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Freight Transportation: National Policy and Strategies Can Help Improve Freight Mobility

GAO-08-287 Published: Jan 07, 2008. Publicly Released: Jan 07, 2008.
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Highlights

Continued development and efficient performance of the nation's freight transportation system is vital to maintaining a strong U.S. economy and sustaining our nation's competitive position in the global economy. Yet, increasing congestion on our nation's roads and rail lines threatens to undermine the efficiency of our freight transportation system. Although the Department of Transportation (DOT) has taken some steps to enhance freight mobility, there is growing concern that additional action is needed. To assist the Congress in enhancing national freight mobility, GAO reviewed (1) factors that contribute to constrained freight mobility and their effects in areas with nationally significant freight flows, and (2) approaches to address freight mobility in those areas and the challenges decision makers face in implementing those approaches. GAO analyzed freight transportation data and interviewed stakeholders in four areas with large freight flows.

A number of factors contribute to constrained freight mobility and, together, these factors have significant adverse impacts. First, growing freight transportation demand decreases freight mobility. Volumes of goods shipped by trucks and railroads, for example, are projected to increase by 98 percent and 88 percent, respectively, by 2035. Second, the capacity of our transportation system is constrained by other factors, including the cost of surmounting geographic barriers, such as mountain ranges and waterways, population density, and urban land-use development patterns. Third, freight mobility is limited by inefficiencies in how infrastructure is used, such as poor road signal timing and prices paid by users that do not align with infrastructure costs, resulting in congestion. The widening gap between the volumes of goods and available system capacity is increasing transportation congestion. Constrained freight mobility has adverse economic costs for consumers, shippers, and carriers, as well as in urban centers where congestion exacerbates environmental pollution and increases health risks, such as respiratory illnesses. Although freight transportation stakeholders have advanced projects and proposals to enhance freight mobility by building new infrastructure and increasing system efficiency, public planners face several challenges when advancing freight improvement projects. These challenges include competition from nonfreight projects for public funds and community support in the planning process, lack of coordination among various government entities and private sector stakeholders, and limited or restricted availability of public funds available for freight transportation. Compounding these challenges facing state and local transportation planners is that the federal government is not well positioned to enhance freight mobility due to the absence of a clear federal strategy and role for freight transportation, an outmoded federal approach to transportation planning and funding, and the unsustainability of planned federal transportation funding. When combined, these challenges and factors hinder the ability of public sector agencies to effectively address freight mobility and highlight the need to reassess the appropriate federal role and strategy in developing, selecting, and funding transportation investments, including those for freight transportation.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation In order to improve freight mobility by more clearly defining the federal role in the freight transportation network and to begin to align federal investments with economically significant national benefits, the Secretary of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include defining the federal role and national interests in freight transportation, including economically-based and objective criteria to identify areas of national significance for freight transportation and to determine whether federal funds are required in those areas.
Closed – Implemented
Continued development and efficient performance of the nation's freight transportation system is vital to maintaining a strong U.S. economy and sustaining our nation's competitive position in the global economy. However, the increasing congestion within the freight transportation system could result in serious economic and environmental implications for the nation. In addition, public sector transportation agencies at the federal, state, and local levels have a significant role in developing and efficiently managing the freight transportation system; however, private sector entities, such as railroads and trucking firms, also play a significant role in enhancing freight mobility. In 2008, GAO reported that freight transportation stakeholders had advanced projects and proposals to enhance freight mobility by building new infrastructure and increasing system efficiency. However, public planners in areas with nationally significant freight flows faced several challenges when advancing freight improvement projects. These challenges included no strategy or clearly defined federal role in freight transportation, competition for public funds from non-freight projects, gaining community support in the planning process, lack of coordination among various government entities and private sector stakeholders and limited availability of public funds for freight transportation. Compounding these challenges the federal government was not well positioned to enhance freight mobility due to the absence of a clear federal role and strategy, an outmoded, unsustainable approach to federal transportation funding. As a result, the ability of public agencies to effectively address freight mobility was hindered. Therefore, GAO recommended that the Department of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include defining the federal role and national interests in freight transportation, including economically-based and objective criteria to identify areas of national significance for freight transportation and to determine whether federal funds are required in those areas. In September 2020, the Department of Transportation issued its National Freight Strategic Plan, developed in consultation with public and private sector freight stakeholders. This plan sets the federal role in supporting and overseeing the U.S. freight system by establishing principles of modernization of regulations, improving multi-jurisdictional and multimodal collaboration, providing targeted resources, and investment in data and research. DOT has also developed strategic goals, such as to improve safety, modernize infrastructure and supporting innovation that align with these guiding principles designed to guide a strategic federal role in freight transportation. The plan also states that federal freight transportation funding will be leveraged via competitive grants, among other mechanisms, into targeted, data-driven investments with the goal of enhancing capacity and optimize existing capacity. By issuing this strategic plan, the Department of Transportation has better defined the federal role in funding freight transportation projects.
Department of Transportation In order to improve freight mobility by more clearly defining the federal role in the freight transportation network and to begin to align federal investments with economically significant national benefits, the Secretary of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include establishing the roles of regional, state, and local governments, as well as the private sector.
Closed – Implemented
Continued development and efficient performance of the nation's freight transportation system is vital to maintaining a strong U.S. economy and sustaining our nation's competitive position in the global economy. However, the increasing congestion within the freight transportation system could result in serious economic and environmental implications for the nation. In addition, public sector transportation agencies at the federal, state, and local levels have a significant role in developing and efficiently managing the freight transportation system; however, private sector entities, such as railroads and trucking firms, also play a significant role in enhancing freight mobility. In 2008, GAO reported that freight transportation stakeholders had advanced projects and proposals to enhance freight mobility by building new infrastructure and increasing system efficiency. However, public planners in areas with nationally significant freight flows faced several challenges when advancing freight improvement projects. These challenges included no strategy or clearly defined federal role in freight transportation, competition for public funds from non-freight projects, gaining community support in the planning process, lack of coordination among various government entities and private sector stakeholders and limited availability of public funds for freight transportation. Compounding these challenges the federal government was not well positioned to enhance freight mobility due to the absence of a clear federal role and strategy, an outmoded, unsustainable approach to federal transportation funding. As a result, the ability of public agencies to effectively address freight mobility was hindered. Therefore, GAO recommended that the Department of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include establishing the roles of regional, state, and local governments, as well as the private sector. In September 2020, the Department of Transportation issued its National Freight Strategic Plan, developed in consultation with public and private sector freight stakeholders. This plan sets the federal role in supporting and overseeing the U.S. freight system by, among other things, improving multi-jurisdictional collaboration between the federal, state and local governments as well as the private sector. The plan states that federal government can now support more effective state and local decision-making by identifying nationally and regionally significant goods movement infrastructure and encouraging multistate collaboration. By issuing this strategic plan, the Department of Transportation has better established the roles of regional, state and local governments as well as the private sector in freight transportation projects.
Department of Transportation In order to improve freight mobility by more clearly defining the federal role in the freight transportation network and to begin to align federal investments with economically significant national benefits, the Secretary of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include using new or existing federal funding sources and mechanisms to support a targeted, cost-effective, and sustainable federal role in freight transportation.
Closed – Implemented
Continued development and efficient performance of the nation's freight transportation system is vital to maintaining a strong U.S. economy and sustaining our nation's competitive position in the global economy. However, the increasing congestion within the freight transportation system could result in serious economic and environmental implications for the nation. In 2008, GAO reported that freight transportation stakeholders had advanced projects and proposals to enhance freight mobility by building new infrastructure and increasing system efficiency. However, public planners in areas with nationally significant freight flows faced several challenges when advancing freight improvement projects. These challenges included no strategy or clearly defined federal role in freight transportation, competition for public funds from non-freight projects, gaining community support in the planning process, lack of coordination among various government entities and private sector stakeholders and limited availability of public funds for freight transportation. Compounding these challenges the federal government was not well positioned to enhance freight mobility due to the absence of a clear federal role and strategy, an outmoded, unsustainable approach to federal transportation funding. GAO previously reported that a framework with components that GAO believed would be helpful in guiding future federal freight transportation investments. Implementing this framework would include, among other things, identifying sustainable revenue sources and cost-effective funding mechanisms that can be applied in order to maximize the national public benefits of federal investments. Therefore, GAO recommended that the Department of Transportation should develop with Congress and public and private sector stakeholders a comprehensive national strategy for freight transportation. This national strategy should include using new or existing federal funding sources and mechanisms to support a targeted, cost-effective, and sustainable federal role in freight transportation. In September 2020, the Department of Transportation issued its National Freight Strategic Plan, developed in consultation with public and private sector freight stakeholders. This plan sets the federal role in supporting and overseeing the U.S. freight system by among other things, improving multi-jurisdictional and multi-modal collaboration and providing targeted resources. The plan also states that federal freight transportation funding will be leveraged via competitive grants, among other mechanisms, into targeted, data-driven investments with the goal of enhancing capacity and optimize existing capacity. The plan states that the federal government will provide targeted federal resources and financial assistance to these projects by using competitive grants, formula funding and innovative finance programs. By using these resources, the federal government will leverage federal funds, incentivize state and local funding, encourage multijurisdictional partnerships, and support private investment. According to the plan, the federal government can better support more effective state and local decision-making by identifying and funding nationally and regionally significant freight transportation infrastructure and investment in that infrastructure. As a result, by issuing this strategic plan, the Department of Transportation has better positioned to ensure that revenue sources and funding mechanisms achieve maximum national public benefits of federal freight infrastructure investments.

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Cost analysisFederal fundsFreight transportationFreight transportation ratesFunds managementProgram evaluationRisk assessmentRoad surfacesStrategic planningTransportation costsTransportation industryTransportation planningTransportation ratesTransportation safety