Thursday, March 21, 2013

Importance of freight is recognized

Pasadena Star News
By: Cynthia Kurtz
Posted 3/20/2013

Trains, planes and automobiles - we need all kinds of transportation to meet the challenges of moving goods and services. This is especially true in Southern California where 40 percent of the containerized goods that enter the U.S. destined for places throughout the country comes through the Ports of Los Angeles and Long Beach. 

Last week while visiting officials in Washington D.C., I had an opportunity to learn more about what the federal government is thinking regarding goods movement. There are issues that transpose party lines. While the political parties don’t agree on much and the likelihood of a federal budget remains slim, everyone I spoke to agreed that there is a critical need for investments in infrastructure. Among the most pressing is the need for improvements in transportation systems particularly those used extensively for moving products from where they are produced or imported to the customers and users.

The first step in the federal legislative process is setting policy. When the topic is transportation that means including the item in the national transportation act. The latest transportation act, “Moving Ahead for Progress in the 21st Century" or "MAP-21” for short, passed in October 2012. It represents a significant change in thinking about goods movement. 

Map-21 is the first national transportation act to recognize the importance of freight. It establishes a National Freight Policy, calls for investments in transportation and operational improvements, and requires the federal Department of Transportation to define "primary" and "rural" networks of roads that are essential in freight movements.

Map-21 also encourages States to develop their own freight strategic plans and advisory committees. The committees are to be broad reaching and include representatives from ports, shipping, carriers, freight associations, state transportation departments and state and local government. 

While there are great advances in planning for freight, in its current form the freight policy and essential networks are defined exclusively around the highway system. Those of us here in the SGV know freight rail, which carries 42 percent of the nations ton-miles, is also a critical part of the goods movement system. If all of the freight that crosses the SGV were in trucks, our congestion would be unmanageable. The Alameda Corridor East along with its safety improvements and 22 grade separations needs to be regarded with the same high priority as our interstate system.

That's why this month's introduction of the "Multimodal Opportunities Via Enhanced (MOVE) Freight Act of 2013" is such encouraging news. The Freight Act focuses on creating a national freight plan for moving goods by road, rail, water and air. Introduced by Congressmember Sires from New Jersey, it has five co-sponsors including the San Gabriel Valley's Congressmember Grace Napolitano and Southern California Congressmember Janice Hahn.

Freight volumes are expected to more than double by 2040. This makes an inclusive policy that expands the definition of national freight network and makes financial investments in a multimodal integrated system key to developing the most effective and efficient system for goods movement. Now everyone in the SGV should get behind this important piece of legislation and help lift it over the finish line.

Thursday, March 7, 2013

SGV well positioned for success

Pasadena Star News
By: Cynthia Kurtz
Posted 3/6/2013 

It’s close to what counts the number one reason the San Gabriel Valley is the place for business. Successful businesses need to be close to customers, markets, materials, and employees. When you are in the SGV you are close to it all. 

Need to get to Orange County? Jump on the I-605 or SR-57. Headed to the IE? You’ve got the I-210, the I-10 and the SR-60 to choose from. Got a meeting in downtown Los Angeles? Twenty minutes and you can be there. In all, seven major freeways traverse the region. The light rail lines that will eventually connect all the Foothill cities and run along the SR-60 are only going to make connecting better.

What if you are importing materials from New Zealand or China? Selling your products in St. Petersburg or Italy? Not a problem. The nation’s two busiest container ports are close at hand with both truck and rail options for shipping.

Your CEO has a trip to the east coast each week? No need to go all the way to LAX. Ontario and Bob Hope Airports are just minutes away. If your company owns its own airplane, then El Monte Airport is your home base.

The SGV has every neighborhood from blue collar to executive so employees at every income level have affordable and attractive housing options.

No matter where you locate in the SGV, you will be close to institutions of higher education. I am not talking about any old schools. SGV schools are prestigious. No other region can brag about “bookends” like Caltech - the number one university in the world two years in a row - and the Claremont Colleges. No doubt about it, the SGV is “400 square miles of talent.”

All of the SGV’s prestigious schools - Mt. San Antonio (SAC), Citrus College, Cal Poly Pomona, University of La Verne, Rio Hondo College, Azusa Pacific University, Pasadena City College, Mt. Sierra College, Western University of Health Sciences, Caltech, and  Keck Graduate University, - provide a skilled workforce and a steady supply of opportunities for research and product development. 

The SGV is also a good deal for businesses. Lower commercial lease rates help the bottom line. There is room to expand. All in all, locating in the SGV will “make your CFO happy.”

There are very few other places that can top the location, talent and cost effectiveness of the San Gabriel Valley for business. Help spread the word. Let your professional contacts know that the SGV is open for business.

Note: Thank you for all the comments on the recent column about the penny. While a few readers just couldn’t imagine getting rid of the penny, the vast majority were ready to make the change. The best idea comes from my friend Victoria at The Ratkovich Company. Since the penny costs 2.4 cents to make and the nickel costs almost 10 cents to make, Victoria asked, “why not make the penny worth 5 cents and get rid of the nickel thereby solving two problems at the same time?” Victoria, thank you. I wish I had thought of that!