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2014

Washington State Freight Planning & Programs


What will I talk about? • The State’s Objectives for Freight • Freight Rail Programs – Freight Grant & Loan Programs – Railcar Programs – Freight Rail Policy • Great Northern Corridor Coalition • Shortline Rail in Washington State • Planning – Freight Mobility Plan – What’s Next Date, time and initials of last edit

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Washington State Freight Planning and Programs Guided by three objectives:

Urban goods movement systems that support jobs, the economy, and clean air for all, and provide goods delivery to residents and businesses.

Washington's competitive position as a Global Gateway to the nation with intermodal freight corridors serving trade and international and interstate commerce, and the state and national Export Initiatives.

Rural economies' farm-tomarket, manufacturing and resource industry sectors.

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We have a strong freight system in Washington 78,105 Jobs $6.4 billion RDP

105,098 Jobs $6.3 billion RDP

179,463 Jobs $10.8 billion RDP 45,893 Jobs $2.5 billion RDP

892,721 Jobs $91.9 billion RDP

56,716 Jobs $3.2 billion RDP 106,841 Jobs $7.7 billion RDP

Freight Dependent Industries support 1.46 million jobs and $128.8 billion in regional domestic product statewide. 4


Freight Rail Assistance Program (grant) • Sorry, applications were due August 29 – Applications are in review now – Recommendations to Gov and Leg in early Nov • Program goals – Support new business development and economic vitality – Provide funding for capital projects to improve short-line railroad maintenance and viability • Funding – $2.75 million per biennium – Short-line Rail Study will provide policy guidance for future funding decisions Date, time and initials of last edit

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Freight Rail Investment Bank (loan) • Sorry, same timeline as the grant program • Program goals the same as the grant program, however state law forbids loans to private enterprise. • Specifics – Funding = $5 million per biennium – 10 year repayment terms, typically <1% interest

Date, time and initials of last edit

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Washington State Grain Train Program The Washington Grain Train is a financially selfsustaining freight transportation program that began operations in 1994. Currently, the state owns 100 Grain Train cars. Benefits: •

Moves Washington-grown products from farm reliably and efficiently to domestic and international markets.

Helps preserve shortline railroads by generating revenue that supports short- and long-term rail infrastructure needs.

Supports Washington State air quality improvement initiatives and reduces wear and tear on local roadways.

What’s New: •

Significant interest and demand in the program

Launching a lean initiative to evaluate the program. 7


Produce Railcar Program Description •

The Washington Produce Rail Car Pool project is a program created in 2006 to assist the agricultural community by providing refrigerated rail cars that carry Washington grown produce to east coast states. The program initially had twenty-five cars active in the pool however the program currently has no contractor and is being evaluated for continued need. Program funded with $2 million in federal grants and $40,000 in state transportation funds.

Public Benefits •

At full capacity, the Program eliminates hundreds of heavy truckloads per year from Washington State highways. Reduced highway maintenance costs and congestion and improves safety.

What’s New • •

The former contractor has taken this Public-Private Partnership and created a successful private business model that ships Washington grown produce by rail. WSDOT is evaluating if any unmet need exists for this program.

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Great Northern Corridor Description:

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Washington State Perspective: •

2013 Washington State Rail Plan recommends participation in multistate coalitions to support freight strategies • Enables Washington State to influence important projects in other states and others to support Washington State infrastructure • The GNCC will help create more robust trade alliances and business opportunities across the corridor enhancing our global competiveness • Trade prosperity in the PNW is directly linked to the level of rail and roadway infrastructure serving the region and Washington’s manufactures and farmers rely on the freight system to transport Made in Washington products to local customers, large U.S. Markets on the east coast and to international destinations • Value of the partnerships created by the Great Northern Corridor Coalition (GNCC) effort will strengthen the working relationships between our federal, state and local jurisdictions and delegations 10


Washington State owns the PCC Rail System and the Royal Slope Railroad

Source: WSDOT Freight Systems Division freight@wsdot.wa.gov / 360-705-6921 Publication Date: January 2012

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PCC Rail System • Is a 297-mile rail line comprised of three separate branch lines spanning four eastern Washington counties. • 20% of Washington-grown wheat originated on the PCC Rail System. • The PCC Rail System is responsible for removing 35,000 truckloads from Washington state roadways. • The Washington State Department of Commerce funded $3.95 million in rehabilitation project. Work began October 2012 and will be completed in 2014. • Commodities shipped by rail include wheat, barley, legumes, crop inputs, liquid propane gas and lumber.

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Freight Planning • Whats New – MAP-21 compliant – Freight Economic Corridors – First Last Mile Connectors – Freight Performance Measures (at least for Key Supply Chain Mapping – Projects of state, regional and local importance Date, time and initials of last edit

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Truck Freight Economic Corridors

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Truck Freight Economic Corridor and First/Last Mile Connector Route Criteria 1. T-1 freight corridors that carry more than 10 million tons per year 2. T-2 freight corridors that carry 4 to 10 million tons per year 3. Alternative freight routes that serve as alternatives to T-1 truck routes that experience severe-weather closures, and carry 300,000 to four million tons per year 4. First/last mile connector routes between freight-intensive land uses and T-1 and Tfreight corridors. These criteria were used to identify the connector routes:  – –  – –  –

Statewide: To-and-from T-1 and T-2 truck routes and strategic U.S. defense facilities Over-dimensional truck freight routes that connect the state’s significant intermodal facilities to the T-1 and T-2 highway system In urban areas: To-and-from the Interstate system and the (1) closest major airport with air freight service, (2) marine terminals, ports, barge loaders and other intermodal facilities, and (3) warehouse/industrial lands From high-volume urban freight intermodal facilities to other urban intermodal facilities, e.g. from the Port of Seattle to the BNSF rail yard in Seattle In rural areas: To-and-from state freight hubs located within five miles of T-1 and T-2 highways; freight hubs are defined as: (1) agricultural processing centers, (2) distribution centers, (3) intermodal facilities, and (4) industrial/commercial zoned land Routes that carry one million tons during three months of the year (reflecting seasonality) of agricultural, timber or other resource industry sector goods

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One Example of a First/Last Mile Connector Route Map: PSRC â&#x20AC;&#x201C; King and Kitsap Counties

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Rail Freight Economic Corridors

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Waterway Freight Economic Corridors

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Truck Freight Performance Measures The Washington State Department of Transportation (WSDOT) will use six measures to track the performance of the Truck Freight Economic Corridors. Reducing: 1. Truck travel time 2. Direct truck operating costs 3. Truck engine emissions

Improving: 4. Economic output 5. Network resiliency 6. Reliability

WSDOT organized and supported three Technical Teams focused on Urban Goods Movement, Rural Economies, and the stateâ&#x20AC;&#x2122;s Global Gateways to identify and prioritize the stateâ&#x20AC;&#x2122;s truck freight performance goals. They determined that these six performance goals are strongly aligned with both state and federal freight policies, and are the most important to freight system customers in Washington State.

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Truck Freight Bottleneck Categories Implications for Freight

Slow Speed • More than 50 percent of sampled trucks are traveling below 60 percent of the posted speed (35 mph on urban freeways)

Reliability  80th percentile

Resiliency

 Travel time increases

 Travel times are hard to estimate, leading to poor ontime performance

 Disruptions caused by severe weather, natural disasters (earthquakes), or other causes  Minimum average of at least 5,000 trucks per day on the freight corridor  Truck corridor has had at least one full closure lasting longer than 24 hours in a rolling 20-year period

 Facility failure causes large statewide economic impacts for shippers, goods receivers, and carriers

Restricted Access for Legal Loads

 Legal truck loads cannot travel on the state truck freight economic corridors

 Facility has a posted weight limit below the legal gross vehicle weight of 105,500 pounds or the facility has a posted height limit below 14 feet, the legal height limit for trucks

Clearance restriction for over-height loads • Facility has a height clearance less than 17 feet

 Over-height loads have to take detour routes adding too many additional miles to the trip 20


Freight Rail Challenges Rail System Capacity • Future growth could overwhelm rail system capacity

Community Impact  Increased delays at highway-rail grade crossings and increased noise through communities

Maintenance of Short-line Railroads  Challenge of deferred maintenance and modernization

Implications for Freight  Could not meet future freight rail demands  Negatively affect traffic congestion and safety at atgrade crossings  Could not attract new businesses or encourage past shippers to return to rail transportation

Freight Waterway Challenges Maintenance of Navigation Channel Depth • High sustained river flows made maintaining Columbia River navigation channel depth a challenge

Lack of Columbia River Anchorages

 Unable to meet future navigation needs for large ships  Unable to meet increased need for safe places to anchor ships

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Preservation is the Greatest Need

Over 3,700 highway lane miles are due or past due for preservation projects, but WSDOT will only be able to repave about 1,100 in 2013-15. There are nearly 3,800 state owned bridges; without new revenue 71 steel bridges could become structurally deficient due to lack of painting in the next ten years.

There is a need to preserve critical freight-intensive land uses at both marine and air cargo ports, and in the stateâ&#x20AC;&#x2122;s major warehouse district in the Green River Valley.

Deferral of freight rail maintenance can lead to equipment and track deterioration that requires substantial investment to repair. Short-line operators named bridge repairs as one of their highest priorities.

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Apple Supply Chain: Example Freight Mobility Improvements I-90 Snoqualmie Pass--Widen to Easton Widening and interchange improvements

SR 28 East Wenatchee corridor Widening and interchange improvements to improve mobility and safety

I-82 Yakima â&#x20AC;&#x201C; Union Gap economic development improvements Widening I-82 between North First Street and Yakima Avenue and improving connections to the local systems Apples are a $1.83 billion industry in Washington State 23


Potato Supply Chain: Example Freight Mobility Improvements I-90 Snoqualmie Pass--widen to Easton Widening and interchange improvements

Glade North Overlay Widening and overlaying existing road and upgrading to all-weather standard

I-82 West Richland - Red Mountain interchange Multi-phase improvements to Improve intersection safety and access

Potatoes are a $771 million industry in Washington State 24


Milk Supply Chain: Example Freight Mobility Improvements I-5 Tacoma to Everett mobility improvements Multiple improvements to I-5.

I-90 Snoqualmie Pass--widen to Easton Widening and interchange improvements.

I-82 West Richland - Red Mountain interchange Multi-phase improvements to Improve intersection safety and access.

Milk is a $1.28 billion industry in Washington State 25


Wheat Supply Chain: Example Freight Mobility Improvements West Vancouver Freight Access New freight rail entrance to the Port of Vancouver from the mainline and internal rail track storage to accommodate unit trains.

PCC Freight Rail Preservation Multiple preservation and rehabilitation projects.

Ice Harbor Lock & Dam Lock and dam maintenance project.

Wheat is a $1.14 billion industry in Washington State 26


Aerospace Supply Chain: Example Freight Mobility Improvements I-5 Tacoma to Everett mobility improvements Multiple improvements to I-5.

Phase I -Re-designation of SR 529 & Improvements Access improvements from Port of Everett to I-5 and intersection improvements to better accommodate overdimensional freight traffic.

I-90 Snoqualmie Pass--widen to Easton Widening and interchange improvements.

Aerospace products and parts are a $52.2 billion industry in Washington State

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International Logistics and Trade Supply Chain: Example Freight Mobility Improvements

S Spokane Street Rebuild Rebuilding and making operational/ITS improvements to S Spokane Street

SR 509 Completion Extending SR 509 south from SeaTac to I-5

SR 167 Completion Constructing a new alignment between SR 509 in Tacoma and SR 512 in Puyallup

International logistics and trade is a $1.3 billion industry in Washington State

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Washington State is Growing By 2030 the central Puget Sound region alone will add another 760,000 residents. Clark County is expected to add over 110,000 and Spokane over 87,000 residents by 2030. • Washington’s population was 6.7 million in 2010 and is expected to climb to over 8.1 million by 2030 according to the Washington State Office of Financial Management. • As population rises, there will be more pressure on the public and private sectors to lower freight emissions near workers and residents. • Business growth will drive demand to move goods at the right cost and right time on the state’s freight economic corridors.

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Truck Freight Growth Through 2030

Base Truck Forecast with Trend Analysis Applied

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Rail Freight Growth Through 2035

Rail Volumes by Direction of Travel 2010 to 2035

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We can meet the challenge together… •

• •

The Washington State Freight Plan addresses the period from 2014 to 2030 and contains both near- and long-term policy, operational and project investment strategies. The Freight Plan is multimodal, and incorporates freight rail recommendations from the State Rail Plan. Policy recommendations came from WSDOT, the Washington State Freight Advisory Committee, and discussions with other freight stakeholders. The WSDOT recommendations on State Truck and Freight Rail Economic Corridors are drawn from the WSDOT 2013 Unfunded System Investments list found at http://www.wsdot.wa.gov/Funding/SystemInvestments.htm. WSDOT's recommended freight highway project list may be subject to revision as the department is currently undertaking a rigorous practical design process to continue to seek the lowest-cost and highest-value solutions for freight and passenger needs on the highway system. Project recommendations on the State Waterway Freight Economic Corridors are based on information provided by the Pacific Northwest Waterways Association and state ports. WSDOT and FMSIB joined together to gather regional and local freight project recommendations from MPOs, RTPOs, Ports and Tribes, as a first step towards a unified State Freight Mobility Plan.

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What’s Next? • Expanding performance measures • Grade crossing conflicts – Grade separation criteria development – Identify other improvement options

Date, time and initials of last edit

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Canada’s Gateways and Trade Corridors: System-wide Approach Need objective fact-based metrics to: • Respond to anecdotal claims of (un)reliability • Provide reliable and objective benchmarks for industry

• Market and promote Canada’s gateways efficiently • Transparency and impartiality

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North American Container Port Traffic Market Share (TEU) by Country, 2000 vs. 2010 East Coast

All Ports Mexico 5% Mexico 4%

Canada 10%

Canada 8.5%

Mexico 5.3%

U.S. 85%

U.S. 87.5%

•Canada’s share remained constant at around 9% during the same period.

2010

West Coast Mexico 7 %

U.S.83%

2010

• Mexico’s share of North American port traffic grew from 4% in 2000 to 7% in 2010.

U.S. 86.4%

2000

2000

Canada 8.3%

Canada 9% Mexico 3%

Canada 7%

Mexico 9%

Canada 10%

U.S. 90%

U.S. 81%

2000

2010

Source: American Association of Port Authorities and Canada Port Authorities

• However, where Canadian ports have gained most in North American market share is on the West Coast.

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Canadian Ports Serve a Continental Market U.S. Imports via Canadian Ports 2010

W/C = 245,482 laden TEUs

E/C = 179,782 laden TEUs

425,264 laden TEUs

U.S. containerized imports via Canadian ports as share of total U.S. port traffic have averaged 2.5% over the past decade. Transport Canada - Economic Analysis & Research


PHASE 1 CORRIDORS: ASIA-PACIFIC Calgary Toronto Montreal Chicago

PRINCE RUPERT

• Hong Kong • Shanghai

VANCOUVER

Calgary Toronto Montreal Chicago

PHASE 2 CORRIDORS: CONTINENTAL Toronto Detroit Chicago

MONTREAL • Antwerp • Valencia Economic Analysis Directorate Transport Canada - Economic Analysis & Research

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Import Supply Chain Time Components Measured Ocean & Port Ocean transit [1]

Rail Dwell at origin rail yard [1]

Trucking Truck from marine terminal to origin rail yard [1]

Air Dwell at origin airport [1]

Truck from marine terminal to end customer [2]

Marine Terminal Dwell [2]

Rail transit time (intra-urban) [2]

Rail transit time (inter-urban) [3]

Dwell at dest. rail yard [4]

Truck from marine terminal to transload facility [3]

Truck from transload facility to origin rail yard [4]

Truck from transload facility to end customer [5] Truck from shipper warehouse to origin airport [6]

Truck from primary destination airport to secondary destination airport[7]

Truck from destination airport to DC/warehouse [8]

Air transit [2]

Dwell at destination airport [3] Dwell at secondary destination airport[4]

Logistics and Warehousing Dwell at transload facility


MAIN CONCLUSIONS Canada’s supply chain efficiency is a central goal for all stakeholders •There are different policy angles emerging from these results but definitely there is a crucial multi-modal interface •Transport Canada’s supply chain measurement is evidence-based. It aims to: –Deflect anecdotal claims –Offers visibility of the supply chains –Promote Canada in the world as a competitive business place –Improve data sharing leads to more resilient and risk-resistant supply chains (World Economic Forum). •Transport Canada’s approach is not carrier specific measurement but instead focus on multi-modal integrated supply chain measurement. •While good metrics are key to measuring performance, good information derived from better collaboration is by far the key to planning and managing for improved performance.

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Weâ&#x20AC;&#x2122;re very interested in your feedback and questions. For more information, please contact: Chris Herman, Freight Rail Policy & Program Mgr WSDOT Freight Systems Division hermanc@wsdot.wa.gov

Washington State Freight Mobility Plan is available here: http://www.wsdot.wa.gov/Freight/freightmobilityplan

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WPPA 2016 Transportation & Infrastructure Seminar - WS Freight Rail Plan, Herman  
WPPA 2016 Transportation & Infrastructure Seminar - WS Freight Rail Plan, Herman  
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