[Federal Register Volume 61, Number 64 (Tuesday, April 2, 1996)]
[Notices]
[Pages 14587-14590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7953]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary of Transportation
[Docket No. OST-96-1188]
Proposed Freight Transportation Policy
AGENCY: Office of the Secretary of Transportation, Department of
Transportation.
ACTION: Notice of proposed policy.
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SUMMARY: The Department of Transportation is publishing for comment a
proposed policy statement on freight transportation that establishes
the most important principles that will guide Federal decisions
affecting freight transportation across all modes. These guiding
principles will direct decisions to improve the Nation's freight
transportation systems to serve its citizens better by supporting
economic growth, enhancing international competitiveness and ensuring
the system's continued safety, efficiency and reliability while
protecting the environment.
DATES: Comments on this proposed policy will be received until May 31,
1996.
ADDRESSES: Submit written, signed comments to Docket No. OST-96-1188,
the Docket Clerk, U. S. Department of Transportation , Room PL-401, C-
55, 400 Seventh Street, S.W., Washington, D.C. 20590. All comments
received will be available for examination at the above address between
9:00 a.m. and 5:00 p.m., ET, Monday through Friday, except Federal
holidays. Those desiring notification of receipt of comments must
include a self-addressed, stamped envelope or postcard.
FOR FURTHER INFORMATION CONTACT: Mr. Carl Swerdloff, Office of
Economics, at (202) 366-5427, Office of the Secretary, 400 Seventh
Street, SW., Washington, D.C. 20590. Office hours are from 8:30 a.m. to
5:00 p.m. ET, Monday through Friday, except Federal holidays.
Proposed Freight Transportation Policy Statement
I. Introduction
This statement of guiding principles for the Nation's freight
transportation system sets forth a DOT policy framework that will shape
important decisions affecting freight transportation across all modes.
Our interest is to ensure the Nation has a safe, reliable, and
efficient freight transportation system that supports economic growth
and international competitiveness both now and in the future, while
contributing to a healthy and secure environment. The goal of this
statement is to provide guidance for making the Nation's transportation
system serve its citizens better. To achieve this goal, new
partnerships must be formed among public agencies, the freight
transportation industries and shippers.
Highways, airports, rail facilities, ports, pipelines, waterways,
intermodal transportation, and the freight carriers they serve all play
a vital role in the Nation's economic health. An efficient
transportation system results in lower production and logistics costs
for U.S. firms and better prices for consumers. In order to compete
successfully in international markets U.S. firms must be able to rely
on an efficient domestic freight transportation system that is
effectively managed. The freight transportation system must also
support achievement of other national goals by fostering safe,
effective, timely and environmentally sound freight transportation that
improves the quality of life for all U.S. citizens.
Effective freight transportation policy and planning must consider
that much of our transportation infrastructure is provided by the
different levels of government while major portions are put in place by
private capital. This fusion of public and private investment creates
economic opportunities and regulatory conflicts, both of which must be
considered in the development of a national freight policy.
II. Recent Trends in Freight Movements
Freight moves on systems of increasingly integrated supply chains
and distribution networks operating in States and metropolitan areas,
as well as regionally, nationally, and internationally. Reliance on
just-in-time production and inventory management practices has
increased the demand for more efficient and reliable freight
transportation that is fast and on time. Shippers are increasingly
rationalizing the mix of transportation, inventory, handling, and loss
and damage costs, striving to reduce their total logistics costs. They
are increasingly using fast, reliable transportation in place of large
inventories.
The productivity of freight transportation firms and their ability
to provide timely and reliable service depends not only on the
efficiency of individual modal systems and the effectiveness of the
laws and regulations under which they operate, but also on the
efficiency of intermodal facilities that govern the effectiveness of
their connections to one another. U.S. intermodal freight
transportation links the various modes to meet customers' market needs
by providing integrated origin-to-destination service. It utilizes
advanced technologies and operating systems designed to enhance
productivity, reduce transportation costs, increase service speed and
quality for shippers and lower prices for consumers.
International freight movement takes advantage of the latest
innovations in the global marketplace that reduce cost and better serve
the customer. Customers are establishing global supply chains.
Innovations that are developed by individual carriers are copied by
others when results in savings or service are seen. The use of real-
time, interactive electronic data interchange, and vessel/asset sharing
agreements all provide more efficient and rapid transportation of
international freight movements.
Contractual regimes governing the movement of freight have been
established by the private sector which sometime result in conflicts
with public regulations and create impediments to the safe and
efficient operation of freight transportation. Government typically
regulates the safety, and environmental aspects of infrastructure and
equipment. It also may be appropriate for Government to facilitate
problem solving and provide technical assistance where private and
public sector requirements create barriers to safe and efficient
freight movement. Economic consequences are increasingly a matter of
market decisions by the private sector.
III. Principles of Federal Freight Transportation Policy
The following eight principles provide the basis for a Federal
freight transportation policy:
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1. Provide a planning framework that establishes priorities for
allocation of resources for Federal funding of cost-effective public
infrastructure investments that support broad national goals.
2. Promote economic growth by removing unwise or unnecessary
regulation and through the efficient pricing of public transportation
infrastructure.
3. Ensure a safe transportation system.
4. Protect the environment and conserve energy.
5. Use advances in transportation technology to promote
transportation efficiency, safety and speed.
6. Effectively meet our defense and emergency transportation
requirements.
7. Facilitate international trade and commerce.
8. Promote effective and equitable joint utilization of
transportation infrastructure for freight and passenger service.
1. Provide a Planning Framework That Establishes Priorities for
Allocation of Resources for Federal funding of Cost-Effective Public
Infrastructure Investments That Support Broad National Goals
Enactment of ISTEA, with its requirement for greater emphasis on
intermodal and freight policy issues, marked a new era in
transportation investment decision-making. The transportation planning
process has become increasingly important. Metropolitan and state
officials are now required to identify major freight distribution
corridors; they are also urged to work with carriers and industry to
find ways for improving the efficiency of freight movements. The
transportation planning procedures adopted in ISTEA resulted in an
improved approach to developing freight transportation policy at all
levels of government.
While much of the surface transportation infrastructure is provided
by the private sector (e.g., rail freight facilities, waterside and
truck terminals, oil and gas pipelines), a greater portion of it would
not be built or maintained without public financial support, and all of
it is affected by Federal policies. Private facilities are often
dependant on public investment for their effectiveness, (e.g. waterside
terminals that require public channels, etc.). Federal participation
may be appropriate when infrastructure investment projects have a
national or regional significance or when Federal involvement may
facilitate the resolution of a freight transportation problem. The
value of a particular transportation facility is often dependent on the
existence and effectiveness of a regional or national network which is
often a Federal concern and responsibility.
In cooperation with DOT and other Federal agencies, the Office of
Management and Budget (OMB) has established guidelines for the economic
analysis of Federal infrastructure investments.1 The guidelines
apply rigorous cost-benefit standards to all proposed investments,
including a provision that requires the measurement of costs and
benefits over a project's life-cycle. The OMB guidelines also seek to
encourage, when appropriate, private sector participation in
infrastructure projects and more cost-effective State and local
infrastructure investment programs.
\1\ Executive Order 12893, ``Principles for Federal
Infrastructure Investments,'' Federal Register, Volume 59, No. 20,
January 31, 1994.
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2. Promote Economic Growth by Removing Unwise or Unnecessary Regulation
and Through the Efficient Pricing of Public Transportation
Infrastructure
Although freight transportation services are provided almost
exclusively by the private sector, the Federal Government plays an
essential role in maintaining competition in the transportation
marketplace and in protecting the public from unsafe and
environmentally damaging transportation operations. By promoting
competition, Federal policies can help to foster an environment that
encourages improvements and changes that reduce transportation and
logistics costs. National objectives for the freight transportation
system can be addressed through Federal activities such as deregulation
of entry and ratemaking in the trucking and air cargo industries, in
order to foster an effective, competitive freight transportation
environment.
As the logistical requirements of businesses become more complex,
some shippers and transportation providers will rely increasingly on
intermodal services. Such services should not be hindered by artificial
constraints. Physical and institutional barriers that impede the flow
of freight from one mode of transportation to another should be
eliminated. The elimination of physical, and operational barriers to
freight intermodal operations is primarily the responsibility of
transportation carriers, shippers, and state and local government. The
Federal Government, however, may take action to improve public
infrastructure that is inadequate to support essential freight
intermodal operations or to reduce legal and regulatory barriers such
as those that until 1996 impeded railroad ownership of barge and
trucking companies. The Federal Government may also encourage state and
local governments to take necessary action, or in extreme cases even
preempt them, in order to reduce statutory impediments to intermodal
transportation.
The prices charged for public sector transportation facilities and
services determine whether they are used efficiently. Public facilities
costs that are not included in the transportation rates paid by
shippers may lead to inefficient use of the Nation's limited
transportation resources. Whenever feasible, fees and taxes adequate to
cover the cost of building, operating, and maintaining public
infrastructure facilities should be recovered from the parties that use
and benefit from them.
Federal actions must be evaluated not only for their short-term
impacts but for their longer-term consequences for maintaining viable,
competitive, multimodal freight transportation to serve the Nation.
Therefore, freight regulatory and investment policies must be evaluated
in the context of likely future changes in the linkages between freight
transportation performance and economic performance at the local,
regional, national and international levels. The DOT has recently
completed a comprehensive assessment of its regulations as part of the
National Performance Review. It will reexamine its policies, programs
and regulations periodically to assess their effectiveness and whether
they should be continued.
3. Ensure a Safe Transportation System
Making the transportation system safer is a critical Federal policy
objective. Because the marketplace alone may not be effective in
producing an acceptable level of public safety, the Federal Government
will continue to promote transportation safety through regulation and
enforcement, education, and support of voluntary compliance efforts by
industry. Responsibility for maintaining and improving the safety of
our freight transportation networks requires the cooperation of each
level of government and the private sector.
The Federal Government will continue to support safety research and
the dissemination of information related to safety. The DOT will
continue to support activities to improve the information base needed
to monitor the safety performance of all freight transportation modes
including the full social costs of accidents. Federal research will
focus on the causes of transportation accidents: the role of
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truck, rail, aircraft, and vessel design and performance in accidents
and their solutions, as well as the contribution of human factors and
infrastructure design. The Federal Government will also continue to
work with the private sector on a cooperative basis, to ensure that
proven safety advances are rapidly incorporated into practice,
especially when substantial public benefits will result from their
adoption.
4. Protect the Environment and Conserve Energy
Responsible environmental protection is another important Federal
policy objective and, like transportation safety, environmental
protection requires the cooperation of all levels of government and the
private sector. The total social costs of environmental degradation are
not borne by the transportation users, e.g., the social costs
associated with pollution are not reflected in the costs incurred by
the users or prices charged for transportation services. Thus, the
Federal Government plays and must continue to play an important role in
reducing these social costs and ensuring that they are more accurately
reflected in the price of transportation services through appropriate
regulation or modifications to existing programs. In addition, the
Federal Government will continue to support research and technology
development that is directed at increasing transportation productivity
while maintaining environmental protection.
In pursuing its environmental protection objective, the Federal
Government needs to continue to assess the impacts of environmental
regulation on the performance of transportation operations and will
work with the private sector to implement appropriate environmental
protection measures and technologies in a cost effective and
environmentally sound manner. The Federal Government will seek to
develop regulations that contain performance-based rather than
technology specific standards or criteria so as to permit industry
flexibility and innovation in meeting regulatory requirements. DOT will
continue working to develop techniques for conserving energy and for
better quantifying the social costs of environmental and community
degradation.
5. Use Advances in Transportation Technology To Promote Transportation
Efficiency, Safety and Speed
Application of advanced technology in the transportation system
offers significant opportunities to improve its safety, efficiency,
capacity and productivity.
Private firms invest in advanced communication, navigation,
surveillance, and information technologies which improve the efficiency
of their operations. These advanced technologies facilitate the
movement and tracking of goods and vehicles as well as the exchange of
information among carriers and their customers in the intermodal
transportation system. They also offer tools for strengthening
intermodal connections. Public and private investments for applying
these advanced technologies to the air, highway, marine, and rail
infrastructures have improved the overall efficiency of the
transportation system.
DOT's Federal role in research and development of technologies is
to promote the efficiency and safety of the national transportation
system and to support the application of technologies in the movement
of freight. Specifically, DOT provides leadership for the interagency
coordination of Federal transportation research. This includes
maintaining close dialogue with the private sector and state and local
governments to ensure that DOT research funding reflects priorities of
freight transportation users and providers. DOT will maintain a
leadership role in development of an intermodal research framework.
Advances in information technology are having a dramatic effect on
transportation requirements and the planning of future capacity
investments. DOT works with the private sector to facilitate
communications across modes for intermodal compatibility of technology
applications, such as Global Positioning Systems (GPS) and Geographic
Information Systems (GIS). DOT coordinates with other federal agencies,
such as the Department of Defense and the National Oceanic and
Atmospheric Administration, to ensure that underlying data (such as
weather and positioning information) required as input to these various
systems continue to be available.
DOT will continue to work closely with the freight industry to
ensure that the United States is well represented in international
transportation technology and standards forums.
6. Effectively Meet Defense and Emergency Transportation Requirements
Recent changes in our Nations defense strategy and the downsizing
of the U.S. military establishment have increased the need for
effective deployment of those forces in times of a national emergency.
They have emphasized the need for rapid deployment of large numbers of
people and large amounts of material on short notice. Similarly, when
natural disaster strikes, a high-quality, multimodal transportation
system is critical to ensuring the safety of the affected population
and the ability of local, State and Federal officials to start
rebuilding devastated communities. Deploying personnel, equipment, and
supplies through the air, over land or on the seas, requires well-
planned and maintained transportation systems and facilities for both
the military mission and disaster relief operations.
The Department of Defense has adopted policies that will require
greater use of civilian transportation resources in meeting its
transportation needs. The Nation's freight transportation operators,
therefore, have an essential role to play in the mobilization and
deployment of personnel, equipment and supplies in the event of a
national emergency or a natural disaster. The DOT will continue to work
with the Department of Defense, other Federal agencies, and the
transportation community to identify short- and long-term national
defense and emergency transportation requirements and to ensure that
the transportation system can meet those requirements.
7. Facilitate International Trade and Commerce
To retain and enhance the Nation's competitive position and its
economic vitality, domestic firms must have access to foreign markets
through an efficient transportation system. A competitive international
transportation industry requires highly efficient connections to and
within the domestic transportation system. Where international trade
agreements have been negotiated, as in the case of NAFTA and the GATT,
regulatory policy decisions that primarily affect international freight
movements should also consider their implications for domestic freight
operations and competition. Government can provide new opportunities
for American exporters by leading negotiations with countries in the
European Economic Community and with emerging markets, such as those in
East Asia and Latin America, and by providing technical assistance
programs to promote American transportation and infrastructure
technologies.
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8. Promote Effective and Equitable Joint Utilization of Transportation
Infrastructure for Freight and Passenger Service
The efficient use of the Nation's transportation infrastructure may
require the joint use of facilities by freight and passenger transport
operators. When appropriate, the Federal Government, in conjunction
with State and local agencies and the private sector, will support the
equitable sharing of transportation facilities and infrastructure and
reasonable compensation for their use.
Potential safety problems and reduced freight transportation
operations efficiency may arise from the sharing of facilities. These
concerns should be taken into account in policy initiatives that
address the joint use of facilities. The DOT will continue to support
research in this area and will encourage transportation firms to adopt
new technologies and operating practices that would reduce the adverse
consequences that may arise from the joint use of facilities.
Issued in Washington, DC on March 26, 1996.
Federico Pena,
Secretary of Transportation.
[FR Doc. 96-7953 Filed 4-1-96; 8:45 am]
BILLING CODE 4910-62-P
