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APPENDIX B Frequently Asked Questions What public benefits are there from implementation of private freight projects? There are often several types of public benefits from public investment in private freight proj- ects. The three major types are as follows: 1. Regional benefits. The local region benefits from reduced demand on the existing infrastruc- ture through increased efficiency of operations. These can take the form of reduced truck vehicle-miles-traveled (VMT), which also leads to reduced truck engine emissions. The region benefits from the added capacity to handle freight demand. 2. Benefits from enhanced freight access. Businesses and consumers in the local region will ben- efit from improved freight system connectivity with the rest of the country, which can result in improvements in delivery cost and reliability. 3. Benefits from reduced congestion. Communities adjacent to the transportation investment will benefit directly from more efficient freight productivity, minimizing the use of the net- work, including those portions of the network (e.g., the roadway system) that are shared by passengers and freight equipment. What factors affect freight company service offerings? Fundamentally, it is supply and demand, in terms of the number of customers and the cost of offering the service matter. Short-run and long-run cost estimates are crucial, which can fluctu- ate depending on many factors: Expected shipment sizes and volumes Pick-up and loading time components of operations (congestion and delay costs) Border/freight facility wait times (congestion and delay costs) Distribution of distances to end markets (fundamental market geography) Weather patterns during the year Choices of mode of transport at a specific location Employee workforce availability and costs Regulatory compliance costs What is the equivalent of the average automobile cost per mile for freight shipments? Unlike passenger automobile transportation, the costs and pricing of freight transporta- tion exhibit much more variation and are a complex function of varying factors such as the following: Distance traveled Route traveled Mode(s) of transportation used 30

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Frequently Asked Questions 31 Commodity density Commodity volume Product value Special service requirements Realistic freight costing models can only be determined when more about these factors are known.