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Ons Ultant Epo INCREASING FUEL EFFICIENCY AND ALTERNATIVE FUEL USE IN FREIGHT MOVEMENT ACROSS THE CALIFORNIA/BAJA CALIFORNIA BORDER EPORT R Prepared For: California Energy Commission ONSULTANT ONSULTANT C Prepared By: KEMA Inc. American Council for an Energy-Efficient Economy (ACEEE) Eastern Research Group, Inc. (ERG) FEBRUARY 2009 CEC-600-2009-003 Prepared By: KEMA, Inc. Karin Corfee, Project Manager American Council for an Energy-Efficient Economy (ACEEE) Eastern Research Group, Inc.(ERG) Task Manager: Therese Langer Authors: Therese Langer, Karen Ehrhardt Martinez, and James Kliesch (ACEEE); Richard Billings, Rick Baker, Garry Brooks, Heather Perez, and Roger Chang (ERG). Contract No. 600-05-011 Prepared For: California Energy Commission Chris Scott Contract Manager Al Estrada Program Manager John Sugar Manager SPECIAL PROJECTS OFFICE Michael Smith Deputy Director FUELS AND TRANSPORTATION DIVISION Melissa Jones Executive Director DISCLAIMER This report was prepared as the result of work sponsored by the California Energy Commission. It does not necessarily represent the views of the Energy Commission, its employees or the State of California. The Energy Commission, the State of California, its employees, contractors and subcontractors make no warrant, express or implied, and assume no legal liability for the information in this report; nor does any party represent that the uses of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the California Energy Commission nor has the California Energy Commission passed upon the accuracy or adequacy of the information in this report. Please cite this report as follows: Langer, Therese; Billings, Richard; Baker, Rick; Ehrhardt‐Martinez, Karen; Brooks, Gary; Perez, Heather; Chang, Roger; Kliesch, James Analysis of Transportation Options to Improve Fuel Efficiency and Increase Use of Alternative Fuels in Freight and Cargo Movement in the California/Mexico Border Region, California Energy Commission. Publication Number: CEC-600-2009-003 Table of Contents ABSTRACT ............................................................................................................................................. vii EXECUTIVE SUMMARY ........................................................................................................................ 1 CHAPTER 1: Cross‐Border Trade and Infrastructure ....................................................................... 9 Introduction ............................................................................................................................................ 9 Cross‐Border Trade ................................................................................................................................ 9 Background: U.S.‐Mexico Trade Volumes ..................................................................................... 9 Movement of Goods Across the California‐Baja California Border .......................................... 12 Commodities ..................................................................................................................................... 15 Transportation Infrastructure and Services ..................................................................................... 18 Trucking ............................................................................................................................................ 18 Ports and Shipping........................................................................................................................... 19 Rail ..................................................................................................................................................... 28 Air ....................................................................................................................................................... 33 CHAPTER 2: Options to Improve the Efficiency of Cross‐Border Goods Movement ............. 37 Truck Transport: Inefficiencies and Opportunities ......................................................................... 37 Drayage and Mexican Customs Brokers ....................................................................................... 38 Efficiency Opportunities for Trucking .......................................................................................... 38 Rail Opportunities ................................................................................................................................ 41 Overview ........................................................................................................................................... 42 North‐South Corridors .................................................................................................................... 43 The East‐West Corridor ................................................................................................................... 46 New Rail Lines ................................................................................................................................. 48 Ports and Maritime Transportation ................................................................................................... 48 Short‐Sea Shipping ........................................................................................................................... 49 Trans‐Pacific Trade .......................................................................................................................... 50 Air Freight ............................................................................................................................................. 51 CHAPTER 3: Benefits and Costs of Cross‐Border Goods Movement Improvement Options 53 Introduction .......................................................................................................................................... 53 Public Benefits ...................................................................................................................................... 55 Energy Use and Emissions of Current Operations ..................................................................... 55 Fuel Use and Emissions Reductions of Goods Movement Options ......................................... 58 Economic Benefits of Reducing Border Delays ............................................................................ 64 Capital Costs ......................................................................................................................................... 66 Costs of Options ............................................................................................................................... 66 Discussion: Cost‐Effectiveness ....................................................................................................... 70 Operating Costs and Revenues .......................................................................................................... 72 Conclusions ........................................................................................................................................... 74 CHAPTER 4: Evaluation of Fuel Options and New Transportation Technologies ................. 77 Introduction .......................................................................................................................................... 77 Summary of Fuels and Technology Options by Transportation Mode ........................................ 78 On‐Road Fuels and Technologies .................................................................................................. 78 i Railroad Fuels and Technologies ................................................................................................... 93 Marine Fuels and Technologies ..................................................................................................... 99 Aviation Fuels and Technology ................................................................................................... 106 Conclusion .......................................................................................................................................... 114 On‐Road .......................................................................................................................................... 114 Railroad ........................................................................................................................................... 115 Marine .............................................................................................................................................. 115 Aviation ........................................................................................................................................... 116 CHAPTER 5: Recommendations ........................................................................................................ 123 Alternative Modes ............................................................................................................................. 123 Emissions and Technologies ............................................................................................................. 126 Policies and Practices ......................................................................................................................... 127 GLOSSARY ............................................................................................................................................ 129
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