TTI: 0-6891 Last Mile Package Delivery via Rural Transit: Project Summary and Pilot Outcomes Technical Report 0-6891-R1 Cooperative Research Program TEXAS A&M TRANSPORTATION INSTITUTE COLLEGE STATION, TEXAS in cooperation with the Federal Highway Administration and the Texas Department of Transportation http://tti.tamu.edu/documents/0-6891-R1.pdf Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA/TX-17/0-6891-R1 4. Title and Subtitle 5. Report Date LAST MILE PACKAGE DELIVERY VIA RURAL TRANSIT: Published: January 2019 PROJECT SUMMARY AND PILOT OUTCOMES 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Zachary Elgart, Kristi Miller, and Shuman Tan Report 0-6891-R1 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Texas A&M Transportation Institute The Texas A&M University System 11. Contract or Grant No. College Station, Texas 77843-3135 Project 0-6891 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Texas Department of Transportation Technical Report: Research and Technology Implementation Office September 2015–August 2017 125 E. 11th Street 14. Sponsoring Agency Code Austin, Texas 78701-2483 15. Supplementary Notes Project performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration. Project Title: Using Public Transportation to Facilitate Last Mile Package Delivery URL: http://tti.tamu.edu/documents/0-6891-R1.pdf 16. Abstract Rural transit districts and intercity bus carriers are an important link within Texas’ multimodal transportation system. Without such service providers, many rural residents that are transit dependent would be forced to either relocate or find other means of transportation. Furthermore, with continued growth of business to consumer e-commerce demand for package shipping services and rural areas face a particular challenge in finding efficient “last mile” delivery of goods (from freight drop to final destination). Rural transit districts operate demand response door-to-door service throughout Texas, providing critical connections to goods and services. The network of Texas rural transit districts may effectively bridge the last mile gap in package shipping from the freight drop point to the final destination by providing last mile package delivery services in cooperation with freight companies. Last mile package delivery service may present an opportunity for rural transit operators to diversify revenue sources and improve overall cost effectiveness while maintaining existing door-to-door service. This project researched the potential to address current gaps in existing package delivery service with the network of intercity bus and rural transit districts in Texas. Documentation includes best practices, challenges, policy implications, and the potential for revenue generation, and a guidebook. The guidebook is designed to inform rural transit operators of how to implement a package delivery service includes documentation of lessons learned from pilot package delivery services implemented as part of the research project. 17. Key Words 18. Distribution Statement Package Delivery, Bus, Package, Rural Transit No restrictions. This document is available to the Agencies, E-Commerce, Last Mile, Intercity Bus public through NTIS: National Technical Information Service Alexandria, Virginia http://www.ntis.gov 19. Security Classif. (of this report) 20. Security Classif. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 176 Form DOT F 1700.7 (8-72) Reproduction of completed page authorized USING PUBLIC TRANSPORTATION TO FACILITATE LAST MILE PACKAGE DELIVERY: TECHNICAL REPORT by Zachary Elgart Assistant Research Scientist Texas A&M Transportation Institute Kristi Miller Associate Transportation Researcher Texas A&M Transportation Institute and Shuman Tan Associate Transportation Researcher Texas A&M Transportation Institute Report 0-6891-R1 Project 0-6891 Project Title: Using Public Transportation to Facilitate Last Mile Package Delivery Performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration Published: January 2019 TEXAS A&M TRANSPORTATION INSTITUTE College Station, Texas 77843-3135 DISCLAIMER This research was performed in cooperation with the Texas Department of Transportation (TxDOT) and the Federal Highway Administration (FHWA). The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official view or policies of the FHWA or TxDOT. This report does not constitute a standard, specification, or regulation. The United States Government and the State of Texas do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of this report. v ACKNOWLEDGMENTS This project was conducted in cooperation with TxDOT and FHWA. The authors thank the TxDOT Project Monitoring Committee, Sonya Badgley, Kelly Kirkland, and Kris Dudley. The authors also thank members of the project team—Suzie Edrington, Jonathan Brooks, and Mark Szyperski—for their contributions, the public and private agencies who participated in the industry questionnaire and stakeholder workshops in Arlington, Austin, Odessa, and Pharr, Dave Marsh from Capital Area Rural Transportation System for presenting at the Austin workshop, and the TxDOT offices in Odessa and Pharr for hosting project workshops. vi TABLE OF CONTENTS Page List of Figures ................................................................................................................................ x List of Tables ................................................................................................................................ xi Executive Summary ...................................................................................................................... 1 State-of-the-Practice Scan ........................................................................................................... 1 Fact-Finding Questionnaire ......................................................................................................... 2 Rural and Intercity Bus Workshops ............................................................................................ 3 Guidebook ................................................................................................................................... 4 Pilot Package Delivery Service ................................................................................................... 4 Potential Future Opportunities .................................................................................................... 5 Introduction ................................................................................................................................... 7 State-of-the-Practice Scan ............................................................................................................ 9 History of Package Delivery in the United States ....................................................................... 9 Mid-1800s to Early 1900s ....................................................................................................... 9 Early 20th Century ................................................................................................................ 10 Late 20th Century .................................................................................................................. 10 Regional Package Delivery Companies .................................................................................... 11 Lone Star Overnight .............................................................................................................. 12 OnTrac ................................................................................................................................... 13 LaserShip ............................................................................................................................... 15 Eastern Connection ................................................................................................................ 16 United Delivery Service ........................................................................................................ 17 Golden State Overnight Delivery Service ............................................................................. 18 SpeeDee ................................................................................................................................. 19 U.S. Cargo ............................................................................................................................. 20 Greyhound Package Express ................................................................................................. 21 Amazon.................................................................................................................................. 22 Demand for Package Services ................................................................................................... 24 United States Postal Service .................................................................................................. 24 FedEx ..................................................................................................................................... 24 UPS .......................................................................................................................................