Massachusetts Department of Transportation Freight Plan 1 1-i Freight Plan Overview and Goals……………………………………………………………1 1.1 Overview of Approach and Methodology………………………………………………1 1.2 Organization of the Freight Plan………………………………………………………...2 1.3 Data Collection and Analysis……………………………………………………………3 1.4 Public and Stakeholder Participation Process………………………………………...4 1.5 Goals and Objectives…………………………………………………………………….5 1.5.1 Study Background…………………………………………………………………..5 1.5.2 Freight Plan Vision………………………………………………………………….5 1.5.3 Goals and Objectives……………………………………………………………….6 September 2010 Massachusetts Department of Transportation Freight Plan 1 1.1 Freight Plan Overview and Goals OVERVIEW OF APPROACH AND METHODOLOGY The Massachusetts Department of Transportation (MassDOT) recognizes the importance of goods movement to the mobility, economy, and quality of life in the Commonwealth. To fully understand and facilitate the most efficient use of this important aspect of transportation, MassDOT has produced this comprehensive multi-modal Massachusetts Freight Plan (Freight Plan). Efficient, cost-effective freight movement is an important element of economic competitiveness, especially as domestic and global trade continues to expand. In addition, Massachusetts with its relatively high per capita income is increasingly reliant on the delivery of consumer goods via the freight system and distribution centers. And by its nature, freight operations interact closely with passenger movements whether directly with passenger rail such as Amtrak and commuter services, or indirectly with highways, airports, and seaports. The purpose of the Freight Plan is to produce a comprehensive evaluation of the Commonwealth’s freight transportation system, its operations, and its effect on economic development and quality of life. The plan is multi-modal and intermodal in its scope, analysis, and recommendations. The scope includes evaluation and analysis of: Freight transportation infrastructure; Freight sector operations and demands on the transportation system; State, regional, national, and international freight trends and influences; Freight system strengths, opportunities and challenges; and Policy and investment consideration for state and local government and private industry. The Freight Plan is primarily intended as a statewide initiative but given the nature of goods movement and transportation policy, the analysis extends beyond the Commonwealth’s borders to incorporate broader regional and national considerations and trends. Additionally the Freight Plan examines how freight transportation improvements require partnership with local, regional and private sector stakeholders throughout Massachusetts. This planning effort also included the development of a comprehensive, stand-alone Rail Plan. The Rail Plan incorporates the rail-related evaluation and deliverables from the multi-modal Freight Plan, along with a more detailed analysis of all rail infrastructure and operations. This rail-focused scope included evaluation and analysis of: The inventory of rail facilities in the Commonwealth; Evaluation of freight only rail lines; Evaluation of passenger only rail lines; Shared freight and passenger operations; Intermodal freight and passenger connection; and The major ongoing and future rail-related initiatives in Massachusetts. The Rail Plan is fully compliant with the requirements set forth by the U.S. Department of Transportation in Title 49 of the Code of Federal Regulations (49 CFR Part 266.15). 1-1 September 2010 Massachusetts Department of Transportation Freight Plan 1.2 ORGANIZATION OF THE FREIGHT PLAN The Freight Plan provides a comprehensive evaluation of the freight system in Massachusetts across multiple disciplines including infrastructure conditions, freight operations and logistics, commodity trade flow analysis, economic development and land use, and detailed mode-bymode assessments. This analysis builds towards an evaluation of issues, opportunities, and strategies to enhance the freight system. The Freight Plan includes specific performance measures and evaluation criteria related to the goals and objectives. The Freight Plan consists of the Executive Summary and the full technical report. The full technical report is organized as follows. Existing Conditions – This section provides a description of the Massachusetts freight system, the infrastructure conditions and constraints, and the regional, national, international context for trade and goods movement. It sets the baseline of current freight system conditions in Massachusetts for evaluation of freight trends, potential investment strategies, and policy recommendations. Specific elements of the existing conditions are: Regional, national and international context – This section describes global trade and logistics trends as well as key regional freight flows and connections as goods movement tends to involve long-distance, multi-state shipments. Massachusetts freight system infrastructure and operations by mode – Detailed infrastructure and operational assessments for each mode, highway, rail, seaports, and air, are provided in this section. Future Conditions – This section is focused on economic and trade trends, issues, and opportunities. The trade and economic analysis examines recent trends in terms of freight’s role in the Commonwealth’s economy, land use development trends and issues, and key freight flow data by mode, commodity and shipping pattern. Specific elements of the future conditions are: economic, industry and land use development trends, which include measures on economic and demographic growth, freight transportation contributions to the Massachusetts economy, and industrial land use and freight facility data. Freight flows, modal choices, and shipping patterns – This section offers freight and trade shipping patterns by mode, commodity, origin-destination shipping patterns, comparing Massachusetts and US trends. It also includes forecasts of freight growth. Recent, on-going and planned freight initiatives in Massachusetts – The Commonwealth has a number of recent, current, and planned transportation initiatives that will benefit goods movement and this section highlights some of the key projects. Issues and opportunities – This section describes the key freight issues and opportunities for each mode and sets the stage for the investment scenario analysis that follows. Investment Scenario Analysis – To address the freight issues and opportunities identified above, MassDOT developed a number of potential multi-modal freight investment strategies. Each investment strategy consists of multiple projects and supporting policies. This section presents those investment scenarios in detail, including a discussion of the evaluation criteria and benefit-cost analysis framework and results developed to assess potential freight investments. Specific elements of the investment scenario analysis are: 1-2 September 2010 Massachusetts Department of Transportation Freight Plan Development of investment scenarios and goals – This section presents the process to identify potential freight improvements based on data analysis and stakeholder input, and explains the ultimate goals of freight investments in the Commonwealth. Evaluation criteria and benefit-cost analysis framework –The Freight Plan developed a freight-specific set of evaluation criteria as well as customized benefit-cost analysis tools to assess the public and private benefits of freight investments. Investment scenario results – Specific outcome metrics for each scenario are provided and include benefit-cost ratios, net present value (NPV), and identification of the freight projects likely to produce the greatest return on investment within each scenario. Findings and Recommendations – The final section of the executive summary covers key freight analysis findings and a series of policy and investment recommendations to guide the Commonwealth’s freight-related initiatives in the near- and long-term. Specific elements of the findings and recommendations are: Freight investments with the highest return on investment (ROI) – Based on the investment scenario analysis, this section focuses on the freight investments expected to produce the strongest ROI for Massachusetts, highlighting opportunities for potential Commonwealth participation in funding freight projects. Policy issues and recommendations – The concluding section of the Freight Plan includes specific policy issues and recommendations in terms of land use development, freight funding, and the planning and regulatory environment. The remainder of this chapter covers the overall approach to the Freight Plan including public and stakeholder involvement process. 1.3 DATA COLLECTION AND ANALYSIS To develop this multi-modal freight plan, a wide range of data sources and analytical tools were gathered, examined, and integrated. The most significant data resources for the Freight Plan are summarized below. Other specific data or other information resources are identified in relevant sections of the Freight Plan. Economic Conditions and Trends – This analysis incorporates data from a number of readily available data sources such as the Massachusetts Executive Office of Labor and Workforce Development, the U.S. Census Bureau, the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the IMPLAN economic model for Massachusetts. Trade Flow Analysis – The major data sources to examine the movement of goods by tonnage and value were: a) 2007 Global Insight TRANSEARCH data for county-level goods movement by mode, weight, and commodity; b) Federal Highway Administration’s Freight Analysis Framework (FAF) data; c) WISER import and export trade data; and d) port-specific data and forecasts obtained from Massport and other ports. Modal Assessments – MassDOT provided critical information on infrastructure, operations, traffic volumes, truck routes, and other factors. Information was also gathered directly from railroads, ports, and trucking and distribution organizations through a series of interviews and outreach. Land Use Development – The Massachusetts Alliance for Economic Development (MassEcon) provided data on available sites and buildings throughout the Commonwealth, including rail-served sites using their SiteFinder database. Performance Measures and Evaluation Criteria – The Freight Plan incorporated best practices from a number of existing freight planning studies to determine a set of metrics 1-3 September 2010 Massachusetts Department of Transportation Freight Plan that are readily available for use to track performance over time, and help evaluate and prioritize investments. Funding and Financing – Data on funding and financing were gathered directly from MassDOT, along with Massport and the Massachusetts Bay Transportation Authority (MBTA). In addition, the Freight Plan used information from published FHWA and US DOT financing studies and programs to document best practices from other states and available funding mechanisms. Economic Benefit and Cost Analysis – The Freight Plan assessed the full-range of economic impacts, benefits, and costs of proposed improvement strategies using a customized Massachusetts version of the Transportation Economic Development Impact System (TREDIS) provided by the Economic Development Research Group. 1.4 PUBLIC AND STAKEHOLDER PARTICIPATION PROCESS A public and stakeholder participation process was woven into the development of the Freight Plan with two primary goals: (1) to inform the public and key regional freight stakeholders about the purpose and content of the state freight plans; and (2) to receive input from the public and key regional freight stakeholders about issues and needs. The importance of the input provided by the full-range of freight stakeholders cannot be overstated in terms of identifying issues, and assessing potential investment and policy strategies. To implement the public and stakeholder participation process, a concerted effort was made to engage representatives from the thirteen Regional Planning Agencies (RPAs) in Massachusetts. Regional planners actively assisted in the Freight Plan’s development by cohosting regional public meetings, identifying stakeholders, disseminating news and notices of the study through regional contacts, mailing lists and newsletters and providing feedback on freight issues within their regions. To gain an early understanding of the freight trends and issues and opportunities, the outreach in the initial phases of the Freight Plan was targeted to freight stakeholders and planners. Dozens of stakeholders were interviewed for information related to specific stakeholder trends, issues, and opportunities. Feedback was requested on potential strategies to improve the freight system within the Commonwealth. Given the limitations of published data, these interviews served to supplement the data analysis findings to better understand issues such as: a) true origin to destination shipping patterns and modal needs; b) realistic opportunities to divert freight from truck to other modes; and c) business and land use opportunities given current and potential policy programs and incentives. A more detailed summary of the findings from these interviews and focus group meetings can be found in the trade flow analysis chapter. Specific efforts were made to meet with key agencies, organizations and freight service providers and associations, including Massport and the Massachusetts Seaport Advisory Council, Massachusetts Motor Transport Association, MBTA, the Executive Office of Housing and Economic Development, MassEcon, MassDevelopment, and the Massachusetts Railroad Association and its members. A project website, www.mass.gov/massdot/freightandrailplan/, was created to provide information on the development of the Freight Plan. Accessible information included study documents and reports, notice of meetings, and summaries of public meetings. The website also had a public comment section where people could voice opinions, read comments submitted by others, and make direct contact with the Freight Plan team. 1-4 September 2010 Massachusetts Department of Transportation Freight Plan At the initiation of the study, a Working Group consisting of the primary freight sector stakeholders in Massachusetts was formed. Meetings of this group provided a forum for detailed involvement and feedback. All major findings and products have been developed under the guidance of the Working Group. A series of Focus Group meetings were held at various stages of the Freight Plan’s development to gather information and provide feedback on strategies. Participation in these meetings ranged from six to 40 attendees. Meetings were held with the following groups: Port Professionals Alliance (maritime), Boston Port Carriers (truck), and the Massachusetts Motor Transport Association. Additionally, a discussion on land use development in relation to freight infrastructure was held with regional planners, economic development officials, and key rail, marine, and aviation stakeholders. Focus group meeting presentations are posted on the Freight Plan web site. Two rounds of Public Meetings were held within four regions – west, central, northeast, and southeast sections – across the Commonwealth. The initial meeting was held in the fall of 2008 at the conclusion of the data gathering phase of work. Press releases were written and distributed to dozens of newspapers announcing the public meetings. The second round of meetings was held in March 2010, again with meetings in each of the four regions of Massachusetts. The second round of meetings focused on the Freight Plan draft findings and recommendations with emphasis on investment and policy strategies. About 160 individuals attended each round of these meetings. Public meeting presentations and meeting notes are posted on the Freight Plan web site. Input from these meetings was incorporated into the final Freight Plan. 1.5 GOALS AND OBJECTIVES 1.5.1 STUDY BACKGROUND While Massachusetts has developed a number of regional and Commonwealth level transportation studies, this is the first effort to provide a comprehensive multi-modal freight evaluation. Consequently, an important element of the Freight Plan was to develop a unifying vision, and a set of goals and objectives that can be linked to performance measures and evaluation criteria. These metrics will be used to help: a) assess the overall performance and improvement of the freight system; and b) help the Commonwealth to consistently assess and prioritize investment and policy strategies. 1.5.2 FREIGHT PLAN VISION The Commonwealth of Massachusetts is one of the most economically competitive states in the nation. It has the third highest per capita income in the US1 and has ranked number one in the New Economy Index by the Kauffman Institute since 1999.2 This position of strength is owed to a number of key assets: the knowledge based economy, which currently is witnessing industrial expansion in the areas of biotech, defense, and medicine; the continued viability of traditional industries such as cranberry farming and paper production; and the powerful and relatively affluent consumer base made up of the citizens of the Commonwealth. The vision for the future freight system in Massachusetts is to maintain and improve upon the ability to efficiently, extensively, and safely transport goods within and across its borders by 1 2 http://www.census.gov/compendia/statab/2010/ranks/rank29.html http://www.kauffman.org/uploadedfiles/2008_state_new_economy_index_120908.pdf 1-5 September 2010 Massachusetts Department of Transportation Freight Plan truck, train, ship, or plane. The Freight Plan sets forth policies and prioritizes investments to facilitate the realization of the vision for the freight system. The realization of the vision for the freight system is intended to provide public benefits in the form of the efficient movement of goods and people that preserves and expands the economic viability of the Commonwealth and enhances the well-being of its citizens. 1.5.3 GOALS AND OBJECTIVES The goals for the Massachusetts freight system were developed in the context of other MassDOT initiatives and its overall strategic plan. The MassDOT strategic plan includes a mission statement, “To deliver excellent customer service to the people who travel in the Commonwealth and to provide our nation’s safest and most reliable transportation system in a way that strengthens our economy and quality of life.” To accomplish this, MassDOT has established goals as follows.3 Safety – Manage the nation’s safest transportation system State of Good Repair – Build a quality transportation system and maintain it in a state of good repair Stewardship – Operate the transportation system in a manner that embraces our stewardship of the Commonwealth’s natural, cultural, and historic resources Customer Service – Deliver superb service that both anticipates and responds to customer needs Efficiency – Invest public funds and other resources wisely while fostering economic development wherever and whenever possible Consideration for the elements of the MassDOT strategic plan was incorporated in the development of the Freight Plan. Another key guiding principle for the Freight Plan was the GreenDOT Policy Directive. It is a comprehensive sustainability initiative with a vision that MassDOT will be a national leader in promoting sustainability through the full range of its activities, including strategic planning, construction, and system operations. The three GreenDOT goals are to: 1) reduce greenhouse gas (GHG) emissions; 2) promote the healthy transportation modes of walking, bicycling, and public transit; and 3) support smart growth development. Freight operations are an important consideration in promoting a sustainable transportation system. In the context of these MassDOT policies, overarching goals were identified for the Massachusetts freight system as presented below. Infrastructure – Promote the preservation and improvement of the freight system infrastructure in all modes Operations – Facilitate appropriate freight system capacity and redundancy, enhance operational efficiency, and achieve a balanced mix of capacity and connections across all modes Economic Development – Facilitate freight transportation system improvements, policies and investment strategies that will enhance economic development opportunities and manage consumer costs 3 MassDOT Strategic Plan, May 14, 2010. 1-6 September 2010 Massachusetts Department of Transportation Freight Plan Environment and Quality of Life – Ensure that the freight system preserves the environment and contributes to the quality of life in Massachusetts To fulfill these goals, the Freight Plan is focused on providing transportation infrastructure and services in Massachusetts that: 1) facilitate the movement of goods to consumers efficiently and cost-effectively; 2) support economic prosperity for Massachusetts businesses; and 3) promote a strong quality of life for Massachusetts residents. The recommended investments and policies of the Freight Plan were developed in this context and the analysis of benefits and costs of freight improvements explicitly measured: a) the transportation costs, travel time, safety, and efficiency of goods movement; b) the environmental benefits of shipping more freight by rail and water; and c) the economic impacts of potential investments. Specific policy and performance objectives tied to the goals of infrastructure, operations, economic development, and environment and quality of life are presented below. Infrastructure and Operations – Ensure adequate capacity and operational efficiency of the freight system in Massachusetts. Objectives Ensure adequate multi-modal and intermodal freight capacity throughout Massachusetts Provide infrastructure redundancy and competitive freight corridors and routes to meet domestic and global demand Reduce delays and bottlenecks across the multi-modal freight system by optimizing the operations of existing facilities and pursuing strategic capacity enhancements Ensure effective freight and passenger rail usage of shared rail infrastructure and operations Provide infrastructure improvements to maintain and expand competitive freight flows to and from the Commonwealth Reduce the number of freight related accidents in the Commonwealth Provide redundancy and flexibility within the system to meet unanticipated events and aid emergency response Economic Development – Support development and a healthy economy through informed investment in the freight and passenger rail system. Objectives Provide an efficient, competitive, and low cost shipping network for Massachusetts which will benefit businesses across all key industries, as well as consumers Enhance the integration of land use, economic development, and freight transportation, including maintaining and preserving strategic sites and areas within the Commonwealth for freight-related activities Encourage freight transportation investments with positive economic benefits to the Massachusetts economy Mitigate and minimize land use conflicts with freight transportation, and encourage freight- and rail-oriented development opportunities Preserve and enhance freight-related economic activity (jobs, wages) in strategic locations throughout Massachusetts 1-7 September 2010 Massachusetts Department of Transportation Freight Plan Environment and Quality of Life – Ensure that improvements to the freight system do not negatively impact the environment and help improve the quality of life for Massachusetts residents. Objectives Enhance and promote the linkage between an efficient freight system and sustainable development in the Commonwealth Enhance and promote the linkage between an efficient passenger rail system and sustainable development in the Commonwealth Encourage freight modes, strategies, and investments that promote environmental benefits and minimize negative effects Identify and implement freight-related technologies and policies that improve or protect the natural environment These objectives are reflected in the development of investment scenarios, the quantitative evaluation of scenarios, and the Freight Plan findings and recommendations for both infrastructure and policy. 1-8 September 2010