National Academies Press: OpenBook

Guidebook for Understanding Urban Goods Movement (2012)

Chapter: Chapter 1 - Introduction and Purpose

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Suggested Citation:"Chapter 1 - Introduction and Purpose." National Academies of Sciences, Engineering, and Medicine. 2012. Guidebook for Understanding Urban Goods Movement. Washington, DC: The National Academies Press. doi: 10.17226/14648.
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Suggested Citation:"Chapter 1 - Introduction and Purpose." National Academies of Sciences, Engineering, and Medicine. 2012. Guidebook for Understanding Urban Goods Movement. Washington, DC: The National Academies Press. doi: 10.17226/14648.
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Page 3
Suggested Citation:"Chapter 1 - Introduction and Purpose." National Academies of Sciences, Engineering, and Medicine. 2012. Guidebook for Understanding Urban Goods Movement. Washington, DC: The National Academies Press. doi: 10.17226/14648.
×
Page 3
Page 4
Suggested Citation:"Chapter 1 - Introduction and Purpose." National Academies of Sciences, Engineering, and Medicine. 2012. Guidebook for Understanding Urban Goods Movement. Washington, DC: The National Academies Press. doi: 10.17226/14648.
×
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Suggested Citation:"Chapter 1 - Introduction and Purpose." National Academies of Sciences, Engineering, and Medicine. 2012. Guidebook for Understanding Urban Goods Movement. Washington, DC: The National Academies Press. doi: 10.17226/14648.
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Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Most of us have been in a bakery. We remember the wonderful aroma, perusing display shelves full of goods, our attention drawn to making selections for an upcoming meal, and min- gling with other patrons doing the same. Depending on how observant we are, we might notice wheeled carts stacked with trays of fresh product emerging from the kitchen behind the store. Aside from the carts, the aroma, and the warmth of the ovens, there are few signs of the intense activity back in the kitchen where the production of goods on display has been underway since early morning. Anyone who bakes at home knows the work required to obtain ingredients and assemble recipes, while tending to the oven and cleaning up the mess. However, in the bakery storefront these activities become invisible. The baker’s labors make it possible for modern con- sumers to concern themselves with other things, like the vital matter of acquiring nourishment (delicious no less). In today’s economy, the baker’s concerns about having the necessary ingredients readily at hand are likely to be addressed by a bakery supply company. Like any efficient company in the modern economy, the baker uses very little space for inventory or long-term storage of ingredients. With the high price of urban real estate, retailers and other shop owners use their most valuable square footage to sell products. To support the wide variety of product selection and quality freshness con- sumers demand, bakeries and other retailers in urban settings receive deliveries from warehouses at least several times a week and, in many cases, every day of the year. Most modern American households get their food and other supplies through retail grocery stores. One of America’s top grocery chains interviewed for this research indicated that their fleet of trucks makes over 40,000 deliveries each week. They provided the following estimate for how many days’ worth of product they keep on store shelves: • Produce and frozen foods (e.g., meat and fish): 1 to 3 days • Eggs and dairy: 2 days • Dry goods: up to 7 days For an urban grocer, if deliveries are disrupted, fresh and frozen food products will be gone in 1 to 3 days, eggs and milk in 2 days, and store shelves would be empty in a week. City residents who have endured a hurricane or blizzard know that a run on supplies can empty the shelves even faster, sending prices through the roof. In everyday life, we simply stop by the store and get what we need, affordably. The simplicity of shopping we enjoy masks the reality that an elabo- rate 24/7 system of supply sustains it—in the same way that a bakery is sustained by the work back in the kitchen and its supply chain. The success of the system creates the illusion of effort- lessness; residents can ignore the mechanics, but they depend on the results. As cities become increasingly dense, congested, and complex—those who make decisions about development, land use, and commercial transport regulation need to understand and support the 1 C H A P T E R 1 Introduction and Purpose What Is a Supply Chain? A supply chain is a group of human and physical entities including procure- ment specialists, wholesalers, logis- tics managers, manufacturing plants, distribution centers, and retail outlets, linked by information and transportation in a seamless,inte- grated network to supply goods or services from the source of production through the point of consumption.

goods movement system. There is a need for local decisionmakers to understand how, for exam- ple, the links of a bakery supply chain affect the certainty citizens enjoy, that when they stop by the bakery on their way home, they will find the perfect loaf of bread for that upcoming meal. The research results, supply chain, and best practice case studies presented in this guidebook are intended to raise the level of understanding so that decisions made by urban governments sup- port both the needs of freight service providers and the quality of life their citizens expect. The sections on regulations affecting urban goods movement and putting it all together are intended to provide insights and direction on what local decisionmakers can do to improve access and mobility in urban settings. More than four out of five people in the United States live and work in urban areas (U.S. Cen- sus 2009). The Commodity Flow Survey (CFS), the primary source of national- and state-level data on domestic freight shipments by American establishments, finds that 65 percent of Amer- ican goods originate or terminate in major urban areas, indicating that the purpose of most trips is somehow created or satisfied in cities (USDOT RITA, BTS). Cities are metropolitan statistical areas (MSAs) and combined statistical areas (CSAs). Originations and terminations include gate- way traffic. Intercity distances are long, suggesting that the freight miles traveled between urban areas are more than the freight miles traveled within them. However, according to the IHS Global Insight Transearch® freight database, most (55 percent) 2008 U.S. empty truck miles occurred in MSAs. The proportional value of goods originating or terminating in metropolitan areas is even higher—81 percent according to the CFS—underscoring the key link between freight flows and urban economies. Various studies have reinforced the economic contribution of freight activity to urban areas. In Atlanta, the transportation and logistics cluster is the fifth largest in the nation, the second fastest growing, and a principal pillar of competitiveness in the regional economy (Porter et al. 2002). In Chicago, the rail-freight industry sector accounts for entire per- centage points of the metropolitan economic product, and ports frequently justify their existence based on economic impacts to regional economies. Cities that are not big freight generators or shipping hubs may attribute less importance to freight activity, but nationwide logistics accounts for between 9 and 10 percent of gross domestic product (GDP) in normal conditions, making it an activity that should always be worthy of attention (Wilson 2010). Even so, statistics and num- bers can understate the importance of goods movement in our lives, because the freight system does two related but distinct things: (1) it enables economic activity of the sort often reported in statistics and (2) it delivers supplies to the citizenry that support their existence. It is the latter aspect that is taken for granted so easily, whose inefficiencies are swallowed as part of the high cost of city living, and whose disruptions become matters of urgency in just days. The efficient movements of goods in urban areas occupy a crucial position in the functioning of cities, and are an appropriate concern for the public agencies that manage them. This guide- book is designed to help public agencies address such responsibilities. For the purposes of this guidebook, the terms “freight” and “goods movement” are used inter- changeably. At times there have been attempts to distinguish between the different freight needs of “goods” (property, merchandise, or wares being transported) and the freight needs of “ser- vices” (transportation of materials supplying service industries like construction, or activities associated with services like waste management, utilities, and healthcare). This guidebook touches briefly on distinctions between goods and services, but in general the term freight should be interpreted as meaning the transportation of both goods and services. It is worth recognizing at the outset of this discussion that “goods movement” in a metropol- itan context is likely to mean very different things to different members of society that make up the urban fabric, as follows: • To a business, metropolitan regions are highly concentrated production/consumption envi- ronments. Consumer demands for goods and services are transmitted to facilities that source, 2 Guidebook for Understanding Urban Goods Movement In today’s global economy, virtually anything anyone consumes comes whole, or in part, from somewhere else. To make this possible, U.S. com- panies collectively spend a trillion dollars a year on freight logistics; nearly 10 percent of the nation’s GDP, or nearly 10 cents for every dollar, in the economy. —20th Annual State of Logistics Report, pre- pared by Rosalyn Wilson of Delcan for Council of Supply Chain Manage- ment Professionals and presented at the National Press Club, July 17, 2009.

supply, and distribute the products and services customers want. Seamlessly integrated trans- actions are the essence of modern supply chains. Businesses expect urban transportation sys- tems to work well with limited engagement on their part. • To urban transportation planners, freight represents just a small portion of the traffic volume they must accommodate in network planning. Nonetheless, commercial truck traffic often exhibits disproportionate social costs and divergent trip patterns. • To a carrier or freight service provider (e.g., trucking firm, railroad, package courier, munic- ipal waste hauler, etc.) the metropolitan region is a highly competitive market. Trucks are the most prominent carriers of goods moving within the urban environment. Trucking company success and profitability is dependent upon performance and productivity, using facilities infrequently designed for the operating requirements of modern trucking equipment. • To community planners, urban goods movement is higher maintenance costs, specialized enforcement requirements, noise, and airborne emissions. The real and social costs related to goods movement are often imposed by activities and companies outside the community plan- ners’ jurisdiction, moving in vehicles whose content and purpose are probably obscure, and whose function seems outside the residentially oriented priorities that consume their attention. • To private developers and landlords, accommodating the movement of goods is often an after- thought, and, whenever possible, a cost that should be borne by others. • To elected officials, freight is one element of an essential public service that often collides with other public transportation services that voting citizens support. It is often said that “freight doesn’t vote.” Politically, freight interests gained clout in some locations, and at some levels, but organized freight interests remain a rarity at the local level. • To urban citizens, freight is an impediment to a faster, safer commute home, and is character- ized by noisy, dusty activity centers that diminish the urban experience and release harmful emissions that raise health risks. Goods moving in and through the urban environment are car- ried by menacing vehicles competing for lane space and impose long waits at railroad grade crossings. In short, citizens view freight operations as a nuisance and a threat to their health. To citizens, the quality-of-life benefits from moving goods efficiently and reliably are largely invisible. As these perspectives make plain, views regarding urban goods movement are highly diver- gent and largely negative. This guidebook is intended to improve the understanding of goods movement, strengthen its value in public planning, and improve its perception among public decisionmakers. This guidebook discusses methods for integrating freight issues into metropol- itan planning and regulatory processes and describes techniques and tools that are of practical use to local decisionmakers. Why Read the Guidebook According to USDOT, both population and the freight needs of that population will continue growing in the future. The annual tons of freight moving per capita are expected to increase from 55 tons in 2010 to 70 tons in 2040—an increase of 27 percent. The American Association of State Highway and Transportation Officials (AASHTO) forecasts that for every two trucks on the road today, by 2030 there will be an additional truck to carry the expected growth in food, consumer goods, and manufacturing equipment. Although freight logistics is a key component of the economy today, like the baker labors at the back of the store—it is largely invisible to citizens and the people they elect. Previous research has noted the need for building public awareness about the key role that freight plays in every- day lives, and working together and organizing to craft solutions (Strauss-Wieder 2003). The guidebook is intended to help public policymakers understand the reasons for raising public Introduction and Purpose 3 Just as perceptions of goods move- ment differ among various stakehold- ers, the term freight conveys different meanings to differ- ent people. In the most general sense, freight is the term applied to moving goods from one place to another, by any mode— highway, rail, ocean or air. It is also a term associated with the money paid for transport- ing goods. Within the logistics indus- try, the term freight most often refers to the long-haul com- ponent of a supply chain. The long- haul linkages of a supply chain are nominally intercity, port to transport terminal, terminal to terminal, inter- plant, plant to dis- tribution center (DC),DC to DC, port to rail inter- modal yard, or air- port to DC.

awareness, by discussing common problems and seeking common solutions for moving goods in urban environments. The primary focus of this guidebook is on planning actions that if started today, can prevent goods movement from being an overly costly, hazardous, or polluting activity in the future. Moving goods and services within dense urban environments will always convey unwanted social costs upon citizens. However, cities that have recognized the social and economic bene- fits of accommodating freight through proper land-use planning, regulation, and public edu- cation have made advancements toward reducing the negative social impacts often associated with freight. This guidebook uses case studies to illustrate “how to” steps and share the knowl- edge gained by local planners and elected officials working to integrate city logistics into their future vision. The Guidebook’s Intended Audience The primary audience for this guidebook includes local elected officials who have the author- ity to enact land-use regulations, zoning ordinances, and codes within their jurisdictions. Sec- ondary audiences for the guidebook are appointed planning commissioners and officials, as well as public- and private-sector planners and metropolitan planning organizations (MPOs) that work in urbanized areas (city and county) and advise the local elected officials who are the deci- sionmakers. Many private- and public-sector professionals define themselves as planners. The American Planning Association (APA) defines planners as individuals who work with, or for, elected and appointed officials, such as mayors and planning commissioners, to lead the plan- ning process with the goal of creating communities of lasting value. Planners help civic leaders, businesses, and citizens envision new possibilities and solutions to community problems. Most of them perform their work in one or more specialized fields such as community development, land use, transportation planning, historic preservation, and community outreach, just to name a few. Taken together, these audiences form a fairly broad group that includes public agency deci- sionmakers and officials, both elected and appointed. It is often true that elected or appointed officials, and sometimes planners, come from varied backgrounds and may not always be famil- iar with freight transportation terminology. Therefore, in developing this guidebook, care is taken to use common terminology, or provide definitions for freight industry terms. Academic instructors and researchers and private-sector stakeholders are also potential audi- ences for the guidebook. How the Guidebook Is Organized The guidebook covers • How urban supply chains function and how freight delivery services operate in urban settings, • How they connect to the urban economy-infrastructure, and land-use patterns, • The impacts of land-use codes and regulations governing metropolitan goods movement on private-sector freight service providers, • Planning strategies and methods for improving mobility and access of goods movements in urban areas, and • Case studies to illustrate application in practice. By supplying a foundation for understanding and then focusing on the local actions, codes, ordinances, regulations, policies, and management that influence freight performance, this 4 Guidebook for Understanding Urban Goods Movement Freight is defined as goods or cargo carried by a com- mercial means of transportation or, the ordinary method or class of commercial trans- portation for goods, slower and cheaper than express.

guidebook aims to accommodate and expedite the growing demand for urban goods movement while mitigating its environmental impact and community consequences. The guidebook has the following seven sections: 1. Introduction and Purpose, 2. Background: The Importance of Goods Movement in the Urban Environment, 3. Moving Urban Goods: It’s All about Supply Chains, 4. Using Freight Data for Planning, 5. Regulations Impacting Urban Goods Movement, 6. Putting It All Together: A Process for Evaluating and Addressing the Impacts, 7. Case Studies. A resource CD-ROM accompanies this guidebook. It contains • PowerPoint presentation (approximately 10 minutes) with speaker notes for use in educating decisionmakers about urban goods movements; • PowerPoint presentation with speaker notes for use by planning staff to conduct up to a 4-hour workshop on the content of this guidebook; • PDFs of TRB and FHWA presentations on urban goods movements; • A literature review including an annotated bibliography, searchable database, and articles on urban goods movements; • PDFs of the urban supply chain drawings; • Information on freight data; • An extensive freight glossary and list of acronyms; and • Sample brochures on freight supply chains produced by the Coalition for America’s Gateways and Trade Corridors (CAGTC). An eight-page, color overview accompanies this guidebook and is on the CD-ROM. It is intended as a quick and easy read to capture the attention of local elected officials, decisionmak- ers, and potential guidebook users. Introduction and Purpose 5

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TRB’s National Cooperative Freight Research Program (NCFRP) Report 14: Guidebook for Understanding Urban Goods Movement is designed to help facilitate decisions that accommodate and expedite urban goods movement while minimizing the environmental impact and community consequences of goods movement.

The guidebook and cases studies are designed to help decision makers better understand the potential impacts of their urban goods movement decisions on transportation infrastructure and operations; land use and site design; and laws, regulations, and ordinances applicable to urban areas.

The guidebook includes case studies that explore how urban supply chains connect to the urban economy, infrastructure, and land use patterns; their impacts on land use codes and regulations governing metropolitan goods movement of private-sector freight providers; and planning strategies for potentially improving mobility and access for goods movements in urban areas.

The print version of the NCFRP Report 14 includes a CD-ROM that includes a report and appendices on the process that developed the guidebook, and two PowerPoint presentations with speaker notes that transportation planners may use to help explain how local decision makers might enhance mobility and access for goods movement in their area.

The CD-ROM is also available for download as an ISO image. Links to the ISO image and instructions for burning a CD-ROM from an ISO image are provided below.

Help on Burning an .ISO CD-ROM Image

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An article on NCFRP Report 14 was published in the January-February 2013 version of the TR News.

CD-ROM Disclaimer - This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences or the Transportation Research Board (collectively “TRB”) be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.

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