The Trade Corridor Bulletin

Volume 18 – No. 5 | June 2024

CAGTC Annual Meeting Promotes Freight Investment as a Safe Bet

By: CAGTC Staff

On May 15, freight and supply chain industry leaders from across the country convened for the Coalition for America’s Gateways and Trade Corridors (CAGTC) annual meeting in Washington, D.C. In recent years, unexpected supply chain disruptions have underscored the need to address vulnerabilities and prepare for future demands on the system. Through a series of dynamic discussions, CAGTC’s meeting highlighted the need for sustained levels of federal investment far beyond expiration of the Bipartisan Infrastructure Law (BIL) in order to support a resilient supply chain.

In conjunction with the annual meeting, CAGTC released the sixteenth iteration of its “Follow That Freight” series, “Follow That…Card Deck.” Designed to increase recognition of the many modes and nodes required to move an ordinary consumer object from raw material to finished product, the brochure begins with raw materials in the U.S. Pacific Northwest and ends at a card table in the United Kingdom. Follow That...Card Deck can be viewed here.

To kick off the meeting, staff from the relevant Congressional authorizing committees joined CAGTC for an off-the-record conversation moderated by Dr. Noel Hacegaba, Chief Operating Officer for the Port of Long Beach. Brett Jortland, Senior Counsel on the Senate Committee on Environment and Public Works; Jackie Schmitz, Staff Director of the House Committee on Transportation and Infrastructure Subcommittee on Highways and Transit; and Paul Wasik, Deputy Policy Director of the Senate Committee on Commerce, Science, and Transportation Subcommittee on Surface Transportation, Maritime, Freight, and Ports participated on the panel. The panelists shared insights into what each authorizing committee is planning for the next iteration of the BIL.

Threats on the Horizon: How Can We Prepare for Tomorrow’s Supply Chain Crisis

Moderated by Rob Cannizzaro, Chief Operating Officer for the Intermodal Association of North America, this panel examined the various threats facing the supply chain industry and how these challenges underscore the need for federal funding.

The panelists began by exploring how the global supply chain landscape has evolved over the past decade and identifying primary vulnerabilities. The Honorable Chris Carney, Senior Policy Advisor for Nossaman LLP, stated that since there are more trucks, trains, planes, and ships moving goods than ever before, there is a significantly higher probability for incidents to occur. He specifically pointed to the dangers of cyber-attacks, which would have damaging ripple effects across the supply chain. Tom Saunders, Head of Government Affairs for Ports America, discussed the need for marine terminals to balance investments in capacity-building projects and the safety of workers in order to accommodate increased cargo volumes. Erin Aleman, Executive Director for the Chicago Metropolitan Agency for Planning, explained that there has been a boom of warehousing and industrial space closer to major cities as consumers expect their goods to be delivered at unprecedented speeds, ultimately contributing to growing calls for the industry to implement decarbonization initiatives.

To meet growing consumer demands and address supply chain vulnerabilities, panelists stressed the need for federal investment in major, complex projects that support resilient supply chains. Panelists mentioned investing in projects that separate freight and passenger rail, projects with multimodal connections, projects that plan for severe weather events, and projects that reduce carbon footprints.

Caution Ahead: Impacts of “Boom and Bust” Funding Cycles

Andrew Neely, Senior Vice President of Federal Government Affairs for WSP USA, led a conversation examining how the supply chain industry is impacted when public agencies and private businesses shift their decision making to maximize BIL funding and the dangers of an unstable funding future.

During the panel, industry leaders discussed the significant benefits of reliable, long-term federal funding. Bill Hanon, Senior Vice President of Market Development for Great Lakes Dredge and Dock Company, recognized the benefits of advanced appropriations, which allow project sponsors to develop better projects and set more accurate project schedules. Freddie Fuller, Vice President & Executive Director of Sales for Jacobs, added that project sponsors can explore more creative financing options for major projects when the industry can count on sustained funding. Preston Elliott, Deputy Commissioner of the Tennessee Department of Transportation, spoke about the specific benefits of long-term funding for rural projects. With reliable funding, project sponsors have additional planning time to align rural freight projects with the goals of a grant program.

In closing, Michael Cano, Executive Officer of Countywide Planning & Development for LA Metro, stated that the boom-and-bust cycle of funding limits agencies and businesses from reaching their full potential. However, with more reliable funding sources and programs, the industry can deliver projects that clearly align with the administration’s goals at the local level.

Elaine Nessle, CAGTC Executive Director; USDOT Deputy Assistant Secretary for Multimodal Freight Infrastructure and Policy Allison Dane Camden; and Paul Anderson, President & CEO of Port Tampa Bay and CAGTC Chairman

Keynote Speaker: All About the New USDOT Freight Office

USDOT Deputy Assistant Secretary for Multimodal Freight Infrastructure and Policy Allison Dane Camden joined CAGTC to highlight the efforts of the Office of Multimodal Freight Infrastructure and Policy (Freight Office), such as overseeing state freight plans and developing the National Multimodal Freight Network. The map, which will be developed by the end of 2024, will be utilized to direct resources toward improving freight system performance and inform freight transportation planning, among other uses. Additionally, the Freight Office is leading a data exchange project between the public and private sector through the Freight Logistics Optimization Works (FLOW) initiative. The Freight Office has been able to rely on FLOW data to guide its response and understand how the industry is responding to various disruptions, such as the Red Sea conflict and the Francis Scott Key Bridge collapse in Baltimore.

Connecting the Dots: Digital Infrastructure

Moderated by Craig Toth, Program Consultant and Vice President for HNTB, this panel examined how system planners and owners are incorporating digital infrastructure to maximize the utilization of supply chain assets.

David Libatique, Deputy Executive Director of Stakeholder Engagement for the Port of Los Angeles, discussed the Port Optimizer – a cloud-based solution that enables ports and supply chain stakeholders to operate more efficiently and help cargo owners bring their goods to market in a more predictable and timely manner. Dr. Andrea Hoff, Senior Project Manager for the San Diego Association of Governments, highlighted the Otay Mesa East Port of Entry Project, which will use technologies to improve mobility, reduce border crossing wait times, improve air quality, and support binational trade. Kim Holland, Assistant Secretary of Strategic Development for the Florida Department of Transportation, discussed how FDOT leveraged various state and federal funding programs to increase truck parking availability and prepare for future demands.

Deputy Assistant to the President for Infrastructure Implementation for the White House Samantha Silverberg

Keynote Address: White House Perspectives on BIL Implementation

Deputy Assistant to the President for Infrastructure Implementation for the White House Samantha Silverberg provided keynote remarks related to the administration’s implementation of the BIL. Two and a half years into implementation of the BIL, the administration has delivered over $450 billion to over 56,000 projects. She emphasized the importance of investing in freight infrastructure through programs like the Port Infrastructure Development Program, the Nationally Significant Multimodal Freight and Highway Projects program (INFRA), and the National Infrastructure Project Assistance program (Mega) to support supply chain resiliency and workforce development. She encouraged the audience to visit invest.gov to understand how BIL dollars are being used across the country.

 

Industry News

Biden-Harris Administration Announces Nearly $150 Million in Grants to Help Reduce Truck Air Pollution Near America’s Ports

The U.S. Department of Transportation’s Federal Highway Administration announced $148 million in grants to 11 states and Puerto Rico under the first round of a new $400 million program to improve air quality and reduce pollution for truck drivers, port workers and families that live in communities surrounding ports. The Reduction of Truck Emissions at Port Facilities Grant Program, which was created by the President’s Bipartisan Infrastructure Law (BIL), invests in port electrification and efficiency improvements. This program aims to reduce pollution from idling trucks at our nation’s ports while modernizing infrastructure and strengthening supply chains.

“When truckers spend hours idling at ports, it’s bad for drivers, bad for supply chains, and bad for nearby communities that feel the brunt of more polluted air,” said U.S. Transportation Secretary Pete Buttigieg. “The investments we are announcing today will save truck drivers time and money and help ports reduce congestion and emissions, while making the air more breathable for workers and communities.”

In this first round of grant awards, FHWA funded 16 projects that reduce pollution in communities adjacent to ports, which disproportionately bear the negative environmental impacts of idling trucks. Specific truck emissions reductions implemented include replacing diesel-powered trucks serving ports with zero or low emissions electric or alternative fuel-powered trucks, constructing electric vehicle charging infrastructure, employing port roadway access improvements, and studying technology enhancements to reduce truck emissions. For example:

  • California is receiving $49.7 million for port improvements. The Ports of Long Beach, Oakland and Los Angeles will receive funding to replace diesel- and gas-powered trucks and shuttle buses with zero-emission technologies, electric trucks and EV chargers.
  • Texas is receiving $26.9 million for improvements to the Port of Houston, including 30 new zero-emission, short-haul trucks and portable electric chargers for battery electric vehicle trucks to make zero-emission technology accessible and more affordable to owners and operators of small trucking fleets. It will also pay for the installation of new automated terminal operating systems to reduce truck idling times.
  • Georgia is receiving $15.3 million toward improvements at the Port of Savannah, including to build large-scale charging project near the port, replace diesel-powered trucks, and expand the use of low-emission and zero-emission equipment.
  • Florida is receiving $10 million for Talleyrand Marine Terminal in Jacksonville and the Port Everglades Terminal in Fort Lauderdale to replace diesel-powered trucks, while terminal improvements at the Seaboard Port of Miami will reduce truck idling time at the gates.
  • Louisiana is receiving $7.1 million to purchase 14 new all-electric heavy-duty terminal trucks and five light-duty pickup trucks to replace diesel vehicles currently in use. Funding also will be used to upgrade electrical infrastructure and evaluate new emissions-reducing equipment.
  • New Jersey is receiving $2.2 million to replace 20 diesel trucks with more efficient, environmentally friendly vehicles that run on clean, low-emitting propane fuel.

Read the full release here.

Member News

Roger Bohnert leaves USDOT to lead Surface Transportation Strategies at bespoke consultancy

Strong Port Strategies (SPS) announced that another distinguished veteran of the U.S. Department of Transportation has joined its ranks.

After serving over 20 years as a senior executive in the USDOT and 24 years in the U.S. Coast Guard, Roger Bohnert has become the firm's COO and President of Surface Transportation Strategies.

Roger Bohnert, COO and President, Surface Transportation Strategies, Strong Port Strategies

"Until today, we could claim that we were one the nation's leading maritime, aviation and intermodal transportation consultancies," says Lauren Brand, CEO of Strong Port Strategies. "Now, with Roger on our team, and his experience in highway projects, transit development, and passenger and freight rail, our services fully extend to surface transportation, from coast to coast."

After 45 years of federal service, beginning with active duty in the United States Coast Guard to retiring as Director, Office of Outreach and Project Development at the Build America Bureau, Roger brings a diverse background of transportation operations, business development, project finance, policy and delivery to Strong Port Strategies and their clients.

"During my time in Washington, I am very proud to have helped build and upgrade America's infrastructure," says Bohnert. "Working with States, municipalities and the private sector, we created a $42 billion pipeline of transportation projects and saw more than $29 billion in loans close since the Bureau's launch in 2016."

In addition to surface transportation, Roger has a great deal of experience in maritime administration, intermodal development and national security. Prior to his appointment to the Bureau, he led initiatives to develop and fund port modernization projects, oversaw development of the U.S. Marine Highway Program to expand coastal and inland water transport, and coordinated DOT's response to numerous hurricanes and national disasters.

"Few infrastructure goals can be achieved without addressing interdependent issues and systems, often involving several sectors and disciplines," says Bohnert. "At Strong Port Strategies, we believe this can be a powerful tool to deliver positive outcomes."

With a trillion-dollar backlog in vital transportation infrastructure maintenance and upgrade projects required across the country, according to the American Society of Civil Engineers, there is still much work to do.

Leveraging the knowledge of three of America's foremost experts in maritime, aviation, surface and intermodal transportation, Strong Port Strategies provides unparalleled technical expertise and strategic insight into transportation policies, programs, grants and funding opportunities.

Read the release here.

Member News

FHWA Administrator Bhatt Visits I-55 Bridge

On May 13,  FHWA Administrator Shailen Bhatt visited the I-55 Bridge in Memphis. TDOT currently has a pending Bridge Investment Program grant application along with the Arkansas Department of Transportation (ARDOT).

TDOT Commissioner Butch Eley and staff were pleased to host Administrator Bhatt and many other special guests for a lunch discussion and tour on site whereby Administrator Bhatt heard directly from the community why the I-55 Memphis-Arkansas Bridge needs to be replaced.

The proposed project, branded as the America's River Crossing on I-55 Over the Mississippi River Bridge Replacement, will replace the existing 75-year-old I-55 bridge and seismically retrofit it to improve safety and address route resiliency for the 64,000 vehicles carrying residents, workers and freight moving between Tennessee, Arkansas and Mississippi every day.

The group participating in the visit included Congressman Steve Cohen and staff, Tennessee state legislators, Memphis Mayor Paul Young, Shelby County Mayor Lee Harris, West Memphis Mayor Marco McClendon, members of the Greater Memphis Chamber, numerous other business leaders, and ARDOT Director Lori Tudor and staff.

View the proposed design here.

Research News

Hopkins Engineers Studying Ship Collision Risk for Major U.S. Bridges

Believing chances are high for ships to hit United States bridges, like the catastrophe in Baltimore, Johns Hopkins University engineers have begun what they consider to be an urgent assessment of the country’s bridges, particularly the larger ones near major ports of entry.

With a National Science Foundation Rapid Response Research grant and the help of an “army” of students, the team will attempt to modernize risk prediction models, as the nature of shipping, particularly the prominence of massive cargo vessels, has increased considerably in the decades since most of these bridges were built.

The team hypothesizes that the risk of the Key Bridge collapse was underestimated and that the probability of another catastrophic collision in the United States is likely “much higher” than current design standards presume.

The team will try to answer questions including:

  • What is the probability that a ship the size of the Dali would stray from its path and collide with the Key Bridge?
  • What are the chances for similar bridge collisions across the country?
  • Have we underestimated the probability of collision and ultimately the probability of failure of critical U.S. bridges?

Read the full release here.

Research News

Restructuring the Supply Base: Prioritizing a Resilient, yet Efficient Supply Chain

In May, Deloitte issued a report, titled "Restructuring the supply base: Prioritizing a resilient, yet efficient supply chain," examining how supply chain companies are balancing the need to prioritize performance and costs.

Read the full report here.