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Multi-State Freight Transportation Organizations 4-1 4.0 Developing a Successful Multi-State Freight Organization 4.1 CONCLUSIONS Each of the three models has significant strengths and weaknesses; however, the research findings suggest that creating multi-state freight organizations through a federally chartered organization might be the most practical approach to achieving organizations that can develop and implement long-term freight transportation investment plans. This approach would require the following: ⢠Multi-state freight policy guidance. As part of additional specific legislation providing for institutions that have the responsibility of developing, constructing, operating and otherwise enabling multi-state freight transportation facilities, federal legislation could establish national freight policy that provides a framework and general goals for multi-state freight transportation activities. While such a policy may not create mandatory requirements, it would provide important guidance and inform the actions that might be taken by federally chartered corporations or other multi-state freight entities. ⢠Congressional action to create a federally chartered, national freight transportation corporation and subsidiary, multi-state freight transportation corporations or entities. Federal legislation could charter a national freight transportation corporation and enable the formation over time of subsidiary multi-state corporations or similar entities. The national umbrella organization could operate alongside and through the subsidiary multi-state entities, which could be organized around multi-state freightsheds or major freight corridors. The two-tier structure could ensure a national perspective but enable states to form regional entities where consensus emerges among states on the need to coordinate freight planning, investment, and operations along a specific freight corridor or across a defined region. The facilities and services could vary from region to region depending on the transportation needs of a particular region or freight transportation mode. ⢠Defined roles and responsibilities for multi-state freight organizations. The legislation could define the roles and responsibilities of multi-state freight organizations to include consideration and implementation of multi- state freight transportation plans and programs covering policy coordination,
Multi-State Freight Transportation Organizations 4-2 planning, capital investment, operations, research, and education across jurisdictional lines. To allow for the evolution of the organizations as freight needs change over time, the roles and responsibilities of the national corporation might be drawn somewhat broadly, but the permitted roles and responsibilities of the regional corporations, where most of the functional work would take place, could be attuned to local and regional needs and practices. It is anticipated that the plans and programs would serve the needs to the constituent states, metropolitan areas, and private sector freight transportation providers and be paid for on a fee-for-services basis. The services would be reimbursed in a manner allowing for equitable cost sharing that reflects the relative benefits, costs, and risks accruing to each of the involved jurisdictions and private providers. The roles, responsibilities, and scope of both the national and regional entities would be likely to change over time as the freight transportation system evolves. Since the national and regional entities would only provide services for which they were reimbursed, the services provided would reflect current and future needs consistent with state and local plans and the operations of private transportation providers. ⢠Federal, state, and private sector participation in the governance of corporations. The national and regional entities could be governed by boards composed of representatives from both public agencies and the private sector. The function of these boards would be to develop services and operational capabilities that supplement and integrate those already provided by governmental transportation programs and private transportation providers. Federal legislation establishing the freight transportation corporations could provide for balanced participation by the federal government, state governments, and private sector freight transportation interests. A federal role and participation in the national corporation would be critical to address national capacity and connectivity, but strong state and private sector representation in the regional multi-state entities would be necessary to ensure commitment to and utilization of these organizations. ⢠Professional staff within each of the regional corporations, and a small national staff to support policy coordination, research, and education. Professional staffing of the national and regional corporations would be necessary to provide continuity and ensure the value and quality of services provided to the member jurisdictions. The focus would be on staffing the regional freight corporations, with minimal staffing of the national corporation sufficient to provide coordination and shared access to research and educational work. ⢠Ability to accept and pool funding and fees for service from an array of federal, state and private sources. Sustaining a multi-state freight
Multi-State Freight Transportation Organizations 4-3 organization would require a broad base of funding since it would be providing services primarily to states, metropolitan areas, and the U.S. DOT. It is critical that the organizations have the ability to pool funds with other states and other entities to use for a common purpose. The key problem identified in this report was the difficulty of funding and operating multi-state freight institutions across state lines in multiple jurisdictions. While enacting legislation that creates new, federally chartered entities might take considerable time and effort, itâs possible this could be completed in a far timelier manner than would likely be needed to adopt a system of regional, multi-state interstate compacts or an entirely new federal program, together with a new federal agency or project office. As noted in the introduction, creating organizations that can address freight movement along key corridors without impeding growth is paramount to maintaining the economic well-being of the nation and the nationâs position in the global economy. The approach of creating those organizations through a federally chartered corporation operating through state-driven regional freight corporations could help ensure public sector planning and investment at a geographic scale that matches current economic regions and freight carrier markets. 4.2 RESEARCH RECOMMENDATIONS This study has looked very generally at approaches to creating multi-state freight organizations. A logical next step would be to develop case studies, extrapolating from existing organizations, illustrating how the regional organizations as envisioned would operate. How many organizations would form over the next decade? Into what planning, capital investment, and operations activities would they enter? What would their organization and bylaws look like? What level of funding would be needed to sustain them? What would draft legislation to enable the organization contain?
