business logistics 420 public transportation lecture 28:urban goods movement
TRANSCRIPT
![Page 1: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/1.jpg)
Business Logistics 420Public Transportation
Lecture 28:Urban Goods Movement
![Page 2: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/2.jpg)
References
• APTA• US Congressional Reports• MPO Reports
– Tippecanoe County, Indiana– Seattle-Tacoma, Washington
• US DOT– BTS– FTA
![Page 3: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/3.jpg)
Lecture Objectives
• To understand the importance of urban goods movement
• To understand the framework of urban goods movement
• To understand the scope of urban goods movement
• To identify the infrastructure needed for urban goods movement
![Page 4: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/4.jpg)
Why is this important?
• 74% (203 million)of the population in the US is classified as urban, of that amount 66% live in an area with population greater than one million.– This places an enormous burden on the urban
infrastructure to move enough goods into and through cities.
![Page 5: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/5.jpg)
Statistics
• 52 tons of freight are transported for each person, each year.
• Transportation accounts for 66% of the oil and gas used in the US.
• There are only 159,000 miles of NHS road in the country to handle this traffic.
![Page 6: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/6.jpg)
More Stats
• The federal government estimates that congestion causes $40 billion in losses.
• Fed Ex and UPS estimate that each five minutes of delay costs $40 million per year
• Truck delays due to congestion add $7.6 billion annually to the cost of American-made goods.
![Page 7: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/7.jpg)
JIT and Food Distribution
• Urban Areas require vast amounts of food each day.– JIT initiatives increase the number of deliveries– Spoilage dictates that certain goods must be
delivered within certain time frames.– With the exception of self-grown products, all
food is delivered to or through a city
![Page 8: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/8.jpg)
Trends• Transportation accounts for 11% of GDP.
– Even if the percentage remains the same, the cost will rise as population increases.
– Population has been rising by approximately 10% per year, most growth is in urban areas.
– Urban goods costs will continue to rise.
![Page 9: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/9.jpg)
Framework For Study• Definitions:
– Urban goods movement: the study of freight movement into, through, or around an urban area.
– Urban Area: An area (50,000 or more population) so designated by the U.S. Bureau of the Census.
– NHS: National Highway System, interstate and US highway roads that carry the majority of US commerce
![Page 10: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/10.jpg)
Framework (cont.)
• Areas of Focus:– Eastern Cities– Western Cities– Edge Cities
• These are general classifications that will be used to refer to common problems that occur in areas with similar size and design characteristics.
![Page 11: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/11.jpg)
Scope of Study
• Eastern Cities
• Western Cities
• Edge Cities
• Downtown or CBD Areas
![Page 12: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/12.jpg)
Eastern Cities
• Characteristics– These cities developed during the 1700-1800’s
due to their port facilities .– Typical layout consists of narrow, non-grid
streets that service a river or ocean port area.– High population densities radiating from the
original urban area
![Page 13: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/13.jpg)
Eastern Cities
• Problems– Terminal facilities are clustered to serve freight
being moved by water– Streets were designed to serve horse drawn
freight, not truck freight.– Insufficient land to expand transportation
infrastructure, or lessen population density
![Page 14: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/14.jpg)
Western Cities
• Characteristics– Lower population density than Eastern Cities– Growth occurred during the 1950’s, concurrent
with the growth of the Interstate system– Mix of easy interstate access at the periphery,
with insufficient infrastructure in the core of the cities
![Page 15: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/15.jpg)
Western Cities
• Problems– Lack of infrastructure coupled with the lack of
interior space to make improvements– Resulted from the underestimation of demand
during interstate construction, and unforeseen population growth.
– Freight facilities are better than eastern cities, but remain inadequate for the volume of traffic
![Page 16: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/16.jpg)
Edge Cities
• Characteristics– Located outside of cities at the intersection of
Interstates, or other NHS roads– Development is characterized by accumulation
of shopping centers, high-tech industry, and business campuses
– Low resident population density
![Page 17: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/17.jpg)
Edge Cities
• Problems– Inability of road networks to support the inflow
of workers and shoppers.– Lack of an overall design due to unplanned
build-up of industry, and commerce– Lack of sufficient population density to
implement mass transit solutions…freight competes with personal traffic
![Page 18: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/18.jpg)
Infrastructure
• The movement of goods is dependent on the quality, and efficiency of the infrastructure available.
• The transportation infrastructure supports all facets of economic activity in an area.
• The proper blend of new construction, repair, and redesign is vital to the economic development of the US
![Page 19: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/19.jpg)
Infrastructure
• Wholesale and retail sales increase proportionally with an increase in infrastructure spending.
• Improvements in infrastructure translate into cost reductions for business, which means lower costs and higher profits
![Page 20: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/20.jpg)
Statistics
• Federal government reports show a 25% return generated by infrastructure spending.
• NHS roads handle 40% of all freight traffic, but only constitute 4% of roads in the US
• 40% of the 43,500-mile Interstate System, is in "poor" or only "fair" condition
![Page 21: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/21.jpg)
Statistics
• Each year Americans “waste” 1.4 billion gallons of fuel and 1.2 billion person-hours in traffic congestion, these resources would be better spent to increase productivity
• Infrastructure spending has grown at a rate of only 1% per year since the end of the interstate construction era.
![Page 22: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/22.jpg)
Trends• Infrastructure spending has slowed, or even
declined in some years since the end of the interstate construction era.
• Economic and econometric studies have shown positive links between infrastructure development and sales, employment, and new industry development.
![Page 23: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/23.jpg)
Trends• Current government initiatives include a
$5.4 billion federal program to build, repair, or modernize the NHS road network
• New partnerships are being developed between private industry and government agencies to design and implement solutions to the many problems faced by logistics providers.
![Page 24: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/24.jpg)
Infrastructure Components
• Roads– Interstate– US Highways
• Right of Ways (non-road)– Rail– Water
• Terminal Facilities– Loading Docks– Equipment
![Page 25: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/25.jpg)
Roads
• Major component of transportation infrastructure– 46000 miles of interstate– 113000 of other NHS roads– 3.7 million miles of non-NHS road– With rare exception every piece of freight
travels at least part way on the NHS road network
![Page 26: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/26.jpg)
Roads
• Problems– Much of the NHS mileage is rated as fair or
poor.– Attempts to repair these roads cause delays that
adversely impact the very problems that they are meant to address
– None of the NHS roads were designed to carry the volume of traffic that exists today
![Page 27: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/27.jpg)
Right of Ways
• Waterways, and rail ROW are not as noticed as roads, but vital because of US reliance on imported goods and inter-modal transportation– Chicago handles 9.4 million TEU in intermodal
freight per year, this figure has been growing at 5% per year
– Los Angeles handles 5.7 million TEU– Seattle-Tacoma handles 2 million TEU
![Page 28: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/28.jpg)
Right of Ways
• Problems (cont.)– Rail does not suffer from the same congestion
problems, but does suffer the same maintenance issues. Down time for repairs causes delay
– New track is difficult to construct because of the problems associated with securing the ROW
– Redesigning rail nets is difficult due to cost and ROW issues
![Page 29: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/29.jpg)
Right of Ways
• Problems– Port facilities must be modernized and
automated to handle the standardized TEU containers. This means that currently only a few ports can handle international commerce
– Port facilities must have an extensive intermodal capability to move goods inland (by truck or rail)
![Page 30: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/30.jpg)
Terminal Facilities
• Loading docks are easy to overlook, but without them freight cannot be moved.
• Fork lifts and pallet jacks allow quick unloading of trucks, which allows the trucks to return to the road.
• Warehouses allow for consolidation in loading and unloading; this also allows for efficient usage of trucking resources
![Page 31: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/31.jpg)
Terminal Facilities
• Problems– Lack of terminal facilities can cause delays that
limit the productive time of transport assets.– Inadequate support equipment in terminal
facilities will also delay the loading and unloading of freight.
– Limited access to facilities due to traffic patterns or regulations.
![Page 32: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/32.jpg)
What are the solutions?
• Economic
• Structural
• Policy
• Partnerships
![Page 33: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/33.jpg)
Economic
• There are a number of economic issues that are being addressed as part of the “transportation problem”– Unallocated costs…pollution– Economic effects of investment
![Page 34: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/34.jpg)
Financial
• In addition to the true economic issues there are some solutions that should be classified as financial– Providing capital grants– Loan programs targeted toward capital
improvements
![Page 35: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/35.jpg)
Structural
• The most obvious solution sets consist of infrastructure improvements– New roads, bridges, freight facilities– Maintenance of current infrastructure– Redesign of existing networks to improve
performance
![Page 36: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/36.jpg)
Policy
• The most recent legislation has signaled a new trend in transportation laws
• ISTEA and TEA 21 aim to reverse the decades of government neglect that plagued all aspects of freight movement
• These two bills have also helped to create a cooperative atmosphere between the public and private sector
![Page 37: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/37.jpg)
Partnerships
• The new trend is for partnerships to improve freight and transportation matters.
• The majority of resources currently pledged to these matters are related to ISTEA and TEA 21
• There are still numerous projects undertaken by individual companies or governments (agencies, state or local)
![Page 38: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/38.jpg)
Solutions in Action
• TEA 21
• Seattle-Tacoma Freight Mobility Study
![Page 39: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/39.jpg)
TEA 21
• Create jobs and spur economic growth– Jobs that build the roads, roads that create other
economic opportunity
• Invest to provide future growth– Create trusts to insure funding levels
• Create livable Communities– Movements for smart growth and livable cities
• Environmental and Safety programs
![Page 40: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/40.jpg)
Create Jobs
• TEA 21 created a 5.4 billion dollar program of road construction
• TEA 21 has made other money available to private industry for freight, infrastructure, or transportation projects
• TEA 21 has provided funds for research and development of many of the newest technologies…ITS, GPS, Advanced Vehicle Technologies
![Page 41: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/41.jpg)
Investing in the Future
• TEA 21 provides for funding through 2003
• Beyond 2003 trust fund guidelines have been established to enable spending to grow with the economy– Highway– Air (passenger and freight)– Aquatic
![Page 42: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/42.jpg)
Redesign of Current Systems
• TEA 21 has funded numerous programs that seek to maximize the efficiency of current resources– Smart Growth– Livable Cities– Redesign of road and rail networks
![Page 43: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/43.jpg)
Other benefits
• Environmental programs have been funded by transportation money– Pollution due to freight congestion
• Safety programs– Highway – Drug testing
![Page 44: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/44.jpg)
Why Seattle-Tacoma
• Problem Set is similar to many US cities– Population density is growing beyond forecast– Infrastructure is decaying– Current design is not conducive to current
freight needs
• The MPO (Puget Sound Regional Council) actively sought private sector input– Example of the joint nature of current solutions
![Page 45: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/45.jpg)
Background
• 1992: partnership created by PSRC to address the problems of freight movement in the Sea-Tac corridor
• Seattle had one of the busiest ports in the US, but was having trouble moving freight from the docks onto the road or rail network
• Public and private solutions were offered but no comprehensive plans were advanced because there was no comprehensive vision
![Page 46: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/46.jpg)
Statistics
• Three million people live in the Sea-Tac area
• 1.4 million jobs exist because of the movement of freight
• 2 million TEU move through the Port of Seattle
![Page 47: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/47.jpg)
Solutions
• Establish Contacts
• Seek Input
• Examine the entire freight movement system
• Obtain feedback as each project moves forward
![Page 48: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/48.jpg)
Establish Contacts
• In 1992 an advisory board was formed by the PSRC
• This board was tasked with– Surveying private industry freight handlers for
issues and concerns– Evaluating existing and proposed legislation for
its impact across all aspects of freight movement
![Page 49: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/49.jpg)
Seek Input
• All of the major companies involved in freight movement were questioned– By surveys designed to identify infrastructure
problems– Personal meetings to discuss on-going projects,
and how these projects would be affected by legislation or other proposed government projects
![Page 50: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/50.jpg)
Detailed Examination
• Every aspect of the freight system was examined to determine its value
• This systems approach allowed for a comprehensive strategy to be developed
• The partnership between the public and private sectors allowed all resources to be directed toward a common goal
![Page 51: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/51.jpg)
Feedback
• The PSRC was designed to achieve concrete results
• Specific projects were created through the input of PSRC members
• Feedback was provided by all members
• This feedback was promptly responded to
![Page 52: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/52.jpg)
Lessons
• The current infrastructure cannot handle the current usage patterns– Population growth has overburdened the
existing infrastructure– Industrial trends like outsourcing, or JIT have
changed the patterns of usage– Insufficient spending allowed existing
infrastructure to deteriorate
![Page 53: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/53.jpg)
Lessons
• Money is not the answer– The complex problems of the freight industry
cannot be solved by simply spending more– The repair or construction of facilities causes
delays or detours that defeat the purpose of the work
– No individual project can significantly affect the overall problem
![Page 54: Business Logistics 420 Public Transportation Lecture 28:Urban Goods Movement](https://reader030.vdocuments.mx/reader030/viewer/2022032707/56649e4a5503460f94b3d89f/html5/thumbnails/54.jpg)
Lessons
• A comprehensive strategy is needed– Every piece of the freight network must be
analyzed– All affected parties need to provide input
• Government agencies
• Private industries
• Stakeholders
• Academics