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| September 11, 2009
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SASHTO Participants Examine How to Better Move Goods |
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Two major players in the global supply chain voiced their growing concerns over the future of freight mobility at a panel held at the recent annual meeting of the Southeastern Association of State Highway and Transportation Officials in Biloxi, MS.
"We need a change of focus; global trade is at odds with public policy," said FedEx Freight President and CEO Doug Duncan. "The supply chain is what makes us more competitive. ... A lack of infrastructure and eroding infrastructure along with increased congestion are adding costs to the supply chain." Tracy Rosser, regional vice president of Wal-Mart Stores, concurred. If BNSF Railway could move its trains more efficiently, Wal-Mart could lower the price of coffee cups in its stores so ultimately consumers would have more money in their pocket, she said. The two speakers were joined by several key transportation officials at SASHTO's plenary session, "Freight Initiatives of the 21st Century," moderated by AASHTO President Allen Biehler, Pennsylvania transportation secretary, and Michael Meyer of the Georgia Institute of Technology. Other participants included Don Allee, executive director and CEO of the Mississippi State Port Authority; Tony Furst, director of freight management and operations for the Federal Highway Administration; Matt Rose, chairman, president, and CEO of BNSF Railway Co.; and Steve Williams, chairman and CEO of Maverick Transportation. Panelists discussed the need for a national freight vision as critical to the future economic health of the country given that the Gross Domestic Product is expected to double over the next 20 years. That has been forecast to happen with a concurrent increase in freight expected in the Gulf of Mexico region by 2020 due to the widening of the Panama Canal. Congestion is a growing concern because it drives up the cost of goods and has a direct effect on the consumer. "The freight mobility crisis is causing problems on the passenger side," Rose said, adding that technology changes will be key to handling the increase in freight and that he sees more containerization occurring. "Big customers are looking for the best value and the lowest price." New corridors will need to be developed as well as new ports added over the next 20 years, Rose said. The group generally agreed that without a national freight vision, the United States is going to face a mobility crisis, especially along certain corridors and within urban areas. Biehler said state DOTs need to expand the thought process of transportation to address these needs and see where freight is moving, and to be able to work among multiple jurisdictions to develop solutions. Reform of the transportation system was also on the mind of several panelists. Rose noted there currently are 108 federally funded surface transportation programs. America should be focusing on modal optimization and looking holistically at the movement of freight, he said. Duncan added because the nation is so far behind with infrastructure improvements, "the hurdle is absolutely huge. We must start to make strategic investments. If we don't it will be a catastrophe." Panelists also mentioned federal and state legislation relating to climate change, reduction of greenhouse gases, and energy consumption as important opportunities to help address freight movement. For the future, incorporating technology, packaging, and fleet modernization; off-peak capacity usage; and analyzing demographics of the supply chain to obtain efficiencies will all allow for more freight to be moved within the United States. Questions regarding this article may be directed to editor@aashtojournal.org. |