Modeling and Assessing the Cost of Delays on an Heavily Trafficked Intercity Truck Corridor

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1 Modeling and Assessing the Cost of Delays on an Heavily Trafficked Intercity Truck Corridor Frank Southworth & Denise A. Smith School of Civil & Environmental Engineering Georgia Institute of Technology & UTC Conference For The South-Eastern Region, Birmingham, Alabama. March 26, 215

2 Project Motivation: Growing Highway Demand vs Highway Supply Imbalance Forecast Continued & Rapid Growth in National/ South-Eastern Truck Traffic Project Objectives: To develop and test a method that can be applied at the statewide, major corridor level for the purpose of deriving the monetary benefits of limiting withincorridor travel delays. Key Technical/Conceptual Challenges: Key Talking Points How Do We Determine The Types and Volumes of Commodities Moving Over Our Highly Trafficked Highway Corridors, and How Does This Commodity Mix Affect Delay Costs? (and by implication, How Should We Measure the Benefits of Reducing or Eliminating Such Delays)? Example Corridor Study (Some Preliminary Results): I-85 Truck Freight Movements Through Georgia

3 Freight Traffic Is Expected to Grow Significantly in Georgia and the South-Eastern U.S. over the next 4 decades Source: Georgia DOT Freight & logistics Plan Task 3 Report.

4 Example Truck Traffic Growth Forecast for the South-Eastern Region* -> Rapid Growth * Ton-miles of truck freight are projected to increase by 67% and truck cargo value to increase by 93% between 215 and 24 AADTT Miles 27 Truck Flows AADTT Miles 24 Truck Flows * Includes AL,FL,GA,NC,SC and TN Source: Federal Highway Administration Freight Analysis Framework (Version 3) 75 45

5 Task 1: Defining a Study Corridor Project Tasks Task 2: Generating a Suitably Disaggregated Matrix of Origin-Destination- Commodity-Truck Class (O-D-C-V) Flows based on Location Specific Economic Activity Data. Task 3: Carrying out a Multi-Class, Origin-Based and Congestion Sensitive Assignment of Truck Trips to the Selected Corridor Task 4: Estimating the Dollar Value of Recent and Future Year Truck Travel Time Savings (under different O-D disaggregation, different ton-to-truck conversions, different value of time assumptions) Task 5: Writing the Draft and Final Project Reports

6 Task 1: Corridor Selection = I-85 /I-285 Through Georgia VCR7 VCR FAF3 Regions Corridor Counties/Zips 25, 2, 15, AADTT7Pces AADTAuto7 45, 4, 35, 3, 25, SE Counties AADTT4Pces AADTAuto4 1, 2, 15, 5, 1, 5,

7 Task 2: Spatial & Commodity Disaggregation of O-D Flows Starting Point: Freight Analysis Framework (FAF3) Canada Eastern Asia Europe Spatial Resolution (based on 27 U.S. Commodity Flow Survey regions): 123 domestic regions (74 metro/part metro area regions, 33 state remainders, and 16 entire state regions) + 8 foreign regions South, Central & Western Asia FAF3 Analysis Zones Metro Regions Entire States Mexico Rest of Americas State Remainders 2 4 Miles Commodity Class Detail (for O-D Flows): 43 2-Digit Standard Classification of Transported Goods (=SCTG) Codes, as developed for 27 U.S. Commodity Flow Survey.

8 Steps in Spatially Disaggregating Corridor-Based Commodity Flows, Truck Trips & Costs Input-Output (Use & Make) Modeling of Commodity Flow and Industrial Activity Data* 1. Develop Spatially Disaggregated (County/Sub-County) Commodity Productions & Attractions 2. Develop O-D-Commodity Flow Estimates (Modified) FAF Highway Network Pre-Load FAF3 Auto Traffic Volumes 3. Convert to O-D-Vehicle Trips (Including Empty Trips) 3a. Convert to Truck PCEs Identify/Modify High Volume Corridor O-D-Vs GDOT/HPMS Truck Counts Flow/Speed Validations 4. Flow Truck Trips Over Highway Network Using Multi-Vehicle Class Origin-Based User Equilibrium Assignment** ATRI Speed Data * Includes CFS, CBP/ZBP, BEA, EPA, DOE, USDA data sources **Using TransCAD s OUE Assignment Routine 5. Compute O-D-V-(C) Trip Costs = Function (Money + Travel Time + Travel Time Unreliability)

9 Six-State South-Eastern County Disaggregations of O-D Flows (Preliminary) Number Of O-D Flows Modeled External-External (EE) Flows Internal-External (I-E) and External-Internal (E-I) Flows Internal-Internal (I-I) Flows = 12*12 O-D Flows = 534 x 12 O-D Flows = 12 x 534 O-D Flows = 534 x 534 O-D Flows # Daily Trucks # Daily Trucks

10 Task 2a. Conversion of Commodity Tons to Truck Trips Tonnage Allocation Factor (by: distance, truck type) Truck Equivalency Factor (by: commodity, truck type, body type) Empty Truck Factors (by: truck type, body type) Total Trucks (across all body types for each truck type) Single Unit Tonnage # of Single Unit Trucks by Body Type # of Empty Single Unit Trucks by Body Type Total # of Single Unit Trucks Truck Trailer Tonnage # of Truck Trailer Trucks by Body Type # of Empty Truck Trailer Trucks by Body Type Total # of Truck Trailer Trucks ktons of Commodity from Origin i to Destination j Comb Semi Tonnage Comb Double Tonnage # of Comb Semi Trucks by Body Type # of Comb Double Trucks by Body Type # of Empty Comb Semi Trucks by Body Type # of Empty Comb Double Trucks by Body Type Total # of Comb Semi Trucks Total # of Comb Double Trucks Comb Triple Tonnage # of Comb Triple Trucks by Body Type # of Empty Comb Triple Trucks by Body Type Total # of Comb Triple Trucks Convoy Tonnage # of Convoy Trucks # of Empty Convoy Trucks Total # of Convoy Trucks Based on: Battelle. (211). FAF3 Freight Traffic Analysis. 1

11 Task 3:Multi-Class, Origin-Based Corridor Assignment Modeling External-External Flows Internal-Internal Flows STUDY AREA: Georgia plus 5 surrounding states (AL, FL, NC, SC, TN) Internal-External/ External-Internal Flows PRELIMINARY RESULTS: Average trucks per link: 4,876 Truck miles traveled: 966,51 Truck hours traveled: 24,75 Average tons per link: 79,925 Total ton-miles: 16,289,83 STUDY CORRIDOR: Portion of I-85 in Georgia 18 miles 182 links

12 Model Estimated Daily Truck Trips Volumes on I-85 (in 27) by Truck Type (Preliminary) 3 25 Distribution of Average Daily Truck Trips Originating in Georgia and Using I Distribution of Average Daily Truck Trips Terminating in Georgia and Using I Destinations Outside GA 35 GA Destinations All Trucks Single Units Truck Trailers Comb. Semis Comb. Doubles Other Trips 1 Other SE Regional Trips Within 5 Georgia Trips Originations Outside GA GA Originations All Trucks Single Units Truck Trailers Comb. Semis Comb. Doubles I-85 Average Daily Through Truck Trips All Trucks Single Units Truck Trailers Comb. Semis Comb. Doubles I-85 Average Daily Truck Trips with both O and D in Georgia All Trucks Single Units Truck Trailers Comb. Semis Comb. Doubles All Trucks Single Units Truck Trailers Comb. Semis Comb. Doubles

13 Kilotons Total Ktons in 27 $Millions Total M$ in 27 Kilotons Total Ktons in 27 $Millions Total M$ in 27 Model Estimated Top 5 Commodity Classes Moving On I-85 in 27 by Weight (Ktons) and Value ($Millions) (Preliminary ) Shipped from Georgia Gravel Logs Nonmetal mineral prods. Waste/scrap Shipped to Georgia Gasoline 6 5 Machinery Motorized vehicles Textiles/leather Mixed freight Electronics Gravel Logs Nonmetal mineral prods. Waste/scrap Gasoline Machinery Mixed freight Textiles/leather Motorized vehicles Pharmaceuticals

14 Measurement Issues: Task 4: Calculating The Costs of Trucking Delay 1) What Are The Relevant Delay-Induced Costs? a) Direct Vehicle O&M Costs: Labor, Fuel, Administrative, Maintenance, Insurance, etc. per mile or per hour costs) b) Other Travel Time-Based Costs: Extra Unloading Costs, Extra In-Transit Inventory Holding Costs, Cargo Lost Value Costs, Lost Cargo Consolidation Savings c) Service Time Unreliability Costs: Short Term: Production Schedule Disruption Costs, Longer term: Increased Safety Stock Holding Costs, Loss Of Customers. 2) How Do We Value? What Factors Impact Such Delay Costs? d) Vehicle Configurations: carrying capacity, body type, fuel use, service area, IT use.. e) Commodity Characteristics: perishability, unit value, special carriage needs, f) Supply Chain Considerations: scheduling sensitivity, customer sensitivity/satisfaction,industrial sector, company size, use of outsourcing, 3) Who Pays (Which) Delay Costs? g) Shippers/Carriers/Receivers/Final Customers..

15 Task 4: Calculating The Costs of Trucking Delay Transportation Cost = (α1* Money) + (α2* Travel Time) + (α3* Travel Time Reliability) for a set of model calibrated cost sensitivity parameters α1 α3, and where Money costs is broken down as follows: Money = Labor Costs (mainly Driver Wages and Benefits) + Vehicle O&M Costs where O&M refer to the marginal (per mile or per hour) costs of vehicle operation and maintenance, including fuel costs, vehicle repair, maintenance and insurance costs, lease or purchase payments, permits and licenses, and tolls. *E.G. Using Standard Deviation in Truck O-D Travel Times

16 Task 4: Estimating the Dollar Value of Truck Travel Time Savings **

17 Task 4: Calculating The Costs of Trucking Delay A. European Studies*: Value of Travel Time (Dollar/Hour): Vehicle VTT Goods VTT Goods+Vehicle VTT Low High Low High Low High 215 Dollars/Hour Reliability Ratio (Travel Time) = Value of SD of Travel Time / Value of Travel Time TTRR (Shippers and Carriers) Low High * See De Jong (214), Tables 9.2 and 9.4 B. U.S. Studies: ** Vehicle VTT Low High Dollars/Hour 25 2 ATRI (214 Update): Recent $1.676/Mile Freight $76/Hour VTT and VTTV References ** See Hussein and Petering (29) Mei and Horowitz (211), Southworth and Gillette (211),Gong et al (212) ATRI (214) Analysis of the Operational Costs of Trucking: A 214 Update. American Transportation Research Institute. Arlington, VA. Bone, I., Wallis, I., O Fallon, C. and Nicholson, A. (213) Reliability and Freight Literature and Practice Review. Research Report 538. NZ Transport Agency, Wellington, New Zealand, De Jong, G. (214) Freight Service Valuation and Elasticities. Chapter 9 in Modelling Freight Transport. Tavasszy, L. and Do Jong, G. (Eds.) Gong, Q., Miao, Q., Wang, B. X. and Adams, T.M. (212) Assessing Public Benefits and Costs of Freight Transportation Projects: Measuring Shippers Value of Delay on The Freight System. CFIRE Project Texas Transportation Institute. College Station, TX. Hussein, M.I. and Petering, M.H.E. (29) A Policy Oriented Cost Model For Shipping Commodities By Truck. CFIRE Paper 9-4. University of Wisconsin, Madison. Mei, Q. and A.J. Horowitz (211) Incorporating toll pricing policy into a microsimulation model for long-distance freight transportation. National Center for Freight & Infrastructure Research & Education, University of Wisconsin Milwaukee. Paper No Southworth, F. and Gillette, J. (211) Trucking in Georgia: freight performance measures. Georgia Department of Transportation, Research Project Final Report. Atlanta, GA.

18 Summary- Project Innovations The R&D looks to improve current planning practice through: The Use of alternative spatial and industrial sector disaggregation methods. The Use of recent advances in origin-based network route assignment modeling to connect detailed O-D-Commodity specific flow estimates to specific corridor movements. The Use of the latest theoretical developments in value of time modeling to produce monetized benefits estimates grounded in travel behavior and spatial economic theory Combining All of The Above Within A Single Data-Driven Modeling Framework

19 Modified Travel Times and Costs Task 2: Generating a Disaggregated Matrix of Origin-Destination-Commodity-Truck Class (O-D-C-V) Flows Alternative Flow Disaggregation Methods recently reviewed in Southworth, F. On The Creation of Spatially Disaggregated Commodity Flow Matrices: An Overview of U.S. Studies (Draft report to Oak Ridge National Laboratory, January, 214)* 1. Freight Generation /Attraction (Os & Ds) Proportional Weighting (based on zonal employment, payrolls, populations, ) Regression Models Input-Output (Use & Make) Based Models Simultaneous / Structural Equation Models (SEMs) Special Freight Generators 2. O-D Commodity Flows Bi-Proportional Matrix Balancing Methods Spatial Interaction (Gravity, Entropy, Utility..) Models 3. Ton-to-Truck to-pce conversion methods (including empty trucks) 4. Multi-Class Truck to Highway Traffic Assignment Direct Demand Commodity Flow Models (Os, Ds, and O-Ds) * Some 3 Past Studies Reviewed All-or-Nothing Route Assignment Wardrop User Equilibrium (WUE) Stochastic User Equilibrium (SUE) Origin-Based (Multi-Class) UE

20 Download FAF OD Tables Perform Spatial Disaggregation Identify and Specify Flow Type External-External Flows Perform Tons to Trucks Procedure Combine OD Tables for All Commodities EI/IE Flows Perform Distribution Perform Tons to Trucks Procedure Combine OD Tables for All Commodities Internal-Internal Flows Aggregate I-I Flows from FAF OD s to FAF P s and A s Perform Distribution Perform Tons to Trucks Procedure Combine OD Tables for All Commodities Combine all flow types in one table and import into one matrix file Create Map in TransCAD Connect Centroids to Network Create Network TransCAD Run Multi-Class, OUE Traffic Assignment Update Link Cost 2

21 2.1a County Level Freight Generation (Commodity Production) Modeling 1) 43 2-Digit SCTG Based Commodity Flows Derived from Industry Sector (+ NAICS Codes) U.S. Commodity Flow Survey (= CFS In Scope Flows) Coal Production Spatial and Imports: disaggregation The amount was of accomplished coal mined and using shipped county-level does not FAF3 Regional Control Totals correlate well with farm either production employment data from or payroll the 27 data, Top Census 5 and Commodities its of spatial Agriculture, Shipped, by Tonnage for (+ Truck SCTG Codes) Shipments disaggregation was with therefore data drawn treated from USDA s separately. Desktop There Query is a limited Tool version amount 1.2of coal production in the six state south-eastern region, 12 Gravel most and of crushed it concentrated stone in 31 Nonmetallic mineral products just 1 Alabama This and production 3 Construction Tennessee data * counties. is reported Annual as 11number coal Natural plant sands of animals production sold data and (23) 34 Machinery for these counties, either reported crop sales in kilotons, or crop was acres created harvested. 33 from Articles The of individual base results metal coal are plant then data reported by converted the Energy (e.g. Information from bushels, Spatial Administration bales, Disaggregation weight (EIA, per 214). animal) of To this to data were added FAF3 kilotons, seaport using region-specific the per unit Annual imports, weight conversions 99 extracting Commodity Production unknown only for those specific moved crops 22 Fertilizers inland by truck. and Over types 94% Retail of livestock these within- published Totals region the by shipments 19County the Natural USDA.* gas Level and came petroleum Livestock based in through products on sales the (44) five ports Charleston within SC, a county Jacksonville (composed and 3 Other agricultural products CBP/ZBP, Tampa of cattle FL, 26 USDA, and Mobile calves, Wood products DOE AL, (EIA) broiler Savannah and and EPAGA, with a small volume other also meat-type entering chickens, through data layers, the sources port pullets district & NAICS-to-SCTG and covering eggs, turkeys, the pigs Remainder of North and piglets, Carolina: sheep a result and found lambs, Crosswalks to goats, be consistent 41 and Waste and horses scrap with and the ponies EIA s 99 Commodity unknown 'Monthly Report sold) IM 145' were Services data derived series and for assigned 27. This to SCTG1, combined while production grain crops and 7 Other prepared foodstuffs and fats and oils import data was (including then used (52) barley, to share corn, internal oats, rice, coal rye, originating 34 Machinery sorghum shipment and wheat) volumes were 25 Logs and other wood in the rough across study area assigned counties to in SCTG2 a manner and vegetables, that matched fruits the and volumes nuts and reported other by FAF3 truck shipments. farm crops, including beans, cotton, 43 peanuts, Mixed freight soybeans, sugar 35 Electronic and other electrical equipment cane, sugar beets, and tobacco, were and assigned components and to office SCTG3. equipment Raw 39 Furniture, mattresses and mattress milk production was assigned to SCTG4. supports, Fish lamps, are lighting reported fittings, etc. under NAICS category 114 (fishing, hunting and trapping). 2) CFS Out of-scope Commodity Flows associated with Logging, Construction, Retail, Services, Municipal Solid Waste, and Household & Business Moves 3) CFS Out of-scope Commodity Flows associated with Farm Based & Fishery Commodities Household 4) CFS Out of-scope & Business Commodity Flows associated Moves(4842) with Energy Products: Coal, Crude Petroleum and Petroleum * Products Debris is included in SCTG 41

22 2.1b County Level Freight Attraction (Commodity Consumption) Modeling Preferred Approach = A Supply-Side Input-Output Model FAF3 Regional Control Totals BEA Coal Industry-to-Commodity Consumption and Exports. To (in obtain Ktons, the $Million) likely destination for Truck Shipments Use county and for Make coal shipments, Tables* a surrogate for annual coal delivery data was obtained from the (EPA s egrid website, in the form of County-Based utility plant-specific SCTG Productions and coal-based net Annual electricity Tons generation, of Commodity C reported in megawatt-hours, or MWh Received (EPA, 214). (Consumed) According by to County j, County-Based FAF3, coal (and exports Zip-Based) resulting from truck summed trips over into all a port NAICs county industries in j Employment were limited & Payroll in 27, Data principally through Mobile AL, with a small volume also passing through Miami FL. Let V(C,g) = the dollar value of commodity C used in industry g, then: FAF3 regional coal truck freight destination totals were then U(C,g) = V(C,g)/Σ shared to C V(C,g) these utility which plant-located = the share counties of commodity using the C MWh used data, in the total ($ valued) again rectified output of to industry match FAF3 g. With intra-regional this we then truck compute: destination totals. The most likely error introduced by this method is the T(C,j) = assumption T(C,F) * { gεg(c) that truck U(C,g) mode * [ E(j,g)/ shares jεf are E(j,g) similar ]} across withinregion counties. where T(C,j), T(C,F) = the tons of commodity C destined for county j and for FAF region F, respectively, E(j,g) = the annual employment in industry g in county j receiving commodity C; and the summation is over all industries that consume commodity C. * BEA I-O Tables for 377 detailed NAICS industrial classes

23 2.2 Inter-County (O-D) Commodity Flow Modeling Approach 1: Cross-Product Multiplication. For each Commodity Class C: Tons(i,j) = FAF(I,J) * [ O(i) / OFAF(i) * D(j) / DFAF(j)] where Tons(i,j) = the annual tons of the commodity being flowed moving between counties i and j; O i = county i production (originations), D j = county j attraction (destinations), and OFAF(i) and DFAF(j) = the county aggregated FAF3 regional activity totals for the commodity being flowed Approach 2 (Preferred): Cost Sensitive Spatial Interaction Modeling: For each Commodity Class C Tons (i,j) = O(i) * D(j) * G[Cost(i,j)] * A(i) * B(j) where the A(i) and B(j) = the usual iteratively derived balancing factors* (after Wilson, 1967); and where G[Cost(i,j)] = a function of marginal cost of inter-county transportation; and where each i-to-j cost element is itself a multi-component function of the form: Transportation Cost = α1* Money + α2* Travel Time + α3* Travel Time Reliability * i.e. A(i) = 1/ j B(j).D(j).G[Cost(i,j)] for all i; and B(j) =1/ i A(i)O(i).G(Cost(i,j)] for all j.

24 2.3a Truck Equivalency and Empty Loading Factors (based on Battelle, 211) First, Identify O-D shipment distance and assign to a distance interval range. Distribute truck types v=1,2,..5 across 5 distance intervals (based on VIUS) Truck type v (=1,2, 5) trips are then assigned to each distance-bin specific O-D-C flow as: For: And: Distance Intervals (1,2,..5): < 51 mi., 51-1 mi., 11-2 mi., 21-5 mi., > 5 miles. Truck Body Types (k=1..9): auto, livestock, bulk, flatbed, tank, dry van, reefer, logging other.

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