Economic Assessment of the Impact of Tolls on Freight Transportation Costs in the Hampton Roads Region

Transcription

1 Economic Assessment of the Impact of Tolls on Freight Transportation Costs in the Hampton Roads Region presented to Freight Transportation Advisory Committee presented by Cambridge Systematics, Inc. Parsons Transystems Final Report Transportation leadership you can trust. Transystems

2 Study Overview Analyze the economic trade-offs of the benefits of transportation infrastructure investments and tolls as a way to pay for the investments Focus on competitiveness of freight transportation in the region 2

3 Approach 1) Stakeholder Interviews Transportation costs Freight routes and congestion Economic competiveness factors 2) Benchmark assessment Key origin/destination pairs Cost per mile analysis 3) Freight Cost Analysis Future cost analysis using travel demand model Congestion Cost broken into four component 3

4 Understanding Tradeoffs No build Transportation/ congestion impacts Costs Build Funding/toll impacts Benefits Build Additional capacity & access 4

5 Future Freight Cost Analysis 5

6 Future Freight Cost Analysis VOT - Value of Time: Cost associated with labor (salary and benefits of workforce) VOC - Vehicle Operating Cost: Cost associated with vehicle operations (fuel, tires, maintenance, etc.) Reliability costs: Cost associated with unpredictable delay leading to changes in number of truck turns Tolls : Cost of tolls per trip (one direction). Assumption is all truck pay a toll. 6

7 Approach Used HRTPO regional travel demand model to estimate future truck miles and hours traveled for two scenarios» Business as usual or no building of the HRTAC capacity projects» Build with tolls Projects are built and payed for via tolls 7

8 Projects Included in Analysis Widening I-64 on the Peninsula from 4 to 6 lanes from exit Widening I-664 from 4 to 8 lanes from I-64 at Hampton Coliseum to MMMBT Widening I-664 from 4 to 6 lanes from MMMBT to I-64 at Bowers Hill Addition of Patriot's Crossing with Craney Island Connector Widening of I-64 on the Southside by 2 lanes from Bowers Hill to I-464 including the High Rise Bridge Interchange improvements at I-64 & I-264 in Norfolk 8

9 Estimating the Change in Truck Congestion Scenario 2040 BAU/No Build 2040 Build with Tolls Additional Hours of Delay Daily Additional Hours of Delay- Annual Additional Hours of Delay Daily Additional Hours of Delay- Annual Intraregional Trips Non-Regional Trips Total 5,751 5,309 11,060 2,099,188 1,937,712 4,036, ,093 29,412 86,505 Source: CS analysis using the HR travel demand model 9

10 Cost of Business As Usual 2040 Business as Usual (BAU) Trucking Costs Intaregional Trips Non-Regional Trips Total Additional Daily Hours of Truck Delay 5,751 5,309 11,060 Additional Annual Hours of Truck Delay 2,099,188 1,937,712 4,036,900 Additional Travel Time Costs $ 156,809,344 $ 144,747,086 $ 301,556,430 Additional Vehicle Operating Costs $ 299,554,128 $ 276,511,502 $ 576,065,630 Buffer/Turn Time Costs $ 95,795,049 NA $ 95,795,049 Additional Toll Costs NA NA NA Total Additonal Trucking Costs $ 552,158,521 $ 421,258,589 $ 973,417,109 Source: CS analysis using the HR travel demand model Overall Cost Burden: 57% Intraregional Trips/ 43% Non Regional Trips 10

11 Cost of Building with Tolls 2040 With Additional Capacity and Tolls Intraregional Trips Non-Regional Trips Total Additional Daily Hours of Truck Delay Additional Annual Hours of Truck Delay 81,829 72, ,395 Additional Travel Time Costs $ 6,112,652 $ 5,420,654 $ 11,533,307 Additional Vehicle Operating Costs $ 11,677,048 $ 10,355,118 $ 22,032,167 Buffer Costs/Turn Costs NA NA NA Additional Toll Costs (at $20 toll $2040, $7.30 IN $2014) $ 505,292,568 $ 260,302,232 $ 765,594,800 Total Additional Trucking Costs $ 523,082,269 $ 276,078,004 $ 799,160,273 Source: CS analysis using the HR travel demand model Overall Cost Burden: 66% Intraregional Trips / 34% Non Regional Trips 11

12 Economic Trade-off 2040 BAU or No Build 2040 Build with Tolls Intraregional Non Regional Total Intraregional Non Regional Total Additional congestion costs $ 552,158,521 $ 421,258,589 $ 973,417,109 $ 17,789,701 $ 15,775,772 $ 33,565,473 Additional toll costs from new toll facilities $ 505,292,568 $ 260,302,232 $ 765,594,800 Total Additional Cost Increase $ 552,158,521 $ 421,258,589 $ 973,417,109 $ 523,082,269 $ 276,078,004 $ 799,160,273 Number Truck Trips 25,264,628 13,015,112 38,279,740 25,264,628 13,015,112 38,279,740 Average Additional Cost per Trip ($2040) $ $ $ $ $ $ Average Additional Cost per Trip ($2014) $ 7.96 $ 7.83 Net Difference ( Build-BAU) Intraregional Non Regional Total Average Additional Cost per Trip ($2040) $ (1.15) $ (11.15) $ (4.55) Average Additional Cost per Trip ($2014) $ (0.43) $ (4.18) $ (1.71) 12

13 Key Findings Freight rates in region generally competitive with peer ports Cost of doing nothing is significant - $974 million in 2040 Based on current tolling rates, industry will be better off building new capacity with tolls than continuing in a business as usual mode Consideration should be given mitigation of tolling costs such that regional trips do not absorb an unfair portion of the cost of an enhanced transportation network 13