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Regional Freight Mobility Conference Proceedings





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For information regarding the Regional Freight Mobility Conference,
contact:

Peter Beaulieu, Freight Mobility Program Manager
Puget Sound Regional Council
1011 Western Avenue, Suite 500 - Seattle, Washington 98104
(206) 464-7537 - FAX (206) 587-4825

For additional copies of these proceedings, contact:

Information Center
Puget Sound Regional Council
1011 Western Avenue, Suite 500 - Seattle, Washington 98104
(206) 464-7532 - FAX (206) 587-4825





Puget Sound Regional Council
     PSRC

Foreword

On September 13, 1994,The Puget Sound Regional Council and its
public/private Regional Freight Mobility Roundtable sponsored a
conference addressing regional freight mobility in the central
Puget Sound regional gateway. The Regional Council is the
Metropolitan Planning Organization (MPO) for the four-county
central Puget Sound region, including four counties and over fifty
cities and towns' the gateway port cities of Seattle and Tacoma
among them. Also included on the MPO Executive Board are the
Washington State Department of Transportation (WSDOT) and the
Washington Transportation Commission (among the Conference
panelists). Conference co-sponsors were the WSDOT, the Federal
Highway Administration (FHWA), and the Federal Maritime
Administration.

In 1991 new federal transportation legislation (the Intermodal
Surface Transportation Efficiency Act, ISTEA, of 1991) dramatically
reshaped the government support system for transportation
infrastructure. Money would no longer flow solely to highways
through state transportation agencies. After ISTEA, overall
transportation planning and federal funding is to be cleared
through MPOs like the Puget Sound Regional Council. That means
rapid transit, commuter rail, and passenger bus systems are to be
considered along with freight transportation. Put another way, the
needs of commerce are examined alongside a range of other mobility
programs. Both forum and format have been changed. Private parties
and public agencies, both, are encouraged by this emerging
partnership in mutual understanding and targeted actions in the
central Puget Sound region.

We should note, however, that ISTEA itself is simply catching up
with broader events. In these proceedings, reference is made to a
proposed National Transportation System (NTS), yet to be defined,
but broader than the National Highway System focus dating back to
passage of the Highway Act of 1956. Second, during the past 15
years, we have seen national deregulation of the trucking industry
(1978), the airlines (1978), the railroads (1980) and shipping
(1985). And third, while ISTEA moves toward federal funding
flexibility, the era of ample subsidies is now behind us even as
mobility demands increase. Federal involvement is supplying the
framework, but is only a piece of a larger package.

We in the Puget Sound region have taken a step toward becoming more
broadly acquainted and toward working together. We are asking
ourselves what freight mobility means to us in this context, and in
terms of practical actions. These are important questions to our
families and businesses, our neighborhoods and region, and our
state and nation.

These proceedings report part of a growing and ongoing regional
partnership-the Regional Freight Mobility Conference. The federal
co-sponsors have asked to make these regional proceedings widely
available to MPOs and state agencies in other parts of the country.
We are happy to do this. To assist this wide audience, we have
added several notes in the text (in italics) to explain local
references not likely to be understood outside of the region or
Washington State. We are pleased with this step in what we intend
as an ongoing partnership. In making these proceedings available to
others, we hope to add to a growing list of local and regional
initiatives from which we have also learned and taken
encouragement.

                             Dan O'Neal
          President, Tolan-O'Neal Transportation Logistics
             Chair, Regional Freight Mobility Roundtable

1011 Western Avenue, Suite 500 - Seattle, Washington 98104-1035 
(206) 464-7090 - FAX 587-4825





                  Regional Freight Mobility Conference - Proceedings

Table of Contents


     Executive Summary                                             2

     Introductory Remarks                                          4

     Session I - Private Sector "Town Meeting                      5

     Session II - National Perspectives                           15

     Session n III - Strategies for our Pacific Rim Region        20

     Session IV - Synthesis                                       25

     Closing Remarks                                              29

     Appendix                                                     31





                 Regional Freight Mobility Conference - Proceedings 

Executive Summary

The Roundtable

The Regional Freight Mobility Roundtable consists largely of
shippers, carriers and third parties active within the central
Puget Sound region. This includes shipping lines, railroads,
truckers, and the Ports of Seattle,Tacoma and Everett which are the
continental entry points for many large eastern markets. It also
includes shippers and receivers (the buyers of transportation
services) such as Boeing, Darigold and Safeway. The Roundtable was
convened under the auspices of the Seattle Economic Development
Council, working with similar councils in adjacent counties (and
with Harvey Consultants, Inc.). It meets on a bimonthly basis to
focus on issues and possible actions, in support of the new
Regional Council freight mobility program.

The Conference was an opportunity to test the resulting Action
Package matrix with an enlarged roundtable. The matrix identifies
four kinds of actions to address Roundtable identified issues in
the region: (a) institutional, (b) operational., (c) infrastructure
and, as part of this, (d) financing. The matrix serves in part to
provide input for the multimodal Metropolitan Transportation Plan
(MTP) required under the federal Intermodal Surface transportation
Efficiency Act (ISTEA) of 1991. In the Puget Sound region, the MTP
(required of all MPOS) is linked under state planning legislation
to a regional growth management strategy termed VISION 2020 and
adopted in 1990. Coordinated local comprehensive plans are required
under the state Growth Management Act (1990-1991).

The Conference Format

The nearly 160 registered Conference participants represented a
diversity of transportation carriers, shippers, third party
interests, and public sector policy makers and planners. Many of
these also attended the national American Public Ports Association
cooperatively scheduled to meet the previous day in Seattle. (This
served as an outreach session for the USDOT for the possible
National Transportation System (NTS)). Leading federal attendees
presented symposium ideas at the Regional Freight Mobility
Conference. The Conference program consisted of four plenary
sessions comprised of a town meeting, followed by three panel
presentations, with questions and answers among the panelists and
attendees:

- A regional town meeting The opening session was led by leaders
from the private sector. (The following two sessions were
introduced by public sector panelists.) Panelists from the freight
industry were Burlington Northern Railroad, and United Parcel
Service. Also on the panel, representing the port districts, was
the Port of Seattle.

-    The federal context. Presentation on the National
Transportation System were given as a setting for regional freight
mobility efforts: by the WSDOT, the Maritime Administration, and
the American Association of Port Authorities. (While the Conference
focused on regional concerns, the opportunity was taken to consider
both local and regional implications.)

-    State and regional cooperation. The State of Washington
adopted freight mobility policies in December 1993, and is
preparing a multimodal transportation plan for a range of
facilities within the state. Panelists included a policy and staff
member from the Regional Council and two members from the
Washington Transportation Commission.

-    Synthesis. Interactive discussions among panelists and all
participants followed each of the three earlier Conference
sessions. The final session was an





                 Regional Freight Mobility Conference - Proceedings 

opportunity for the public and private members to revisit earlier
points and, together, to offer new questions and insights.

The Roundtable Message

The sessions lead to consideration by the enlarged group of
participants, of a regional Action Package proposed by the
Roundtable. The three principle messages of the Action Package are:

-    A collaborative and action-oriented focus. People from
different public agencies and the private sector must get better
acquainted. This 'technique' should be used at the beginning of
problem definition and planning, rather than only later in strategy
implementation.

-    Systemic and project level actions. The approach should work
directly with shared performance expectations and then candid and
courteous pinpointing of the issues, and the development of
practical solutions. The issues appear to fall into four
categories: institutional, operations, infrastructure (and as part
of this, financing.

- Information. While action oriented, the partnership also should
be well informed. The context for identifying and understanding
issues requires creative approaches to data assembly (e.g.,
relevant maps and numbers) and interpretation.

The "relational data base", transferable to other regions,
includes: the awaited national Commodities Flow Survey (1995), the
national railroad waybill sample, state surveys and roadway tonnage
classification data, a regional survey administered by the
Roundtable, data derived from the County Business Patterns (in
combination with Dun and Bradstreet locators), and forecasts

of containerized cargo movements completed by the port districts
within the region. The Regional Council is working with its
consultant to fit these data sources to its computerized
transportation modeling capability, and a recently added geographic
information system.

To simplify, the point is made in the Conference that the simple
message of ISTEA is less to "rearrange the boxes" than it is to
learn to "color outside of the lines". The Action Package is an
effort to think creatively and in practical terms, and then to act
effectively on specific regional freight mobility solutions.





                 Regional Freight Mobility Conference - Proceedings 


                        Introductory Remarks:
Secretary Sid Morrison, Washington State Department of
Transportation

Secretary Morrison introduced the conference as an opportunity for
individuals from the private enterprises directly responsible for
delivering products to meet fact-to-face with policy makers. He
stressed that all of us must do a better job for freight mobility.
The economic vitality of our Pacific Rim state is directly tied to
movement of goods.

The National Highway System (NHS) is now under consideration by
Congress. But what is even more important is the multimodal
National Transportation System (NTS) and its relationship to
freight. Federal policy makers will be looking to Roundtables
around the country for input to this process.

The theme of the Intermodal Surface Transportation Efficiency Act
of 1991 (ISTEA) is multimodal. Its weakness is where the modes come
together. There is interest in moving to modes other than highway.
We need collaboration and interest in partnerships among varied
transportation players. Interest by the business community is most
welcome. It is WSDOT's mission that Washington shall be second to
none in the mobility of its people and products. This goal requires
some reorganization. Formerly, WSDOT concentrated its attention on
state-owned Facilities such as ferries and bridges. It has added to
that, facilities for which the state has an "interest", such as
those related to port access.

Secretary Morrison outlined the day's proceedings as starting with
a town meeting (Session 1), this to be followed by comments from
federal, state and regional officials (Sessions II and III), with a
final synthesis session (Session IV) bringing together the insights
drawn from these private and (then) public panels.

(In the following sessions, Sid Morrison and Dan O'Neal shared
moderator responsibilities for this informal and interactive
Conference.)





                 Regional Freight Mobility Conference - Proceedings 

Session I - Private Sector "Town Meeting"

Moderator.- Dan O'Neal
Tolan-O'Neal Transportation and Logistics; Chair, Freight Mobility
Roundtable

Dan O'Neal (Chair of the Interstate Commerce Commission during
deregulation of the trucking industry in 1978) commented that prior
to ISTEA there were narrowly defined funding sources. Each mode
(e.g., transit, auto) had its own source of federal money, such as
the Federal Highway Act (1956) for roads. Now federal funds are
potentially more flexible, and there is no single source. In
addition, freight and passenger modes of travel are being required
to respond to community plans required under state law (the State
Growth Management Act, 1990-1). In this region the responsibility
for programming many types of transportation improvements falls to
the Puget Sound Regional Council (PSRC). As a result of the changes
brought by ISTEA:

- We in the freight industry will have to become closer to the
community and understand more about planning, and

- The reciprocal side to all of this is that elected officials will
need to recognize the importance of the movement of goods and
commodities and the role that freight plays in developing and
maintaining a community.

Part of what the PSRC has done is to collect data in order to
better understand freight and goods movement in this community. It
has also established a Roundtable of private sector firms which has
generated very specific ideas (the "action packages referred to
later in the Conference) for improvements for the flow of goods in
and through this region.


Panelist, Keith Christian, Acting Managing Director
for the Marine Division, Port of Seattle

Although ports are public agencies,they behave much like private
organizations. They have large customers which must be served in a
competitive environment, coast-to-coast or regionwide. A port has
investments in expensive infrastructure lasting many decades and is
served by the transportation network around it. Customers look for
the best transportation system to serve them.

The Ports of Seattle and Tacoma are a national asset. Together they
rank second nationally in terms of the volume of container cargo.
With a combined annual volume of two million TEUs (twenty-foot
equivalent units); together they rank tenth in the world. Seventy
five percent of all inbound cargo is destined for inland points.
Ports are interested in the topic of freight mobility because the
operation of the rail and highway transportation system supports
and protects Port investments.

The new federal legislation (ISTEA) places freight on a par with
passenger transportation. Joint projects with other jurisdictions
and organizations are being undertaken. For example, the Port of
Seattle and American Presidential Lines (APL) are jointly funding
an overpass of railroad tracks leading to container terminal
planned for a new part of the Seattle waterfront. On-dock rail
yards (for direct ship/rail transfer) will reduce the number of
drayage trucks otherwise on the roads. The goal is the seamless
movement of goods. The region and state should give more priority
to these types of projects.

ISTEA also has fostered more planning coordination among ports in
the region. ISTEA also gave voice to the ports through its
commissioners sitting on PSRC's Executive Board and its (advisory)
Transportation Policy Boards. Ports, acting through the Washington
Public





                 Regional Freight Mobility Conference - Proceedings 

Ports Association, and WSDOT regularly conduct studies of
transportation needs every five years. A model source of detailed
information is their 1991 Washington Ports and Transportation
System Study.

While recognizing its greater role in planning, the Port of Seattle
sees specific constraints to improving freight mobility:

*    Funding: While other modes have guaranteed and designated
funding sources under ISTEA, there are no similar arrangements for
freight mobility. The absence of dedicated funds, and regional
project scoring criteria heavily biased against freight projects,
are barriers to improvements.

*    Physical and Institutional Constraints: Regional project
ranking criteria, used in allocating federal funds, are weak with
regard to freight needs. The Port is making large capital
investments. One is a $250 million expansion for APL (to be paid
back by APL over time). This is a large risk because the Port is
depending g on the surface transportation system over a long period
of time. Productivity gains of infrastructure investments are
beginning to level out. The major remaining obstacles to intermodal
efficiency arc landside access barriers and coordination
inefficiencies. These include congestion on access routes between
port terminals and near dock intermodal yards, congestion on
connections to the interstate highway system, and the coordination
of landside and seaside operations (e.g.hours of operation),
particularly as these affect rail.

*    Conflicting statutes: One institutional constraint in ISTEA is
that it discourages funding of road projects which would expand the
capacity for single occupant vehicles (SOVs). While this policy may
be effective for working toward air quality and energy conservation
goals, increasing congestion levels without increases in capacity
will result in trouble for road freight mobility. Truckers must use
SOV lanes. They do not have alternatives such as high occupancy
vehicle (HOV) lanes. Higher transport costs, longer transit times,
and lower reliability jeopardize just-in-time delivery methods.

Suggested solutions to enhance truck mobility:

- Designate exclusive facilities for trucks, such as access ramps,
freight only vehicles lanes on regional highways, and local truck
access routes.

-    Provide FOV (freight only vehicle) lanes, and truck access to
existing HOV lanes during off-peak periods.

-    Build rail grade separations to increase truck mobility and
train operating speeds in congested corridors such as in the area
south of the Kingdom (a domed stadium located in an industrial area
south of the Seattle business area, and the intersection of
Interstates 5 and 90, and the Seattle station for AMTRAK).

Rail access issues and constraints include:

- On-dock rail yards elevate the significance of rail freight
mobility to one of national economic significance. Critical line
segments should be included in the National Transportation System
for preservation and for expansion.

- Expansion of marine-rail operations and on-dock facilities
require new and improved connections with mainlines. Double track
access to the new part of the Seattle harbor is needed. More rail
traffic on at-grade arterials brings conflict with city traffic.

-    North-south and east-west mainline capacity is directly tied
to the Port's future ability to handle greater volumes. One option
is to reopen Stampede Pass (a BN east-west rail line closed in
1983, following market adjustments ushered in by rail deregulation
under the Staggers Act of 1980). There is concern over commuter and
passenger rail expansion at the cost of reduced rail freight
capacity.

Seamless movements require better coordination and communication
between sea lines and rail systems. Ports need to work to make that
better





                 Regional Freight Mobility Conference - Proceedings 

In conclusion, ports have a number of concerns over truck and rail
access to their terminals. These issues should be considered in
developing the National Transportation System, the Statewide
Multimodal and the Metropolitan Transportation Plans. These plans
should outline a simple process for adding or revising the linkages
between port facilities and the rail and regional high-way system.
Plans should be flexible enough to respond to the Port's physical
expansion, to institutional changes, and to technological
innovation. The planning process should be a flexible system.

Panelist, Dave Hatzenbuhler,
Assistant Vice President, Corporate Development, Burlington
Northern (BN)

The American rail freight structure is a complex network of large
and small independent private companies. It is national in scope
and an integral part of the North American transportation network;
a part of the logistics pipeline. Over the past 15 years, the
industry has seen a rationalization. Short lines or small
operations have combined with the larger ones or, in some cases,
ceased operations. Dave developed four overall points:

Private companies: As private companies, railroads are responsible
for their own expensive capital investments. Class I railroads in
1993 generated $29 billion in revenue and reinvested $4.5 billion
(the Class I railroads operating in the region are BN and Union
Pacific). Assets owned by the American rail system total in excess
of $60 billion. Companies operate 124,000 miles of rail network in
the United States and employs 192,000 people. This network is
divided into sectored private ownerships.

To maintain this system, $2.8 billion in 1993 went for maintenance
and improvement of the railbed. Companies invested another $1.4
billion in locomotives and rail cars. American railroads are a
critical element of the international trade network. They provide
for the efficient movement of coal and grain as well as for
containers in double-stack rail cars. In 1993 the BN generated $530
million in revenue from coal and $140 million from grain.

A market item: The railroad structure is an extensive complex
arrangement of connections, interchanges and partnerships that
provide national shipping opportunities. Through their
relationships railroads can link virtually any routing. There has
been a fundamental change in the industry during the last 15 years
resulting from deregulation under the Staggers Act (1980).
Railroads have become market driven and sensitive to customer
needs. It has not been easy to become efficient. Being market
sensitive and operating efficiently have brought rationalization.
We have focused on corridors and growth while shedding track
mileage. A lot a track is no longer in operation. Railroads could
not afford to operate light density low margin branch lines. In
some cases, short line operations began to serve specific
customers.

Efficiency:    Railroads have been able now to focus capital in
more efficient and more profitable lines important to the national
transportation network. This has created an opportunity to grow. By
January 1994, American railroads began to face capacity issues. Not
just for track, but in other components: equipment (locomotives and
rail cars) and qualified labor. Rationalization resulted in train
crew reductions and many employees leaving the industry.

Pinch points: Critical pinch points create significant problems to
efficiencies. Most pinch points are in urban areas, at port-rail
interlinks or getting through urban areas. As an old industry
(similar to the ports), the railroads' infrastructure and
facilities were located and built long ago for an older technology
and before congested urban development and urban encroachment. But
equipment and the urban environment have evolved. Railroad cars are
now segmented units, over 300 feet long, carrying double stacked
containers from all over the world. Road crossings were originally
built at either end of rail yards.





                 Regional Freight Mobility Conference - Proceedings 

Today urban development surrounds them and there is friction
between the public and railroad operations concerning the volume of
traffic at grade crossings as well as noise. Railroads do not have
the money or political ability to correct these problems.

It is helpful to visualize the example of a pipeline or hose to
describe the rail-port connection. The fire hose analogy shows a
four inch fire hose coming in from the inland rail network, a four
inch fire hose coming in from ocean going vessels and a one inch
garden hose connects the two through the urban area and the ports.
Only so much can be put through the smaller hose. How do you expand
that small hose? The social, environmental, and ecological problems
associated with dealing with grade separations in urban corridors,
plus the large number of communities and interest group that are
involved, puts the issue beyond the point where railroads can
handle it alone. The costs are too great.

Private investment issues: Railroads recognize problems caused by
rail operations to urban communities, but operations are the
business they are in, 24 hour a day and 365 days a year. The
railroads view the inland network as their responsibility and have
invested in it heavily. They can be the best judge of where capital
investment needs to go. The Pacific Northwest is an anchor to the
Burlington Northern (BN) system, but this is a 22,000 mile system
and BN mdt put all its capital investment here. These are difficult
decisions for prioritization. For example, the two heaviest gross
ton miles in the world are located in Nebraska.

How are we to deal with the urban conflict issues? Pacific
Northwest ports are essential for access to international trade.
The costs of improvement are prohibitive to the railroads alone.
There is an important role for private/public partnerships,
especially for addressing urban pinch point issues. The PSRC and
similar groups in Washington offer the best opportunity for
facilitating all of the voting agendas, and dealing with the
significant issues of growth, impacts of mass transit, ability for
efficiently moving freight by rail, and pulling together other
agendas to come to a final resolution of what the future will look
like. It can pull diverse groups together.

The National Transportation System (NTS) offers an opportunity to
facilitate growth and to foster better relations with communities.
The caution that the rail industry has to ISTEA or other funding
mechanisms is that railroads are leery that any direct funding to
them might begin the process of (federal) re-regulation. The
industry is leery of the conditions that may be attached to
funding. It wishes to remain private and responsible for its
business. But this caution does not preclude finding ways with
public or quasi public organizations to address issues of capacity,
efficiency and growth opportunities. We are seeking a win-win
approach.

Dan O'Neal, Moderator, concluded that many transportation problems
are local in urban areas but have large national impacts.

Panelist, Bill Knox, Public Affairs Manager, United Parcel Service

United Parcel Service (UPS) is the largest transportation network
in the world. It is an intermodal company employing 313,000 persons
worldwide to deliver 12 million packages a day serving 185
countries.

Freight needs must be identified early in the planning process. UPS
concern over ISTEA has been that lots of planning is being done for
the freight industry by planners who do not have any direct
experience in the freight industry. As a customer of transportation
services, UPS is working with planners to protect what they have
developed over the years by reacting to infrastructure needs. In
many cases, UPS has been unaware of the problems of which planners
speak.

UPS moves 2,500 trailers a day by rail. Any package traveling in
excess of 500 miles on the ground is going by rail. Overnight air
service operates the largest fleet of freight dedicated aircraft in
the nation.





                 Regional Freight Mobility Conference - Proceedings 

UPS's concerns deal with urban delivery and land use problems.
Downtown high-rises are looked at as a vertical city. We are
concerned that there may be only one loading dock for that city,
and an inadequate one. Curbside management or lack of it is
important. Congestion is another problem. System wide, if each
driver is delayed for five minutes a day, it costs UPS a total of
$40 million/year. Delay is a large problem for UPS.

Freight mobility in ISTEA affords us an opportunity to discuss a
number of transportation directions and needs. ISTEA provides a new
vision. Freight movers, transit operators, local and state
planners, and shippers are a few of the interest groups and
stakeholders included in ISTEA. Coupled with Clean Air Act
Amendments, we are beginning to approach a new way of
transportation planning that recognizes that the well being of our
country is linked to our ability to move people and freight. Our
efficient, innovative, and low cost transportation systems enable
our country's companies to compete in the global marketplace. We
must continue to pursue the promise of increased efficiency,
coordination in planning, selection of projects, and maximizing
existing capacity with a sense of reality.

Barriers remain to the realization of the promise of ISTEA.
Progress in eliminating barriers varies from state to state. The
delivery of raw materials and components to manufacturing locations
for just-in-time production, moving products to warehouses and
shipping finished goods to their markets quickly and efficiently,
are powerful economic processes worthy of expansion and enhance-
ment. Suggestions for doing this:

-    Identify freight problems in the planning process and treat 
     them with the importance of passenger movement.

-    Make investments to maintain the existing infrastructure.

-    Build on existing intermodal partnerships enabling use of the
     transportation system to its fullest potential.

-    Build the infrastructure to support the growing needs of
     telecommunications and logistics management.

-    Establish performance measures and criteria for all aspects of
     the transportation network (public transit as well as private
     commute trip reduction) and explore all opportunities for
     efficiency gains now that regulations have been lifted.

-    Explore private alternatives (e.g., jitney service) to
     complement existing public transit operations.

-    Address congestion not only for its high cost to business but
     for air quality and other environmental concerns. Traffic
     demand management (TDM) products have resulted in only very
     marginal improvements to air quality. These programs must
     carry performance criteria and targets that must be met, or
     the regulation should be subject to automatic sunsetting.

-    Perhaps, work stoppages that affect transit operations should
     be considered as an equity violation under ISTEA, as these
     also affect the related air quality standards behind the ISTEA
     legislation.

-    Subject all projects receiving federal dollars to performance
     goals and measures regardless of mode. So many of these
     projects are not living up to the potential for improvement.
     Explore reasons for failure. ISTEA holds nothing sacred or
     beyond review.

-    Planning can actually be an obstacle to participation. Provide
     for greater stakeholder input into the decision making
     process. The planning process can be a hurdle that prevents
     many people from being involved. Difficult rules, lengthy
     studies, and slow decision making are some of the culprits.

The ultimate success of transportation systems management depends
on partnerships between government and industry, among the various
transportation providers, among nations, and the stakeholders. We
must seek transportation system solutions, not specific mode based





Regional Freight Mobility Conference - Proceedings

solutions. Intermodal systems management can overcome the obstacles
to the efficient movement of people and freight. We must provide
for the movement into, through, and within regions and improve the
transfer between modes. Intermodalism is the door to the future,
and planning partnerships will be the key.

Questions and Comments
by   Panelists and Conference Participants

1.   Comment: There are six management systems required under
     ISTEA, including Congestion Management Systems (CMS). The -
     speaker requests the participation of panel members on CMS
     programs which address issues such as linking air quality and
     land use.

2.   Question: Are there any studies of NAFTA (North Atlantic Free
     Trade Alliance) impact on the Puget Sound Region?

Bill Knox. The Center for the New West and the Volpe Institute have
done some studies of the overall impact of NAFTA on transportation.

Paul Chilcote (Port of Tacoma): A study in Portland (Oregon) found
positive benefits on the economy. The amount of growth in local
companies was viewed as very bullish. Connections to the Puget
Sound region are unclear.

Sid Morrison:  WSDOT is involved with the neighboring states of
California and Oregon and is looking for involvement from British
Columbia (B.C.) for looking at the 1-5 corridor. Other north-south
corridors in the country are teaming up to look at the through
passage of goods.

3.   Question: Has just-in-time inventory turned our transportation
     system into the warehouses of the 1990's? (Sid Morrison)

Dave Hatzenbuhler: Yes and no. A lot more inventory is in-transit
in transportation vehicles. But customers demand a schedule be
associated with the delivery of that product. In the former sense
of warehousing, freight is not sitting around for a week or two or
three. There is more planning and fulfillment of requirements.

Bill Knox: Yes with time-sensitive materials. Flooring costs are
too high. Efficiency calls for minimizing flooring and warehousing.
For small businesses especially, UPS is the pipeline for their
product. The question for planners is that as we build new
infrastructure, what provisions are being made for logistics
management? Better information will allow for reductions in travel
by the more efficient use of information. Benefits of logistics
management include reduced vehicle miles traveled (VMTs), improved
air quality, and quicker delivery.

Keith Christian: Shippers and shipping lines want to move boxes
through the ports as quickly as possible. The Port is not acting as
a warehouse. The amount of time from when an import box arrives at
the port to when it leaves the port has been reduced. More goods
are moving though facilities than ever before. A counter example is
a large toy manufacturer using more warehousing in order to match
up production and delivery schedules throughout the year.

Dan O'Neal: While there is demand to keep goods moving, many
warehouses serve as short term collection points for all kinds of
commodities that arc shipped long distances in volume and then
distributed locally or regionally. Shippers look for the cheapest
form of transportation, and if that involves a warehouse, then it
will be used. The movement of goods is not becoming the warehouse
for all industries. Yet, automobile manufacturers now use railroads
as part of the assembly line. The decision is dependent on the
industry and on the costs.

4.   Question: (a) Is taxation a barrier and is it inequitable? (b)
     What do you think of forming a Puget Sound Port Authority to
     end competition among local ports? (c) What is your opinion
     concerning the Regional Transportation Authorities





                 Regional Freight Mobility Conference - Proceedings 

(RTA's) upcoming decision on three alternatives for a high capacity
transit system? (The RTA options for regional  high capacity
transit differ on the mix, location, timing and costs of service
alternatives, a funding referendum is planned for early 1995.)

Bill Knox: Taxes are not a barrier to conducting business, but do
pose an equity issue. just between Oregon and Washington there are
very different taxation systems for the trucking industry. In
general, UPS feels that fees should be used for the purpose of
their collection, highway use. It supports efforts to reduce
congestion with tax dollars. There is no taxing uniformity across
the country. It is a way and cost of doing business. Taxes are not
a barrier to movement, rather they pose an equity issue.

Keith Christian: There are many opinions on the issue of a unified
Seattle -Tacoma port authority. The negative position is that the
region needs the level of competition between the ports to provide
the facilities and services that will attract or keep the business
in this region. Portland and British Columbia are getting more into
the container business, but this region is better located than
Portland and has better rail service than B.C. The other side is
that as one economic entity, a unified port, could compete
successfully for container business. It could be more financially
self-supporting and grow a cargo base above current levels. As a
personal opinion, a unified port could compete successfully in
container business and do a better job of expansion investment. It
could improve dealings with large customers and expand a customer
base. Puget Sound has the advantages of rail service and ocean
access over its competition. A unified port could charge more than
in the current competitive situation.

Dave Hatzenbuhler: There are real opportunities, either as a
unitary system or a partnership of some sort. This region is viewed
as a single load center, like Los Angeles and Long Beach. Buyers of
port services like having the two ports in competition.

Concerning the RTA and passenger rail service, the Burlington
Northern has been a supporter of mass transit proposals for the
Seattle-Tacoma area, but has significant issues and concerns over
the implementation of passenger rail service on BN track or that of
adjoining Union Pacific. I talked about the pinch points in the
urban area. Adding 50 commuter trains a day without significantly
addressing the capacity requirements of those trains will have a
detrimental effect on moving freight effectively into and out of
the Seattle-Tacoma area unless an investment program accompanies
the institution of commuter service.

The density of operations would reduce the hours per day that
freight can be moved. Even at Chicago, where we have four parallel
tracks, the commuter service reduces freight activity from 24 hours
a day, to 19 hours. We must anticipate impacts in advance in order
to accommodate freight operations. Can it be done? Yes, but it has
to be done right. It can be done if improvements are made. UP and
BN are competing for the passenger service but the final
arrangement has yet to be resolved.

Bill Knox: UPS uses primarily surface streets. It is concerned over
the traffic impact and truck delays caused by increased rail
traffic on at-grade crossings. Transit use often decreases, at
least as a share of total travel. For RTA improvements to have an
impact, aggressive market incentives are needed to reduce SOVs
(single occupancy vehicles).

Keith Christian: Freight mobility capacity needs to increase.

Dan O'Neal: To summarize, anything that relieves congestion is
something freight will favor. There need to be assurances that
there will not be increased conflicts between truck and rail
movements and that these considerations be part of the RTA program.

5.   Question: What is the importance of Stampede Pass to the
     region and to moving freight out of the region? (Sid Morrison)





                 Regional Freight Mobility Conference - Proceedings 

Dave Hatzenbuhler: BN working with WSDOT is looking at the
viability of opening Stampede Pass. (Stampede Pass is an east-west
route over the Cascade Mountains, closed in 1983.) The decision is
up in the air since a cost-benefit analysis of this and other
options is underway. It provides an opportunity to split freight
traffic along the corridor at Auburn (south of Seattle) and send a
portion over the pass and not have it operate through the King
Street Station area (an AMTRAK station immediately south of the
Seattle business district and a portal for a rail tunnel under the
Seattle, central business district). This option has significant
implications for freight flow and capacity. Other freight flow
issues to make that happen include a reorganization of facilities.

6.   Comment: There is an opportunity for education and cooperative
     partnerships, and to take advantage of an
     information/decision-making infrastructure already in place.
     Participants may be aware of the professionals and public
     officials meeting monthly all over the state in MPOs and RTPOs
     (Regional Transportation Planning Organizations are enabled
     under the state Growth Management Act, and generally double as
     the MPOs under the federal ISTEA.) developing regional
     transportation plans. There are seats available on the boards
     and technical committees of these organizations. We must
     encourage the private sector to get involved with planners and
     local officials and take advantage of the opportunity to share
     information and make the process work as it was intended.

7.   Question: By the removal of economic regulations, have the
     systemic barriers to freight movement efficiency been removed,
     or are there some remaining? Can regional planning address the
     remaining issues? More specifically, are economists right that
     a remaining barrier is the incorrect pricing of personal
     travel?

Dave Hatzenbuhler: Deregulation from the perspective of the rail
industry has been a positive step allowing greater competition.
There is no systemic barrier to competition. The rail industry
builds and maintains its own network.

Bill Knox: Yes, there are existing barriers, but their
identification is not dear. One example may be demand management
programs that, at best, are test products. The modeling and actual
results in California of these programs have been very poor. Take
for example commute trip reduction (CTR) requirements; the air
quality payoff for CTR is only one percent in California. The
investments have not paid off to date. The costs and benefits of
programs have not been weighed and adequately considered.

Keith Christian: Systemic barriers the port sees in providing
facilities necessary for making the system work better are in the
processes of building and development caused by environmental and
land use regulatory delays. We will meet requirements as long as we
know what they are.

John Ficker, Roundtable member, commented from the floor that firms
buy what customers buy. He suggested that congestion pricing is not
the only creative funding option, and that, within a complex
market, it would affect supply chains far back into the production
and delivery system.

8.   Comment: Manufacturers must respond to customers needs.
     Conference participants are urged to get involved to provide
     the practical side of transportation demand instead of just
     the theoretical. Policy makers should involve manufacturers,
     distributors, wholesalers and retailers to understand the
     impact of their decisions.

9.   Question: Intrastate truck deregulation is upon us (as part of
     the aviation re-authorization bill, signed on August 26,
     1994). What will be the impact of this change? (Sid Morrison)

Bill Knox: Intrastate regulation was expensive. Rates, routes and
services are now regulated by the market. The marketplace will be
the regulator, as it should be.





                 Regional Freight Mobility Conference - Proceedings 

The impact of deregulation will be ultimately better service to the
public at a higher level of efficiency as exhibited by interstate
deregulation. UPS has worked successfully in states that are
regulated and others that are much less so.

Dan O'Neal: Looking at it from and using the interstate experience,
deregulation has increased the ability of truckers and railroads to
respond to the marketplace and to customers, and has created a
greater capacity for competition which has allowed us to compete
globally. There will be winners and losers. Those truckers with
experience in a deregulated climate and/or those truckers which
have been more responsive to customers will do better than those
that have not. The buyers of services will do much better

10.  Question: Can the panelists identify projects relying on new
     technologies and define their roles in advanced technology,
     such as in data collection and monitoring?

Bill Knox: UPS is a major consumer of technology. The goal is more
efficient delivery. This has led to the use of hand-held package
data collection with cellular link-up and vehicle tracking. UPS is
also working on a new computer dispatching system. There are
several other information applications as well.

Keith Christian: The Port of Seattle along with Port of Tacoma has
tried to encourage information systems for data exchange between
their customers, customs, the Port and other parties involved in
trade. Tenants, which arc shipping lines, are responsible for the
technology of running terminals. They have made improvements that
arc more significant than the cranes and other physical facilities.

Dave Hatzenbuhler: The rail industry has and continues to go
through a technological revolution. Most significant is the
acquisition of AC (alternating current) powered locomotives with
more pulling power, greater efficiency, and a cleaner burn,
Information systems have been developed for each railroad's own
internal use.

They are not usually compatible with those of customers and other
partners such as truckers. Now there is an initiative, initiative
service management, to improve communications among parties.

Another information technology application is positive train
separation (PTS), a pilot program in the Northwest. It provides
extremely accurate train location (within a few meters). The result
will be an increase in capacity.

Bill Knox. Another innovation is a new double-stack rail car
capable of carrying four 28-foot containers on one conventional
rail car.

11.  Question: Aviation is usually included in discussions of
     intermodal transportation. In Washington State, 95 percent of
     the air freight generated comes out of the Puget Sound region.
     Is there a problem in air freight in this region? Should it be
     included in this discussion? The state should address this
     issue, because it is not just a local problem.

Bill Knox: Air freight is time sensitive and involves an intermodal
move by truck.

King Cushman, PSRC: Air transportation is not part of the ISTEA
planning process although all surface transportation modes have
been integrated under ISTEA, and must consider access to airports.
The MPO does not program funds for aviation. It may be the time for
Congress to bring aviation into the ISTEA package.

12.  Question: This question is about demand management. What are
     the constraints on moving freight either by truck or rail, in
     off-peak evening and night hours? (Maggi Fimia, King County
     Council)

Bill Knox: For most industries this is not feasible. In California
this proposal was studied and it was shown that trucks make up only
3 percent of total traffic. Costs to change delivery times would be
extremely high.





                 Regional Freight Mobility Conference - Proceedings 

Dan O'Neal: Customers demand service during normal working hours
although many truckers would prefer to operate during less
congested periods. The transportation sector cannot control these
decisions. In today's competitive environment, carriers must be
sensitive to customer needs.

13.  Question: Funding increases are needed. Yet a gas tax
     increase-such as even a 10 cent/gallon sales tax on gas-is not
     very likely. What does the panel think of proposals for
     transportation funding, given the huge problems?

Dave Hatzenbuhler: Rail mass transit is very expensive to build,
equip and operate. Generally speaking, some government funding is
needed.

Bill Knox: Traditional funding mechanisms are not enough. The gas
tax can go just so far and other options need to be explored. Gas
tax revenues will be declining. For example, Oregon is using a
transit utility tax.

14.  Question: Are there more environmentally friendly
     transportation technologies that should be used such as
     natural gas and electrification?

Bill Knox: UPS was experimenting with innovative vehicles but they
have been recalled due to safety concerns. UPS supports incentives
for using alternative fuels and is using compressed natural gas
(CNG) vehicles in this country and liquid natural gas (LNG) ones in
Canada. The technology does not apply to the larger 18-wheel
tractor-trailers.





                 Regional Freight Mobility Conference - Proceedings 

Session II - National Perspectives

Keynote Address: Michael Huerta,
Associate Deputy Secretary and Director,
Office of Intermodalism, USDOT

The federal Department of transportation (DOT) congratulates the
PSRC and others for convening this working partnership with the
freight community. It is a model to be followed by other parts of
the country. DOT's views on freight transportation under ISTEA and
how freight will be considered in the future are the topics of this
address.

Americans place a high value on mobility. Personal mobility
includes travel to work as well as a significant leisure market. In
a 1989 study, "Taking a Ride" was one of the most frequently cited
recreational activities. One sixth of household expenditures go
towards travel. Freight mobility includes moving materials to
processing and goods to world markets. There is an estimated three
trillion ton-miles of activity each year -or 11,000 pounds per
person. We move huge quantities, on-time and door-to-door.
Americans are consuming more products each year and manufacturers
and distributors are reducing inventories.

Intermodal trips are increasing. It has become infeasible or
inefficient to rely on one mode for the entire trip. Combining
modes allows shippers to take advantage of each during different
segments of a commodity's trip. Legal and regulatory constraints
that blocked intermodal trips have been removed. The 1980's brought
major changes to the freight industry. The Staggers Act, the Motor
Carrier Act and the 1984 Shipping Act changed the domestic and
international transportation markets. Published rates were
abolished. Carriers could now ship door-to-door with a single bill
of lading.

In the Northwest the changes in freight flows from Pacific Rim
countries to the Eastern United States are evident. Before, cargo
moved through the Panama Canal. This was a slow method of travel,
but it worked. By the 1970's, there was movement across the new
"land bridge". This method was faster but handling costs were
higher. The technological changes, low-slung rail cars allowing
double-stacked containers, changed the economics of
transcontinental transport. Between 1986 and 1992, the number of
U.S./Asia loaded containers traveling through the Panama Canal grew
20 percent (from 552,000 units to 661,000 units), or three percent
per year. During the same period there was a 120 percent increase
(from 880,000 units to two million units), or a 15 percent annual
increase, in double-stack traffic across the rail land bridge.
Shippers selected intermodal over the Panama Canal.

The changing pattern is also evident in port traffic statistics. In
1980, the Port Authority of New York and New Jersey (PANYNJ), was
the largest American container port. By 1986 it was overtaken by
the Ports of Los Angeles/Long Beach. Between 1990 and 1993, PANYNJ
experienced flat growth white Los Angeles/ Long Beach grew 11
percent. Today, the Ports of Los Angeles and Long Beach are each on
their own larger than PANYNJ.

By 1993, collectively the ports of the Puget Sound region ranked
second in the nation behind those in Southern California.

All of this is due to reduced regulations. To stay competitive, the
region must anticipate future changes in freight. Advantages to
strive for are: (1) seamless intermodal travel with quick and
minimal handling; (2) close proximity to transportation modes; and
(3) closely coordinated paperwork. The benefits of intermodal
travel must overcome its handling and time delay costs.

ISTEA offers a partial solution to freight problems by giving
greater flexibility to decision makers and giving





Regional Freight Mobility Conference - Proceedings

freight a place at the table. Because ISTEA does not explicitly
permit funding of rail improvements we need to explore how to make
rail programs feasible and qualified for funding. Benefits of such
programs may accrue beyond the region to the state or the nation.

The Department of Transportation's Commodity Flow Survey will be
complete in 1995, the first since 1977. It will show flows through
the transportation system. The National Transportation System (NTS)
provides a planning framework for a national transportation network
dealing with the current system to foreseen needs. White papers
describing the NTS concept and criteria are available from the DOT.
The Department is interested in hearing the ideas of the audience.

What the next ISTEA (to be reauthorized in 1997) will be is not yet
clear, but the DOT wants input from the freight industry. Problems
in the current legislation are being identified and the DOT is
striving to work together with industry to find solutions.

Moderator: John Horsley
Deputy Assistant Secretary
Office of the Assistant Secretary
for Governmental Affairs, US DOT

The DOT is co-sponsoring this conference with the WSDOT and the
PSRC and the Roundtable for three reasons: the persistence of Dan
O'Neal for convening this meeting; the recognized leadership of
WSDOT and PSRC in conducting technical studies and collaborating
with the freight industry on policy boards; and, from the series of
meetings on ISTEA last year, there rose the need to elevate the
priority and the perception of freight mobility's importance to the
economy.

Citizen perception of how goods, even as common as groceries, get
to the shelf in the supermarket is evidence that they do not
understand the chain of events leading to efficient cost reductive
freight delivery that make our groceries affordable. For ample, in
Boston, community opposition lead to the removal from the proposed
National Highway System of a three-mile link between the interstate
highway system and the Port of Boston.

The DOT heard the concerns of a BN representative in Chicago. Now
that freight is included at the decision making table, will anyone
listen to the issues and concerns of the freight community? It is
good to be included, but little or no funding is flowing from ISTEA
to make freight-related improvements.

Panelist, Joan Yim,
Deputy Administrator,
Maritime Administration

The proposed National Highway System unveiled by Secretary Pena
demonstrates a new intermodal team approach at the federal level.
The mainland system links to the international waterborne commerce
network. Over 1.9 billion metric tons of domestic and foreign
products are carried through all types of waterborne commerce
including coastal commerce, inland waterborne commerce, and deep
water.

Several comments can be made about this mornings session:

-    The need for education. A regional freight council and other
     forums as has been formed here can serve as a model around the
     country. The MPOs have a great role to play in this area. The
     Maritime Administration can supply educational materials on
     the role of waterborne commerce in intermodalism.

-    Technology development. The maritime industry has been at the
     forefront of developing the technology that allowed
     intermodalism to begin: development of containers and
     couplings to carry double-stack rail cars. The Maritime
     Administration has doubled it research and development funds.

-    The need for port development plans and their linkage to
     Metropolitan Planning Organization plans. Needed





                 Regional Freight Mobility Conference - Proceedings 

are better communications and ties.to community planning efforts.

-    Environmental regulations. The Maritime Administration will be
     establishing a new division to deal with the environment. The
     Secretary's strategic plan calls for us (a) to not overlook
     the impacts of projects on the environment, and (b) to
     consider the impacts of proposals in planning future
     development in various modes. Transportation plans should
     consider impacts on the environment before the approval
     process in order to avoid delays late in the process.

-    Lack of union representatives at the conference. Outreach
     meetings such as this should include representatives of labor
     unions. Maritime labor unions are important to supporting the
     U.S. flag merchant marine and to the flow of freight at ports.
     (Unions are included on the Roundtable, but while scheduled,
     were later unable to attend as a Conference panelist.)

There is much to be gained from community based planning and these
types of meetings and dialogue.

Panelist, Eric Stromberg,
President, The American Association 
of Ports Authorities

The Association recognizes the role of the USDOT in outreach
meetings such as the one yesterday (the Conference was scheduled
back-to-back with an NTS outreach session with the association, on
September 12 in Seattle). Secretary Pena has been a strong leader
in transportation from the port perspective. The port community is
very pleased to become more visible, as exemplified by Michael
Huerta in the Office of Intermodalism and the responsibilities of
that office. Work has begun on the portfolio of programs to be the
responsibility of that Office.

The NTS is still out of focus and the ports are not sure what will
be included. The process of creating a NTS has created national-
local tension. This is an important forum in building consensus.
The ports and the freight community have not done a good job of
bringing together everybody who has a stake in the outcome of an
efficient transportation system. Ports tend to talk to themselves;
shippers and labor are critical players to add to the process. The
process should be dynamic not static. A mechanism needs to be in
place to respond to changes in international markets, changes in
technology, and changes in national, regional and local demands for
transportation services.

The Association is a hemispheric organization with members from all
regions of the Americas. Most of its work is focused in Washington
D.C. because U. S. public ports represent the largest block of
members. Like other ports, Washington State's 70 public port
authorities are creatures of local incentives, needs and priorities
since there is no national system. Ports are set up to accommodate
whatever is carved out for them by the state or city in which they
arc located. Generally under the umbrella of transportation
facilities, responsibilities can include a broad array of
functions. Moving cargo through the port platform as quickly as
possible is a fundamental responsibility but others may include
world trade centers, public access parks, salmon ranching, ferry
systems and tunnels. Dry water ports in Washington State take
advantage of the role of ports as economic engines.

Ports were on the periphery of highway bills for many years. Before
ISTEA so many of the things that affected port efficiency were
beyond its control. Waterside channels needing dredging were one
constraint. On the landside, there was increasing traffic
congestion outside the port gate. Port investments could be
potentially wasted. Port efficiency is not defined by how fast you
can move a box over the side of a ship. It is more accurately
reflected by the time it takes to move from oceangoing vessels, in
and out of ports, and onto a rail or highway system to inland
destinations. ISTEA has the right language:

     It is the policy of the United States to develop a National
     Intermodal Transportation System that is economically





                 Regional Freight Mobility Conference - Proceedings 

     efficient and environmentally sound, provides the foundation
     for the Nation to to compete in the global economy, and will
     move people and goods in an energy efficient manner (ISTEA,
     Sec. 2).

But beyond the policy statement it favors the institutions already
in place, i.e. highways, that understand how transportation
infrastructure is prioritized and funded. The ports do not think
the promise of ISTEA has been fulfilled.

The pipeline is the best metaphor for defining priorities. Public
dollars and investments should go to the pinch-points, i.e., the
two inch pipeline in a system of 14 inch pipelines representing
ocean vessels and transcontinental rail and highways. Today the two
inch pipeline is urban landside access to our nation's ports. For
many years there has been a lack of recognition of port problems.
At the federal level, for example, modal administrators were not
communicating or coordinating. Port efficiency relies on intermodal
connections which were not being addressed. The Office of
Intermodalism is to address issues of importance to ports. From the
port perspective, these are the tasks that need to be accomplished:

-    Implement a NTS that recognizes the needs of freight.

-    Freight considerations must be pulled into the local decision-
     making process. Are MPOs set up to handle all the new
     responsibilities of ISTEA including freight issues? Ports need
     to be more involved in the MPO process.

-    Adequate data are in scarce supply and must be generated to
     understand the benefits of freight projects and investments.

-    Broadcast the importance of freight transportation.

The Intermodal Commission established under ISTEA has had many
outreach meetings. Its recommendations fall into some general
common sense categories:

-    There needs to be an integrated transportation system. The
     holes in the current system are the connectors, and that is
     true for passengers and freight.

-    Funding needs to be addressed with innovative approaches and
     there needs to more adequate infrastructure investment.

-    The structure of government needs to be examined at all levels
     to ensure that barriers to intermodal movement can be removed
     and that decisions can be more coherent and coordinated.

Copies of the Intermodal Commission report Toward a National
Intermodal Transportation System will soon be available, and
presented to Congress on September 29,1994. (Anne Aylward Executive
Director for the Commission was on the agenda for the Conference,
but was unable to attend due to the drafting requirements of the
Commission's recommendations.)

Panelist, Frank Kruesi,
Assistant Secretary for Transportation
Policy Office of the Secretary USDOT

This presentation describes what the USDOT is trying to do with the
development of a NTS and how it relates to ISTEA and the next
ISTEA.

The development of the NTS is part of a larger transportation
policy. Many of the USDOT's current administrators are based in
local and state government and understand the need for practical
and useful programs and regulations. Goal Number One of Secretary
Pena is to de America together in an effective intermodal
transportation system. The NTS is to achieve that mission. The NHS
is the first part of that effort. Congress has before it
legislation to designate 160,000 miles of road that carry the major
share of the country's freight and passengers as the NHS. A much
larger task will be the development of a NTS. Initial thoughts on
draft criteria for the NTS have been published in the Federal
Register and the USDOT is going out to gather





                 Regional Freight Mobility Conference - Proceedings 

information, advice, opinions and criticisms by users of the
transportation system. The USDOT is also trying to better
understand how all the different elements do or need to tie
together.

Today's large manufacturers, such as The Boeing Company (a member
of the Roundtable), rely on parts from all over the world and on
all modes to get to those parts to factories for assembly. This
supply system can require the development of specialized
containers, specialized rail lines and unique transport methods. At
Boeing, this is one example of how transportation systems need to
work together to allow for a plane. to.. be manufactured. Decision
makers must be able to understand local needs.

How can the federal Government be of assistance? Staffs of the
different modal administrations have begun to work together at the
federal level to understand common problems and how linkages are
vital to the flow of goods and people. The first iteration of NTS
should be completed by September 1995. The following step will be
getting the USDOT and the nation to think about the next ISTEA The
current one has as a broad goal including intermodalism. Has this
promise been fulfilled? Three years is too short a time frame to
determine the answer to that.

Major advances have been made:

-    People are now talking about intermodalism as something that
     matters and that is vital for the economy. How we make the
     needs of ports and shippers count remains a difficult task and
     this component could be part of the next ISTEA.

-    There has been an important shift downward in planning
     decisions to MPOS. This shift requires everyone involved to
     understand the MPO process. It requires ports and others to
     think through planning questions within the context of the
     needs of the region. It requires a sustained dialogue
     requiring lots of work among all stakeholders.

There are some matters where the MPO process determining what is
important at the regional scale does not get to the question of
which elements are of national significance. We must begin to
address how these will be identified and what happens to them.
Freight movers can help the policy makers think this through. Which
lines, facilities and connections matter? How are they analyzed?
How do we understand them? What is the national responsibility? How
are they developed? Once the NTS elements are identified, how is
this communicated back to the local and regional level? How is the
development of these elements funded? These are difficult questions
to answer.

An important issue surrounding transportation investment decisions
is the environment. Environmental review will be of critical
importance as requirements of federal law. The example of Los
Angeles demonstrates the role of state and federal responsibilities
for implementation plans to reduce air quality problems. Envi-
ronmental issues cannot be ignored. The NTS is our mechanism for
taking environmental needs and mandates into effect.

Every business, port, and government agency is seeking more return
on its investments. The USDOT put out a call for financing
proposals that would be structured around creative financing. It
received over sixty proposals from across the country that included
public/private partnerships, different mixes of federal funds, and
more innovative techniques. Many involved intermodal projects.

ISTEA has started something profound. It requires transportation
modes to recognize that they are not isolated. It requires us to
understand our needs and how they relate to the broader
transportation needs of a community, a region, a state, the nation
and the world. We seek a system that is more efficient, cheaper,
safer and more environmentally conscious. ISTEA has provided the
impetus for this change in thinking.





                 Regional Freight Mobility Conference - Proceedings 

Session III - Strategies for our Pacific Rim Region:
WSDOT/Regional Council/participants

Panelist, Connie Niva,
Washington State
Transportation Commission

The Washington State Transportation Commission consists of seven
citizens serving staggered six year terms. Democratic and
Republican parties are equally represented. The Commission serves
as the "board of directors" for the WSDOT (Ms. Niva also sits on
the Executive Board of the PSRC). The Commission establishes
statewide policies and ensures that the WSDOT carries them out.

The future has changed for decision-making. It is becoming
increasingly difficult to build consensus. Public participation and
environmental reviews complicate the process. Even after reaching
program decisions, funding and the physical space must be found.

The State Transportation Policy Plan process promotes developing
policies and action strategies to achieve a balanced multimodal
transportation system. The Plan is used to establish program
direction and funding for the Department of transportation and
other state agencies. Freight mobility is one of three areas of
policy and recommended strategies included in the 1994 report to
the Legislature.

Transportation goals supporting economic opportunity are to 1)
provide access that is safe, reliable, affordable and convenient to
industrial, commercial and intermodal sites for people, goods and
services; 2) support domestic and international trade; 3) support
Washington's business and industry and 4) reduce the impacts of
congestion on freight mobility. Action strategies have been
developed in four areas: planning coordination for freight
transportation; freight transportation information needs, improving
access for freight, and moving freight in containers.

A draft of the Statewide Multimodal Transportation Plan has been
recently published. It is based on the policies and strategies
identified in the Policy Plan. The State Systems Plan is also well
underway in some detail. The parts that are state-owned include
highways, ferries and small airports are the areas the state
actually has control over. This part is of utmost importance
because all of us, including businesses, rely on that system
working well.

The Statewide Multimodal Transportation Plan for state-owned
facilities includes (a) service objectives describing the essential
services the system should provide, (b) deficiencies in meeting
these objectives, and (c) proposed "fixes" have been identified
around the state. The state's regional DOT offices are now meeting
with regional planning organizations, such as the PSRC, to
negotiate the final proposed solutions and the affordability of
those approaches that will appear in the state's first 20 Year
Plan.

The Transportation Financing Policy Plan (TRANS2000). Future
financing will be tight to accomplish all the proposals. The
Commission has set a priority on highway maintenance, preservation
and safety improvements (also the highest priority under ISTEA).
These arc all investments that will help freight mobility. Also in
the Plan are projects to support economic initiatives; improvements
such as upgrading state highways on the freight and goods
transportation





                 Regional Freight Mobility Conference - Proceedings 

system to have all weather surfaces capable of handling legal loads
year round. In this Plan it is envisioned that there would be four-
lane limited access highways on routes where transport result in
over 10 million tons of goods a year. This is called the T-1
system. Some of the overpasses on the Interstate system do not have
adequate clearances. The Plan calls for these structures to be
modified sometime over the 20 year horizon. It would be a mistake
to stop with highways (a hierarchy of lesser ton routes is also
proposed).

The WTC is branching out into the "State interest" system which
includes other modes that the state does not own but which are
equally important for the seamless transport of freight through
this state. It also needs to take a look at international freight
mobility tied to trade by supporting negotiations that cut border
crossing delays. The Commission and Department arc aggressively
pursuing passenger train service. The ridership is very good on the
train service between Seattle and Portland, a good indication for
the future. Essential rail capacity to handle future freight
mobility needs also has to be addressed. Marine ports rely on
critical connections to inland rail systems.

Distributed at this conference is the draft Statewide Multimodal
Transportation Plan. This draft includes all modes. At this time
the WTC does not have all the answers as to how to handle all the
needs. The Plan analyzes and articulates the state's interest in
all of the modes redefining service objectives. The audience is
encouraged to review and respond to the enclosed survey. How do we
transition from a 20 year plan to an action agenda? This is the
current challenge facing the 'WTC. Sorting revenue available in the
short term and determining how much more is needed to achieve the
transportation system that we want in the future is the mission of
an effort called Trans 2000. Aubrey Davis will talk about this.
WSDOT staff and commissioners are here today to work in partnership
with you.

Panelist, Aubrey Davis,
Chair, Washington State
Transportation Commission

The challenge for the State Transportation Commission, the
Legislature and the Governor is how to turn these plans into
reality recognizing the limitation of our financial system.

-    forecasts: A basic part of our transportation problem is the
     growth in Washington's population. In the last 25 years the
     state has grown by 1.9 million people. That is over a 50
     percent increase from 1970 levels. The state's transportation
     infrastructure has not kept up. The congestion experienced
     today in people and goods movement underscores that fact. The
     U.S. Census predicts a statewide growth of 2.7 million people
     during the next quarter century. There will be 8 million
     people living in Washington in 2020 instead of today's 5.3
     million. Half of these newcomers will move into the state and
     half are natural increases from the current population base.
     The challenge is how to develop and manage a transportation
     system to handle the transportation needs of this expanding
     population.

-    Financing overview: If we were to meet level-of-service
     standards set at modest levels on the state owned system
     (highways, ferries and small airports), it would require an
     expenditure during the next twenty years of $27 billion. This
     estimate is based on route by route analyses and work with
     regional planning organizations. Approximately $ 1 0 billion
     is available from current resources. Of the state's 23 cent
     gas tax, about one-half or 11 cents goes to state needs, and
     11 cents goes to cities and counties, and I cent to the state
     ferry system. (The ferry system in Puget Sound is the largest
     ferry system in the United States.)

-    Priorities: The Transportation Commission has established its
     list of priorities. Maintenance, preservation, safety programs
     to protect the facilities that we have use up all the monies
     from existing sources. There isn't anything left over for new
     capacity





                 Regional Freight Mobility Conference - Proceedings 

     projects. In addition, the System Plan presupposes two things
     happen: 1) the state Growth Management Act works (the GAM
     involves growth boundaries and, hopefully fully reduced public
     spending for infrastructure and 2) the Regional Transit
     Authority (RTA) happens (in the Central Puget Sound region,
     proposed rail service to be funded through a regional
     referendum in spying of 1995, could reduce the alternative
     need for even more additional state highway lanes.)

Historically additional cents have been added to the gas tax to
meet funding needs. The Commission and the System Plan recognize
that the day has past where the gas tax and the projects it can
fund can solve our transportation problems. Road needs are
enormous: HOVs (high occupancy vehicle lanes) and farm-to-market
roads which need firming up for carrying heavier loads are real
needs but we must cover all of these costs. We cannot replicate
projects of the past, such as building another 1-5. We have got to
find new ways for people to travel.

The Commission is going to the public and asking them about the
problems. A series of meetings was held in June throughout the
state. These were very well attended. This fall, meetings will be
held asking the public how to pay for improvements. A
local/regional needs assessment with cities and counties has been
included. The Multimodal Transportation Plan is out for discussion
now. A Transportation Financing Policy Plan (TRANS 2000) has been
underway for a year. In November a proposed biennial budget goes to
the Legislature and the Governor.

The WTC has developed a menu of needs matched to available revenue
sources, including potential tax increases. The state gas tax is
flat, meaning it does not increase along with the economy. If the
state gas tax had increased with the economy it would be 36 cents/
gallon instead of the current 23 cents. If adjusted to reflect
increases in gas mileage, it would be 49 cents today. Should the
tax be indexed in the future? At the next round of public meetings,
the WTC is asking which items of expense we ought to incur and what
taxes should be levied to pay for them. Total expenses must equal
total revenues. Should we support the development of high speed
intercity rail? Should we support local high capacity regional
transit? Should we improve freight rail? How should these programs
be paid for? The WTC is going to the people to ask their opinions
on needs and taxes and will be guided by what they hear.

Panelist, Martha Choe,
Vice-Chair, Regional Council 
Transportation Policy Board

For this region when we talk about transportation we are really
talking about trade, since our state is one of the most trade
dependent states (The largest share of this trade- roughly 60
percent-is Boeing aircraft, involving both a national/
international transport network with some 20,000 suppliers, and an
intraregional network among the several Boeing facilities in the
central Puget Sound region. In addition, the Ports of Seattle and
Tacoma combined surpass New York and New Jersey in total traffic
and are second only to Los Angeles and Long Beach in North
America.) Trade opportunities translate into jobs and economic
growth for our region.

To provide some background information, the PSRC is a governmental
agency representing the four counties of King, Pierce, Snohomish
and Kitsap, and 73 cites in which reside nearly 3 million people
and 1.5 million jobs. The PSRC is a cooperative venue composed of
representatives of counties, cities, transit agencies, ports, the
state DOT, in addition to the private sector. The PSRC also serves
as the MPO and is therefore required to meet certain state and
federal requirements in planning land use and transportation. The
PSRC has recently focused on Vision 2020, a "blueprint' to guide
the integration of regional transportation and development with a
set of regional policies and a transportation plan.





                 Regional Freight Mobility Conference - Proceedings 

Vision 2020 advocates a clear separation of urban and rural areas;
preserving rural areas and protecting open spaces in urban areas.
One of its goals is to achieve an improved urban form by focusing
development in centers, concentrated areas of residential and
commercial use. The transportation system is critical to connecting
the centers. Through incentives the plan encourages reduced
reliance on single occupancy vehicles by providing alternatives.

The Metropolitan Transportation Plan or MTP is the transportation
element of vision 2020. The are many requirements being met by the
MTP: ISTEA - federal planning and funding, CAAA- federal and state
Clean Air Act Amendments, GMA- the state Growth Management Act
requiring comprehensive and regionally coordinated plans linking
transportation and land use development (etc.), and HCT- high
capacity regional transit planning (the responsibility of the RTA,
referred to above). A draft MTP will be released for public and
agency review and comment in December. The MTP goes before the full
General Assembly generally consisting of all local elected official
in the region) for adoption in March 1995.

The MTP is all encompassing and challenging.The most difficult
challenge of the MTP process is financing. Anything in the MTP must
be consistent with the timing, sources and phasing of the financing
plan. Non-motorized transportation for the first time has a place
at the table along with high occupancy vehicle projects and the
RTA. Freight and goods are also part of the MTP Required is a
balance among freight and passenger rail operations, highway users,
pedestrians and cyclists, all the while considering air quality
standards. Marine ferry operations need connections to public
transportation and pedestrian facilities. Congestion pricing must
address issues of geography, tax base, and social equities.

Right now we have more questions than answers. We are fortunate in
this area to have collaboration and coordination among the players
in regional transportation and land use.

Panelist, Peter Beaulieu,
Freight Mobility Program Manager, 
Puget Sound Regional Council

The final panelist was asked by moderator O'Neal to cast his
remarks as a lead-in to the final Synthesis session. He opened by
noting that discussions here today have covered the industry,
federal, state and regional points of view. From these we can pull
together three very simple points of common interest.

The first is that as transportation policy makers and planners we
are being asked to think in a new transportation language, and that
is "freight". It is a different mode with its own characteristics
and information requirements than those commonly addressed by
transportation planning of the past.

Instead of land use we are talking about economic structure within
and outside of the region. Instead of passengers going through the
system during the peak periods we are talking about logistics
systems linking industries and delivery systems for just-in-time
deliveries. Instead of passenger infrastructure we are talking
about freight infrastructure. Both are intermodal but operate
differently. Instead of auto traffic flow, we are talking about
trucks, rail and air and how they are tied together.

We are talking about satisfying a slightly different set of
performance measures: reliability, time, cost and safety. How many
transportation models for personal mobility give sufficient
attention to the so-called nonrecurring incidents that-by some
estimates account for nearly half of all delay? This is the most
important performance objective of freight mobility: reliability.

Second, if we think in terms of freight transportation planning,
then we are talking about systems-and systems that operate at
different scales-rather than projects. Mr. Beaulieu displayed a
series of overheads showing the railroad network at the national
scale, at the state scale, and then at the regional scale (an
anchor





                 Regional Freight Mobility Conference - Proceedings 

segment of the BN system, recalling Dave Hatzenbuhler's comments).
As a second example, a hierarchy of proposed truck freight routes
within the region has been geo-coded onto the geographic
information system (GIS) used by PSRC. This type of information can
be used to compare freight needs to the congestion points are in
the highway system (e.g., as indicated by high volume-to-capacity
ratios).

Within the region, the highway and rail systems were displayed on
one GIS map, together with deep ports and air cargo airports (see
figure in the Appendix). The rail system runs through and out of
the region. The scale for thinking and planning for freight runs
from the highway intersection level, to the regional level and on
to the national level. Pinch points can occur anywhere in the
system. This approach is very different from that previously
undertaken. Freight is a layered system with overlapping modes:
roads, rail, intermodal ports, airports and deep water facilities
and operations.

-    third, rather than a plan, we have an Action Package. The
     Freight and Goods Mobility Roundtable, chaired by Dan O'Neal
     has been working on identifying issues. They are not all
     infrastructure. Some are institutional, operational, and
     financial. From the problems identified we have worked into
     the possible solutions and these are identified in the Action
     Package for this region. (See the Appendix for a brief
     executive summary, and a matrix display. This serves as an
     index to a cross-referenced text and supporting inventory of
     concrete issues or problems.)

Examples of the freight mobility problems identified by the
Roundtable include: (a) operational difficulties with port access
in the area around the Kingdom; (b) the larger and related mixed-
rail corridor and its (multimodal) relation to commuter rail; (c)
highway corridor gridlock as solutions to one freeway corridor
relocate congestion onto another (a complexity not to be overlooked
in Major Investment Studies required under ISTEA guidelines); (d)
including freight within

the priorities of the MPO regional funding program; and more
broadly, the need to fit both environmental and freight mobility
features into the same compact region, for example, with regard to
specific truck routes and neighborhoods.

Proposed solutions in the (distributed) Action Package address each
area of concern and may be the responsibility of the state, the
region, local government or the private sector. Recommendations at
the state and regional levels include: (a) specific grade separated
crossings, (b) funding packages for rail planning (with planning
funded, possibly, from the same state source now used exclusively
for High Capacity Transit planning; (c) continued partnership with
the freight community in planning, and (d) the continued collection
of data about freight. At the local level, suggested action items
include such items as (e) jointly preparing Design Guidelines to
influence the development of activity centers from a freight and
delivery point of view (and, for example, to be reflected in the
Pavement Management System required of state DOTS, under ISTEA).

The challenge of ISTEA is to look even beyond the rearranged and
now mingled federal funding categories and programs under ISTEA. We
need to think, together, first of the concrete issues in our area,
and then of practical and systemic actions. These actions depend
upon, and can lead to, a world of new partnerships for both
planning and implementation. Federal or public funding is only a
wedge in a larger package. Can the different parties, centered on
well-selected issues, collaborate in strategies that combine our
different interests and responsibilities? The region is an
intersection rather than a boundary. Can we "color outside of the
lines"? We would like to hear the views of Conference attendees--
this expanded Roundtable--on the proposed regional Action Package.





                 Regional Freight Mobility Conference - Proceedings 

Session IV - Synthesis

Questions and Comments
Panelists and Conference Participants

1.   Comment: The Freight and Goods Roundtable in the central Puget
     Sound region has been working extremely well. The idea should
     be applied throughout the country.

Paul Roberts, Transmode Inc., Regional Council Consultant.Having
done some work in Columbus, Ohio it is interesting to note that
people in Columbus are more concerned about freight movement in
Seattle than people are here. They rely on the efficient operation
of the inland rail system and its connection to deep water vessels.
How can the federal government help make the case that the access
corridors to the Port of Seattle are of national significance and
that improvements to these corridors should be addressed in the
NTS? Shouldn't there should be money available to help on problems
that are of importance to the country as a whole?

Michael Huerta:     We do not have a definitive answer for that.
About Columbus, their freight transportation planning effort ("the
Inland Gateway") began in the private sector. They are looking at
their competitiveness as a distribution center and the ability of
their transportation system to handle the expected rates of growth
for that region of the country. They are concerned about costs
incurred by companies in Ohio stemming from transportation delays
on the west coast. New information is being generated about the
costs of transportation problems.

In the post-ISTEA era the question of decision making roles is
still being sorted out. The federal governments interest should be
limited to things genuinely in the national interest, although that
determination is not fully agreed upon.

-    On one hand, the interest could extend to corridors of trade
     that are moving freight between major trading regions of the
     world and the interior of the country, thereby responding to
     market demand and flows. Under this scenario, the government
     would be less concerned about specific facilities.
     Alternatively, the federal government should be concerned
     about urban congestion since that is the principle problem
     relating to goods movement.

-    In meeting with MPOs at the national level it was suggested
     that the movement of people and things between and within
     metropolitan areas was of primary importance and that states
     boundaries were artificial.

-    States had a different point of view. They see a role in
     balancing the many interests of urban, rural, recreational and
     other users. Some suggest going beyond states to groups of
     states forming regions in the country, i.e.. the Northwest.
     The roles need to be sorted out before specifics are worked
     out.

ISTEA established a very clear relationship between planning and
transportation decision making by creating a framework for regional
and state transportation planning considerate of local priorities.
The NTS is trying to extend that framework on planning and
priorities to the national level to get a sense of national
priorities. If federal funds become available for mitigating local
problems of national significance, it should not be a way to allow
jurisdictions to go around the regional and state planning and
priority framework. However ISTEA is all about eliminating
earmarking. A national fund would work against that flexibility.





                 Regional Freight Mobility Conference - Proceedings 

Sid Morrison:  The NHS Plan submitted by the State of Washington
was worked through with MPOs and Regional transportation Planning
Organizations (RTPOs). There is extensive cooperation between the
state and regions here in Washington.

2.   Comment: By mingling the urban transportation system with the
     interstate highway system we created the urban congestion
     problems that we have today. Regional connectors that went
     through the cities bogged down in urban congestion. If the
     systems were separate we would have less problems today. What
     can we learn from this?

Sid Morrison:  The freeways did bypass communities in rural
America. However in places like Seattle the freeway couldn't get by
without going through the urban center. Today we have the problems
that result from being unable, due to geographic reasons, to build
an interstate bypass around Seattle. Interstate-405 runs into water
and is only half a beltway; SR-18 is a quarter of a beltway. In
some smaller urban areas, the interstate highway has become the
Main Street USA.

Martha Choe: We need to look at opportunities for private-public
economic development partnerships for transportation modes other
than highways e.g. rail.

3.   Comment: Tom Harvey Harvey Consultants, Inc., Regional Council
     Consultant. We need to develop ways for people to work
     together Who Ought to be a part of the team for implementing
     the actions in the freight package of improvements? For
     example, when do we bring in EPA? We should be asking how all
     of the parties might effectively sit down together and
     institutionalize the new relationships.

4.   Question: With the expansion of American President Lines in
     Seattle, it took a long time for the BN and the UP railroads
     to get together to allow the UP to come in over the BN tracks
     to accommodate the project. In the tacoma area they have a
     problem going through each other's yard.  All over the nation,
     competitive railroads have a hard time working together to
     solve these problems.

Michael Huerta: Across the country there are many example of
conflicts between railroads and between modes of transportation. As
transportation planners we are always looking for the most
efficient solution. But the rail freight system deals with private
companies having significant concerns about competitiveness, '
i.e., with their ability to have comparable advantage over the
other players. Win-win solutions arc needed to solve these
problems. Where there has been success in resolving these types of
conflict is where all the parties in the dispute. see the expansion
of the regional market pie for freight movements rather than simply
holding on to their share of a stagnant market. We need to
recognize that many players in the transportation system consider
other factors beside the efficiency of the total system.

Sid Morrison:  The RTA and the WSDOT are working with both the UP
and BN since both hold vital elements essential to the future. They
have become very interested in forming partnership since the
legislature gave the WSDOT a vested interest (a reference to recent
legislation defining state interest in transportation elements
broader than the state-owned system) in railroad issues. Upgrading
of rails would benefit passenger and freight movements. It takes a
long time and some money to get rail carriers to cooperate.

5.   Question: In moving people, why do we not talk about using the
     median in our freeways for a monorail system (a two-mile
     segment linking downtown Seattle to the 1962 World's Fair
     site)? Can we think about using a slot-car system in the
     distant future?

Martha Choe: The monorail has captured the imagination of many
people. The highly popular monorail is being looked at as a
possible circulator in downtown Seattle. But as an investment, you
must look at the capacity you get for the money. The RTA is looking
at many technological alternatives and their associated costs.





                 Regional Freight Mobility Conference - Proceedings 

6.   Question: We get back to the issue of taxes. How many people
     are actually willing to vote for more taxes to support the
     programs that people want funded?

Sid Morrison: (Recalling his early years selling apples in the
Yakima Valley):The product needs "to look the price". The WSDOT is
encouraged that voters in Oregon approved (by a vote of 70 percent)
an increase in property taxes to pay for an extension of the MAX
system.

Martha Choe: People want to know what they get for the money, is it
worth it and what are the choices? Transportation is not the only
important program needing funding. The RTA recently conducted a
poll and found that an overwhelming majority of the public ranked
crime as the number one priority and transportation as number two.
There is strong support to pay a four tenths percent sales tax
equivalent and for including rail as part of the solution.

Michael Huerta: Voters want value for their tax dollars. In
California, the tax initiatives that often survive are for
transportation improvements. The pattern across the country is
similar. Over the long run, initiatives for earmarked funds (a new
pattern, following Proposition 13) can become a cumbersome form of
government. We need to look at the broader question of building
confidence in the transportation decision making process to reflect
the wishes of the people.

7.   Question: Speaking as a representative of a shipping line, I
     suggest that costs of delays are picked up by the carriers
     rather than shippers. Carriers are willing to pay for delay
     recovery but we are looking for creative 'ways of capturing
     costs.

Michael Huerta: Shippers are paying through the rates set by the
carriers. In Southern CaliforniA Alameda corridor there is an
interesting example of capturing intermodal costs to build a
solution. Rail users of the Alameda corridor agreed to pay user
fees comparable to the costs of delay which can be used to leverage
debt to pay for a large portion of a project to eliminate drayage
costs. They need to ensure maximum leverage from the arrangement.

Sid Morrison: We need to convince people of the true costs of delay
and only then would we be able to use a part of those costs to
solve the problem. Truckers should supply the Commission with
documentation of the costs of delay. The trend is that we now spend
less as a percentage of total taxes to support the automobile and
more on the average cost of an automobile. Does this mean we want
to be comfortable in our cars while we are delayed in traffic?

8.   Comment: The draft MTP financing plan includes congestion
     pricing. We are proposing the use of some public funds to get
     systems or projects underway and then reliance on user fees to
     pay for the consumption of services and the remainder of some
     improvements. In this way we hope to balance out the estimated
     spread between demand and revenues over the next 25 years.
     (King Cushman, Director of Transportation Planning; Regional
     Council)

Martha Choe: There are many questions that need to be answered
about pricing. What part does social equity play in these
decisions? What are the impacts of diversion of traffic-perhaps 50
percent-off of priced facilities onto local streets? Impacts on
land use? To what extent should transit be subsidized? These ques-
tions need to be dealt with at the local level.

Sid Morrison: We need a change in the culture. Washington has not
had toll highways. Some progress is being made through the states
public-private partnership program. (Under Substitute House Bill
1006, passed in 1993, privatization proposal were solicited and of
these, six were selected for further negotiation) One selected
project would include development of an electronic system for the
collection of tolls to be used to sell surplus space in HOV lanes
to pay for more HOV lanes. It is a first step to change the
culture. Philosophically how much should automobile users pay so
others do not have to use their automobiles? What happens when
alternative fuels are used and the taxation structure relies on a
gasoline tax?





                 Regional Freight Mobility Conference - Proceedings 

Michael Huerta: The Transportation Research Board and others have
studied the question of congestion pricing and the studies show
that it is the one transportation demand mechanism that works.
However, it is the one for which there is the least public support.
There is a cultural change that needs to take place. At the federal
level there was a call for congestion management demonstrations but
only one qualified proposal was received. It is on the San
Francisco-Oakland Bay Bridge for peak hour pricing as a way for
managing flow. It will be tried and the results will be watched
closely.

9.   Question: Today we have heard that ISTEA has made some
     promises that have not been kept. Can ISTEA do everything for
     everybody or should phase 11 concentrate on a key competitive
     national interest like freight mobility? (Sid Morrison)

Michael Huerta:  It should be recognized that we will be thinking
about reauthorizing the entire surface transportation program at
the federal level. From the workshops here and around the country
we have learned that ISTEA, in terms of how it deals with planning
and policy making, is a step in the right direction. There are
things that need to be dealt with and one of these is freight
mobility. How do we better understand the nations needs, and is it
necessary to restructure the program to deal with specific needs
associated with the movement of freight? There arc questions about
how, or do you, dedicate federal funds for railroad infrastructure,
facilities held largely in the private sector. How do you consider
trade-offs among different modes? These are some of the questions
being dealt with by the NTS. We need to anticipate future
developments, where we are and where we are going.

10.  Question: How can we improve our effectiveness as advocates of
     freight? (Tom Harvey)

Michael Huerix

Many people do not understand how the freight system works. Develop
more understanding by transportation decision makers.

-    Put it in the context of how freight relates to the local,
     regional and national economics. Decision makers are sensitive
     to an issue such as the creation or retention of jobs.

-    Make certain that your case is valid and a truthful assessment
     of your situation in order to get serious consideration.

Sid Morrison:

-    Do not fall back into your fragmented interests as either
     shippers, or carriers, or even truckers or railroads. Talk to
     each other. Collectively identify what is in the common
     interest of the freight community, still given that it is a
     competitive industry.

Martha Choe:

-    Educate the public and decision makers, and respect the public
     decision making process which is quite different from that of
     the private sector It is slower, complex, open and more time
     consuming. We can use the freight communities assistance in
     finding ways of becoming partners.





                 Regional Freight Mobility Conference - Proceedings 

Closing Remarks:
Dan O'Neal, Chair, Regional Freight Mobility Roundtable

I would like to thank especially those who most directly helped to
make this event possible: all of you present, our distinguished
visiting speakers, the panelists, the Regional Council and Pete
Beaulieu who organized the Conference, and our consultants: Tom
Harvey (HCI, Inc.), Paul Roberts (Transmode Consultants, Inc.) and
Ellen Porter (Porter and Associates).

We have received some good advice from all of you and our panelists
and speakers. We need better understanding on the part of the
freight community as to what is going on in the public policy side
and the issues to be dealt with by public decision makers. And,
from the other side, the freight community needs to continue to
educate and advise public decision makers about what is going on in
our businesses. This Conference - a regional dialogue between these
parties-has made strides in this common direction.

                                 29





                 Regional Freight Mobility Conference - Proceedings 


          Appendix

                                 31




              REGIONAL FREIGHT MOBILITY ACTION PACKAGES

EXECUTIVE SUMMARY

For the first time, explicit consideration of the movement of
freight is being included in the MTP. This is required by ISTEA.
Its inclusion recognizes the critical value of freight
transportation to the regional, state, and national economies and
to the creation of jobs. Freight transportation is an integral part
of the logistics system of every firm. It provides for the flow of
materials from suppliers to manufacturers and for the distribution
of goods from manufacturers to wholesalers, retailers, and
consumers. Lower transportation costs reduce the cost of
manufacturing and distributing goods and contribute to economic
growth and the creation of jobs.

Exhibit 1 locates freight transportation decision-making within the
broader metropolitan transportation planning system. Exhibit 2 is
an abbreviated display of the freight mobility action packages
which are cross referenced to, and discussed in, the full report.
Also included is a large scale multimodal map of the Puget Sound
region (note: pending the designation of a freight roadway system,
the map simply shows major roadways). This helps to ground
multimodal thinking, and the matrix elements, to specific locations
within the region.

Multiple Geographical Scales

The metropolitan freight transportation system operates
simultaneously at local, regional, state, national, and
international levels. Central Puget Sound is an important gateway
on the Pacific Rim. Automobiles, cellular telephones, apples,
oranges, clothing, and hundreds of other items move through the
region's seaports and airports and over its streets, highways, and
railroads. The performance of the region's transportation system is
important to the citizens and businesses of Columbus, Ohio and Hong
Kong as well as to those of Tacoma and Seattle. Over two million
sea-going containers (twenty-foot-equivalent units) move through
the region each year.

                    Developing Action Strategies

Action is needed to maintain and improve the freight transportation
system. The economic competitiveness of central Puget Sound and its
clients throughout the world depends on these actions. The value of
the various actions must be measured in terms that are meaningful
to the many affected logistics systems. Transportation costs,
transit time and order-cycle time, schedule reliability, and safety
comprise a comprehensive set of criteria that measure the relevant
impacts of alternative proposed actions and estimate their values.

                                  i


The Regional Freight Mobility Roundtable--including shippers,
carriers, and related third parties of the central Puget Sound
region--has developed a list of timely and essential actions
(Recommendations: Regional Freight Mobility Action Strategy,
September 6, 1994). These recommendations are included in the draft
MTP because of their expected results in terms of the four
performance criteria (noted above).

In the list which follows, each action is described in terms of (1)
who should do it, (2) what is to be done, (3) timing, and (4)
resource requirements. The actions are organized into four
categories or action packages--institutional, operational,
infrastructure, and financial. Institutional actions pertain to
changes in the working relationships among agencies, firms, labor
unions, and other entities making up the transportation industry in
the region. Operational actions involve changes in the way the
regional freight transportation system operates. Infrastructure
actions result in changes in the physical facilities constituting
the regional transportation system. Financial actions are those
taken to fund one or more actions of the other three packages.

                            Institutional

     PSRC--TO reflect economic development impacts, include freight
     criteria (e.g., nonencroachment of rail corridors) as part of
     the plan review guidelines to be applied under the Growth
     Management Act, pursuant to SHB 1928, by June of 1995. (Fold
     into current Regional Council budget tasks).

     PSRC--During FY 1995, modify the TIP process to give
     "equivalent consideration" (State Policy Plan), to improved
     freight movement and thus to the pursuit of the economic
     strategy and air quality goals of the region. Assure that
     subarea studies needed to identify, assess, and rank freight
     projects are completed and are part of the major investment
     studies required by ISTEA. (Fold into current budget tasks,
     and address through FY 1995 budget process, respectively.)

     PSRC--Include within the FY 1995-6 annual work program: (1)
     identification and analysis of ma or investments and (2)
     subarea studies to improve port and airport access as well as
     to improve freight flows through other subareas such as the
     Kent Valley, Redmond, and Everett areas (e.g., a needed grade
     crossing study at the Port of Everett).

     PSRC--Continue to work with the Regional Freight Mobility
     Roundtable. Roundtable involvement in the MTP, the TIP, the
     state IMS and CMS processes are essential. (PSRC involvement
     estimated at $30,000.)

     PSRC--Work with the WSDOT to complete and maintain the freight
     mobility relational data base and information system, as part
     of the IMS, that can be used to identify and assess the value
     of alternative proposed actions. This data effort will serve
     three improvements: regional economic analysis, transportation
     modeling, and direct policy and issue analysis.


                                 ii


Operational

     WSDOT-- Develop and, implement a one-stop permit system for
     oversize loads (recommended in the draft "Weight Restrictions
     and Road Closures" report (WSDOT, 1994)). The one-stop system
     used by the state of Oregon should continue to be examined for
     possible guidance. (One-half person-year.)

     WSDOT--Work with the PSRC and the Ports of Seattle, Tacoma and
     Everett to consider the placement of weight stations within
     the ports properties. This would help reduce overweight truck
     loads (and resulting road maintenance costs) and would help
     shippers with their new accountability under the Safe
     Container Act of 1992. It would also be possible to increase
     the speed and reliability of freight movement on the highways
     by reducing the backup at existing weigh stations. (Weight
     station cost may be in the range: one million dollars.)

     WSDOT--Protect freight mobility from lane policies, intended
     to restrict future single occupancy vehicle lanes. For
     example, consider selective freight access to High Occupancy
     Vehicle lanes during non-peak periods, especially if future
     HOV lanes are converted from current general purpose lanes
     (used by autos and trucks).

     Ports--Convene and work with labor unions, stevedoring and
     drayage firms, and shipping lines to extend gate hours at
     terminals (e.g., the noon period). This would better enable
     trucks to avoid peak commute periods on the highway (e.g.,
     after 3:30 p.m.) and could enable additional night (off-peak)
     rail shipments on the mainline tracks. (Port involvement
     estimated at one-half person-year, extended over two years.)

Infrastructure

     WSDOT--With the PSRC and local governments, designate and
     periodically review the roadway portion of the regional
     freight and goods transportation system (FGTS), and to clearly
     define the significance of this designation (design standards,
     special incident management capabilities, improved signage,
     etc.) (Currently underway). Advance key projects through an
     efficient review and programming (STIP/TIP) process (e.g.,
     truck access to the Port of Tacoma via completion of SR-167
     and SR-18.)

     PSRC--With WSDOT, secure state high capacity transit (HCT)
     funds to convene stakeholders to outline a mutually acceptable
     strategy for the mixed rail corridor between Seattle and
     Tacoma addressing: (1) long-term mixed facility and
     operational options and actions (beyond 2000), (2) safety
     concerns, and (3) economic implications, and (4) the
     relationship to near-term grade separations (e.g., possibly
     three near the Port of Tacoma, two in the Kent Valley, four in
     Seattle, and possibly one at the Port of Everett). The scope
     should also consider the possible use of Stampede Pass as a
     freight bypass, and lessons from other areas (a rail line from
     downtown to west suburban Chicago, the TriCounty System
     between Palm Beach and Miami, Florida, and the San Diego north
     line).

                                 iii





     PSRC--Lead the preparation of a Design Manual and Guidelines
     for freight transportation facilities, to be reflected in the
     state Pavement Management System required under ISTEA.
     Planning and engineering standards for highways, streets,
     intersections, turning lanes and pavement thickness (to reduce
     weight damage), freight docks, curbside parking and
     restrictions, and various control measures should be
     addressed. Guidelines for freight overlay zones (e.g., freight
     only lanes) and interjurisdictional concerns (traffic light
     timing) should be included. This work is related to the
     designation of the FGTS roadway element. (Estimated cost:
     $50,000)

     PSRC--Convene truck, bicycle, and pedestrian interests to
     jointly address the synchronization and optimization of
     pedestrian-friendly/highway movement systems at intersections
     (e.g., pedestrian movement and left turn backups), especially
     for periods of peak use in dense areas. (Cost est.: $20,000.)

     PSRC--For selected project areas, convene WSDOT, cities,
     counties, shippers, carriers, and private financial
     institutions, to develop mutually acceptable strategies
     combining the independent (and now complementary) actions of
     the parties affected. An example problem suited to this kind
     of collaboration is the provision of highway grade separations
     in the mixed-rail corridor between Seattle and Tacoma.

     WSDOT--Consider PSRC use of HCT funds to develop strategic
     placement of highway grade separations for the proposed
     Seattle-Tacoma mixed commuter and freight rail corridor.

     Ports--Develop and improve on-dock rail capacity, and in
     addition, help foster growing railroad cooperation as part of
     a mutually acceptable public-private strategy to improve
     intermodal freight mobility within and through the region.

Looking to the Future

The above action packages are the steps identified by the
Roundtable to begin to address freight mobility as an integrated
system which is interrelated with more established planning for
personal mobility. This is a new regional and state responsibility
under federal legislation. The economic health of the region
depends to a considerable degree on how well this responsibility is
fulfilled in our Pacific Rim gateway, especially given the
continuing liberalization of trade policies worldwide. Among the
listed actions, are two that are central to a viable and continuing
freight mobility program in the state and region. These are:

(1)  Continued support and cooperation with the Freight Mobility
     Roundtable, and

(2)  Completion and maintenance of the freight mobility relational
     data base and information system. (An initial report has been
     completed: Analysis of Freight Movements in,the Puget Sound
     Region, Transmode Consultants, Inc., October 1994).

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