California State Rail Plan 2007-08 to 2017-18

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2007-08 – 2017-18 California State Rail Planprimarily in the Inland Empire and Greater Los Angeles areas, and also in theCentral Valley and San Francisco Bay Area regions.The big change has been in the efficiency of these warehousing operations, interms of reduced inventory time, improved management and operations, andimproved connections within the freight transportation network. The past decadehas seen substantial growth in the development of very large warehousing centerson the urban periphery, far enough out that land is less expensive, yet near enoughand well-served enough by highway and rail to effectively serve major populationcenters. For example, major warehousing clusters have emerged in central NewJersey (to serve the New York/North Jersey market) and in theHarrisburg/Lancaster area (which is well-positioned to serve New York,Philadelphia, Wilmington, Baltimore, and Washington).Similar warehousing clusters have developed in the Greater Stockton/Tracy areaand are serving such facilities as the New United Motor Manufacturing, Inc(NUMMI). NUMMI is the pioneering joint venture of General MotorsCorporation and Toyota Motor Corporation. Established in Fremont, California,in 1984, NUMMI helped change the automobile industry by introducing theToyota Production System and a teamwork-based working environment to theUnited States. NUUMI has made a recent business decision to have all of theirmanufacturing suppliers move to the Stockton/Tracy are so that they may be betterserved. This includes partners from the U. S. Midwest and also from Japan.Talks are currently underway to create rail served facilities in the Stockton/Tracyareas for NUUMI and its partners. Warehousing clusters have occurred and willcontinue to occur throughout various strategic locations in the State and will needfreight rail servicesE-commerce benefits pull systems because it allows customer orders to becommunicated directly to distributors, manufacturers, and suppliers. Fulfillmentof e-commerce and mail orders depends on door-to-door transportation of parceland express packages directly to the customer, increasing demand for smallshipments that would otherwise get picked up at a store by the customer. Businessuse of express delivery services such as Federal Express and UPS, which place apremium on reliability, speed and visibility, has also contributed to the explosivegrowth of package and parcel traffic. Federal Express and UPS maintain vastwarehouse and distribution centers supporting their operations. They rely heavilyon air and truck, although UPS also uses intermodal rail.Pull systems are tremendously efficient. They can produce what the customerwants and deliver it when the customer wants. By reducing the time betweenmanufacture and sale, businesses can be more certain about how much they shouldproduce and the cost of carrying extra inventory of expensive parts and products.However, pull logistics systems place tremendous demands on the transportationsystem. Shippers operating manufacture-to-order and time-definite-delivery226
Chapter XVI – Major Freight Issuessystems must have reliable, timely, and visible door-to-door freight transportation.Shippers increasingly send frequent, smaller shipments rather than fewer largerones, multiplying the opportunity for something to go wrong. An accident,congestion, labor disputes, storms – even unanticipated spikes in supply anddemand – can unravel these tightly strung systems. Overall logistics systemscapabilities are growing simultaneously more robust and more fragile.The armed forces also are adopting pull logistics techniques and integrating theirlogistics systems with commercial freight systems to reduce deployment time andcost. Under peacetime conditions, the military is just another very large shipper.But with its new doctrine of rapid response, future wartime military deploymentswill likely occur as short, sharp surges. Large-scale deployments will stress thefreight transportation system and could disrupt the tightly strung logisticsnetworks of civil commerce and defense industry production.Shippers and the economy have benefited from these changes, but they are farmore reliant on timely, reliable freight service than they were 20 or 30 years ago.The consequences of service failure today matter far more than they did in thepast. Service failures today mean: depletion of critical materials and stocks;degraded product quality – from rapid (days) to immediate (hours); idled workers,equipment, and customers; loss of market share and profits; and an increasing riskthat failures in one part of the chain will ripple through more than one firm andmore than one business sector.Therefore, it is not surprising that the freight transportation modes offering thehighest levels of service are also growing the fastest. Air cargo has grown by17.9 percent annually; truck by 6.9 percent annually; and rail intermodal by4.6 percent. Rail carload and bulk grew just 1.4 percent annually, while domesticwaterborne trade declined by 0.5 percent annually.However, the productivity returns from deregulation, the capacity investmentsmade in the 1970s and 1980s, and the introduction of just-in-time logistics arediminishing. There are relatively few opportunities for further economicderegulation. Congestion is increasing; the impact is most noticeable inmetropolitan areas where peak-period travel times have risen significantly andtravel-time predictability has dropped. After two decades of improvement, totallogistics costs appear to have stalled at 10 percent of GDP, and there are someindications that costs – especially wages, insurance, and fuel costs – are beginningto rise again. These trends are expected to continue into the coming decades,suggesting that it is time to think about new strategies to meet the nation’s freighttransportation needs in the 21st century.227
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California State Rail Plan 2007-08
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2007-08 - 2017-18 California State
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Table of ContentsTable of Contents(
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Table of FiguresTable of FiguresFig
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California State Rail Plan 2007-08
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CALIFORNIA TRANSPORTATION PLAN 2025
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during evenings and weekends.• Cr
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ArcataFortunaScotia• Improved Amt
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SouthernCaliforniaCommuterRailChapt
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NorthernCaliforniaCommuterRail• C
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AUBURN-OAKLAND REGIONAL RAIL SERVIC
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AMTRAK PLANNINGIn April 2005, Amtra
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it is in the strategic interest of
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INTRODUCTIONGovernment Code Section
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PART IPASSENGER RAIL ELEMENT3
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Chapter I - California’s Vision f
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Chapter II - Capital ProgramCHAPTER
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Chapter II - Capital ProgramFigure
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Chapter II - Capital Programevaluat
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Chapter II - Capital Programsignals
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Chapter II - Capital ProgramThe Dep
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Chapter II - Capital ProgramIn the
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Chapter II - Capital Programsupplem
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Chapter II - Capital ProgramA numbe
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Chapter III - Operations ProgramCHA
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Chapter III - Operations ProgramFig
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Chapter III - Operations ProgramADM
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Chapter III - Operations Programcon
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Chapter III - Operations Programres
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Chapter III - Operations ProgramPro
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Chapter IV - Marketing ProgramCHAPT
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Chapter IV - Marketing Programprodu
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Chapter IV - Marketing ProgramGROUP
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Chapter IV - Marketing ProgramThe f
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Chapter IV - Marketing ProgramBEYON
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Chapter V - The California Passenge
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Chapter VI - Pacific Surfliner Rout
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California State Rail Plan 2007-08 to 2017-18

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