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6 Considerations to keep SA competitive in Freight Forwarding and Logistics

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Dept. of Energy seeking more efficient freight, people transport | Fleet Owner

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How the Trucking and Logistics Businesses Work

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Trucking in the 21st Century

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Subscribe Now. Register with JOC. You can also subscribe to our daily newsletter. Skip to main content. Google Tag Manager. Press Release. Forgot your password? Remember me on this computer. Log in. Most of the competing claims concerning this issue that are listed above can be empirically assessed for individual projects, although such assessments are rarely conducted.

The first step in considering public funding for such a proposal should be a quantitative analysis to demonstrate that the rationale for government support is sound. The analysis would estimate the benefits, costs, and government budgetary impacts of proposed infrastructure improvements and compare them with alternative means of serving freight and with alternative institutional arrangements. If the proposal is for government support of a project that cannot obtain private-sector financing, the evaluation should demonstrate that public benefits exist that raise the public rate of return above the private rate.

One such evaluation was begun in The Mid-Atlantic Rail Operations Project is a joint effort of five states and the major Eastern railroads to examine the complementarity of rail freight infrastructure development and Interstate highway capacity expansion in the Northeast United States. Congress should give continued support to the development of DOT capabilities for economic analysis of the federal-aid highway program and federal highway user fees and to the application of this analysis in support of decisions. Congress should provide for joint state—federal efforts to transfer and adapt these federally developed policy guidance tools to state and local needs.

However, better guidance for federal decisions would be possible with improvements to these tools. The DOT model has two major shortcomings. First, it does not support comparisons of highway expansions with congestion pricing or other demand management alternatives.

Therefore, the model overlooks attractive policy alternatives in many instances. Second, it does not incorporate a network model. Consequently, the estimate of benefits from expansion of a highway link does not change if a decision is made to simultaneously expand a substitute or complementary link. The value of the model for policy planning would be greatly enhanced if it were refined to include these capabilities.

In planning future highway cost allocation studies, DOT should review the recommendations of the TRB Committee for Review of the Federal Highway Cost Allocation Study concerning methods for analyzing whether changes in highway user fees could increase the net economic benefit the nation derives from its highway system. In particular, future cost allocation studies should examine whether urban road users are subsidizing intercity highway travel and the implications of any such subsidy for freight transportation efficiency.

Measures of freight transportation activity are necessary for evaluation of transportation improvements. Projections of freight traffic are needed to estimate the benefits of new facilities, which depend primarily on use.

Evaluating regulations and user fee policies also requires data on freight markets. Congress should provide for the ongoing collection of freight transportation statistics by DOT, through the Bureau of Transportation Statistics. The shipper-based Commodity Flow. Survey program should be continued.