FHWA FREIGHT PERFORMANCE MEASURES WORKSHOP. May 2012

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1 FHWA FREIGHT PERFORMANCE MEASURES WORKSHOP May 2012

2 Before we begin Introductions Agenda Additional Information

3 Performance Measures Overview

4 The surplus, that which is produced in one place to be consumed in another; the capacity of each locality for producing a greater surplus; the natural means of transportation, and their susceptibility for improvement; the hindrances, delays, and losses of life and property during transportation, and the causes of each, would be among the most valuable statistics in this connection. From those it would readily appear where a given amount of expenditure would do the most good. Speech of Mr. A. Lincoln of Illinois in the House of Representatives, June 28, 1848

5 Freight Transportation Landscape The increasing orientation toward a performancebased transportation system Government transparency and accountability The emergence of corridor level thinking Discretionary programs (e.g. TIGER)

6 Recent Performance Management Actions at the National Level FHWA Performance Based Federal Aid Program Transportation Authorization Proposals MAP-21 American Energy and Infrastructure Jobs Act of 2012

7 Why Use Performance Measures?

8 Why We Use Performance Measures Decision Making Guide resource allocation decisions Planning Provide link between goals and specific actions Mechanism for understanding system performance Forecasting and Modeling Track system performance over time Performance Management Improves the management and delivery of products and services Evaluate impacts of policies, plans, programs, and projects Performance measurement is mandated for federal agencies by the Government Performance and Results Act (GPRA) of 1993 and GPRA Modernization Act of 2010 Communicate Results and Strengthen Accountability Demonstrates the accountability of taxpayer resources Helps justify programs and their costs --Given limited budgets, etc., another tool for informing investment decisions at a national, state or local level

9 Private Sector Experience Evolution of Measures Basic financial Productivity or internal performance Competency or innovation Resource allocation/tradeoff Continuous Improvement (TQM, ISO, Balanced Scorecard) Qualitative and Quantitative General Categories Customer satisfaction Process measurement Freight Specific Categories Productivity (labor/truck) On-time/Reliability Costs

10 Freight Performance Measures Part I

11 What are Typical Categories of Freight Performance Measures?

12 Typical Categories of Freight Performance Measures Freight Demand System Efficiency System Condition Freight Safety Environmental Conditions System Investment

13 Vote for the Most Important Freight Performance Measures Category Federal State MPO Local

14 Which Freight Performance Measures to Use?

15 Freight Performance Measures Group Exercise: Your organization recently developed a regional freight plan Leadership asks you to identify measures (2 for each of the 6 typical categories) that can provide the best metrics and indicators for the freight system You are given two categories to work on: What measures would you choose? How would you set targets?

16 Terminology Goals Objectives Strategies Actions Performance Measures Program Project Input Output Outcome Targets Policy/Aspiration Trend/Modeled Benchmarks/Baseline

17 Data Considerations When Appling Freight Performance Measures Understanding your data source Several levels on which freight performance measures could be considered state or system-wide on individual corridors, or on individual routes the correct level to use may depend on the purpose for which policymakers are considering the measure Current state of the practice in performance measurement - many measures currently being used and suggested are based primarily on the available data.

18 Data Types and Sources Types Administrative Records Survey/Probe Modeled Sources Federal Agencies State Agencies Private Sector

19 Freight Performance Measurement Data Information and data on freight movement often resides with the private sector Public-Private data sharing partnerships offer an opportunity to gain access to information that accurately reflects geographical freight flows, commodity flows, and freight system performance Benefits to the Private Sector: Increase capacity Improve Operations Work Zones Incidents Bottlenecks Trucking Parking Garner support for freight programs and funding

20 FPM Freight Data Sharing Success Story: Data Privacy and Protections Required Data is derived from individuals within the trucking industry, therefore: Anonymity is required Appropriate data usage must be ensured Air Quality, enforcement, tolling Legal protections must be in place

21 Freight/ Other Data Use and Sharing Probe Data and Similar Data is a New Area Current Legal Thinking Suggests Data is Owned by the Source An Individual, Company or Industry is Owner What are the Consequences? Other Freight Modes Non-Freight Data

22 Break

23 FHWA Performance Based Federal Aid Program and Recent Legislative Proposals

24 Surface Transportation Policy National Commission Recommendations Strong Federal role focused on national goals Consolidated program structure Performance management Many groups supporting Commission s recommendations, all embraced a performance-based program (U.S. DOT, AASHTO, AMPO, APTA, GAO, and more) 24

25 What is Transportation Performance Management? Transportation Performance Management (TPM) is a strategic approach that uses system information to make investment and policy decisions to achieve a desired set of national goals. 25

26 What is FHWA Doing Now? Awareness Capacity Building Plan Information Access Tools Workshops Benchmark Studies Pilots Case Studies New Measures Framework Elements Guidance Coordinating Efforts 26

27 The TPM Framework

28 The TPM Framework

29 FHWA s Commitment to Performance Management Natural evolution to improve decision making and resource allocation Improves transparency and accountability for federal funds Opportunity to advance performance management practices prior to legislation

30 Authorization Side-by-Side Comparison Element Senate Version House Version Performance Goals Measures 5 national goal areas: - Safety - Infrastructure Condition - System Reliability - Freight/Economic Vitality - Environmental Sustainability - Measures for 5 national goal areas - USDOT establishes measures - 1 national performance management goal - Nation s highway and public transportation systems - Ensure: - economic growth - safety improvement - increased mobility - Measures for 11 categories (22 max measures) - States recommend measures - USDOT establishes measures.

31 Authorization Side-by-Side Comparison Element Senate Version House Version Targets - States & MPOs establish targets. - USDOT certifies target. - Accountability to meeting targets - States establish & adjust targets - USDOT sets process Plans Reporting - Investment plans required - Integrated into planning process - USDOT certifies plans - States required to submit performance progress report - USDOT required to produce national performance report - Investment plans required - Integrated into planning process - USDOT sets process - Plans required to use funds - States required to submit performance progress report

32 Common Authorization Themes National performance areas National performance measures State performance targets Plans to document investment strategies Transparent performance reporting Performance based planning and programming Performance accountability

33 Differences to be Resolved Specific national performance areas Implementation schedule Approach to accountability requirements Approach to target setting Federal role Plan development Target setting National reporting

34 Challenges and Opportunities Need for consistent measures Reliability and quality of data Availability and timeliness of data Target setting Agency coordination Linking actions with outcomes

35 MAP-21 and Freight Performance Management Implications National Freight Program Elements (Sec 1115) National Freight Network Freight Conditions and Performance Report National Freight Strategic Plan Freight Performance Management

36 National Freight Network Components: (MAP-21 Sec 1115) Primary Freight Network (PFN) Portions of the Interstate System not designated as part of the PFN Critical Rural Freight Corridors (RFC) Designation: PFN designated by the Secretary and composed of up to 27,000 miles of existing roadways critical to freight movement, plus up to 3,000 miles of roadways (existing or planned) critical to future goods movement; RFC designated by States (subject to some constraints). Re-evaluated every 10 years.

37 Funding Projects on the NFN (MAP-21) Eligible Projects Must demonstrate the improvement made by the project to the efficient movement of freight on the national freight network Up to 10% can be spent on freight rail and maritime projects Eligible Location of Projects On the PNF On a portion of the Interstate System not designated as PFN On roads off of the Interstate System or PFN, if that use of funds will provide a more significant improvement or critical freight access to the PFN or Interstate System On a NHS freight intermodal connector; On critical rural freight corridors (up to 20%) Within the boundaries of public and private intermodal facilities

38 Freight Transportation Conditions and Performance (C&P) Report (MAP-21) Due every 2 years USDOT prepares a report that describes the conditions and performance of the national freight network in the United States

39 National Freight Strategic Plan and Policy (MAP-21 Sec 1115 and 33003/33004) Condition and performance Identification of highway bottlenecks Forecasts of freight volumes Identification of major trade gateways and national freight corridors Assessment of barriers to improved freight transportation performance Best practices for improving the performance and mitigating impacts Process for addressing multistate projects and encouraging jurisdictions to collaborate Strategies to intermodal connectivity

40 American Energy and Infrastructure Jobs Act of 2012 Freight Plans and Policy (HR7) National Freight Policy - USDOT to establish a 5 year National Freight Policy Specify goals, objectives and milestones with respect to the expansion of capacity and improvement of infrastructure Specify programs, strategies, and projects that will assist in achieving goals and objectives State Freight Plans - USDOT to encourage the States to develop freight plans that includes performance measures. An identification of significant freight system trends, needs, and issues A description of the freight policies, strategies, and performance measures that will guide the state s freight-related investment decisions. Evidence of use of innovative technologies Reduce or impede deterioration of routes carry heavy vehicles

41 AASHTO ON FREIGHT PERFORMANCE MEASUREMENT Key measure areas include: Reliability measure in Urban areas and on Significant Freight Corridors (SFC) Speed/Travel-Time measure for Trucks and on SFC Roadway access measure to major roadways and last mile connectors (Urbanized areas and on SFC) Extracted Freight and Economic Development Task Force of Standing Committee on Performance Management

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