Office of Operations Freight Management and Operations

Measuring the Impacts of Freight Transportation Improvements on the Economy and Competitiveness

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Contact Information: Freight Feedbackat FreightFeedback@dot.gov

United States Department of Transportation Federal Highway Administration

Publication #: FHWA-HOP-15-034

September 2015


Table of Contents

[ Notice and Quality Assurance Statement ] [ Technical Report Documentation Page ] [ Acronyms and Abbreviations ]

1. INTRODUCTION
1.1. How to Use this Document
2. FREIGHT TRANSPORTATION AND COMPETITIVENESS
2.1. Logistics and the Efficiency of the Supply Chain
2.2. Mode Choice
2.3. Typology of Economic Impacts
2.3.1. Linkage of Performance Measures to Economic Impacts
3. SELECTING THE RIGHT ANALYTICAL TOOL
3.1. What are the Goals of the Analysis?
3.1.1. Project or Policy Type
3.1.2. Freight Modes Considered
3.1.3. Time Horizon
3.1.4. Geographic Scope
3.1.5. Outcomes Measured
3.1.6. Precision Required
3.2. What Data, Tools, and Resources are Available?
3.2.1. Data Availability
3.2.2. Applicability of Shortcuts and Rules of Thumb
3.2.3. Modeling Tools
3.2.4. Resources: Budget and Staff Skills
4. TOOLS AND TECHNIQUES
4.1. Benefit Cost Analysis
4.1.1. Relationship of Travel Demand Modeling to Benefit Cost Analyses
4.1.2. Purpose of Benefit Cost Analysis
4.1.3. Components of Benefit Cost Analysis
4.1.4. Benefit Cost Analysis Tools
4.1.5. Why Use Benefit Cost Analysis?
4.1.6. Useful Resources
4.2. Economic Impact Analysis
4.2.1. Purpose of Economic Impact Analysis
4.2.2. Components of Economic Impact Analysis
4.2.3. Incorporating Transportation System Improvements into Economic Impact Analyses
4.2.4. Economic Impact Analysis Tools
4.2.5. Why Use Economic Impact Analyses?
4.2.6. Useful Resources
4.3. Dynamic Modeling Tools to Measure Productivity Impacts
4.3.1. Overview
4.3.2. REMI and TREDIS
4.3.3. Concluding Observations on REMI and TREDIS
4.4. Simplified Methods
4.4.1. Southeast Michigan Council of Government's Simplified Economic Analysis Tool
4.4.2. Minnesota Department of Transportation's Guidance on Benefit Cost Analyses for Transportation Projects
4.4.3. Rules of Thumb for Economic Impact Analyses
4.4.4. Transportation Project Impact Case Studies System
4.4.5. Supply Chain Impacts
5. SUMMARY OF ANALYSIS TOOLS
APPENDIX A. RESOURCES FOR PRACTITIONERS
APPENDIX B. RELEVANT ECONOMIC LITERATURE
APPENDIX C. REFERENCES
APPENDIX D. RESEARCH AGENDA



List of Figures

Figure 1 Diagram. Freight demand modeling approaches to support benefit cost analysis
Figure 2 Screenshot. Output screen from FHWA's Strategic Transportation Evaluation and Assessment Model Benefit Cost Analysis Tool
Figure 3 Diagram. Representing the Benefits of Travel Time Improvements to Industry
Figure 4 Screenshot. The SEMCOG Simplified Economic Analysis Tool
Figure 5 Diagram. Impacts of Efficient Transportation Infrastructure Investment

List of Tables

Table 1 Types of Trucking Services Available to Shippers
Table 2 Typical Public Sector Highway Performance Metrics
Table 3 Key Linkages between Performance Measures and Economic Factors
Table 4 Benefit-Cost Analysis Tools
Table 5 Economic Impact Analysis Tools
Table 6 Recommended Standard Values for Use in B/C Analysis in SFY2014
Table 7 Rough "First Cut" Estimate of Supply Chain Benefit from a 10 Percent Transportation Improvement
Table 8 Significant Weaknesses
Table 9 Comparison of Economic Impact Models RIMS II and IMPLAN
Table 10 Summary of Simplified Productivity Benefit Estimation Tools
Table 11 Comparison of Productivity Models REMI and TREDIS
Table 12 First and Second Order Effects of Freight Infrastructure Investment

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