Rural Freight Transportation
Moves Local Economies

By Zanetta Doyle, Digest Editor

Safe and adequate transportation is needed to connect rural Americans to everyday necessities such as shopping, healthcare, jobs and other quality of life enhancements. Safe and sound transportation is essential for regional economic growth to connect businesses to customers and bring goods to market.

Today, 11.3 million Americans are employed in transportation occupations, according to Transportation: Invest in America, The Bottom Line, published by the American Association of State Highway and Transportation Officials (AASHTO). The country’s roads, railroads, airways, waterways and pipelines shipped 11 billion tons of freight valued at $7 trillion. The report predicts that freight will double in the next 20 years, straining US highways, ports and border gateways.

The US Department of Agriculture Economic Research Service (ERS) reported that the focus of transportation programs has shifted to adapting and updating existing structures instead of building new ones. Interstate highway systems that are critical in regions with expanding populations and growing industries are being expanded and modernized. The privately owned national railroad system has been streamlined as a result of deregulation over the past 20 years, and is restructuring to meet changing rail freight needs. The national waterway system is increasingly becoming the mode of transportation for agricultural producers, recreational and commercial users. (Source: Rural Transportation: Infrastructure, ERS Briefing Room)

Intermodal Traffic Increases

Intermodal freight traffic -- the movement of freight by the coordinated and sequential use of two or more modes of transportation -- has increased significantly, and is more prevalent in the growth of marine, rail, air and truck intermodal operations, according to the US Department of Transportation Federal Highway Administration (FHWA) report, Challenges and Opportunities for an ITS Intermodal Freight Program Final Report, published in 1999.

The report revealed that the number of intermodal containers moving through ports worldwide doubled over the last decade. Intermodal traffic on US railroads tripled over the last two decades. And in 1997, revenues from intermodal service accounted for about 18 percent of total railroad revenues.

The volume of intermodal airfreight also doubled over the last decade. All-cargo airline volume grew 10 percent annually between 1991 and 1996. The volume of intermodal airfreight is expected to double again in the next decade as more high-value commodities, including electrical equipment, food products and textiles travel by air. The volume of intermodal freight moved by truck has grown apace with the increase in marine, rail and air intermodal freight volumes, doubling over the last decade. While these statistics represent the impact of intermodal transportation nationwide, intermodal freight plays an even more crucial role in rural areas.

Delivering the Goods in Rural Communities

FHWA reports that rural highways, rails, air and water modes of transportation play major roles in freight shipment. The heaviest concentration of interstate or intrastate truck movement is along the interstate highway corridors in rural areas. Rural areas also depend on rail freight to transport heavy and bulky commodities such as lumber, wheat, coal and heavy equipment, because it is a less costly way to ship goods. Inland waterways are considered an inexpensive alternative for moving heavy bulk commodities such as grain and iron ore.

Despite advances in rural freight transportation, FHWA cites significant freight issues facing rural areas because of the growth in the amount of freight transported by the intermodal rural freight system:

Since rail industry restructuring, the abandonment of many lines has led to a decline in rail service to many rural areas.

Large-scale agriculture and increased trade resulting from the North America Free Trade Agreement (NAFTA) has increased truck traffic on many deficient rural roads.

Rural freight needs emerge very rapidly due to changes in the economy. It is often difficult to respond to associated infrastructure needs as quickly as needed.

These challenges reinforce the importance of transportation planning at the state and local level. “Involvement at the regional level is critical in rural transportation planning, specifically in the areas of workforce and business development,” said Jan Skouby, Administrator of Railroads and Waterways for the Missouri Department of Transportation. “We have found that regional development organizations in Missouri have a valuable perspective on the resources and markets that are readily available.”

In May 2003, the Bush administration released its six-year reauthorization proposal for federal highway and transit programs. The plan, known as the Safe, Accountable, Flexible and Efficient Transportation Equity Act of 2003 (SAFETEA), places a strong emphasis on improving safety, improving the movement of freight and streamlining the project delivery process. The bill would provide $247 billion over the next six years, including $201 billion for highways and nearly $46 billion for transit. Within the SAFETEA bill is the Freight Gateways Program, which has significantly elevated issues regarding freight within the Federal Highway Bill. Provisions include:

Improve freight transportation planning through requirements that states integrate freight into their project development processes and designate a freight transportation coordinator;

Provide for dedicated funding from apportioned Natioanl Highway Systems funds for intermodal freight connectors;

Lower the project cost threshold under the Transportation Infrastructure Finance and Innovations Act (TIFIA); and

Streamline environmental permitting for projects.

For more information visit:

The American Association of State Highway and Transportation Officials Web site at www.aashto.org;

The US Department of Agriculture Economic Research Service site at www.ers.usda.gov/briefing/transport

The US Department of Transportation Federal Highway Administration site at www.fhwa.dot.gov

For the latest information on regional transportation planning visit the NADO Regional Transportation Online Center at www.nado.org/rtoc

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