Robert E. Martínez Vice President Business Development Norfolk Southern Corporation

Transcription

1 Robert E. Martínez Vice President Business Development Norfolk Southern Corporation TRB Executive Committee Policy Session Irvine, California June 4, 2004

2 We are not in crisis. The story of transportation in the United States is one of extraordinary success. But, we need to respond to changes in the marketplace; and a big change is the growing tradedependence of the U.S. economy.

3 The depiction of our transportation history as a history of success is true across the board, and is particularly relevant when speaking to the movement of freight.

4 The Eisenhower Interstates and the business model supported by them; a user-fee funded network Trucking deregulation The Staggers Act business model for rail freight

5 U.S. producers enjoy the lowest average freight rates per unit of output anywhere in the world.

6 But, we face exhaustion of the basic business models of the past. We ve been so successful that congestion threatens our competitive position. Market realities change and we must remain market-driven.

7 The existing freight infrastructure was developed incrementally in response to various economic phases and modal epochs. It reflects the realities of earlier economic eras.

8 We need to bring more modes to the table, and be more flexible with the funding programs available in the public sector.

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10 We need more generally to elevate the appreciation for freight.

11 Freight Stakeholders TEA-21 Reauthorization Agenda Protect the integrity of the Highway Trust Fund Dedicated funds for NHS intermodal connectors Est. national freight advisory group to USDOT Create a Freight Cooperative Research Program Enhance freight expertise at state and local Create more innovative financing options aimed at freight Increase funds for corridor/borders & gateways Streamline environmental permitting for freight projects Increase funding & use of CMAQ for freight

12 There has been progress in elevating freight. Some progress in all three bills; the Bush Administration, Senate and House bills AASHTO s bottom-line report hugely significant (just recently re-confirmed) Individual state DOTs are moving in the right direction FAF was very helpful at the federal level

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14 1998 and 2020 domestic truck flows Truck Net Tons (Millions) ,000 1,000 -

15 We need better data. More specifically, we need real data, not imputed.

16 Agriculture Construction STB Waybill COE PIERS Utilities Mining Manufacturing Wholesale CFS Transearch Retail Service Government Intermodal & container Truck Rail Air Water

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18 We need a real push to attract new investment into transportation. In that regard, I m not suggesting higher levels of funding by state DOTs, by JB Hunt, the Port of Long Beach, or Norfolk Southern.

19 We need to engage the financial community.

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21 We need serious improvement in our ports, which probably represent the weakest link in our transportation networks in the United States.

22 The best Asian container ports outperform the best North American ports by more than three to one, even after controlling for the effects of transshipment at Asian ports.

23 Localized costs Diffused benefits

24 What Ports need is what s needed for transportation generally: Flexibility in programmatic terms [read defined freight multimodal programs] Attention to specific projects of national significance, inclg. enhanced Gateways Streamlined environmental reviews Innovative financing Flexibility on work rules A very big focus on addressing security

25 To recap; we need: Multimodal programming & institutions To elevate freight awareness Robust data Innovative financing Ports are key.

26 Other challenges for transportation: HOS rules Shifts in global trading patterns bringing more cargo to the east coast Better balancing & expediting environmental reviews National Security concerns

27 Extremely important: Don t forget non-intermodal Not all traffic moves best in containers There are huge multimodal opportunities in how you plan for and handle non-containerized traffic. This includes opportunities in noncontainerized, international trade

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