Freight Transportation Framework Study A study by the JOINT PLANNING ADVISORY COUNCIL A planning partnership for the Arizona Sun Corridor Technical Memorandum I – Freight Shipper and Carrier Profile and Commodity Flow Profile MARICOPA ASSOCIATION OF GOVERNMENTS CENTRAL ARIZONA ASSOCIATION OF GOVERNMENTS PIMA ASSOCIATION OF GOVERNMENTS Prepared by: PARSONS BRINCKERHOFF In cooperation with: F. Zuniga, Inc. KDA Creative RCLCo Tompkins Associates Trans-Research International Zachary Maritime Consulting TABLE OF CONTENTS 1.0 Background and Methodology .................................................................................... 7 1.1 Freight Framework Study Background ................................................................ 8 2.0 Shipper Surveys and Interviews .................................................................................. 11 2.1 Shipper Surveys ...................................................................................................... 11 2.1.1 Survey Respondent Profile ....................................................................... 11 2.1.2 Sun Corridor Shipper Operations............................................................ 13 2.1.3 Imports and Port of Entry ......................................................................... 17 2.1.4 Potential for Future Arizona Operations ................................................ 22 2.2 Shipper Interviews ................................................................................................. 23 2.2.1 Shipper Interviews ..................................................................................... 24 2.2.2 Transportation Service Provider Interviews ........................................... 25 2.2.3 Government and Others ......................................................................... 27 2.3 Consortium Database Best Practices and Benchmarking ............................ 28 2.4 Survey and Interview Findings ............................................................................. 35 2.4.1 Trends in Goods Movement .................................................................... 35 2.4.2 Trends in the Sun Corridor ........................................................................ 36 3.0 Commodity Flow Profile ............................................................................................... 38 3.1 Introduction............................................................................................................ 38 3.1.1 Data Sources Used ................................................................................... 38 3.2 Overview of Sun Corridor Cargo Flows by Direction....................................... 39 3.3 Inbound Cargo ...................................................................................................... 40 3.3.1 Domestic Inbound .................................................................................... 42 3.3.2 International Imports ................................................................................ 47 3.3.3 Cross Border Imports ................................................................................. 50 3.3.4 Denting Southern California’s Dominance in Distribution ................. 51 3.4 Outbound Cargo .................................................................................................. 52 3.4.1 Domestic Outbound ................................................................................ 53 3.4.2 International Exports................................................................................. 56 3.4.3 Cross Border Exports ................................................................................. 58 3.5 Through Cargo ....................................................................................................... 58 3.5.1 Overview and Relevance ....................................................................... 58 3.5.2 East-West Commodity Flows ................................................................... 59 3.5.3 North-South Commodity Flows ............................................................... 68 3.6 Commodity Flow Findings .................................................................................... 72 Freight Transportation Framework Study i Freight Shipper and Carrier Profile Phase I Technical Memorandum 4.0 Ocean and International Cargo ................................................................................. 74 4.1 Current Ocean Cargo Goods Movement Affecting Arizona ....................... 74 4.2 West Coast Port Market ....................................................................................... 75 4.3 Impact of the Panama Canal Expansion ......................................................... 77 4.4 Port of San Diego and the Port of Ensenada ................................................... 79 4.5 US Gulf and Southeastern Ports .......................................................................... 79 4.6 Mexican Ports ......................................................................................................... 80 4.6.1 Port of Punta Colonet .............................................................................. 80 5.0 Rail Cargo ...................................................................................................................... 82 5.1 Railroad Operating Facilities ............................................................................... 82 5.2 Multimodal Customer Facilities ........................................................................... 82 5.2.1 Railroad Intermodal Terminals ................................................................ 82 5.2.2 Transload Terminals ................................................................................... 83 5.2.3 Inland Ports ................................................................................................. 83 5.3 Sun Corridor Rail Network .................................................................................... 83 5.3.1 BNSF............................................................................................................. 86 5.3.2 Union Pacific (UP) ..................................................................................... 87 5.3.3 Short Line Railroads ................................................................................... 88 5.4 Condition and Capacity of the Class I Railroad Network ............................. 89 5.5 Proposed Railroad Improvement Projects ........................................................ 92 5.5.1 BNSF............................................................................................................. 92 5.5.2 UP................................................................................................................. 92 5.6 Railroad Traffic Profile ........................................................................................... 93 5.6.1 Container/Trailer Traffic and Rail Competitiveness ............................ 93 6.0 Trucking and Motor Freight .......................................................................................... 95 6.1 Sun Corridor Highway Network ........................................................................... 95 6.1.1 Highway Inventory .................................................................................... 96 6.1.2 Truck Traffic Volumes and Potential Bottlenecks ................................ 96 6.1.3 Freight Generators ..................................................................................100 6.1.4 Traffic Crash Locations ...........................................................................102 6.1.5 Key Truck Routes and Trade Corridors ................................................102 6.2 Trucking and Motor Freight Profile .................................................................... 103 6.2.1 Driver Availability ....................................................................................104 6.2.2 Limited Capacity ....................................................................................105 6.2.3 Increasing Fuel Costs ..............................................................................106 6.2.4 Regulatory Issues .....................................................................................107 Freight Transportation Framework Study ii Freight Shipper and Carrier Profile Phase I Technical Memorandum 6.3 Truck Load Rates ................................................................................................. 108 6.4 Arizona Ports of Entry .......................................................................................... 110 7.0 Air Cargo .....................................................................................................................112 7.1 Overview of the Air Cargo Industry .................................................................. 112 7.1.1 Types of Air Cargo ..................................................................................112 7.1.2 Types of Carriers ......................................................................................112 7.1.3 Types of Services .....................................................................................113 7.2 Air Cargo Market Trends .................................................................................... 114 7.3 Air Cargo Industry in the Sun Corridor ............................................................. 115 7.3.1 Sun Corridor Air Cargo Assets ...............................................................117