Multi-modalism, Public-Private Partnerships Among Recommendations for Improved U.S. Freight Transportation
Sound public policy, including public-private partnerships and improved multimodal connections, will be crucial to maintaining the U.S. freight network’s efficiency and competitiveness, testifiers told members of Congress at the Panel on 21st Century Freight Transportation on June 26. Officials from various logistics and package delivery companies emphasized the value of America’s railroads in “nearly every industrial, wholesale, retail, and resource-based sector” of the U.S. economy and made recommendations to increase future potential of the overall freight network.
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The freight transportation system’s efficiency can be attributed to the multimodal transportation of goods, said Edward Hamberger, President of the Association of American Railroads. He said that policymakers could play a role in improving the multimodal process by establishing programs that improve “first mile” and “last mile” connections between modes like ports and ships to railroads. These connections are “highly vulnerable to disruptions” and more projects like the current TIGER grant program would further improve integration between modes, Hamberger said. Hamberger also highlighted the importance of keeping the current system of balanced rail regulation in place.
Wal-Mart has already been able to reduce transportation miles from “farm to fork” through multimodalism as well as public-private partnerships between farmers and markets, said Tracy Rosser, Senior Vice President of Transportation from Wal-Mart. Rosser recommended “continuing research engagement within the private sector.” Hamberger agreed, saying that public-private partnerships between private freight railroads and government entities provide public dollars for a “mutually beneficial way to solve critical transportation problems” through lower shipping costs, lower fuel consumption and enhanced mobility.
Congresswoman Janice Hahn, D-Calif., said transportation funding from current public-private partnerships could be better allocated to reduce congestion and chronic delays. Flexibility through third-party logistics and short sea shipping programs could also be used to reduce delays, Hahn said.
Hahn added that it would be more beneficial to “utilize the current infrastructure in a better and smarter manner” instead of artificially cutting rates to below-market levels as some special interests are calling for.