By: Stephen Fitzroy (presenting), Brian Alstadt, and Derek Cutler. Economic Development Research Group, Inc.

Transcription

1 By: Stephen Fitzroy (presenting), Brian Alstadt, and Derek Cutler Economic Development Research Group, Inc. 1

2 2 Refine methods used to estimate costs of congestion on commercial vehicles Account for differences in commodity mix at the corridor level Assess effectiveness of commodity composition and relative costs in identifying high-impact corridors

3 TTI Annual Urban Mobility Report identified commercial trucking costs by metro area TxDOT Identified 100 most congested corridors in the state Responsible for $2.9 billion in congestion costs (passenger and commercial vehicles combined) Can we differentiate costs by corridor to define how investments in congestion reduction could contribute to business cost reduction and greater competitiveness? 3

4 4 Truck Operating Cost Truck Time Cost Truck Reliability Cost Commodity Time Cost Commodity Reliability/Logistics Costs Capital Lock-up costs Perishability Just-in-time penalties

5 5 Tarrant County (1) Dallas County (2) Travis County (1) Bexar County (1) Harris County (3)

6 6 Corridor No. TTI Rank (2012) Road Name County Corridor Length (miles) Avg. Ann. Daily Traffic Total Annual Delay (hrs) TTI Annual Congestion Cost ($m) 1 1 IH 35W TARRANT ,516 2,155,991 $ IH 635 DALLAS ,548 5,169,892 $ IH 45 HARRIS ,495 5,489,764 $ IH 35 TRAVIS ,697 5,195,521 $ US 59 HARRIS ,627 1,796,657 $ IH 35E DALLAS ,392 2,591,336 $ US 290 HARRIS ,865 3,710,114 $ IH 35 BEXAR ,210 1,058,262 $ 22.5

7 7

8 Trip Direction (for example, Northbound or Westbound) Trip Origin (by County within Texas or MSA outside Texas) Trip Destination (by County within Texas or MSA outside Texas) Truck Service Type (Truckload, LTL, or Private) Truck Body Type (Dry Van, Refrigerated, Auto Carrier, Flatbed, etc.) 4-digit STCC Commodity Code Value Volume Number of trucks 8

9 9 Corridor No. Annual Trucks Annual Tons (mil.) Annual Value ($mil) Average Tons/ Truck Average $/Ton 1 2,342, $ 35, $ 1, ,770, $ 42, $ 1, ,248, $ 105, $ 1, ,945, $ 107, $ 2, ,330, $ 30, $ ,275, $ 56, $ 1, ,205, $ 24, $ 1, ,875, $ 195, $ 2,539

10 10 Corridor 8 Corridor 2 Corridor 3 Corridor 7 Total Value Total Value Total Value Total Value Rank Commodity (in $ millions) Commodity (in $ millions) Commodity (in $ millions) Commodity (in $ millions) Warehousing $ 13,305.1 Warehousing $ 1,883.8 Warehousing $ 19,544.8 Warehousing $ 4,582.5 /distribution /distribution /distribution /distribution Motor vehicle parts Inorganic chemicals Electrical Equipment $ 12,439.5 Liquefied gases $ 1,116.3 Drayage to/from ramps $ 3,238.8 Dairy products $ 1,070.7 Oil field equipment $ 3,081.7 Alcoholic $ 1,066.4 Misc. plastic Beverages products Motor Vehicles $ 2,977.3 Processed milk $ 1,001.9 Primary iron or Plastic Products Primary iron or steel Misc. Food Preparations Plastic/ Synthetic Mat l Misc. Combust Engines Liquefied gases Petroleum products steel $ 2,297.0 Grain $ Valve or pipe fittings $ 2,275.8 Misc. ag chemicals $ 1,900.8 Bread/Bakery Products $ 1,880.4 Deciduous fruits $ 1,861.8 Processed poultry/eggs $ 1,757.2 Petroleum products $ Organic Chemicals $ Oil refining products $ Misc. inorganic chemicals $ Misc. metal work $ 6,113.6 Electronic products $ 4,516.5 Refining products $ 2,300.5 Organic chemicals $ 2,196.8 Misc. plastic products $ 1,949.2 Liquefied gases $ 1,821.8 Misc. plastic products $ 1,784.7 Electronic Components $ 1,746.6 Primary iron or steel $ 1,674.2 Misc. metal work $ Liquefied Gases $ 1,622.4 Bread and bakery $ 1,359.5 Live Poultry $ Misc. plastic products $ 1,468.5 Valves, pipes and fittings $ 3,136.7 $ $ $ $ $ $ $ $ $ $ 244.3

11 Fuel Consumption Due To Congestion Function of congested speed (quadratic) Fuel Costs Number of trucks Length of Segment 11

12 12 Corridor No. Annual Truck Trips (in millions) Avg. Congested Congested MPG Speed (MPH) Add l Gal./ Truck Trip Total Add l Gallons Add l Vehicle Operating Costs (in millions) $ $ $ ,436.1 $ $ $ $ $1.02

13 Truck Time Costs Driver time congested time (delay), driver wages, vehicle occupancy Commodity Time Costs Opportunity cost of commodities Opportunity cost of capital (10%) Value of shipment Congestion time Computed on an hourly basis by STCC 13

14 14 Corridor No. Annual Truck Trips Delay-Hrs per Truck Average Tons/Truck Average $/Ton Truck Time Cost (in millions) Commodity Time Cost 1 2,342, $1,190 $2.34 $25, ,770, $1,556 $3.06 $53, ,248, $1,493 $7.65 $112, ,945, $2,061 $8.47 $168, ,330, $995 $1.70 $16, ,275, $1,446 $2.81 $35, ,205, $1,668 $1.71 $25, ,875, $2,539 $2.48 $72,239

15 15 Buffer Time Index: Relationship between worst travel time and average travel time Reliability Costs Vary by Commodity/Industry Corridor Profiles indicate how these profiles vary Congestion Effects Measured By: Truck Reliability Costs Commodity Reliability/Logistics Costs Capital Lock-Up Costs Perishability Costs Supply Chain JIT Costs

16 16 Measure the value of improving predictability and reducing buffer-time Trips (in 000's) th Percentile Standard Deviation Minutes

17 Buffer Time Index % 20% 40% 60% 80% 100% Fraction of Travel Subject to Congestion

18 Truck Reliability Costs f (Buffer Time, Truck Volume, Occupancy, Driver Costs) Commodity Reliability Costs Capital Lock-Up Costs: f (Buffer Hours, Commodity Value, Capital Costs) Perishability Costs: f (Buffer Hours, Commodity Value, Perishability Factors) Supply Chain Costs: f (Buffer Hours, Commodity Value, JIT Factors) 18

19 19 Capital Lock-Up Costs: Costs per vehicle hour - Estimated based on value of shipment f (CCCC oo CCCCCCC) Perishability Factor: Commodity Specific Estimated by vehicle type and commodity f(perishability Costs: $ per $ Buffer Hour, PPPPPPPPPPPPP FFFFFF: 0 TTTTT TTTT, CCCCCCCCC 1) Supply Chain/JIT Factors: Commodity Specific Estimated by Shipment mode and Commodity f(buffer Costs: $ per $ Buffer Hour, JJJ FFFFFF: 0 PPPPPPPPPP oo tttt LLL, AAA 1)

20 20 Corridor No. Congestion Buffer-Hours per Year Truck Reliability Cost (in $ millions) Commodity Logistics Cost (in $ millions) Commodity Logistics Cost per Buffer-Hr 1 82,894 $ 2.10 $ 0.93 $ ,834 $ 4.23 $ 2.06 $ ,290 $ 6.73 $ 4.33 $ ,421 $ 7.67 $ 5.75 $ ,333 $ 1.43 $ 0.59 $ ,950 $ 2.98 $ 1.43 $ ,861 $ 1.44 $ 1.05 $ ,689 $ 0.97 $ 0.95 $ 8.77

21 21 Truck Truck Truck Commodity Total Cost per Corridor Operating Time Commodity Reliability Logistics Corridor Truck- No. Cost Cost Time Cost Cost Cost Costs Mile (in (in millions) (in (in millions) (in millions) (in millions) ($/mi) millions) millions) 1 $ 1.63 $ 2.34 $ 0.03 $ 2.10 $ 0.93 $ 7.03 $ $ 1.75 $ 3.06 $ 0.05 $ 4.23 $ 2.06 $ $ $ 3.98 $ 7.65 $ 0.11 $ 6.73 $ 4.33 $ $ $ 5.74 $ 8.47 $ 0.17 $ 7.67 $ 5.75 $ $ $ 1.10 $ 1.70 $ 0.02 $ 1.43 $ 0.59 $ 4.84 $ $ 1.65 $ 2.81 $ 0.04 $ 2.98 $ 1.43 $ 8.90 $ $ 0.77 $ 1.71 $ 0.03 $ 1.44 $ 1.05 $ 4.99 $ $ 1.02 $ 2.48 $ 0.07 $ 0.97 $ 0.95 $ 5.49 $ 0.237

22 22 Vehicle Commodity- Vehicle Commodity Corridor TTI Direct TTI Direct Direct Based Total Direct -Based No. Costs Costs Costs Costs Costs Total Costs (in millions) (per Truck) (in millions) (in millions) (per Truck) (Per Truck) 1 $1.96 $3.97 $7.03 $0.84 $1.69 $ $2.56 $4.81 $11.16 $1.44 $2.72 $ $6.38 $11.63 $22.81 $1.21 $2.22 $ $4.94 $14.21 $27.80 $1.25 $3.60 $ $0.35 $2.80 $4.84 $0.15 $1.20 $ $0.90 $4.46 $8.90 $0.27 $1.36 $ $1.43 $2.48 $4.99 $1.19 $2.06 $ $2.07 $3.50 $9.01 $0.42 $0.72 $1.85

23 23 $30.0 Congestion Costs (in millions) $25.0 $20.0 $15.0 $10.0 $5.0 TTI Direct Costs Vehicle Direct Costs Commodity-Based Total Costs $

24 24 TTI Methodology ($mil.) Commodity-Based Methodology ($mil) Percent of Congestion Costs Attributable to Turck Congestion Corridor No. Auto Truck Total Auto Truck Total TTI Methodology Estimated Congestion Costs TTI Truck Congestion Costs (2013) 1 $43.8 $2.0 $45.8 $43.8 $7.0 $ % 13.83% 20.51% 2 $107.2 $2.6 $109.7 $107.2 $11.2 $ % 9.43% 20.51% 3 $110.1 $6.4 $ $110.1 $22.8 $ % 17.16% 20.71% 4 $105.3 $4.9 $ $105.3 $27.8 $ % 20.89% 19.38% 5 $37.8 $0.4 $ 38.1 $37.8 $4.8 $ % 11.36% 20.71% 6 $54.1 $0.9 $ 55.0 $54.1 $8.9 $ % 14.13% 20.51% 7 $77.3 $1.4 $ 78.7 $77.3 $5.0 $ % 6.07% 20.71% 8 $20.4 $2.1 $ 22.5 $20.4 $5.5 $ % 21.21% 16.85%

25 25 When properly measured, costs of congestion on freight corridors provides important cost differences by corridor Current vehicle operating and driver time costs do not recognize the importance of key trade and commodity corridors Aggregate metropolitan averages are not suitable or generalizable for corridor-specific evaluation Effects of delay, reliability and related measures (e.g., perishability, logistics and inventory costs) should be considered Current time-based guidance/valuation of commercial user costs may significantly understate congestion reduction impacts, especially for trade (interstate and international) corridors This has potentially serious implications for TIGER and other funding and prioritization decisions

26 26 Congestion in destination metro areas (e.g., congestion in Houston) can have impacts on costs for businesses located in major trading regions (e.g., Los Angeles, Miami) Effects of congestion on domestic through shipments may have no direct impact on local businesses, but may affect businesses costs in other regions High volume locally-shipped commodities (e.g., sand, gravel and bulk products) can significantly affect costs for high value traded commodities (e.g., electronics, drayage) on the same corridor

27 27 Contact: Stephen Fitzroy For a copy of this presentation and other EDR Group Presentations: To access the library of past EDR Group Papers, Projects and Presentations: