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APPENDIX C Reference Resources The references for the NCFRP Project 01 were selected from a very large body of literature covering the broad topics of public and private sector organizational behavior and decision mak- ing as well as transportation sector-specific research. There is a considerable amount of litera- ture on public and private sector decision making; however, the literature that deals directly with decision making in the context of freight transportation issues is less extensive. These references contain excerpts from a bibliographic literature database prepared as part of the research project. The full database is available as part of the project materials on the NCFRP website. The references in the general literature have been grouped as follows: General public and private sector decision-making comparisons Literature focusing on public transportation agency decision making Literature focusing on transportation decision making and relationships Other associated literature The identified references include research and documentation of comparisons of public and private sector decision making from the 1970s, 1980s, and 1990s. Much of the research compares organizational issues as well as decision-making aspects of processes and relationships. Contem- porary and later studies (especially Nutt 2006) bring more focus and detail to this complex topic. Many of the references that focus just on freight transportation were published within the past 5 years. They address transportation issues around the world as well as different aspects of deci- sion making including political aspects of the relationships between the public and private sec- tor. A very important source in this context is The Geography of Transport Systems by Jean-Paul Rodrigue, Claude Comtois, and Brian Slack, published in 2006. Other references cover very specific issues within single industries with respect to public and private sector decision making. A vast amount of literature is available through the Internet for free, but some of these refer- ences are copyrighted publications available only for a fee or through a subscribing library. General PublicPrivate Sector Comparison References Beenhakker, H. Investment Decision Making in the Public and Private Sectors. Quorum Books, Westport, CT, 1996. This book comprehensively describes the multifaceted approach to investment planning which involves the interactions among various disciplines. 32

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Reference Resources 33 Brettschneider, S. Management Information Systems in Public and Private Organizations. Public Administration Review, Vol. 50, 1990, pp. 536-545. This study demonstrates differences in information system management between public and private organizations. A public organization's environment reflects greater interdependence and accountability. Differences in the criteria used for purchasing hardware and software, planning processes, and placement of the top data processing manager reflect reasonable adjustments to management strategies and actions for coping with these different organizational environments. Coursey, D., and Bozeman, B. Decision Making in Public and Private Organisations: A Test of the Alternative Concept of Publicness. Public Administration Review, Vol. 50, 1990, pp. 525-535. This study examines the influence of publicness on types of strategic decisions encountered by managers. Two different concepts of publicness are examined. Drawing upon data from a mail survey, the analysis indicates that (1) publicness has a small influence on the types of strate- gic decisions addressed; (2) publicness is associated with greater decision participation but not smoothness; and (3) the ownership concept of publicness is important in accounting for differ- ences in strategic decision making. Nutt, P. Comparing Public and Private Sector Decision-Making Practices. Journal of Public Administration Research and Theory, Vol. 16, No. 2, April 2006, pp. 289-318. This article compares public and private sector decision making preferences and practices of mid-level managers working in the two sectors. The study finds that private sector managers are more apt to support budget decisions made with analysis and less likely to support them when bargaining is applied. Public sector managers are less likely to support budget decisions backed by analysis and more likely to support those that are derived from bargaining with agency people. Nutt, P. Public-Private Differences in the Assessment of Alternatives for Decision Making. Journal of Public Administration Research and Theory, Vol. 9, No. 2, 1999, pp. 30550. Public and private sector decision making is studied and decision making in a tax-supported general purpose governmental agency is compared with that done by a business firm selling to a market, using a simulation to capture differences in the preferences and practices of mid-level managers working in the two sectors. The study finds that private sector managers are more apt to support budget decisions made with analysis and less likely to support them when bargaining is applied. Public sector managers are more likely to support those that are derived from bargain- ing with agency people. Nutt, P. Decision-Making Success in Public, Private and Third Sector Organizations: Finding Sector Dependent Best Practice. Journal of Management Studies, Vol. 37, No. 1, 2000. Strategic decisions in public, private, and third sector organizations were examined to isolate and compare the practices used to uncover alternatives. The approaches applied to uncover alter- natives in these organizations and decision outcomes were identified from a systematic exami- nation of 376 strategic decisions. The preference for and success of innovation, benchmarking, search and existing solution approaches applied to uncover alternatives by decision makers in each sector is discussed. Some prescriptions are offered. Rainey, H., Backoff, R., Levine, C. Comparing Public and Private Organizations. Public Adminis- tration Review, Vol. 36, 1976, pp. 23344. This paper presents a number of propositions about differences in public and private orga- nizations, which have implications for their management. Williams, W. A. Tools for Decision Making: A Practical Guide for Local Government. In Ana- lytics in Public Sector Decision Making, Congressional Quarterly Press, Washington, D.C., 2003.

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34 Public and Private Sector Interdependence in Freight Transportation Markets Public managers and finance professionals are often pressed for time and resources. As a con- sequence, they often make decisions based on their own intuition, the availability of informa- tion, and political palatability. While this rather haphazard approach to decision making may have been considered adequate in the past, the complexity of government operations and man- dates for increased accountability to stakeholders now demands otherwise. Public Transportation Agency Decision-Making References The references for public sector transportation agency decision making include publications addressing how public agencies define their mandate to address freight transportation; how they organize themselves to carry out their mandate; the processes they use in setting freight policy, planning for freight systems, regulating freight activities, and investing in capital improvements; and the resources available to support decision making and investment. These elements are summarized in the following table and put in bold type in the references in this section. The references are grouped by their main focus (e.g., mandate, organization, etc.). Mandate Declaration Literature describes what the public agency is to do. Purpose Literature describes why the mandate is necessary. Organization Roles Literature describes how the agency is organized to carry out the mandate. Responsibilities Literature describes the responsibilities of groups within the agency. Process Procedures Literature describes the procedures for implementing the mandate (e.g., supporting decision making in setting policy, planning, issuing regulations, making capital improvements, etc.) Resources Funding Literature describes the funding available to the agency to carry out its mandate. Staffing/Skills Literature describes the number, type, skills, and level of expertise of staff deployed by the agency. Technology Literature describes the technology (broadly defined) that is deployed by the agency. Mandate for Public Sector Involvement in Freight Cambridge Systematics, Inc. Freight Transportation Bottom Line Reports. American Association of State Highway and Transportation Officials, Washington, D.C., 2003, 2007, and additional reports forthcoming. Description: AASHTO commissioned a series of reports on the condition and performance of the nation's freight systems. The first report, the Freight-Rail Bottom Line Report, was pub- lished in 2003. It examined the state of the nation's freight-rail system and its capacity to meet the anticipated demand for freight transportation. The report argued that freight rail was not keeping pace with economic growth, and that without public investment in the rail system, the railroads would likely shift tonnage from rail to the already congested highway system. The sec- ond series has four reports, addressing Freight Demand and Logistics, Highway Freight Trans- portation, Rail Freight Transportation, and Waterborne Freight Transportation. The reports examine the current condition and performance of the transportation systems, discuss the key issues facing each, and outline the policies recommended by AASHTO and the state DOTs to address freight needs. Relevance: The AASHTO Freight Bottom Line Reports primarily address the issues of mandate and purpose in public decision making about investment in freight infrastructure. The initial Freight-Rail Bottom Line Report provided an estimate of funding needs, but the more recent

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Reference Resources 35 series of demand and modal reports focuses on defining the purpose and benefits of public sector investment in freight transportation systems. These include supporting economic growth and competitiveness, and balancing the costs and impacts of highway, rail, marine, and waterway transportation on shippers, carriers, states, and communities. The major contribu- tion of these reports is to provide a relatively uniform and national overview of the condition of the nation's freight systems. The work grew out of an earlier Federal Highway Administration initiative (the Freight Analysis Framework program) and represents the first attempt by the states (and, indirectly, the U.S. DOT) to paint a comprehensive picture of freight needs and the public sector's role in the delivery of freight systems. The reports argue that investment in freight infrastructure should be tied directly to national and state economic development goals. The reports also call for stronger federal government leadership in freight planning and recommend federal funding support for projects of national and regional significance. How- ever, the reports do not specify public sector roles, responsibilities, and procedures for deci- sion making. Cambridge Systematics, Inc. National Rail Freight Infrastructure Capacity and Investment Study. Association of American Railroads, Washington, D.C., 2007. Description: The study estimates the rail freight infrastructure improvements and investment in the continental U.S. rail network required to accommodate the U.S. Department of Trans- portation's projected demand for rail freight transportation in 2035. The U.S. DOT estimates that the demand for rail freight transportation--measured in tonnage--will increase by 88% by 2035. The study finds that an investment of $148 billion (in 2007 dollars) over the next 28 years is required to keep pace with economic growth and meet the U.S. DOT forecast demand. Relevance: The study addresses the issues of purpose, process, and funding in public deci- sion making about investment in rail freight infrastructure. The study is the first national effort by the major Class I railroads to make a comprehensive statement about what is needed (e.g., additional rail capacity and investment) and why the improvements are needed (e.g., deteriorat- ing rail service, congestion, and potentially the inability on the part of the freight railroads to meet freight demand). It lays out a process for comparing current and future train volumes to rail capacity, quantifies the need for rail capacity, and estimates the cost of the improvements. It translates the needs into volume-to-capacity ratios similar to the level-of-service grades used in national highway planning, making it possible to compare--very generally--freight rail and freight highway needs and returns on investments. Finally, the study provides an initial estimate of additional (and potentially public) funding needed, which is estimated at about $1.4 billion per year over and above what the railroads are currently investing. The study provides a national snapshot of rail capacity needs; it does not address rail capacity needs by state and local area. Gordon Proctor and Associates. America's Freight Challenge. American Association of State Highway and Transportation Officials, Washington, D.C., May 2007. Description: This document draws upon the findings of the AASHTO Freight Transportation Bottom Line Reports to summarize the condition and performance of the nation's freight sys- tems and outline the consequences of increasing congestion and underinvestment for the nation's economic growth and competitiveness. The report provides a select number of "best practices" case studies to demonstrate how investment in intermodal facilities and better inte- gration of freight operations can streamline freight services. The focus of the report is AASHTO's policy recommendations, which are addressed to the National Surface Transportation Policy and Revenue Study Commission and to Congress as it takes up reauthorization of the nation's sur- face transportation programs. Relevance: America's Freight Challenge advocates a stronger mandate for public action on freight transportation, a leadership role by the federal government, reorganization of state

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36 Public and Private Sector Interdependence in Freight Transportation Markets DOTs to deal with freight planning and investment, and greater funding for freight improve- ments. The policy recommendations were adopted by the AASHTO board of directors, repre- senting the fifty state DOTs, so that the document is significant as an indicator of the emerging interest and role of state DOTs in freight decision making. U.S. Department of Transportation. Framework for a National Freight Policy. Washington, D.C., April 2006. Description: The draft framework lays out a vision and objectives, then details strategies and tactics that the U.S. DOT and its partners--both public and private sector--can pursue to improve freight transportation systems. The framework details seven objectives and accompa- nying strategies: (1) improve the operations of the existing freight transportation system; (2) add physical capacity to the freight transportation system in places where investment makes eco- nomic sense; (3) use pricing to better align all costs and benefits between users and owners of the freight system and to encourage deployment of productivity-enhancing technologies; (4) reduce or remove statutory, regulatory, and institutional barriers to improved freight transportation performance; (5) proactively identify and address emerging transportation needs; (6) maximize the safety and security of the freight transportation system; and (7) mitigate and better manage the environmental, health, energy, and community impacts of freight transportation. Relevance: The draft framework was an attempt by the U.S. DOT at a declaration of national- level policy to define what public agencies can do to improve freight transportation. Since the passage of the Intermodal Surface Transportation Efficiency Act (ISTEA) in 1991, transporta- tion planners have had a federal requirement to consider freight transportation when develop- ing transportation plans and making investment decisions. The framework marked a cautious first step at helping to address this requirement. Public Sector and Freight Issues Cambridge Systematics, Inc. Freight Transportation: New Roles for State DOTsResponding to New Missions. American Association of State Highway and Transportation Officials, Washing- ton, D.C., 2008. Description: This research examines current state DOT practices in organizing and managing freight transportation policies, programs, and projects. The study describes and compares the organizational structures and the assignment of roles and responsibilities for freight policy, plan- ning, program management, and project delivery in 13 state DOTs. The study reports that 8 of the 13 states concentrate their freight activities within a planning division; 3 states conduct all freight activities within an operations or modal division; and 2 states have an integrated or hybrid approach. Most but not all the states have an additional management layer or mechanism such as a freight advisory committee or executive-level office that coordinates the efforts of freight planning, operations, and engineering. The study finds that states are most effective in address- ing freight issues when they establish secretarial- or director-level freight offices but only where the freight office has the power to shape freight policies and hold division groups accountable for implementing state DOT freight transportation programs, projects, and initiatives. Relevance: The study is one of the few studies specifically addressing the question of how state DOTs should assign roles and responsibilities for freight planning and investment. Most state DOTs were established in the early 1900s as Bureaus of Public Roads, then reorganized in the 1960s and 1970s as DOTs to carry out the planning and construction of the Interstate Highway Sys- tem. Most DOTs have since expanded to incorporate some role and responsibility for public transit planning and program management, but very few have an organizational capability for

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Reference Resources 37 freight planning beyond truck size and weight regulation offices and programs to manage rail- road grade crossings and the preservation of local short line railroads. The study reflects an increasing awareness on the part of state DOTs that their business has expanded past the high- way construction mandate of the post-World War II era. Cambridge Systematics, Inc., and Regal Decisions. Multistate Corridor Planning Transportation. American Association of State Highway and Transportation Officials, Washington, D.C., Nov. 2005. Description: Using a backdrop of relevant federal legislation, this report outlines the histor- ical development of multistate corridor planning initiatives in the U.S. Successful efforts are demonstrated in a number of case studies. The report offers a framework for analyzing multi- state corridor planning successes as well as a synopsis of critical success factors for corridor planning. Relevance: The report documents several viable examples of multistate corridor planning efforts, and pays particularly close attention to issues of organization and procedures for deci- sion making in multistate transportation coalitions. Condition and Needs of the National and Northeast Transportation System. Testimony of Neil J. Pedersen, Chair, I-95 Corridor Coalition, before the National Surface Transportation Policy and Revenue Study Commission, Field Hearing, New York City, November 16, 2006. Description: The testimony discusses the problems of maintaining and expanding transporta- tion capacity in the 16-state (Maine to Florida) I-95 Corridor Coalition region. It advocates for an asset management approach to ensure that preservation needs are understood and invest- ments are made in a way that ensures maximum long-term return on investment in system preservation. It points out that over the next 50 years many major transportation facilities in the Corridor will be reaching the end of their useful life and must be replaced, not just rehabilitated. This will be very costly, especially where existing traffic must be maintained while reconstruc- tion takes place. In the case of many transportation facilities, and especially in the case of major structures such as bridges and tunnels, the cost of funding infrastructure replacement will be beyond the capability of the jurisdiction which owns the facility. The paper illustrates these issues with case studies of two major freight transportation facilities: the Woodrow Wilson Bridge, which spans the Potomac River between Maryland and Virginia, just southeast of downtown Washington, D.C., and is part of the I-95/I-495 beltway around Washington; and the Howard Street Tunnel, which is a single-track railroad tunnel in the heart of Baltimore City, serving freight lines operated by the CSX railroad. Built in the 1890s, the tunnel connects Cincinnati and Chicago with Philadelphia, New York, and the Northeast, and it connects the coastal cities of the Southeast to Philadelphia, New York, and New England. Relevance: Pedersen used the testimony to address the problems of mega-projects that create multistate freight transportation bottlenecks and whose reconstruction would generate benefits across multiple states, but fail to get funding because there is no mandate to address nationally and regionally significant projects; no institutional or organizational mechanism that allows states to readily coordinate and pool funding across states; and no federal funding to leverage state and private sector investments. The paper is a concise statement of the problems of deci- sion making across multistate corridors and projects. Public Sector Assessment of Freight Investments Bryan, J., Weisbrod, G., and Martland, C. NCHRP Report 586: Rail Freight Solutions to Roadway Congestion--Final Report and Guidebook, Transportation Research Board of the National Acad- emies, Washington, D.C., 2007.

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38 Public and Private Sector Interdependence in Freight Transportation Markets Description: The report examines the potential for use of rail freight as a way to relieve road- way traffic congestion by shifting some freight movement from trucks to railroads. It reviews the economics of truck and rail freight transportation, then reviews the literature on intermodal planning techniques, the costs of congestion, the benefit-cost assessment as applied to truck/rail studies, and the investment dynamics of public-private partnerships. The report summarizes and examines case studies of recent truck/rail studies. It concludes that it is feasible to justify public- private projects that result in moving more freight by rail, and ample methods are available for evaluating them. In the accompanying guidebook, the authors provide detailed guidelines for analysis of project feasibility and assessment of the impacts of shifting freight from truck to rail, including a listing of data sources and a description of calculation methods. Relevance: The report documents the procedures for public sector analysis of rail freight solu- tions to roadway congestion. It lays out a general structure for decision making, focusing on the development of alternatives and the assessment of effectiveness, benefit-cost, and social and eco- nomic impacts. The report represents a comprehensive examination of public sector decision making in projects that involve trade offs between investment in truck and highway capacity services and investment in rail capacity and services. Cambridge Systematics, Inc. Developing Selection Criteria for Strategic Intermodal Systems: Other States' Experiences. Technical Memorandum prepared for the Florida Department of Transportation, Tallahassee, FL, 2002. Description: In preparation for designating a statewide "strategic intermodal system," Florida DOT commissioned this review of other states' experiences in identifying a multimodal trans- portation system (that is, identifying the most economically important highways, rail lines, ports, airports, waterways, etc.) and prioritizing investments in those facilities. The paper focuses pri- marily on the experiences of Wisconsin, North Carolina, Washington, Oregon, and Ohio. Relevance: The case studies address the mandate, organization strategies, and procedures used to designate multimodal freight systems. A key outcome of these efforts has been the eleva- tion of the importance of freight transportation and freight systems in state policy and investment. Cambridge Systematics, Inc. Best Practices in Statewide Freight Planning. American Association of State Highway and Transportation Officials, Washington, D.C., Oct. 2003. Description: This guidebook discusses how the role of statewide freight planning has changed to address the freight planning requirements in federal surface transportation program legisla- tion (e.g., ISTEA, TEA-21, SAFETEA, and most recently SAFETEA-LU). The study describes common elements of freight planning programs, identifies issues and problems with current planning processes, highlights examples of best practices for effective freight planning programs, and specifies key considerations that promote successful freight planning programs. Relevance: The study and accompanying guidebook were the first of a recent series of studies documenting and recommending best practices and procedures for statewide planning. Cambridge Systematics, Inc., Economic Development Research Group, Inc., and Boston Logistics Group, Inc. Guide to Quantifying the Economic Impacts of Federal Investments in Large-Scale Freight Transportation Projects. U.S. Department of Transportation, Washington, D.C. Aug. 2006. Description: The report developed guidelines for evaluating large-scale freight projects that span the interest of multiple modal agencies (e.g., Federal Highway Administration, Federal Rail- road Administration, Federal Aviation Administration, and Federal Maritime Administration). Large-scale freight projects are capital improvement projects that focus on improving the flow and capacity of moving goods, and typically cost between $100 million and several billion dol- lars. They may involve rail, roadway, air, or marine modes of travel. They can be right-of-way

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Reference Resources 39 (or corridor) projects such as new or expanded railroad lines, truck roadway routes, tunnels, or overpasses. They can also be terminal projects such as expansion of airport freight facilities, marine port facilities, rail terminals, or intermodal truck/rail terminals. The report examines and recommends analysis steps, impact measures, and available tools for use by the U.S. DOT. The report focuses on assessment of the benefits that accrue to the chain of private and public sector parties involved in major transportation projects--carriers, shippers and receivers, logistics sup- ply chains, industries and markets, the economy, and society. The report gives particular atten- tion to the use of economic and benefit-cost analyses, providing a framework and step-by-step guidelines for the assessment of large projects. Relevance: The report documents the procedures for public sector analysis of major trans- portation investment projects. It builds on procedures and analysis techniques developed to sup- port decision making for major public works projects, especially the Interstate Highway system, but it is significant because it reflects an understanding by the Office of the Secretary that major freight projects will become increasingly important in future years. The work on this study is closely related to other U.S. DOT efforts, including initiatives to reorganize DOT capabilities to oversee very large projects and to streamline environmental planning and oversight of complex projects. Cambridge Systematics. Inc. NCHRP Report 594: Guidebook for Integrating Freight into Trans- portation Planning and Project Selection Processes. Transportation Research Board of the National Academies, Washington, D.C., 2007. Description: This guidebook recommends procedures for integrating freight planning and decision making into existing statewide and metropolitan transportation planning processes. It addresses needs identification, plan development, project programming, and project develop- ment. It discusses data needs, outlines strategies for integration of freight planning analysis with traditional planning processes, and provides a toolbox of references on methods. The accompa- nying research study provides eighteen detailed case studies demonstrating various approaches to freight planning integration from the municipal to the state level. Relevance: The guidebook and accompanying research report address the procedures for freight planning, programming, and project development within state DOTs and metropolitan planning agencies. Freight Transportation--Improvements and the Economy, U.S. Department of Transportation, Federal Highway Administration, Washington, D.C., 2004. Description: This report summarizes the results of the FHWA's work on the economic bene- fits of transportation improvements. In addition to this summary, two analytical reports are included as appendices: (1) Economic Effects of Transportation: The Freight Story and (2) Trans- portation Infrastructure, Freight Service Sector and Economic Growth: A Synopsis. Three meth- ods, macroeconomic and microeconomic research, and general equilibrium approaches have been employed to study the linkages between transportation and the economy. Each of these is described in this report. International and National Benchmarking for Urban Transportation Corridor Development, FTA-MN-26-7004, U.S. Department of Transportation, Federal Transit Administration, Wash- ington, D.C., 2003. Description: As transportation and transit corridors have become increasingly common as focal points for urban design, corridor development has emerged as one of the more interesting and complex issues in transportation planning. Issues with corridor development are always large because corridors ensure access to transportation, provide high quality transportation, help develop livable communities, and provide for economic development. These issues are exacer-

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40 Public and Private Sector Interdependence in Freight Transportation Markets bated and new ones are created when a corridor crosses jurisdictional boundaries. There is a need for a model that addresses the major issues in corridor planning and management. This report develops such a model that is based on 5 major areas of the corridor development process: gov- ernance, economic impacts, financing, design, and citizen preferences. Lessons are drawn from several case studies of corridors. The prescriptive abilities of this model are then tested through analysis of local transportation corridor improvements. The Nation's Freight Rail Challenge. American Association of Railways, Washington, D.C., 2006. Description: The study provides an overview of recent policy studies and is concerned with investments needed in the future to meet rail transportation demand. It describes where invest- ment is needed and the consequences for the economy when investments are not made. Special Report 271: Freight Capacity for the 21st Century. Transportation Research Board, National Research Council, Washington, D.C., 2003. Description: This report considers the long-term implications of trends in freight transporta- tion markets and how government policy can allow more efficient provision of freight trans- portation system capacity. The report found that capacity additions have been lagging traffic growth in a number of freight transportation areas, resulting in increasing congestion, rising costs, and deteriorating reliability. The study noted that the freight system was compensating for these pressures by adding capacity, redistributing businesses and homes to less congested regions of the country, and adjusting to the additional costs. However, it concluded that these adjust- ments, while tolerable, were far from the economic optimum. It examined transportation proj- ects as case studies of project-level decision making, finding that government evaluations of projects were often not broadly enough conceived, did not employ proper analytical techniques, and were not subjected to expert review. It also found that public agencies did not usually eval- uate or make best use of alternative funding mechanisms. The study called for a comprehensive national freight program and policy agenda that recognize that freight transportation is a joint venture of government and the private sector. It also called for adherence to four guiding principles: projects should be selected based on economic efficiency; government should become involved in freight transportation only when market-dictated outcomes would be economically inefficient; government participation should not automatically entail government investment or subsidy; and investment in freight should rely primarily on user fees and direct local government matches. Relevance: The report is most notable for its findings about the strengths and weaknesses of government decision making about freight programs and investments. It argues that the proce- dures for determining when the government should intervene or invest in freight transportation are inadequate, calling for stronger benefit-cost analysis and more careful assessment of the longer-term economic impacts of government actions. Resources for Public Sector Investment in Freight Cambridge Systematics, Inc., Mercator Advisors, LLC, and Pisarski, A. Future Highway and Pub- lic Transportation Finance Study. U.S. Chamber of Commerce, National Chamber Foundation, Washington, D.C., 2005. Description: The study examines the funding available to meet the nation's highway and tran- sit needs for the period 2006 through 2030. The study finds that current revenues provided by all levels of government--federal, state, and local--are not sufficient to maintain the condition and performance of the nation's highway and transit systems or to improve the condition and per- formance of these systems to levels that best serve the nation's economy. The study recommends that the federal government take action immediately to narrow the revenue gap and prevent the

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Reference Resources 41 Highway Trust Fund from going into deficit in 2009. Indexing federal motor fuel taxes is recom- mended as having the most immediate and substantial impact. For the longer term, the study rec- ommends that states and local areas implement two mileage-based transportation revenue systems: a state vehicle-miles of travel (VMT) fee charged to all users as a supplement to and per- haps eventual replacement for state motor fuel taxes; and a local-option VMT fee implemented at state and local discretion to address urban congestion and local transit needs. Relevance: The study is one of several major studies examining the funding available for trans- portation improvements, including freight system improvements. The findings of this study and similar reviews by the Hudson Institute, AASHTO, and TRB point to the need for greater federal revenue and investment, but also underscore the importance facilitating and leveraging private sector investment in freight systems. The findings emphasize the growing importance of under- standing the objectives, procedures, and criteria used by the public and private sectors in decision making about freight investments. Cambridge Systematics, Inc. Financing Freight Improvements. U.S. Department of Transportation, Federal Highway Administration, Washington, D.C. 2007. Description: The report is a guidebook for FHWA, states, metropolitan planning organizations (MPOs), and others involved in the identification of freight needs, developing financing plans to fund projects designed to address these needs, and involved in the actual delivery of projects. The report describes the palette of existing federal funding programs and financing tools for freight projects and provides two dozen detailed case studies of freight projects that have been funded by the public sector alone or jointly with private sector partners. Relevance: The report documents the diverse and expanding number of approaches to public and public-private financing of freight projects. It does not describe the public sector decision making behind the case studies, but illustrates the range and complexity of freight projects to which decision-making guidelines and tools must be applied. Institute of Transportation Studies and ICF Consulting. Metropolitan-Level Transportation Fund- ing Sources. American Association of State Highway and Transportation Officials, Washington, D.C., Dec. 2005. Description: This report documents current funding techniques and funding allocation meth- ods used by metropolitan planning organizations (MPOs) and local governments. Historically, regional transportation projects have relied heavily on federal- and state-level funding and financ- ing mechanisms. The report examines using local-option sales taxes and other mechanisms to fund projects deemed important to local economic development, including some freight projects. It provides information on MPO operating expenditures and project costs, and a summary of state and potential regional sources of revenue for MPOs. Case studies from small to large-sized MPOs highlight examples of various revenue generation techniques. Relevance: This study provides one of the few overviews of the resources available to MPOs and local government and provides insight into the issues shaping MPO decision making. Urban Land Institute. Infrastructure 2007: A Global Perspective. Washington, D.C., 2007. Description: This report summarizes the findings from four multi-disciplinary forums and parallel research on infrastructure capacity and investment trends. This paper explores the roles of public and private finance in infrastructure investment. Using global examples as a measur- ing stick, the report describes the U.S. transportation system. Freight infrastructure investment is identified as a critical need to keep the economy viable as well as combat overall congestion trends. This report targets a number of institutional improvements as well as potential funding

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42 Public and Private Sector Interdependence in Freight Transportation Markets options to assist public and private decision makers in finding solutions to current and predicted transportation investment budget shortages. Privatization is discussed at length, as well as pub- lic funding tools such as TIF, taxation, and tolls. Relevance: The report provides a broad overview of the resources for investment in freight, reviewing infrastructure investment trends and issues against which to evaluate current plan- ning and investment in freight transportation infrastructure. References Focusing on Transportation Decision Making General Information References American Transportation Research Institute. Top Industry Issues. 2004, 2005, 2006. http://www. atri-online.org/2007_top_industry_issues.pdf Over the last several years the American Trucking Associations Federation has commis- sioned ATRI to conduct a survey that identifies critical issues facing the trucking industry. The final result is a "top ten" list of the high-level issues that are most pressing within the trucking industry. Because the survey is conducted annually, results for particular issues can be tracked longitudinally to determine changes in the relative importance to industry stakeholders. American Transportation Research Institute (ATRI). Trucking 101. To be published as a TRB Circular. Trucking 101 originated in the TRB Trucking Industry Research Committee and was devel- oped primarily by ATRI. This circular will serve as a primer on trucking industry issues for those in both the public and private sector whose work has some nexus to the trucking indus- try, particularly those who are largely unfamiliar with the major operational definitions, con- straints, and considerations facing the industry. The primer will include information on the different trucking industry statistics, sector descriptions and issues, and the predominate chal- lenges facing the trucking industry. It is intended to provide a basic, high-level view of the industry. American Trucking Associations. American Trucking Trends 2005-2006. Arlington, VA, 2006. American Trucking Trends is produced by the American Trucking Associations and provides a broad range of information and high-level statistics regarding the activities of the trucking industry. This publication uses information from government-maintained datasets including the Motor Carrier Management Information System and Federal Highway Statistics, as well as data from original surveys. This publication includes industry demographics, major market seg- ments, fuel and operational costs, driver demographics, and the type and amount of taxes paid by the trucking industry. Costello, B. Trucking Economic Review, American Trucking Associations, Washington, D.C., Vol. 6(4), 2004. http://www.truckline.com The American Trucking Associations produces a quarterly newsletter that covers a variety of topics related to trucking industry operations and economics. The newsletter also covers interna- tional commerce and shipper issues that result in secondary and tertiary impacts on the trucking industry. It also includes information on truck capacity, fuel use, and other industry-specific costs. Council of Supply Chain Management Professionals, State of Logistics Report, 2007. http://cscmp. org/Resources/SOL.asp

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Reference Resources 43 This annual report published by the Council of Supply Chain Management Professionals esti- mates annual logistics expenditures across all modes, based on carrying costs, transportation spending, logistics administration, and shipper costs. Intermodal Association of North America. Intermodal Freight Transportation, 4th ed., IANA, Calverton, MD, 1999. This publication contains a broad range of information on intermodal freight transportation including technology trends, equipment, operations, containerization, and government agencies. Rodrigue, J.P., Comtois, C., Slack, B. The Geography of Transport Systems, Routledge, London and New York, 2006. The book provides an excellent overview on transportation and covers nearly all relevant issues regarding freight transportation that is of relevance in today's political climate. Freight Forecasting American Trucking Associations. U.S. Freight Transportation Forecast to 2017. Arlington, VA, 2006. U.S. Freight Transportation Forecast to 2017 is developed by Global Insight under the spon- sorship of the ATA. It uses trend analyses and other tools to forecast the performance of the trucking industry in the future. Although there is some emphasis on trucking industry issues and demand, the publication includes information on all modes. Freight Transportation Research Associates. U.S. Freight Outlook by Mode. Nashville, TN, 2004. The U.S. Freight Outlook by Mode is a quarterly report that includes data from all modes of freight movement by commodity. The data are collected on a quarterly basis and date back to 1992. The report also forecasts freight demand 7 to 10 quarters out. International Air Transport Association. Freight Forecast, Washington, D.C, 2001. http://www. iata.org/ps/publications/9266.htm IATA's report is a 5-year forecast of freight activity in the air transport sector. The report is based on an industry survey of major air transport professionals. The report includes global, regional, and country-specific forecasts. Academic Resources Adams, T., et al. Upper Midwest Freight Corridor Study--Phase II, Midwest Regional Univer- sity Transportation Center, University of Wisconsin-Madison, 2007. This publication is based on 11 white papers that were written on factors relating to freight movement and public policy throughout the Upper Midwest region of the United States. These papers provide a wide range of information on factors critical to the performance of freight trans- portation in the region. Thirteen key initiatives are identified as being necessary to respond to increased freight demand. Cambridge Systematics, Inc. NCHRP Report 388: A Guidebook for Forecasting Freight Transporta- tion Demand. Transportation Research Board, National Research Council, Washington, D.C., 1997. http://pubsindex.trb.org/document/view/default.asp?lbid=483009. NCHRP Report 388 serves as a tool to assist public sector transportation officials with freight planning. The report includes information for planners in all modes of transportation. It also includes references to other relevant resources, information on factors that impact freight

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44 Public and Private Sector Interdependence in Freight Transportation Markets demand, data sources, and information on developing surveys, case studies, and information needs for the public sector. MIT Center for Transportation and Logistics. Freight Transportation Infrastructure Survey: Causes and Solutions to the Current Capacity Crisis. Massachusetts Institute of Technology, Cambridge, MA, 2006. This survey report investigates the perception gap among freight transportation stakeholders in order to discover the root causes of congestion and the capacity crisis, the resulting effects on business and the solutions that are or should be used to assuage these impacts. Following a discussion of the findings, recommendations for short- and long-term strategies to enhance communication among stakeholders are offered. Robins, M., and Strauss-Wieder, A. Principles for a U.S. Public Freight Agenda in a Global Economy. Transportation Reform Series, The Brookings Institute, Washington, D.C., 2006. http://www.uppermidwestfreight.org/files/Brookings_freightsystems.pdf. The objective of this research is to summarize the key issues and trends affecting the nation's increasingly strained freight system, provide examples of efforts to address these strains and the land uses involved, and identify the current roles played by government agencies. Shafran, I. NCHRP Report 421: Economic Trends and Multimodal Transportation Requirements, TRB, National Research Council, Washington, D.C., 1999. This report includes an analysis of economic trends impacting the performance of the multimodal freight transportation system. In addition to these trends, it includes information on business responses to these trends. The intended audience is state transportation departments and MPOs. Special Report 271: Freight Capacity for the 21st Century. TRB, National Research Council, Wash- ington, D.C., 2003. Available at http://onlinepubs.trb.org/onlinepubs/sr/sr271.pdf. This report identifies constraints in the freight planning process that have limited the effi- ciency and productivity of the transportation system. The report suggests changes in government policies that will contribute to better planning through more rational investments that will ulti- mately improve the efficiency of freight transportation. Upper Great Plains Transportation Institute. North Dakota Strategic Freight Analysis: Regional Strategic Freight Study on Motor Carrier Issues. North Dakota State University, Fargo, ND, 2007. http://www.ugpti.org/pubs/pdf/DP184.pdf. The UGPTI report describes many of the impacts that truck size and weight regulations have on the efficiency of the transportation system. The need for states to cooperate to develop uni- form regulations is highlighted, along with the economic and system efficiency effects of mak- ing changes to truck size and weight regulations. Government Resources Federal Highway Administration. Federal Highway Cost Allocation Study. U.S. Department of Transportation, Washington, D.C., 1997. http://www.fhwa.dot.gov/policy/hcas/final/index.htm There have been many discussions about the financial equity of highway use among the dif- ferent classes of vehicles. This cost allocation study is an analysis of the costs of using the high- ways by various vehicle classes, as well as the amount of funding contributed by each vehicle class. Although this report is not specific to freight planning, it does highlight the economic responsi- bility of freight as it is transported along the nation's highways compared with other vehicle classes.

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Reference Resources 45 Federal Highway Administration. Freight Technology Story, Freight Management and Opera- tions. U.S. Department of Transportation, Washington, D.C., 2005. http://ops.fhwa.dot.gov/ freight/intermodal/index.htm. As demand for goods movement continues to increase, technology can be used to ensure that the freight system works as efficiently as possible. Technology is currently being used for asset tracking, traffic system monitoring, onboard shipment status, and facilitating non-intrusive inspections, which all contribute to a smoother flow through the freight networks. This report includes information on various technologies available to freight stakeholders and some of the benefits they help achieve for both the private and public sectors. Oregon Department of Transportation. Oregon Transportation Plan Update Background Paper: Transportation and the Economy, Salem, OR, 2004. http://www.oregon.gov/ODOT/TD/TP/ docs/otpPubs/EconPolRev.pdf Oregon DOT completed this study on how the economy is interrelated with the transporta- tion system. When the transportation system is congested, deliveries are delayed and delivery times are unreliable. The economy is additionally impacted because highway congestion corre- lates directly to increases in labor costs and decreased interest in economic development by busi- nesses. As a result, Oregon has developed a policy framework that includes linking economic development growth opportunities with major transportation planning decisions, emphasizing the importance of passenger transportation, and using a multimodal freight network. Sedor, J. Improving Freight Transportation, Public Roads. Federal Highway Administration, Vol. 69(4), 2006. http://www.tfhrc.gov/pubrds/06jan/06.htm This article summarizes findings from a survey conducted among federal, state, and local freight industry stakeholders between 2000 and 2002. The survey respondents emphasized a vari- ety of needs including better cooperation between the public and private sector during the plan- ning process, innovative financing mechanisms, and improved data. The respondents additionally cited the need to improve stakeholder knowledge of existing databases and resources, and foster- ing the development of skills among key stakeholders that would assist with forecasting and plan- ning processes. Security Issues American Association of State Highway and Transportation Officials. Transportation Security Task Force. National Needs Assessment for Ensuring Transportation Infrastructure Security, AASHTO, Washington, D.C., 2002. This study focuses on traffic system security to prevent terrorist attacks. It identifies three key security planning program areas: (1) protecting critical mobility assets, (2) enhancing traffic management capabilities, and (3) improving state DOT emergency response capabilities. National Transportation Safety Board. Most Wanted List: Transportation Safety Improvements 2009, Washington, D.C., 2008. www.ntsb.gov/Recs/brochures/MostWanted_2009.pdf This brochure deals with safety issues in all transportation modes. Other References Abouchar, A. Transportation Economics and Public Policies: With Urban Extensions. John Wiley & Sons, New York, NY, 1977. This book provides the economic and political calculus as well as background knowledge for the public and private sector for decision making in transportation economics and points out the differences.

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46 Public and Private Sector Interdependence in Freight Transportation Markets Banister, D. Chapter 5: Contemporary Transport Policy. In Transport Planning (Transport, Development and Sustainability), 2nd ed.., Spoon Press, New York, NY, 2002. The chapter concerns the recent policy debates on the environment and sustainable develop- ment as well as the implications that regulations have for transport in the United Kingdom. The chapter contains several tables that present a clear overview of different policy measures. Golob, T., and Regan, A.C. Impacts of Highway Congestion on Freight Operations: Perceptions of Trucking Industry Managers. Transportation Research, Part A--Policy and Practice, Vol. 35, Issue 7, Aug. 2001, pp. 577-599. The article investigates the congestion at ports in the states and describes when congestion is likely to occur. It then provides samples of different ports in California and concludes that con- gestion and waiting times could be lowered if intermodal operations increased private-public collaboration, which in turn would create more sustainable growth. Haynes, K.E., Gifford, J.L., and Pelletierre, D. Sustainable Transportation Institutions and Regional Evolution: Global and Local Perspectives. Journal of Transport Geography, Vol. 13, Issue 3, Sept. 2005, pp. 207-221. This article is concerned with the gap between sustainable transport policy and the implemen- tation problems when the traditional patterns of political organizations are not reasonable. It evaluates the problems different organizations face and describes the European regional, the NAFTA regional, and the Mercosur regional experience as examples of harmonization and deregulation. Holguin-Veras, J, and Lopez-Genao, Y. Truck Trip Generation at Container Terminals: Results from a Nationwide Survey. In Transportation Research Record: Journal of the Transportation Research Board, No. 1790, Transportation Research Board of the National Academies, Washing- ton, D.C., 2002 Research conducted on truck-trip generation at marine container terminals based on a nationwide survey that gathered data from 21 container terminals in the United States. The analyses of both trip-generation rates and the regression models indicate that there are statisti- cally significant differences in the regional patterns of trip generation. MDS Transmodal Ltd. Great Britain Freight Model (GBFM) Methodology. Chester, UK, 2004. http://www.mdst.co.uk/gbfm_doc_d10.pdf The GBFM forms part of the DfT National Transport Model and has been applied within the DfT's Ten-Year-Plan, the Rail Authority's Freight Strategy, and a number of other studies. This paper documents the project as well as the multimodal model. Regan, A.C., and Golob, J.M., Trucking Industry Demand for Urban Shared Use Freight Termi- nals. Transportation: Planning, Policy, Research, Practice, Vol. 32, No.1, 2005, pp. 23-36. The article suggests the need for public-private partnership and examines the intermodality of freight and the enhanced efficiency of urban shared freight terminals. While inter-urban freight movements were becoming increasingly efficient, there were significant diseconomies in the movement of freight via truck within urban areas. In the past few years, the concept of "Urban Ports" to provide a place near the urban center for truckers to wait out peak traffic periods has gained increasing attention. This article examines trucking company interest in such facilities. Review of Research on Freight Transport and Logistics (Alan McKinnon ed.). Federal Transit Administration, U.S. Department of Transportation, Washington, D.C., 2004. This is a collection of papers covering a broad variety of freight transportation issues: Supply chain management; benchmarking and best practice; energy efficiency; environment; traffic

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Reference Resources 47 growth and congestion; safety issues and traffic accidents; transport infrastructure; city logistics; regulatory policy and taxation; rail freight; shipping, ports, and ferries; information technology and communication; outsourcing/third party logistics; air freight; regional development issues; vehicle design and technology; and employment and training. Robinson, R., 2002, Integrated and Intermodal Freight Systems: A Conceptual Framework. IAME Conference, Panama, 2002. This work introduces a fully integrated, value-driven freight model and determines how firms can create superior value by involving different sets of low cost activities. It explains port-oriented value-driven chains, supports graphics and argues for economies of scale. It discusses market and policy settings. It concludes that value is a function of the degree of integration of business processes. Tavasszy, L.A. Freight Modelling--An Overview of International Experiences. Presented at the TRB Conference on Freight Demand Modelling: Tools for Public Sector Decision Making, Washington, D.C., September 25-27, 2006. This paper provides key policy issues for the European market and a summary of international experience in 3 different areas of innovation (see pages 5 to 9), that is, freight economics, logis- tic behavior, freight trips, and networks. Policy issues and modeling needs are presented in a table. The paper summarizes the international state of the art in freight modeling, with a focus on developments in Europe. Train, K., and Wilson, W.W. Shippers' Responses to Changes in Transportation Rates and Times. The Mid-American Grain Study. Report No. 04-NETS-R-02. U.S. Army Corps of Engineers, Alexandria, VA, 2004. A survey of grain shippers was conducted to obtain information about the mode and origin/ destination (O/D) of their shipments, the next-best alternative mode and O/D, as well as factors that might induce the shipper to switch to the next-best alternative. The share who would switch rises with the magnitude of the transportation rate increase, though less than proportionately. While many shippers are bound to respond to fairly small changes in rates or transit times, a large share of shippers are found to be essentially insensitive to large changes in rates and times. Transportation Research E-Circular E-C088: Economic Geography of Food Distribution in the United States. Transportation Research Board of the National Academies, Washington, D.C., 2006. Information resulting from the Commodity Flow Survey (CFS) provides a cornerstone for existing freight planning activities. As a national survey with limited resources, the CFS has been pushed to its limits by stakeholders attempting to meet their national, regional, state, and to some extent, local freight planning needs. This conference was designed to engage these stake- holders in a dialogue to understand the survey better, see how other data sources are being used to supplement it, and explore ideas to improve its future iterations. TR News, No. 221, Inland Waterways--Opening the Channels, Transportation Research Board, National Research Council, Washington, D.C., JulyAugust 2002. This issue highlights the importance of inland waterways and illustrates the history of the Erie Channel and all related activities regarding the development of the Erie Channel. Furthermore, it contains some more examples like the Ohio and the Lower Mississippi River in the United States and the Rhine River in Europe. Tsamboulas D., and Kapros, S. Decision-Making Process in Intermodal Transportation. Trans- portation Research Record: Journal of the Transportation Research Board, No. 1707. TRB, National Research Council, Washington, D.C., 2000.

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48 Public and Private Sector Interdependence in Freight Transportation Markets A methodological framework with models is provided that correlates behavioral and percep- tual issues related to the use of intermodal transportation. Three decision patterns and their respective actor groups' profiles are identified. The first group consists of actors who decide almost exclusively according to the cost criterion; these actors are intensive users of intermodal transportation. The second group's actors decide according to both quality and cost criteria, using less intermodal transportation. The third group's actors are influenced in their decisions by specific logistics needs. The application of the model defines the extent to which changes in the values of relevant variables may shift a decision toward the use of intermodal transportation. Wilson, G.W. The Relative Importance of Regulation of Transportation vis-a-vis Everything Else. In Economic Regulation: Essays in Honor of James R. Nelson (Kenneth D. Boyer, and William G. Shepherd, eds.). Institute of Public Utilities, Division of Research, Graduate School of Business Administration, Michigan State University, East Lansing, 1981. This essay is in a collection of essays on freight transportation issues.