Toward a National Intermodal Transportation System - Final Report - NCIT



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                          TOWARD A NATIONAL

                             INTERMODAL

                        TRANSPORTATION SYSTEM



                            FINAL REPORT





                       NATIONAL COMMISSION ON

                      INTERMODAL TRANSPORTATION





                           SEPTEMBER 1994

                          WASHINGTON, D.C.











National Commission on Intermodal Transportation

301 North Fairfax Street

Alexandria, Virginia 22314





   The Honorable Albert Gore

   President

   United States Senate

   Washington, D.C.



   The Honorable Thomas S. Foley

   Speaker

   United States House of Representatives

   Washington, D.C.



   Dear Sirs:



   Historically, America's transportation system has been a key factor

   in our Nation's development and prosperity.  But, as Congress has

   recognized in forming the National Commission on Intermodal

   Transportation, this system must be improved to ensure it meets the

   changing needs of the Nation.



   Congress charged the Commission, in the Intermodal Surface

   Transportation Efficiency Act of 1991 (ISTEA), with investigating the

   intermodal transportation system in the United States.



   In this report, the Commission presents to the Congress, the

   President, and the American people recommendations to improve

   intermodal transportation.  This report will help Congress develop

   greater understanding of the benefits of intermodalism and assist

   Congress as it considers the reauthorization of ISTEA.  It will also

   be of value to the U.S. Department of Transportation as it develops

   the concept of a National Transportation System and provides

   leadership in developing national transportation policy.



   Therefore, I have the honor to transmit to Congress the final report

   of the National Commission on Intermodal Transportation, pursuant to

   the requirements of Section 5005 of Public Law 102-240.





   Respectfully,





   Robert D. Krebs

   Chairman



   September 29, 1994











                         NATIONAL COMMISSION ON

                        INTERMODAL TRANSPORTATION



Robert D. Krebs, Chairman

Chairman, President, and CEO, Santa Fe Pacific Corporation and The

Atchison, Topeka and Santa Fe Railway Company, Schaumburg, Illinois



Jacki Bacharach

President, Jacki Bacharach and Associates; Vice Chair, Commuter

Transportation Services, Los Angeles, California



Kenneth L. Bird

President, Illinois Rail, Woodridge, Illinois



Phillip D. Brady

Vice President and General Counsel, American Automobile Manufacturers

Association, Washington, D.C.



Anne P. Canby

Secretary of Transportation, State of Delaware, Dover, Delaware



Wayne E. Davis

Chairman, TrainRiders/Northeast, Portland, Maine



Thomas J. Donohue

President and CEO, American Trucking Associations, Alexandria, Virginia



Leon S. Eplan

Commissioner, Planning and Development, City of Atlanta, Atlanta,

Georgia



Jacqueline S. Gillan

Vice President, Advocates for Highway and Auto Safety, Washington, D.C.



Edward R. Hamberger

Managing Partner, Washington Office of Baker, Worthington, Crossley &

Stansberry, Washington, D.C.



Kip Hawley

Vice President, Reengineering, Union Pacific Railroad, Omaha, Nebraska



John G. Roach

President, Roach Consulting, Development Programming Associates; and

Vice President of Government Affairs, Citizens for Modern Transit, St.

Louis, Missouri



Damaso Seda

President, Transportation Workers' Union of Greater New York, Local 100,

New York, New York



John W. Snow

Chairman, President, and CEO, CSX Corporation, Richmond, Virginia



John C. Taylor

Assistant Professor, International Marketing, School of Business

Administration, Wayne State University, Detroit, Michigan











                            COMMISSION STAFF



                             Anne D. Aylward

                           Executive Director



                            Sandra K. Bushue

                             Deputy Director



                             Christine Gowen

                             Staff Assistant



                         SPECIAL ACKNOWLEDGMENTS



              Paul E. Nowicki, Santa Fe Pacific Corporation

           Michael P. Jackson, American Trucking Associations

                     Andrew Fogarty, CSX Corporation

                American Association of Port Authorities

                   American Public Transit Association

                    Association of American Railroads

            Paul Bea, Port Authority of New York & New Jersey

                      Chris Bertschy, A.T. Kearney

               Joni Casey, American Trucking Associations

             Christina Casgar, Transportation Research Board

         Jim Dumke, Volpe National Transportation Systems Center

             Norm Emerson, Catellus Development Corporation

             Jane Garvey, U.S. Department of Transportation

      Aaron Gellman, Northwestern University Transportation Center

          Jean Godwin, American Association of Port Authorities

            Michael Huerta, U.S. Department of Transportation

         Dick John, Volpe National Transportation Systems Center

           Jim Jones, Port Authority of New York & New Jersey

                      Larry Lawrence, A.T. Kearney

                   Geraldine Knatz, Port of Long Beach

                Kim Krueger, Staff of Senator Max Baucus

          John McQuaid, Intermodal Association of North America

             Steve Martin, U.S. Department of Transportation

             Frank Pentti, U.S. Department of Transportation

                     Jim Reese, Port of New Orleans

                    Mike Rock, Union Pacific Railroad

                Hector Rodriguez, Union Pacific Railroad

           George Schoener, U.S. Department of Transportation

          Joseph Sussman, Massachusetts Institute of Technology

                      Henry Yates, Port of Seattle



                                   vi











                                CONTENTS



PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . 3



PART I

AMERICA'S MOVE TO INTERMODAL TRANSPORTATION . . . . . . . . . . . . 5



1.   EFFICIENT INTERMODAL TRANSPORTATION: THE GOAL OF FEDERAL

     TRANSPORTATION POLICIES. . . . . . . . . . . . . . . . . . . . 7

2.   INVESTMENTS ARE NOT KEEPING PACE WITH DEMAND . . . . . . . . .13

3.   POLICY AND DECISION MAKING ARE FRAGMENTED. . . . . . . . . . .17



PART II



COMMISSION RECOMMENDATIONS: TOWARD A NATIONAL INTERMODAL

TRANSPORTATION SYSTEM . . . . . . . . . . . . . . . . . . . . . . .23



1.   MAKE EFFICIENT INTERMODAL TRANSPORTATION THE GOAL OF FEDERAL

     TRANSPORTATION POLICY. . . . . . . . . . . . . . . . . . . . .26

2.   INCREASE INVESTMENT IN INTERMODAL TRANSPORTATION . . . . . . .30

3.   RESTRUCTURE GOVERNMENT INSTITUTIONS TO SUPPORT INTERMODAL

     TRANSPORTATION . . . . . . . . . . . . . . . . . . . . . . . .34



APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . .39



A.   GLOSSARY OF ACRONYMS . . . . . . . . . . . . . . . . . . . . .40

B.   BIOGRAPHIES OF COMMISSION MEMBERS. . . . . . . . . . . . . . .41

C.   SECTION 5005, INTERMODAL SURFACE TRANSPORTATION EFFICIENCY

     ACT OF 1991. . . . . . . . . . . . . . . . . . . . . . . . . .45

D.   OUTREACH MEETINGS, SPEAKERS, AND WRITTEN TESTIMONY . . . . . .48

E.   COMMISSIONED STUDIES . . . . . . . . . . . . . . . . . . . . .59



                                   vii











                                 PREFACE



A new era in transportation is emerging in this Nation, an era of

"intermodalism," which refers to interconnections among modes of

transportation, use of multiple modes for a single trip, and coordinated

transportation policy-and decision making.  Congress recognized the

importance of the intermodal approach to the Nation's transportation

system in the Intermodal Surface Transportation Efficiency Act of 1991

(ISTEA).  In Section 5005 of that Act, Congress established the National

Commission on Intermodal Transportation to "make a complete

investigation and study of intermodal transportation in the United

States." The Act directed the Commission to recommend ways to speed

national conversion to an efficient intermodal transportation system,

and identify the resources necessary to do it.



Members of the Commission represent industry, State and local

governments, advocacy groups, academia, and the general public.  Of the

15 Commissioners, 11 received their appointments from Congressional

leadership and President Bush.  In 1994, an additional four members were

nominated by Secretary of Transportation Federico Pe¤a, after which the

Commission began its work in earnest.



To address its Congressional mandate, the Commission considered all

modes of passenger and freight transportation.  The Commission focused

its inquiry on:



   -  The status of the existing intermodal system;



   -  Legal, regulatory, and institutional issues;



   -  Funding and financial questions; and



   -  Technology and research issues.



To inform its research and recommendations, the Commission sought the

views and expertise of transportation experts in the public and private

sectors, as well as the general public.  The research process began with

a January 1994 meeting with Secretary of Transportation Federico Pe¤a,

followed by a March 1994 meeting of Department of Transportation modal

administrators.  The Commission then conducted a combination of

meetings, outreach sessions, and site visits in Atlanta, Boston, Butte,

Chicago, Laredo, Los Angeles, New Orleans, New York City, San Diego, Se-

attle, and Washington, D.C. (See Appendix D for a complete list of these

events.) During these sessions, Commissioners heard from more than 250

individuals and representatives of cities, metropolitan planning

organizations, regional authorities, States, industry, organized labor,

and advocacy groups.  The Commission also received and reviewed

extensive written testimony and commissioned four studies.

This report is intended to provide a framework, information, and

analysis for:



   -  The national debate on and Congressional consideration of the

      development of a National Intermodal Transportation System; and



   -  Congressional consideration of the upcoming reauthorization of

      ISTEA.



The Commission believes improvements in the U.S. intermodal

transportation system are critical to this Nation's economic health and

well-being.  Its consensus recommendations represent the steps

Commission members believe must be taken to ensure an intermodal

transportation system



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that meets the needs for passenger and freight transportation in the

future, while recognizing funding limitations and environmental

considerations.



The intermodal approach, as this report demonstrates, has much to

recommend it, including more efficient use of the Nation's

transportation infrastructure, better service, more convenience, and

more choices for users.  In these times of fiscal restraint, in

particular, intermodal transportation brings many opportunities to gain

maximum benefits from minimum resources spent.  Part I of this report

analyzes issues involved in expanding the use of intermodal

transportation.  Part II presents the Commission's recommendations for

advancing that expansion.



                                    2











                            EXECUTIVE SUMMARY



The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA)

offers a new vision for U.S. transportation policy:



      It is the policy of the United States to develop a National

      Intermodal Transportation System that is economically efficient

      and environmentally sound, provides the foundation for the Nation

      to compete in the global economy and will move people and goods in

      an energy efficient manner.



Transportation policy has traditionally focused on single elements:

automobiles, trains, trucks, ships, airplanes, and transit systems.  In

an intermodal transportation system, these elements are connected in a

seamless system that is efficient, safe, flexible, environmentally

sound, and meets the needs of the Nation's travelers and shippers.



The benefits of a National Intermodal Transportation System are

enormous.  Intermodalism offers the promise of: (1) lowering overall

transportation costs by allowing each mode to be used for the portion of

the trip to which it is best suited; (2) increasing economic produc-

tivity and efficiency, thereby enhancing the Nation's global

competitiveness; (3) reducing congestion and the burden on overstressed

infrastructure components; (4) generating higher returns from public and

private infrastructure investments; (5) improving mobility for the eld-

erly, disabled, isolated, and economically disadvantaged; and (6)

reducing energy consumption and contributing to improved air quality and

environmental conditions.



Spurred by technological development and international competition, and

encouraged by the vision of ISTEA, the U.S. transportation system is

already undergoing an historic transformation to an intermodal system,

particularly in the private sector movement of freight.  However, the

Commission found significant barriers to the development of a fully

inter-modal National Transportation System.  First, planning and

policies, particularly at the Federal level, do not encourage and

accommodate intermodalism.  Second, Federal funding of transportation

programs falls short of authorized levels and is directed modally,

discouraging investment in intermodal transportation.  Finally, Federal

Government institutions are organized along modal lines, which inhibits

planning and developing an intermodal transportation system.



The Commission's first group of recommendations addresses the policies

needed to capture the synergistic potential of this Nation's

transportation system:



(1)   Maximize safe and efficient movement of passengers and freight by

      incorporating individual modes into a National Intermodal

      Transportation System.



(2)   Ensure Federal policies foster development of the private sector

      freight intermodal system and reduce barriers to the free flow of

      freight, particularly at international ports and border crossings.



(3)   Adopt Federal policies that foster development of an intermodal

      passenger system incorporating urban, rural, and intercity

      service, including a viable intercity passenger rail network.



The second group of recommendations addresses investment issues:



(4)   Fund Federal transportation infrastructure programs at authorized

      levels and strategically target these funds for maximum impact.



(5)   Expand innovative public and private financing methods for

      transportation projects.



(6)   Allow greater flexibility and expand eligibility in use of State

      and Federal transportation funds for intermodal projects of public

      benefit.



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(7)   Provide Federal funding incentives for intermodal projects of

      national or regional significance.



(8)   Expand the intermodal focus of research, education, and technology

      development efforts.



The third group of recommendations addresses the need to restructure

government institutions to improve intermodal transportation:



(9)   Restructure the U.S. Department of Transportation to better

      support intermodal transportation.



(10)  Streamline and expedite the transportation infrastructure planning

      and project delivery process.





(11)  Require Department of Transportation concurrence on other Federal

      agency actions that affect intermodal transportation.



(12)  Strengthen the metropolitan planning organization process to

      accomplish the goals of ISTEA.



In making these recommendations, the Commission emphasizes that not all

intermodal transportation problems require Federal solutions.  Federal

policy should support private sector innovation, provide maximum

flexibility for State and local transportation officials, and not

intrude unnecessarily into private sector operations.



      Right.  The Interstate Highway System was built in the 1950's to

      move interstate commerce.  In the 1990's, traffic clogs many

      sections of the system, delaying movement of freight and

      passengers.



                                    4











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The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA)

offers a new vision for U.S. transportation policy:



      It is the policy of the United States to develop a National

      Intermodal Transportation System that is economically efficient

      and environmentally sound, provides the foundation for the Nation

      to compete in the global economy and will move people and goods in

      an energy efficient manner.



Transportation policy has traditionally focused on single elements:

automobiles, trains, trucks, ships, airplanes.  In an intermodal

transportation system, these elements are connected in a seamless system

that is efficient, safe, flexible, and environmentally sound, and meets

the needs of the Nation's travelers and shippers.



In the past decade, private sector transportation of freight has

undergone dramatic transformation from a "modal" to an "intermodal"

system.  ISTEA broadened that vision to the transportation system as a

whole-passenger as well as freight-public sector as well as private

sector.  The National Commission on Intermodal Transportation supports

this advance; it outlines in this report the benefits of a National

Intermodal Transportation System, identifies barriers to such a system,

and recommends changes that will enable the Nation to achieve this

vision.



At stake in this transformation is the future shape of the Nation's

economy and the quality of life of its citizens.  Timely and sensible

action will reap significant rewards, now and for coming generations.



TRANSPORTATION: AN ECONOMIC FORCE



The Nation's transportation system accounts for 16.8 percent of the

Nation's Gross National product (GNP).  Fully one-sixth of an American

household's expenditures, on average, go for transportation goods and

services.



The transportation system is simultaneously growing in size and becoming

more efficient.  Transportation expenditures in 1992 were $996 billion,

up from $543 billion in 1980.  Yet transportation expenditures as a

percent of GNP have been dropping steadily This decline, representing

savings to the U.S. economy exceeding $31 billion in 1992, accounts for

much of the ability of American firms to compete in a global economy. 

These savings have resulted largely from deregulation of much of the

transportation industry.



Passenger transportation, which is more dependent than freight

transportation on public sector programs and funding, has moved less

quickly to an intermodal system.



This report describes the challenges and opportunities the Nation faces

as it enters the era of expanding intermodalism.  Part I describes the

main themes heard by the Commission in its outreach sessions, focusing

particularly on barriers to intermodalism.  Part 11 contains the

Commission's recommendations.



                                    6











                                    1

                EFFICIENT INTERMODAL TRANSPORTATION: THE

                 GOAL OF FEDERAL TRANSPORTATION POLICIES





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      Intercity passenger rail is an important component of the Nation's

      intermodal transportation system, providing an adjunct to

      automobile and air travel.





Intermodalism describes an approach to planning, building, and operating

the transportation system that emphasizes optimal utilization of

transportation resources and connections between modes.  From the per-

spective of the user-the traveler or shipper of goods-the mode is

irrelevant; what matters is the quality, cost, timeliness, and safety of

the trip.



The benefits from a National Intermodal Transportation System are

enormous.  Intermodalism offers the promise of:



   -  Lowering transportation costs by allowing each mode to be used for

      the portion of the trip for which it is best suited;



   -  Increasing economic productivity and efficiency, thereby enhancing

      the Nation's global competitiveness;



   -  Reducing the burden on overstressed infrastructure components by

      shifting use to infrastructure with excess capacity;



   -  Generating higher returns from public and private infrastructure

      investments;



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   -  improving mobility for the elderly, disabled, isolated, and

      economically disadvantaged;



   and



   -  Reducing energy consumption and contributing to improved air

      quality and environmental conditions.



As the intermodal network expands, safety is and must always be the

hallmark of the U.S. transportation system.  Although technology and new

management practices have greatly improved safety, more research will

bring better understanding of transportation accidents and ways to

prevent them.  Government should play a role in setting safety standards

in the transportation industry.



INDIVIDUAL MODES OR A NATIONAL INTERMODAL SYSTEM?



This Nation's discrete modal components have, in effect, evolved into a

de facto national transportation system.  However, as Representative

Norman Mineta, Chair of the Committee on Public Works and

Transportation, recently said:



      There has never been a coherent, coordinated, and comprehensive

      national transportation policy that includes highways, transit,

      rail, airports and seaports as parts of a greater whole. And it is

      our greatest challenge here in the 1990's to start thinking and

      planning in terms of that greater whole.



Secretary of Transportation Federico Pe¤a also recognized the need for a

comprehensive national transportation policy in announcing his National

Transportation System (NTS) initiative.  He suggested that the current

system could be improved to reduce congestion, mitigate environmental

degradation, improve safety, and boost the economy.



Secretary Pe¤a described the objectives of the NTS succinctly: "We must

integrate all modes of transportation into a seamless system for moving

goods and people from coast to coast and within metropolitan areas."

Federal Highway Administrator Rodney Slater has added:



"Our challenge now is to shift our attention from what we've built to

how we can make it work better for our country." The Department of

Transportation has launched an extensive outreach program to refine and

focus the NTS concept.



The Commission repeatedly heard in its outreach sessions about the

importance of moving forward aggressively to promote ISTEA!s vision.  J.

Jayawardana of the Louisiana Ports and Waterways Institute stressed to

the Commission the importance of maintaining modal capabilities in an

intermodal system: "The unique role each mode plays must be recognized

in the NTS." This illustrates the underlying concept of the NTS: modal

muscle and intermodal efficiency are inextricably intertwined.



The Commission heard frequent questions and recommendations about the

composition and shape of the proposed NTS: How would the "threshold of

significance" be determined for NTS elements?  What about "lower order"

facilities that may not meet this criteria, but still play a crucial

role to a region?  What are the implications of having private sector

elements in the NTS?  What is the appropriate role for private sector

shippers and transportation providers in educating planners about the

importance of freight, in developing service requirements, and in

providing data?  How will "missing links" in the system be identified? 

The number and breadth of questions raised to the Commission about the

NTS points out the challenge ahead as the concept is refined.



Several points about the NTS became clear to the Commission:



-  The NTS must be far more than a map, network or inventory of

   facilities.  It must consider safety, efficiency, environmental im-

   pacts, rural mobility, and physical conditions of the system

   components.



-  Identification of NTS components and development of the NTS concept

   will require a "bottom-up" approach, consistent with the emphasis in

   ISTEA on local and State transportation decision making.



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-  The NTS must focus on connectivity between modes and on intermodal

   facilities.



-  The NTS must preserve the ability of the freight transportation

   sector to operate its privately owned infrastructure efficiently



-  The NTS must recognize the need for fundamental change in Federal

   governing and funding institutions.



At every Commission outreach session, the importance and inadequacy of

"intermodal connectors" was stressed.  The weakest links in the current

transportation system are the points of transfer between modes.  And,

because the current system is funded and managed separately by each

mode, responsibility for strengthening these links is unclear.  Bob

Matthews, President of the Railway Progress Institute, summed up

comments made by many to the Commission when he urged "speeding up the

process of designating intermodal connectors." Numerous outreach

participants suggested adding connectors to the National Highway System

(NHS) within 1 year of Congressional enactment of the NHS, and ensuring

sufficient flexibility for additions in future years.



The Commission also heard extensively about relationships between the

NTS and information systems.  Michael Replogle of the Environmental

Defense Fund was one of many who emphasized the importance of making

full use of Intelligent Transportation Systems information technology to

optimize performance of transportation systems.  He, and others,

identified opportunities to use information systems for network capacity

management, and advocated telecommuting and information exchanges that

reduce congestion by substituting for transportation.



INTERMODALISM HAS TAKEN HOLD IN THE FREIGHT SECTOR



The increasing importance of intermodalism in this country is

illustrated best in the freight sector, which accounts for 37 percent of

U.S. transportation expenditures.  Freight intermodal traffic is

primarily market-driven and today, more than ever, that market is the

world economy.



The era of intermodal freight transportation began in earnest in the

mid-1980's, when ocean carriers and railroads teamed up to launch

doublestack rail container service.  This approach stacks two shipping

containers on specialized railcars for greater efficiency Since this

system was introduced, growth has been explosive.  New partnerships

between ocean carriers, railroads, truckers, and shippers have been

formed, providing our Nation's economy with efficient, cost-effective,

seamless service, and driving dramatic changes in land and ocean

shipping.



The new intermodal partnerships among rail, truck, and ocean carriers

offer classic examples of the promises of intermodalism: lower costs,

which result in lower prices for consumers and improved marketability

for U.S. exporters; congestion relief, by shifting traffic from highways

to the private sector rail network; and environmental benefits, because

rail and water transport typically cause less damage to the environment.



New information technology, expanded use of air freight, sophisticated

logistics operations including just-in-time delivery practices, and

other industry factors are expected to drive a substantial increase in

intermodal freight traffic.  This growth has been facilitated by deregu-

lation and competition.  As the Commission heard from Aaron Gellman,

Director of the Transportation Center at Northwestern University,

"deregulation and competition have driven freight intermodal

innovation." Unfortunately, the Commission learned that the great

success of freight intermodalism has resulted in some problems.



Terminal Access and Urban Congestion



Connections between interstate highways, ports, railyards, and truck

terminals are often congested city streets shared with residents and

commuters.  Significant investments have been



                                    9











made by port authorities, railroads, trucking companies and terminal

operators to develop modern terminals.  But, planning has not always

been coordinated with local communities, and upgraded terminals are

often not served by upgraded access routes.  Fred Serpe, Executive

Director of the Illinois Transportation Association, told the Commission

that "the number one intermodal freight problem is highway access to

terminals." Ted Price, President of Triton Transport, a major Midwest

intermodal trucking company, said, "freight intermodal growth has far

outstripped the support infrastructure of access roads and bridges."

Mike Ryan, a Chicago-based intermodal trucker, pointed out that "bridges

near Chicago intermodal rail terminals have such tight clearances that

pavement swelling in winter often makes passing under them with trailers

or containers impossible."



Grade Crossings



At-grade road and rail crossings are a safety hazard, resulting in

hundreds of lost lives and millions of dollars in property damage each

year.  These crossings impair the efficiency of both the road and rail

systems.  In designing the Interstate Highway System, engineers rec-

ognized that grade crossings were unacceptable.  It is similarly

desirable to remove grade crossings, where practical, from the NFIS, and

ultimately the NTS.



Congestion at International Ports and Border Crossings



Border congestion and processing costs for intermodal freight movements

between the United States, Canada, and Mexico are excessive.  The

majority of problems relate to inadequate staffing by individual

agencies producing, for example, delays for drug interdiction

inspections, lack of coordination between inspection agencies within a

country, differences in inspection procedures at different border

crossings, excessive paperwork and bureaucratic red tape with brokers

and official agencies, and facilities that are typically open only

during "regular business hours."



The Commission toured freight and border crossing facilities in Laredo,

Texas, and heard extensive testimony concerning border crossing problems

with Mexico and Canada.  It was clear, as expressed to the Commission by

James Giermanski of Texas A&M University, that institutional

inefficiencies far outweigh physical infrastructure barriers, at least

at Laredo, which is the busiest U.S.-Mexico border crossing point for

freight shipments.



Equipment Utilization



U.S., Canadian, and Mexican laws restrict use of foreign trucks,

vessels, containers, and chassis for domestic moves.  Although

substantial progress has been made in allowing cross-border moves,

equipment must be "imported" to be used in-country.  These restrictions

result in reduced utilization of equipment and higher costs for

shippers.



State and Local Taxes



As the result of a recent Supreme Court decision, States can now impose

sales taxes on the lease of containers used exclusively in international

commerce.  This decision has also reopened the debate on the imposition

of local property taxes on domestically owned containers used

exclusively in international commerce.  In both cases this outcome could

lead to a proliferation of local taxes and produce a negative impact on

the free flow of intermodal freight.



PASSENGER TRANSPORTATION IS STILL ORGANIZED BY MODE



Intermodalism is far less developed when it comes to moving people

rather than freight.  Individual modal systems have traditionally been

planned, built, and operated with little regard for coordination or

connections.  The modal structure of government transportation

institutions is a significant barrier to a seamless intermodal passenger

system because the



                                   10











passenger sector has historically been closely tied to Federal programs

and funding.  Christina Casgar of the Transportation Research Board

posed a central question to the Commission: "Economics has driven

freight intermodal, but what about passengers?  Are subsidies so

prevalent and complex that the market simply can't work?"



The seamless service offered to freight shippers by private sector

carriers is seldom available to passengers.  United Parcel Service and

other freight carriers ship packages intermodally, door-to-door,

anywhere in the country.  However, transportation consultant Matt Coogan

described to the Commission the far more difficult challenge of moving

his elderly grandmother from Haverhill, Massachusetts, to Columbus,

Indiana.  Both ends of the journey required lengthy connections by

private automobile to the nearest airport, because there was no public

transportation service available.  Even if such services were available,

it would be difficult to find out about them, because there is no single

ticketing or information system in place to arrange such trips.



Passenger intermodalism has shown some signs of progress since passage

of ISTEA.  Bus and rail transit systems more often coordinate schedules

and farecards.  Amtrak and intercity bus lines are recognizing the need

to provide coordinated schedules and interline ticketing, and multimodal

passenger stations are on the drawing boards around the country.



In the passenger system, just as in the freight system, poor modal

connectivity is a significant barrier to intermodalism.  Too often, the

bus station is 10 blocks from the commuter rail station, or the transit

line stops at the airport, but too far away to walk to the terminals. 

The following six issues were raised most frequently during the

Commission's outreach.



Lack of Intermodal Terminals



Many cities abandoned or demolished downtown passenger rail terminals

during the urban renewal era of the 1960's.  Yet, by the 1990's, it

became clear to many cities that a central downtown multimodal

transportation center would be the heart of a viable passenger

intermodal system.  Construction of these facilities requires

cooperation among local governments, transit and commuter rail

operators, public and private bus operators, and often one or more

freight railroads.  Ownership of such facilities is no longer

necessarily a public responsibility.  In fact, funding them often re-

quires a complex mix of public and private financing and commercial

development arrangements.  The Union Stations in Los Angeles and

Washington, D.C., and Boston's South Station, are excellent examples of

successful projects.  Atlanta is now spending $7.8 million in Federal,

city, and private funds for a new multimodal terminal.



Intermodal terminals encourage coordination of intercity bus service

with rail passenger service.  In California, for example, State trans-

portation funds are used by Amtrak to run buses which offer coordinated

service with passenger trains.  In Seattle, Ron Borowski, Project

Manager of the Seattle Engineering Department, described the King Street

Station project to the Commission as a "Rainbow Coalition" of transport

operators-local, regional, and intercity buses; airport shuttles;

pedestrian paths; bike trails; links to the ferry terminals; and Amtrak

and commuter rail.  He observed that users accept the concept of

intermodalism -the problem is in forging implementing agreements between

service providers.



Congested Airport Access



Congestion generated by passenger travel to airports is a growing

problem in many urban areas.  Improved rail transit and commuter rail

access to airports can reduce highway congestion.  Examples of good

transit service to airports exist in Chicago, Atlanta, and St. Louis.



Rural Isolation



In rural areas, often the only means of transportation available is the

private automobile.  Substantial contraction of intercity bus and air

services since deregulation has resulted in



                                   11











abandonment of key passenger services to small communities.  Forthcoming

Congressional action on Essential Air Services legislation could further

impact availability of air service in rural areas.  Jack Gilstrap of the

American Public Transit Association reminded the Commission of the

special needs of rural Americans: 62 million people live outside

metropolitan areas, and many lack access to automobiles.  Many of the

rural elderly are in poor health and not licensed to drive.  Currently,

35 percent of rural residents live in areas with no public

transportation.  Mobility for people living in rural areas must be an

important consideration in developing national transportation policy



Parking Availability



Richard Salmon of Amtrak explained to the Commission that "the first

intermodal challenge in marketing Amtrak services is the overwhelming

need to provide adequate parking facilities." His comments were

reinforced by commuter rail managers across the country.  For example,

Pat McAtte of Chicago's Metra system pointed to inadequate parking as a

major barrier to increased use of commuter rail service.  Dependable

train service will not be optimally utilized if the parking supply is

not adequate.  Inadequate funding for parking, and the unwillingness of

local communities to make land available, were also cited as intermodal

barriers.



Intercity/Commuter Rail Connections



In many markets, particularly in the Northeastern United States and

Southern California, seamless transfers between commuter rail systems

and Amtrak must be available for rail to become a viable alternative to

auto or air travel.  Unfortunately, jurisdictional fragmentation of

intercity and commuter rail systems has created barriers to seamless

connections, particularly in areas like ticketing, information dis-

semination, and schedule coordination.



Joint Use of Infrastructure



Intermodalism has most often been viewed within the context of two

largely separate systems, one devoted to freight, the other to pas-

sengers.  But, it is important to recognize linkages between the freight

and passenger systems.  As demand grows for both movement of goods and

people, and as parts of the system reach capacity, transportation

planners and decision makers must foster interrelationships between

these two systems.  For example:



-  Passenger systems need access to rail lines, many of which are now

   used exclusively for freight, to move people on commuter rail and

   intercity rail systems.  The Commission heard examples in Los

   Angeles, St. Louis, and Chicago where freight and passenger rail

   officials reached agreements that benefitted all parties.



   In Chicago, Metra and the Burlington Northern Railroad operate 83

   commuter trains, 4 Amtrak trains, and 60 to 100 freight trains daily

   between Chicago and Aurora with little inconvenience to freight

   shippers and a 98 percent on-time factor for passengers.  In Southern

   California, the public sector purchased and improved rail lines so

   that they can be shared by commuter and freight trains.  In St.

   Louis, an imaginative trade of infrastructure between the private and

   public sectors enabled the construction of a light rail line.



-  Freight carriers need to improve their systems for moving through

   congested urban areas.  Testimony was received in New Orleans,

   Boston, and Los Angeles regarding dedicated freight corridors being

   developed with support of metropolitan planning organizations and

   State planners.



Only by connecting the modes and addressing the relationship between

passenger and freight systems can the full promise of ISTEA be achieved.



                                   12











                                    2

              INVESTMENTS ARE NOT KEEPING PACE WITH DEMAND





Click HERE for graphic.





      City streets and bridge clearances are major barriers to

      intermodal transportation.  Postponed improvements of

      infrastructure construction and maintenance contributes to delays

      and congestion.



Investments in transportation infrastructure are investments in this

Nation's future.  Unfortunately, even funding Federal transportation

programs to authorized levels will not provide sufficient funds to meet

all transportation needs that have been identified by Federal, State,

and local planners.



Francis Francois, Executive Director of American Association of State

and Highway Transportation Officials, observed that, "even if ISTEA had

been fully funded by the Congress, it would not provide adequate funding

to meet the identified surface transportation needs." In 1993 the

Federal Highway Administration estimated the costs of eliminating the

backlog of highway, bridge, and bus and rail transit deficiencies at

$308 billion.  This does not include unmet needs of airport, port,

inland waterway, or intercity passenger rail systems.



In 1992, the Nation invested an estimated $226 billion in transportation

infrastructure and equipment.



The Federal Government makes the smallest contribution to the overall

funding of transpor-



                                   13











tation.  However, Federal policies have strong influence over

transportation funding decisions throughout the system.  Federal funds

become inducements for significant portions of State, local, and even

private expenditures.





Click HERE for graphic.





The Commission recognizes that fiscal restraint is key to the Federal

Government's deficit reduction strategy; it also recognizes that a na-

tional infrastructure deficit will do as much harm as the current budget

deficit.  The challenge is to target the Nation's transportation

investments to reap the greatest benefits for the future.  Funding

intermodal projects, thereby maximizing capacity of the entire system,

must be the goal of transportation policies.



Funding concerns identified by the Commission during its outreach

sessions fall into the following five areas.



Funding Unmet Needs



The Commission heard consistently about unmet infrastructure needs and

about the importance of funding Federal transportation programs at

authorized levels.  In fiscal year 1994, Congress appropriated $22.2

billion for surface transportation programs.  Full funding of these

programs would have required appropriation of an additional $1.3

billion.



In written testimony, Robert Martinez, Virginia's Secretary of

Transportation and former Director of the U.S. Department of

Transportation Office of Intermodalism, commented, "The most important

thing that can be done to advance intermodalism is to fully fund ISTEA."

Across the country, the testimony was the same.



Diversion of user fees from transportation trust funds to other uses is

a further drain on the system.  A recently published Eno Foundation

report indicates that $9 billion in transportation user fees have been

diverted annually to offset the Federal budget deficit.



Federal policy makers must be aware of the incentives created by Federal

funding programs.  Historically, Federal funds have been restricted to

project construction; this has led to construction solutions when

perhaps operating or maintenance funds might result in better solutions. 

For example, Federal border officials in Laredo observed that increased

funding for operating personnel, which will allow border crossings to be

open longer hours, would provide adequate border crossing capacity at

lower cost than a new bridge.



Innovative Financing



Since Federal appropriations for transportation projects are unlikely to

increase dramatically, it is important to expand use of innovative fi-

nancing mechanisms, so that additional funds can be invested in

intermodal transportation projects.



The importance of innovative financing was recognized in President

Clinton's Executive Order on "Principles for Federal Infrastructure



                                   14











Investment," issued January 28, 1994.  The President directed all

agencies to:



      Seek private sector participation in infrastructure investment and

      management.  Innovative public-private initiatives can bring about

      greater private sector participation in the ownership, financing,

      construction, and operation of [Federal] infrastructure programs

      .... agencies should work with State and local entities to

      minimize legal and regulatory barriers to private sector

      participation.



Before ISTEA, Federal transportation funding was almost entirely through

grants matched by State or local funds.  ISTEA opened up the playing

field by encouraging additional financing options, including: tolls on

federally aided highways and bridges, private sector "matches" for ISTEA

funds, ability to match Federal funds through investment credit pro-

visions, and creation of revolving loan funds.  States are just

beginning to take advantage of these innovative financing mechanisms. 

Several States, including California, Florida, Texas, and Washington,

have passed legislation to enable them to benefit from the innovative

financing provisions of ISTEA.



In March 1994, FHWA undertook an Innovative Financing Project, which

suspended many Federal funding rules and regulations, and invited States

to submit creative proposals for transportation projects.  Responses far

exceeded expectations.  The project's principal conclusion was that

multiple strategies are needed to leverage Federal dollars and maximize

investments from nontraditional sources.  The Commission notes that the

high number of intermodal projects submitted is convincing testimony to

the institutional constraints of funding intermodal projects through

conventional modal grant programs.



Flexibility and Eligibility



In addition to the need for additional funds, the Commission heard

extensively about the importance of allowing State and local officials

greater flexibility in spending transportation funds.  Senator Max

Baucus of Montana summed it up:





      ISTEA recognized that each State has different needs and

      priorities.  New Yorkers may find that mass transit projects are

      the most efficient way to spend their money.  Montanans need high-

      ways.  ISTEA lets both make the best decision for their State. 

      The flexibility in ISTEA is critical to good transportation

      policy.  It lets States focus their Federal funds on those

      projects that make sense-rather than having Washington dictate the

      types of projects they must complete.



Others, while agreeing, observed that the flexibility promised by ISTEA

has not yet been fully realized.  Susan Stauder of the Bi-State Develop-

ment Agency of St. Louis observed, "ISTEA gives direction to be

intermodal, but funding still comes out the old way -- via modal silos."

Linda Bohlinger of the Los Angeles Metropolitan Transportation Authority

concurred: "the flexibility message has not really trickled down."

Traditional funding systems put intermodal projects at a significant

disadvantage.  Paul Kaftanski, Transportation Project Manager for the

City of Everett, Washington, described difficulties trying to fund

construction of bus bays at the city train station: "FHWA" said it

wasn't a highway project.  The Federal Transit Administration told me it

wasn't a transit project." His experience is not unique.



The Commission also heard that other Federal trust funds are too

restrictive.  For example, the Airport and Airways Improvement Act re-

stricts use of airport funds to on-airport projects.  In this funding

environment, disputes arise over which sources to tap, eliciting a "not-

from-my-fund" reaction, even if there is agreement on the merits of a

project.



Regional and National Projects



ISTEA placed new emphasis on empowering MPOs and States to take

advantage of Federal funding flexibility to meet the needs of their

jurisdictions.  Unfortunately, this strong local focus might prove to be

a barrier to projects of national significance that provide benefits be-

yond local areas.  As Federal Railroad Administrator Jolene Molitoris

said recently, "the MPOs know what they need, but they may not



                                   15











have the bigger picture. "Given the traditional passenger focus of MPOs

and their local political mandates, this appears to be a particular

problem for freight projects.



The need for incentives to ensure funding of projects of regional or

national significance was pointed out across the country.  Port, rail,

and truck operators expressed concerns that without such incentives,

freight projects would remain unfunded.



Jean Godwin, representing the American Association of Port Authorities,

expanded on this concern: "It appears that under ISTEA, national

priorities are in danger of being lost in the current decision-making

framework at the MPO level.  We are concerned that freight projects that

support the Nation's global competitiveness must continue to compete for

funds under a process that inherently favors more popular local

passenger and transit projects."



John Glover of the Port of Oakland concurred: "The problem with the

current ISTEA process is that projects such as freight rail improvements

that contribute to the economic vitality of the Nation, but do not have

obvious benefits to their immediate local or regional areas, are

penalized.  Priority and funding need to be established for nationally

significant projects."



An example is the Alameda Corridor Project in Southern California

partnership between ports, railroads, and surrounding cities to move

international freight more efficiently through the ports and to the rest

of the country.  Such projects should be eligible for supplemental funds

from the Federal government due to their national significance.



Similar examples exist on the passenger network.  In Boston, the

Commission received testimony about the Central Artery Project, origi-

nally an all-highway project that has been expanded to include a rail

link to close a gap in the passenger rail system.  The rail link will

connect more than 600 miles of commuter rail lines and more than 140

stations, and it will improve transportation alternatives in Northern

New England by connecting the region to Amtrak.  The highway portion of

the project includes new port and airport access routes and removes

several major bottlenecks.



Research, Education, and Technology Development



Federally supported transportation research, education, and technology

development are restricted by the traditional modal funding system.



As outlined by Professor Michael Meyer of the Georgia Institute of

Technology, there is a critical need to change how transportation

professionals are educated.  Meyer said to the Commission in Atlanta

that "there is a need to encourage transportation educators to incorpo-

rate intermodal considerations into the classroom.  Without doing so, we

perpetuate the old paradigms instead of training transportation

professionals for the 21st century."



The modal organization of transportation data compounds the challenge to

planners trying to develop intermodal systems.  As the new Bureau of

Transportation Statistics observed in its first report, issued in 1994,

"Substantial data exist about the transportation system, but it falls

short of providing the information needed to inform policy makers about

the strategic issues facing the USDOT." The Commission heard consider-

able testimony from State and MPO planners about the difficulty of

planning and project analysis in the absence of intermodal data.



DOT's National Surface Transportation Research plan, submitted to

Congress in 1993, candidly observed that, "the individual modes within

DOT conduct the majority of their research independently." This is

reflected in the organization of transportation research foundations,

institutes, and trade associations.



The Transportation Research Board and Marine Board could assist DOT in

identifying and coordinating research that cuts across individual modes. 

As Christina Casgar of the Transportation Research Board said, "rail,

transit, waterway, aviation, highway, environmental, management and

logistics issues need to be considered under one tent.  Separate

research approaches foster inefficiencies and encourage overlapping, if

not redundant research."



                                   16











                                    3

                POLICY AND DECISION MAKING ARE FRAGMENTED





Click HERE for graphic.



   Local bus service is vitally important to many commuters, shoppers,

   and other persons, linking their homes with destinations in the

   metropolitan area or transfer terminals to rapid transit, rail, air

   or long-distance bus service.





Kirk Brown, the Illinois Secretary of Transportation, testified that

"some of the biggest intermodal barriers are not physical; they exist in

our thinking and our institutions, which are still very mode-specific."

Changing thinking, institutions, and human behavior is, in many ways,

more difficult than investing in infrastructure.  The Nation's

transportation institutions now reflect modal thinking.  This approach

worked well to build today's transportation system, but it is a

significant barrier to intermodal transportation.



Transportation institutions must change to support development of a

national intermodal transportation system.  Under the current mode-based

institutional structure, connections between modes are at the edge of

every organization's responsibility.  In a true intermodal organization,

these connections would be recognized as the heart of the system.



                                   17











Federal Transportation Agencies



The modal structure of the Federal Government is a fundamental barrier

to intermodal transportation.  DOT is organized along modal lines,

maintaining the structures of the agencies that were brought together

when DOT was formed in 1967.





Click HERE for graphic.





DOT is to be commended for initiatives in forging task forces and

partnerships across the modal administrations that begin to realize the

intermodal vision of ISTEA.  Testimony to the Commission suggests,

however, that a more complete reorganization of DOT will ultimately be

required to realize the full benefits of ISTEA.  It is time for ad hoc

task forces to be replaced by a truly intermodal organization.



A frequently heard comment in testimony was that the Secretary of

Transportation's Office of Intermodalism should be given additional re-

sources that would enable it to play the role envisioned by ISTEA.  A

participant in the Commission's New Orleans meeting asked Commissioners

why there were two Offices of Intermodalism at DOT--one in the Office of

the Secretary of Transportation and another at FHWA.  In Los Angeles,

Ginger Gherardi of the Ventura County Transportation Commission and

President of the National Women's Transportation Seminar, pointed out

that "government doesn't think intermodally.  This complicates patching

together funding and approval for intermodal projects."



Problems at the Federal level are reflected at the State levels, where

the Federal modal organization of transportation is replicated by many

States.  Charles Apffel of Louisiana State University suggested that:

"transportation agencies at all levels of government must be structured

and staffed to understand all modes."



Congress, too, reflects the modal orientation of the post-World War 11

transportation system. jurisdiction for transportation policy develop-

ment is shared by six committees.  Transportation funding decisions are

similarly dispersed among two appropriations committees and two budget

committees.  When related jurisdictions are considered, such as

committees dealing with environmental programs, what emerges is a

structure that complicates policy making, creates funding "silos" and

inhibits intermodal planning and policy development.



Since passage of ISTEA, there has been clear intent in Congress and DOT

to encourage intermodalism.  Many formal and informal ef-



                                   18











forts to break down modal barriers are under way.  Encouraging these

efforts and accelerating the pace of change will enhance the efficiency

of the Nation's intermodal transportation system.



STREAMLINE PLANNING AND PROJECT DELIVERY



Regulations that accompany Federal transportation funding frequently add

costs and delays to projects.  This problem is magnified for intermodal

projects because they are often governed by regulations of more than one

agency, and the regulations of the agencies are rarely compatible.



The transportation sector provides many examples of the findings of Vice

President Gore's National Performance Review regarding government red

tape.  The Commission received considerable testimony regarding the

complexity and cost of responding to the increasing burden of Federal

regulations.  Added to the regulations of the transportation programs

themselves are the web of regulations overlaid from other Federal

agencies, the cost of complying with Federal mandates, and financial

sanctions for noncompliance.  The Commission got a strong sense of the

overwhelming bureaucratic burdens that transportation planners must deal

with on a daily basis.



It is not that State and local transportation officials necessarily

disagree with the underlying social and environmental goals reflected in

these regulations.  Their concern is that red tape makes it needlessly

hard to deliver projects and services.



In Los Angeles, Linda Bohlinger of the Los Angeles Metropolitan

Transportation Authority suggested that California's Grant Application

Streamlining Committee be considered as a model for expediting Federal

processes.  At the same hearing, Judy Wilson of the Los Angeles

Metropolitan Transportation Authority observed, "it just takes too long

to get projects completed ... this hurts our competitiveness." As the

Transportation Departments of Idaho, Montana, North Dakota, South

Dakota, and Wyoming testified jointly on June 6: "The system has reached

overload and the time has come to stop adding Federal requirements and,

indeed, to start reducing them."



For small projects, the burden of Federal regulations that accompanies

Federal funding has become particularly prohibitive.  For example, in

Wyoming, 22 rural transit operators receive Federal Section 18 grants of

$20,000 or less.  Reporting and compliance responsibilities that come

with these grants make it extremely difficult for small towns to apply

for funds that are vitally needed to keep their services running. 

Compliance with drug and alcohol-testing requirements will add more

costs.



Brian Shorten, Executive Director of the Fargo/Moorhead Metropolitan

Council of Governments, submitted useful commentary on the reality of

ISTEA's newly flexible funding: "the paperwork involved in transferring

ISTEA funds between FHWA and Federal Transit Administration] is very

complex and time consuming ... procedures must be streamlined and

simplified." A recurring theme of outreach sessions was the need to

refocus the U.S. system on needs of customers-the users of the system-

rather than on the system itself.  The process within DOT for review and

approval of projects needs to be overhauled and streamlined to create

consistent regulations and procedures among the modal agencies.



CONFLICTING NATIONAL GOALS IMPACT INTERMODAL TRANSPORTATION POLICY



A major cause of the regulatory maze surrounding transportation projects

is the fact that, over time, the Nation has adopted goals without

reconciling the inherent policy conflicts embedded in them.  Federal

agencies beyond DOT that play a role that directly or indirectly affects

transportation policy and regulations are depicted in the organization

of Federal agencies.



Intermodal projects are typically more complex than single-mode

projects.  As a result, conflicts are likely to be even more complicated

and time consuming than for traditional modal projects.  The gridlock

surrounding navigation channel



                                   19











dredging at the Nation's international ports is an example.  As

President Clinton observed in a letter to the American Association of

Port Authorities, "Too often, dredging projects are caught up in a

regulatory tangle." Improving port access to the rail and highway system

is pointless if ports have no access to the ocean.  The President

committed his Administration to develop improved long-term management

plans that will avoid project delays without compromising the

environment.





Click HERE for graphic.





FHWA and the Environmental Protection Agency (EPA) are now meeting

regularly to understand better each other's priorities.  EPA is reaching

out to industry to address environmental issues affecting them

multimodally (air, land, and water pollution addressed simultaneously). 

Such initiatives should be encouraged and emulated.  Early and

continuing liaison among the agencies and with involved non-Federal

groups should generally forestall conflicts and result in sound

proposals and decisions.  An early, coordinated planning approach by all

affected interests allows responsible parties to identify policy

conflicts, recommend modifications, and avoid problems.



THE ROLE OF MPOs IN INTERMODAL TRANSPORTATION



An underlying premise of ISTEA is that States and MPOs have more

authority to decide how Federal funds are used.  In exchange, Congress

sought to preserve the national public interest by imposing substantive

new planning and programming requirements.  ISTEA mandates that MPOs and

States undertake integrated planning, linking transportation and land

use, tying transportation to environmental and socioeconomic concerns,

and addressing urban congestion, growth demands, and air quality

concerns.



The new role of MPOs, their capabilities, and their organizational

structures were arguably the most frequently raised topic during the

Commission's outreach sessions.



Many observers were concerned that MPOs may not be staffed with

appropriately trained personnel to handle their expanded role, and

suggested that training efforts should be expanded.  One observer noted,

"Skill levels at



                                   20











MPOs are very thin [in this area].  It's scary that MPOs are not doing

freight planning, but given their skill levels, it could be worse if

they were doing it." DOT can play an important part in providing

training for MPO staffs and by serving as a clearinghouse for

information regarding effective tools and techniques.



This expanded role for MPOs has raised concerns regarding their

membership.  In many regions, transit providers, ports, airports, and

Amtrak remain outside the process.  The Commission also heard that

central city interests may not have a sufficiently strong voice.



The need to bridge the gaps between public planning and private sector

decision making also requires flexibility and commitment from all

parties.  George Hanthorn of Greyhound told the Commission that his

company is reaching out to MPOs to participate in their planning

process.  He pointed out that "the planning process never seems to end."

Participation in the process requires resources that many companies

cannot afford.



Lack of understanding of freight issues by MPOs was a continuous theme

heard by the Commission.  As Joel Weiner of the New Jersey

Transportation Planning Authority told Commissioners: "Prior to the

passage of ISTEA, goods movement and intermodal issues were frankly 'on-

the-back-burner' in terms of MPO priorities." This situation was typical

of MPOs before ISTEA; their transportation focus was on local, passenger

issues.  As the Commission was often told: "freight doesn't vote." But

former Federal Railroad Administrator Gil Carmichael disagreed. 

"Freight does vote," he said.  "It votes with its feet.  Freight will go

where it is able to move most efficiently, and in a global economy it

has many choices.  Those enterprises which rely upon efficient

intermodal service will follow it to new locations."



The Commission heard of efforts across the country to help MPOs

understand the importance of freight and to provide opportunities for

freight interests to participate in setting transportation priorities. 

John Claffey of the Delaware Valley (Pennsylvania) MPO described a

Freight Task Force made up of carriers, shippers, and receivers from his

MPO's region.



Intermodalism in the private sector has resulted in new and productive

partnerships.  There are opportunities for similarly productive

solutions in the public sector, but they require new communication,

cooperation, and partnerships.  The Alameda Corridor in southern

California and the Tchoupitoulas Corridor in New Orleans are two

projects that have emerged as a result of complex partnerships among the

host cities, ports, railroads, truckers, labor unions, adjacent

residential communities, and environmental advocacy groups.  They serve

as examples of creative solutions emerging from the new opportunities of

ISTEA.



A LOOK FORWARD



Two important points are worth making in conclusion.  First, the future

of the U.S. transportation system is not determined by commission

reports such as ours or directives from Washington.  The economic

strength, technological inventiveness, and business ingenuity of this

Nation have long combined to push the national transportation system to

new levels of capacity to meet market demands.  The question now before

the Nation is: How can the Nation's transportation system best accommo-

date the various interests of the economy and enhance the quality of

life of the American people?



Second, at critical times in U.S. history the Federal Government has

stepped forward to stimulate change and improvement in the national

transportation system.  Federal support helped build the great canal

systems, transcontinental rail lines, interstate highways, and airway

system that have been so vital to national development and economic

growth.



Today, the Federal Government once again faces the opportunity to

advance development of transportation.  The government can speed



                                   21











the shift to intermodalism by both stepping in and stepping aside.  As

this report makes clear, the Federal Government should step in with

carefully directed financial support, and step aside by reforming the

cumbersome planning and decision-making mechanisms and regulatory

structures that impede efforts to link the modes into a seamless

transportation system.



The exciting and challenging aspect of national transportation in the

United States today is that change is already happening, and happening

rapidly-the intermodal train has already left the station.  The role of

the Federal Government is to ensure that it reaches its destination. 

The recommendations in the next section are targeted at this goal.



      Right:  The U.S. transportation system is making the transition to

      intermodalism.  The potential for bus-train passenger transfers,

      of the sort pictured here, is beginning to be demonstrated in many

      parts of the country.



                                   22









                                   II

                       COMMISSION RECOMMENDATIONS:

                      TOWARD A NATIONAL INTERMODAL

                          TRANSPORTATION SYSTEM





Click HERE for graphic.











Click HERE for graphic.





      Freight containers doublestacked on railcars moving from ports to

      inland markets have transformed the shape and cost of freight

      transportation, generating significant savings for the nations

      shippers and consumers.



Ports, airports, railroads, inland waterways, transit and highway

systems are the foundation for this Nation's economy, quality of life,

and success as a world power.  In an era of scarce resources, America

needs to invest more strategically in transportation infrastructure to

meet the future needs of travelers and shippers and to maintain the

Nation's competitive position in an increasingly global economy

Consideration must be given to the relative strengths and efficiencies

of all transportation modes.  Government policies and spending must

optimize the contribution of each mode to the overall transportation

system and to the Nation's quality of life.



The Intermodal Surface Transportation Efficiency Act USTEA) offers a

vision of the intermodal transportation system that America needs for

the safe and efficient movement of passengers and freight.  Findings

from the Commission's outreach and site visits and from testimony lead

to recommendations in three areas that build upon the basic vision of

ISTEA.



First, it is essential that Federal policy makers envision the national

transportation infrastructure as a unified system tying the Nation to-

gether and linking it with the rest of the world.  The transportation

system is larger than the sum of its modal parts.  To capture the syner-

gistic potential of the system, connections between the modes must be

improved.  Intermodal connectors, such as multimodal passenger terminals

and roads between freight terminals and major highways, are currently

among the weakest links in the transportation system.



Second, the Nation needs to expand investment in transportation by fully

funding authorized



                                   24











Federal programs and encouraging innovative financing mechanisms.  The

Commission also urges increased flexibility in the use of Federal and

State funds for intermodal projects.  Again, emphasis must be placed on

strategically targeting investments to maximize benefits to the entire

system by improving intermodal connections and linkages.



Third, government institutions that support the Nation's intermodal

transportation system must be better structured to deliver optimal

results.  While the private sector has changed to meet the needs of the

marketplace, the public sector is still organized along modal lines,

hampering efforts to reap the benefits of intermodalism.



Transportation planners in the United States contend daily with an

outmoded, tortuous web of governmental red tape and structural ineffi-

ciencies that threaten to erode the basic mobility of passengers and

freight.  Communities needing to build a road, dredge a port, expand a

runway, or construct an intermodal passenger terminal too often are

endlessly delayed by conflicting policies and regulations that create a

regulatory maze for State and local transportation officials.



In order to accomplish these three objectives, the Commission proposes

12 recommendations.



Make Efficient Intermodal Transportation the Goal of Federal

Transportation Policy:



(1)   Maximize safe and efficient movement of passengers and freight by

      incorporating individual modes into a National Intermodal

      Transportation System.



(2)   Ensure Federal policies foster development of the private sector

      freight intermodal system and reduce barriers to the free flow of

      freight, particularly at international ports and border crossings.



(3)   Adopt Federal policies that foster development of an intermodal

      passenger system incorporating urban, rural, and intercity

      service, including a viable intercity passenger rail network.



Increase Investment in Intermodal Transportation:



(4)   Fund Federal transportation infrastructure programs at authorized

      levels and strategically target these funds for maximum impact.



(5)   Expand innovative public and private financing methods for

      transportation projects.



(6)   Allow greater flexibility and expand eligibility in use of State

      and Federal transportation funds for intermodal projects of public

      benefit.



(7)   Provide Federal funding incentives for intermodal projects of

      national or regional significance.



(8)   Expand the intermodal focus of research, education, and technology

      development efforts.



Restructure Government Institutions to Support Intermodal

Transportation:



(9)   Restructure the U.S. Department of Transportation to better

      support intermodal transportation.



(10)  Streamline and expedite the transportation infrastructure planning

      and project delivery process.



(11)  Require Department of Transportation concurrence on other Federal

      agency actions that affect intermodal transportation.



(12)  Strengthen the metropolitan planning organization process to

      accomplish the goals of ISTEA.



In making these recommendations, the Commission emphasizes that not all

intermodal transportation problems require Federal solutions.  Federal

policy should support private sector innovation, provide maximum

flexibility for State and local transportation officials, and not

intrude unnecessarily into private sector operations.



                                   25











                                    1

              MAKE EFFICIENT INTERMODAL TRANSPORTATION THE

                  GOAL OF FEDERAL TRANSPORTATION POLICY





Click HERE for graphic.





      In a busy metropolitan area, the rapid transit system provides

      important options to increasingly congested areas.



1  Recommendation 1: Maximize safe and efficient movement of passengers

   and freight by incorporating individual modes into a National

   Intermodal Transportation System.



ISTEA establishes a new vision for U.S. transportation policy.  An

efficient intermodal transportation system is key to the Nation's eco-

nomic strength and quality of life.  Transportation planning, policies,

and investments must be carefully targeted to maximize the potential

contribution of each mode to the overall system.  An integrated national

system must focus on the users-on moving people and goods, not modes and

vehicles.



Intermodalism is the cornerstone of the National Transportation System

(NTS) concept proposed by Secretary of Transportation Federico Pe¤a. 

The Commission believes the NTS must include consideration of: (1)

primary



                                   26











public and private transportation infrastructure, with special

recognition of points of connection between modes; (2) changes in

funding mechanisms to ensure support for intermodal projects; and (3)

institutional changes to balance single-mode advocacy and biases with a

broad-based intermodal perspective.



In determining the NTS, the Department of Transportation should

establish specific performance objectives that measure the efficiency,

equity, environmental impact, and productivity of the total

transportation system.



The Commission also recognizes that information systems provide critical

support for transportation.  Telecommuting, video-audio conferencing,

and electronic data interchange, for example, can alter transportation

patterns.  NTS planners must recognize the importance of information

systems development and ensure that potential benefits from such systems

are fully exploited in the NTS.



The Commission supports designation of the proposed National Highway

System (NHS), the backbone of the NTS.  Its designation by Congress is

key to continued development of the Nation's transportation system.  The

Commission urges DOT to designate, within 1 year of enactment of the

NHS, intermodal connectors as part of the NHS.  In the future, new

intermodal connectors should be added as additional NHS segments at the

request of the States and at the Secretary's discretion.



The Commission also urges DOT to set a schedule to eliminate railway

grade crossings from the NHS and from the future NTS where practical. 

Improved user safety must be given priority as modal connections and

linkages are addressed.



2  Recommendation 2: Ensure Federal policies foster development of the

   private sector freight intermodal system and reduce barriers to the

   free flow of freight, particularly at international ports and border

   crossings.



As DOT refines the NTS concept, it is critical that it recognizes and

does not disrupt the market forces that fostered development of

America's intermodal freight transportation system.  Private sector

freight carriers have made enormous gains in productivity and efficiency

in the past decade as a result of deregulation, intermodalism,

technology, and competition.  These gains have benefitted U.S.

businesses and consumers.



Public policies should support continued growth of intermodal freight

operations.  Public and private sector transportation interests must

work together to ensure that public policies support private investment

and vice versa.  Effective public private partnerships have demonstrated

that informed, targeted investment can facilitate the movement of both

goods and passengers.



Barriers to safe and efficient movement of freight occur at connections

between modes and at international borders where congestion and

conflicts are most common.  For example, inadequate roadway access to

freight terminals is a barrier to the intermodal freight system and a

major contributor to urban congestion.  The lack of adequate connectors

between the interstate highway system and the Nation's port, rail,

airport, and truck terminals results in urban congestion, air pollution,

negative impacts on adjacent neighborhoods, and delivery delays for

shippers.



Delays at port and border areas also reduce the reliability of

intermodal operations.  Congestion and processing costs are significant

problems on both the Mexican and Canadian borders, as well as at the

Nation's international seaports and airports.  These problems are

primarily in-



                                   27











stitutional in nature.  The Commission heard testimony concerning

institutional barriers such as staff shortages for U.S. Customs and U.S.

Immigration and Naturalization Service, lack of coordination among

border inspection agencies, delays caused by drug interdiction,

excessive documentation requirements, limited hours of operation, and

insufficient use of automated processing technologies.  The Commission

recommends that Federal agencies remove these barriers by working

together with their Mexican and Canadian counterparts to increase

coordination and streamline processing.



The North American trading partners' restrictions on the use of another

country's intermodal equipment in domestic operations unnecessarily

reduces the efficiency and competitiveness of the North American

logistics system.  The Federal Government should work with the Govern-

ments of Canada and Mexico to achieve a phased lifting of these

restrictions.



Improved communication between the freight industry and the public

sector will facilitate removal of identified barriers.  The Commission

encourages efforts by local freight interests to participate in the

public planning process.



3  Recommendation 3: Adopt Federal policies that foster development of

   an intermodal passenger system incorporating urban, rural, and

   intercity service, including a viable intercity passenger rail

   network.



The concept of intermodalism is not as fully established in the

passenger sector as in the freight sector.  The private automobile is

the primary means of passenger travel in the United States, supported by

the Nation's well developed highway system, and given dispersed

development patterns, relatively low cost of fuel, and lack of viable

alternatives.  Because so much of the passenger system is publicly

funded, the modal structure of Federal Government and Federal funding is

a particular barrier to intermodalism in the passenger system.



The goal of the intermodal passenger system should be to provide

seamless service to passengers, offering mobility to both urban and

rural residents.  The Commission encourages development and funding of

metropolitan passenger transportation systems and the intercity systems

that link them together.  Intercity bus and airline carriers have

substantially reduced service to rural areas.  If America is to have a

complete national intermodal passenger system it must include

opportunities for isolated rural residents and residents of the Nation's

urban areas who have lost mobility options.



The Commission also urges the Federal Government to remove barriers to

creative public-private partnerships and to support innovative programs

for meeting diverse local and State needs for intermodal passenger

transportation.  Unfunded mandates and liability concerns are

significant barriers to providing intermodal passenger transportation,

which should be identified and removed without compromising licensing

and safety.  While these are a problem for all transportation projects,

the increased complexity of intermodal projects compounds the problem.



A truly national intermodal passenger system must provide seamless

connections among all elements of the passenger's trip-for example, the

portion of the trip from home to a transit station, the "line haul"

transit link, and the final leg from the transit station to the destina-

tion.  Passenger intermodalism can be enhanced by improving

institutional cooperation.  Examples of areas for improvement that were

highlighted in testimony to the Commission include: shared stations

between carriers and modes, connections between intercity rail and local

systems, interline ticketing, standardized



                                   28











signage, expanded parking facilities at outlying transit stations,

interagency revenue sharing agreements, coordinated schedules, and

improved information dissemination.



The Commission believes a viable passenger rail network augmented by

bus, van, and other feeder services is a key component of the Nation's

transportation system.  Rail is currently a weak element of the

intermodal passenger system.  Amtrak has important capital needs and

lacks a stable funding source.  For it to become a viable alternative

and adjunct to air and automobile travel, it must receive adequate and

stable capital funding.



Amtrak has recognized the need to improve services and achieve operating

efficiencies.  The Commission encourages DOT and Congress to participate

with Amtrak in designing its recapitalization.  Sources should include a

variety of State and Federal appropriations, additional flexibility in

use of ISTEA funds, and effective access to private capital markets.



                                   29











                                    2

            INCREASE INVESTMENT IN INTERMODAL TRANSPORTATION





Click HERE for graphic.





      Outside Dallas-Fort Worth, Texas, is the newest intermodal

      terminal in the Southwest.  Opened in 1994, the project was made

      possible through the cooperation of private and public sector

      organizations.  It features facilities for intermodal transfer of

      automobiles, airfreight, highway trailers, and international

      shipping containers.





4  Recommendation 4: Fund Federal transportation infrastructure programs

   at authorized levels and strategically target these funds for maximum

   impact.



The Nation needs additional transportation investment inspired by a

vision of a coordinated intermodal transportation system.  In an era of

financial constraint, it is critical that the Nation target

transportation funds strategically to gain the most capacity from the

existing infrastructure by investing in missing links and connections.



Investment in transportation infrastructure is essential to the Nation's

future; timely and imaginative development of the transportation

infrastructure is key to the Nation's economic strength and vitality and

must be maintained.  The demand for funding for the construction,

maintenance, and safe operations of such facilities continues to

increase.



                                   30











Lack of funding for transportation infrastructure was a recurring theme

in testimony received by the Commission.  During its outreach sessions,

the Commission heard consistently about the importance of fully funding

Federal transportation programs to authorized levels.



The Commission has identified a requirement to fund intermodal projects

of a national or regional significance, to provide additional capital

resources for intercity passenger rail and to encourage States to

achieve flexibility parallel to that of ISTEA.  To achieve these

recommendations, additional funds beyond those currently appropriated

will be required.



Studies highlighting the economic returns often called multiplier

effects-of infrastructure investments typically conclude that modest

increases in government transportation investments yield extraordinarily

high returns.  Such studies show returns, expressed in terms of

increased jobs, worker productivity, or increased worker incomes, in the

range of three to six times the amount invested within just a few years. 

In general, there is considerable evidence that public investment in

transportation has a powerful effect on long-term economic growth.



ISTEA expanded the range of projects eligible for Federal funding and

gave States new funding flexibility.  Expectations about additional

funding were raised, but no new sources were provided.  In fact, revenue

from gas taxes, the principal funding source for highway and transit

projects, is likely to shrink as fuel efficiency improves and

alternative fuel programs take hold.  Congress must address these

funding issues in ISTEA reauthorization.  Unless alternate funding is

identified, the gap between investment needs and funding capability will

widen, and this Nation will fall well short of reaching its economic

potential.



5  Recommendation 5: Expand innovative public and private financing

   methods for transportation projects.



Raising the capital needed to fund transportation infrastructure will

require innovative financing solutions that expand resources beyond the

traditional Federal grant programs.



One approach to innovative financing involves conventional mechanisms

used in new ways.  This could include leasing of transit vehicles and

facilities, or joint public-private project development (Washington

D.C.'s Union Station redevelopment is an example of such a partnership,

involving Federal, State, and private funds).  Other approaches to

innovative financing involve mechanisms not normally used in public

sector transportation financing, such as congestion pricing.  The

Commission observes that determining the appropriate mix of such

innovative financing products for a project can be a significant

technical challenge and it recognizes that the approach to risk has,

historically, been quite different in the public and private sectors. 

DOT should serve as a clearinghouse for ideas, information, and ex-

perience with innovative financing.



The ISTEA legislation itself provides considerable flexibility for

innovative project financing, including more flexible use of Federal

funds; revenue options such as tolls on Federal aid highways and

bridges; broadening the definition of state match to include non-cash

asset contributions by private sector and local governments; flexibility

to match Federal funds through investment credit provisions; greater

private sector involvement in infrastructure construction, operation,

and maintenance; use of Federal funds for loan guarantees; syndication

of tax credits; and creation of State revolving loan funds.  These

opportunities are only beginning to be utilized.



                                   31











6  Recommendation 6: Allow greater flexibility and expand eligibility in

   use of State and Federal transportation funds for intermodal projects

   of public benefit.



The Commission learned at virtually every outreach hearing that

intermodal connections are the weakest links in the intermodal system. 

The current inadequacy of these connections causes "seams" in what must

become a "seamless" system.



The Commission recommends flexible use of Federal transportation dollars

to encourage State and local officials to implement creative solutions

to transportation problems.  The Commission heard consistent support for

ISTA's increased funding flexibility and for increased decision making

at the State and local levels.  Barriers in 36 States discourage

intermodal project funding, preventing use of State gas tax revenue for

projects such as multimodal terminal construction, commuter rail, or

paratransit.  The Commission urges these States to match Federal funding

flexibility.



Although ISTEA granted considerable funding flexibility, it left some

modal restrictions on eligibility of projects for Federal funding.  For

example, ISTEA funds cannot be used for freight or intercity rail

projects (except Congestion Management and Air Quality funds).  Other

trust funds are even more restricted: Airport and Airway Improvement Act

funds cannot be used for off-airport access projects; and Harbor

Maintenance Trust Funds cannot be used for constructing containment

areas for dredge disposal.



The Commission urges that these restrictions be minimized to allow

States and MPOs the opportunity to evaluate investment decisions across

modes and make modal tradeoffs.  States and MPOs should be encouraged to

give greater emphasis to intermodal projects that improve connections,

choices, and reliability and enhance the overall capability of the

transportation system.  Eligible projects should include:



-  Connectors that link the NHS, ports, airports, truck, rail, and bus

   terminals;



-  Multimodal terminals that connect air services, intercity rail,

   intercity bus, commuter rail, transit, bus and van feeder services,

   and non-motorized modes; and



-  Rail and highway projects (e.g., bridge clearances, grade crossings,

   Amtrak, rail clearances, and other joint use projects that increase

   system capacity).



These projects must show a demonstrated public benefit, have the support

of both the sponsoring public body and the private sector entity

involved, and not disturb the competitive balance within the private

sector.



7  Recommendation 7: Provide Federal funding incentives for intermodal

   projects of national or regional significance.



The national intermodal transportation system should ensure funding of

projects of national or regional significance.  However, ISTEA's

emphasis on local and State decision making means that projects of

national significance, which sometimes largely provide benefits beyond

local or State jurisdictions, may not receive appropriate funding

priority.

Congress should provide special funding annually to support some number

of intermodal projects that are truly of national or regional

importance.  The Secretary of Transportation



                                   32











should solicit projects from the States and MPOs or from coalitions of

State and regional transportation authorities.  This project-specific

funding would augment, not replace, existing infrastructure funding for

the selected projects.  Strict intermodal selection criteria are impor-

tant to guarantee that approved projects pro-vide the maximum

enhancement to the national intermodal transportation system.



This recommendation is intended to give the MPOs and States additional

resources to address projects of national and regional significance.



8  Recommendation 8: Expand the intermodal focus of research, education,

   and technology development efforts.



Intermodal transportation would be improved by development of a

comprehensive program for intermodal transportation research.  Title V

of ISTEA requires that "The Director [Office of Intermodalism] shall be

responsible for coordinating Federal Research on intermodal

transportation." Unfortunately, the Office of Intermodalism has not yet

fully coordinated intermodal research and development programs of the

various modal administrations.  As a result, individual modes within DOT

conduct the majority of their research independently.  Funding for

cross-modal research is generally not available.



The Commission urges DOT to provide the Office of Intermodalism with

sufficient resources to accelerate implementation of this mandate of

ISTEA.  DOT could draw on the resources of the Volpe National

Transportation Systems Center, the Transportation Research Board (TRB),

and the Marine Board better to define and coordinate intermodal research

needs.



Private sector intermodal freight carriers have embraced technology in

response to customer demand and competition.  Opportunities exist in the

passenger sector for increased use of technology, but the incentives and

financial resources to undertake them are not as evident.



The Commission urges additional research in areas such as: systems that

improve rail/highway grade crossing safety; automated equipment

identification; vehicle location systems; safety performance standards;

high-speed rail technology; multimodal revenue accounting and ticketing

systems; transit information dissemination; and Advanced Public

Transportation Systems.  Each of these areas can improve performance of

the intermodal transportation system, and appropriate research should be

supported.



The NTS concept provides an excellent opportunity to employ advanced

technologies (e.g., Intelligent Transportation Systems) to eliminate

"seams" from the intermodal system and to manage the system more

efficiently to generate additional capacity.



Through its outreach, the Commission observed that the mode-oriented

programs of the Nation's universities should adjust to train the next

generation of transportation professionals for the intermodal world of

the 21st century.  Intermodal course modules and case studies should be

funded, developed, and disseminated.  DOT could use the University

Transportation Centers program to take the lead on curriculum reform to

provide stronger training in intermodal transportation.



                                   33











                                    3

                   RESTRUCTURE GOVERNMENT INSTITUTIONS

                  TO SUPPORT INTERMODAL TRANSPORTATION





Click HERE for graphic.





      Union Station is a historic site in Washington, DC.  Almost

      demolished in the 1960's and disastrously redeveloped in the

      1970's, it was taken over by a public-private partnership and is

      today in renaissance as a highly successful multimodal

      transportation and shopping center.





9  Recommendation 9: Restructure the U.S. Department of Transportation 

   to better support intermodal transportation.



DOT should be restructured to achieve the intermodal vision expressed in

ISTEA.  The current modal structure of DOT is a barrier to development

of a National Intermodal Transportation System.  Within DOT the modal

administrations have traditionally served as advocates for specific

modes.  As a result, intermodal planning and projects are programmatic

orphans.



The Office of Intermodalism in the Office of the Secretary (OST), which

ISTEA created to become the principal intermodal advocate within DOT,

does not have adequate resources or staff to perform this function

effectively.  The Federal Highway Administration's (FHWA) Office of

Intermodalism actually has more resources allocated to intermodal issues

than does OST's, but is organizationally constrained by its place-



                                   34











ment within FHWA.  As the Commission heard in each of its outreach

sessions, intermodalism is nobody's job.



Reorganization of DOT is not a new idea; almost every outgoing Secretary

has recommended reorganization to his or her successor.  Various groups,

including the National Academy of Public Administration, have recom-

mended creation of a Surface Transportation Administration within DOT. 

The Commission recommends that a Surface Transportation Agency be

created at the earliest suitable opportunity, though it recognizes that

such restructuring may not be appropriate in the middle of a Secretary's

tenure.



Meanwhile, immediate steps must be undertaken to better support an

intermodal transportation system.  They include:



-  Combining regional offices, creating a single point of contact that

   represents all modes to ensure coordinated intermodal policies and

   procedures at the local level to provide more effective customer

   service;



-  Harmonizing modal rules, regulations, standards, and deadlines to

   achieve a single regulatory review and project approval process;



-  Strengthening the unified budgeting system in OST;



-  Providing the OST's Office of Intermodalism with adequate resources

   to lead DOT's intermodal initiatives, such as reviewing intermodal

   plans, coordinating intermodal research, and reviewing projects of

   national significance.



   Similarly, as the opportunity arises, the Congressional committee

structure should be streamlined better to support a national intermodal

transportation system.  The current structure is too fragmented to

ensure consistent and expedient transportation policies.



10 Recommendation 10: Streamline and expedite the transportation

   infrastructure planning and project delivery process.



Sweeping changes are needed in rules that govern the Federal and State

procurement processes for transportation infrastructure planning and

construction.  They are encumbered with multiple layers of procedures

that lack uniformity and consistency.  It simply takes too long to

complete transportation projects.



Support for transportation need not be so inefficient.  When Southern

California was jolted by the January 1994 earthquake, transportation

officials responded quickly with innovative, flexible transportation

solutions.  Transit systems implemented new services, and roads and

bridges were rebuilt in record time.  This extraordinary cooperation

must become routine.



To quote Vice President Gore's National Performance Review (NPR) Report:

"Thousands upon thousands of outdated, overlapping regulations remain in

place." The Commission concurs with the NPR recommendation that each

Federal agency undertake a thorough and systematic review of its

internal regulations.  Within DOT, it is critically important that this

review be department-wide, providing an opportunity to resolve

differences in the regulations and procedures of the individual modes.



The differences in procedures and regulations are a particular problem

in the passenger sector because it is typically more dependent on public

sector funding.  For intermodal projects, which often use funds from

more than one mode, this lack of consistent procedures is a significant

barrier.  A single review process should be developed, so that a project

receiving funds from more than one agency does not have to maintain

multiple systems.  For example, Amtrak works with the Federal Rail-



                                   35











road Administration for its intercity service but with the Federal

Transit Administration for the commuter rail services it operates. 

Harmonization of the procedures of the two agencies would benefit

Amtrak.  Similarly, a multimodal station project, such as Union Station

in Los Angeles, which receives funds from multiple Federal sources, is

faced with disparate procedures from the various divisions within DOT.



Equally important is the need to coordinate project review procedures

from Federal agencies outside DOT (the Environmental Protection Agency,

the Corps of Engineers, the Departments of Commerce, Defense, Energy,

Housing and Urban Development, and Labor, among others).  It is

essential that DOT take the lead in rationalizing the relationship be-

tween DOT review of transportation projects and their review by other

Federal agencies.  The review and approval process should be simul-

taneous, not sequential.  A harmonized and consolidated review process

would dramatically streamline project delivery.  Resolution of the

underlying policy conflicts would be extremely helpful in this effort.



11 Recommendation 11: Require Department of Transportation concurrence

   on other Federal agency actions that affect intermodal

   transportation.



The reconciliation of transportation and environmental priorities

deserves attention at the highest levels of government.  The Commission

suggests creation of a White House Cabinet Council to facilitate the

integration of Federal transportation and environmental policy



A multitude of regulations have been promulgated in the past two decades

as the Nation has come to understand the critical importance of

protecting and sustaining the environment.  These regulations, developed

to address specific problems, present a formidable maze to navigate for

infrastructure development.  Intermodal projects, because they include

more than one mode, are typically more complex and bureaucratically more

complicated than single-mode projects.



The unintentional impact of the growing body of Federal and State

environmental regulations on the transportation sector is that many

projects are unnecessarily delayed.  The Commission strongly recommends

that the transportation industry seek opportunities to work closely with

environmental regulators so that regulations are developed that are

sensitive to the Nation's transportation needs while meeting our

environmental objectives.  EPA and the transportation industry need to

work in partnership to find practical, economically viable solutions to

the Nation's environmental problems.



Compelling illustrations of problems with the current regulatory process

were presented to the Commission at outreach meetings.  For example,

reactions to California's pending Federal Implementation Plan to improve

air quality in Southern California have raised significant concerns

regarding its practical implementation.  Testimony to the Commission

suggests that earlier involvement of freight interests might have

resulted in recommendations that address both environmental and

transportation goals.



In Boston, the Commission received a presentation on the permitting maze

that has nearly halted dredging of navigation channels, creating a

crisis for the Nation's ports.  Intervention by the President and

leadership by DOT brought together the multitude of regulating agencies

and may lead to a coordinated policy for transportation in this area.



It is essential that Federal policy makers identify ways to develop

environmental regulations that take into consideration costs to the

transportation system and to the economy as a whole.  In addition,

incentives must be devel-



                                   36











oped for public and private sector transportation planners to promote

environmentally sensitive transportation.  One of the major benefits of

the intermodal system is that it allows tradeoffs among modes that can

offer substantial environmental benefit.



12 Recommendation 12: Strengthen the MPO process to accomplish the goals

   of ISTEA.



The transportation needs of the Nation's regions and States are quite

diverse.  Congress, in drafting ISTEA, recognized that State and local

officials have a clear view of the needs of their jurisdictions and

empowered them to determine their transportation priorities and to

decide which projects to fund.



ISTEA legislated fundamental changes for transportation planning and

funding at the State and local levels.  Strengthening the role of MPOs

in transportation planning and resource allocation was an important

change.  However, ISTEA was ambiguous regarding the relative roles and

responsibilities of the States and MPOs.



The situation is complicated by the diversity of the structures and

procedures of MPOs.  The Nation now has more than 340 MPOs, reflecting a

broad range of local and regional governments.  Their diversity makes it

difficult to generalize about MPO resources, capabilities, and

representation.



To maximize the effectiveness of intermodal transportation planning, key

public and private sector interests must participate in the local

planning process.  Similarly, rural areas need to have a role with the

States in developing transportation plans and priorities to ensure that

the increased role for MPOs does not in any way disadvantage the

interests of rural areas at the State level.



ISTEA also gave the States and MPOs explicit new responsibility for

freight planning.  Training and resources need to be made available to

enable them to take on these new responsibilities.  Because

transportation planning has historically focussed on passenger mobility,

the skills and data required for freight planning are typically not well

developed within MPOs.  Planning the Nation's intermodal transportation

system will require improved communication between the public and

private sectors.  The Commission urges MPOs to expand their

understanding of the freight system and urges the freight industry to

become involved in the public process.



In the private sector, intermodalism has resulted in new and productive

partnerships.  ISTEA creates an important opportunity to develop

similarly productive public sector and public-private partnerships that

support the growth of intermodal freight and passenger services.



                                   37











Right.  Barge shipments, perhaps this country's first truly intermodal

transportation, remain critical for shipping agricultural and other bulk

commodities.



                                   38







                               APPENDICES





Click HERE for graphic.











                                    A

                          GLOSSARY OF ACRONYMS



         AAR       Association of American Railroads



         AAPA      American Association of Port Authorities



         AASHTO    American Association of State and Highway

                   Transportation Officials



         Amtrak    National Rail Road Passenger Corporation



         APTA      American Public Transit Association



         DOT       U.S. Department of Transportation



         EPA       Environmental Protection Agency



         FAA       Federal Aviation Administration



         FHWA      Federal Highway Administration



         FRA       Federal Railroad Administration



         FTA       Federal Transit Administration



         GNP       Gross National Product



         HUD       U.S. Department of Housing and Urban Development



         ISTEA     Intermodal Surface Transportation Efficiency Act of

                   1991



         MARAD     U.S. Maritime Administration



         MPO       Metropolitan Planning Organization



         NHS       National Highway System



         NTS       National Transportation System



         OST       Office of the Secretary of Transportation



         TRB       Transportation Research Board



         USCG      U.S. Coast Guard



                                   40











                                    B

                    BIOGRAPHIES OF COMMISSION MEMBERS





Robert D. Krebs, Chairman



Robert Krebs is chairman, president, and chief executive officer of

Santa Fe Pacific Corporation and the Atchison, Topeka and Santa Fe

Railway Company Mr. Krebs began his career in the railroad industry in

1966 with Southern Pacific Transportation Co. Subsequently, he held a

number of positions in the operating and executive departments of

Southern Pacific Transportation Company and the St. Louis Southwestern

Railway Company.  Mr. Krebs became president of Southern Pacific

Transportation Company in 1982, and president and COO of Santa Fe

Southern Pacific when the two holding companies merged in 1983.  He as-

sumed his present position in 1988.  Mr. Krebs is also: a director of

Phelps Dodge Corporation, Northern Trust Corporation, Catellus Develop-

ment Corporation, Santa Fe Energy Resources, Inc., John G. Shedd

Aquarium, Ravinia Festival Association, Northwestern Memorial Hospital,

and Lake Forest College.  He holds a Bachelor of Arts from Stanford

University and a Master's in Business Administration from the Harvard

Business School.



Jacki Bacharach



Jacki Bacharach is president of Jacki Bacharach and Associates-a

consulting firm that specializes in transportation, telecommunications,

and government relations issues identification and policy development-

and vice chair of Commuter Transportation Services, southern

California's regional ridesharing agency.  Previously, Ms. Bacharach was

a member of the Rancho Palos Verdes City Council for almost 14 years,

including 3 terms as mayor; served on the Los Angeles County

Transportation Commission, where she chaired the overall Planning

Committee, the Rail Construction Committee, the Rail Planning Committee,

and served one term as commission chair; was founding chair of the

southern California regional Rail Authority-the five-county agency

responsible for the Metrolink commuter rail system; and was a charter

member of the Alameda Corridor Transportation Authority, which deals

with landside access to the Ports of Los Angeles and Long Beach.  Ms.

Bacharach is a member of the Women's Transportation Seminar.



Kenneth L. Bird



Kenneth Bird is president of Illinois Rail, a nonprofit Illinois

Corporation.  For more than 25 years, he has been involved in developing

pro-rail freight and passenger transportation policy at the State and

local levels.  A cofounder of the Illinois Association of Railroad

Passengers, Mr. Bird served for 15 years as a board member of the

Washington-based National Association of Railroad Passengers.  He has

also served on State and local transportation committees and boards. 

Mr. Bird currently chairs the Public Interest Group of the Illinois

State High Speed Rail Citizens Committee.



Phillip D. Brady



Phillip Brady is vice president and general counsel of the American

Automobile Manufacturers Association (AAMA)-the trade association for

Chrysler, Ford Motor Company, and General Motors Corporation. 

Previously, he served as assistant to the President and staff secretary

in the White House from 1991 to 1993; as general counsel for the U.S.

Department of



                                   41











Transportation from 1989 to 1991; as deputy counsel to the President in

the White House from 1988 to 1989; and as deputy assistant counsel to

the Vice President from 1986 to 1988.  He has also held various

positions in the U.S. Department of Justice and was in private practice

in California.



Anne P. Canby



Anne Canby is secretary of transportation for the State of Delaware. 

She has extensive experience in transportation administration, strategic

planning, finance and budgeting, and management.  Prior to her current

position, Ms. Canby was a partner in Canby, Cameron, a consulting firm

that focused on public sector transportation agencies, including State

departments of transportation and public authorities.  Ms. Canby has

also held several State- and Federal-level positions in the

transportation industry.  She is a member of the Women's Transportation

Seminar.



Wayne E. Davis



Wayne Davis is the founder and chairman of TrainRiders/Northeast in

Portland, Maine.  Established in 1989, TrainRiders is a nonprofit

educational organization with members throughout New England.  The

organization has worked successfully to enhance regional intermodal

passenger service and bring Amtrak service to northern New England.  Mr.

Davis is a member of the executive committee of the National Association

of Railroad Passengers and the Maine DOT's Transportation Advisory

Committee as well as a director of the Northeast Corridor Initiation

Corp. He has also been actively involved in national efforts to link the

North and South Railway stations in Boston, MA.  As the former chief

operating officer of BankEast Mortgage Corporation of Maine, Mr. Davis

has had an extensive career in public and private finance.



Thomas J. Donohue



Thomas Donohue is president and chief executive officer of the American

Trucking Associations (ATA).  ATA is a national organization that

represents all segments of the trucking industry, conducts a wide range

of safety and policy research, and provides training and technical

services to the industry.  Together with its affiliated organizations,

including State trucking associations in every State and the District of

Columbia, ATA serves the nearly 8 million Americans who earn their

livings in the trucking industry.  Before joining ATA in 1984, Mr.

Donohue was a group vice president for the U.S. Chamber of Commerce.



Leon S. Eplan



Leon Eplan is commissioner of planning and development for the City of

Atlanta, Georgia.  In this role, he advises the Mayor and City Council

on city policy regarding comprehensive and functional planning, growth

management, and building maintenance.  He has worked in the public and

private sectors for more than 3 decades, as well as headed the Graduate

City Planning Program at Georgia Tech.  During his professional career,

Mr. Eplan has undertaken major transportation projects throughout the

country related to most of the major modes-highways, transit, airports,

bikeways, waterways, and pedestrian systems-and has lectured and

published numerous articles on the impact of transportation on cities

and urban regions.  Among other efforts, he served as the chief of urban

planning consultant on the design of Atlanta's rapid transit system,

examined the economic development potentials of the Tennessee-Tombigbee

Waterway project, and undertook plans for the consolidation and

relocation of 19 major rail lines in St. Louis.  He is currently working

on designs for a multimodal passenger terminal station in downtown

Atlanta as well as helping to prepare the city for the 1996 Summer Olym-

pic Games.



Jacqueline S. Gillan



Jacqueline Gillan is vice president of Advocates for Highway and Auto

Safety (Advocates).  She was a founding board member of the organization

before joining the staff in fall 1990.  She has had a 17-year

professional ca-



                                   42











reer in the transportation field holding senior positions on highway,

transit, rail, and safety issues in State transportation agencies in New

Jersey, California, and Ohio; and as Congressional relations officer in

the Secretary's office and consumer director for the Research and

Special Programs Administration in the U.S. Department of

Transportation.  She is a graduate of the University of California at

Santa Barbara and holds a Master's degree in urban planning from the

University of California at Los Angeles where her research and writings

on the transportation needs of the elderly earned her a national award.



Edward R. Harnberger



Edward Hamberger is the managing partner of the Washington, D.C., office

of Baker, Worthington, Crossley, & Stansberry.  He joined the firm after

serving as Assistant Secretary for Governmental Affairs at the U.S.

Department of Transportation.  Prior to that position, Mr. Harnberger

was a partner in a Washington, D.C., law firm specializing in

administrative and legislative law.  He has also served as staff

director and legal counsel of the House Republican Policy Committee,

general counsel and special counsel to the chairman for the National

Transportation Policy Study Commission, and administrative assistant to

Senator Hugh Scott.  Mr. Harnberger earned his B.S.F.S, M.S.F.S., and

J.D. from Georgetown University.



Kip Hawley



Kip Hawley is vice president for reengineering for the Union Pacific

Railroad.  Previously, he served as vice president of transportation

services at Union Pacific, where he was responsible for centralizing

train dispatching, crew management, intermodal operations, and

transportation planning for the Railroad's 19,000-mile system.  Prior to

joining Union Pacific, Mr. Hawley held senior-level policy positions at

both the White House and the U.S. Department of Transportation during

the Reagan Administration, and as vice president and chief of staff for

Citicorp's Mid-Atlantic consumer loan business.



John G. Roach



John Roach is president of Roach Consulting Corp., Development

Programming Associates, in St. Louis, Missouri.  Previously, he was vice

president of Mills Group, Inc. and president of Pantheon Corporation,

two integrated real estate, development, management, brokerage, and

construction firms in the St. Louis metropolitan area.  Mr. Roach also

serves on the executive committee and is a member of Downtown St. Louis,

Inc. and Vice President of Government Affairs, Citizens for Modern

Transit.



Damaso Seda



Darnaso Seda is president of Transport Workers' Union of Greater New

York, Local 100, the union that represents the 38,000 men and women who

operate the New York City subway, bus system, and private bus lines.  He

joined TWU as shop steward at the Fresh Pond Bus Depot in Queens in 1965

and served in a variety of positions, including legislative director,

director, secretary, and treasurer, until his election as president in

October 1993.  Mr. Seda holds several degrees from Cornell/Empire State

College.  He has received numerous awards for his dedication to

political empowerment and community involvement from such diverse groups

as the Boy Scouts of America, the Voters Club of New York, the New York

State Federation of Labor, AFL-CIO, and the Grand Council of Hispanic

Societies.



John W. Snow



John Snow is chairman, president, and chief executive officer of CSX

Corporation.  CSX is an international transportation company offering a

variety of rail, container-shipping, intermodal, barging, trucking,

contract logistics, and related services worldwide.  Since joining CSX

in 1977, Mr. Snow has held a variety of administrative, operating, and

executive positions, culminating in his appointment as CEO in 1989. 

Previously, he was deputy undersecretary of the U.S. Department of

Transportation and administrator of the National Highway Traffic Safety

Administration.  Earlier in



                                   43











his career, Mr. Snow practiced law and was a professor of law and

economics.



John C. Taylor



John Taylor is assistant professor of international marketing and

logistics at the School of Business Administration of Wayne State Uni-

versity in Detroit, Michigan, where his research has focused on the

plant and warehouse location implications of the North American Free

Trade Agreement, as well as a variety of border crossing transportation

issues.  He also has conducted extensive research on State transpor-

tation policy issues, is a recent member of the National Motor Carrier

Advisory Committee to FHWS, and has testified before Congressional

committees and the Michigan Legislature on transportation issues on a

number of occasions.  Dr. Taylor holds a Ph.D. in logistics from

Michigan State University.



                            COMMISSION STAFF



Anne D. Aylward, executive director of the Commission, is former

maritime director of the Massachusetts Port Authority and is active in

port and transportation organizations in Boston and nationally She

served as chairman of the board of the American Association of Port

Authorities and is currently a member of the executive committee of the

National Research Council's Marine Board.  Ms. Aylward is a graduate of

Radcliffe College at Harvard University and holds a Master's degree from

the Massachusetts Institute of Technology.



Sandra K. Bushue, deputy director of the Commission, has held a variety

of positions in Federal Government executive management and in nonprofit

organizations.  Ms. Bushue is a graduate of Eureka College and is

currently seeking an Executive Master's of Business Degree at George

Mason University.



                                   44











                                    C

        INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1991

                  (Public Law 102 - 240 - Dec. 18,1991)



SEC. 5005.  National Commission on Intermodal Transportation.



(a)   ESTABLISHMENT - There is established a National Commission on

Intermodal Transportation.



(b)   FUNCTION - The Commission shall make a complete investigation and

study of intermodal transportation in the United States and

internationally.  The Commission shall determine the status of

intermodal transportation, the problems that exist with respect to

intermodal transportation, and the resources needed to enhance

intermodal transportation.  Based on such investigation and study, the

Commission shall recommend those policies which need to be adopted to

achieve the national goal of an efficient intermodal transportation

system.



(c)   SPECIFIC MATTERS TO BE ADDRESSED - The Commission shall

specifically investigate the following:



   (1)   INTERMODAL STANDARDIZATION - The Commission, in coordination

   with the National Academy of Sciences, shall examine current and

   potential impediments to international standardization in specific

   elements of intermodal transportation.  The Commission shall evaluate

   the potential benefits and relative priority of standardization in

   each such element and the time period and investment necessary to

   adopt such standards.



   (2)   INTERMODAL IMPACTS ON PUBLIC WORKS INFRASTRUCTURE - The

   Commission shall examine current and projected intermodal traffic

   flows, including the current and projected market for intermodal

   transportation, and how such traffic flows affect infrastructure

   needs.  The Commission shall make recommendations as to capital needs

   for infrastructure development that will be required to accommodate

   intermodal transportation, particularly with respect to surface

   transportation access to airports and ports.



   (3)   LEGAL IMPEDIMENTS TO EFFICIENT INTERMODAL TRANSPORTATION - The

   Commission shall identify legal impediments to efficient intermodal

   transportation.  Specifically, the Commission shall study the

   relationship between current regulatory schemes for individual modes

   of transportation and intermodal transportation efficiency.



   (4)   FINANCIAL ISSUES - The Commission shall examine existing

   impediments to the efficient financing of intermodal transportation

   improvements.  In carrying out such examination, the Commission shall

   examine (A) the most efficient use of existing sources of funds for

   connecting individual modes of transportation and for accommodating

   transfers between such modes, and (B) the use of innovative methods

   of financing for making such improvements.  The Commission shall

   examine current methods of public funding, the desirability of

   increased flexibility in the use of amounts in Federal transportation

   trust funds, and increased use of private sources of funding.



   (5)   NEW TECHNOLOGIES - The Commission shall study new technologies

   for improving intermodal transportation and problems associated with

   incorporating these new technologies in intermodal transportation.



                                   45











   (6)   DOCUMENTATION - The Commission shall study problems in

   documentation resulting from intermodal transfers of freight and make

   recommendations for achieving uniform, efficient, and simplified

   documentation.



   (7)   RESEARCH AND DEVELOPMENT The Commission shall identify the

   areas related to intermodal transportation for which continued

   research and development is needed after the report required by this

   section is completed, and propose an agenda for carrying out such

   research and development.



   (8)   PRODUCTIVITY - The Commission shall examine the relationship of

   intermodal transportation to transportation rates, transportation

   costs, and economic productivity.



(d)   MEMBERSHIP



   (1)   APPOINTMENT - The Commission shall be composed of 11 members*

   as follows:



         (A) 3 members appointed by the President



         (B) 2 members appointed by the Speaker of the House of

         Representatives



         (C)   2 members appointed by the minority leader of the House

         of Representatives



         (D)   2 members appointed by the majority leader of the Senate



         (E)   2 members appointed by the minority leader to the Senate.



      (2)   QUALIFICATIONS - Members appointed pursuant to paragraph (1)

      shall be appointed from among individuals interested in intermodal

      transportation policy, including representatives of Federal,

      State, and local governments, other public transportation authori-

      ties or agencies, and organizations representing transportation

      providers, shippers, labor, the financial community, and

      consumers.



      (3)   TERMS - Members shall be appointed for the life of the

      Commission.



      (4)   VACANCIES - A vacancy in the Commission shall be filled in

      the manner in which the original appointment was made.



      (5)   TRAVEL EXPENSES - Members shall serve without pay but shall

      receive travel expenses, including per them in lieu of subsis-

      tence, in accordance with sections 5702 and 5703 of title 5,

      United States Code.



      (6)   CHAIRMAN - The Chairman of the Commission shall be elected

      by the members.



(e)   STAFF - The Commission may appoint and fix the pay of such

personnel as it considers appropriate.



(f)   STAFF OF FEDERAL AGENCIES - Upon request of the Commission, the

head of any department or agency of the United States may detail, on a

reimbursable basis, any of the personnel of that department or agency to

the Commission to assist it in carrying out its duties under this

section.



(g)   ADMINISTRATIVE SUPPORT SERVICES - Upon the request of the

Commission, the Administrator of General Services shall provide to the

Commission, on a reimbursable basis, the administrative support services

necessary for the Commission to carry out its responsibilities under

this section.



(h)   OBTAINING OFFICIAL DATA - The Commission may secure directly from

any department or agency of the United States information (other than

information required by any statute of the United States to be kept

confidential by such department or agency) necessary for the Commission

to carry out its duties under this section.  Upon request of the Com-

mission, the head of that department or agency shall furnish such

nonconfidential information to the Commission.



(i)   REPORT AND PROPOSED NATIONAL INTERMODAL TRANSPORTATION PLAN - Not

later than September 30,1993, the Commission shall transmit to Congress

a final re-

___________________________



   *In January 1994, at the request of the Commission, and in

consultation with the Congress, Secretary Pe¤a nominated four additional

Commissioners.



                                   46











port on the results of the investigation and study conducted under this

section.* The report shall include recommendations of the Commission for

implementing the policy set forth in section 302(e) of title 49, United

States Code, including a proposed national intermodal transportation

plan and a proposed agenda for implementing the plan.



(j)   TERMINATION - The Commission shall terminate on the 180th day

following the date of transmittal of the report under subsection W. All

records and papers of the Commission shall thereupon be delivered to the

Administrator of General Services for deposit in the National Archives.

___________________________



*Congress provided funds for the Commission in the Department of

Transportation's FY 1994 appropriation, and the Congressional leadership

directed the Commission to complete its report by September 30, 1994.



                                   47











                                    D

           OUTREACH MEETINGS, SPEAKERS, AND WRITTEN TESTIMONY



                    San Diego, CA-February 21-22,1994



George Baima, Vice President of Sales, Central States Trucking



Gerald Birmingham, GE Railcar



Joni Casey, Intermodal Council, American Trucking Associations



Dick Coyle, Devine Intermodal



Dave DeBoer, Vice President, Greenbrier Intermodal



George Dopp, Roadway Express



Mike Fox, XTRA



Jim Hertwig, Vice President, Carolina Freight



Fred Huennekens, DDI Trucking



Tom Kanczuzewski, Consolidation Services, Inc.



John Kelly/ ITCO



Bill Lee, Executive Vice President, Rail Van MultiModal



Michael McCann, Vice President, McCann Piggyback



John McQuaid, President, Intermodal Association of North America



Keith Mattson, Bay Area Metropolitan Transportation Commission



Tom Polodaro, Market Manager, Roadway Express



Ted Price, President, Triton Transport Services, Inc.



Greg Steffler, Vice President, Rail Delivery





                       Washington, DC-March 4,1994



Christina Casgar, Senior Program Officer, Transportation Research Board



Christopher Hart, Deputy Administrator, National Highway Traffic Safety

Administration



Donald Itzkoff, Deputy Administrator, Federal Railroad Administration



Richard John, Director, Volpe National Transportation Systems Center



Robert Kramek, Commandant, U.S. Coast Guard



Robert Lewis, Director for Development & Logistics, St. Lawrence Seaway



Robert McManus, Associate Administrator for Grants Management, Federal

Transit Administration



Rolf Schmitt, Senior Transportation Specialist, Bureau of Transportation

Statistics



Rodney Slater, Administrator, Federal Highway Administration



Quinton Taylor, Acting Assistant Administrator for Airports, Federal

Aviation Administration



Joan Yirn, Deputy Administrator, Maritime Administration



                                   48











                    Chicago, IL -- March 10-11, 1994



Marietta Bailey, Director of Intermodal and Private Sector Program,

Chicago Area Transportation Study



Barry Bateman, Executive Director, Mitchell International Airport,

Milwaukee



Steve Bevilaqua, Senior Vice President, J.B. Hunt Transport, Inc.



Kirk Brown, Secretary, Illinois Department of Transportation



Don Cole Vice President, TTX Corp.



Dan Cushman, President, Triple Crown



Joe Dijohn, Executive Director, PACE



Jay Franke, Northwestern University



Aaron Gellman, Director, Northwestern University Transportation Center



Judith Gutzels, Assistant Commissioner, Chicago Department of Aviation



Larry Henry, Assistant Vice President of National Accounts, Alliance

Shippers



Alonzo Hill, Executive Vice President, Service Delivery, Chicago Transit

Authority



Harry Hirsch, Vice President, Service Delivery Planning, Chicago Transit

Authority



Bob Ingram, Vice President of Logistics, C.H. Robinson



Jim Martin, President, Belt Railway of Chicago



J. Patrick McAtte, Vice President, Metra



Tim Morgan, Director of Transportation, Chicagoland Chamber of Commerce



Mike Ryan, President, Miken Cartage



Ted Price, President, Triton Transport Services, Inc.



Fred Serpe, Executive Director, Illinois Transportation Association



Dan Smith, Senior Associate, Mercer Management Consulting



Susan Stauder, Director of Finance and Strategy, Bi-State Development

Agency (St. Louis Light Rail)



Andy Sze, President, Clipper Exxpress





                      Washington, DC-April 6-7,1994



Thomas Bolle, Senior Director for Governmental Affairs, Amtrak



Ross Capon, Executive Director, National Association of Railroad

Passengers



Joni Casey, Intermodal Council, American Trucking Associations



A.Ray Chamberlain, Former Executive Director, Colorado Department of

Transportation



Larry Dahms, Executive Director, Metropolitan Transportation Commission,

Oakland, CA



Al Eisenburg, Senior Director, Legislative Affairs, American Institute

of Architects



Al Engel, President & CEO, LS Transit Systems, Inc.



Jack Gilstrap, Executive Vice President, American Public Transit

Association



Jean Godwin, Vice President for Government Relations, American

Association of Port Authorities



George Hanthorn, Senior Vice President, Greyhound Lines, Inc.



Jean Lauver, U.S. Senate, Environment and Public Works Committee



Edith Page, Manager, Federal Programs, Transportation and

Infrastructure, Bechtel Group, Inc.



Susan Perry, Senior Vice President, America Bus Association



Alan Pisarski, Transportation Consultant



                                   49











                Washington, DC-April 6-7,1994 (Continued)



Michael Replogle, Co-Director, Transportation Project, Environmental

Defense Fund



P. Roger Slagle, Jr., U.S. House of Representatives, Committee on Public

Works and Transportation



Becky Weber, U.S. House of Representatives, Committee on Public Works

and Transportation





                      Atlanta, GA-April 19-20,1994



Alan Courtney, Director, Strategic Marketing, APL Land Transport

Services



James Covil, Principal, Wilbur Smith Associates



Morris Dillard, Senior Vice President for Operations, Atlanta Commission

for the Olympic Games



Gordon Fink, Staff, IVHS America



William Harris, Texas Transportation Institute Texas A&M University



Robert Levy, Vice President, Transdevelopment Corporation



David Messer, President, Centennial Express



Michael Meyer, Professor of Civil Engineering, Georgia Institute of

Technology



Mike O'Brien, Regional Eastern Manager, Interdom



Ted Prince, Vice President, "K" Line America, Inc.



Gary Ritter, Volpe National Transportation Systems Center



H.Randal Roark, Corporation for Olympic Development in Atlanta



Wayne Shackelford, Commissioner, Georgia Department of Transportation



Joel Stone, Director of Planning and Programming, Atlanta Regional

Commission



Joseph Sussman, Professor, Massachusetts Institute of Technology



John West, Task Force Chairman, Caltrans





                        Washington, DC-May 2,1994



Asaf Ashar, Ph.D., National Ports and Waterways Institute



John Bartosiewicz, General Manager, Fort Worth Transportation Authority



Hank Dittmar, Executive Director, Surface Transportation Policy Project



Thomas Downs, Chairman & President, National Rail Passenger Corporation

(Amtrak)



Lee Lane, Vice President, Association of American Railroads



John McQuaid, President, Intermodal Association of North America GANA)



Bob Matthews, President, Railway Progress Institute



Richard Mudge, President, Apogee Research, Inc.



Roland Ouellette, President & CEO, Eno Transportation Foundation



Federico Pe¤a, Secretary of Transportation, U.S. Department of

Transportation



Ron Reber, Manager, Civil Business Development, Bell Helicopter



Richard Salmon, Jr., Project Manager, Amtrak



John Tower, Director, Advanced Technology Trak Systems, Inc.



M.John Vickerman, CEO & President, Vickerman, Zachary & Miller



                                   50











                     New Orleans, LA-May 10-11, 1994



Charles Apffel, Deputy Director, Louisiana State University, Ports &

Waterways



Walter Brooks, Planning Director, New Orleans Regional Planning

Commission



George Duffy, President, Navios Shipping



Jim Fox, Assistant Vice President, American Waterways Operators



Patrick Galwey, Director Planning & Engineering, Port of New Orleans



Carl Horn, Senior Vice President of Customer Acquisition, Lykes Lines



Steve Jaeger, Director of Marketing, Port of New Orleans



Dr.  J. Jayawardana, Assistant Professor, Louisiana State University,

Ports & Waterways Institute



Charles Kirkland, Transportation Planner, City of New Orleans



Kenneth Storms, Chief Administrative Officer, City of Meridian, MS



Ken Wells, Vice President, American Waterways Operators



Paul Zimmerman, Intermodal Rail Coordinator, Port of New Orleans





                         Laredo, TX-May 12,1994



Maria Castanon, Trade Commissioner of Mexico



Armando Garcia, Assistant Director, U.S. Customs



Joe Garza, Officer in Charge, U.S. Border Patrol



Dr.  James Giermanski, Division of International Trade, Texas A&M

University



Sam Goodhope, Special Council for Environment & Transportation, Texas

Attorney General's Office



Clemente Gutierrez, Supervisor, USDA



Jorge Haynes, Senior Vice President, International Bank of Commerce



Ramon Juarez, Port Director, Immigration & Naturalization Services



Frank Leach, Executive Director, Laredo Development Foundation



Griesalda Lopez, Planning Director, Laredo MPO



Richard Marroquin, Officer in Charge, Laredo Border Patrol



Hector Rodriguez, Director of International Customer Service, Union

Pacific Railroad



Luis Saenz, Legislative Assistant for Congressman Henry Bonilla



Frank Vida, Vice President, U.S. Customhouse Brokers Association



Brian Vogel, Assistant Vice President of Policy and Special Programs,

Association of American Railroads





                        Boston, MA-May 24-25,1994



Andreas Aeppli, President, A&L Associates, Inc.



Daniel Beagan, Director of Planning, Massachusetts Executive Office of

Transportation



Robert Bentley, President, Massachusetts Central & Maine Coast Railroads



Steve Burrington, Senior Attorney, Conservation Law Foundation



                                   51











                  Boston, MA-May 24-25,1994 (Continued)



Dennis Coffey, Massachusetts Director of Railroad Policy & Property

Management



Marc Cutler, Project Consultant, Cambridge Systematics



Heidi Emmins, Providence and Worcester Railroad



Lance Grenzeback, Senior Vice President of Transportation, Cambridge

Systematics



Robert Grossman, Chairman & CEO, St. Lawrence & Atlantic Railroad



Thomas Howard, Regional Manager, Georgia Pacific Corporation



Steve Karol, House Chairman, Massachusetts Joint Committee on

Transportation



Shaun Keefe, Vice President, Romar Transportation Systems, Inc.



Kevin Kiley, Massachusetts Motor Transportation Association



Joseph Kott, Council of Governments, Portland, Maine



Mary Fay LaFaver, Director, Economic Development & Tourism, State of

Maine



Steve Leven, DRI/McGraw Hill



Jane Lincoln, Deputy Commissioner, Maine Department of Transportation



Alan Marks, The Hub Group



Carl Martland, Massachusetts Institute of Technology



Paul D. Merrill, President, Merrill Industries, Inc.



Colin Pease, Executive Vice President, Springfield Terminals



Charles Repeta, Project Manager, New England Transportation Initiative



Rick Sousa, ICI Terminal



Michael Swanson, Deputy Secretary, Massachusetts Executive Office of

Transportation and Construction



Joan Yim, Deputy Administrator, Maritime Administration





                    New York, NY-May 31 -June 1, 1994



Don Borrelli, Superintendent of Intermodal Operations, Conrail



Stanley Brezenoff, Executive Director, Port Authority of New York & New

Jersey



John Claffey, Director, Transportation Planning Commission, Delaware

Valley Regional Planning Commission



Ted Dahlburg, Senior Transportation Planner, Delaware Valley Regional

Planning Commission



Gerald Donaldson, Co-Chair, Citizens for Reliable and Safe Highways



Michael Franchese, Regional Director, New York State Department of

Transportation



William Hamlin, Vice President/General

Manager, SeaLand



Al Harf, Assistant Executive Director of Planning and Budget, New Jersey

Transit Corporation



Tony Hatch, Research Analyst, PaineWebber, Inc.



David Judd, Transcom



Janet Oakley, Director of Transportation, National Association of

Regional Councils



Ted Olcott, Project Manager, NJ Alliance for Action



Edward O'Sullivan, Manager, Airport Access Program, Port Authority of

New York & New Jersey



John Poorman, Staff Director, Capital District Transportation Commission

(Albany, NY)



                                   52











              New York, NY-May 31 -June 1, 1994 (Continued)



James Roach, Bureau of Transportation Planning, Michigan Department of

Transportation



Richard Roberts, Director of Transportation Planning, Port Authority of

New York & New Jersey



Raymond Ruggieri, Director, New York Metropolitan Transportation Council



Paul Schlesinger, Vice President of Research Department, Donaldson,

Lufkin & Jenrette



Larry Spozi, Manager of Automated Cargo Expediting System, Port

Authority of New York & New Jersey



Michael Strasser, Assistant Commissioner, New York City Department of

Transportation



James Tripp, Chairman, Tri-State Transportation Campaign



Joel Weiner, Executive Director, New Jersey Transportation Planning

Authority



Bill Wheeler, Director of Planning, Metropolitan Transportation

Authority





                        Cambridge, MA-June 7,1994



Aviva Brecher, Office of Strategic Planning & Analysis, Volpe National

Transportation Systems Center



Dan Breen, Systems Engineering Officer, Mass Bay Transportation

Authority



Ron Corsetti, Area Coordinator, Navigation Technologies



Tom Ellen, Transportation Consultant



Tom Engle, General Manager, New York Air Brake Co.



Dan Fleishman, Director, Transit Policy Analysis, MultiSystems



Aaron Gellman, Northwestern University Transportation Center



Karla Karash, President, Walk Boston



Adam Kopp, Research Analyst, Navigation Technologies



Paul Kromberg, Senior Assisting Manager, Research & Test, Association of

American Railroads



Tom Levine, Director of Rail Marketing, Arntech



William Levison, Division Scientist, Bolt, Beranek & Newman, Inc.



William Lyons, Operation Research Analyst, Volpe National Transportation

Systems Center



Peter Metz, Deputy Director, Massachusetts Institute of Technology,

Center for Transportation Studies



Rabi Mishalani, Research Associate, Massachusetts Institute of

Technology



Bengt Muten, President, Muten & Associates, Inc.



Dave Nelson, Project Manager, Planning Department, Mass Bay

Transportation Authority



Bahar Norris, Senior Economist, Volpe National Transportation Systems

Center



Gary Ritter, IVHS Program Coordinator, Volpe National Transportation

Systems Center



Daniel Roth, Research Assistant, Massachusetts Institute of Technology



Carl Seiberlich, Consultant, American President Lines



Joseph Silien, Director, Business Development, ABB Traction, Inc.



Bruce Spear, Volpe National Transportation Systems Center



                                   53











                  Cambridge, MA-June 7,1994 (Continued)



Joseph Sussman, JR East Professor, Department of Civil & Environment

Engineering, Massachusetts Institute of Technology



Veronica Thieback, Staff Attorney, Conservation Law Foundation



M. John Vickerman, CEO & President, Vickerman, Zachary & Miller



Nigel Wilson, Professor, Massachusetts Institute of Technology



John Zavgren, Principal Investigator, Wireless Data, GTE Laboratories





                      Los Angeles--June 20-21,1994



Art Almeida, Former President of Local 13, ILWU



Skip Baldwin, Manager, Wilmington Homeowners Association



Linda Bohlinger, Deputy Executive Officer for Capital Planning, Los

Angeles Metropolitan Transportation Authority (LAMTA)



Ken Churchill, Public Affairs Manager for the Pacific Region, United

Parcel Service (UPS)



Pat Conroy, Office of Advanced Transportation Management & Info.

(Caltrans)



John Cox, Councilman, Newport Beach



Ginger Gherardi, Executive Director, Ventura County Transportation

Commission and National President of the Women's Transportation Seminar

(WTS)



Thomas Griebel, Assistant Executive Director, Multimodal Transportation,

Texas Department of Transportation



Peter Hathaway, Chief Deputy Director, California Transportation

Commission



Gil Hicks, Executive Director, Alameda Corridor Transportation Authority



Ron Kilcoyne, Transportation Manager, City of Santa Clarita, CA



Geraldine Knatz, Director of Planning, Port of Long Beach



Wes McDaniel, Executive Director, San Bernardino Association of

Governments



Representative Norman Mineta, U.S. House of Representatives



Ernesto Nevarez, Tax Specialist



Jim Preusch, Chief Financial Officer, Port of Los Angeles



Larry Rhinehart, Mayor, City of Montclair, CA



Mitchell Rouse, CEO, Supershuttle



Walter Siembab, Director, Telecommunications for Clean Air



Jim Sims, President, Commuter Transportation Services, Inc.



Doug Smith, System Manager of Marketing, Overseas International, CN

Intermodal



Richard Stanger, Executive Director, Southern CA Regional Rail Authority



Ted Tanner, Vice President of Development, Catellus



Rob Vogel, Senior Project Manager, Catellus



Dr.  Barry Wallerstein, Deputy Executive Officer, South Coast Air

Quality Management District



Frank White, Executive Director, LAMTA



Judy Wilson, Executive Officer of Planning & Programming, LAMTA



Ed Woolley, Secretary, Institute of International Container Lessors



Judy Wright, Councilman, City of Claremont, CA



                                   54











                       Washington, DC-June 28,1994



Robert Molossky, Amalgamated Transit Union



Pat Morris, Director of Legislative Affairs, Marine Engineers Beneficial

Association



Edward Wytkind, Executive Director, Transportation Trades Department,

AFL-CIO





                        Chicago, IL-July 13,1994



Robert Nardelli, President & CEO, GE Transportation





                        Seattle, WA-July 14,1994



Amy Arnis, Policy Development Branch Manager, Washington Department of

Transportation



Tim Banks, General Manager, Norton Lilly International, Inc.



Ron Borowski, Project Manager, Seattle Engineering Department



Paul Chilcote, Director of Planning, Budget & Environment, Port of

Tacoma



Patricia Davis, President, Board of Commissioners, Port of Seattle



Tom Decker, Director of Government Relations, Port of Portland



Mike Fletcher, Commissioner, Port of Tacoma



Dave Hatzenbubler, Assistant Vice President, Burlington Northern

Railroad



Charles Howard, Planning Office Manager, Washington Department of

Transportation



Ron Judd, Executive Secretary, King County Labor Council



Paul Kaftanski, Project Manager, City of Everett



Terry McCarthy, Deputy Director, Washington State Department of

Transportation



Mary McCumber, Executive Director, Puget Sound Regional Council



Gil Mallery, Rail Branch Manager, Washington State Department of

Transportation



A. Daniel O'Neal, President & Chairman, Tolan O'Neal Transportation &

Logistics



Preston Schiller, Co-Coordinator of ALT-TRANS



Burr Stewart, Director of Aviation Planning, SEA-TAC International



John Terpstra, Executive Director, Port of Tacoma





                      Chicago, IL -- August 1, 1994



Aaron Gellman, Northwestern University Transportation Center



                                   55











                       Butte, MT -- August 24,1994



William Brodsky, President, Montana Rail Link



Senator Max Baucus, U.S. Senate



Gil Carmichael, Vice Chairman, MK Rail Corporation



JoAnn Cate, Executive Director, Whitefish Chamber of Commerce



Wesley Choc, President, AAA Montana



Matthew Cohn, Travel Director, Montana Department of Commerce



Mark Cole, Director, Port of Shelby



Bill Fogarty, Director of Marketing, Port of Montana



Pat Keim, Director of Government Affairs, Burlington Northern Railroad



Richard King, Executive Director, Bear Paw Development



Jack Lynch, Chief Executive, Butte/Silver Bow Region



George Paul, Executive Director, Montana Farmers Union



John Rabenberg, Chairman of the Governor's Task Force on Essential Air

Service



Sandy Straehl, Program & Policy Analyst, Transportation Planning,

Montana Department of Transportation



Larry Swanson, Director of Economic Analysis, University of Montana



Deanna Thielman, Program Manager, Eagle Transit



Jerry Thomas, Executive Director, Montana Trade Authority



Moe Wosepka, Director, Rocky Mountain Trade Corridor





                            Written Testimony



Jeff Carpenter

Seec, Inc., Marietta, PA

"Collapsible Container"



Michael Collins

President WinterSports, Inc., Whitefish, MT

"Amtrak Service in Northeast Montana"



Tom Decker

Manager, Federal Government Relations

Port of Portland, Portland, OR

"ISTEA, Freight and Intermodal Planning"





James N. Denn

Commissioner, Minnesota Department of Transportation St. Paul, MN

"Advocating a Proactive Role for Government to Jointly Develop with the

Private Sector an Intermodal Transportation System" and "Intermodal

Activities"



Ted Falgout

Executive Director, Port Fourchon Galliana, LA

"ISTEA"



                                   56











Francis B. Francois

Executive Director, American Association of State and Highway

Transportation Officials, Washington, DC

"Status of Intermodal Transportation"



John Glover

Director of Strategic and Policy Planning, Port of Oakland, Oakland, CA

"Freight Rail Under ISTEA"



Michael Groomer

Assistant City Manager of the City of Fort Worth, Fort Worth, TX

"Fort Worth Alliance Airport and Intermodalism"



Joseph Lema

Transportation Coal Association, Washington, DC

"The Coal Industry's Interest with Regard to Intermodal Transport"



Joseph Leo

Director of Americas Global Equipment Management, New Jersey City, NJ

"Application of the Grey Box Concept to USA Intermodal Operations"



Carmen Lunetta

Director, Port of Miami, Miami, FL

"Intermodal Issues and Concerns for the State of Florida"



David Mosena

Commissioner, Department of Aviation, City of Chicago, Chicago, IL

"Aviation"



Jane Lincoln

Deputy Commissioner, Maine Department of Transportation, Augusta, ME

"Treating Sealed Ongoing Containers"



Kenneth Maki

President, Midwest Timber, Inc., Hayward, WI

"Problems Shipping by Rail"



Robert E. Martinez

Secretary of Transportation, Commonwealth of Virginia, Richmond, VA

"Intermodal Provisions of ISTEA"



Salvador Saldana

Truck Owner/Operator, Van Nuys, CA

"Problems with Trucking"



Brian Shorten

Executive Director, Metropolitan Council of Governments, The Fargo-

Moorhead Metropolitan Council of Governments in North Dakota, Fargo, ND

"Questions Regarding the National Transportation System"



Brian Smith

Chief, Division of Transportation Planning, California Department of

Transportation, Sacramento, CA

"Intermodal Transportation"



Ben Watts

Secretary of Transportation, Florida Department of Transportation,

Tallahassee, FL

"Intermodal Issues and Concerns for the State of Florida"



Sheryl Weber

Manager, Corporate Public Affairs, United Parcel Services Co.,

Washington, DC

"Intermodalism Comments"



                                   57











Joel Weiner

Executive Director, North Jersey Transportation Planning Authority,

Newark, NJ

"Helping States and MPOs Meet Intermodal Integration"



JoAnn Wysocki

President, Wilmington Home Owners Motor and Rail Traffic in CA,

Wilmington, CA

"The Impact of Rail and Motor Traffic in a Community"



                                   58











                                    E

                          COMMISSIONED STUDIES



A&L Associates.  An Assessment Of Technologies and Research in

Intermodal Transportation, Final Report.  June 1994.



Aldaron, Inc.  Systemic Barriers to Intermodalism.  August 1994.



Apogee Research, Inc.  Federal Transportation Finance: Implications for

Intermodal Investments.  Bethesda, MD. August 12,1994.



Mercer Management Consulting, Inc., Government Influences on

Intermodalism: Observations and Examples.  San Francisco, CA.  July

1994.



                                   59











The Commission wishes to thank the following organizations for providing

photographs for this report.



    Page



       5    Massachusetts Highway Department, Central Artery Project

       7    Amtrak

      13    The Atchison, Topeka and Santa Fe Railway Company

      17    American Public Transit Association

      23    California Department of Transportation

      24    Association of American Railroads

      26    American Public Transit Association

      30    The Achison, Topeka and Santa Fe Railway Company

      34    Amtrak

      39    Association of American Railroads



                          Editorial Consultant

                         Joseph Foote Associates



                          Design and Production

                            Norcott & Company



                              Proofreading

                              Amy M. Brooks



                                   60




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