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TRANSPORTATION, LOGISTICAL, AND WAREHOUSING APPLICATIONS
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valued at $13 trillion was carried within the United States. When analyzing the U.S. logistics market, however, one must examine inef ciencies in logistics services resulting from de ciencies in U.S. infrastructure that could create broad economic disruptions. Figure 35.1 displays the variety of methods used to transport materials. Statistics and performance of speci c logistics sectors are outlined below:
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Air transportation Air transportation suffers from outdated infrastructure and ana-
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lysts estimate that at the current level of infrastructure investment, the system will face critical operational failures by 2015. Currently, air transportation accounts for roughly 1 percent of U.S. GDP and is a signi cant GDP multiplier. Maritime Limited port capacity (i.e., on-dock and intermodal infrastructure) is causing recurring congestion, and U.S. ports are projected to reach maximum capacity by 2010. The reliability of U.S. inland waterways is deteriorating due to outdated infrastructure. Movement of goods through more than 360 ports, 1000 harbor channels, and 25,000 miles of domestic waterways accounts for approximately $750 billion of U.S. GDP. Nearly 80 percent of all trade by volume enters the United States by sea. Rail The current capacity of the railway system is constrained; nevertheless, forecasters predict a 55 percent increase in rail traf c by 2020. The majority of U.S. railroad infrastructure is privately owned and future necessary capital investments
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are uncertain due to the high-capital-cost, low-capital-return nature of the industry. Railways provide a key link between ports and trucking and carry 16 percent of freight moved in the United States. Trucking Trucking capacity is tight due to a shortage of 20,000 drivers (which is expected to rise to 111,000 by 2014. Along with high fuel prices and hazardous materials transportation costs, the capacity shortages are driving up trucking prices. Trucking dominates the U.S. domestic freight industry, moving 75 percent of freight by value and two-thirds of freight by weight. The impact of any one of the mentioned factors within the transport sector could exacerbate capacity pressures throughout the United States and drastically affect the market conditions in the sector, and to some signi cant extent, the entire U.S. economy. The transportation and warehousing sector distinguishes three basic types of activities: subsectors for each mode of transportation, a subsector for warehousing and storage, and a subsector for establishments providing support activities for transportation. In addition, there are subsectors for establishments that provide passenger transportation for scenic and sightseeing purposes, postal services, and courier services. A separate subsector for support activities is established in the sector because, rst, support activities for transportation are inherently multimodal, such as freighttransportation arrangement, or have multimodal aspects. Secondly, there are production process similarities among the support activity industries. One of the support activities identi ed in the support activity subsector is the routine repair and maintenance of transportation equipment (e.g., aircraft at an airport, railroad rolling stock at a railroad terminal, or ships at a harbor or port facility). Such establishments do not perform complete overhauling or rebuilding of transportation equipment (i.e., periodic restoration of transportation equipment to original design speci cations) or transportation equipment conversion (i.e., major modi cation to systems). An establishment that primarily performs factory (or shipyard) overhauls, rebuilding, or conversions of aircraft, railroad rolling stock, or a ship is classi ed in subsector 336, transportation equipment manufacturing according to the type of equipment. Many of the establishments in this sector often operate on networks, with physical facilities, labor forces, and equipment spread over an extensive geographic area. Warehousing establishments in this sector are distinguished from merchant wholesaling in that the warehouse establishments do not sell the goods. Excluded from this sector are establishments primarily engaged in providing travel agent services that support transportation and other establishments, such as hotels, businesses, and government agencies. These establishments are classi ed in sector 56, administrative and support, waste management, and remediation services. Also, establishments primarily engaged in providing rental and leasing of transportation equipment without operators are classi ed in subsector 532, rental and leasing services.
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