Freight, MAP-21, and the States

1. Freight, MAP-21, and the States July 31, 2013AASHTO/FHWA Freight Partnerships V Conference Sean T. Connaughton Secretary of Transportation

2. Presentation Overview • Importance of freight as a national conversation, and why this meeting is important • Thoughts on MAP-21: what does it mean to the states? • Virginia’s Multimodal Freight Plan and Statewide Transportation Planning • Strategies to institutionalize freight within a DOT

3. A National Conversation About Freight • Why is freight important to talk about? • Strong relationship between freight and economic development: freight brings jobs • Freight is dynamic—ever changing trade patterns • Requires collaboration across boundaries • What is different about freight? • Multi-state and national dimensions • Freight is interstate commerce • Freight demand is growing faster than personal travel demand and trend will likely continue • Truck VMT increased by 17% from 98’ to 08’ versus 13% for autos

4. Trends affecting freight • Population growth drives freight demand • US population may grow from 320 Million in 2012 to 420 Million in 2060 • 31% population growth will drive domestic and international trade with U.S. • Strong growth in domestic energy • Sustained demand for U.S. agricultural exports • Changing nature of manufacturing (e.g. some “reshoring”) • World population may grow from 7 Billion in 2012 to 10 Billion in 2060 • 42% population growth will continue to fuel global trade • Higher living standards—more consumers in the middle class in developing countries • Global supply chains crossing continents • How will our transportation system respond to these key trends?

5. Implications of key trends on freight transportation • Demand outpaces supply • GDP and freight transportation demand growing faster than transportation capacity • Urban congestion worsens • Corridor congestion becomes more widespread • Transportation / logistics costs increase

6. U.S. Tonnage Growth by Mode 2010 to 2030 • Truck Rail Water Air Multimodal Pipeline • 29% All Modes 161% 50% 31% 28% 24% 18% Carload SOURCE: FAF3

7. Implications of key trends on freight transportation • Transportation agencies can react by • Improving system productivity (operations, policies) • Strategic capacity improvements • Coordinated freight and land use planning • Improving investment and policy decision making • Supported by freight data analysis, modeling, stakeholder outreach • Ongoing freight outreach

8. What is MAP-21 and what does it mean for State DOTs? • Moving Ahead for Progress in the 21st Century Act • Federal funding and authorization bill to govern United States federal surface transportation spending • Passed by Congress on June 29, 2012, signed into law on July 6 • Calls for a focus on freight movement and economic vitality • Encourages States to develop freight plans and advisory committee(s) • Identify and improve the national freight network • Strengthen the ability of rural communities to access markets • Support regional economic development

9. Overview of Key MAP-21 Freight Provisions • States may receive a higher Federal match • Up to 95% on Interstate Highway • Up to 90% for other projects • To be eligible, US DOT must certify the project: • Enhances the efficient movement of freight, including making progress toward meeting performance targets for freight movement • Is identified in a state freight plan • Multiple programs for funding truck parking • Larger TIFIA program • $1B in FY14 vs. $122M in FY11 • Funding for freight Projects of National and Regional Significance (PNRS) • $500 million authorized

10. Overview of Key MAP-21 Freight Provisions • Develop a state Freight Plan • Establish an Advisory Committee with roles • Establish and implement freight performance metrics • Designate the Primary Freight Network (PFN) • Up to 27,000 centerline miles • comprised of the most freight-critical roadways • Points out critical rural freight corridors, to be designated by States • Link to National Freight Strategic Plan

11. State Freight Planning Checklist: MAP-21 Requirements vs. Federal Interim Guidance

12. Starting from Scratch - Freight Plan Framework

13. Updating Existing Plans - Freight Plan Framework • Link to national goals • Develop freight performance measures • Refresh freight data and trends • Especially post-recession • Refresh freight projects and policies • Include technology and operational improvements • Establish/confirm consensus from key public and private sector stakeholders

14. Virginia’s MAP-21 Freight Plan Efforts • As part of its ongoing freight planning program, the Commonwealth has focused on and began to develop an updated freight planning document that builds on the freight study, while meeting the new Federal guidance on state freight plans. • The Virginia Multimodal Freight Plan is designed to articulate the Commonwealth’s most recent transportation priorities, policies, and goals for the significance of national, statewide, regional and local goods movement.

15. Establish Virginia’s Freight Advisory and Technical Committees-MAP-21 • Public sector stakeholders • State DOT • Local governments • Private sector stakeholders • Carriers • Shippers • Ports • Freight industry workforce • Freight associations

16. Establish Virginia’s Freight Advisory and Technical Committees-MAP-21 • Virginia Freight Transportation Advisory Committee (VFTAC) • Serves as the executive level committee for the development of strategic and policy oriented recommendations for the Virginia Multimodal Freight Plan. Members consists of High-level private and public representatives are comprised of a small group of senior executives from some of Virginia’s largest employers such as; Smithfield Foods, Owens & Minor & Norfolk Southern • Virginia Freight Transportation Technical Committee (VFTTC) • Serves as the larger technical committee for the development of the Virginia Multimodal Freight Plan. This group, meets more frequent than VFTAC and consists of a mix of ≈ 30 private and public technical experts that provide guidance on freight movement and the identification of strategies.

17. Roles of Virginia Freight Advisory and Technical Committees- MAP-21 • Advise state on freight-related priorities, issues, projects, and funding needs • Serve as a forum for state transportation decisions impacting freight mobility • Communicate and coordinate regional priorities with other organizations • Promote information sharing between the public and private sectors on freight issues • Participate in the development of the state freight plan

18. Virginia’s MAP-21 Freight Efforts • Multimodal Freight Plan • Draws from 2011 Freight Study • Updates goals and strategies • Classifies multimodal freight corridors • Serves as a foundation for future planning and programming efforts • Includes the anticipated MAP-21 regulatory structure to help guide the DOT and other transportation agencies after Secretarial leadership change. • Set to be completed October 2013

19. Virginia Freight Planning: Recent History and Context Federal Legislation MAP-21 TEA 21 . . . .? SAFETEA-LU Recent Virginia Freight Planning Phase 2 Phase 1 Statewide Multimodal Freight Study Multimodal Freight Plan Freight Study Update VTrans VTrans 2040 (Future) VTrans 2025 VTrans 2035 VTrans 2035 Update We are here 2013 2000 2005 2010 2015

20. Institutionalizing Freight within VDOT • Virginia’s Multimodal Freight Plan is transitional because it combines elements of the previous work of the Multimodal Freight Study with current freight planning and policy activities to produce a plan that meets new Federal recommendations under MAP-21. • The Freight Plan fulfills several important functions for the Commonwealth, including: • Essential policy standpoints and recommendations for freight which reflect freight stakeholder input and the VTrans performance based planning process; • Meet MAP-21 standards for state freight plans; • Providing Agency level recommendations , strategies and projects types to achieve the goals of MAP-21; and • Secretary formed the Virginia Freight Transportation Advisory Committee (VFTAC) and the Virginia Freight Transportation Technical Committee (VFTTC) .

21. Strategies to Institutionalize Freight within a DOT • Develop a freight plan that has broad consensus within the State • Link technical freight study analyses with long range planning goals • Create consistency of freight performance metrics with national goals and statewide goals • Conduct additional studies to implement freight planning effort • Long range plans, corridor studies, sub-area studies, safety plans, economic development studies, etc. • Create a culture of freight within the DOT • Educate staff on how their work affects goods movement • Formalize freight responsibilities and dedicated staff • Cultivate freight networks with other state agencies and private sector

22. Strategies to Institutionalize Freight within a DOT • Encourage Regional Stakeholders/MPOs to: • Participate in statewide freight plan efforts • Assist in quantifying truck parking deficiencies • Develop regional consensus on a short-list of critical freight mega-projects • Develop a regional truck route network • Think intra-regionally and inter-regionally • Work with nearby MPOs to identify common elements

23. Thank you