Greater Houston Freight Committee - H-GAC

8/29/2019 Greater Houston Freight Committee August 27, 2018 h-gac.com Serving Today Planning for Tomorrow Introduction/Welcome Established in 2016 by the Transportation Policy Council (TPC) as recommended in the 2013 Regional Goods Movement Plan as well as guidance from the FAST Act. Regularly engage and convene freight industry/goods movement partners in the region to understand how best to maintain an ongoing conversation. Involve private sector freight generators, shippers, and other logistics professionals. Meet periodically to share information, make recommendations to the TPC, and assist/direct H-GAC staff in freight planning tasks. h-gac.com Serving Today Planning for Tomorrow 1

8/29/2019 Committee Agenda Roundtable Houston Region Freight Rail Study North Houston Highway Improvement Project Development of Freight Movement Advisory Group Truck Parking Study TxDOT PEL Studies Updates IH-10: IH-69 to SH-99 (Phase 1 Complete) IH-45: BW 8 North to Loop 336 South (Phase 1 Complete) 36A EIS Update Southeast Harris County Mobility Study Others? IH-69: Spur 527 to BW 8 South (Phase 1 Complete) SH-225 (Procurement Phase) h-gac.com Serving Today Planning for Tomorrow Ports Area Mobility Study Update August 27, 2018 h-gac.com Serving Today Planning for Tomorrow 2

8/29/2019 Agenda Project Recap Objectives Activities Project Deliverable Status Commodity Flow & Supply Chain Analysis Potential Solutions Benefit Analysis Solution Considerations h-gac.com Serving Today Planning for Tomorrow Study Objectives Identify freight and goods supply chains that are dependent upon on the region’s port facilities Identify improvements to better facilitate port related freight mobility: h-gac.com Infrastructure and facilities Multimodal improvements Operational strategies Policy-level changes Serving Today Planning for Tomorrow 3

8/29/2019 Study Activities Port profiles (complete) Rail Assessment (complete) Barge/Intracoastal Waterways Assessment (complete) Data gathering and analysis h-gac.com Trade and cargo flow (complete) Truck counts (complete) Truck driver surveys (complete) ATRI Truck GPS (complete) Serving Today Planning for Tomorrow Study Activities Supply Chain Analysis (complete) Transearch Dataset Datamyne and Third-party Interviews Improvements Identification (complete) Travel Demand Modeling (on-going) Benefit-Cost Assessment (on-going) h-gac.com Serving Today Planning for Tomorrow 4

8/29/2019 Project Deliverables Final Report consisting of Technical Memorandums: Port Profiles Rail Barge/Intracoastal Waterways Highways (in progress) Supply Chain Commodity Flows Solutions and Strategies (in progress) h-gac.com Serving Today Planning for Tomorrow Commodity Flow Data sources o o o Texas DOT Transearch (2015) STB Public and Confidential Rail Waybill Samples (2016) Army Corps Waterborne Commerce of the US Coverage o o o Modal focus Separate analyses for trucking, rail, short sea/inland water Harris, Brazoria, Galveston Counties Documentation o h-gac.com Detailed Tech Memo Serving Today Planning for Tomorrow 5

8/29/2019 Commodity Flows - Trucks Trucks moved 385 million tons worth 368 billion dollars o o 86% of tons and 69% of value related to domestic trade 14% of tons and 31% of value were related to international trade Trucks moved inbound to, outbound from, and within the three Port counties o o o h-gac.com 40% of tons and 31% of value moved internally 36% of tons and 34% of value moved inbound 25% of tons and 35% of value moved outbound Serving Today Planning for Tomorrow Distribution of Port County Trucks 79% of tons moved Texas-to-Texas (40% within the Port counties, 39% traded with the rest of Texas) and 21% of tons were trade with other states For the 12.4% associated with export and import moves, 8.7% moved Texas-to-Texas and 3.7% were traded with other states h-gac.com Serving Today Planning for Tomorrow 6

8/29/2019 Truck O-D Patterns - Internal Remembering that 40% of truck tons move within the three Port counties: these moves are dominated by Harris County o o Harris accounts for 86% of the originated tons Harris accounts for 85% of the terminated tons Harris-to-Harris moves account for 31% (120M/385M) of all truck tons inbound to, outbound from, or within the three port counties h-gac.com Serving Today Planning for Tomorrow Truck O-D Patterns -Outbound Remembering that 25% of truck tons move outbound from the three counties: Harris originates 84% of tons (80M out of 95M) o 19 regions receive 54% of tons o Leading Texas destinations o Fort Bend, Jefferson, Montgomery, Dallas, Bexar, Tarrant, Matagorda, Travis Leading Non-Texas destinations o h-gac.com California, Louisiana, Oklahoma, Florida, Arkansas, Michigan, Wisconsin, Indiana, Ohio, Arizona, Illinois Serving Today Planning for Tomorrow 7

8/29/2019 Truck O-D Patterns - Inbound Remembering that 36% of truck tons move inbound to the three counties: o o Harris receives 88% of tons (120M out of 139M) 20 regions originate 77% of tons Leading Texas destinations o Jefferson, Bexar, Montgomery, Fort Bend, Comal, Dallas, Williamson, Colorado, Limestone, Nueces, Bell, Waller, Calhoun, Travis, Burnet Leading Non-Texas destinations o h-gac.com Louisiana, Illinois, Arkansas, Oklahoma, Missouri Serving Today Planning for Tomorrow Port-Related Trucking Between 43 million tons (Transearch) and 72 million tons (USDOT FAF) out of 385 million 43% of truck tons related to exports o o Harris terminates 78% of truck tons, Galveston 12%, Brazoria 10% Largest origin-destination pair is Harris County to Harris County 57% of truck tons related to imports o o Harris originates 90% of truck tons, Galveston 3% Brazoria 7% Largest origin-destination pair is Harris County to Harris County Exports are more local, imports more national; Harris is the leading originating and terminating point; Harris-to-Harris is the most critical O-D pair; remainder of Texas and adjoining states are significant but other states less so for trucks. h-gac.com Serving Today Planning for Tomorrow 8

8/29/2019 Rail Commodities for Port Counties Data Limitations Top 12 commodities account for 96% of carloads o o o o o o h-gac.com Chemicals 32%, mostly outbound Intermodal 26%, mostly inbound Minerals 8%, inbound Transportation equipment 8%, mostly inbound Petroleum products 7%, all directions Agriculture 6%, inbound Serving Today Planning for Tomorrow Origin States for Inbound Rail h-gac.com Serving Today Planning for Tomorrow 9

8/29/2019 Destination States for Outbound Rail h-gac.com Serving Today Planning for Tomorrow Marine Highways and Texas Ports h-gac.com Serving Today Planning for Tomorrow 10

8/29/2019 Marine Highways and the H-GAC Region h-gac.com Serving Today Planning for Tomorrow Supply Chain Analysis Differences from Commodity Flow Analysis o o Industry focused Perishable Foods; Other Foods and Beverages; Other Agricultural Products; Chemicals; Plastics in Primary Forms; Building Materials; Iron and Steel and Articles of Iron and Steel; Machinery; Motor Vehicles; Other Consumer Goods; key subgroups in each category Combines modal data with additional resources o o o o US Census Trade data and Commodity Flow Survey Datamyne import-export records (similar to PIERS) County Business Patterns zip code level employment Transearch and Freight Analysis Framework forecasts Validated with stakeholder interviews h-gac.com Serving Today Planning for Tomorrow 11

8/29/2019 Example – Grain Exports feed mills in southern China seeking cheaper substitutes for expensive domestically produced corn. h-gac.com Serving Today Planning for Tomorrow Example – Grain Exports Texas counties originating grain exports through Houston Texas counties originating grain exports through Galveston h-gac.com Serving Today Planning for Tomorrow 12

8/29/2019 Feedback from Industries Trucking Manpower and Congestion The lack of available truckers, limitations on driving hours (and related expenses for required equipment) were mentioned as constraints, although these issues were seen as affecting overall service but not directly controllable by ports. Similarly, growth in traffic both in the HGAC region and in more distant markets (e.g. Dallas), surges in freight traffic, and general congestion (e.g. between the Port of Houston and Baytown) were mentioned as potentially worsening the ability to move containers from the port to distribution centers with a need to improve/expand local roads. h-gac.com Serving Today Planning for Tomorrow Feedback from Industries Container Logistics The ability to manage container movements and availability were common themes. This included: The need to transload locally rather than use containers for distant delivery (stranding the container that must be returned). The difficulty in managing “street turns” to allow containers to be used more efficiently. The general point is that there is no “system” in place to make this work given the participants are all independent actors. The availability of extended gate times did not appear to be a general solution to truck delays due to variability due to seasonality, weather, freight timing uncertainties, etc. This could be a useful possibility if it could be responsive to short‐term conditions. h-gac.com Serving Today Planning for Tomorrow 13

8/29/2019 Proposed Improvements Identified range of solutions and strategies that support o o o o Infrastructure and facilities Multimodal improvements Operational strategies Policy-level changes Strategies/Solutions include o o o o Extended gate times at container terminals Terminal Gate Appointment System Inland Port Port centric warehousing etc. o o o o o h-gac.com Freight Shuttle Container on barge Virtual container yard I-69 bypass Independence Parkway Bridge Serving Today Planning for Tomorrow Solutions – Model based on Baytown Exports ‐ circa 158,000 FEU* Imports ‐ circa 80,000 FEU * ‐ based on plastic resin exports only h-gac.com Serving Today Planning for Tomorrow 14

8/29/2019 Virtual Container Yard (VCY)/Street turn Already occurring in Houston, but unknown level of activity. h-gac.com Serving Today Planning for Tomorrow VCY/Street turn Benefits Container Flow Scenario 1 (FEU Containers) Imports 71,516 Overall Saving of 1.9M truck miles per annum Exports Comments 90% of import containers street turned to an export container 104,167 Overall Saving of 1.9M Truck miles per annum Virtual Container Yard Benefits Analysis Results (Millions, 2017 Dollars) thru to 2040 h-gac.com Benefit Category Travel Time Savings Accident Cost Savings Emissions Cost Savings Total Undiscounted Benefits 34.3 10.1 5.5 49.8 Serving Today Planning for Tomorrow 15

8/29/2019 VCY/Street turn Operating Strategies Appointing a Street Turn/Matchback coordinator for the region o o Funding to support a position – 12-18 months Hosted by an organization e.g. PoH, H-GAC, Texas Trucking Association Produce a Request for Expression of Interest (RFEI) for a system provider who supplies street turn solutions o o h-gac.com Administration of street turns is a barrier to increased adoption Matchback Systems incorporated into Port of LA Port Optimizer System Serving Today Planning for Tomorrow Freight Shuttle Type Concept Source: Freight Shuttle Systems h-gac.com Serving Today Planning for Tomorrow 16

8/29/2019 Freight Shuttle Type Concept System 1. Shuttle between port container terminal and transfer yard and then truck to final destination Two Scenarios 60% of import and 90% export containers 20% of import and 50% export containers h-gac.com Serving Today Planning for Tomorrow Freight Shuttle Type Concept System 2. Shuttle between container terminal and customer facilities Two Scenarios 100% of import and export containers 60% of import and export containers h-gac.com Serving Today Planning for Tomorrow 17