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PURPOSE

BACKGROUND

CHAIRMAN'S OPENING STATEMENT

WITNESSES

This hearing is intended to provide Members of the Committee with information regarding the concept of Intermodalism and how Intermodalism can be used in transportation planning to solve transportation problems, such as congestion and freight delay.

Passenger and freight mobility are vital to the economic prosperity of our country. The United States has more than four million miles of highways, railroads, and waterways that connect all parts of the country. It also has 19,000 public and private airports and more than 400,000 miles of oil and gas transmission pipelines. The extent and condition of the nation’s transportation system, its relationship to the nation’s economy, national security, and safety, and its reliance on energy all impact mobility and accessibility.

The nation’s transportation system faces ever growing demands. About 5.0 trillion passenger miles of travel occurred in 2002, an increase of 27 percent from 1992. There were more than 3.8 trillion ton miles of domestic freight shipments in 1999, representing an annual growth of 2 percent since 1990. Annual vehicle miles of travel in the United States rose by nearly 30 percent between 1989 and 1999 to almost 2.7 trillion miles. Air freight, the fastest growing shipment mode, increased 52 percent in value between 1993 and 1997. The U.S. waterborne container trade balance has shifted more toward imports by a gap of four million 20 foot equivalent container units (TEUs) in 1999, up from a gap of one million TEUs in 1993.

These increases in travel have created a transportation system that is a sizable element of the country’s Gross Domestic Product. Transportation related goods and services represent about 11 percent of the U.S. economy and supports one in eight jobs. The transportation system employs millions of people and consumes a large amount of the economy’s goods and services, and according to the Bureau of Transportation Statistics, most transportation modes showed much higher productivity growth between 1955 and 1998 than did the U.S. business sector. It is believed by many transportation planners that much of the credit for the growth in the transportation sector is due to an increased focus at the federal, state, and local level on intermodal transportation.

According to DOT, passenger travel and freight transportation are expected to increase over the next ten years. Current DOT estimates show that between 2000 and 2010, passenger vehicle travel on public roads will grow by 24.7 percent; passenger travel on transit systems will increase by 17.2 percent; and freight moved by truck, rail, and water will increase by 43 percent. When considered as a whole, these increases are likely to lead to increased congestion on our nation’s roads, rails, and waterways. Factors contributing significantly to the projected increase in passenger travel are an increase in population, the aging of the population with more free time for travel, and the general rising affluence of Americans. Projected increases in freight movements can be attributed directly to the increase in international trade.

The term “intermodal” is subject to interpretation, but in terms of freight transportation, an intermodal shipment is generally considered to be one that moves by two or more modes during a single trip. Intermodal connections link the various transportation modes - highways, rail, air, and maritime facilities. These connections are typically the weakest links in the nation’s transportation system and are often the true impediments to improving intermodal passenger and freight transportation. Economists and transportation planners have long agreed that productivity and efficiency gains can be achieved by improving intermodal connections, but continue to grapple with the question of how to fund projects to facilitate intermodal transportation improvements.

The role of states, regions, and local communities in promoting and improving intermodal transportation is significant as the Department of Transportation (DOT ) has a limited role in managing how funds are to be allocated because states are given primary responsibility for allocating funds according to broad program categories. DOT’s ability to set and enforce strong policies on intermodal transportation is also affected by the sources of funding involved in the project and requirements set by the other entities. Intermodal projects may be financed from multiple sources and may include a mixture of federal, state, and local funds along with private funds. Further, the involvement of regional compacts made up of several states and the private sector in planning intermodal connections can often create problems. The private sector tends to need relatively short lead times to develop and complete projects while the public sector requires longer lead times.

Congress has increased the focus on intermodal transportation significantly in recent years through major federal highway legislation, such as the recently enacted Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA: LU) (P.L. 109-59), Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) (P.L. 102 240), and the Transportation Equity Act for the 21st Century (TEA-21) (P.L. 105-178). These laws contained provisions that not only allowed, but encouraged states, regions, and local communities to consider intermodal transportation issues as part of their transportation planning process.

One example often cited as a successful example of intermodal planning is the Alameda corridor. The Alameda corridor project consolidated 90 miles of rail track owned by three different rail companies into one 18-mile rail corridor that transports intermodal freight from the port of Los Angeles and Long Beach to points east. It was designed to alleviate current and future urban congestion from the ports of Los Angeles and Long Beach through the San Gabriel Valley in Los Angeles County, northern Orange County, San Bernardino County, and Riverside County.

While many will point to the Alameda corridor as an example of how federal policy has promoted intermodal transportation, others argue that little has been done in recent years to promote intermodalism. Some transportation planners believe that many of the same problems that existed in September of 1994 when the National Commission on Intermodal Transportation issued its final report still exist today. That report found that federal, state and local policy and decision-making regarding transportation was fragmented. The report stated that for intermodal transportation to grow, efficient intermodal transportation would have to be made a primary goal of federal transportation policy and the federal government would have to make an increased investment directly into intermodal projects.

In considering these factors and making the above projections, DOT has assumed that capacity in all modes, including intermodal connectors, will grow along with demand and prevent future increases in congestion that could significantly constrain growth. The ability of the nation’s intermodal transportation system to grow large enough and fast enough to meet demand will continue to be dependent on federal policy regarding all modes of transportation planning and funding.