PublicPrivate Partnerships in Transportation Infrastructure

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North America Works Kansas City, MO - November
2009 Greening Trade Corridors Juan Carlos
Villa Annie Protopapas Texas Transportation
Institute
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Agenda

• Freight Transportation
• North American Freight Transportation System
• Greenhouse Gases from Freight Transportation
• Discussion

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Freight Transportation
Background

• Freight transportation represents the
  populations need or desire for particular goods
  or products
• Derived Demand specific demand for a certain
  product or commodity in a particular location.
  Influenced directly by consumption and production
  of goods
• Measured in
• Tons of freight
• Ton-miles (ton-kilometers)
• Vehicle-miles traveled, vmt (Vehicle-kilometers)

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Freight Transportation
Supply and Demand

• Supply
• Highway system and vehicles (trucks)
• Rail lines, railcars, locomotives, terminals
• Maritime ports, port terminals, vessels
• Inland ports and ports of entry
• Demand
• Production centers
• Consumption centers
• Domestic and international trade

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NA Freight Transportation System
Supply Highway
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NA Freight Transportation System
Supply - Rail
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NA Freight Transportation System
Supply - Ports
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NA Freight Transportation System
Supply Ports of Entry
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NA Freight Transportation System
Demand
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NA Freight Transportation System

• Close relationship between trade and freight
  transportation
• World trade grew more than 50 times since 1950
• The proportion of manufactured goods changed from
  40 to 70
• World trade has grown faster than GDP

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NA Freight Transportation System

• Trade between the three NAFTA countries tripled
  since NAFTAs implementation

U.S. Land trade with Mexico and Canada (US
Billion)
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NA Freight Transportation System

• Land trade represents 80 of NAFTA trade
• Truck is dominant mode (64)
• U.S. Mexico rail trade grew at 10.7 average
  annual rate

U.S. Land Trade with Canada and Mexico (US
Billion)
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NA Freight Transportation System
Stakeholders

• Private sector Shippers, carriers, 3PLs,
  customs brokers
• Mode
• Route
• Ports and ports of entry
• Public Sector Policy and regulation on
  operations and provision of infrastructure
• Truck size and weight
• Hours of operation
• Toll roads
• Emissions
• Safety

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Greenhouse Gases (GHGs)

• Gases that trap heat in the atmosphere
• Carbon Dioxide (CO2 )
• Combustion of fossil fuels, solid waste, wood
• 95 of transportation GHGs by tonnage
• Methane (CH4)
• Production transport of fossil fuels
  livestock landfills
• Nitrous Oxide (N2O)
• Agriculture industry fossil fuel combustion
• Fluorinated Gases (HFCs)
• Industry refrigeration high global warning
  potential (GWP)

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World CO2 Emissions by Region/Country 2006 2030
Source U.S. Energy Information Agency
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U.S. CO2 Emissions by sector fuel2007 2030
Source U.S. Energy Information Agency
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U.S. Transportation GHG Emissions by Mode, 2006
Source U.S. Environmental Protection Agency
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Canada Transportation GHG Emissions 2006
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Canada Transportation GHG Emissions by Mode, 2006
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Mexico

• Data more elusive for Mexico
• Transportation thought to account for 18 of the
  total national GHG emissions
• Transportation GHGs increased by 27 between
  1990-2005
• Mexicos transportation GHGs account for 2 of
  global transportation GHGs

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Global Approaches to Solutions

• Low carbon fuels
• LPG, ethanol, methanol, CNG, hydrogen,
  electricity
• Improved vehicle technologies
• Anti-idling (aux power units, truck stop
  electrification), A/C, aerodynamic drag, tire
  resistance, weight, engine, transmission
• System efficiency
• Route optimization, ITS, empty miles reduction,
  delay reduction, intermodalism, modal diversion
• Activity reduction (vehicle miles traveled, vmt)
• Freight planning, smart/sustainable growth

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Future Approaches to Solutions

• Account for externalities in freight projects
  e.g. GHG emissions
• Cap and trade for freight modes or facilities
• Carbon Pricing for freight modes or facilities
• Issues
• Invariably, complexities are associated with each
  present and future approach
• Bottom line is almost always COST

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NAFTA Air Quality Cooperation

• U.S. Canada
• Air Quality Agreement 1991
• Joint border AQ projects/studies
• Tech Transfer Exchange
• U.S. Mexico
• National Emissions Inventory 1999 2005 underway
• Tech Transfer Exchange

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Future Opportunities

• Focus efforts on GHGs from freight transportation
• Promote data development to support
  evidence-driven decision-making policies
• Promote tech transfer to equalize technical
  expertise throughout NAFTA
• Develop unified NAFTA strategy for abatement of
  GHGs from freight transportation

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Discussion

• Focusing on the existing freight transportation
  system in North America, and looking ahead to
  2030, what changes could occur that would affect
  the environmental sustainability of the system?
• What actors or forces could drive changes in the
  system?
• What are the opportunities for change?
• What are the barriers to change?