Talking Freight Seminar Talking Freight Seminar Freight and Economic Freight and Economic Development Development Glen Weisbrod Glen Weisbrod Economic Development Economic Development Research Group, Inc. Research Group, Inc. 2 Oliver Street, 9 2 Oliver Street, 9 th th Floor Floor Boston, MA 02109 USA Boston, MA 02109 USA www. edrgroup.com www. edrgroup.com
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Talking Freight SeminarTalking Freight Seminar Freight and Economic Freight and Economic
DevelopmentDevelopmentGlen WeisbrodGlen WeisbrodEconomic Development Economic Development Research Group, Inc.Research Group, Inc.
2 Oliver Street, 92 Oliver Street, 9thth Floor FloorBoston, MA 02109 USABoston, MA 02109 USA
www. edrgroup.comwww. edrgroup.com
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Three ThemesThree Themes1. Freight Flows: changing due to
National & Global Economic Markets.
2. Economic Development: depends on Market Access & Competitiveness.
• Higher value/weight• Higher time sensitivity• Overnight delivery • Small package delivery trucks• Air & Marine port dependence on rail & hwy• Rail & truck companies focus on long-hauls
Trends…
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Congestion Costs of Delay
Overnight Delivery Services –earlier pickup deadlines, fewer deliveries per driver
Manufacturers –overtime for handling deliveries
Concrete mixer trucks –shrink delivery area (spoilage)
Shippers, Air/Water Ports, Rail – miss delivery deadlines or pad schedules
Smaller Market Area can be served within requirements for cost and service quality
Economic Development…
Reduced Opportunity for Attracting and Growing Business …
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Example: Vancouver BC International Trade Gateway
Urban Econ Development…
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Vancouver No Build ScenarioVancouver No Build ScenarioGround Transport • Cars – increase in travel expense ($134 million/yr)• Trucks – raise shipper costs; reduce business
• congestion from 3200 daily truck trips transferring cargo from yard to yard
•Abandoned & under-utilized rail yards
Urban Econ Development…
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Chicago Scenario ImpactsChicago Scenario ImpactsScenarios (with & without reuse of abandoned rail yards)
• Base Case: existing facilities, adjust over time• Shift Intermodal to Rim: periphery of region• Rationalization: Consolidate w/upgraded infrastructure• Minimal Rail Freight in City: Intermodal moves to periphery;
loose-car business de-marketed • Bypass Chicago: Reroute trains to bypass routes
Urban Econ Development…
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NCHRP Study 8-42NCHRP Study 8-42How Can We Use Rail Freight Solutions to
Address Roadway Congestion • Converging interests of private sector transport
carriers and public planning agencies
• Reducing Congestion and Road/Rail conflicts that adversely affect business profits, public safety and economic development opportunities
• Developing Framework for Decision-making
Economic Development…
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Rural Freight LimitationsHigher Trucking Cost –due to “deadheading”Lower Availability When Needed –reliability
reduced by vehicle shortages, delays Higher Rail Cost –full line cost for rail service
to/from intermediate locations
Rural Economic Development…
Smaller Market Area can be served within requirements for cost and service qualityLower Value Added of existing products
Reduced Opportunity for Attracting and Growing Business …
NY-17, Now I-86, Southern Tier ExpresswayMountain Region of Southwest NY State, Near Pennsylvania LineArea had been economically distressed and losing jobsI-86 designation brought new freight distribution, manufacturing, and traffic-serving businesses.
FHWA Study compared it to a similar area with no new highway connections