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Planning for Urban Freight Movement. Talking Freight Series Susie Lahsene Port of Portland. Trends Affecting Urban Freight. Globalization Transportation deregulation Business Practices Logistics/Supply chain mgmt Warehouse/distribution development Industry/carrier mergers

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Planning for urban freight movement

Planning for Urban Freight Movement

Talking Freight Series

Susie Lahsene

Port of Portland

Trends affecting urban freight
Trends Affecting Urban Freight

  • Globalization

  • Transportation deregulation

  • Business Practices

    • Logistics/Supply chain mgmt

    • Warehouse/distribution development

    • Industry/carrier mergers

  • Urban development

    • Markets

    • Economic base

    • Urban land use

    • Transport planning/investment


  • Markets around the globe-products moving longer distances with more frequency

  • Freight mobility pressure added to urban environment- the site of ports and transport connections to reach other markets

Federal transportation deregulation
Federal Transportation Deregulation

  • Aviation Deregulation of 1978

  • Motor Carrier Act of 1980

  • Staggers Rail Act of 1980

  • Ocean Shipping Act of 1984

  • Ocean Shipping Reform Act of 1998

U.S. Trade Increasing

Source: U.S. Department of Commerce and U.S. Bureau of Economic Analysis, 2003

Freight tonnage increases by 2020
Freight Tonnage Increases by 2020

Central Region89%

Northeast Region79%

West Region100%

South Region89%

Source: FHWA Freight Analysis Framework Project Reebie Associates 1998 data (1st Approximation)WEFA economic data and forecasts

Business practices history of industrial competitiveness

Emphasis on


Emphasis on


Emphasis on


Business PracticesHistory of Industrial Competitiveness


Firms stressed ability to decrease cost of production of each unit

Early 1900s

As production started to catch up with demand, businesses recognized the importance of sales

Late 1900s & 2000

Sophistication of product offerings, globalization and increased customer expectations make logistics key to companies’, regions’ competitiveness

Distribution logistics the new business model
Distribution & Logistics: The New Business Model

The use of the transportation system, information technology, and distribution facilities to assemble and move raw materials and products to regional, national and international markets

  • Why ?

    • Increased competition for global markets

    • Increasing offshore production and movement of parts and goods

    • Business cost savings already realized through production efficiency

    • Supply chain management offers opportunity for additional cost savings

Columbia sportswear
Columbia Sportswear

1. Inbound Movement

  • Apparel, footwear, and accessories arrive via ship from Asia at T-6, transported by truck to the Rivergate DC; some move through Seattle and Tacoma.

  • Air shipments arrive both at PDX and Sea-Tac.

  • Ocean/air shipments arriving in Puget Sound transported by truck to Rivergate.


2. Value Added Services

  • Ocean containers unstuffed; airfreight unpacked. Products sorted/stored by SKU.

  • Once all SKUs for a customer's order arrive, shipment packed for delivery.

  • Customers provide routing instructions; shipments prepared for truck or air shipment accordingly.

  • The Rivergate DC also handles returns.


3. Reload Facility

  • Freight forwarders transport shipments by truck to reload facility for air shipment.

  • LTL carriers take shipments by truck from DC to the LTL’s local hubs in Portland for consolidation with other loads to same cities.


4. Outbound Movement

  • All three product lines (apparel, footwear, and accessories) shipped out by air or truck.

    • Air cargo shipped out of PDX primarily using integrated carriers (such as FedEx, UPS, Emery, etc.) for domestic delivery.

    • Once consolidated, LTL shipments move through carrier’s hub and spoke network throughout North America.

    • Full truckload shipments move directly from DC to customers’ warehouses or stores.



1. Inbound Movement

  • Subassemblies (axles and engines) arrive by ship from Germany and Finland primarily through T-6.

  • Other parts and subassemblies arrive by truck from Mexico and Canada, and by truck/rail intermodal from domestic suppliers.


2. Manufacturing

  • Steel and aluminum sourced locally.

  • Medium and heavy-duty trucks produced at Swan Island production facility for global distribution.


3. Distribution

  • Finished trucks are distributed to dealers throughout the U.S.

  • Parts are shipped to regional warehouses.


4. Exports

  • Western Star brand trucks are shipped to Australia and New Zealand predominantly through T-6.


Fred meyer
Fred Meyer

1. Inbound Movement

  • Asian imports arrive predominantly through T-6 and are sent to Fred Meyer distribution centers in Chehalis, WA and Clackamas, OR.

  • Various grocery items and general merchandise arrive via truck and truck/rail intermodal from domestic suppliers.

  • Seasonal goods for Kroger Supermarkets arrives through T-6.


2. Reload Facility

  • Kroger seasonal items are trucked to north Portland transload facility.

  • Containers are unstuffed and consolidated into domestic containers before being trucked to intermodal facility.

  • Goods are shipped via rail to Kroger’s distribution center in Nashville, TN.


3. Warehousing/Distribution

  • All food and nonfood items from international and domestic suppliers are sent to Clackamas distribution center for distribution to stores throughout the west (except WA and AK stores)


4. Retail/Local Consumption

  • Fred Meyer Stores operates a large fleet of trucks and trailers for distribution of goods to its retail stores.


Manufacturing centers employment density by county
Manufacturing CentersEmployment Density by County

Wholesaling distribution centers employment density by county
Wholesaling/Distribution CentersEmployment Density by County

International freight gateways exports imports tons 1998



Source: FHWA Freight Analysis Framework Project Reebie Associates 1998 data (1st Approximation)WEFA economic data and forecasts

International Freight GatewaysExports & Imports (Tons), 1998



Source: FHWA Freight Analysis Framework Project Reebie Associates 1998 data (1st Approximation)WEFA economic data and forecasts

Metropolitan freight centers major population areas
Metropolitan Freight CentersMajor Population Areas

Freight transportation demand growing in most urban areas
Freight Transportation Demand Growing in Most Urban Areas

Portland origin/destination freight volume to double by 2030

Thousand Short Tons

Thousand Short Tons

Commodity Share of Portland/Vancouver Region Tonnage

(Percent Share of Total Tonnage in 1997)

Eight commodity categories comprise 74% of all tonnage shipped in the region on all modes.

Pass through tonnage doubles



Thousand Tons



Pass Through Tonnage Doubles

The Portland region handles increasing pass through traffic for elsewhere in the country.

Thousand Tons

Challenges meeting urban access needs for container growth
ChallengesMeeting Urban Access Needs for Container Growth

Challenges maintaining industrial land adjacent to freight corridors
ChallengesMaintaining Industrial Land Adjacent to Freight Corridors

Challenges maintaining good access to warehousing and distribution centers
ChallengesMaintaining Good Access to Warehousing and Distribution Centers

Challenges for most urban areas capacity increases represent a hurdle
ChallengesFor Most Urban Areas Capacity Increases Represent a Hurdle


Industry specialization and reliance on efficient transportation means industries may choose to relocate if transportation costs affect their ability to compete

Congestion has real costs and affects business productivity

  • Hard costs

    • Extra time for pick-up and delivery/reduced production time

    • Extra vehicles to meet “just-in-time” demands of customers and scheduling problems caused by longer delivery times

  • Soft costs

    • Business credibility

    • Expansion decisions

Urban freight planning tools
Urban Freight Planning Tools

  • Freight modeling

  • Regional/local transportation plans

  • Investment strategies

  • Economic Base analysis

  • Forecasting

  • Comprehensive plans

  • Land use location analysis

  • Land use and tax policy assessment

  • Design standards

  • Access management policies

Urban freight planning approach in portland
Urban Freight Planning Approach in Portland

  • Planning/Policy/Research

    • Reflect freight in region’s transportation and land use plan

      • Key Freight Corridors

      • Industrial lands and intermodal facilities

      • Other freight facilities

    • Local transportation plans reflects freight routes

    • Policy emphasis on maintaining access to intermodal facilities and industrial sanctuaries

    • Research on industry freight needs

      • Freight bottlenecks

      • Supply-chain geography

      • Economic relationship to freight investments

  • Freight Advisory committees

    • Regional, City and Statewide-linked by membership

Urban freight planning approach in portland1
Urban Freight Planning Approach in Portland

  • Forecasting/Analysis

    • Commodity flow forecast for six county region

      • 41 Industrial sectors- tonnage, mode and growth

    • Truck Model

    • Identification of freight bottlenecks

      • Port Transportation Improvement plan (PTIP)

      • City Freight plan

      • Region priority freight needs

  • Investments

    • Oregon Transportation Investment Act-legislative program with freight emphasis

    • Region allocation for federal funds

    • Port request for demonstration projects