Slide1: National Strategy to Reduce Congestion on America’s Transportation Network


Slide2: “Mobility is one of our country’s greatest freedoms, but congestion across all of our transportation modes continues to limit predictable, reliable movement of people and goods, and poses a serious threat to continued economic growth. Congestion no longer affects only roads in larger urban areas, but is spreading across America.” Secretary Mary Peters, October 2006 “Congestion is not a fact of life. We need a new approach and we need it now.” - Former Secretary Norman Mineta, May 2006


Presentation Outline: Presentation Outline Scope of the problem Costs of congestion Public opinion A challenge of expectations Causes Fundamental causes of highway congestion Secondary causes of highway congestion Traffic and capacity imbalance Solutions The confluence of factors A six point plan Progress to date How you can get involved


Slide4: Scope of the Problem


The Big Picture: Cost of highway congestion in 2003 3.7B hours of travel delay, and 2.3B gallons of wasted fuel… …for a total cost of $63B Total costs would be much higher if unreliability, inventory and environmental costs (among others) were included Cost of aviation congestion Annual commercial airline passenger delays amount to $9.4B in U.S. delay costs The Big Picture


Cost of Congestion in Wasted Time and Fuel in the Largest Urban Areas: Cost of Congestion in Wasted Time and Fuel in the Largest Urban Areas


Growth in Wasted Hours : Growth in Wasted Hours Congestion has increased dramatically over the past 2 decades In the 13 largest cities, drivers spend the equivalent of almost eight work days each year stuck in traffic Source: Texas Transportation Institute, 2005 Urban Mobility Report Annual Hours Lost to Congestion Per Peak Hour Driver Very Large Metro Areas, 1983 v. 2003


Cost to Families and Civic Life: Cost to Families and Civic Life As time spent commuting has grown, Americans have lost family & personal time According to a survey by the Washington Family Council… 55% of those surveyed with children at home miss one or more family functions per week due to traffic congestion Congestion also negatively impacts the country's social fabric “the evidence suggests that each additional 10 minutes in daily commuting time cuts involvement in community affairs by 10%” (Robert Putnam, Bowling Alone, 2000)


Cost of Congestion to U.S. Businesses: National retailer keeps $2.5B merchandise on-hand, but adds 10 days of “buffer stock” to its inventory due to rail delays. Additional stock costs $2.7M annually. In 2000, congestion at the Ambassador Bridge between Detroit, Michigan and Windsor, cost motor carriers between $150M and $200M. Last year, congestion at the Otay Mesa and Tecate crossings, along the California-Mexico border, cost the U.S. economy $3.7B in output and almost 40,000 jobs. Atlanta area distributor of pet food with an 11-truck fleet finds it difficult for one truck to make more than 12 daily deliveries; in 1984, one truck made as many as 20 deliveries each day. Cost of Congestion to U.S. Businesses


A Threat to the Inventory Revolution: A Threat to the Inventory Revolution 1 Source: Census Bureau. 2 Source: Bureau of Economic Analysis, “17th Annual State of Logistics Report” (June 2006). Since deregulation, U.S. business inventory requirements have fallen precipitously, making the U.S. supply chain the most efficient in the world This reduction has reduced total logistics costs and improved U.S. corporate earnings Macroeconomists assert that these trends have played a major role in supporting U.S economic growth Growing congestion will require businesses to carry more inventory, effectively reversing these trends Logistics costs as % of GDP 2 Inventory Transportation Total


No Longer Just an Urban Issue: No Longer Just an Urban Issue Trends show congestion in smaller cities trailing larger cities by ~10 yr The travel growth rate has been even greater in rural than in urban areas Freight volumes are expected to increase by 70% by 2020 If left unaddressed, by 2020 congestion will clog many major interstate corridors National Highway System estimated peak period congestion (2020)


An Increasingly Frustrated Public: An Increasingly Frustrated Public Traffic congestion ranked ahead of education and healthcare as the fastest deteriorating condition in America’s cities 1 79% of respondents in ten metro areas see congestion as getting worse over the last 5 years; 50% see it as “much worse” (2001) 2 62% rated transportation as the #1 issue facing Northern VA (2005) 3 1 National League of Cities survey of cities, 2005. 2 U.S. Conference of Mayors survey on traffic congestion, 2001. 3 Northern Virginia Transportation Alliance survey, August 2005.


A Difference in Expectations: A Difference in Expectations Highway congestion during morning and afternoon rush hours in every major city in America is the transportation equivalent of a blackout or rolling brownout A single such blackout in NYC in 2003 produced calls for nationwide electricity reform


Causes: Causes


Causes of Highway Congestion: Causes of Highway Congestion Fundamental causes No mechanism to manage use and prevent gridlock The price of highway travel (gas taxes, registration fees, etc.) bears little or no relationship to the cost of congestion Secondary causes Source: “An Initial Assessment of Freight Bottlenecks on Highways.” FHWA White Paper (Oct. 2005)


Traffic and Capacity Imbalance: Traffic and Capacity Imbalance The Interstate Highway System comprises just over 1% of the Nation's total miles of roadway, but carries almost 25% of all traffic. % Increase (1980-2003)


Solutions: Solutions


Why Now?: Why Now? Surging public discontent with congestion and “pork” barrel spending New advances in technology that can greatly improve system management and pricing Successful congestion reducing demonstrations in major cities around the world Strong private sector investment interest in U.S. infrastructure Growing consensus that traditional financing mechanisms for highway and aviation infrastructure are unsustainable Economic benefits of trucking, rail and aviation deregulation (estimated at $60B/year) increasingly threatened


A Six Point Plan: A Six Point Plan Execute “Urban Partnership Agreements” with 1-5 major metro areas Encourage States to consider enacting public private partnership laws Develop new interstate highway and rail capacity through a “Corridors of the Future” competition Reduce bottlenecks at major freight gateways, including Southern California Find and implement solutions to border congestion Accelerate major airport capacity projects, reform airport pricing policies and overhaul the air traffic control system


1) Execute “Urban Partnership Agreements” with 1-5 major metro areas: 1) Execute “Urban Partnership Agreements” with 1-5 major metro areas DOT Actions Develop an Urban Partnership Agreement with 1-5 “model” cities who agree to pursue the following policies: Congestion pricing/high occupancy toll (HOT) lanes Bus Rapid Transit (BRT) Telecommuting and flex scheduling Technological and operational approaches to improve system performance Support DOT’s urban partners with resources including: Funding from DOT’s Intelligent Transportation Systems Congestion Mitigation Model Demonstration (ITS-CMMD) Program Funding from FHWA’s Value Pricing Pilot Program Potentially-expedited project delivery DOT’s expertise and dedicated staff resources


2) Encourage States to consider enacting public private partnership laws: 2) Encourage States to consider enacting public private partnership laws DOT Actions Develop an organized effort to encourage states to enact legislation enabling them to enter into infrastructure agreements with the private sector Overcome institutional resistance to reform through education, demonstrations and relationship building with state agencies and private investors/developers Utilize existing Federal program authorities and SAFETEA-LU implementation to encourage formation of public-private partnerships


3) Develop new interstate highway and rail capacity through a “Corridors of the Future” competition: 3) Develop new interstate highway and rail capacity through a “Corridors of the Future” competition DOT Actions 1. Accelerate development of multi-state, multi-use transportation corridors by: Promoting new financing and operational models Providing more certainty in the environmental review process Support this corridor development by: Fast-tracking corridor projects in SAFETEA-LU that are likely to reduce congestion Running a competition to select 3-5 major corridors in need of long-term investment Convening a multi-state process to advance project development


4) Reduce bottlenecks at major freight gateways, including Southern California: 4) Reduce bottlenecks at major freight gateways, including Southern California DOT Actions Bring together Federal, State, local, and private-sector officials to forge consensus on solutions to relieve freight bottlenecks Collaboratively and expeditiously address regional goods movement and related community and environmental challenges


5) Find and implement solutions to border congestion: 5) Find and implement solutions to border congestion DOT Actions Identify and pursue innovative solutions that maximize efficiency of border facilities while maintaining motor carrier safety Work with State, local, and private sector stakeholders – to accommodate increased demand at the most congested bridges and highways on our borders


6) Accelerate major airport capacity projects, reform airport pricing policies and overhaul the air traffic control system: 6) Accelerate major airport capacity projects, reform airport pricing policies and overhaul the air traffic control system DOT Actions Reduce delays and improve efficiency at LaGuardia by: - Developing auctions or congestion pricing as market-based congestion management tools - Redesigning the region’s airspace - Replacing the High Density Rule until market-based tools are ready Design and deploy a modernized aviation system (the Next Generation Air Transportation System) to avoid congestion; finance it largely on a cost basis Give priority treatment and agency resources to projects that enhance aviation system capacity 4. Streamline environmental reviews for airport and aviation capacity projects


Slide26: Comments, Questions and Discussion