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Assessing Rail Freight Solutions to Roadway Congestion: Final Report

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Assessing Rail Freight Solutions to Roadway Congestion: Final Report Rail Freight Solutions to Roadway Congestion NCHRP Project 8-42 ASSESSING RAIL FREIGHT SOLUTIONS TO ROADWAY CONGESTION: FINAL REPORT Prepared by: Joseph Bryan, Global Insight, Inc. Glen Weisbrod, Economic Development Research Group Carl D. Martland, Senior Research Associate, M.I.T. Wilbur Smith Associates, Inc. Revised, October, 2006 Assessing Rail Freight Solutions to Roadway Congestion: Final Report Table of Contents TABLE OF CONTENTS 1 INTRODUCTION AND OVERVIEW................................................................................... 1 1.1 OBJECTIVE....................................................................................................................... 1 1.1.1 Background Motivation............................................................................................... 1 1.1.2 Report Goals............................................................................................................... 1 1.2 ELEMENTS OF THE STUDY................................................................................................. 2 1.2.1 Major Considerations ................................................................................................. 2 2 LITERATURE REVIEW....................................................................................................... 4 2.1 RAIL AND GENERAL FREIGHT ECONOMICS ........................................................................ 4 2.1.1 Themes ....................................................................................................................... 4 2.1.2 Railroads and Economic Development ........................................................................ 6 2.1.3 Declining Marginal Costs ........................................................................................... 6 2.1.4 Service Capabilities .................................................................................................... 7 2.1.5 Truckload Competition................................................................................................ 9 2.1.6 Role of Technology ................................................................................................... 10 2.2 INTERMODAL PLANNING INCLUDING TRUCK AND/OR RAIL FREIGHT................................. 14 2.2.1 Intermodal Planning Techniques............................................................................... 15 2.3 STUDIES OF CONGESTION COST ...................................................................................... 16 2.3.1 Congestion Costs ...................................................................................................... 17 2.4 RAIL RELOCATION AND ROAD/RAIL CONFLICT ............................................................... 18 2.4.1 Rationalization of Rail Facilities............................................................................... 19 2.4.2 Redevelopment of Urban Rail Facilities..................................................................... 20 2.4.3 Location of Intermodal Terminals ............................................................................. 21 2.4.4 Grade Crossings and Grade Separation .................................................................... 22 2.5 BENEFIT-COST ASSESSMENT AND MODELING ................................................................. 23 2.5.1 Examples of Intermodal Freight Planning Studies ..................................................... 24 2.5.2 Performance Models for Specific Types of Services.................................................... 28 2.5.3 Guidebooks............................................................................................................... 29 2.6 PUBLIC-PRIVATE PARTNERSHIPS..................................................................................... 33 2.6.1 Brief History of Public/Private Relationships with Rail Industry ................................ 34 2.6.2 Intermodal Case Studies – Public/Private Partnerships ............................................. 37 2.6.3 Perspective on Public/Private Investments................................................................. 38 2.7 CONCLUDING OBSERVATIONS......................................................................................... 39 2.8 REFERENCES.................................................................................................................. 40 3 DETAILED CASE STUDIES............................................................................................... 46 CASE ILLUSTRATION 1: PENNSYLVANIA DOUBLE STACK CLEARANCES ......................................... 47 CASE ILLUSTRATION 2: VIRGINIA I-81 MARKETING STUDY .......................................................... 53 CASE ILLUSTRATION 3: THE BETUWEROUTE FREIGHT LINE: NETHERLANDS.................................. 62 CASE ILLUSTRATION 4: ALAMEDA CORRIDOR ............................................................................... 66 CASE ILLUSTRATION 5: SHEFFIELD FLYOVER, KANSAS CITY, MISSOURI........................................ 73 CASE ILLUSTRATION 6: VANCOUVER GATEWAY TRANSPORTATION SYSTEM.................................. 78 CASE ILLUSTRATION 7: FREIGHT RAIL FUTURES FOR THE CITY OF CHICAGO ................................. 85 CASE ILLUSTRATION 8: STATE RAIL ACCESS PROGRAMS............................................................... 90 CASE ILLUSTRATION 9: INLAND PORTS ......................................................................................... 95 ADDITIONAL REFERENCES ......................................................................................................... 102 Global Insight and Economic Development Research Group Page i Assessing Rail Freight Solutions to Roadway Congestion: Final Report Table of Contents 4 SHIPPER NEEDS & STRUCTURAL FACTORS ............................................................ 104 4.1 INTRODUCTION ............................................................................................................ 104 4.2 SHIPPER NEEDS............................................................................................................ 105 4.2.1 Service.................................................................................................................... 106 4.2.2 Cost........................................................................................................................ 107 4.2.3 Other Needs............................................................................................................ 109 4.2.4 Carrier Selection..................................................................................................... 110 4.3 STRUCTURAL FACTORS ................................................................................................ 114 4.3.1 Access..................................................................................................................... 114 4.4 MARKET SEGMENTATION ............................................................................................. 124 4.4.1 Demand Side........................................................................................................... 124 4.4.2 Supply Side............................................................................................................. 125 4.5 DIVERSION OPPORTUNITIES .......................................................................................... 133 4.5.1 Railcar.................................................................................................................... 135 4.5.2 Intermodal .............................................................................................................. 138 4.5.3 Short-Haul Rail....................................................................................................... 140 CASE STUDY 2: NORTHWEST CONTAINER SERVICES ................................................................... 145 4.6 SOCIAL AND ECONOMIC IMPACTS OF DIVERSION ........................................................... 146 4.6.1 Forms of Incremental Impact .................................................................................. 147 4.6.2 Factors Affecting Incremental Impact...................................................................... 151 4.6.3 Modal Diversion Models......................................................................................... 153 5 TRENDS AFFECTING FREIGHT MOVEMENT ........................................................... 156 5.1 OVERVIEW OF TRENDS DISCUSSION .............................................................................. 156 5.1.1 Objective ................................................................................................................ 156 5.1.2 Organization........................................................................................................... 156 5.2 CONGESTION COST TRENDS.......................................................................................... 157 5.2.1 Road Travel Demand Continues to Increase ............................................................ 158 5.2.2 Rising Congestion as Supply Does Not Keep Up with Demand................................. 158 5.2.3 Rising Cost of Congestion ....................................................................................... 160 5.2.4 Increasing Breadth of Congestion ........................................................................... 162 5.3 ROLE OF TRUCKS IN CONGESTION................................................................................
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