OCTA - Goods Movement


		Goods Movement

Goods Movement Brochure/Background/Documents

What is Goods Movement?

Freight or goods movement is a term used to denote goods or produce transported by ship, plane, train or truck. Goods movement is the fastest growing segment of our region’s transportation sector. As our region continues to grow, it has become a key urban transportation issue. While public attention continues to concentrate and focus on how to move people from one place to another, goods movement and the mitigation of associated impacts to local communities has become increasingly more important in that equation, particularly with respect to traffic and train congestion along local corridors, streets and railways.

The following Southern California counties serve as a major gateway for our nation's trade:

Ventura
Los Angeles
Orange
Riverside
San Bernardino
Imperial
San Diego

Thirty-three percent of all international container cargo imported into the United States passes through our region’s ports. According to ports’ statistics, the San Pedro Bay ports of Los Angeles and Long Beach moved 15.7 million 20-foot equivalent units (TEUs – a standard measure of shipping units one sees on rail cars and trucks) in 2006. Freight volumes at the ports are expected to double within 20 years. In addition, the over $200 billion worth of goods transiting the ports generates over $15 billion in state and local taxes and provides an estimated 700,000 jobs in the logistics industry (e.g., trucking, railroads, and warehousing). While transportation and elected officials see the need for an expansion of our trade infrastructure in order to maintain our region’s economic growth and competitiveness, the mitigation of the noise traffic and health effects on communities along and in the proximity to freight movement corridors has also become an essential issue as part of goods movement policy discussions.

Orange County: A Bridge Between LA County and the Inland Empire

Orange County has a significant level of goods movement traffic because it serves as a bridge between Los Angeles County and the Inland Empire. Given the region’s increasing economic growth, freight movement activity within the County is expected to increase along the rail lines and freeways that traverse it. Currently, the Burlington Northern Santa Fe (BNSF) Railway mainline between Los Angeles and San Bernardino counties carries an estimated 70 daily freight trains through northern Orange County through parts of the cities of Yorba Linda, Anaheim, Buena Park, Fullerton, and Placentia. By 2025, this line will carry an estimated 125 daily freight trains. Along the Los Angeles/San Diego rail corridor (LOSSAN) which runs north/south through the county, daily freight train traffic is expected to increase from six daily trains to 12 trains by 2025.

Approximately $666 million is needed to grade separate 11 crossings in North Orange County.

Given the County’s well-developed freeway system, goods movement-related truck volumes will also continue to grow. The Santa Ana Freeway (Interstate 5), Riverside Freeway (State Route 91), Orange Freeway (State Route 57), and Costa Mesa Freeway (State Route 55) currently can achieve average daily volumes between 15,000 and 22,000 trucks. Priority highway projects on high volume truck routes are estimated to cost $224 million:

SR-91 (SR-55 connector to Tustin Ave. interchange) - $95 million
SR-91 (SR-57 to I-5) - $72 million
SR-57 Truck Climbing Lane - $157 million

Actions

OCTA has adopted a Goods Movement Policy.
Southern California Counties are developing a Multi-County Good Movement Action Plan.
Proposition 1B provides $3 Billion of funding to address goods movement issues.
Legislation is proposed to fund mitigations through a "Container Fee" program.

OCTA Goods Movement Policy

Identify and support projects that link mitigation of community impacts and expansion of transportation system capacity.
Work with national, state and regional partners to create a stable, dedicated and secure funding source for goods movement projects that link mitigation to expansion of transportation system capacity.
Work with the ports, shippers and others, who gain economic benefit from goods movement, so that mitigation costs associated with capacity expansion projects are shared by the goods movement industry.
Develop and implement communication, legislative and funding solutions in partnership with congressional and state delegations, as well as regional and local elected officials and stakeholders.

Proposition 1B

Trade Corridor Improvement Fund $2.0 billion
- Intended to address state’s most urgent good movement needs
- Guiding legislation is pending
- Numerous stakeholders
Trade Corridor Air Quality Improvements $1.0 billion
- Funds strategies that reduce emissions from activities related to movement of goods
- Criteria and guidelines are pending

Container Fee Legislation

SB 974

SB 974 (Lowenthal, D-Long Beach) proposes to levy a $30 per container user fee on each 20-foot equivalent unit (TEU) moving through the Ports of Los Angeles, Long Beach, and Oakland.

Revenues

Revenue generated must fund projects in the region where the fee was collected.
Southern California region defined as Los Angeles, Orange, Riverside, and San Bernardino counties.
50% of revenue generated will fund projects that improve the movement of goods.
50% of revenue generated will fund projects which mitigate air pollution caused by the movement of all cargo.
The collection of fees will discontinue upon the completion of all listed projects.

Project Selection

Requires the California Transportation Commission to adopt a project list by September 1, 2008 for congestion relief projects.
California Air Resources Board responsible for environmental mitigation project selection, also by September 1, 2008.
Eligible projects in SB 974 shall be given priority if they are determined to measurably reduce air pollution within the region while addressing the overall efficiency of container cargo movement.
Eligible projects may include, but not be limited to: rail grade separation projects in Los Angeles, Orange, Riverside, and San Bernardino Counties, improvements to ondock rail infrastructure at the Ports of Los Angeles and Long Beach, and rail capacity improvements within the abovementioned Counties.
Competitive project selection process.
If specified air quality emissions goals are not met, funding for future projects are withheld until the goals are met.

SB 974 (Lowenthal, D-Long Beach) proposes to levy a $30 per container user fee on each 20-foot equivalent unit (TEU) moving through the Ports of Los Angeles, Long Beach, and Oakland.

Revenues

Revenue generated must fund projects in the region where the fee was collected.
Southern California region defined as Los Angeles, Orange, Riverside, and San Bernardino counties.
50% of revenue generated will fund projects that improve the movement of goods.
50% of revenue generated will fund projects which mitigate air pollution caused by the movement of all cargo.
The collection of fees will discontinue upon the completion of all listed projects.

Project Selection

Requires the California Transportation Commission to adopt a project list by September 1, 2008 for congestion relief projects.
California Air Resources Board responsible for environmental mitigation project selection, also by September 1, 2008.
Eligible projects in SB 974 shall be given priority if they are determined to measurably reduce air pollution within the region while addressing the overall efficiency of container cargo movement.
Eligible projects may include, but not be limited to: rail grade separation projects in Los Angeles, Orange, Riverside, and San Bernardino Counties, improvements to ondock rail infrastructure at the Ports of Los Angeles and Long Beach, and rail capacity improvements within the abovementioned Counties.
Competitive project selection process.
If specified air quality emissions goals are not met, funding for future projects are withheld until the goals are met.

California Transportation Commission Timetable

Trade Corridors Improvement Fund
- Work Group Meetings - ongoing
- Spring 2007 – develop policy framework
- Fall 2007 – develop criteria and guidelines
- Winter 2007-2008 – project nominations and review
- March 1, 2008 – Program Adoption
Trade Corridor Air Quality Improvements
- Draft 2007/08 program proposal under development