indiana logistics summit infrastructure needs and opportunities september 26 2007
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Indiana Logistics Summit Infrastructure Needs and Opportunities September 26, 2007. TRANSPORTATION INFRASTRUCTURE. Trucking’s Progress Since 1985. ATA’s Monthly Truck Tonnage Index (1993 = 100). 6% Average Annual Growth Rate. Trend Line. Source: American Trucking Associations.

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indiana logistics summit infrastructure needs and opportunities september 26 2007

Indiana Logistics SummitInfrastructure Needs and OpportunitiesSeptember 26, 2007

trucking s progress since 1985
Trucking’s Progress Since 1985

ATA’s Monthly Truck Tonnage Index

(1993 = 100)

6% Average Annual Growth Rate

Trend Line

Source: American Trucking Associations

land capacity congestion
Land Capacity: Congestion

2020 Estimated Peak Period Capacity

Sources: US Department of Transportation, Federal Highway Administration

only 4 of the market has more than 20 trucks but we believe that 4 controls 70 of the capacity
Only 4% of the Market Has More Than 20 Trucks, but We Believe That 4% Controls ≈70% of the Capacity

Represents 613,242 fleets, including owner-operators with operating authority. Sources: Motor Carrier Annual Report, TT Press and American Trucking Trends 2005 by ATA.

slide6

Demographics Remain Unfavorable for Significant Driver Additions

Source: U.S. Census Bureau

ugly demographics will persist past 2010
Ugly Demographics Will Persist Past 2010
  • Males, ages 20-44: 52.3 mil. in 2000; 52.7 mil. in 2010; 0.1% CAGR
  • Females, ages 20-44: 51.8 mil. in 2000; 51.7 mil. in 2010
  • At 3% GDP growth, driver availability would be 34% worse by 2010
  • Males, ages 20-34: 0.4% CAGR, going from 29.9 mil. in 2000 to an estimated 31.1 mil. by 2010--the “only hope”--demographic is still growing at less than half the rate of GDP growth
  • Average age of a Teamster driver is 57 years--Yikes!
  • 209,000 of 1.3 million long-haul drivers retiring in next 8 years
congestion issues are increasing
Congestion issues are increasing

Source: J.B. Hunt Transport, Inc.’s over-the-road shipments during October of each year

hos when do drivers drive
HOS - When do drivers drive?
  • Drivers drive during the normal work day hours
    • By 5:00 pm, 90% of a driving hours are expired

90% of the daily driving capacity is consumed by 17:00 each day

policy ideas to improve highway congestion
Policy Ideas to Improve Highway Congestion
  • Day of Week
  • Time of Day
  • Lane Restriction
  • By Vehicle Type
  • Increase Weight Limits
  • Increase Trailer Lengths
  • Expand Highways
change the weight laws
Change the Weight Laws
  • 80,000 lbs. gross to 96,000 lbs. gross
  • Gain +20%
  • Safety Issues – Stopping distance
  • 79% of our JBHT freight would not apply
  • Increased road maintenance
  • Capital investment by the trucking industry?
change length laws
Change Length Laws
  • 53’ – 57’ Trailers +7.5% cubic
  • Double Trailers “Twins”
  • Safety: Training of Drivers, Turning, Lane Changes, Backing
  • Road Infrastructure
    • Urban Areas – Docking problems
  • What roads would allow them?
  • Capital Investment by trucking industry
increase highway infrastructure
Increase Highway Infrastructure
  • 2 Lanes 4 Lanes
  • 4 Lanes 6 Lanes (Most interstate highways)
  • 6 Lanes 8 Lanes
  • 8 Lanes 10 Lanes

Cost: $ $ $ Billions

Time to Rebuild

Setting Priorities

re engineer of u s shippers supply chains
Re-Engineer Of U.S. Shippers Supply Chains
  • Mode conversion:
    • Truck → Intermodal
    • Truck → Dedicated
  • Less plant transfers – more customer direct shipping
  • Improved packaging
  • Better cube fill in trailer
  • All water shipping to east coast ports
  • Increase use of ocean containers staying intact
  • Shippers are manufacturing products closer to their customers
  • Customers are taking miles/loads out of the supply chain
freight mix
Freight Mix?

What will the freight mix look like in 5, 10, 15 years?

elements of rail capacity
Elements of Rail Capacity
  • Vehicles (locomotives and cars)
  • Line-of-road (alignment, signal systems, number of tracks)
  • Terminals (location and capacity)
  • Operating Plan
  • People
  • Execution
possible solution
Possible Solution
  • Have 5-15 year plan on building 15-20 new Intermodal terminals
  • Have Government Assistance
    • Site location
    • Environmental issues
    • Financial - Industrial bonds, tax incentives, etc.)
  • Benefits
    • Highway congestion – reduces pressure on highway expansion
    • Economical – Best return on a dollar spent
    • Helps Greenhouse issues
    • Saves Fuel 3:1
    • Help the trucking industry recruit drivers – more local jobs
summary what s the best solution
Summary: What’s the Best Solution?
  • Combination of Rail and Highway

Rail InfrastructureHighway Infrastructure

Terminal ExpansionEspecially Urban Areas

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