Technology and the National Freight Action Agenda

1. Technology and the National Freight Action Agenda Richard M. Biter Deputy Director US DOT, Office of Intermodalism November 17, 2004 U.S. Department of Transportation

2. A call to action “The U.S. transportation system annually carries more than 15 billion tons of freight – valued at over nine trillion dollars. And, as the economy takes off, we project freight volume will increase by 50 percent in the next 20 years. So we are preparing now – through the Bush Administration’s comprehensive Freight Action Plan.” – Norman Y. Mineta, March 10, 2004

3. Overview of presentation • Freight and the U.S. economy • Challenges to the transportation system • The role of U.S. DOT • A National Freight Action Agenda • U.S. DOT high-priority freight initiatives • Conclusion….

4. Freight and the U.S. economy • For over 200 years, the United States economy has grown and prospered thanks to a robust, reliable freight transportation network. • Investments in transportation infrastructure and deregulation of the trucking, railroad, and airline industries have helped boost efficiency, while improving route structures to better suit business needs. • However; unless fundamental changes are made in the way we plan, fund, and build/maintain transportation infrastructure; nothing less than our future national economic well being is at stake.

5. Benefits due to improved freight logistics Improvements in the freight industry have yielded substantial benefits. Over the period from 1980-2000: • Total freight logistics costs dropped from 16.1% of U.S. gross domestic product (GDP) to about 10% • On average, American households have saved $1,000 annually due to reductions in freight logistics costs* *Journal of Commerce estimate

6. Challenges to the transportation system Despite these improvements, the U.S. transportation system is facing challenges that, unless addressed, may jeopardize its reliability: • Growing congestion • Increasing economic globalization • Significant numbers of highway fatalities • Security concerns

7. Future Challenges - 3 I’s • Information Technology - leverage technology to optimize system performance • ITS – full deployment across the region, with links throughout the supply chain • Linkage with border crossings, air, and marine ports of entry - national security, trade processing, credentialing • Data needs - develop real-time operations information system - technology as enabler

8. Responding to Challenges • Safety is a top priority of the Administration. In 2002, nearly 43,000 people were killed and over three million people were injured on our nation’s highways. About 11% of all highway fatalities involved large trucks. • Global connectivity is emerging as a critical need in transportation. Increasingly, globalization of the American economy is putting pressure on the capacity of the nation’s ports and borders. • Security has emerged as a major concern since the tragedy of September 11, 2001. Despite subsequent progress on security measures, the extensive and readily accessible U.S. freight transportation network remains vulnerable to terrorism.

9. The role of U.S. DOT At the United States Department of Transportation (U.S. DOT), our job is to provide the safe, secure, and efficient infrastructure needed to support the U.S. economy. Toward that end, we are working hard to develop safer, simpler, and smarter transportation solutions.

10. A National Freight Action Agenda U.S. DOT has developed a National Freight Action Agenda to help guide us, our partners, and our stakeholders in our efforts to make the nation’s transportation system better serve its citizens. The Action Agenda includes several recommendations, including: • Developing better freight data and tools • Building freight professional capacity • Improving intermodal freight research and technology, and • Facilitating nationally significant freight projects

11. U.S. DOT high-priority freight initiatives Within the Freight Action Agenda, DOT has identified six high priority freight initiatives: • Facilitate the development and planning of major freight projects • Promote intelligent transportation technologies to improve freight transportation • Improve intermodal connectivity by improving the coordination of planning and financing across DOT programs • Enhance DOT’s freight professional capacity building program • Improve the timeliness and quality of freight data • Accelerate development of short sea shipping

12. Using new technology to meet freight needs The Freight Action Agenda promotes new intelligent transportation technologies to improve freight transportation: • Promoting standardized communications via the 5.9 GHz radio frequency, newly-designated for transportation use • Promoting Intelligent Railroad Systems, including positive train control • Evaluating a Universal Electronic Freight Manifest that could satisfy logistical, decision-support, and international trade and security data needs

13. Improving freight data timeliness & quality The Freight Action Agenda includes multiple initiatives to improve the timeliness and quality of freight data: • Enhancing the Freight Analysis Framework (FAF), which provides basic information on the current and future movement of U.S. commodities by truck, rail, and water throughout the United States • Creating a National Freight Data Program to fill critical gaps in freight data and improve the quality of and linkages between existing freight databases

14. The Intermodal Freight Technology Working Group (IFTWG) • Purpose: The IFTWG is a consortium of public agencies and private sector firms that share the common goal of enhancing the efficiency and cost-effectiveness of the U.S. intermodal freight transportation network. • Objective: To develop a process to harmonize freight information technology in order to advance and improve the United States' global economic competitiveness and its ability to meet security and other important domestic needs.

15. Cargo Handling Cooperative Program (CHCP) • Primary goal: To increase the productivity and customer service of marine freight transportation companies through cargo handling research and development. • Focus: To develop an enhanced, integrated transportation system for the movement of international and domestic freight based on advanced technologies in: > infrastructure design, > seamless international transportation networks, and > more efficient communication and information flow • Organized as a cooperative partnership

16. Operation Safe Commerce • $58 million program to improve cargo security and reduce the risk of congestion at U.S. borders and seaports by developing dependable arrangements for securing cargo containers, and monitoring and sharing information about cargo across the supply chain • Currently testing technology solution sets on over 20 international supply chains

17. Conclusion • Other than the stoplight, most technology advances in the past century in highway infrastructure have been in road building materials and techniques • We can’t build our way out of today’s congestion…let alone tomorrow’s challenges • The key is to make better use of our existing infrastructure across ALL modes • Technology that integrates smart vehicles, smart infrastructure, and “visible” transportees (people and freight) is the key for success

18. Bureau of Transportation Statistics (BTS)202-366-1270 http://www.bts.gov Federal Aviation Administration (FAA) Office of Aviation Policy and Plans 202-267-3274 http://www.faa.gov Federal Highway Administration (FHWA) Office of Freight Management and Operations 202-366-9210 http://www.ops.fhwa.dot.gov/freight/index.cfm Federal Motor Carrier Safety Administration (FMCSA) 202-366-8810 http://www.fmcsa.dot.gov Federal Railroad Administration (FRA) 202-493-6400 http://www.fra.dot.gov Maritime Administration (MARAD) Office of Intermodal Development, Office of Port and Domestic Shipping 202-366-4721 http://www.marad.dot.gov Office of the Secretary of Transportation, Office of the Assistant Secretary for Transportation Policy and Intermodalism 202-366-5781 http://ostpxweb.dot.gov Saint Lawrence Seaway Development Corporation 202-366-0091 http://www.seaway.dot.gov, http://www.greatlakes-seaway.com U.S. DOT participating agencies