Impacts of Inland Ports on Trade Flows and Transportation in Texas

CENTER FOR TRANSPORTATION RESEARCH THE UNIVERSITY OF TEXAS AT AUSTIN Project Summary Report 4083-S Center for Transportation Research Project 0-4083: Impacts of Inland Ports on Trade Flows and Transportation in Texas The University of Texas at Austin TxDOT Top Research Innovations and Findings Award Winner- 2002 Authors: Rob Harrison, Jolanda Prozzi, John McCray, and Russell Henk October 2002 Impacts of Inland Ports on Trade Flows and Transportation in Texas: A Summary What We Did... operations and aid transporta- ternational trade processing tion planners asked to support locations. In addition to this The Texas Department of inland port operations. As the function, inland ports relieve Transportation commissioned private sector becomes more congested traditional ports of a research project in 2000, focused on globalization and entry, facilitate value-added summarized here, to defi ne effi cient global supply chains, services, and enhance local inland ports and review their inland ports are starting to and regional development. impact on trade flows and emerge in the transportation The second-year report quali- transportation in Texas. The community. Transportation fi es the role and benefi ts of research team was the fi rst planners need to recognize inland ports, provides a brief to define the term “inland that inland ports may also overview of the TxDOT high- port.” enhance multi-modal trade way planning and program- corridors. The classifica- ming process, highlights the tion methodology developed critical investments required builds on the management and the level of TxDOT sup- product life cycle concept to port that can expected as the create an inland port develop- inland port develop, consid- ment life cycle. The stages ers the impacts of trade and An inland port is a site lo- of the development life cycle trade truck fl ows on the loca- cated away from traditional can assist planners in devel- tions of inland port develop- land, air, and coastal borders oping strategies to facilitate ments, and fi nally, proposes with the vision to facilitate inland port developments and an evaluation framework and process international actions to best promote posi- that allows TxDOT planners trade through strategic in- tive transportation impacts. to review potential inland vestments in multi-modal Ultimately, it is believed port investment requests transportation assets and by that inland ports have the from a transportation plan- promoting value-added ser- capability to create local ning perspective. Given the vices as goods move through employment, enhance cor- multi-modal components of the supply chain. ridor efficiencies and thus inland port developments, it trade competitiveness, and is foreseen that the fi ndings The fi rst year of the study reduce both public and pri- of this study can also be used yielded a classifi cation meth- vate costs. The first-year to inform transportation plan- PROJECT SUMMARY REPORT odology to promote a better study recognized the impor- ners considering the location understanding of inland port tance of inland ports as in- of multi-modal terminals on Project Summary Report 4083-S – 1 – the proposed Trans Texas Cor- some ports were variations of research details the fi ve phases of ridors. long-established modal sites inland port development and the The fi nal and most important such as those on rivers and land key elements/activities that are product developed from this borders. The challenge to the expected from the proponents study is a guidebook designed researchers was categorizing or supporters of the facility, to- to help planners understand how these sites for inclusion in the gether with potential responses inland ports develop and how to transportation planning process. from the transportation planners accommodate inland ports into Researchers fi nally decided on at TxDOT district and central state transportation planning. a modifi ed “product life cycle” headquarters. Developers of inland ports who which is used frequently in busi- The research also demon- use the guidebook will better ness and marketing analyses. The strated the benefits of inland understand TxDOT’s project idea is that over the lifetime of a ports to society, private interests, development process and data site, there is a result (like traffi c and public agencies. Society can requirements when working with demand), which grows somewhat benefi t in the form of increased the department. By specifying slowly at fi rst and then, if the site employment, economic develop- the support that can be expected is successful, grows vigorously ment, and tax revenues. Private from TxDOT planners, the guide into a more stable phase. The re- sector benefits are mostly ac- is valuable to both TxDOT plan- sulting relationship is asymptotic crued from the fact that inland ners evaluating inland port proj- in nature and can be described us- ports offer a potential solution to ects and inland port developers ing the following fi ve phases: two seemingly opposing goals of preparing investments requests. I. Preparation supply chain management: a re- II. Establishment duction in inventory and reduced What We Found... III. Expansion transportation costs. Additional IV. Stabilization private sector benefits include The researchers noted the V. Decline/Innovation reduced uncertainty related to diffi culty in classifying the wide customs and border delays. variety of inland ports identi- The life cycle approach, from Benefi ts to state transportation fied throughout the world. It TxDOT’s perspective, is relevant agencies include an opportu- was found that the many sites in terms of the impact that the nity to leverage private funds for that claimed inland port status inland port site activities will investments/enhancements. varied substantially in physical have on the highway network. design and philosophy, as well If the result is truck trips gener- The Researchers as institutional and organiza- ated from the site, traffi c levels Recommend... tional strategies and ownership. will be relatively low when a However, it was quite evident that site is newly opened. As the The research shows those re- these inland port sites changed as site develops, traffi c will grow sponsible for promoting inland they grew and that these changes to a point in time when there is ports how best to interact with profoundly affected the needs a thriving transportation system TxDOT planning staff. It is rec- for transportation links. In some (usually multi-modal), generating ommended that TxDOT planners cases, inland port proposals were a variety of trips that will impact meeting with supporters of inland merely conceptual and, though both local and regional highway port projects read the evaluation perhaps having a sound intel- networks. The development life chapter of report 4083-2 to devel- lectual basis, had not developed cycle can be viewed both as a op relevant questions to guide the to a stage at which they could be planning tool for inland port discussions and aid the planning regarded as valid multi-modal proponents and an evaluation tool process. The research focused on facilities. At the other extreme, for transportation planners. The the road needs associated with an Project Summary Report 4083-S – 2 – Figure 1: Development Life Cycle of Inland Ports inland port and how such needs who demonstrate an understand- • Evaluate inland dry ports from impact the local and regional ing of the planning process, who a highway planning perspec- highway systems. It must be re- provide trade information and as- tive, and thereby strengthen membered that although TxDOT sociated traffi c forecasts, or who the Texas Statewide Transpor- works closely with other modal donate right-of-way or funding tation Plan. providers (like railroads), it is not for construction, will increase • Assist potential developers of responsible for infrastructure in- the probability of their project inland ports to better under- vestments in these modes and is being constructed in a timely stand TxDOT’s procedures and essentially focused on the provi- fashion (see 4083-2 and guide). data requirements when seek- sion and maintenance of high- The guidebook for inland ports ing department assistance. ways. Those expecting planning will be a valuable tool to: • Gauge the inland port’s impact assistance from TxDOT must • Stimulate development of on the department’s highway therefore constrain their interests inland ports, like Alliance network. to highways. Since traffi c needs (Fort Worth) and Kelly USA • Encourage private participation in Texas far outweigh the invest- ( San Antonio), which provide and assistance in expediting ment funds at the state’s disposal, transportation services and the TxDOT planning process all planning problems involve contribute to economic growth by providing resources, such as choice. Proponents who present on transportation corridors. land and fi nances. The latter the best case have a better likeli- • Assist in designing and oper- could reach levels in the hun- hood of success and may even be ating true multi-modal hubs dreds of thousands of dollars able to accelerate the planning with effective links to regional for larger sites. process. Inland port proponents modal networks. Project Summary Report 4083-S – 3 – For More Details... Research Supervisor: Rob Harrison, (512) 232-3113 email: [email protected] TxDOT Project Director: Judy Freisenhahn, P.E., (210) 615-5814 email: [email protected] The research is documented in the following documents: 4083-1 The Identifi cation and Classifi cation of Inland Ports, August 2001 4083-2 Inland Ports: Planning Successful Developments, October 2002 To obtain copies of a report: CTR Library, Center for Transportation Research, (512) 232-3138, email: [email protected] TxDOT Implementation Status July 2003 The CTR researchers have developed an "Inland Port Transportation Evaluation Guide." The guide provides TxDOT planners with a planning and evaluation tool that can be used when local offi cials and developers approach TxDOT districts for assistance in the possible development of an inland port.

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