FINAL January 25, 2016 www.MoveTexasFreight.com Table of Contents 1.0 Introduction ............................................................................................................. 1-1 1.1 Texas Freight Transportation Overview ............................................................... 1-2 1.1.1 Economy ............................................................................................... 1-2 1.1.2 Population ............................................................................................ 1-3 1.1.3 Trade ..................................................................................................... 1-3 1.1.4 Energy Production and Development ................................................. 1-4 1.1.5 Rural Freight Transportation ............................................................... 1-4 1.1.6 Urban Freight Transportation .............................................................. 1-4 1.1.7 Multimodal Transportation System .................................................... 1-5 1.2 Purpose of the Freight Plan ................................................................................. 1-7 1.3 Organization of the Freight Plan .......................................................................... 1-8 2.0 Strategic Goals ........................................................................................................ 2-1 2.1 Establishment of Consistent Goals ..................................................................... 2-2 2.1.1 National Freight Goals ......................................................................... 2-2 2.1.2 TxDOT Strategic Plan ........................................................................... 2-3 2.1.3 Texas Transportation Plan ................................................................... 2-4 2.2 Texas Freight Mobility Plan Goals ....................................................................... 2-4 3.0 Economic Context of Freight Transportation Planning ............................................ 3-1 3.1 Freight and the Texas Economy .......................................................................... 3-2 3.1.1 Economic Development ....................................................................... 3-3 3.1.2 Economic Impacts ................................................................................ 3-5 3.2 Critical Texas Supply Chains ................................................................................ 3-9 3.2.1 Overview and Influences ..................................................................... 3-9 3.2.2 Supply Chain Examples .................................................................... 3-10 4.0 Freight Policies, Strategies and Institutions ............................................................ 4-1 4.1 Freight Policies and Strategies ............................................................................ 4-2 4.2 Freight-Related Institutions and Policy-Making Roles ....................................... 4-2 4.2.1 Texas State Legislature ....................................................................... 4-2 4.2.2 Texas Transportation Commission ..................................................... 4-3 4.2.3 Texas Department of Transportation .................................................. 4-3 4.2.4 Transportation Planning and Programming Division ......................... 4-5 4.2.5 Other Divisions ..................................................................................... 4-5 4.2.6 TxDOT Districts ..................................................................................... 4-6 4.2.7 Other Texas Agencies .......................................................................... 4-6 4.2.8 Private Owners ..................................................................................... 4-8 4.2.9 Partnerships, Advocacy and Other Public Institutions .................... 4-10 4.3 Freight Infrastructure Funding and Financing ................................................. 4-12 4.3.1 Federal Freight Transportation Infrastructure Funding and Financing ................................................................................... 4-12 i 4.3.2 State Freight Transportation Infrastructure Funding and Financing ........................................................................................... 4-13 4.3.3 State Freight Transportation Infrastructure Loan and Grant Programs ................................................................................ 4-14 4.3.4 Local, Regional and Targeted Freight Transportation Infrastructure Funding and Financing Programs ............................ 4-15 4.3.5 Private-Sector Investment ................................................................ 4-16 4.4 Statutory and Constitutional Constraints on Freight-Related Investments and Policies ............................................................................. 4-19 4.4.1 Use of Existing Transportation Revenue ......................................... 4-19 4.4.2 Transfer and Flexibility between Funding Sources and Categories ......................................................................................... 4-19 4.4.3 Funding Other Modes ....................................................................... 4-20 5.0 State Freight Transportation Assets ........................................................................ 5-1 5.1 Texas Highway Freight Transportation Assets ............................................... 5-2 5.1.1 Commodity Flows on Highway Assets ................................................. 5-4 5.1.2 International Border Crossings: Truck Freight ................................... 5-8 5.1.3 Highway Issues and Challenges .......................................................... 5-9 5.2 Texas Rail Freight Transportation Assets .................................................... 5-10 5.2.1 Commodities Carried on Rail Freight Assets ................................... 5-10 5.2.2 International Border-Crossing Rail Freight ...................................... 5-11 5.2.3 Rail Freight Issues and Challenges.................................................. 5-11 5.3 Texas Seaport and Waterway Transportation Assets ................................. 5-12 5.3.1 Port and Water Issues and Challenges ........................................... 5-15 5.4 Texas Air Freight Transportation Assets ...................................................... 5-16 5.4.1 Texas Air Freight Issues and Challenges ......................................... 5-19 5.5 Texas Pipeline Transportation Assets .......................................................... 5-19 5.5.1 International Border-Crossing Pipeline Freight ............................... 5-20 5.6 Other Freight Generators .............................................................................. 5-20 5.6.1 Texas Military Installations ............................................................. 5-20 5.6.2 Warehousing, Distribution and Industry Clusters ......................... 5-21 5.7 Texas Freight Network .................................................................................. 5-23 5.7.1 Texas Highway Freight Network ....................................................... 5-25 5.7.2 Texas Rail Freight Network ............................................................... 5-25 5.7.3 Texas Ports and Waterway Network ................................................ 5-26 5.7.4 Texas Air Freight Network ................................................................. 5-26 5.7.5 Texas Pipeline Freight Network ........................................................ 5-26 6.0 Condition and Performance of the State’s Freight System ..................................... 6-1 6.1 Highways ........................................................................................................... 6-2 6.1.1 Condition .............................................................................................. 6-2 6.1.2 Performance ......................................................................................... 6-8 6.2 Railroads ........................................................................................................ 6-11 6.2.1 Condition ........................................................................................... 6-11 6.2.2 Performance ...................................................................................... 6-11 6.3 Ports and Waterways .................................................................................... 6-12 ii 6.3.1 Seaport Conditions ........................................................................... 6-12 6.3.2 Waterway Conditions ........................................................................ 6-14 6.3.3 Seaport Performance........................................................................ 6-14 6.4 Airports ........................................................................................................... 6-15 6.4.1 Condition ........................................................................................... 6-15 6.4.2 Performance ...................................................................................... 6-16 6.5 Pipelines......................................................................................................... 6-17 6.5.1 Condition ........................................................................................... 6-17 6.6 Safety ............................................................................................................