Mode Matrix Development

1 Mode Matrix Development

BEFORE CLASS

Connection Activity Overview Required Resources Agenda & Instructor Notes

Review to see how this Read to learn more Review to make sure you Read to prepare for activity fits as part of about the content of have the materials you what you will do in class the course and Unit 1. the activity. need for this activity. during the activity.

Connection Activity #1 is the first assignment within the Unit 1: Defining the Freight System which introduces students to the components and characteristics of the freight system. The information provided in Unit 1 is the building block for a greater understanding of freight transportation within our transportation system. In Activity #1, students describe the modes within the freight transportation system and compare the economic and operational characteristics of modes. This is how this activity fits into the unit.

Unit 1: Defining the Freight System

L Introduction to Freight Transportation

A Mode Matrix (Pre-class and In-class)

L Intermodal Transfers

L Role of Supply Chains

A Commodity Flow

Once students have an understanding of the means by which goods move they will be better prepared to engage in subsequent activities within Unit 1 and the remainder of the course.

Activity Overview Activity #1 consists of both a pre-class (1a) and in-class (1b) component. In the pre-class activity students are assigned a mode of freight transportation to research, summarize, and be ready to act as an “expert” on during in-class discussions. It is important to emphasize to the students that their preparation in the pre- class activity is important to ensure a successful in-class activity. Within, and related to, each mode students are asked to research the following topic areas: • Pertinent history (e.g., technology, relevant policy, mode history impacts on present operations) • Infrastructure (e.g., quality, reach, connectivity, ownership and management) • Typical goods movement (what is typically moved via mode), common services • Vehicles and kinds of services (used to move goods)

• Overseeing agencies (public and private) • Technology associated with the mode • Current issues (congestion, environmental issues, security…) • Advantages (over other modes) • Disadvantages (over other modes) • Within Washington state Students are provided with a “mode matrix” which has examples of the kind of information desired within the topic areas. This gives the students guidance for the open ended assignment and lets them know what level of effort is expected of them. During the in-class activity students share previously gathered information on freight transportation modes, ultimately identifying key issues for each mode and developing a matrix to compare modes. Working within modes, students will clarify concerns and uncertainties and complete their portion of the mode matrix below. Once each group has completed their portion of the mode matrix, new groups will be formed, where each group has one member representing each mode. Within these new groups, students will help each other complete the entire mode matrix. Because time is limited, the students are asked to start by focusing on two topic areas (matrix rows) of their individual mode (one area which they feel is most important to understanding the mode and its role in the freight transportation, and one area where they were surprised by what they learned). Additionally, groups will work together to answer the Critical Thinking Questions related to mode comparison.

The learning objectives for Activity #1 include: • To be able to define and describe components of the freight transportation system. • To be able to compare economic and operational characteristics of modes. • To do independent research and report findings to the class.

Required Resources • Activity #1a and #1b text

DURING CLASS

Discussion Agenda Instructor Notes Common Questions Notes and Ideas Review with the students to Use this to remind you of the Keep these in mind! Keep these in mind for show them what tasks will be information that you need to They are what students possible use during completed during class and the remember and the sequence have asked about this class or to update the approximate time for each task. that you will follow during class. activity in the past. activity in the future

Agenda Pre-class activity (#1a) • Assign student to a mode (TRUCK, RAIL, AIR, WATER) to use in completing pre-class assignment. • Assign student to a mixed mode group - where each group has one member representing each mode (1, 2, 3…) - to use in completing the in-class assignment.

In-class activity (#1b) • Students gather in groups by mode to discuss information gathered during the pre-class activity. Within the group, students should clarify concerns/uncertainties and fill in mode matrix for their given mode. (apprx. 20 minutes) • Students gather in mixed mode groups. Within these groups, students should help each other complete the entire mode matrix and answer the Critical Thinking Questions pertaining to the information. (apprx. 20 minutes) • Within the mixed modal groups students should compare across modes to answer the Critical Thinking Questions provided within activity. (30 minutes) Post-class • Each mixed modal group should finalize a completed version of their mode matrix and Critical Thinking Questions, and submit electronically to the instructor.

Instructor Notes The instructor is to facilitate the activity by helping the students arrange themselves in groups, both by mode and mixed mode. During both group sessions, the instructor should observe groups, noting problems and if certain mode/attributes are not being covered thoroughly. Additionally the instructor should take questions from the groups on aspects of the mode matrix content. The instructor should clarify the following as students gather in mixed modal groups: • As stated in the student activity handout, when sharing information in the mixed modal groups, students should focus on two topic areas (matrix rows) of their mode: one area which they feel is most important to understanding the mode and its role in the freight transportation, and one area where they were surprised by what they learned. • Students should take advantage of flash drives and laptops when compiling mode matrix information. • The Critical Thinking Questions posed in the activity are open-ended. Emphasize that the questions are open to interpretation by students and that many answers are considered correct, especially when accompanied by explanations. • Due to the scope of the assignment and information provided in class up to this point, students may not have well-developed responses to the questions. The intent is to have students think beyond what was investigated in the pre-assignment and small group discussions. The themes presented in these questions will be further developed throughout the course. • Bullets and short answers are acceptable when answering the Critical Thinking Questions. The instructor should clarify the following as the class session ends: • Mixed modal group are to complete their mode matrix and Critical Thinking Questions for the next class period.

Common Questions/Concerns It is necessary to specifically address (see above) the open-ended nature of questions and the intent to have students think beyond the boundaries of what they have investigated and shared with each other. Students should also be reminded that this is not the only time during the course that they will be exposed to the material. Rather, many of the topics will be touched upon at later points and discussed in more detail. Freight Transportation © 2012 Kelly Pitera (Facilitation Guide) Activity 1a & b: Mode Matrix Development

This assignment is time-intensive and in previous trials of this activity students have not had adequate time to complete the assignment. To address this, students have been instructed to focus on only two topic areas (see above) when sharing information within their mixed modal groups. Additionally, the number of Critical Thinking Questions asked within the activity has been reduced. The removed questions are now posed under Discussion Notes/Ideas, below. This exercise simplifies some aspects of the modes and makes many generalizations. Near the end of the exercise students asked about some more detailed questions regarding cost – for example who pays which costs and whether social costs were included. This was positive, and some of these issues will be addressed later in the course, but students should be reminded that generalizations are also important at this point. Students had some difficulty differentiating current issues from disadvantages or advantages. This differ- ence should be clarified by the instructor.

Discussion Notes/Ideas Additional questions which could be asked during the activity session include: • Identify a current issue related to sustainability. Why is it a sustainability concern? What can be done (by whom) to improve this issue? • Which mode of freight transport do you think is the most attractive, and why? • Which mode of freight transport do you think is the least attractive, and why? • If you had $1,000,000 (or any arbitrary amount of money), which issue regarding freight movement in Washington state would you address? Why?

AFTER CLASS

Answers and Notes Activity Assessment Next Steps

Use the information Use this space to take notes regarding the This is a reminder of what comes next, here to help you implementation and facilitation of the activity including any homework or preparation evaluate student which can be used to make any necessary that students need to complete for performance. adjustments to the activity. the next class or activity.

Answers and Notes Completed Mode Matrix: See last pages of facilitation sheet. Critical Thinking Questions (with answers): 1. Explain how deregulation has been good or bad (or a combination of both) for freight transportation? Good: (1) companies can own across modes, encourages intermodalism (e.g., Shipping companies owning trucking companies) (2) allows for pricing and schedule freedom (3) allows carriers to be more efficient in services (4) competition – beneficial economic results Bad: (1) less service to areas with less demand – but this has different implications for freight vs passenger

2. Railroads were up and running several days after Hurricane Katrina passed through New Orleans and the Gulf Coast. It took much longer for the road system to recover. Explain how the ownership of infrastructure contributed to this disparity.

Railroads are privately owned. There is less bureaucracy to deal with, can do job without government oversight. This private ownership has disadvantages too- railroads are often reluctant to make improvements unless they see the direct benefit of it.

3. Draw a line to represent each of the four modes discussed on the graph below. The y-intercept represents the fixed cost of each mode of transport and the slope of the line represents the cost per unit of distance travelled.

Truck Air

riable) Rail

Water Costs (Fixed & Va

Distance

4. How does the use of the container promote intermodalism? Use the vehicles described in the matrix to help explain. Easy handling between modes – containers can travel by ship, rail and truck; standardized sizes; as a whole unit – a container can be easily identified and tracked

5. Explain how the US DOT is a “siloed” organization. How does this organization affect decision making and efficiency within the transportation system? “Stacking” of organizations (draw on board) – FAA, FHWA, FTA, MARAD, NTSHA, FRA, RITA, FMCSA… Less communication and ability to work between organizations

6. Looking across the modes, what themes do you see in the way technology is used in freight transportation? Security, efficiency, environment

Activity Assessment

Next Steps The knowledge and insights which students have developed within this activity are further developed during the Intermodal Transfer lecture, which comes next in Unit 1.

Freight Transportation © 2012 Kelly Pitera (Facilitation Guide) Activity 1a & b: Mode Matrix Development Activity 1a & b: Mode Matrix Development WATER Water borne freight developed long before roads Water to steel ships, sails engines Wood Early 20th Century regulation WWII increased demand for ships Ship size has been growing for the last 50 years Speed has more than quadrupled from 10 to 40 knots Crews have decreased from 35 to 20 or less due to automation Fuel efficiency has become more important due to fuel prices specialized because of containers Terminals 95% of all international tonnage for US is by water freight moved on tramp shipping Most marine cargo Act – foreign ships cannot move goods Jones between two US ports Ports are both publicly and municipal corporations Terminals Non-Operating Ports – landlord ports, facilities leased to private companies who operate ports (i.e. Port of Seattle); Operating Ports – ports that operate terminals own dock union jobs, like loading and but don’t unloading ships; Limited Operating Ports – port leases some terminals but operates other terminals, such as the grain elevators, bulk or container terminals; Majority of international freight moves via water steamer – vessel with no regular schedule, Tramp at a port and moving on; low picking any cargo cost, usually breakbulk Liner – regularly scheduled sailing between specified ports; usually containers carried. Breakbulk – general cargo Bulk – vessel carries unpackaged goods, i.e. grains, wood chips, vegetable or petroleum • • • • • • • • • • • • • • • • • • • • • • AIR Airmail was really the beginning of air freight and made transportation commercially relevant. passengers were used to fill Initially, excess space on planes when there enough airmail, this is the wasn’t opposite of what typically occurs today where passengers are more important because they make more money. High degree of government involvement Fastest growing segment of US cargo economy WWII Began after deregulated in Domestic air cargo 1977 much Has increased proportionally, more than passenger air travel 13% of passenger business Use hub system Business continuing to grow by 9/11 Industry greatly affected Airports can be publicly or privately US airports are owned. Most large publically owned. Air traffic control is run by the federal government; enough to Airports need to be large planes; sustain larger of runways – single, parallel, Types runways; intersecting or open-V – complex, Terminals Air Cargo labor intensive, becoming more computerized or time-sensitive cargo Valuable Perishable (cut flowers, fresh fruits, magazines, fish) Costly (small electronics, computer chips) (drugs, parts to repair a Emergency factory assembly line) Air transportation moves only 2% goods by weight, but of the world’s 40% by value, due to the nature of goods moved planes or passenger Can be in cargo belly; planes with cargo Express – usually less than 100 lbs, • • • • • • • • • • • • • • • • • • • • • • • RAIL Heavily regulated until 1980; Act; 1970s, Deregulation by Staggers numerous bankruptcies (i.e. Penn Central) Abandoned unprofitable lines, instead focusing on strategic lower rates but poor services Today, Congestion becoming a problem Privately owned by the railroads Railroads build and maintain the tracks access final destinations don’t Tracks allowance for double stacking Tunnel low value, heavy goods Typically traveling over long distances. share of grain and coal, Large many new automobiles. freight 30% of nation’s As of today, represents This rail. on carried is (tons) 7% of the value United States freight and is carried by rail via 1.6 million rail cars. Class 1 carriers (9) – biggest Local and regional rail – feed class 1 lines • • • • • • • • • • • • • TRUCK Until the mid ‘60s, regulated by Interstate Commerce Commission; Deregulated in 1980; reduced rates, also created more competition; Permitted more truck load operations in comparison to less than truckload or door to able to provide JIT Trucks door Dominant mode of freight by tonnage or value; Strong growth until recent economic downturn Act signed by Interstate Highway Eisenhower in 1956; 20,000 – 37,000 miles of interstate from 1960 to 1975; enhancing truck freight established in 1967 to create USDOT weight and size freight truck policy, regulations (among other oversights) use public infrastructure. Trucks Users of the road commonly don’t bear the full operating costs. Act allowed for the Interstate Highway building of roads. taxes gas with for paid is Infrastructure and tolls pertaining to maintenance and new construction. Paved roads - 985,000 miles of Federal-aid highways plus other local roads Most diverse and flexible Truckload Less than truckload Delivery/Package International/Line Haul/Regional/ Local (based on distance travelled) Private/For Hire Single unit (urban short hauls) Semi-trailers Combination trucks (doubles, triples) • • • • • • • 1. • • • • • • • • • • • • • • Pertinent history Infrastructure goods Typical movement, Common services (and Vehicles kinds of services)

Freight Transportation © 2012 Kelly Pitera (Facilitation Guide) Activity 1a & b: Mode Matrix Development Activity 1a & b: Mode Matrix Development WATER Roll-on, roll-off – ship allows for cargo to be – ship allows for cargo Roll-on, roll-off by vehicle as vessel reaches rolled on and off port, packaging and vehicle makes the vessel’s held as less efficient amount of cargo is automobiles, similar Automobile ship – cargo as ship to RORO ships where cars can drive off reaches port. ft maximum width, fit the Panamax ships – 110 panama before expansion. Usually containers of general cargo. ships that carry more post panama ships – larger and deeper. Wider, than panamax ships. TEU’s Usually containers of general cargo lifted Abroad Ship, barges LASH – Lighter directly onto ship, more common in Europe Shore power plug in (cold ironing)– ships with at berth and thus diesel engines shutting them off reducing emissions Container tracking Container screening at terminal ships Larger Refrigerated containers moved, congestion Increase in trade/cargo sizes are increasing, need for deeper Vessel channels Maintain environmental and economic balance Greater need for capital investment Issue of landside access Panama Canal widening • • • • • MARAD SLSDC US Coast Guard Federal Maritime Commission – independent federal agency: monitors ocean activities to make sure they are fair and reasonable • • • • • • • • • • • AIR Mail Chartered Freight Scheduled Freight planes with longer ranges Larger Unit Load Devices (UDL) – includes pallets, netting and rigid containers used Screening and tracking technology Dependent on fuel prices Closely tied to the economy Noise Increased security Pilferage • • • TSA/DHS and FAA Airport Association of American Executives • • • • • • • • RAIL Bulk Unit Load – high volume, single often deadhead, door to commodity, door Mixed Carload – individual shipments combined on one train, usually way flow; Intermodal train – containers, trailers, and automobiles; tend to be high value, lower weight, time sensitive, most profitable on Flatcar – containers with Trailer wheels on train Doublestack – Intermodal Car, containers Hopper Car, Tank Gondola, Box Car, Center Beam Car, Coil Car, Car, Special Purpose Flat Cars, Car Carriers (EOT) Devices – remote Train End of radio device; alerts following train; replaces caboose and crew; lowers labor cost Rail integrity warning systems Positive train control (PTC) – receive info on where it is safe to travel, equipment onboard enforces this Portable digital communications – info presented both aurally and visually Capacity especially in urban areas/ intermodal facilities Congestion in urban areas emissions Air quality, Capacity issues at single stack tunnels Under pressure to compete trucking industry Current RR land bridges could be Panama Canal replaced with larger • • • • • • (DOT) FRA American Railroads Association of Board - broad Transportation Surface economic regulatory oversight of railroads TSA • • • • • • • • • • TRUCK FHWA, FMCSA, NHTSA, FHWA, Pipeline and Hazardous Materials Administration – hazmat (all part of USDOT) (emissions) US EPA State and local DOTs Association, Trucking American Association Trucking Washington in Motion – Checks Weigh CVISN information on driver and vehicle while truck is on the road. Only pulls truck over if there is a problem reducing idling time. On-board monitoring systems – safety, efficiency GPS – real-time routing New design trucks and engines reduce emissions and fuel consumption RFID used for tracking Congestion Driver shortages weight and size Truck Urban freight Dirty trucks, trucks idling fuel costs Economy, Hours of service rules • • • • Board - assume Transportation Surface some of the regulatory functions that had been administered by the Interstate Commerce Commission when the ICC was abolished • • • • • • • • • • • • (continued) Vehicles (and Vehicles kinds of services) Overseeing Agencies (public and private) Technology Current Issues

Freight Transportation © 2012 Kelly Pitera (Facilitation Guide) Activity 1a & b: Mode Matrix Development WATER largest ports largest rd Cheaper per unit the farther distance allows for more volume of goods traveled from areas not land connected can be flexible in route Big startup costs Changes in technology and ship size requires changes in infrastructure, requiring more capital investment volumes Issues with security due to large Asia Coast port to West Closest US 3 Sea/Tac Competition from Port of Prince Rupert Panama Canal expansion predicted to take business away from PNW is a major source of incoming Washington Asia and point of manufactured goods from export for materials and resources stay Only 30% of goods imported into Sea/Tac in the state • • • • • • 2. • • • • • • AIR Air freight is fast, but for a premium. It is good for expensive goods, goods, perishable emergency and time-sensitive goods. It can provide estimations of delivery time and tracking. It allows produce to be delivered all seasons. over the world even in off Produce can be easily shipped from the southern hemisphere during growing season to the northern winter. hemisphere where it’s It also makes new products available to new locations. High costs Highest level of security Cannot handle containerized goods Relies heavily on truck freight due to fixed delivery locations and the need for accessibility between terminals and locations. final goods’ Labor intensive due to the need for people to do the loading and unloading the planes. on and off Lots of space needed for airports and airports often have noise constraints and curfews, which limit the flexibility of when freight can move industry that relies heavily on Volatile the economy Washington There are 29 airports in providing air freight service – Boeing Field, including Sea-Tac, Spokane and Bellingham airport is operated by the Port Sea-Tac of Seattle Third runway project at Sea-Tac • • • • • • • • • • • • • • • RAIL Shipping costs decrease with distance and load Scheduled services Uses less fuel than trucks Produces a lower carbon footprint per TEU than trucks on own right of way Travel High construction and maintenance costs Longer service times than truck/air has move infrastructure easily, Can’t to follow fixed routes Capacity and route issues Railcar shortages take up a lot of space Terminals Does not move “door to door” growth is overloading rail Trade Wash. systems, reducing services to businesses Short lines struggling, service failure will impact communities Railroads addressing operational issues but not infrastructure ones Need for rail infrastructure investment Rail service for small volume shipping will only get harder Longer trains and more conflicts with roads crossings Conflicts with passenger uses of rail and BNSF are 2 Class on carriers UP WA in Conflicts with passenger uses of rail • • • • • • • • • • • • • • • • • • • • • TRUCK Truck parking Truck Infrastructure and funding: roadway capacity not expanding fast enough to meet demand, existing funding method maintain existing roadways in can’t Fuel taxes or good state of repair. tolling? Low vehicle cost (easy for people to enter the industry). Flexibility in route choice. Provides door to service, convenient for distribution Speed limits only allow trucks to travel at a max speed of whatever is listed (if enforced) Subject to competition from passenger vehicles for infrastructure use Limited capacity per unit: legal limitations vehicles case Infrastructure: larger more roadway damage, vehicles cause congestion, industry does not control infrastructure by costs affected efficiency, Energy fuel prices time is often variable due to Travel congestion Limited trucking hours Not enough parking spaces for trucks hauling goods to the marketplace Overcrowding at trucking parking lots Border crossing Congestion at ports/terminals • • • • • • • • • • • • • • • • (continued) Current Issues Advantages (over other modes) Disadvantages (over other modes) Washington Within state