DOT looks to reduce export costs
The Iowa Department of Transportation has released a new freight plan that looks to reduce the $1 billion in annual export-related transportation costs while also meeting national goals set by Congress.
The plan comes as DOT Director Paul Trombino continues his big-data approach to planning transportation improvements, as planning continues for arail transload facility in Des Moines and as the DOT rehabs much of the road network using money from an increased state sales tax.
The freight plan covers airports, highways, pipelines, railroads and
waterways.
“Reducing transportation costs for companies exporting products from Iowa is a vitally important goal of supply chain planning and optimization in the private sector,” the report states. Iowa’s exports are in the $15 billion range and growing, and typically run 50 to 60 percent higher than imports to the state.
Corn, oats, wheat and other cereal grains are Iowa’s biggest export at 101 million tons per year, more than a quarter of all exports. Gravel and animal feed also are leading freight export items.
The plan is designed to meet the national freight goals, which call on the states to:
- Improve the contribution of the freight transportation system to economic efficiency, productivity, and competitiveness.
- Reduce congestion.
- Improve safety, security, and resilience.
- Make needed repairs.
- Use advanced technology, performance management, innovation, competition, and accountability.
- Reduce adverse environmental and community impacts.
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