Enhancing Intermodal Service through Public-Private Partnerships in Texas

The increasing levels of truck traffic on the State's highway system are creating an array of issues for the Texas Department of Transportation ranging from highway safety, congestion, and air quality, to the need for accelerated maintenance and capacity expansion. With trade in Texas projected to continue to increase, the pressure to explore alternatives to highway-borne freight is building. At the same time, railroads are facing challenges of their own. As a capital- and labor-intensive industry, railroads are struggling to earn the cost of capital to maintain and operate their extensive networks. As a mode that excels at long-haul intercity freight, but loses to trucking in shorter-haul movements, railroads are in need of services and capital to help gain back lost market share and compete in short-haul markets. The opportunity for establishing a win-win scenario is apparent: by improving the efficiency of intermodal rail service through targeted public-private partnerships, rail transportation may capture a larger market share of intercity freight in Texas and allow important public benefits to accrue - thereby justifying the investment. This report provides an important step in synchronizing public and private transportation planning and financing processes that mostly operate in isolation from one another to the growing disadvantage of each. A truly exciting finding is that both the public sector and the railroads are increasingly receptive to the idea of collaboration and are searching for mutually beneficial solutions to transportation problems.