LOUISIANA FREIGHT MOBILITY PLAN Donald Vary. March 1, 2016

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1 Donald Vary March 1, 2016

2 FREIGHT MOBILITY PLAN COMPONENTS Introduction and Plan Summary Strategic Goals and Objectives Economic Context of Freight Freight Policies, Strategies and Institutions Louisiana Freight Transportation Assets Condition and Performance Freight Flows Overview of Trends, Needs, and Issues Strengths and Challenges of the Freight Transportation Network Freight Improvement Strategy Implementation Plan 2

3 LA FREIGHT INFRASTRUCTURE BY THE NUMBERS 11 th Largest highway system in U.S. 16,660 centerline miles 3 rd Highest bridge deck area in U.S. 12,900 bridges (21 st highest) 6 Class I Railroads 2,583 main track miles 7 Commercial service airports 40 Ports 50K miles of pipeline 17 Major waterway corridors 3

4 LOUISIANA FREIGHT STATISTICS in U.S. for largest 1 st tonnage port 44% Of tonnage moved by Truck 53% Increase in waterborne freight tonnage by rd Natural gas production in U.S. $ Chemicals are highest valued commodity moved by rail 50% 24 th In U.S. for rail tonnage 132 million tons 4

5 LOUISIANA FREIGHT OVERVIEW 2012 Tonnage by Mode 2012 Value by Mode pipeline 23% other <1% pipeline 30% other <1% air <1% truck 44% truck 41% water 26% rail 7% air 2% water 14% rail 13% Total Tons: 1.2 billion tons Total Value: $971 billion 5

6 ECONOMIC CONTEXT OF FREIGHT IN LOUISIANA Producer state: Abundance of natural resources Move heavier, lower value goods wood & lumber 62% of freight by weight = wood + fossil fuels + agriculture + chemicals Access to Gulf of Mexico and MS River Most valuable shipments are energy related 6

7 EXAMPLE SUPPLY CHAIN 7

8 FIXING AMERICA S SURFACE TRANSPORTATION (FAST) ACT IN FREIGHT PLANS National Highway Freight Program (NHFP) $1.2B/year (avg), apportioned to States by formula Eligible activities: construction, ops. improvements, freight planning & performance measures Highway focus, but 10% for rail/port/intermodal projects States required to have freight plans to obligate NHFP $ (beginning FY 2018) Federal share is determined under 23 USC 120 Repeals special Federal share for freight projects Creates a National Multimodal Freight Network (NMFN) 8

9 FAST ACT FUNDING PROVISIONS National Highway Freight Program o Formula based on State s share of highway apportionments $6.2 Billion (over 5 years) Nationally Significant Freight and Highway Projects (NSFHP) o Discretionary grants for major highway & freight projects funded $4.5 Billion (over 5 years) Certain non-highway projects are eligible to receive portions of the NHFP & NSFHP $ (such as port access & intermodal facilities) 9

10 LOUISIANA FREIGHT GOALS 10

11 LOUISIANA FREIGHT GOALS Economic Competitiveness & Efficiency Safety and Security Infrastructure Preservation & Maintenance Environmental Stewardship Performance & Accountability 11

12 EXAMPLE GOAL, OBJECTIVES, AND PERFORMANCE MEASURES Goal: Economic Competitiveness & Efficiency Objectives: Improve efficiency and capacity of freight transportation system Improve freight network access Improve access to freight generators Performance Measures: % of short line freight rail system capable of supporting 286,000 pound cars % of National Highway System intermodal connectors meeting pavement condition targets 12

13 PERFORMANCE MEASURES Pavement condition targets Change in freight tonmiles Crashes by mode Performance Measures Bottlenecks addressed Truck parking spaces At-grade rail crossings 13

14 LOUISIANA FREIGHT CAPITAL INVESTMENT NEEDS Twenty-Five Year Capital Needs Summary Mode Needs ($ millions) Highway $32,591.1 Rail $1,144.4 Ports/Waterways $7,485.6 Aviation $10.6 Mega Projects Highway $8,325.0 (A&B only) Non-Highway Mega Projects $2,112.0 Total $51,

15 FREIGHT INFRASTRUCTURE CHALLENGES Roadway maintenance & improvement NEEDS outweigh FUNDING Limited truck parking Highway bottlenecks Incident management Waterway maintenance & channel depth Last mile & intermodal connections 15

16 PLAN DEVELOPMENT/OUTREACH ID Issues/ Outreach Goals Modal Plans Analysis Freight Plan Outreach Activities Modal Advisory Councils from Statewide Transportation Plan Freight Advisory Committee Stakeholder surveys 16

17 TRUCKING SURVEY Pavement and bridge maintenance Need for improved Permitting/registration, electronic credentialing Truck size and weight limits Incident management response Limited availability of truck parking Overall condition & design of roadway infrastructure Need for strategic capacity improvements Need for improved connectivity Need for additional transportation funding mechanism 17

18 PORTS SURVEY Mississippi River, coastal waterways and access channel deepening Limited storage capacity Rail and roadway access improvement Transfer facilities Outdated locks Limited port operations hours As the PAL Executive Director, I am aware of the fact that Louisiana ports must operate with deficiencies in all of the transportation systems. Joe Accardo, Jr., PAL Executive Director 18

19 TIERED FREIGHT NETWORK Tiered facilities allow for prioritization Allows assessment of needs Best return on investment 19

20 TIER 1: NATIONAL PRIMARY FREIGHT NETWORK Primary Freight Network (PFN) Class I Railroads Airports = $100M Waterways = 10M gross tons Ports = 50M short tons 20

21 TIER 2: REMAINDER OF INTERSTATES Interstates not on PFN Railroads = > 500K gross tons/mile Airports = > $10M Waterways = > 5M short tons Ports = 20-50M short tons 21

22 TIER 3: CRITICAL FREIGHT CORRIDORS Connect with Tier 1 or Tier 2 Rural principal arterials 25% ADTT Provides access to energy industry Active railroads not on Tiers 1 or 2 Waterways = >1M gross tons Ports = 2-20M short tons 22

23 TIER 4: FREIGHT CONNECTORS Corridors that serve freight-related businesses not on Tiers 1, 2 or 3 Connectors to corridors that serve freight Assets not specifically defined in Freight Plan 23

24 TOP 5 POLICY RECOMMENDATIONS Freight private sector involvement DOTD and Louisiana Department of Economic Development (LED) collaboration Leverage P3 to fund transportation improvements Multi-state coordination of freight infrastructure improvements Update freight modal systems plans regularly 24

25 TOP 4 PROGRAM RECOMMENDATIONS Maintain and improve the designated Louisiana Freight Network Implement freight project prioritization framework to prioritize investments Refine performance measures to track implementation progress Address the condition of special truck routes that support the energy & mining industry 25

26 FREIGHT PROJECT RECOMMENDATIONS Priority Projects Relevant to freight network using Tiered Freight Network & Plan development process o 408 Highway Projects o 43 Rail Freight Projects o 40 Ports & Waterways Projects o 5 Air Cargo Projects Non-Prioritized Planning Projects o Conduct planning studies for top 20 freight highway bottlenecks o Conduct safety improvement studies for those rail/highway grade crossings with severe safety issues o Examples of planning projects are environmental studies, operational analysis, safety and corridor studies (eg. New Orleans Rail Gateway EIS) 26

27 HIGHWAY PRIORITY PROGRAM PROJECTS/FREIGHT BOTTLENECKS Freight bottlenecks overlaid onto HPP Projects Top 20 locations identified 27

28 MEGAPROJECTS/FREIGHT BOTTLENECKS Freight bottlenecks overlaid onto Megaprojects Several Megaprojects could improve truck freight mobility 28

29 FREIGHT PROJECT PRIORITIZATION FRAMEWORK Goal Project Prioritization Criteria Factors A. Is on the defined tiered network Economic Improves access to/from existing or Competitiveness and developing freight hubs Efficiency Provides access to energy areas Preserves freight reliant jobs Improve the freight Improves freight network access transportation system Improves access to freight generators for better economic Improves access among two or efficiency, more modes productivity, and Supports retention or expansion of competitiveness business Supports or expands freight related land use Improves port or waterway facilities for increased throughput or larger vessels B. Safety & Security Reduces number of weight restricted bridges Improve the safety, Improves geometric conditions security, and Improves high truck crash locations resilience of the Improves at-grade crossings Freight Impacted Freight Related Freight Focused Freight Impacted Freight Does not improve Somewhat improves Improves Significantly improves Greatly improves Does not improve Somewhat 29

30 FREIGHT PLAN IMPLEMENTATION Prioritize freight projects Identify funding for top priority projects Economic development linkages are important Target issues & challenges as opportunities Engage partners & stakeholders (public & private) Update Freight Plan every 5 years Assess non-traditional funding/financing strategies Consider innovative funding programs 30

31 THANK YOU! QUESTIONS? Contact Info: Donald Vary

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