFeng(MasterofPlanning),NathanHutson(PhDplanning),SanggyunKang(PhDplanning),ArnoldValdez(MasterofPlanning),QuanYuan(PhDplanning),andWenhaoZheng(MasterofPlanning).MattBarthwasassistedbyKanokBoriboonsomsin(AssociateResearchEngineer,UCRiverside).ChristinaCasgarandScottStrelecki(SANDAG)providedinformationontheBorderRegionITSStrategy.

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TABLEOFCONTENTS

ABSTRACT......................................................................................................................................iv

INTRODUCTION..............................................................................................................................1Theme1:InformationProblemsintheGoodsMovementSupplyChain................................................1Theme2:InformationProblemsinStatewideTrucking..........................................................................3

ACCELERATEANDEXPANDFRATISPROGRAM...............................................................................4StatementoftheProblem.......................................................................................................................4Description...............................................................................................................................................4ExpectedBenefits....................................................................................................................................7ExpectedCosts.........................................................................................................................................8RoleofthePublicSector..........................................................................................................................9ImplementationChallenges.....................................................................................................................9MeasuringSuccess.................................................................................................................................10

SYSTEM-WIDEAPPOINTMENTSATMAJORSEAPORTS................................................................13StatementoftheProblem.....................................................................................................................13Description.............................................................................................................................................13ExpectedBenefits..................................................................................................................................15ExpectedCosts.......................................................................................................................................18RoleofthePublicSector........................................................................................................................18ImplementationChallenges...................................................................................................................19Measuringsuccess.................................................................................................................................20

LOADTRACKINGSYSTEM.............................................................................................................21StatementoftheProblem.....................................................................................................................21DescriptionoftheStrategy....................................................................................................................22ExpectedBenefits..................................................................................................................................22ExpectedCosts.......................................................................................................................................23RoleofthePublicSector........................................................................................................................24ImplementationChallenges...................................................................................................................24MeasuringSuccess.................................................................................................................................26

STATEWIDESMARTPARKING.......................................................................................................26StatementoftheProblem.....................................................................................................................26Description.............................................................................................................................................27ExpectedBenefits..................................................................................................................................29ExpectedCosts.......................................................................................................................................30RoleofthePublicSector........................................................................................................................30ImplementationChallenges...................................................................................................................30MeasuringSuccess.................................................................................................................................31

PUSHFREIGHTTRAFFICINFORMATIONSYSTEM.........................................................................32StatementoftheProblem.....................................................................................................................32DescriptionoftheStrategy....................................................................................................................32

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ExpectedBenefits..................................................................................................................................34ExpectedCosts.......................................................................................................................................35RoleofthePublicSector........................................................................................................................35ImplementationChallenges...................................................................................................................35MeasuringSuccess.................................................................................................................................36

STATEWIDEFREIGHTINFORMATIONPLATFORM........................................................................36StatementoftheProblem.....................................................................................................................36Description.............................................................................................................................................37RoleofthePublicSector........................................................................................................................38ExpectedBenefits..................................................................................................................................38ExpectedCosts.......................................................................................................................................38Challenges..............................................................................................................................................38MeasuringSuccess.................................................................................................................................39

BORDERREGIONITSSTRATEGY...................................................................................................39StatementoftheProblem.....................................................................................................................39Description.............................................................................................................................................40ExpectedBenefits..................................................................................................................................41ExpectedCosts.......................................................................................................................................42RoleofthePublicSector........................................................................................................................42ImplementationChallenges...................................................................................................................43MeasuringSuccess.................................................................................................................................44

FREIGHT-FOCUSEDTRAFFICMANAGEMENT...............................................................................44StatementoftheProblem.....................................................................................................................44DescriptionoftheStrategy....................................................................................................................45ExpectedBenefits..................................................................................................................................47ExpectedCosts.......................................................................................................................................47RoleofthePublicSector........................................................................................................................48ImplementationChallenges...................................................................................................................48MeasuringSuccess.................................................................................................................................49

CONCLUSIONS..............................................................................................................................49

References...................................................................................................................................51

Appendix......................................................................................................................................59

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EfficiencyStrategiesDevelopmentGroup:InformationTechnology

ABSTRACTThisWhitePaperpresentsrecommendationsforusinginformationtechnologysolutionstoincreasetheefficiencyofCalifornia’smultimodalfreightsystem.Theserecommendationsresultedfromaconsensusbasedprocessbyworkinggroupcommitteemembers.Weaddresstwoproblems:informationproblemsinthegoodsmovementsupplychain,andinformationproblemsinstatewidetrucking.Regardingthegoodsmovementsupplychain,werecommendthefollowingstrategies:1)accelerateandexpandtheFRATISprogram;2)implementports-wideappointmentsystemsatthestate’smajorports;3)developandimplementatransparentsupplychainwideloadtrackingsystem.Regardingstatewidetrucking,werecommendthefollowingstrategies:4)statewidesmartparkingsystem;5)“push”freightinformationsystem;6)statewidefreightinformationplatform;7)borderregionITSstrategy;and8)freightfocusedtrafficmanagement.

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INTRODUCTIONThisWhitePaperpresentsrecommendationsforusinginformationtechnologysolutionstoincreasetheefficiencyofCalifornia’smultimodalfreightsystem.WefollowtheEfficiencyStrategiesDevelopmentGroup(EFDG)scopedocument,whichstates:“ThisThinkTankwillbefocusedonopportunitiesforFederal,Stateandlocalpoliciesandtheprivatesectortoremovesystem-widebarrierstotheefficientmovementoffreight.”TheITGroupframedtheproblemasoneofdelay.Therecanbedelaydueto1)congestiononroadsoratdocks,2)uncertaintyofwhenaloadcanbedeliveredorpickedup,whereaparkingplacemaybe,etc.,3)queuingatweighstations,borders,orterminalgates,4)limitedtimewindowsfordeliveries.Typically,delaysareduetoacombinationofinstitutionalproblemsand/orinformationproblems.Anexampleofinstitutional-drivendelayisroadcongestion.Roadtrafficdemandishighduringthedayandlowatnightbecausemostbusinessesdonotoperateatnight.Localtrucktrafficisconcentratedduringdaytimehoursinpartbecausedeliveriesareconstrainedtothosehours,eitherbythebusinessesthemselvesorbylocalregulation.Examplesofinformationproblemsincludetheuncertaintiesassociatedwithwhenorwherealoadisreadyforpickupordelivery,weightorotherrestrictionsonlocalroads,orunanticipatedroadorbridgeclosures.Therearenumerousbarrierstoreducingdelay,someofwhichcannotbeavoided.Forexample,despitetheincreasedprevalenceofflextimeforcertainemploymentcategories,thetypicalworkdayscheduleisnotgoingaway.Otherscanbeavoidedoratleastmitigatedthroughpolicyintervention,asintheexampleofsmartparkingsystemsthatreducethedelayassociatedwithfindingaspace.Ourtaskistoidentifybarriersthatcanbeaddressed,andshowhowITcanbeusedtoovercomethem.InaccordancewiththeState’sgoalsofincreasedfuelefficiencyandreducedGHGemissions,theITGroupfocusedonstrategiesthatgenerateeco-efficiencies:freightsystemefficiencyisimprovedwhileenvironmentalbenefitsareachieved.Wehaveorganizedourstrategiesaroundtwothemes:1)Informationproblemsinthegoodsmovementsupplychain,and2)Informationproblemsinstatewidetrucking.

Theme1:InformationProblemsintheGoodsMovementSupplyChainInthegoodsmovementsystem,amajorbarrieristhelackofinformationandmanagingtheflowofinformationflowsacrossthesupplychain.Supplychainsaresystems,butinmostcasesthereisnosystemmanager.Eachpartofthesupplychainhaslimitedinformationand/ormaynotreceiveinformationearlyenoughintheprocessabouttheotherparts,andeachactorisoptimizingtheircomponentindependently.Examplesabound:terminaloperatorsmaynot

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receiveinformationontheincomingcargosufficientlyinadvanceofthevesselarriving;manyBCOshavelimitedinformationonwhentheircargomaybeavailableormaynotbeawareofwheretoobtainsuchinformation;thetruckingcommunitymaynotreceiveloadinformationinatimelymannerforvariousreasons,warehousesdonotknowexactlywhenthenextloadwillarrive,etc.Asystemmanagerwouldoptimizeacrosstheentiresystem,butsuchmanagementrequiresinformationandcooperation.Asecondproblemismeasurementanddata.DifferentpartsofthesupplychainusedifferentmeasuresForexample,“turntime”foratruckercansometimesincludequeuingatthegate,butmoreoftenonlytrackstimespentwithintheterminal.Italsodoesnotcapturehowtruckdelaysimpactthemarineterminaloperator(MTO).Itfollowsthatdataon‘turntime’willbeinconsistentandnotcomparableacrossterminals.Evenwithinthesamesegmentofthesupplychain,firmsmayusedifferentinformationsystemsthatareincompatible,andasfirmsorpublicagenciesinvestinnewtechnologies,theyfaceproblemsininterfacingwithlegacysystems.ITmakesitmucheasiertocollectandshareinformation.Varioustypesofsensingdevicesallowforpassivecollectionofdata(e.g.cellphoneGPStraces,vehicleGPStraces,trackingofcontainersviasensors),makingthedatacollectionfarmoreefficient.Real-timeornearreal-timedatasystemsreduceuncertaintyabouttrafficconditions,containerlocation,orborderdelays.ThepotentialbenefitsofITsystemscompoundasdatasourcesandlinkagesincrease(e.g.linkingvessel,container,yardandchassisdata,asinsomeofthenewerterminaloperationssystemssoftware),becauseinformationproblemsaretypicallyattheinterfaceofsupplychainlinks.Weareseeinganexplosionofproprietarytoolstoaddressinformationproblemsinthesupplychain.FromtheearlydaysofeModaltothemanytoolsemergingtoday,therearemoreandmorechoicesofmanagementtools(e.g.truckassignmentandroutingsoftware,inventorymanagementsystems),andmorenewtoolstosolvespecificproblems(e.g.emptycontainermatching).Thisproliferationofproprietarytools,mostlyfocusedonspecificproblemsorsegmentsofthesupplychain,willcontinue.ITentrepreneurshaveeveryincentivetocreatesoftwarethatistargetedtoaspecificmarketandcapturesthecustomer.However,itdoesnotappearthatthereisanincentivetocreatetheequivalentof“opensource”systems,orinteroperablesystems.Opensourcecouldreduceprofits,andinteroperablesystemscouldintheshortrunreducecompetitiveadvantage.Nordosystemusersnecessarilywishtosharedata.Nearlyeveryparticipantinthesupplychainisinintensecompetition,andsomeusersmaybeconcernedabouttheregulatoryimplicationsofdatasharing.Thus,whilethesetoolsareincreasingefficiencyinallsortsofways,itisnotclearthatthe“systemmanager”idealwillbeachievedsimplyby“lettingthemarketwork.”TheITGrouprecommendsthreestrategiesforgeneratingeco-efficienciesbyreducinginformationproblemsinthesupplychain:1. AccelerateandexpandtheFRATISprogram

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2. Implementasystem-wideappointmentssystematCalifornia’smajorseaport3. Designafullytransparenttrackingsystemacrossthesupplychain

Theme2:InformationProblemsinStatewideTruckingGiventhatthestateshaveprimaryresponsibilityforthehighwaysystemandtheinterstatecommercethattakesplaceonthesystem,itseemsquiteappropriatefortheITGrouptoexaminepotentialefficiencyimprovementsonthestatehighwaysystem.Trafficcongestionisamajorsourceofdelay.Absentmajorinfrastructureinvestment,therearetrafficmanagementsolutions,suchassignalpriorityfortrucksinheavytrucktrafficcorridors,orimprovedreal-timeinformationandroutingsystems.Inaddition,therearemanysourcesofdelayonthehighwaysystem,asidefromrecurrenttrafficcongestion:

• Weighstations,inspectionprocesses,permitting• Limitedavailabilityofreal-timeaccident/incident/eventdata• Security-relateddelaysatbordercrossings• CVparkingandfacilityshortages

ITcouldplayagreaterroleinalltheaboveproblems.Californiahasatleastone“virtualweighstation”onI-80;itwouldbehelpfultounderstandwhetherithasimprovedtrafficconditionsinthecorridor,orimprovedweightcompliance,andhencemakesacaseforbroaderimplementation.Thereareotherissuesassociatedwithspecialpermits,andinterstatetraffic.Forexample,CaliforniaispartofPrePass,butOregonandWashingtonarenot,sointerstatetruckersneedtwodifferentpermitstobypassweightstationsamongstthethreestates.Insomeways,Californiaisattheleadingedgeinreal-timeinformation,butsomepartsofthesystemhavebetteraccessthanothers.OneofthemostadvancedFRATIS(FreightAdvancedTravelerInformationSystem)demonstrationsistakingplaceinLosAngeles.Atthesametime,Californiadoesnothaveanadvancedfreighttraveleradvisorysystem.Bordercrossingdelaysareasignificantimpedimenttocommerce,yetthereiscurrentlynoprograminplacethatistakingactiontoreducethesedelays.Finally,theissueoftruckparkingandrestareaprovisionisbecomingmoreimportantasaresultofbothconstantlyincreasingtrucktrafficandrestrictedhoursofservicerequirements.CaliforniahasoneofthemostseveretruckparkingshortagesintheUS.TheITGrouprecommendsfivestrategiesforgeneratingeco-efficienciesbyreducinginformationproblemsinstatewidetrucking:

1. Developandimplementastatewidesmartparkingsystemandincreasethesupplyoftruckparking

2. Developandimplementa“push”freighttrafficinformationsystem3. Developandimplementastatewidefreightinformationplatform4. ImplementtheBorderRegionITSStrategy5. Developandimplementfreightprioritytrafficmanagementinhighvolumetruck

corridors

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TheeightrecommendedstrategiesarediscussedinthefollowingsectionsoftheWhitePaper.

ACCELERATEANDEXPANDFRATISPROGRAM

StatementoftheProblemTheFreightAdvancedTravelerInformationSystem(FRATIS)hasbeenasuccessfulandpromisingprogramforgeneratingeco-efficiencies.Itssuccesshasbeenshowninrecentdemonstrations,andtherewillbeincreasingbenefitswithafurtherexpansionoftheprogram.AccordingtoButler(2014),thelackofFreightAdvancedTravelerInformationhasnegativeeffectsonbotheconomicefficiencyandenvironmentalsustainability.TheFRATISProgramcanproducesociety-widebenefitsincludingpromotingefficientmovementoffreighttransportation,planningoffreightdailyworkactivitiesandlogisticsmanagementsystems.Itwouldalsohelpimprovetheenvironmentofneighboringcommunitiesandsafetyofthetravelingpublic,aswellasreduceenergyconsumption.Fordifferentfreightmovementstakeholders,FRATIScanenhancecommunication,improveefficienciesandreducecosts.Itcanhelptruckingcompaniesimproveproductivityandefficiencyofthefleet,empowerdispatcherswithreal-timeinformationforfasterandbetterdecisions,generatenearoptimaltrucksitinerarywithrealtimeinformationandprovidedispatchersaccesstorealtimeterminalwaitingtimesandturn-times.Withtheinformationsystem,driverswillbeabletonavigatetotheirdestinationsandbereroutedincaseofheavytraffic,incidentsandcongestionintheircurrentroute(Butler,2014).FRATIScanhelpIntermodalFacilitiesreceivepre-notificationscontainingdetailsfortruckscomingtoperformtransactionsintheirfacilitiesandrealtimenotificationsoftrucksheadingtowardstheirfacilitieswithestimatedtimeofarrival.Thenotificationsaheadoftimewouldhelpthefacilitiesreducewaitingtime,turn-aroundtimeandunproductivepickups/drop-offsbyenablingbettercontainerturnsandreuse.WithFRATIS,intermodalfacilitiesareabletocommunicatedirectlywithdispatcherstonotifyaboutterminalclosures,incidents,oranyotheroperationalstatusinordertomitigatecongestionintheirfacilities(Butler,2014).Intermsofpublicbenefits,FRATIScanhelppromotebettertransportationplanningandpolicy,andimproveairqualitybyreducingCO2emissionsandqualityoflifeoftheregion.Itprovidesaplatformtosupporteconomicdevelopmentintheregionandcontributetobetterutilizationofexistinginfrastructureandcapacity.WithmoreinformationaboutsaferroutesfortruckingoperationsprovidedbyFRATIS,localcommunitiescaneffectivelyprotectresidentsfromtruck-relatedaccidents(Butler,2014).

DescriptionoftheStrategyAccordingtoFigure1below,theFRATISframeworkhasthreecomponents:1)datacollectionfromdifferentpublicandprivatesources,2)FRATISITToolkitusedtopullandintegratedata,

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and3)FRATISdataapplicationtotwobasicapplicationbundlesandtheirvalueaddedversions.(Jensenetal.,2012).TheFRATISsystemintegratesdatafrommultiplesources.Overseenbyaregionalpublic-privatepartnership,FRATISwillpulldatafromvarioussourcesusingwebservicesand/orapplicationprogramminginterfaces(API).Notethatatthisearlystage,FRATISisenvisionedasaregional/urbansystemratherthananationalone,duetothesignificantdisparitiesbetweenavailableITSandfreightdataamongregions.DatasourcesincludeRegionalITSdata,truckmovementdata,intermodalterminaldataandthefutureU.S.DepartmentofTransportation(DOT)ConnectedVehicledata(Jensenetal.,2012).RegionalITSdatacontainsreal-timefreeway/arterialspeedsandtrafficvolumes,incidentdata,truckparkinglocationsandavailability,androuterestrictions.TruckmovementdataisfromthirdpartiessuchastruckspeedsandpositiondatafromGlobalPositioningSystem(GPS)devicesintrucks.Intermodalterminaldataincludesreal-timequeuelengthsandcontaineravailabilityupdates.TheFutureU.S.DepartmentofTransportation(DOT)ConnectedVehicledataincludesdataoutputsexpectedfromtheU.S.DOTConnectedVehicleprogram,suchasroad-levelweatherinformationandprobedatafromVehicle-to-InfrastructureandVehicle-to-Vehicletechnologiescurrentlyunderdevelopment.

Figure1ProposedHigh-LevelFRATISSystemConcept(Jensenetal.,2012)

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TwoFRATISapplication“bundles”containFreight-SpecificDynamicTravelPlanningandPerformanceandIntermodalDrayageOperationsOptimization.TheFreight-SpecificDynamicTravelPlanningandPerformanceapplicationbundleincludesallofthetravelerinformation,dynamicrouting,andperformancemonitoringelementsidentifiedinthedevelopmentofuserneedsforthisproject.Theapplicationwillleverageexistingdatainthepublicdomain,aswellasemergingprivatesectorapplications,toprovidebenefitstobothsectors.Relevantdataincludeswaittimesatintermodalfacilities(e.g.ports),incidentalerts,roadclosures,workzones,routingrestrictions(hazmat,oversize/overweight).TheIntermodalDrayageOperationsOptimizationapplicationbundlewillcombinecontainerloadmatchingandfreightinformationexchangesystemstofullyoptimizedrayageoperations,thereby,minimizingbobtails/dryrunsandwastedmilesandspreadingouttruckarrivalsatintermodalterminalsthroughouttheday.Individualtrucksareassignedtimewindowsforpick-upordrop-off.Theseimprovementswouldleadtocorrespondingbenefitsintermsofairqualityandtrafficcongestion.(Jensenetal.,2012)Forinstance,Figure2showsafullprocessviewofthestepsinvolvedintheusedoftheLA-GatewayFRATISsystembyPLGdispatchingstaff,andincludinginformationexchangewithYTIterminal.

Figure2OverviewofFRATISsystem10-stepprocessforusesintheLA-GatewayFRATISDemonstration(Jensen,FayezandDeSantis,2015)

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ExpectedBenefitsBasedonthesuccessfulconductofapreviousanalogoustestofFRATIS-liketechnologiesinMemphis,Tennessee,in2009,undertheU.S.DOT’sCross-TownImprovementProgram(C-TIP),Jensen,FayezandDeSantis(2015)identifyandquantifyanumberofbenefits.Theprogramreducedthenumberofbobtailtrips(i.e.,empty-returnloads)by10percent,terminalqueuetimesby20percent,traveltimesby15percent,fuelconsumptionby5percentandlevelofcriteriapollutantsandGHGby5percent.GiventhattheC-TIPtestwasofrelativelysmallscale,theresultsarepromisingforsubstantialbenefitsonlargerscaleimplementation.CDMSmithalongwithBoozAllenandNorthRiverConsulting(Troup,2014)providedsomepreliminaryassessmentresultsforLA-Gatewaydemonstrationcase.Theycomparedtestdatawithbaselinedataandcalculatedseveralindicatorsrelatedtoefficiencyofsystem.Figure3showstheaveragedailymilesperorderbeforeandaftertheinstallationoftheFRATISsystem(JantoFeb2014).Thedailymileageperorderhasdroppedsignificantlywithinlessthanoneyear.

Figure3AveragemilesperorderbeforeandaftertheinstallationoftheFRATISsystemFigure4showstheaveragedailymiles,triptimeandstoptimeperorderbeforeandaftertheinstallationoftheFRATISsystem.Allthethreeindicatorshavedroppedsignificantlywithinlessthanoneyear.

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Figure4Dailymileage,timeandstoptimeperorderbeforeandaftertheinstallationoftheFRATISsystem

ExpectedCostsOperationscostswillbebornebythreeprimaryentitiesincludingtruckingcompanies,transportationagenciesandfleetinformationprivatesectorvendors(Jensenetal.,2012).Truckingcompanydispatchers/operationsmanagerswillneedtoinstallFRATISatboththeirofficesandontheApplicationEnabledDevices(e.g.,smartphones)oftheirdrivers.InternaltrainingwillalsoberequiredforboththewebandmobileFRATISplatforms.Thecompaniesmayalsoelecttopurchasevalue-addedcommercialversionsofFRATISapplicationsthatmaybeavailablefromfleetmanagement/routing/travelerinformationprivatesectorvendors.TransportationagencieswillneedtoincludeacomponentofTMCoperationsdedicatedtotheFRATISsystemdataexchange.Theseagencieswillalsoneedtoprovideforimplementationandcontinuedoperationsandsupportofanyfreight-specificITSsensors(e.g.,keyfreightarterialsvolume/speedsensors).Agenciesresponsibleforintegratedcorridormanagementonfreight-intensiverouteswillneedtoworktogethertomakesureallrelevantdataareavailableandfeedingintoFRATIS(thiscouldincludelocaltrafficsignalsystems,stateDOTfreewaymanagementsystems,routerestrictions,commuterrailtrainmanagementsystems,andotherdatastreamsforaparticularcorridor).Also,theseagencieswillneedtooperatethecontinuouscollectionandassessmentoffreightperformanceinformationderivedfromFRATIS.Fleetmanagement/routing/travelerinformationprivatesectorvendorswillneedtoassignappropriateinternaloperationsresourcestomanagethedataintegrationassociatedwithopen-sourcedataexchangewiththeregionalpublicsectortransportationagencies.ItisassumedthatcompanieswillrecoupthecostofparticipationinFRATISthroughthedevelopmentandmarketingofcommercialvalue-addedFRATISapplicationswhichwouldlikely

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requirepaidsubscriptionsorotherpricing/costrecoverymethods.Forexample,afleetmanagementvendorcouldconceivablydevelopaspecializedversionofFRATISthatwouldbedesignedtoservedrayagereeferoperationsforseafoodcompanies.

RoleofthePublicSectorTakingtheLA-Gatewaydemonstrationasanexample,Public-SectorTestParticipants/StakeholdersmainlyincludeLAMetro,GatewayCitiesCouncilofGovernmentsandPortofLosAngelesandPortofLongBeach(Jensen,FayezandDeSantis,2015).Amongthem,LAMetroisthepublic-sectortestpartnerthatisinterestedinexaminingFRATISdataoutputstopotentiallyhelpplanforinfrastructureimprovementsintheregiontofacilitatemovement.LAMetroisalsothemajortransportationagencythatfundsasignificantportionoftheCounty’snetworkinfrastructure.GatewayCitiesCouncilofGovernmentsisakeypublic-sectorsub-MPO(coveringtheportregionandtheI-710freeway,andencompassingtwomillioncitizenslivinginSoutheastLosAngeles)stakeholderwhichdevelopedtheGatewayCitiesTechnologyPlanforGoodsMovement.ThisplanlaystheinstitutionalgroundworkfortheLA-GatewayFRATIStest.AsthelargestportcomplexinNorthAmerica,PortofLosAngelesandPortofLongBeacharebothsupportersandstakeholderforthisproject.PortpersonnelhavebeenworkingcloselywithU.S.DOTandYTIconcerningpotentialdeploymentsofFRATISandrelatedITSintheregion.AkeyinstitutionalenablingelementtodeployFRATISinagivenregionwillbethecreationoruseofaPublic-PrivatePartnership(PPP).FortheFRATISconcepttosucceed,publicandprivatesectorfreightmovementandotherdatawillneedtobeintegratedandmanagedsoastosupportthespecificdataneedsoftheFRATISapplications.Thiswillrequireorganizedcooperationbetweenpublicsectororganizations(e.g.,MPOs,DOTs,cities)andprivatesectorcompanies.TheFRATISPPPwillberesponsiblefordataandsystemintegration(i.e.,“standingup”FRATISintheregion)andprojectdevelopmentandongoingoperations(Jensen,FayezandDeSantis,2015).ItisanticipatedthattheFRATISregionalpublic-privatepartnershipwilladministertheoperationsandmaintenanceofFRATIS,withtheprivatepartnersprimarilyactingasdataproviderswithpublicsectoragenciesprovidinglaborandphysicalplant(e.g.,serverspace)tostandupthesystem.Thisapproachispreferredbecauseitisunlikelyprivatepartnerswilldothisontheirown,andmayneedguidance/assistancefromtransportationagencies.Operationsandmaintenancemaybecompletedusingin-housestaffandITresources,oritmaybeperformedbyagovernmentcontractor(Jensen,FayezandDeSantis,2015).

ImplementationChallengesThereareseveralchallengestobeovercomeifFRATISorasimilarsystemiswidelydeployedwithinthestate.Thefirstiscost.Todate,theFRATISdemoshavereceivedsignificantfundingfromUSDOT.Itisunlikelythatfederalsupportwouldbeprovidedforanongoingprograminthecurrentfederalfiscalenvironment.Thusstateandlocalagencieswouldneedtoidentifyfundingbothforcapitalinvestmentandtheongoingoperationandmaintenanceofthesystem.

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TheFRATISdemonstrationevaluationshavegeneratedsomesuggestionsforaddressingoperationalchallenges(Jensen,FayezandDeSantis,2015;Williamsonetal.,2015;Newtonetal.,2015):

• Developinganearlyandconsistentinvolvementofpublicandprivatefreightstakeholders;

• Leveraginginnovationtoimprovetherelationshipbetweentheporttruckingcommunityandtheportterminalscommunity;

• Identifyingstakeholdersthatseethevalueininnovationasameanstoimprovetheiroperationsiscriticaltomaximizingthebenefitsofadeployment;

• Selectingappropriatepartnerswhohavetheabilityandwillingnesstoparticipateintheoptimizationsystem;

• Settingupaframeworkthathavethesupportandcommitmentofseniormanagementattheonsettocommunicatetotheorganizationthatparticipationissupportedandexpected.

• DealingwiththefactthatSmallscaledemonstrations,bydefinition,maynotdemonstrateenoughbenefittomaintainnecessarystakeholderinvolvement.

SeveraloperationalconstraintsforFRATISdeploymentandoperationneedtobeovercomeaccordingtoJensonetal.(2012).First,FRATISshouldbedeployedonaregionalbasisandrequireametropolitanregional-levelfocus.BasedonthefindingsfromtheUserNeedsassessment,theprimarytargetmarketforFRATISapplicationsislocalandregionalintermodaltruckingdrayagecarriers,withasecondarymarketbeingsmall-andmedium-sizedlocalandregionaltruckcarriers(non-intermodal).Inaddition,thepublicsectorinformationsourcesthatwillbeutilizedandintegratedintoFRATISbytheprivatesectorvarygreatlybetweenmajormetropolitanregionsintheU.S.,andevenwithinsomestates.Second,FRATISreliesheavilyonpublic-privatepartnerships.PublicandprivatesectorfreightmovementandotherdatawillneedtobeintegratedandmanagedsoastosupportthespecificdataneedsoftheFRATISapplications.Thiswillrequireorganizedcooperationbetweenpublicsectororganizations(e.g.,MPOs,DOTs,cities)andprivatesectorcompanies,whichareexpectedtodeployapplicationsbasedonFRATIS.Third,thegeographiccoverageofFRATISwillbelimited.Inagivenmetropolitanregion,itwouldbeunreasonabletoexpectthateverysinglepossibleroutethatcouldbeusedbyatruckwouldhavereal-timeinformationavailabletoit;FRATISwillneedtofocusprimarilyoncriticalandmajorfreightfreeways,arterialsandintermodalconnectors.TheoperationalcapabilitiesofFRATISinagivenregionwillthusbeconstrainedbythedatasharing/integrationframeworkthatisutilizedbythepublicandprivatesector.LegalAgreements,MemorandumsofUnderstanding,andPrivateSectorReturnofInvestment(ROI)willallneedtobeaddressedbyregionaldatasharing/integrationframeworks.

MeasuringSuccessEachofthedemonstrationcaseshasdevelopedasetofsystemtestingframeworktoevaluatetheeffectivenessoftheFRATISsystem.Forinstance,theFigure5belowprovidesasummaryofthefocusofwhichelementsofFRATISweretested,andrelatesthesetotheexpectedbenefits

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hypothesesthatweredevelopedearlyonbasedonuserneedsandexpectedbenefitstotheusers(Jensen,FayezandDeSantis,2015).

Figure5FRATISsystemtestingoverviewTable1showsthedataneededforthetestingandthetesthypothesesusedtoevaluatethesuccessofeachcomponentofthesystem(Jensen,FayezandDeSantis,2015).However,noneofthethreedemonstrationcaseshasprovidedrealdatafortestingtheeffectivenessoftheFRATISsystemyet.

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Table1:DataNeededforEvaluation

System Dataneeded Elements TestHypothesesDrayageoptimization

§ Dailyordersfromthedrayagecompany.

§ Optimizationalgorithmusingtheorderdatatooptimizedrayagemoves

§ OrderEntry—simpleExcelspreadsheettobepopulatedmanually.

§ Optimizationalgorithm—Runsthroughthespreadsheetandprovidesadailyplanthatwillmaximizeproductivemovesandminimizenonproductiveones,accountingforhistoricaltrafficandterminalwaitingtimes.

§ Dispatch—PLGdispatcherscanacceptorrejectalgorithm-recommendedmovesbasedonbusinessneeds;theywillcommunicateinstructionsastheydonoworusingTomTomdevices.

§ Thedrayageoptimizationalgorithmwillprovideanoptimizedplanfortheday’smovesthatwillaccomplishallrequiredmovesinthemostefficientmannerpossible,accountingforthebusinessconstraints—thiswillresultinreducedmilestraveled,reducedtrips,fewerbobtails,lessbobtailmiles,andcorrespondingreductionsinemissions.

Freighttravelerinformationdissemination

§ TravelerinformationWebsite‘one-stopshop’withreal-timerouteandmarineterminaloperators(MTO)information

§ Dynamicrouteguidancebasedonreal-timetrafficandroutedata

§ TravelerinformationWebsite‘one-stopshop’withreal-timerouteandmarineterminaloperators(MTO)informationfordispatchersanddrivers.

§ Dynamicrouteguidancefordrivers—routing,includingreal-timetruck-friendlydynamicrouting.

§ Public-sectorfreightperformancemonitoring—Websitewithfreightmovementdatacompiledthroughoutthetest.

§ Truckdriverswillusedynamicrouteguidancefeaturetoroutearoundcongestion,savingtraveltimeandpotentiallyreducingemissions.

§ PublicagencieswillusedatageneratedbyFRATIStoassistinfreightplanningandinvestmentdecisionmaking.

Drayage-to-marineterminaloperatorscommunication

§ Predictivequeue-timeinformationbydrayageoperators

§ Realtimerouterecommendation.

§ Drayadvanceestimatedtimeofarrivalnotificationmessagestothemarineterminaloperators.

§ Dray10-minuteenroutereal-timeadvancenotificationmessagetomarineterminaloperators.

§ Marineterminaloperatorsqueuetimeinformationandalertstodraydispatcher.

§ Marineterminaloperatorsgeneralmessagingandalertscommunicationtodrayagecompanieswhiletrucksareinterminal.1

§ Abasicwebinterfacefordrayagedispatcher,andeitherawebinterfaceoranemail-drivensolutionforthemarineterminaloperator.

§ ThissystemwilldevelopaneffectivecommunicationslinkagebetweenthedrayagedispatchersandtheYusenterminaloperatorsattheport.

§ PLGdispatcherswillusethepredictivequeue-timeinformationtoavoidsendingtruckstoYTIduringthemostcongestedtimesoftheday,resultinginshorteroverallturntimesforparticipatingtrucks.

§ MTOoperationsstaffwillusedrayapproachadvancenotificationfeaturestobetterplanlaborandequipmentorders,andcontainerstackingintheyard(proofofconceptonly).

(Source:CambridageSystematics,Inc.)1Duetoliabilityconcerns,bothYTIandPLGdeterminedatthestartoftestingthattheydidnotwanttohavedirectcommunicationsbetweenMTOstaffandtruckdrivers.

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SYSTEM-WIDEAPPOINTMENTSATMAJORSEAPORTS

StatementoftheProblemTherearemanydelaysinthedrayageprocess:congestiononroadways,queuingatterminalgates,queuingorwaitingtodropofforpickup,queuingorwaitingatthedestination.Appointmentsystemsareintendedtoreducetruckqueuing,increasevelocityofcontainermovement,andreducecontainerdwelltime.Appointmentsystemstargetproductivityandefficiencyatportterminalsviatheimplementationofinformationandcommunicationtechnologies(Giuliano,etal.2008;Morais&Lord,2006).

DescriptionoftheStrategyAnappointmentsystemprovidestimewindowsfordrayagetransactions(pickup,dropoff).Thebasicsystemwouldhaveaninformationplatformthatinformsshippersofcontainer,chassisandspaceavailability.Shippersselectatimewindowforthetransaction,andatruckisdispatchedtoarriveduringthetimewindow.Appointmentsystemshavepotentialbenefitsforbothterminaloperatorsandtruckersandshippers.Appointmentsallowterminaloperatorstooptimizeutilizationofresources.Ifterminaloperatorsknowinadvancewhichcontainersarebeingpickedupordroppedoff,theycanbettermanagetruckflowsandcontainermoveswithintheterminals.Thisinformationisparticularlyusefulduringtheeveningandonweekendswhenlaborcostsarehigher.Theabilitytopredictgatemovesallowsforthemoreefficientorderinganduseoflongshorelabor.Appointmentswouldalsotranslatetoshorterturntimesfortruckers,aslesstimewouldbespentwaitingforacontainertobeavailable.Appointmentscouldalsobeusedtometertruckarrivalstopreventcongestiononthedock.

TheIdealAppointmentSystemInordertogeneratemaximumbenefits,anappointmentsystemwouldhavethefollowingattributes:

• Auniversalsystemconsistentlyappliedacrossallterminalsintheportcomplex• Asingleinformationplatformaccessibletoallusers• Prioritygatesateachterminalsothattruckincursnodelayatgate• Coordinationofgateentriesanddocktransaction(e.g.containerfullyreadyforpickup

atthetimeoftruckgateentry)• Thecapabilitytogenerateappointmentwindowsandfillthematleastonedayin

advance• Highrateofcompliance

Therearemanyactorsinvolvedinanappointmentsystem,includingports,terminaloperators,shippers,drayagetruckers,andBCOsThereareseveralexamplesofappointmentsystemsplannedorinoperation.WedescribeexamplesfromNorthAmericaandAustralia.

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AppointmentSystemsinResponsetoAB2650,CaliforniaIn2002AB2650soughttoreducevehicleemissionsandhighwaycongestionbyreducingtruckqueuingatmarineterminalgatesanddistributingtrucktrafficoveragreaterperiodoftimethroughouttheday.Thelegislationpermittedterminalstoadopteithergateappointmentsoroff-peakoperatinghoursasameansofavoidingfinesfortruckqueues.Giventhecostsanddifficultiesofimplementingoff-peakoperatinghours,mostterminalschosetoimplementappointmentsystems.Anevaluationfoundthat1)useoftheappointmentsystemdependeduponoperatingpoliciesofindividualterminals;2)perceptionsoftheappointmentsystem’seffectivenessdifferedacrossusergroups;3)therewasnoevidencethattheappointmentsystemaffectedqueuingatmarineterminalgates;4)whileamajorityoftheterminalsdidimplementanappointmentsysteminresponsetothelegislation,mostdidsoinordertoavoidpayingthehighlaborcostsassociatedwithextendingoperationstooff-peakhours,andhencehadlittleincentivetodevelopaneffectivesystem(Giulianoetal,2008).

APLTerminal,LosAngelesAPLterminalimplementedanappointmentsystemandexpandedgatehoursinresponsetoacontainervolumesurgethatmadeitnecessarytoshiftfromanall“onwheels”pickupsystemtoapartialstacksystem(JOC,7/31/14).Theterminaldidnothavesufficientcargohandlingequipmentorlongshorelabortomanagestackmoves.Thesystemrequiredtruckerstomakeacontainerappointment24hoursinadvancewithafour-hourwindowtoaccountforpossibledelay.Containerswereassuredtobeonchassiswhentruckersarrivedattheterminal.Havingthecontainerreadyforpickupguaranteedexpeditedtreatment,andhenceincentivizedcompliancebydrayagetruckers.Asaresult,theaveragetransactiontimedecreasedfrom100to60minutes.

PortBotany,Sydney,AustraliaPortBotanyimplementeda“vehiclebookingsystem”(VBS)in1999inordertomaintaina“highlevelofterminalefficiencyandmaintainacceptableturntimesfortrucks”(Davies,2009).TheVBShasbeenasuccess.Thepercentageoftrucksprocessedwithina60minuteturntime(measuredfromin-gateto“truckcomplete”–truckloadedorunloaded)increasedfrom73%in2005to85%in2006.(Davies,2009,p.13)Davies(2009)reportsthattheaverageingatetooutgatetimewas51minutesfromJanuary2001toJune2007,muchlessthanwasexperiencedintheearly1990’sbeforeintroductionoftheVBS.

NapoleonAvenueContainerTerminal,NewOrleansNapoleonAvenuecontainerterminalatthePortofNewOrleans,LA,adoptedtheappointmentsystemin2003inordertobetteruseterminalspaceandreducegatecongestion.SimilartoAPLterminal’scase,itisdesignedtointerveneandsolveproblemsbeforetrucksarriveattheterminal.Theterminalisrelativelysmall;Ithandles1,100gatemovesperday.

PortMetroVancouverPortMetroVancouver:TheVancouverporthasimplementedanumberofstrategiestoreducetruckqueuingandimproveportoperationsefficiency.Anappointmentsystembeganin2001andhasbeencontinuouslyrefinedsince.Theappointmentsystemispartofasuiteofstrategies,includingarigoroustrucklicensingpolicy,finesonterminaloperatorsifturntimes

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exceedaspecifiedmaximumcap,andaPierPasslikeoff-peakcongestionmanagementfee(Heaver,2009).

PortsofLosAngelesandLongBeachTheoperatorofPierPasshasinitiatedanefforttoorganizeaports-wideappointmentsystem.AsofAugust2015,10ofthe13containerterminals“adoptedatruckerappointmentsystemactionplanwiththegoalofestablishingasystemofappointmentsthroughouttheharborbeginningin2016.”(JOC,8/27/15).Ascurrentlyenvisioned,eachterminalwouldhaveitsownsystem,butwillcomplywith3rules:(1)appointmentswillbemandatory;(2)theywillapplytoimportsonly;(3)theappointmentsystemwillbeoperatedvialinksfromthePierPasswebsite.Appointmentsareseenaspartofacomprehensiveprogramofefficiencyimprovementsattheports.Althoughmanyappointmentsystemsareeitheroperatingorbeingplanned,noneofthemhavethefulllistofattributesrequiredforamaximallyeffective,systemwideappointmentsystemasdescribedintheprevioussection.ThePortAuthorityofNewYorkandNewJersey(PANYNJ)isscheduledtolaunchacommonportalappointmentsystemin2016thatmayprovideguidanceondevelopmentoftheCaliforniasystems.

ExpectedBenefitsTherearemanypotentialbenefitsfromaportswideappointmentsystem.Theliteratureidentifiesincreasedthroughput,reducedwaitandturntimes,increasedgateefficiency,increasedequipmentutilization,andthecapacitytoplantruckmovesacrosstheday(MorasandLord,2006;HuynhandWalton,2008;NamboothiriandErera,2008;Huynh,2009)Moststudiesofappointmentsystemsarebasedonvarioustypesofsimulation,andthesestudiesconsistentlyshowproductivitybenefits.TheonlycomprehensiveempiricalstudyisGiulianoetal.(2008).TheGiulianoetalstudyinnotlikelytobetransferable,duetotheconditionsunderwhichappointmentsystemswereimplemented.

SimulationStudiesWithasimulatedmodelbasedonqueuingtheory,ZhaoandGoodchild(2013)testedtheeffectivenessofatruckappointmentsystemandtruckappointmentinformationoncontainerterminalyardefficiency.Themodelquantifiedtheinteractionbetweenarrivingtrucksandayardcranewhentrucksretrievecontainers.Themodeltestedtheappointmentsystemconfiguration–durationofappointmenttimewindow,containerdwelltime,andappointmentleadtime–intermsoftheimportcontainerretrievaloperationandcontainerre-handling.Theauthorsreportanincreaseinterminalyardoperationefficiency.Theappointmentsystemimprovedyardcraneproductivityandtrucktransactiontime.Theterminalcouldenhancesystemperformanceinthesecases:(1)alongerappointmentleadtime(twodaysvs.oneday)couldensurebetterschedulingofyardcrane,(2)incaseofashortcontainerdwelltime,reduceddurationofappointmentwindowcouldenhanceyardefficiency,buttheeffectdiminishesasthedwelltimeincreases,and(3)theyardcraneperformancecouldberesilientagainsttheuseofinaccurateinformationormissingappointmentsiftheearly/latearrivaliswithinthe4hourwindow.Itisbecausetheyardcraneoperationalgorithmmakesacontainerlocationdecisioninawaythatminimizesre-handingofcontainers.

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HuynhandWalton(2008)combinemathematicalformulationandcomputationalsimulationtoseekasolutionthatoptimizesthenumberoftrucksenteringthecontaineryardwithrespecttotruckturntimeandyardcraneoperationefficiency.Theoptimumsolutionmustbenefitboththeterminalandthetruckersandberobustagainstlateormissingappointments.TheauthorsconductedexperimentsusingdatacollectedinMay,2003attheBarbourCutContainerterminal,PortofHouston.Thesimulationandexperimentsdocumentedthattheappointmentsystemcouldallowterminalstoplantruckmovesperdaybasedoncapacityandresources.Smoothing–reassigningoftrucksthatexceedtheterminalcapinthenexthourperiod–isbeneficialinthatitcouldenhanceyardcraneutilizationanddecreasetruckturntime.Usingadrayageoperationsplanningapproach,NamboothiriandErera(2008)developanintegerprogrammingheuristictoevaluatethecontainerpickup/deliverysequencesthatminimizetransportcostsinordertotestthepotentialproductivitygainoftheappointmentsystem.Aminorchangeingateappointmentconfigurationscansignificantlyaffecttheproductivityofdrayagefirms.Terminaloperatorsshouldprovideenoughappointmentcapacityforeffectivedrayage.Accordingtotheauthors,a30%increaseinappointmentcapacitybringsabout10-24%improvementinvehicleproductivity.Animproperselectionofappointmentscouldresultinupto4%decreaseinthenumberofservicedcustomers.A50%reductionintheappointmentwindowdurationnecessitatesa4%increaseintotalterminalcapacity.Usingdatafromfieldobservations,GuanandLiu(2008)developandtestamulti-serverqueuingmodeltoevaluategatecongestionanditsimpactonthetruckwaitingcost.DataweredrawnfromaterminalatPortofNY-NJ.Theoptimizationmodelaimstominimizeterminalgatecongestionandtruckwaitingtime/costs,anddoesnotconsidertransactiontimewithintheterminal.Ifoptimized,asmallincreaseingatecapacitycould‘drastically’reducetruckwaitingtime.Anappointmentsystemcouldbe‘themostviableway’toincreasesystemproductivityanddecreaseterminalgatecongestion,becauseitdoesnotrequirealargeexpenditureoradjustmentofmanpowerandlandexpansion.Coordinationamongshippinglines,shippers,terminaloperators,andtruckingcompanies,andallstakeholdersisnecessary.Huynh(2009)usesasimulationmodeltotestschedulingrulesthatmightaffecttruckturntimesandultimatelysystemresourceutilization.Healsoevaluatesfactorsthatmightinfluenceschedulingperformance.Theschedulingrulesareadoptedfromthehealthcaresector:individualappointmentsystem(IAS)andblockappointmentsystem(BAS),andcomparedtoanoschedulingbaseline.Relativetonoscheduling,IASdoesnotincreaseproductivityofyardcranes,butreducesinternalyardturntimebyabout44%.BASincreasescraneproductivity,butimposeslongerturntimesontruckers.IASissuperiortoBASbecauseIASisrobustinthecaseofwalk-ins,lateormissingappointments.IASbenefitsboththeterminaloperatorandtruckers.Withcaution,theterminaloperatorsmustminimizethenumberofwalk-ins,asIASissensitivetoit.Oranincreasedspacingbetweentheappointmentsisnecessary.

EmpiricalStudyUsingdatafrom3terminals,Giulianoetal.(2008)examineduseofappointments,comparedturntimeswithappointments,anduseddatafrom2terminalstoestimateturntimesavingsat

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differentlevelsofappointmentuse..Useofappointmentsvariedgreatlyacrossterminalsandreflectedpracticesoftheindividualterminals(seefigure6below).Onaverage,about63%ofappointmentswerekeptbytruckers,withthemostfrequentreasonformissingappointmentsbeingdelaysatthemarineterminal.Therewasnosignificantdifferenceinturntimesbetweenthoseusingappointmentsandthosenotusingappointments.Therewasnodataavailabletoquantifyimpactsonterminaloperations.Potentialtotalturntimesavings(includinggatequeuetime)forimportsonlywasestimatedbasedondatafromtwoterminals.Dependingupontheamountofqueueandtransactiontimesavingsassociatedwithappointments,andontheextenttowhichappointmentsareused,savingsrangefrom2%toover10%oftotalturntimeacrossalldailytransactions(seefigure7).TheGiulianoetal.studyisnotlikelytobetransferable,duetotheconditionsunderwhichappointmentsystemswereimplemented.Appointmentsystemswereimplementedinresponsetostatelegislationwhichrequiredterminalstoeitherextendgatehoursorimplementanappointmentsysteminordertoreduceemissionsfromdrayagetruckswaitingatgatesorinterminalyards.Figure6Appointmentsasshareofgatemoves(Giulianoetal,2008)

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Figure7Estimatedturntimesavingsunderdifferentassumptions(Giulianoetal,2008)

ExpectedCostsThereisnoinformationonthefinancialcostsofdevelopingandoperatinganappointmentsystem.Inthecaseofaportswidesystem,therewouldhavetobeaninformationandcommunicationssystemtocollectdatafromterminals,generateappointmentwindows,andallocatewindows.Thesystemwouldneedreal-timecapabilitytoadjusttounanticipateddelays(truckerstuckintraffic,truckerdelayedatpreviousstop,containernotlocated,etc.).Asystemwideappointmentsystemwouldinvolvesubstantialtransactionscoststodesignasystemthatwouldbeacceptabletoallstakeholders.Asystemwideappointmentsystemwouldgeneratewinnersandlosers.Someshippers/truckerswouldnotgetpreferredtimewindows,andappointmentsthatareoptimalfortheterminalsarenotnecessarilyoptimalforshippers/truckers.Althoughsomeresearchhasbeendoneonjointoptimization,whethersuchtoolsaresufficientlydevelopedforlargescaleimplementationisuncertain.

RoleofthePublicSectorAppointmentsystemsattheindividualterminallevelhavebeenimplementedinportsaroundtheworld.Wehavefewerexamplesofportwidesystems,withVancouveronenotablecaseinNorthAmerica.InVancouverthegovernmenthasplayedastrongroleviaregulationofthedrayageindustry(e.g.thetrucklicensingpolicy)andoftheterminals(e.g.thefinesystemfor

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longgatewaittimesorturntimes).InCalifornia,theportauthorities,asmanagersoftheport,wouldbealogicalentitytomanageaportwidesystem.Portauthoritiesunderstandportoperationsandhaveinteractionswiththekeystakeholdersthatwouldbeinvolvedindevelopingandoperatinganeffectivesystem.Anotherpossibilityisamulti-terminalgroupsuchasPierPass,withtheportauthoritiessettingpolicyandframework,andtheterminalgroupimplementingtheprogram.Theargumentforaterminalgroupisthatdirectmarketparticipantswhoreceivethebenefitsandcostshavemoreincentivetodevelopaneffectiveprogram.Thepublicsectormayplayakeyroleinincentivizingparticipation,servingasa“neutralforum”fordevelopinganappropriateandeffectiveappointmentsystem,andpossiblyfundingtheupfrontinformationinfrastructurethatwouldberequired.

ImplementationChallengesTherearemanyimplementationchallengestoaportwideappointmentsystem.First,thereisa“supplyside”and“demandside”ofappointments.FromtheMTOperspective,theobjectiveistouseequipment,labor,andterminalspaceasefficientlyaspossible.IdeallytheMTOwouldissueaseriesof“calls”(timewindowsforspecificpickups)thatwouldmaximizethetotalnumberofdailypickups.Fromtheshipper/truckerperspective,theobjectiveistousethefleetasefficientlyaspossible(typicallyusingoptimalroutesequencing).Itisnotnecessarilythecasethatbothobjectivesleadtothesameoutcome.Thatis,theappointmentproblemisamulti-objectiveoptimizationproblemsubjecttoconstraints.Undersuchconditions,althoughthe“system”outcomeisthebestpossible,itwillnotbethebestpossibleforatleastsomeTOsorshippers/truckers(fromtheirindividualperspectives).Someformofcompensationwouldlikelyneedtobedevelopedinordertoachievefullparticipationinthesystem.Second,benefitsoftheappointmentsystemmustbeevidenttoallparticipants.MTOsmustbeconvincedthatappointmentswillleadtoefficiencygains,ortheyhavenoincentivetoimplementoroperateaneffectivesystem.Shippers/truckersmustbeconvincedthatappointmentswillleadtoshorterandmorereliableturntimes,ortheyhavenoincentivetouseorkeepappointments.Third,aportwidesystemrequiressomecommoninfrastructureandoperationalpractices.Aportwideappointmentsystemwouldrequireacommoninformationplatform.Currently,thereareseveraldifferentinformationexchangeplatforms,andtheyarenotinteroperable.Also,aneffectiveappointmentsystemrequirescoordinationofgatesandyard,whichmayrequireprioritygates,newlogisticspractices,andotherchangesinterminaloperations.MTOsvaryinthetypeofproduct,anumberofshipsserved,customerrequirements,dockspace,etc.It,therefore,wouldbedifficulttoimplementauniformsystemacrossallMTOs.Atthesametime,however,shippers/truckersoperateacrossmultipleterminals.Thus,thebasicstructureoftheappointmentsystemwouldhavetobecommon,andtheextentofvariationinappointmentpractices(e.g.policiesforselectingappointments,variabilityofturntimes,etc.)wouldneedtobelimited.TheseissuesareevidentinthecurrentPierPasseffort.

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Fourth,theextensiveroadcongestionthatprevailsinbothLosAngelesandtheSanFranciscoBayAreageneratessignificantunreliabilityintrucktraveltimes.Whileshortertimewindowsincreasetheeffectivenessofappointmentsystems,theuncertaintygeneratedbyroadcongestionwillforcelongertimewindows,especiallyduringdaytimehours.MoraisandLord(2006)conductedterminaloperatorinterviewsin2005.ParticipatingstakeholdersincludedPortAuthorityofthePortofMontreal,CastRacineTerminalsatPortofMontreal,PortofLongBeach,PortAuthorityofNewYork-NewJersey,PortofOaklandandTransBayContainerTerminal,VancouverPortAuthority,andPortofSeattle.Theauthorsmadethefollowingobservations.First,theintegrationoftheappointmentsystemintotheterminaloperatingsystem–thatmanagesinformationofallcontainerlocation,scheduleofterminaloperation,andthebusinessrules–iscritical.Second,itisessentialthatthesystemprovidesclearincentivesandbenefitsforterminaloperatorsandtruckdrivers,suchasproductivityenhancementviafasterturnaroundtime.Terminaloperatorsregarditimportantthattheybecapableofplanningcontainermovesonadailybasisaccordingtotheircapacity.Third,extendedgatehours(e.g.PierPass)andtechnologies(e.g.OCR,RFID,andCCTVcamera)operatedalongwiththeappointmentsystemsignificantlyimprovedsuccessrates.Fourth,successfulimplementationiscriticalinordertoovercomehumanreluctancetonewbusinesspractices.Lastly,asystembasedonthecontainerispreferabletoonebasedonreservingtime,duetoduplicateappointmentsonacontainerand/orgreatercancellations.Theformersystemallowsbetterflexibilityfortruckdriversandshorterleadtimebetweenthemomenttruckersmakeappointmentandtheactualpickup.Iteliminatesthechancetooverbookacontainerpickup.Theauthorssuggestseveralrequisitesforaworkingappointmentsystem:ithandlesandreassignscancellations;itallowsappointmentsarrangedduringtheday;itallowsashortarrangementleadtimepriortopickingup;itpreventsoverbookingforthesamecontainer;itleviesapenaltyforamissedreservation(no-show);itallowstolerancefordelayedshow-up;itmakesappointmentbasedoncontainers,ratherthanontrucks;anditallowstelephonereservations.Therearemanyaspectsofaportwidesystemthatwouldhavetobeworkedout.Issuesinclude1)scopeoftheappointmentsystem(e.g.pickupsonly,allcontainermoves,oralltruckmoves,andoverwhatpartoftheday);2)howtointegratewithotherefficiencystrategiessuchas“peeloffpile”operations;3)howandtowhatextentshouldeachMTOdeterminesystemrules;4)howtodiscouragemissedappointments.

MeasuringSuccessConceptually,measuringsuccessisstraightforward,asabefore/afteranalysiscouldbedone,providedthenecessarydataareavailable.Abaselinewouldbeneededinordertomeasuresuccess.Thiswouldrequireasubstantialdatagatheringexercisebeforeimplementation.Thedatatomeasuregate-to-gateturntimeisavailablefromMTOrecords.Queuingoutsidethegatesismoredifficult;itrequiressomeformoftrucktrackingsystem,orsomeformoffieldsampling.

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ItwillbeimportanttodevelopmetricsforbothMTOsandtruckerssothatstakeholderson“bothsidesofthegates”haveinformationontheprogressandbenefitsoftheappointmentsystem.

LOADTRACKINGSYSTEMTheconceptofasystem-wideloadtrackingsystemistomakethestatus(location,contents,origin,destination)ofeveryshipmenttransparent,meaningreadilyavailableinnearreal-timetoallrelevantsupplychainparticipants,includingoceancarriers,ports,MTOs,railandtrucking,BCOs,etc.Wepresentthisasa“stretchgoal”thatwouldtakeseveralyearstoaccomplish.Ifaccomplished,suchasystemcouldgeneratesignificantefficiencybenefits,andreducefuelconsumptionandGHGemissions.

StatementoftheProblemItisdifficulttoimprovefreightefficiencywithoutknowingwherefreightisinthesupplychain.Investmentstoimprovesupplychainefficiency,suchasimprovedberths,roadsandrailroadsareintendedtomakethesupplychainmoreefficientandmorereliable,yetwithoutunderstandingtheexperienceofindividualloads,itisdifficulttodeterminetheextenttowhichsuchinvestmentsareactuallyimprovingthesituation.Asmallminorityoferrantloadstendtocauseadisproportionatedegreeofdelaywithinthesupplychain.Whenloadsaremissing,whentheyaremisidentified,orwhentheyarriveearlierorlaterthanexpected,delayscanaccruenotonlyfortheproblematicloadbutalsofortheotherloadswithinthesystem.Whilebrokersand3PLsarrangeeachlegofcargo’sjourney,theyhavetraditionallyhadlittlecontrolorinsightintotheexactrouteschosenbytransportationprovidersinmovingfromorigintodestination.Throughtrackingtechnologies,mostofwhicharecurrentlycellphonebased,brokersforthefirsttimehavetheabilitytoknowwithprecisionhowaloadmovesfromorigintodestination.Thismayallow3PL’stomorereliablyoptimizeroutingastheywillhaveabetterunderstandingofweaknesseswithinthesupplychainbystudyingeachload’s“breadcrumbpath”.Trackingcanprovidedocumentaryevidenceoftheneteffectofcongestiononindividualloadswhichcanbeusefulevidenceforpolicymakerswhoareconsideringoptionsforimprovement.Atpresent,asystemtotrackcargofromendtoendexists,howeveritexistsinapiecemealfashionandinmostcaseshasyettobestitchedtogether.Thereisevidencethatgreatersupplychaincoordinationisnowoccurringatalllevelsinordertoexpediteclearanceforterminalsthatarecapacityconstrained.Forexample,steamshiplinesnowcoordinatevesselstowageofindividualcontainersattheportoforiginandportofdeparturetoexpediteunloadingandprocessing.(Mongelluzzo,2016)Onthenextstepofthesupplychain,vesselunloadingofindividualboxes(or,alternatively,blocksofcontainers)canbecoordinatedtoexpediteon-dockraildeliveries.ThistechniquehasbeenusedinSeattle-Tacoma.(Mongelluzzo,2015)

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DescriptionoftheStrategyTodate,therehasbeennocoordinatednationalefforttotrackcargoinasystematicway.Anumberofproprietaryprogramshavebeendevelopedbytheprivatesectorthatutilizedriver’scellphonestotrackcargo.Someuseappsandthuscanonlybeusedwithsmartphoneswhereasotherscanbeusedwithanymobilephone.Asthesetechnologiesproliferate,amajorconcernisavoidingredundancy.Atpresent,ascargotravelsthroughthesupplychain,itistrackedindifferentwaysbymultipleparties,tovaryingdegreesofprecision.Onequestioniswhethertheproposalshouldadvocateasinglemethodoftrackingthatwouldstaywiththecargothroughmultiplesteps.Theidealconceptisanend-to-endsystemwithinformationavailabletotherelevantsupplychainparticipants:oceancarriers,ports,MTOs,BCOs,railandtrucking,etc.Withtechnologyallowingforeversmallerandcheapersensors,itistechnicallyfeasibletoadda“sensorID”toeveryshipment.Thesensorwouldhavecommunicationscapabilitywithinformationoncontents,origin,destination,andotheressentialdata.ItwouldhaveGPS-typecapability,sothatitslocationcouldbetrackedinreal-ornearreal-time.TheconceptualmodelisbasedonFedexorUPS,expandedtoincludemultipleusers.Theloadtrackingsystemwouldrequireacommoninformationplatformthatincludesacentralserverthatstoresthedata,databasetoolstomanageandupdatedata;astreamingcapabilitytoreceiveandprocessdatainreal-time,andAPIs(applicationprograminterface)forinteractingwiththedatabasetoallowforwebservicequeryingofthedata.Itwouldrequireamanagerandsetofprotocolsregardingwhatdataarestoredandforhowlong,whogetsaccesstothesystem,protectionofproprietarydata,storageofthedata,datasecurity,whopaystodevelop,maintainandoperatethesystem,andotheroperatingconsiderations.Itwouldneedahostacceptabletoandtrustedbyallparties.Anotherpossibleapproachistoconnectandintegratethevariousspecializedinformationsystemsthatarebeingdevelopedandsoldbyprivatevendors.Therewouldbemanychallengestointegration,includingincompatibledatastructuresandsoftware,differencesindata,lackofcontroloversoftwareandhardwarechanges,differenceinaccesspolicies,etc.

ExpectedBenefitsCargotransparencybyitselfdoesnotprovidedirectbenefits,buttherearemanyinstancesinwhichtimesavingscouldberealizedifthisinformationisintelligentlyactedupon.Forexample,aloadtrackingsystemtiedtoindividualcontainerscouldallowdispatcherstoknowwhenacontainerhasbeenmovedfromthestackandwilllikelybereadyforpickup.Thiswouldallowadrivertobedispatchedassoonasthecargoisavailable,therebyloweringdwelltimeontheyard.Itwouldalsofacilitateaneffectiveappointmentsystem.Ifpatternsofshipmentsareevaluated,itcouldleadtomoreeffectiveloadmatchingbothforLTLtruckingoptionsaswellasfortrainassembly.Loadtrackingwouldincreasethepredictabilityofshipmentswhichwouldpotentiallybenefittheslowerandmorecarbonefficientmodesoffreighttransportationsuchasrail.

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Asmostcurrenttrackingtechnologiesaretiedtoindividualdrivers,technologiesusedfortransparentloadtrackingcanbeusedtobetterutilizeexistingtruckingcapacityandbettermatchloadswithtransportationproviders.TechnologiessuchasCargoChiefcannotifydispatchersifdriversdivertfromtheirroutes(Cassidy,2015).Thisisnotanewconcept,buthasbeendiscussedsincetheintroductionofElectronicDataInterchange(EDI)inthe1980s(Siedeman,1989).ThefollowingisadescriptionofasystemcurrentlyunderevaluationatthePortsofSeattleandTacoma.

…”there’stherugged,portabletrackingdevice,battery-operatedandweighingaboutfiveorsixpoundsthatwasdesignedbySafefreightoriginallyfortrucktrailersandvehiclefleets.TheSecurityGuardSG212usesGPS,wirelessandInternettechnologiestoprovidedataonlocation,speed,direction,starts,stopsandothermeasures.Theportcantracetheexactlocationofacontainer,virtuallyinreal-time,throughaWebmapportalthat’ssimilarinappearancetoGoogleEarth.Itmeasures5inchesby3inchesby3inchesdeepandtransmitsdatawirelesslythroughcellularcommunicationstoaSafefreightserver”(Dibenedetto,2009).

Themainimmediatebenefitsfromloadtrackingincludetheeliminationof“checkcalls”thatarebasicallyaimedatgauginganETAfromthedriver.Therearefewestimatesthatattempttoquantifythenetgainsfromautomatedloadtracking,howeverthefollowingquoteseemstosuggestthatsavingscouldbesignificant:

“Weexpecttogainover50%inefficiencyinourTrafficManagementandDispatchoperations.(frominstallationofGeotrackingsoftware)”-JohnHuggins,ChiefCommercialOfficeratFXLogistics.(Fleetowner,2016)

Loadtrackingcouldalsoaidininventorymanagement.Increasedpredictabilityreducesuncertainty,whichinturnreducestheneedforextrastock.Problemsfurtherupstreaminthesupplychain,suchasacustomsdelay,couldbetransmittedtodownstreamreceiversintimetomakeadjustmentsandhenceavoidshortages.

ExpectedCostsThecostsofimplementingcargotrackingdependinlargepartoftheextenttowhichsuchasystemistruly“universal”.Forcertainloads,thecostsofcargotransparencyhavealreadyproventobejustifiablegiventhepreciousstatusofthecargo,yetforlowvaluednon-timesensitiveshipmentsthiscalculationwillproduceadifferentresult.Ascargotrackingbecomesmorewidelyavailable,thecostoftheserviceisexpectedtodecrease,particularlyforareasofthecountrythathavereliable3Gcoverage.Giventhefactthatthetrackingtechnologiesworkoffsoftwarebasedonasmartphoneorcellphoneplatform,theircosttoenterthemarketcanbequitelow.Insomecases,trackingsolutionsareevenprovidedforfree.Forexample,afirmcalledFourKitesCarrierLinkwill

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provideloadtrackingforupto2500loadspermonthforfree.(FleetOwner,2015)Itbearsnotingthatasensor-basedtrackingsystemwouldgobeyondthetruckorrailtrip,providedinformationonwheretheloadisattheterminaloratadistributioncenter.Inadditiontostartups,themajorinstitutionalplayersarealsodevelopingtheirownproprietarytrackingtechnologies.Forexample,inlate2014JBHuntlaunchedJBHunt360.ThesmartphonebasedappallowsrealtimeloadtrackingforanyJBHuntcustomer.Thisadoptionshowsthatrealtimetrackingisnolongeranicheapplicationforspecialtyloadsbutisbecomingastandardfeatureforalltypesofcargo.(JBHunt,2016)TheJBHunt360applicationworksformultimodalshipmentsastherailcarriertransmitslocationdatatoJBhuntwhichdisplaysthisinformationonthesamedashboardusedtotracktruckshipments.Inthissense,theJBHunt360applicationcomesclosertotheconceptofauniversalsystem.

RoleofthePublicSectorInmostcases,thedatacollectedbyloadtrackingsoftwareisprivateandproprietary.Asnotedearlier,theremightbenumerousbenefitsthatwouldemergefromcompilingthisdataintoasingledatabasetogiveacompleterealtimepictureoftheflowsoffreightshipmentsonthevariousnetworks(road,railandriversystems).Ifasystemcouldbedevelopedthatwoulddelayreleasetogovernmentalagenciesuntiltheinformationisnolongerconsideredsensitive,releaseonlyasample(akintothecarloadwaybillsample)orreleaseinrealtimewithcertainelementsofthedata(suchasownership)suppressed.Furthermore,asthecollectionofrealtimedataoncargostatusandlocationbecomesmorecommonplace,thetendencyoffreightproviderstoviewthelocationorstatusoftheirassetsasproprietarymaypartiallyabate.WiththeadventofcompaniessuchasCargomatic,more3PLsareviewingcargovisibilityasanessentialproductivitytool(Cargomatic,2016).Unlikemostcargovisibilityapplicationsthattargetlonghaultrucking,CargomatichasfocusedonthedrayageindustryandhascoordinateditseffortswiththePortsofLosAngelesandLongBeachtoimprovecargovisibilitywithintheterminal.(Cargomatic,2016)Whilethegovernmenthasnotyetmandatedanytypeofinterminaltrackingtechnology,thismaychangeifthetechnologyprovestoshowsoverallefficiencygains,particularlyintermsofgateproductivity.

ImplementationChallengesAmajorimplementationchallengeishowtotranslatethelongtermmanagementoftheloadtrackinginformationsystemintoeconomicbenefits,whichrequiresactingupontheinformation.Supplychainactorswillneedtobeconvincedthatinformationsharinggeneratesbenefitstothem,andincentivesmayberequiredtopromoteactingupontheinformation.Anysystemofuniversalloadtrackingwillnecessarilydevelopasaphasedimplementation.Asillustratedabove,thereareanumberoftechnologiesthatarealreadybeingimplementedatdifferentlevelsofthesupplychain.Giventheproliferationoftechnologies,itmaybetoolateinthegameforagovernmentimposedmandatethatwouldspecifyasingletechnologyandsystemofinformationgatheringtobefeasible.Ontheotherhand,asnotedabove,therewouldbesignificantchallengesinintegratingdisparatesystems.

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Ifthegovernmenthopestousethewealthofdatathatiscurrentlybeinggatheredforbroaderfreightplanningpurposes,itmustdevelopincentivestoinducetheprivatesectortosharethedata.Incertainareas,forexamplewhenloadtrackingcorrelateswithapotentialnationalsecurityconcern,theremaybeastrongercaseforcompellingshipperstoturnoverdataonloadtracking.Themajorincentive,however,isthebenefittothedataownerinmakinghis/herbusinessmoreefficient.Differentgovernmentalagencieshavetodeterminewhatconstitutes“Universal”fortheirpurposes.Thestandardwilllikelydifferdependingonwhethertransportationlogisticsprofessionalsorsecuritypartiesaresettingthecriteria.Iftransportationplannersaresettingtheterms,thedefinitionwouldlikelybelooser,i.e.thepointwheremarginalcostwouldexceedmarginalbenefitwouldoccursooner.Conversely,ifthedeterminationismadeforsecuritypurposes,theywillbemorelikelytoinsistona100%scanningcriteria,howeveriftheydeviatefromthisstandardtheywouldbemorelikelytonotrequiretrackingfordomesticshipments,crossbordershipmentsfromCanadaandfromanyotherforeignpartythatisconsideredsecure.OneclearareawheretrackingmaydovetailwithsecurityistheongoingefforttoscanandsecureimportsofcontainerizedtradeenteringtheUS.TheUSCongresshasrepeatedlydelayedimplementationof100%containerscanning.InJulyof2014,theDepartmentofHomelandSecurityannouncedanothertwo-yearextensionofthedeadlineforscanningallcontainersboundfortheUnitedStatesattheportoforigin,aswasoriginallymandatedby2007modificationstothe2006SAFEPortAct.Thelegislationhasproducedcontroversysincethetimeofitspassageduetouncertaintiesregardingitstechnicalfeasibilityandimpactoninternationaltrade.Theremustbeprovisionsforsharingdatabetweenprivateandpublicsectorandtheriskofdatasecurity.Forthepurposeofsecurity,itisimportantforthedatatobemadeavailableinclosetorealtime.However,ifthedataisfortransportationplanningpurposes,itcouldbereceivedmuchlaterandpartiallyredacted.AtpresentthevastmajorityofinvestmentisgoingintosmartphoneGPSapps.Yet,thisstrategyhasmanylimitations.Currentlyapproximatelyathirdofdriverscarrysmartphones(Macropoint,2016).Inaddition,mosttechnologiesareaimedatlonghaulcarriers.Whencargoishandedofftomultipledrivers,acellphone-basedtrackingsystemcouldbedifficulttosustain-particularlyinthedrayagesectorwhich(outsideoftheSanPedroports)tendstooperateusingoldertrucksandmorebasicIT.Anothercomplicationinloadtrackingisitsroleinmultimodalshipments.Forrail,thedelaysinshipmentdeliverytimecanoccurformultiplereasonsthatarenotencounteredbytrucks.Inaddition,railyarddwelltimeisamajorconcernfortruckcompetitivecargo.Eveniftherailoperatorisabletoprovideinformationtothebeneficialcargoowner(BCO)thattheloadis“in

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yard”,thereisstillaquestionofwhetherornotthatinformationisusefultotheBCOindeterminingwhenaloadwillmakeittoitseventualdestination.Anotherissuecomesfromthequestionof“loadintegrity”,i.e.whatisthesmallestunitofcargothatcanbetracked?Whiletherehasbeensomeattempttotrackcontainersseparatelyfromthevehiclesthatescortthem,itisdifficulttotrackcargothroughthetransloadingprocessastheloadissubdividedormovedfromacontainertoatrailer.

MeasuringSuccessAsthebenefitsdonotderivedirectlyfromloadtrackingbutarebasedonwhatisdonewiththisinformation,itisprematuretodeterminespecificmetrics.Inthebeginning,providedasystemcouldbeimplemented,anecdotalevidenceonsupplychainefficiencyenhancementscouldbepublicized.Inaddition,ifthedatawasusedtosupportinfrastructureinvestments,thiscouldbeseenasanothermeasureofsuccess.

STATEWIDESMARTPARKING

StatementoftheProblemTruckparkinghasbeenaproblemofparticularseriousnessinCalifornia.Accordingtoa2011surveybytheAmericanTransportationResearchInstitute(ATRI),hoursofservicewasidentifiedasthe2ndmostpressingtruckingissue.In2012,Californiawasranked1stincommercialvehicleparkingshortageamongallstatesintheU.S.,asdemandexceedscapacityatallpublicrestareasand88%ofprivatetruckstopsalong34ofCalifornia’scorridorswiththehighestvolumesoftrucktravel(CaliforniaDepartmentofTransportation,2012).FHWAdatasuggeststhatin2015,Californiahasonly55truckparkingspacesperdaily100,000truckVMT,whichisthe3rdworstshortageinthenationonlybehindHawaiiandRhodeIsland;theproblemismostsignificantontheI-5(Sells,2015).TheresultsofasurveyconductedontheI-5suggestthatmosttruckdriversfrequentlyencounterparkingshortageandhaveexpressedneedforimprovedservice(MartinandWarner,2012).51%ofrespondentsindicatetruckstopswerefullortoocrowdedwhentheylikedtopark,mostlyforovernightparking.Thefrequencyofparkingshortageexperiencewasgenerallyhigh,whichnearly1/3ofrespondentsencounteringshortagesituationonadailybasis.Itisalsoworthnotingthat48%keptgoinginsuchsituations.Intermsofattitudetowards72%ofrespondentsbelievedthatsmartparkingwoulddefinitelyorprobablybeusefulinfindingparkingattruckstops,while81%believedsmartparkingwoulddefinitelyorprobablybeusefultothetruckingindustryoverall.Additionally,studiesshowthatoftentimesevenwhenparkingisavailable,drivershavenoknowledgeoftheavailabilityduetounfamiliaritywiththeareaorpreviousexperience(Sells,2015).

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Someofthemostcriticalissuesrelatedtodelayoftruckparkinginclude:truckersafety,asfatigueisafactorin16%oftruckcrashesand8%offatalcrashes;Illegalparking;airqualityandpublichealthissuesrelatedtoextradieselemissions;driverproductivityloweredduetotimelostsearchingforparking.(MartinandWarner,2012)

DescriptionoftheStrategyTherearetwosmarttruckparkingprojectscurrentlyinCalifornia.OneistheSmartTruckParking(STP)projectconductedbyCaltrans;theotheristheReducedEmissionsthroughEfficientParkingforTrucks(REEPT)recentlylaunchedbyCARB.Thetwoprojectsaredescribedbelow.Werecommendamoreambitiousandcoordinatedprogramthatwouldincludetheentirestateandaddressthetruckparkingshortage.

SmartTruckParking(STP)ProjectThefollowingparagraphsaretakenfromtheresearchnotesof“ProgramSteeringCommittee(PSC):TransportationSafetyandMobility”byHansonM.(2014).ItappearsthatCaltranswasgrantedFHWAfundingtodevelopaprototypesmarttruckparkingsysteminCaliforniafocusingontheI-5.

BriefDescriptionofProject&PartiesInvolvedTheSmartTruckParking(STP)projectisacollaborativeimplementationandresearcheffortamongtheFederalHighwayAdministration,Caltrans,theUniversityofCalifornia,Berkeley,andotherpartners.Theproject,sponsoredbytheFederalHighwayAdministration,isdesignedtodemonstratereal-timeparkingavailabilityattruckstops.Thepremiseisthatifyougivetruckersaccesstotimelyaccurateinformation,theywillmakebettertraveldecisions.Betterinformationwilldiscouragetheuseofhighwayrampidling,enhancesafety,andreducelosttimeandfuelwhiletruckerssearchforavailableparking.Truckdriverswillbeabletocheckforreal-timeparkingavailabilityatselectedtruckstopsthatareparticipatinginthisprojectonawebsiteorusingamobiledevice,suchasasmartphoneortablet.Theprojectisafive-yearpilotwithaninitialfocusontheI-5corridorinCalifornia.Therearethreephasestotheproject:

1. SystemsEngineeringanddevelopmentanddeploymentofaprototypesmarttruckparkingsystemthatincludestruckparkingavailabilityfromtwosites;

2. Expansionofthesystemtosixadditionalsites;3. Evaluatesystemperformanceandeconomicsustainability

Theoverallgoalisthedevelopmentoftruckparkingsystemthatwillhelptobettermanageexistingtruckparkingspacesbyprovidingaccurateandtimelyinformationtotruckers.

WhatDoesItDo&HowDoesItDoItThisprojectwilldemonstrateandevaluateanITS-basedsolutiontoaddressparkingshortagesthatexistforlonghaultruckdrivers,providetruckersaccesstoreal-timeparkingavailability

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andtheoptionstomakeparkingreservations,andinvestigateanddevelopaself-sustainingbusinessmodelthatcanbescaledandmadeavailableattruckstopsacrossthecountry.Thesmarttruckparkingsystemhasfourmajorcomponents:Truckparkingspaceavailabilityinformationsystemsattruckparkingfacilities;

1. Anaggregatorthatcollectsandstoresthetruckcountsandspaceavailabilityforthesitesthatgeneratethisinformation;

2. AdatabaseoftruckparkingfacilityattributesforthetruckstopsandrestareasalongtheI-5corridorincludingSR99;and

3. Aweb-baseduserinterfacethatallowstruckdriversandfleetoperatorstoaccesstruckparkinginformationfromacomputerormobiledevicesuchasasmartphone

ReducedEmissionsthroughEfficientParkingforTrucks(REEPT)InNovember2015,TruckSmartParkingServices,Inc.submittedapilotprojecttotheCaliforniaAirResourcesBoard.SimilartotheSmartTruckParking(STP)project,ReducedEmissionsthroughEfficientParkingforTrucks(REEPT)willlocateontheI-5initiallyattenlocations.REEPTwilltargettheseproblemsandcoststhroughastrategythatbuildsonexistingandprovenintelligenttransportationtechnologiesandservices(ITS),andinstallsanetworkthatconnectslocationswheretrucksparktomeetHOSregulations.Thisnetworkwillserveasthebackboneforastatewideservicethatwilloptimizecommercialvehicleproductivity,meetHOSrequirements,andreduceGHGemissions.Thenetworkwillachievethefollowing:

1. Enabledeliveryofreal-timeparkingavailabilityandreservations;2. Incorporatereal-timeinformationwithHOSrequirementstopredictparkinglocation

availabilityfortruckdriversandroutes;3. Connecttoportsandterminalstoalertdriversofparkingopportunities,and;4. Ultimately,provideanoptionaltripplanningserviceforshippersandtruckersusingbig

dataanalytics.REEPTwillcollectandtransferreal-timeparkingavailability,real-timetraffic,truckerHOSrequirement,terminalqueuing,andtrucker/shipperoriginanddestinationdatatothecloud.Real-timeparkingavailabilityandtrafficinformationwillbewirelesslycommunicatedtovariablemessagesigns(VMS),websites,and/orsmartphoneapps.Bigdataanalyticswillproduceanumberofservicesincludingparkingreservations,predictiveparking,predictivetraffic,andterminalarrivaltimes.AllthedataandservicesintegratedbyREEPTwillprovidetruckersguaranteedparkingtoensureadequaterestANDtheshortestpossibletraveltimes,includingroutes,departuretimes,andavoidedqueuingatterminals(Sells,2015).

Statewide,integratedsmartparkingInordertobeaseffectiveaspossible,asmartparkingsystemmustbestatewide,usecommontechnology,andaddressthestate’sparkingshortage.TheI-5surveyresultsdocumentaserioussafetyproblem,ifnearlyhalfofalltruckerswhoreachtheHOSlimitcontinuedrivingbecausethereisnoplacetopark.IfthereisnoparkingandtruckersabidebytheHOSrules,

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theyhavelittlechoicebuttoparkillegally,oftenonhighwayshoulders.Acomprehensivestudytodeterminehowtoaddressthisproblemandanimplementationplan,ifnotdonealready,shouldbeatoppriority.Thestudyshouldincludetheentirestate,meaningwithinandoutsidethemajormetropolitanareas.Withinmetropolitanareas,port-areasatelliteparkingandstagingareasshouldalsobeconsidered.Integratedsmartparkingrequiresacommoninformationandtechnologyplatformsothattruckerswillneedonlyone“app”toaccessallparkingoptions,publicorprivate.Itwouldappearthatcurrentlythereareatleasttwoplatformsindevelopment.Iftruckersmustinvestinlearningandusingmultiplesystems,theyarelesslikelytousethematall.Integrationisimportantastheheavydutyvehiclefleetchanges;itwillbeimportanttodistributepowerstations,etc.,accordingtodemand,andtomakesuchinformationeasilyaccessible.Giventheextentofimplementationinotherstates,itappearsthatCaliforniacouldaccelerateitscurrentprograms,movingmuchmorequicklytostatewidescale.

ExpectedBenefitsPotentialbenefitsofsmarttruckparkingarereflectedmainlyinthreeaspects:safetybenefits,economicbenefits,andenvironmentalbenefits.Withregardtosafetybenefits,smarttruckparkingallowsforsafeparkingdecisionswhilereducingfatiguerelatedcrashes.Italsoremovestrucksfromrampsandshoulderstoavoidillegalparkingandrelatedsafetyhazards.Intermsofeconomicbenefits,sincedriversandcarriersaremoreefficient,profitabilityofcompaniesarelikelytoincrease.Inaddition,businessfortruckstopswouldalsogrow.Lastbutnotleast,thegreatestenvironmentalbenefitwouldbereductioningreenhousegasemissionsandenergyconsumption,as2gallonsofdieselcanbesavedwith15minuteslessoftruckdriving(MillerandMorris,2015).AsmarttruckparkingprecedentinMichiganalongtheI-94suggestsconsiderableeconomicandenvironmentalbenefits.Inthatspecificcase,withtheaverageoperatingcostofatrucknearly$120perhour,savingeachtruckdriver15minutesduringtheirregularparkingroutinecouldsave$4.4billioneachyearacrossthe400,000parkingeventsthatoccurdaily.Moreover,eachdrivercouldsavetwogallonsofdieselandreducegreenhouseemissionsbynearly45poundsperparkingsearch,morethan3.3milliontonsofCO2eachyear(O’ConnellJ.,2014).InthespecificcaseofCalifornia,asmarttruckparkingsystemcanalsohelpimprovethestate’scompetitiveedgeinfreighttransportation.WithoneofthehighesttruckvolumesandoneoftheworstparkingshortagesintheU.S.,Californiaincursover$1billioninyearlycostsfromparking-searchtravel,fatigue-relatedtruckcrashes,andterminalqueuingandidling,whichsignificantlyreducethecompetitivenessofCaliforniaports..Inordertokeepfreighttransportationcompetitive,itisnecessarytoinvestinnewtechnologyandservicestooptimizeroutingandparkingoptionsfortruckstomaximizetheuseofexistingresourcesandminimizetrucktransportationcoststoboththeindustryandsociety(Sells,2015).

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ExpectedCostsAsreportedintheMid-AmericaFreightCoalitionTPMSSynthesis(Perry,OberhartandWagner,2015)2015),thecoststoimplementtruckparkingmanagementsystemsrangedbetween$2.04million(Minnesota)to$4.4million(Michigan)and$4.8million(I-95corridor).DetailedcostsoftheMichiganinclude:$1,711,055.00fordetection,$616,450.00forcommunication,$2,080,719.00forothercosts.Theproject’sannualmaintenancecostinclude:$247,500.00fordetection,$20,315.00forcommunication.IntheproposedREEPTprojectforCalifornia,theexpectedtotalcostiscomparabletothatoftheMichiganproject.Itwillcost$4.8millionat10locationsover3yearstoinstallREEPT,establishthenetwork;providesystemenhancements,operateandmaintainthesystemandnetworkfortwoyearsafterlaunch,developandperformthirdpartyevaluations,andrecruitusersthroughanaggressivepublicrelationsandoutreachcampaign.Inaddition,REEPTwillprovidein-kindsupportofbetween$1and2millioninlicensingandlabor.Additionaldataservicesdefinedanddevelopedduringyearstwoandthreewillsupportoperationalexpenses(Sells,2015).

RoleofthePublicSectorAmajorroleofthepublicsector,inparticularthefederalandstateauthorities,istoprovideleadershipinestablishingaregionalsmarttruckparkingsystem.Allpreviouslymentionedexamples(proposedorimplemented)ofstatewidesmarttruckparkingrequiredtheleadershipfromstatetransportationauthorities(MDOT-Michigan,Caltrans-California,etc.)andthesupportfromFHWA.Itmaybethemosteffectiveandefficientforthegovernmenttoleadsuchprojects.Althoughinstallation,operationandmanagementofasmarttruckparkingsystemcanbedonebyaprivatefirmwiththeexpertise(TSPS,ParkingCarma,etc.),itisstillnecessaryforthepublicsectortobeinvolvedintheprocess.Anotherimportantrolethatthepublicsectorplaysistoprovidefunding.Forinstance,USDOTannouncedinOctober2015a$25milliongranttotheRegionalTruckParkingInformationandManagementSystemProjecttoimplementtechnologythatalertsdriverstoavailabletruckparkingineightMidwesternstates(CCJStaff,2015).InthecaseofREEPTinCalifornia,italsonotesthattheproposedprojectneedsgovernmentfundingforinitialinstallationandoperations.Theleveloffundingcouldbereducedbysupportfrominteragencypartnerstoassistwithoutreachandthemarketingofsystemavailability.REEPTwillbecomethefoundationforotherservicesthatgeneraterevenues.Signsonanygovernmentfacilitieswillbetheresponsibilityoftheagencytoacquireandinstall.REEPTwillprovideconnectivityanddatafeeds(Sells,2015).

ImplementationChallengesThereareseveralimplementationchallengestoastatewidesmarttruckparkingsystem.First,Californiacurrentlyhasamixofpublicandprivatetruckparkingfacilitiesthataremanagedandoperateddifferently.Astatewidesystemwouldrequireestablishmentofstandardsandoversight,aswellasparticipationinasingleinformationsystem,orinteroperablesystems.

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Second,thereisaquestionregardingthestate’scapacitytoleadandcontributetofundingamajortechnologydevelopmentandimplementationproject.Third,thetruckparkingshortageissosevere,especiallynearorwithinthemajormetropolitanareas,thatincreasingthesupplyofparkingwouldhavetobepartofanysmartparkingplan.Thereareinnovationsemerginginresponsetotheshortage,suchaslogisticsfacilitiesprovidingovernightparking;thesewouldhavetobeincorporatedintothesmartparkinginformationsystem.Fourth,chargingforparkingislikelytobenecessarytogeneratethefundstooperateasmartparkingsystem.Truckersmaybereticenttopayforparking,andwithoutsufficientenforcementmayparkillegallyratherthanpay.Thusincentiveswouldneedtobedeveloped,forexamplesecurityandspecializedservices.

MeasuringSuccessAtthemoment,moststatesonlycollectdataaboutcrashesandfatalities.Thehandfulofstatesthatalreadycollectcustomersatisfactioninformationcouldeasilydevelopacustomersegmentationapproachtoaddresstruckoperatorsatisfactionandusewithatrucksmartparkingsystem.Stateswishingtopursuesuchasystemshouldestablishmeasurespriortosystemdesignandimplementation.Baselinelevelsforthesemeasuresshouldbecollectedbeforeasystemisimplemented.Recommendedperformancemeasuresinclude:

• Levelofawarenessoffacilities• Acceptanceanduseofparkinginformationsystem• Changesinsearchtimeanddifficultyinlocatingparking• Changesintruck-relatedcrashes• Changesinillegalparking• Changesofutilizationofparkingfacilities

Table2belowprovidesamoredetailedexplanationofthemetrics.Table2TruckParkingPerformanceMeasures(Perry,OberhartandWagner,2015)

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PUSHFREIGHTTRAFFICINFORMATIONSYSTEM

StatementoftheProblemFreightshipmentreflectspositivegrowth,andthroughthelastfewyears,globalization,competitiveindustrytrends,andnewtechnologiesareallpushingfreightvolumesupinthroughouttheU.S.Forexample,inWashington,freighthasgrowntwiceasfastasitsoverallpopulationandtrafficgrowth(WashingtonStateDepartmentofTransportation,n.d.).California(especiallySouthernCalifornia)ishometothenation’slargestcontainerportcomplex,amajoraircargocenter,aWestCoastrailhub,andnumerousregionaldistributioncenters.AsthesecondlargestmetropolitanareaintheU.S.,SouthernCaliforniaalsorepresentsoneofthelargestlocalmarketsforfreightservicesinthecountry.Regionalandlocaldistribution,domestictradeandnationaldistribution,andinternationaltradeallcontributetotheincreasingvolumeoffreightmovementintheGreaterLosAngelesarea:BasedontheFreightAnalysisFramework,FHWAestimatedthatover223milliontonsoffreightwereshippedinternallywithintheSouthernCaliforniaregion–approximately30percentofthetotalfreightshippedintheregion;SouthernCaliforniaisalsooneoftheleadingmanufacturingcentersinthenation,generatingshipmentsfordomestictradewiththerestoftheU.S;ShipmentsbetweenSouthernCaliforniaandtherestofthecountryaccountfor447milliontons,orover60percentoffreightshippedintheregion.SouthernCaliforniaisalsoalargegatewayforinternationaltrade.Over11percentofthenation’strade(byvalue)passesthroughtheregionanditcollectsover37percentofthenation’simportduties.Asamajorpopulationandemploymentgrowthregion,SouthernCaliforniaisfacinggreatdemandgrowthforfreighttransportationservices,too.AccordingtotheSouthernCaliforniaAssociationofGovernments,freighttransportationdemandisexpectedtogrowby80percentbetween1995and2020,whichwouldfurtherleadtocongestionandairqualityissues.(FederalHighwayAdministration,n.d.)Atthesametime,freighthasitsowntraveldifficulties:truckersarefacedwithmanyrestrictionslikeheight,weight,length,width,roundabouts,etc.andtheirtravelaffectedbyweatherandconstructionconditions.Real-timeornearreal-timetrafficinformationiswidelyavailable,butmostofthetimethere’snospecificsitesfortruckerstoobtainfreight-specificinformation,nottomentionthataccessusuallyrequiresactiononthepartofthetraveler.Asaresult,thetruckingcommunityisnotfullyawareoftheavailabletravelerinformationthatisalreadyavailable.(FreightMobilityStrategicInvestmentBoardandWashingtonStateDepartmentofTransportation,2008)

DescriptionoftheStrategyApushinformationsystemisasubscribersystem:Alltruckslicensedtodobusinesscouldenrollina“freightadvisoryservice”,whichwouldpushoutrelevanttrafficinformationasitbecomesavailable,ratherthanhavingthetrucker“pull”orseekoutsuchinformation.Apushsystemseekstoreducetraveltimebyalertingtruckersonrailcrossing,accidentorotherdelays,andon

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roadclosures,weatheralerts,etc.Amoresophisticatedsystemthatallowsforreal-timetrucklocationcommunicationcouldalsoprovidealertsforoversizetrucksandloadsregardingroutes.Somestateshavesetsomegoodexamplesinprovidingfreight-specifictravelerinformationandtakingtheleadtodevelop“pushinformationsystems”fortruckers.

Washingtondeveloped“FreightAlerts”,whichisanautomatede-mailandtextmessagesystemthatsendsnotificationtosubscribersabouthighvaluepredictiveinformationthatallowsthemtoplantheirroutes,staffingandequipmentneeds,andstageinventory.Thissysteminformsfreightshippersandcarriersonwhatwillhappentofreightcorridorsduringplannedconstructiondisruptions,andduringunplanned,emergencydisruptions.(WashingtonStateDepartmentofTransportation,2013)

WSDOTdevelopedthissystemin2007andimplementeditin2009.Individualscansignuptoreceivee-mailonthestatusofclosuresandotheractivitiesaffectingfreight,andby2014,30000peoplehavesignedup.Thealertsystemhasbeenaneffectivepracticeforenhancingcommunicationswithinthisdistinctandimportantsector.(Baglin,2014)Thefollowinginformationiscoveredbythisnotificationsystem:Permitsforoversizeandoverweightvehicles;Informationrelatedtothelegalweightlimitsandcalculatorstodeterminetruckweights;InformationtoobtainatranspondertobypassstateweightstationsthroughtheCommercialVehicleInformationSystemandNetworks(CVISN);Newsrelatedtomajorconstruction;Linkstotravelerinformationforthethree-stateI-5Corridor.(FreightMobilityStrategicInvestmentBoardandWashingtonStateDepartmentofTransportation,2008)

Minnesotahasaone-stop-shopsitefortruckerstogetrestrictioninformationspecificallytailoredforfreight.Itisimbeddedinthe511website(http://tr.511mn.org/index.jsp),andincludesinformationonwinterdriving,roadreports,restrictions,andweatherstations.Ithasasimilarfeatureofa“pushinformationsystem”called“PersonalizeYour511”thatallowsuserstocreateupto20variousroutesandgete-mailandtextmessagealerts.

CommuterLinkisUtah’sIntelligentTransportationSystem(ITS),whichisanetworkofresourcesdesignedtomaximizetheefficiencyoftransportationinthestateandhelpresidents“KnowBeforeYouGo”atransportationservicesinformationprogramdesignedtokeeptravelersupdatedaboutroadconditionsanddelays(CiscoSystemsInc.,2004).Itenablesregistereduserstoreceivenotificationalertsofincidentsonfreeways.Thealertscanbesenttoanydevicecapableofreceivinge-mailortextmessages,suchaspersonalcomputers,cellularphones,PDAs,andtextpagers.Userscancustomizetheiralertprofilesbyindicatingthetypeofincidentstheyareinterestedinandthetimeofdaytheywanttoreceivealerts.(Kimley-HornandAssoc.,Inc.andCambridgeSystematics,Inc.,2009)

Componentsofapushinformationsystemareasthefollowinggraphshows(Figure8).Theinformationsourceprovidesnewdataforaspecificchanneltothebroadcaster.Thebroadcasterappliesfiltersonthedatatolimitdatatransfersandsendsthedata(inparalleloriteratively)toasetofrepeaters(forscalabilityreasons)forwhichthefilterssucceeded.Therepeatersthenredistributethedatatoreceivers.Forhigherscalability,additionallevelsofrepeatersmaybenecessary.Everybroadcastercansendtomultiplechannelsandevery

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receivercanreceivefrommultiplechannels.InFigure8someofthearcsrepresentingchannelsandbackchannelscutthroughcomponentsofthetransportsystemtomotivatethatthesecomponentsarenecessaryforscalabilitypurposesbutaretransparenttothechannelsandthedisseminationprocess.(HauswirthandJazayeri,1999)

Figure8ComponentsofPushInformationSystem(Source:XXXXX)Tobuildsuchafreightpushinformationsystem,thefollowingdatawouldbenecessary:Locationofroads;Statusofroads(e.g.,roadqualityortemporaryconstructionontheroads);Typesofvehiclesthatcanutilizetheroad;Limitationsandcongestion;Real-timeinformation(congestion,accident,etc.).(Ranaiefar,2012)ExpectedBenefitsApushinformationsystemforfreightisbeneficial:Itprovideseasieraccessfortruckerswithrelevantinformation;Itminimizestrafficbyhelpingfreightavoidconstructionareas;Italsominimizesadditionaltrafficdisruptionsbyavoidingoversize/over-height/over-widthloadsthatmightaddmoredelaysorproblems;Itimprovestruckmobilitybyincreasingknowledgeofconstructionactivity,incidents,andbordercongestionthatallowstruckstoplanroutesandscheduletravel;Itreduceslocalimpacts;Italsoimprovessafetybyincreasingcompliancewithweightandpermittingrestrictions.(WashingtonStateDepartmentofTransportation,2008)

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BasedonITSsuccessesinothercities,UDOTdevelopedthreeprimarygoalsforthe‘KnowBeforeYouGo”initiative.Firsttheywantedtoreducefreewaydelaysby20percent,increasepeak-hourfreewayspeedsby15percent,andreducesignalstopsandintersectiondelaysby20percent.Second,theywantedtoenableemergencypersonneltoidentifyandrespondquickertotrafficincidents.Andthird,theywantedtoprovidetraffic,weather,andaccidentinformationtoUtahtravelersviaradio,television,theUDOTWebsite,electronicmessagesigns,andatoll-freetelephonetravelinformationline.(CiscoSystemsInc.,2004)ExpectedCostsWashingtonState’sFreightAlertssystem’scostestimateis$380,000,anditrequires1Full-timeEquivalent(FTE)toconsolidateandmaintainweb-basedinformation,and1⁄2FTEtodevelopandimplementtrainingprogramfortruckingindustry.(WashingtonStateDepartmentofTransportation,2008)UtahDOTspentapproximately$1millioninitiallytodeveloptheATMSandATISsoftwarethatformthecoreofCommuterLink.AnnualsoftwaresupportcostsforCommuterLinkareapproximately$50,000.The511phonesystemcostsapproximately$275,000annuallyinusagecharges.UDOThassixfull-timestaffdedicatedtooperatingandmaintainingCommuterLinkatUDOT‟sTOC.UDOTperiodicallyimplementsenhancementstoCommuterLink.Thecostofdesigningandimplementingtheseenhancementsvaries,butitistypicallyinthe$200,000to$300,000range.UDOTspent$50,000settingupthemobilewebcapabilitiesandhasa$25,000annualmaintenancecontract.(Kimley-HornandAssoc.,Inc.andCambridgeSystematics,Inc.,2009)Minnesota’sTruckerInfo’supfrontcostis$150,000,andannualmaintenanceandoperationscostis$10,000.RoleofthePublicSectorThestategovernmenthastheresponsibilitytoensuretheprovisionoftravelerinformationtothepublic,especiallyinformationthatwillassistinpreventing,avoidingorminimizingtravel-relatedcrashesandincidents,andmakesurethatthetransportationsystemoperatesefficiently,especiallyintermsofreducingcongestionanddelay.(MinnesotaStateDepartmentofTransportation,n.d.)TheStateDOTshouldalsoencouragethedevelopmentofpublic/privatesectorpartnerships,forexample,WSDOTiscurrentlycontractingwithathird-partysubscriptionalertsystemthatcouldbeusedtodisseminatetruckinformation.(WashingtonStateDepartmentofTransportation,2008)TheStateDOTshouldprovidefundingfordevelopmentandoperationsforthestrategy,too.Andfinally,thegovernmentshouldalsoplananoutreachandpublicinformationefforttoinformthetruckingindustryofthetoolsandinformationavailable.ImplementationChallengesThefreightpushinformationsystemisarelativelysimpleconcept,andthereareexamplesinotherstatestohelpguideanimplementationplan.ThestateofCalifornia,throughCaltrans,

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statehighwaypatrol,andstateemergencyserviceshavetheinformationthatwouldbepartofapushsystem.Mostofthisinformationisavailablenowonwebsitesorvia511services.Thusthemainchallengewouldbedevelopingthesystemandfindingthefundstopayforit.Longerterm,thesystemcouldbeexpandedbeyondthestatehighwaynetwork.Inaddition,thepushsystemcouldbecomeofalargerfreightinformationplatform,asdiscussedinthenextstrategysection.MeasuringSuccessSeveralmetricscouldbeusedtomeasurethesuccessofthisstrategy.TravelTimeDelayisanimportantmeasure,asthemainpurposeofthisstrategyistoprovidebetteraccesstoinformationandreducecongestion.Connectivityisanotherusefulmeasure,sincetheultimategoalistoincreaseconnectivityandefficiency.Crashes–TruckandReliabilityisalsoagoodmeasureasitisfocusedonsafetyissues.Emissionmeasurestheeco-efficiencyofthestrategy,andismeaningfulinthelongrun.(AlamedaCountyGoodsMovementPlanTask4B:StrategiesEvaluation)

STATEWIDEFREIGHTINFORMATIONPLATFORM

StatementoftheProblemFreighttrucksservetheimportantfunctionofdeliveringgoodstocommunities.Oftenthesecommunitiesplantheirtransportationnetworkswithoutfreightinmind.Conflictswithlanduseanddesignburdenthetruckingindustryinregardstorouting.(UnitedStatesDepartmentofTransportation,2012)Communitieswanttoseparatefreightactivityfromresidentialuses.Theyalsodesignroadsforpersonalvehicles,bicycles,pedestrians,andeventransitbutdisregardfreightcompatibility.Asaresultmanyroadsarenotsuitableforlargetrucks.Communitieslegislatewhichroadstruckareandarenotpermittedtonavigate.Thereispressureontheindustrysideaswell,forexamplethePortofLosAngeleshaslanguageontheirconcessionagreementrequiringlicensedmotorcarrierstoabidelocaltruckrouteandprohibitions.(PortofLosAngeles,2016)Carriersinviolationcouldfacepenaltiesthatcanhavedevastatingimpactontheiralreadythinmargins.Theprocessofavoidingrestrictedroutescanbecostlyaswell.Searchingforlegalrouteshasmanyofthesamedrawbacksofsearchingforparking.DelayindeliverybecauseofroutesearchingincreasesVMTandemissionscomparedtoanoptimizedroute.(Suzuki,2011)Timelostsearchingisaburdenformulti-destinationfreighttrips.Evenwhenarouteisnotlabeledasrestrictedadrivermayfindthatthedesignoftheroadgeometrymaynotbesuitableduetoclearanceoverheadoratintersections.Oversightinsignageorpolicyonpartofthecommunitymayleadtodamagedpropertyduetoinadequateturningradiusorlowclearanceonbridges.Thisuncertaintycanhinderrealtimeroutingeffortsifthedataonwhichitisbasedisnotreliable.InstitutionalandInformationalbarrierstotruckroutedataexist.InCaliforniaCALTRANShostsstateleveltruckinginformationforthestateasawhole.Howevertheycanonlyadviseto

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contactlocalmunicipalitiesregardingtheexistenceandlocationoflegaltruckroutesthroughmunicipalities.(CALTRANSa,2016)Eventhen,manycitiesinCaliforniadonothaveeasilyaccessibleroutemapsorinformationontheirwebsites.(CALTRANSb,2016)Theonlymethodavailableistoconfirmtheexistenceofatruckrouteon-sitewhichleadstoinefficiencies.

DescriptionoftheStrategyResolvingthelocalroutedilemmawillrequireastatewideeffort.Otherstateshavealreadypioneeredeffortstoresolvetheseissues.IllinoisandConnecticutforexamplehavecentralizedtruckrouteinformation.Floridapassedlegislationthatensurelanduseanddesigncompatibilityoflocaltuckroutes.LessonscanbelearnedfromthesestatestodevelopastrategyforCalifornia.InConnecticutthestatelegislatestruckprohibitions.(CTDOT,2012)TheheadauthorityonthismatteristhestatetrafficadministrationOSTA.Theyhavejurisdictionovereverycity,townorboroughwithinthestateinregardstofreighttraffic.Municipalitiesmustrequestnon-deliverytruckprohibitionsfromtheExecutiveDirectoroftheOSTAforreviewandconsideration.OSTAinitiatesaninvestigationandinformsthemunicipalityoftheirfindings.Themunicipalitymustbeinagreementbeforeathroughtruckprohibitionisenacted.Thestatemaintainsalistofroadswithtruckprohibitionsinpdfformat.(OSTA,2012)In2012IllinoisrequiredlocalpublicagenciestoreportalllocaltruckroutesundertheirjurisdictiontothestateDOT.(IllinoisGeneralAssembly,2012)TheDOTisresponsibleforthecollectionandpublishingofthedata.CurrentlytheDOTdisplaysthedataontheirwebsiteintheformofanESRIhostedmap.(IllinoisDepartmentofTransportation,2016)Thismapcontainspermittedtruckroutesatthestateandlocallevelsallinonelocation.Floridatookanotherapproachtoprotectexistingtruckroutes.In1995thestatepassedlegislationrequiringthecreationofcorridormanagementplans.(TheFloridaSenate,2016)Theseplansareadministeredlocallyandrequirethecitytomapandprotecttruckroutesbycheckingdevelopments/roadimprovementsforcompatibility.AnychangestothetransportationcorridorsthatcouldnegativelyimpactfreightcompatibilityweretobereportedtoFDOT.(Williams&Frey,2003)Whilethisonlyappliedtomajortruckroutesitdemonstratesamethodbywhichlocalmunicipalitiesweremadeaccountabletocatalogandensureexitingroutesstayaccessible.Californiacouldadoptahybridstrategythatcantakeportionsofwhatthesestateshavedone.ThestateofCaliforniadoeshavethechallengeofalargepopulationandgeography.Datagatheringwilllikelybebestcarriedoutattheregionallevel.Inordertobecosteffective,thedatagatheringshouldbecoupledwithanexistingdatagatheringprocess.AnexistingpracticethatcouldincorporatetruckroutedatacouldbethroughRegionalTransportationPlans.TheguidelinesforRTPscallforaGoodsMovementelement.(CaliforniaTransportationCommission,2010)Thiselementcouldincorporateplansonpreservingandidentifyingtruckroutes.Amapoflocaltruckrouteswouldbeanaturaladdition.Leadagencieswouldthenpassthedatatothestate,specificallyCALTRANS.

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Itmaybenotedthattheinformationplatformforroutescouldbeextendedtoothertypesofinformationandcouldbelinkedwiththepushinformationsystemdescribedintheprevioussection.Shouldtheserecommendationsbeimplemented,coordinationwouldbehelpful.

RoleofthePublicSectorLocalmunicipalitieswillneedtodedicatesomeeffortintocollectingtheirtruckrouteregulationsintoadeliverableformat.Currently,citieshavepubliclyavailabledatainvariousformats.Somehaveitonlyintheirmunicipalcodeastext,othersasapdfimageintheirgeneralplan.ThestandardizationcouldtakeplaceatthelocallevelortheleadagenciesoverRTPscantakeonthattask.Shapefileswithattributesspecifyingrestrictionsdetailssuchasweight,type,height,oraxelswouldbeadequate.Oncethelocaldataiscentrallylocatedalongwiththestateleveldatathereareacoupleofstrategiesthatcanbetakentodistributeit.Thesimplestapproachistakingtheopendataapproach.Thehopeisthatprivateentitiestaketherawdataandincorporateitintoapplicationsthatcanbeusedbyfreightcarriersinrouting.AlternativelyCALTRANScoulddeveloptheroutingplatformthemselvesorbundleitwithotherfreightservices.

ExpectedBenefitsHavinglocalrouteinformationwilleffectivelyaddresstheissuesofroutesearchingandre-routing.CarrierscanconfidentlyoptimizetheirroutesandminimizeVMT.Efficientroutescouldhavemodestemissionsreductions.(Robinson&Foytik,2014)Reductioninviolationsfineswillreduceoperatingcosts.Additionallyhazardousfreightcanbesafelynavigatedthroughproperroutes.

ExpectedCostsExpectedcostscanbekepttoaminimum.Byappendingthedatagatheringprocesstoanexistingpractice,onlyadditionallaborhourswillbeneededtomeettheobjective.Converselylegislatinganewmandatecouldbecostlyintimeanddrafting.Datahostingcostsarevariabledependingontheformat.FTPwouldbecosteffectivewhilehavingavisualtooltogoalongwithitwouldbelessso.Ahostedmapwithvisualcapabilities,similartotheoneIllinoishas,costvariesdependingonthelicensingagreementCALTRANShaswithmappingservices.Developingacustomroutingapplicationagainvariesdependingonsoftwaredevelopmentcontractsbutcertaintypescancosthundredsofthousands.(USDOTIntelligentTransportationSystemJointProgramOffice,2016)

ImplementationChallengesThereareafewchallengestoimplementation.First,providingdataforpublicuserequiresreliability.Informationthatisoutdated,incorrectorincompleteunderminesthegoaloftheendeavor.Therecouldbelegalliabilitywherecarriersfollowingroutedataprovidedingoodfaithbutarefinedforalocalviolation.AdisclaimershouldbeprovidedsimilartothatofIllinoiswebservice.(IllinoisDepartmentofTransportation,2016)Second,thedatamustbeconsistent.Municipalitiesmayhavedifferingdefinitionsintheirlegalcodesastopermitvehicletypes.Havingaunifiedstatewidecodingconventionfortruckroutescanreduceerrorsandmistakesin

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routing.Third,giventhefiscalconstraintsfacinglocalgovernments,citiesmayresistamandatefromthestate,and/orseekreimbursementforanycostsassociatedwithprovidingtheinformation.

MeasuringSuccessTomeasurethesuccessoftheeffortwecanlookatacoupleofmetrics.Thissystemisexpectedtoimproveefficiency.Thosesavingshouldbeevidentinthefinancialsavingoffreightcarriers.OptimalroutingreducesVMTandtraveltimewhileincreasingproductivity.Trackingthesechangesinthefinancialsoftruckingfirmscouldprovideinsight.Alternativelywecantrackthelossrevenueofcitiesduetoincreasedtruckcompliance.HoweverpossiblythebestwayistouseGPStechnologytomeasureimpactsbeforeandafterimplementation.Therearepriorstousingsuchamethodtomeasurethesuccessoffreightinfrastructureimprovements.(McCormack&Hallenbeck,2006)

BORDERREGIONITSSTRATEGY

StatementoftheProblemTheSanDiegoAssociationofGovernments(SANDAG),workinginpartnershipwithU.S.CustomsandBorderProtection(CBP),theU.S.DepartmentofTransportation(USDOT),theCaliforniaDepartmentofTransportation(Caltrans)andtheU.S.GeneralServicesAdministration(GSA),isundertakingtheStateRoute11(SR11)andOtayMesaEast(OME)PortofEntry(POE)project.MexicangovernmentagenciesareadvancingthecompanionprojectknownasMesadeOtayIIPOEandconnectingroadways,whichwilldevelopabordercrossingfacilityinMexicoasapartnertothenewOMEPOE.Thepurposeofthisprojectistodecreasewaittimes,alleviatebordertrafficcongestion,andreduceemissionsbyaddingcapacitytotheregionalborder-crossinginfrastructure1.ThisprojectwouldcreatealinkbetweentheU.S.regionalhighwaysystemandroadwaysysteminMexico.Thislinkwillensurethecontinuedflowof$39Bincrossbordertrade(2014)throughtheCalifornia/BajaCaliforniaregion.Theneedforthisprojectisclearsincetradeandtravelinthisareaisforecastedtocontinuetogrowrapidlyintheregionandborderdelaysareexpectedtoincreasecorrespondingly.Thesedelayshaveeconomicimpactsattheregional,state,andnationallevels.

TheSR11ProjectThegoaloftheprojectistoreducedelayscausedbytrafficcongestionandassociatedimpactswhilealsoaccommodatingprojectedtradeandtraveldemand.Thisprojectwillsubsequentlystimulateeconomicgrowthandjobopportunitiesonbothsidesoftheborder.Tomeetthisgoal,thevisionfortheproject,istodevelopanewcross-borderfacilityandassociatedtransportationfacility,SR11,whichwillbea“state-of-the-art”border-crossing

1Therearecurrentlythreeportsofentryintheregion:SanYsidro,OtayMesaandTecate.OtayMesaEastwillbethefourth.

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facility.TheproposedPOEfacilitywillbelocatedapproximatelytwomileseastofthecurrentOMEPOEandwillultimatelybethethirdbordercrossingalongtheSanDiegoregion’sborderwithTijuana,aswellasthefourthcrossingbetweenMexicoandSanDiegoCounty.KeyobjectivesoftheproposedPOEinclude:

• OptimizingtheefficiencyofthenewPOEbyusingstate-of-the-artITSandcutting-edgeoperatingconcepts.

• Financingthefacilitythroughself-sustainingcashflowsderivedprimarilythroughtolls.• Integratingatoll-pricingdemandmanagementmodelattheborderthatisbasedon

crossingtimeandfocusedoncongestionmanagementandemissionsreduction.• Designingtheprojectasanationalmodelofpublic/publicpartnering.• Developingaprojectthatservesasanexampleforbothenvironmentalandeconomic

benefits.

DescriptionoftheStrategyTheITSstrategywillservethreeprimarypurposes.

• Firstitwillprovidetheunderlyinginfrastructureandhardwareandsoftwareapplicationstosupportentiretollcollectionsystemforthenewportofentry.ThiswillbedevelopedthroughaConceptofOperations(ConOps)andestablishmentofsystemrequirementstofeedintotheprojectalternativesanalysis,designandimplementationstages.

• Second,theITSstrategythroughtheConOpsandsystemrequirements,willprovidethe

requiredprocessandsuggestedapplications(a“blueprint”)tobeintegratedintoaRegionalBorderManagementSystem(RBMS).TheRBMSwillprovideforbinationalcommunicationandcoordinatedtrafficmanagementbetweentheexistingCaltransTransportationManagementCenter(TMC)andanewTijuana/MexicoRegionalTMC.

• Lastly,theITSstrategywillinvolvemultiplefacetsrelatedtoenhancedtrafficflow

(reducedcongestion)goalsforU.S./Mexicoportofentryoperationsincludingthemanagementofthelanesusedtoapproachtheportofentryandadvancedtravelerinformationtobemadeavailabledirectlyforusers.Advancedtechnologiestofacilitateflowwillincludelicenseplatereader(LPR),Wi-Fi,RFID,amongotherswiththecapabilitytoservetheneedsofCustomsoperationsforboththeU.S.andMexico,aswellasinformpassengerandcommercialusersaboutwittimes.Otherflowenhancementsincludeautomatedsignageand/orchangeableconstructedbarrierstoallowforoptimalmanagementpriortoenteringtheportofentry.

OtherSimilarSustainableFreightApplicationsUsingITSAdvancedTechnologiesTwoexamplesthatrelatetotheBorderRegionITSStrategyincludetheFRATISdemo(greaterLosAngeles)projectandtheexistingInterstate15ExpressLanesinSanDiegoCounty.SimilartotheFRATISsystem,TheBorderRegionITSStrategywillrelyupontheexchangeofdataand

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informationbetweentheCaltransTMC,andnewlydevelopedRBMSandTijuana/MexicoTMC.Conceptsasapartofthisincludetravelerinformationforbothpassengerandcommercialusers,messagingsignageforallusers,aswellaspotentialintegrationintoshippingindustrieswheredispatchersmaybeinvolvedthroughtheprocessforcommercialactivities.

TheInterstate15ExpressLanefacilitycurrentlyutilizesavariabletollsystemwhichispricedtofacilitatedemandmanagement.TheI-15tollroadtolltranspondertechnologyisintegratedwithotherSouthernCaliforniaregionsbytheFastTracktechnologies.Thetollratesvarywithtravelerdemand,andhaveproventobeeffectivewithcongestionmanagementintheregion.Usersofthesystemareabletoaccessinformationtodeterminethevalueoftheirtripbaseduponavariabletoll.Thissystemalsoservesaspartoftheregion’sIntegratedCorridorManagementSystem(ICMS)whichhasdynamicroutingforincidentmanagement.Additionally,thisI-15systemisintegratedintotheCaltransTMCwithallotherInterstate/Highwayfacilities.ThecombinedexperienceofSANDAGandCaltransDistrict11fortollingandTMCoperationswillbeleveragedfortheregionalbordersystemsdirectlythroughtheBorderRegionITSStrategy.

ExpectedBenefitsThetravelenvironmentthatexistsintheSanDiegoborderregionisunpredictableandtimeconsumingwithwaittimesaslongasovertwotothreehours.TheBorderRegionITSwillserveasacriticalcomponentforthegoalofachievinga20-minutewaittimeatthenewOtayMesaEastbordercrossing.TheaddedcapacityofanewbordercrossingincorporatingtheITSstrategywillprovideuserswithanoptiontoefficientlyusethisextracapacity.

Inadditiontocongestionreliefattheborder,reductionsingreenhousegasemissionsandparticulatematterpollutantswillpotentiallybearesultingbenefitaspassengerandcommercialvehiclesspendlesstimeidlingontheapproachroadsleadingtothePOEs.

AnticipatedCO2ReductionBenefitsbyBorderRegionITSStrategy(Source:SANDAG)2

2The difference between CO2 emissions is primarily driven by assumptions from implementing the SR 11 facility and OME new border crossing. This is due to the fact that the Traffic & Revenue Study assumes a rate of traffic diversion that occurs once the new POE is operational. This diversion rate reduces the number of passenger and commercial vehicles crossing at San Ysidro and Otay Mesa which reduces the respective existing delays at those crossings. The SR 11 OME border crossings provides new capacity, which is managed by a toll system which generates a wait time much lower than the existing border crossing delays. In addition to the diversion and estimated travel time savings, idling emission rates were used from the 2008 EPA report below. Combined there is a systemwide reduction of CO2 emissions.

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Otherbenefitsoverthelong-termincludehavingamoreintegratedregionaltrafficmanagementsystemthatincludesallbordercrossingsandthecollectionofinformationrelatedtowaittimesateachbordercrossingsallowinguserstomakemoreinformedtraveldecisions.Theendgoalismaximizingthecapacityefficiencyforbordercrossers.

Figure9ApproachingOME/MesadeOtayIIPOE,queue,Aduanasnorthbound/outboundprimaryinspection(Source:IBIGroup,2014)

ExpectedCostsThepreliminarycostestimateisaroundthelevelof$40millionasoutlinedintheConceptofOperations(partoftheon-goingfederallyfundedPre-DeploymentStrategy).

RoleofthePublicSectorTheleadpublicsectorimplementingagenciesinvolvedinthisprocessincludeSANDAGandCaltransDistrict11.Together,theseagenciesaretheprojectsponsors,whileotherUSfederalpartnersincludeCustomsandBorderProtection(CBP),theGeneralServicesAdministration(GSA)andtheU.S.DepartmentofTransportation(USDOT)playvaryingrolesintheproject’sdevelopment.Theseincludestaffingandoperationalandmaintenance,andprimaryuseoftheportofentrybyCBP,ownershipanddevelopmentoftheportofentrybyGSA,andfinancingsupportfromtheUSDOT.BothCBPandUSDOTarealsoinvolvedinprovidingimportantsupportfordiplomaticrelationshipswithMexico’scomparablegovernmentagencies.

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AtthebinationallevelthereisaMemorandumofUnderstandingsignedinJuly2014betweenMexicoandCaliforniaandbinational,multi-agencyoversightcommitteehasbeenformedtoexpeditetheBorderRegionITSStrategyandultimateconstructionoftheSR11/OtayMesaEastProject.ThecommitteehelditsfirstmeetinginNovember2014andmeetsregularlytoworkonkeyprojectmilestones.

TermsofthefederalITSPre-deploymentStudy(USDOTSponsored)indicatethatalltheITSBorderStrategyshouldfullyscopeintelligentsystemsonboththeUSandMXsideoftheborder;itmustbefullyintegratedandcoordinatedinordertoimprovetrafficflows.Bordertrafficoptimizationmustoccurwithbi-nationalauthorities.

Figure10BasicoperationandcoordinationconceptbetweenRegionalBorderManagementSystemandTrafficManagementCentersinUSandMX(Source:IBIGroup,2014)

ImplementationChallengesAsabinationalproject,thereareimplementationchallengesfortheproject.Theseincludecoordinationwithlocal,stateandfederalpartnersintheUnitedStates,coordinationwithlocal,stateandfederalpartnersinMexico,integrateddatacollectionandinformationsharingacross

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twodifferentcountries,andtimelyexecutionandimplementationoftheprojectbasedupontollrevenuegeneratedfinancing.WorkingthroughalllevelsofgovernmentwithintheUnitedStatesisnoeasytaskandtheprojecthasmanyresponsibilitiestoensurethatthisprocessissuccessful.DuplicatingallprocesseswithMexicoisasubstantialundertakingandrequiressignificantresources.Thebilateralcoordinationacross30borderrelatedagenciestheborderrequiressignificanttimeandresources.TheprojecthasbeenelevatedtotheHighLevelEconomicDialogueatthefederallevelwithsupportfromboththeStateofCaliforniaandMexico;soforallpurposesthisprojecthasbecomefederalizedbyboththeUSandMX.Despitemajorachievementstodate,theremainingscheduleoftheprojectwillrequirethesamelevelofeffortastheprojectprogressestowardsimplementation.Theseriskswillbemanageduntiltheprojectisconstructedandopenedtotraffic.Theprojectsponsorswilllooktobuildonpastsuccesstocontinuemovingtheprojectforward.

MeasuringSuccessThesestrategiesareaimedatachievingtheState’sSustainableFreightobjectives(GHGreductions,emissionsreductions,economiccompetitivenessandapplicationofadvancedtechnologies).TheBorderRegionITSStrategywillprovideforareductionintraveltimeswhichwillallowfortheopportunitytoreduceGHGemissions,whileimprovingthethroughputofbothpassengerandcommercialusersprovidingforeconomiccompetitiveness.ThewaittimeinformationwhichwillbeprovidedthroughtheITSstrategywillbeabletoaccuratelymeasurethetimeittakesuserstocrossthroughthebordercrossing;includingfromMexicototheCaliforniaStateHighwaysystem.ThisinformationwillinformeconomiccompetitivenessdirectlyasSANDAGhasmultiplestudiesthatprovideinformationoftheeconomicimpactfromborderwaittimes.Additionally,SANDAGisclosetoupdatingtheeconomicimpactsfromborderwaittimesandwillalsobelookingimpactstoGHG.SoanupdatedborderwaittimestudyisbeinglaunchedtoprovideinformationforanalyzingwaittimesandtheirimpactsontobotheconomiccompetitivenessandGHGemissions.

FREIGHT-FOCUSEDTRAFFICMANAGEMENT

StatementoftheProblemThemajorityoffreightmovementinCaliforniaismadebytrucks,whichaccountforasignificantportionoftrafficonthestate’shighwaysystems,especiallyalongmajorfreightcorridorssuchasI-710andI-5.Thesefreighttrucksbothcauseandsufferfromdelaysduetotrafficcongestiononhighways.Theyalsocontributetoandexperiencetrafficcongestiononsurfacestreetsontheirwaytopickupandmakedelivery,especiallyinurbanareas.

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Thereareseveraltrafficmanagementstrategiesthatcanmitigatetrafficcongestion,reducetraveldelay,andimprovetriptimereliability.Mostofthestrategiesinusetodayarefocusedonthegeneralneedsandcharacteristicsofpassengercars.However,thephysicalcharacteristicsandoperationalneedsoffreighttrucksaredifferentfromthoseofpassengercars.Therefore,thereareopportunitiestoimproveexistingtrafficmanagementstrategiesbygivingmoreconsiderationtotheneedsandcharacteristicsoffreighttrucks,andtodevelopnewfreight-focusedtrafficmanagementstrategiesthatcanbedeployedinareaswheretheshareoftrucktrafficishigh.

DescriptionoftheStrategyFreight-focusedtrafficmanagementstrategiesconsiderthephysicalcharacteristicsandoperationalneedsoftrucks,andplacegreaterweightonreducingtheirtraveldelayfor,forexample,insignaltimingatintersectionsandrampmeters.Doingsowouldincreasetravelefficiency,savefuel,andreduceemissionsforboththetrucksandtheoveralltraffic.Somefreight-focusedtrafficmanagementstrategiescanbeimplementedintheneartermwiththeuseofexistingtechnologies.OthersthatlooktotakeadvantageofConnectedandAutomatedVehicletechnologiesmaytakelongertimetodevelopanddeploy.Examplesoffreight-focusedtrafficmanagementstrategiesaregivenbelow.

FreightSignalPriorityFreightsignalpriority(FSP)allowsfreightvehiclesapproachingatrafficsignal,atsignalizedintersectionsandrampmeters,torequestsignalpriority.Itconsidersthevehicle’slocationandspeedtodeterminewhetherpriorityshouldbegranted.WiththeConnectedVehicletechnologythatenablescommunicationsbetweenvehiclesandinfrastructure(e.g.,trafficsignal),informationcollectedfromfreightvehiclesapproachingthetrafficsignal,suchasthevehicle’sadherencetoitsdeliveryschedule,weightcarried,vehicletype(e.g.,alternativefuelvehicles),anditsfuelconsumptionandemissionsmayalsobeconsideredingrantingpriority(seeFigure11).Ifpriorityisgranted,thetrafficsignalwouldturngreensoonerorstayinggreenlonger,allowingthefreightvehicletopassthroughmorequickly.

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Figure11FreightSignalPriorityinConnectedVehicleenvironment(USDOT,2014b)

TruckEco-RoutingManyexistingfleetmanagementsystemsutilizerouteplannersthatminimizetraveldistanceortraveltime.Ashortestorfastestrouteisoftennottheroutewithlowestfuelconsumptionoremissions,particularlyinareaswithhillyterrainorheavytrafficcongestion.Ontheotherhand,truckeco-routingcalculatesthemostenvironmentallyfriendlytravelrouteforatruckconsideringitsenginesize,weightcarried,roadgrade,andreal-timetrafficcondition(Scoraetal.,2013).Ifapplicable,itcanalsotakeintoaccounttimewindowtoensurethatthepickupordeliverywillbemadeontime.Truckeco-routingprovidestruckingcompaniesandtruckdriverswithanadditionalrouteplanningoption(seeFigure12),whichtheycanusetoimprovetheefficiencyoftheirtruckingoperations.

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Figure12Truckeco-routingapplication

ExpectedBenefitsInthecaseofFSP,asimulationmodelingstudy(Yelchuruetal.,2014)showsthataFSPschemethatisgearedtowardsreducingfuelconsumption(referredtoas“Eco-FSP”)providesupto4%fuelsavingsforfreightvehiclesthatareequippedwithConnectedVehicletechnology.Thisisequivalentto$649,000annualsavingsforafleetof1,000deliveryvehiclesdriving30,000milesonarterialseachyear.Anothersimulationmodelingstudy(Karietal.,2014)showthatEco-FSPreducestraveldelayoffreightvehiclesequippedwithConnectedVehicletechnologybyupto26%.Thisstudynotesthatpassengervehiclesandunequippedfreightvehiclesalsogainfuelsavingbenefits,resultinginasystem-widefuelreductionintheorderof5%-10%.Inthecaseoftruckeco-routing,acomparativeevaluationofrouteoptionsfortruck(Scoraetal.,2015)showsthatonaveragethemostfuel-efficientroutecouldsavefuelby9%-18%comparedtothefastestroute,buttaking16%-36%longertraveltime.Despitesuchtradeoff,theeco-routeoptionmaymakeeconomicsenseifthetruckwillstillarriveatthedestinationwithintherequiredtimewindow(ifany).Theeco-routeoptionisespeciallyattractivewhenthetruckcarriesheavyloadsorwhenthefuelpricesarehigh.Thus,truckdriversorfleetscanstrategicallychoosetousetruckeco-routingforpartsoftheiroperationsdependingoncircumstances.

ExpectedCostsFSPcanbeimplementedwithexistingtechnologiesthatareusedinasimilarsystemcalledtransitsignalpriority,whichcosts$8,000to$35,000persignaldependingonsystemdesignand

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functionality,andtypeofequipment(USDOT,2002).Notethattheseestimatesweremadein2002andthetechnologycostsmaybemuchloweratpresent.Alsonotethattheseestimatesincludethecostsfornecessaryequipmentbothatthetrafficsignalsandonthevehicles,whichinthecaseoftransitsignalpriority,aretypicallypaidbythetransitagencyimplementingthesystem.IfFSPistobeimplementedwithConnectedVehicletechnologythatutilizesDedicatedShort-RangeCommunication(DSRC)devices,thecapitalcostswouldrangefrom$48,000to$51,600(in2013dollars)pertrafficsignal(USDOT,2014c)whiletheannualoperations,maintenance,andreplacementcostswouldrangefrom$1,950to$3,050pertrafficsignal(USDOT,2014a).Theseinfrastructure-relatedcostswouldlikelybepaidbythepublicagencyresponsibleforthetrafficsignal.Onthevehicleside,thecapitalcostswouldbearound$4,150whiletheannualcostswouldvary(USDOT,2014d).Thesecostsarepresumablytheresponsibilityofthevehicleowner.Fortruckeco-routing,theimplementationcostsareexpectedtobeminimal.Mosttruckdriversandtruckfleetsarealreadyusingsomeformsofrouteplanningsystem.Theeco-routingoptionwouldlikelybeofferedbydeveloperasanaddedfeaturetotheexistingrouteplanningsystem.

RoleofthePublicSectorGovernmentagenciesatalllevelshaveasignificantroletoplayinthefreight-focusedtrafficmanagementstrategiesinthesamewayasintheexistingtrafficmanagementstrategies.Asownersofroadwayfacilities,stateandlocaltransportationagencieswillmanagetheirfacilitiesinawaythatachievestheirsafety,mobility,andsustainabilitygoals.Theywillserveastheentityresponsiblefortheplanning,design,andimplementationaswellastheoperationsandmaintenanceofthefreight-focusedtrafficmanagementstrategies.Thefederalgovernmentwillleadresearchanddevelopmentofnewstrategies,coordinatetechnologytransferactivities,andprovidefinancialandtechnicalsupportforthedeployment.

ImplementationChallengesChallengestotheimplementationoffreight-focusedtrafficmanagementstrategiesmayinclude:

• Finance–Implementingthesestrategieswillrequirefinancialoutlays.Intheoperatingenvironmentofmanytransportationagencieswhereresourcesarelimited,itmaybedifficultforfreight-focusedtrafficmanagementprojectstocompetewithotheragencyneeds,especiallyiffreighttrafficintheareaisnothigh.

• Perception–Sincethesetrafficmanagementstrategiesaregearedtowardsfreightvehicles,therecouldbeperceptionsbythegeneralpublicthattheirpersonalmobilityissacrificed.Managingtheseperceptionscouldbeachallenge.

• Private-PublicPartnership–Somefreight-focusedtrafficmanagementstrategiessuchasFSPalsorequireaninvestmentbyvehicleorfleetowners.Transportationagencieswillneedtogettheirbuy-inbeforetheimplementation.

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MeasuringSuccessKeyperformancemetricsinmeasuringthesuccessoffreight-focusedtrafficmanagementstrategiesinclude:

• Reductionintraveldelay• Increaseintriptimereliability• Reductioninfuelconsumption• Reductionsinvehicleemissions

Dataneededforthecalculationoftheseperformancemetricswillbecollectedinreal-worldbeforeandaftertheimplementationofanyspecificstrategies.Notethattheperformancemetricsshouldbecalculatedforbothfreightvehiclesandallvehiclesinthetraffic.Itisimportantthatimprovementsforfreightvehiclesarenotatthecostofothervehiclesinthesametrafficstream.

CONCLUSIONSThiswhitepaperhaspresentedeightpossibleITstrategiestoaddresstheGovernor’sordertoincreasetheefficiencyandsustainabilityofCalifornia’sfreightsystem.Ourapproachwastoframetheproblemasoneofdelayfromcongestionoruncertainty.Ourgoalwastoidentifystrategiesthatgenerateeco-efficiencies;strategiesthatbothincreaseefficiencybyreducingdelaysandgenerateenvironmentalbenefits(reducedfuelconsumptionandGHGemissions).Weorganizedourstrategiesaroundtwothemes:1)Informationproblemsinthegoodsmovementsupplychain,and2)Informationproblemsinstatewidetrucking.Weidentifiedeightstrategiesthatarerecommendedforconsiderationofimplementation.Becauseoftheshorttimeframeofthisstudy,wereliedentirelyontheexistingliterature.Somestrategieshavebeentestedandstudiedmorethanothers,hencetheinformationpresentedherevariesfromonestrategytoanother.Innocasewastheresufficientinformationtoquantifythecostsorbenefitsofimplementingthestrategyasdiscussedinthispaper.AllstrategiesrequireadditionalstudybeforetheircontributiontoefficiencyorGHGreductioncanbeestimated.OurassessmentoftheeightstrategiesaresummarizedinTable3below.Ourassessmentcriteriaincludecost,implementationtimeframe,degreeofdifficulty,potentialforefficiencygains,andpotentialforGHGreductions.Weusegeneralrankingsofhigh,medium,andlow,exceptforimplementationtimeframe.Allassessmentsarerelativetooneanother(e.g.“high”meanshighrelativetotheotherstrategies).Westressthatthesearehighlysubjectiveratingsbasedonverylimitedinformation.Ingeneral,thehighestcoststrategieshavethelongesttimeframes,themostchallenges,andthegreatestpotentialgains.Thelowestcoststrategiesareeasiertoimplement,butduetotheirlimitednaturearenotexpectedtohavemajorimpactsonefficiencyorGHGreductions.ThesestrategiesprovideausefulstartingpointfordevelopingastatewidefreightefficiencyprogramtoachieveCalifornia’sefficiencygoals.

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Table3:AssessmentofITStrategiesStrategy FRATIS Appts Load

trackingSmartparking

Pushinfo

system

Infoplatform

ITSborder

Trafficmgmt

Criterion Cost M+ M- H H L M- M+ HTime 3-5 1-3 5-10 5 1-3 1-3 3-4 5-10Difficulty M M H M M- M- M+ M+Efficiency H M M M M M- M+ M+GHGs M M H M M- L M+ M

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AppendixFromthepresentation“SmartTruckParking–ImprovingtheParkingExperience”(Caltrans,UniversityofCalifornia,Berkeley,ParkingCarmaandNAVTEQ,2011)

PRECEDENTSINCALIFORNIA(Asof2011)

Goal–toprovidetruckerswith:

• Truckstopattributes.• Real-timeinformationofparkingavailability.• Capabilitytomakeadvancedparkingreservations.

TheTeam:

• UCBerkeleyTSRCwillprovidedatacollectionforevaluation(includingfocusgroups,surveys,andoutreach)andtheevaluationofthesystemperformance.TSRCwillresearchandhighlighttheenergyandenvironmentalbenefitsoftheproject.

• NAVTEQwillmaintainadatabaseofpublicandprivatetruckparkingwithfeaturesofimportancetotruckers.

• ParkingCarmawillintegratereal-timetruckparkingavailability&reservationcapabilitieswithNAVTEQ’scustomizedtruckparkingmapping&routingservices.ThecompanywillalsocustomizeaninterfacefortruckdriverstoaccesstruckparkinginformationaswellasdirectionstoparkingfacilitiesbyVOICE(511or800number),internet(PCormobiledevices),andpossiblysatelliteradio.

• Caltranswillprovideoverallprojectmanagementandcoordination,grantaccesstopublicroadsandpublicparkingfacilities,andproviderecruitingsupportforpublicoutreach.

TwoPrecedents:

LogisticsTerminal,LathropCA(sensortesting)

• Adropandhookdepotfortruckstodepositandpickuptrailers.• Hasspareparkingcapacityusablebytrucks,butiscurrentlynotknownasanovernight

truckparkingfacility.• Anidealenvironmentfortestingsensorperformanceforhavingasinglesecuregate

usedforbotentrancesandexits.

FlyingJ(Pilot),Lodi,CA

• Privatetruckstopwithtwoentrancesand187spacesthatfrequentlyfillsupatnight.• Multiplesensingsystemswouldbeusedandevaluatedside-by-side.