Freight Issues in the Report of the National Surface Transportation Policy

and Revenue Study Commission

Transportation for Tomorrow

The Commission

• Established under Section 1909 of SAFETEA-LU

• 12 commissioners appointed by the President and Congressional leaders– Secretary of Transportation served as Chair

• Views of the Commission do not represent the views of the USDOT or its staff

Statutory Objectives

• Examine future conditions and needs of the surface transportation system over 15-, 30-, and 50-year time horizons.

• Develop a conceptual plan, with alternative approaches, to ensure that the system will continue to serve the needs of the US for the 21st Century.

• Examine the roles of the various levels of government and the private sector in meeting future surface transportation financing needs.

• Recommend alternatives to replace or supplement the fuel tax as the principal revenue source to support the Highway Trust Fund.

The Work of the Commission

• Monthly meetings (May 2006-Dec 2007)

• Public meetings

• Field hearings

• Private briefings from industry groups

• Issue papers

Structure of the Report

• Volume I – Detailed Findings & Recommendations

• Volume II – Technical Subject Treatment

• Volume III – Issue Papers & Analyses, Testimony, and Related Background Documents (including external studies)

Central Conclusion: A New Beginning

To create and sustain the pre-eminent surface transportation system in the world. • The Federal surface transportation program should not be reauthorized in its current form.

• Outgrown the transportation system that serves our mobility and our commerce to ensure U.S. prosperity and global preeminence for generations to come.

• Current institutions and program delivery mechanisms are outdated and result in a mismatch between supply and demand for transport services.

Recommendations 5-Part New Federal Compact

• A strong Federal role

• Increased expenditures from all levels of government & the private sector

• Improved effectiveness & accountability for investments

• Investment strategies targeted at performance outcomes

• Institutional and Federal program delivery reforms

The National Interest: Ten Focus Areas

Rebuilding America: A National Asset Management Program

Freight TransportationFreight Transportation: A Program to Enhance U.S. Global Competitiveness

Congestion Relief: A Program for Improved Metropolitan Mobility

Saving Lives: A National Safe Mobility Program

Connecting America: A National Access Program for Smaller Cities and Rural Areas

Intercity Passenger Rail: ….to Serve High-Growth Corridors by Rail Environmental Stewardship: …Investment …to Support a Healthy Environment Energy Security: …to Accelerate … Development of Environmentally-Friendly Replacement FuelsFederal Lands: … Providing Public Access Research, Development, & Technology: A Coherent Transportation Research Program for the Nation

Critical Factors Influencing the Future Demand for Freight Movement

• Economic Growth• International Trade• Commodity Mix• Operational Efficiency• Changes in Business Practices

Infrastructure Challenges

• Age and Deterioration• Congestion• Safety• Energy Security and Environmental

Protection• Population Growth

Freight Challenges

• Maintaining global competitiveness and supporting interstate commerce

• Infrastructure capacity and performance– Ports and international gateways– Intermodal connections– Freight bottlenecks in congested cities

Freight Investment Program

• Capacity improvements in key freight corridors• Public-private partnerships

– Intermodal, rail, and port facilities• Environmentally-friendly freight improvements• Current examples

– Alameda corridor– CREATE

Needs Analysis

• Highway and transit needs analysis based on tools used for USDOT’s Conditions and Performance Report

• Freight rail investment needs developed for Commission by AAR

• Both the highway and freight rail investment analyses drew on freight projections from the Freight Analysis Framework

Funding Sources for Future Investment

• General user fee increases– Near term: fuel taxes– Long term: VMT-based fees

• Potential new freight fees– Would be deposited with other user fees in a consolidated

Surface Transportation Trust Fund– Investment tax credits for transportation facility owners

• New taxes and fees not endorsed by all Commissioners

Policy and Financial Issues

• Assessing public and private benefits and allocating financial responsibility

• Impacts of tolling on freight movement• Modal neutrality• Geographic alignment of revenue sources and uses• Track access for passenger rail• Developing exclusive passenger and freight facilities

• Issues were raised by Commission, but not resolved

For More Information

The full report is available at

www.transportationfortomorrow.org