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the United States. The CFS shows that in 1993<br />

the nation’s freight transportation system carried<br />

12.4 billion tons <strong>of</strong> goods worth more than $6.3<br />

trillion over a total distance <strong>of</strong> 3.7 trillion tonmiles.<br />

Nearly three-quarters <strong>of</strong> the value <strong>of</strong> items<br />

transported moved by truck, followed by, in order<br />

<strong>of</strong> magnitude, intermodal, rail, water, <strong>and</strong><br />

pipeline transport. Over half the weight <strong>of</strong> all<br />

freight was moved by truck, with rail <strong>and</strong> water<br />

accounting for most <strong>of</strong> the remaining tonnage. In<br />

terms <strong>of</strong> ton-miles, the split between truck, rail,<br />

water, <strong>and</strong> pipeline is more even, given the<br />

greater distances moved by large shipments in<br />

the nonhighway modes. Air cargo shipments registered<br />

the sharpest increase, although in<br />

absolute terms this mode’s share remains small.<br />

The performance <strong>and</strong> condition <strong>of</strong> the<br />

nation’s transportation system are mixed. The<br />

condition <strong>of</strong> highways has generally improved,<br />

but greater dem<strong>and</strong> has increased congestion in<br />

many metropolitan areas. Transit, on the other<br />

h<strong>and</strong>, has generally experienced somewhat<br />

improved performance with little change in condition.<br />

The condition <strong>of</strong> airport runways has<br />

improved slightly, <strong>and</strong> airline performance is<br />

somewhat better, even though the average age <strong>of</strong><br />

the industry’s fleet increased slightly. The condition<br />

<strong>and</strong> performance <strong>of</strong> freight rail transportation<br />

have both improved, but the condition <strong>and</strong><br />

performance <strong>of</strong> passenger service have generally<br />

worsened. Despite the fact that little new construction<br />

has been initiated over the past decade,<br />

the performance <strong>and</strong> condition <strong>of</strong> pipelines has<br />

improved slightly.<br />

Three key transportation events were noteworthy<br />

in 1995. The first two events were specific<br />

to the United States: the designation <strong>of</strong> the<br />

National Highway System <strong>and</strong> changes in the<br />

industrial concentration <strong>of</strong> the railroads, with<br />

the number <strong>of</strong> Class I carriers reduced from 14<br />

to 12 through consolidation during 1995. The<br />

third, the Kobe, Japan, earthquake, which<br />

occurred a year to the day after the Northridge,<br />

California, earthquake has many lessons for<br />

transportation systems in earthquake-vulnerable<br />

locations in the United States.<br />

Transportation <strong>and</strong> the Economy<br />

Transportation reaches into every facet <strong>of</strong> our<br />

economic life. A variety <strong>of</strong> economic indicators<br />

is needed to capture the rich interplay between<br />

transportation <strong>and</strong> the larger economy <strong>and</strong> measure<br />

transportation’s importance to the economy.<br />

One measure <strong>of</strong> transportation’s contribution<br />

to the economy is provided by its share <strong>of</strong> the<br />

gross domestic product. This can be computed<br />

either as transportation’s share <strong>of</strong> final dem<strong>and</strong><br />

in GDP, or as a share <strong>of</strong> value-added created by<br />

transportation in GDP. Transportation-related<br />

final dem<strong>and</strong> is defined as the value <strong>of</strong> all transportation-related<br />

goods <strong>and</strong> services, regardless<br />

<strong>of</strong> industry origin, delivered to final dem<strong>and</strong><br />

(which includes consumer <strong>and</strong> government<br />

expenditures, investments, <strong>and</strong> net exports). In<br />

1994, transportation-related final dem<strong>and</strong><br />

amounted to $725 billion, or 10.8 percent <strong>of</strong> the<br />

GDP. As noted earlier, the economic signifi-<br />

U.S. GROSS DOMESTIC PRODUCT<br />

BY MAJOR SOCIAL FUNCTION, 1994<br />

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14.4%<br />

SOURCE: See chapter 2, figure 2-1.<br />

Housing<br />

23.9%<br />

Transportation<br />

xv

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