[Federal Register Volume 62, Number 3 (Monday, January 6, 1997)]
[Notices]
[Pages 785-790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-139]


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DEPARTMENT OF TRANSPORTATION
Office of the Secretary of Transportation
[Docket No. OST-96-1188]


National Freight Transportation Policy

AGENCY: Office of the Secretary of Transportation, Department of 
Transportation.

ACTION: Final Policy Statement.

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SUMMARY: The Department of Transportation is publishing a final policy 
statement on freight transportation that establishes the most important 
principles that will guide Federal decisions affecting freight 
transportation across all modes. The aim of these guiding principles is 
to direct decisions to improve the Nation's freight transportation 
systems to serve its citizens better by supporting economic growth, 
enhancing international competitiveness and ensuring the system's 
continued safety, efficiency and reliability while protecting the 
environment. We are maintaining Docket No. OST-96-1188 to receive 
comments or suggestions that could be useful in preparing future 
editions of this policy statement. It is our intention to update the 
statement periodically as warranted by changing conditions and events.

EFFECTIVE DATE: January 6, 1997.

ADDRESSES: Submit written, signed comments to Docket No. OST-96-1188, 
the Docket Clerk, U.S. Department of Transportation, Room PL-401, C-55, 
400 Seventh Street, SW., Washington, DC 20590. All comments received 
will be available for examination at the above address between 9:00 
a.m. and 5:00 p.m., ET, Monday through Friday, except Federal holidays. 
Those desiring notification of receipt of comments must include a self-
addressed, stamped envelope or postcard.

FOR FURTHER INFORMATION CONTACT: Mr. Carl Swerdloff, Office of 
Economics, at (202) 366-5427, Office of the Secretary, 400 Seventh 
Street, SW., Washington, DC 20590. Office hours are from 8:30 a.m. to 
5:00 p.m. ET, Monday through Friday, except Federal holidays.

Summary of Written Submissions to the Docket

    Written responses to the Notice of Proposed Policy (NPP) were 
received

[[Page 786]]

from a total of 18 organizations representing a broad range of 
governmental and private sector entities. Virtually all commented 
favorably on the DOT's decision to prepare a freight transportation 
policy, in response to the Intermodal Surface Transportation Efficiency 
(ISTEA), which emphasized that freight transportation needed greater 
attention by planning and development agencies, and because it would be 
useful to State and local government to set out a framework for 
addressing freight transportation issues. Some suggestions for 
modifying the statement appeared in several submissions and are 
discussed below.
    Several commentors were critical of the NPP because it was at too 
high a level of generality and that it was, therefore, of less utility 
to those outside the Department seeking information on future Federal 
priorities and programmatic or regulatory directions. Some thought that 
the policy statement should expand upon the general principles and 
include how the DOT would apply them in establishing strategic plans 
for addressing national freight transportation requirements. Several 
stated that the policy should, in fact, include specific actions the 
DOT anticipated for improving the freight transportation system. On the 
other hand, one commentor was concerned that the DOT's expressed role 
in freight transportation infrastructure planning and development not 
extend beyond general principles and broad national goals, leaving to 
the States the responsibility for setting local priorities and 
solutions that reflected local political and economic realities. The 
policy statement and the principles presented are intended as guidance 
for the development of more specific strategic action plans, proposals 
or decisions by the DOT, Congress, and State and local governments. We 
believe the policy principles presented in the statement describe, in 
general, the role and responsibilities of the DOT in freight 
transportation matters. In response to the comments that the policy 
statement include actions the DOT anticipates for improving national 
freight transportation, an addendum has been added to present examples 
of such activities that are either underway or to be initiated in the 
near term.
    Several comments suggested that the NPP include greater attention 
to multi-state, regional and local economic and transportation 
differences that need to be taken into account in developing freight 
transportation solutions. This issue was also raised in regard to the 
general concern that as a nation we should address the growing demand 
on our domestic freight transportation systems from international 
trade. These commentors noted that the Federal Government should 
consider these impacts on our transportation facilities as part of 
future international trade agreements. The policy statement has been 
revised to account for variability in State, regional and local 
requirements and conditions that must be considered in applying these 
policy principles.
    The integrated nature of the Nation's transportation system, 
freight and passenger, has been noted in the final policy statement in 
response to a suggestion of one commentor.
    Concern was expressed by some that although there is agreement with 
the general goal of greater freight transportation efficiency, we 
should, at the same time, understand that other important goals, such 
as improved air quality and safety, present restraints that may not 
allow for maximum efficiency in our freight transportation systems. 
While this point is well taken, it applies to a number of the general 
principles stated in the policy. Under varying circumstances or local 
situations a number of the guiding principles can be in conflict, 
necessitating trade-offs and compromises in reaching solutions that 
satisfy all parties. We believe the original policy statement addressed 
this point and that added discussion is unnecessary.
    Several commentors questioned the policy principle that efficient 
pricing systems are to be encouraged that reflect the full costs of 
developing, maintaining and operating public transportation 
infrastructure. They noted that this could lead to higher user costs or 
be exploited by local governments as a source of general revenue. The 
policy advocates the use of appropriate and efficient pricing which 
does not include excessive charges for general revenue purposes. We 
believe the principle, as presented, is correct and should be advanced.
    A number of other wording changes have been made in response to 
specific comments submitted to the docket. These changes are, for the 
most part, for clarification or emphasis purposes and have not altered 
the purpose or objectives of the principles as stated in the NPP.

Freight Transportation Policy Statement

I. Introduction

    This statement of guiding principles for the Nation's freight 
transportation system sets forth a DOT policy framework that will help 
shape important decisions affecting freight transportation across all 
modes. Our interest is to ensure the nation has a safe, reliable, and 
efficient freight transportation system that supports economic growth 
and international competitiveness both now and in the future, while 
protecting and contributing to a healthy and secure environment. The 
goal of this statement is to provide guidance for making the Nation's 
transportation system serve its citizens better. To achieve this goal, 
new partnerships must be formed among public agencies, the freight 
transportation industries and shippers.
    Highways, airports, rail facilities, ports, pipelines, waterways, 
intermodal transportation, and the freight carriers and shippers they 
serve all play a vital role in the Nation's economic health. The 
integrated nature of the Nation's transportation facilities and 
operations is an important feature that must be accounted for in the 
establishment of principles and actions that are directed at improving 
freight transportation. An efficient transportation system results in 
lower production and logistics costs for U.S. firms and better prices 
for consumers. In order to compete successfully in international 
markets U.S. firms must be able to rely on an efficient domestic 
freight transportation system that is effectively managed. The system 
also must support achievement of other national goals by fostering 
safe, effective, timely and environmentally sound freight 
transportation that improves the quality of life for all U.S. citizens.
    Effective freight transportation policy and planning must consider 
that much of our transportation infrastructure is provided by the 
different levels of government and that major portions are put in place 
by private capital. The policy must allow for variations in State, 
regional and local conditions, requirements and resources. Further, the 
fusion of public and private investment creates economic opportunities 
but also may raise regulatory conflicts, and both must be considered in 
national freight policy and planning.

II. Recent Trends in Freight Movements

    Freight moves on systems of increasingly integrated supply chains 
and distribution networks operating in States and metropolitan areas, 
as well as regionally, nationally, and internationally. Reliance on 
just-in-time production and current inventory management practices have 
increased the demand for more efficient and reliable freight 
transportation. Shippers are increasingly rationalizing the mix of

[[Page 787]]

transportation, inventory, handling, and loss and damage costs, 
striving to reduce their total logistics costs. They are using 
increasingly fast, reliable transportation in place of large 
inventories.
    The productivity of freight transportation firms and their ability 
to provide timely and reliable service depends not only on the 
efficiency of individual modal systems and the effectiveness of the 
laws and regulations under which they operate, but also on the 
efficiency of intermodal facilities that govern the effectiveness of 
their connections to one another. U.S. intermodal freight 
transportation links the various modes to meet customers market needs 
by providing integrated origin-to-destination service. It utilizes 
advanced technologies and operating systems designed to enhance 
productivity, reduce transportation costs, increase service speed and 
quality for shippers and lower prices for consumers.
    International freight movement takes advantage of the latest 
innovations in the global marketplace that reduce cost and better serve 
the customer. Customers are establishing global supply chains. 
Innovations that are developed by individual carriers are copied by 
others when results in savings or service are seen. The use of real-
time, interactive electronic data interchange, and vessel/asset sharing 
agreements all provide more efficient and rapid transportation of 
international freight movements.
    Contractual regimes governing the movement of freight have been 
established by the private sector which sometime result in conflicts 
with public regulations and create impediments to the safe and 
efficient operation of freight transportation. Government typically 
regulates the safety, and environmental aspects of infrastructure and 
equipment. It also may be appropriate for Government to facilitate 
problem solving and provide technical assistance where private and 
public sector requirements create barriers to safe and efficient 
freight movement. Economic consequences are increasingly a matter of 
market decisions by the private sector.

III. Principles of Federal Freight Transportation Policy

    The following eight principles provide the basis for a Federal 
freight transportation policy and describe the Federal role in freight 
transportation:
    1. Provide funding and a planning framework that establishes 
priorities for allocation of Federal resources to cost-effective 
infrastructure investments that support broad national goals.
    2. Promote economic growth by removing unwise or unnecessary 
regulation and through the efficient pricing of publicly financed 
transportation infrastructure.
    3. Ensure a safe transportation system.
    4. Protect the environment and conserve energy.
    5. Use advances in transportation technology to promote 
transportation efficiency, safety and speed.
    6. Effectively meet our defense and emergency transportation 
requirements.
    7. Facilitate international trade and commerce.
    8. Promote effective and equitable joint utilization of 
transportation infrastructure for freight and passenger service.
1. Provide funding and a planning framework that establishes priorities 
for allocation of Federal resources to cost-effective infrastructure 
investments that support broad national goals.
    Enactment of ISTEA, with its requirement for greater emphasis on 
intermodal and freight policy issues, marked a new era in 
transportation investment decision-making. The transportation planning 
process has become increasingly important. Metropolitan and State 
officials are now encouraged to include major freight distribution 
issues in their planning processes. They are also urged to work with 
carriers and industry to find ways for improving the efficiency of 
freight movements while protecting the environment. Thus, the 
transportation planning procedures adopted in ISTEA are aimed at an 
improved approach to developing freight transportation policy at all 
levels of government.
    While much of the surface transportation infrastructure is provided 
by the private sector (e.g., rail freight facilities, waterside and 
truck terminals, oil and gas pipelines), much of the infrastructure 
would not be built or maintained without public financial support that 
is affected by Federal policies. Private facilities are often dependent 
on public investment for their effectiveness, (e.g., waterside 
terminals that require public channels, etc.). Federal participation 
may be appropriate when infrastructure investment projects have a 
national or regional significance or when Federal involvement may 
facilitate the resolution of a freight transportation problem. The 
value of a particular transportation facility is often dependent on the 
existence and effectiveness of a regional or national network that is a 
Federal concern and responsibility.
    In cooperation with DOT and other Federal agencies, the Office of 
Management and Budget (OMB) has established guidelines for the economic 
analysis of Federal infrastructure investments.\1\ The guidelines apply 
rigorous cost-benefit standards to all proposed investments, including 
a provision that requires the measurement of costs and benefits over a 
project's life-cycle. The OMB guidelines also encourage, when 
appropriate, private sector participation in infrastructure projects 
and more cost-effective State and local infrastructure investment 
programs.
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    \1\ Executive Order 12893, ``Principles for Federal 
Infrastructure Investments,'' Federal Register, Volume 59, No. 20, 
January 31, 1994.
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2. Promote economic growth by removing unwise or unnecessary regulation 
and through the efficient pricing of publicly financed transportation 
infrastructure.
    Although freight transportation services are provided almost 
exclusively by the private sector, the Federal Government plays an 
essential role in maintaining competition in the transportation 
marketplace and in protecting the public from unsafe and 
environmentally damaging transportation operations. By promoting 
competition, Federal policies can help to foster an environment that 
encourages improvements and changes that reduce transportation and 
logistics costs. National objectives for the freight transportation 
system can be addressed through Federal activities such as the 
deregulation of entry and ratemaking in the trucking and air cargo 
industries, in order to foster an effective, competitive freight 
transportation environment.
    As the logistical requirements of businesses become more complex, 
some shippers and transportation providers will rely increasingly on 
intermodal services. Such services should not be hindered by artificial 
constraints. Physical and institutional barriers that impede the flow 
of freight from one mode of transportation to another should be 
eliminated. The elimination of physical and operational barriers to 
freight intermodal operations is primarily the responsibility of 
transportation carriers, shippers, and State and local government. The 
Federal Government, however, may take action to improve inadequate 
public infrastructure to support essential freight intermodal 
operations or to reduce legal and regulatory barriers such as those 
that until 1996 impeded

[[Page 788]]

railroad ownership of barge and trucking companies. The Federal 
Government may also encourage State and local governments to take 
necessary action, or in extreme cases even preempt them, in order to 
reduce statutory impediments to intermodal transportation.
    The prices charged for public sector transportation facilities and 
services determine whether they are used efficiently. Public facilities 
costs that are not included in the transportation rates paid by 
shippers may lead to inefficient use of the Nation's limited 
transportation resources. Whenever feasible, fees and taxes adequate to 
cover the cost of building, operating, and maintaining public 
infrastructure facilities should be recovered from the parties that use 
and benefit from them. However, fees that exceed the cost of providing 
freight services will adversely affect the efficiency and effectiveness 
of the transportation system and should be avoided.
    Federal actions must be evaluated not only for their short-term 
impacts but for their longer-term consequences for maintaining viable, 
competitive, multimodal freight transportation to serve the Nation. 
Therefore, freight regulatory and investment policies must take into 
account the linkages between freight transportation performance and 
economic performance at the local, regional, national, and 
international levels both today and in the future. The DOT has 
completed a comprehensive assessment of its regulations as part of the 
National Performance Review. It will reexamine its policies, programs, 
and regulations periodically to assess their effectiveness and whether 
they should be continued.
3. Ensure a safe transportation system.
    Making the transportation system safer is a critical Federal policy 
objective. Because the marketplace alone may not be effective in 
producing an acceptable level of public safety, the Federal Government 
will continue to promote transportation safety through regulation; 
through enforcement, engineering and education; and through support of 
voluntary compliance efforts by industry. Success in maintaining and 
improving the safety of our freight transportation networks requires 
the cooperation of each level of government and the private sector.
    The Federal Government will continue to support safety research and 
the dissemination of information related to safety. The DOT will 
continue to support activities to improve the information base needed 
to monitor the safety performance of all freight transportation modes 
including the full social costs of accidents. Federal research will 
focus on the causes of transportation accidents: the role of truck, 
rail, aircraft, and vessel design and performance in accidents and 
their solutions, as well as the contribution of human factors and 
infrastructure design. The Federal Government will also continue to 
work with the private sector on a cooperative basis, to ensure that 
proven safety advances are rapidly incorporated into practice, 
especially when substantial public benefits will result from their 
adoption.
4. Protect the environment and conserve energy.
    Responsible environmental protection is another important Federal 
policy objective and, like transportation safety, environmental 
protection requires the cooperation of all levels of government and the 
private sector. The total social costs of environmental degradation are 
not borne by the transportation users (e.g., the social costs 
associated with pollution are not reflected in the costs incurred by 
the users or prices charged for transportation services). Thus, the 
Federal Government plays, and must continue to play, an important role 
in reducing these social costs and ensuring that they are more 
accurately reflected in the price of transportation services through 
appropriate regulation or modifications to existing programs. In 
addition, the Federal Government will continue to support research and 
technology development that is directed at increasing transportation 
productivity while maintaining environmental protection.
    In pursuing its environmental protection objective, the Federal 
Government needs to continue to assess the impacts of environmental 
regulation on the performance of transportation operations and will 
work with the private sector and the environmental community to 
implement appropriate environmental protection measures and 
technologies in a cost effective and environmentally sound manner. The 
Federal Government will seek to develop regulations that contain 
performance based rather than technology specific standards or criteria 
so as to permit industry flexibility and innovation in meeting 
regulatory requirements. DOT will continue working to promote and 
develop techniques for conserving energy and for better quantifying the 
social costs of environmental and community degradation.
5. Use advances in transportation technology to promote transportation 
efficiency, safety and speed.
    Application of advanced technology in the transportation system 
offers significant opportunities to improve its safety, efficiency, 
capacity, and productivity.
    Private firms invest in advanced communication, navigation, 
surveillance, and information technologies which improve the efficiency 
of their operations. These advanced technologies facilitate the 
movement and tracking of goods and vehicles as well as the exchange of 
information among carriers and their customers in the intermodal 
transportation system. They also offer tools for strengthening 
intermodal connections. Public and private investments for applying 
these advanced technologies to the air, highway, marine, and rail 
infrastructures have improved the overall efficiency of the 
transportation system.
    DOT's Federal role in research and development of technologies is 
to promote the efficiency and safety of the national transportation 
system and to support the application of technologies in the movement 
of freight. Specifically, DOT provides leadership for the interagency 
coordination of Federal transportation research. This includes 
maintaining close dialogue with the private sector and State and local 
governments to ensure that DOT research funding reflects the priorities 
of freight transportation users and providers. DOT will coordinate 
Federally funded research to ensure that there is no redundancy. DOT 
will maintain a leadership role in development of an intermodal 
research framework.
    Advances in information technology are having a dramatic effect on 
transportation requirements and the planning of future capacity 
investments. DOT works with the private sector to facilitate 
communications across modes for intermodal compatibility of technology 
applications, such as Global Positioning Systems (GPS) and Geographic 
Information Systems (GIS). DOT coordinates with other Federal agencies, 
such as the Department of Defense and the National Oceanic and 
Atmospheric Administration, to ensure that underlying data (such as 
weather and positioning information) required as input to these various 
systems continue to be available.
    DOT will continue to work closely with the freight industry to 
ensure that the United States is well represented in

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international transportation technology and standards forums.
6. Effectively meet defense and emergency transportation requirements.
    Recent changes in our Nation's defense strategy and the downsizing 
of the U.S. military establishment have increased the need for 
effective deployment of those forces in times of a national emergency. 
They have emphasized the need for rapid deployment of large numbers of 
people and large amounts of material on short notice. Similarly, when 
natural disaster strikes, a high-quality, multimodal transportation 
system is critical to ensuring the safety of the affected population 
and the ability of local, State and Federal officials to start 
rebuilding devastated communities. Deploying personnel, equipment, and 
supplies through the air, over land or on the seas, requires well-
planned, maintained, and sufficient alternative transportation systems 
and facilities for both the military mission and disaster relief 
operations.
    The Department of Defense has adopted policies that will require 
greater use of civilian transportation resources in meeting its 
transportation needs. The Nation's freight transportation operators, 
therefore, have an essential role to play in the mobilization and 
deployment of personnel, equipment, and supplies in the event of a 
national emergency or a natural disaster. The DOT will continue to work 
with the Department of Defense, other Federal agencies, and the 
transportation community to identify short- and long-term national 
defense and emergency transportation requirements and to ensure that 
the transportation system can meet those requirements.
7. Facilitate international trade and commerce.
    To retain and enhance the Nation's competitive position and its 
economic vitality, domestic firms must have access to foreign markets 
through an efficient transportation system. A competitive international 
transportation industry requires highly efficient connections to and 
within the domestic transportation system. Where international trade 
agreements are being negotiated, as in the case of the North American 
Free Trade Agreement (NAFTA) and the World Trade Organization (WTO), 
regulatory policy decisions that primarily affect international freight 
movements will also take into account their implications for domestic 
freight operations and competition as well as the interests of States 
and localities affected by such policy decisions. Government can 
provide new opportunities for American exporters by leading trade 
negotiations with the European Union, with other industrialized 
countries, and with emerging markets, such as those in Asia and Latin 
America, and by providing technical assistance programs to promote 
American transportation and infrastructure technologies.
8. Promote effective and equitable joint utilization of transportation 
infrastructure for freight and passenger service.
    The efficient use of the Nation's transportation infrastructure may 
require the joint use of facilities by freight and passenger transport 
operators. When appropriate, the Federal Government, in conjunction 
with State and local agencies and the private sector, will support the 
equitable sharing of transportation facilities and infrastructure and 
reasonable compensation for their use.
    Potential safety problems and reduced freight transportation 
operations efficiency may arise from the sharing of facilities. These 
concerns should be taken into account in policy initiatives that 
address the joint use of facilities. The DOT will continue to support 
research in this area and will encourage transportation firms to adopt 
new technologies and operating practices that would reduce the adverse 
consequences that may arise from the joint use of facilities.

Addendum

    The following is a list of near term DOT initiatives that may have 
significant implications for freight transportation. They are 
representative of a much larger number of activities underway or 
anticipated by the DOT that will improve the safety, efficiency, 
reliability and environmental performance of the freight systems 
consistent with the guiding principles presented in this policy 
statement. Included are development, operating, research and regulatory 
activities that affect individual as well as intermodal freight 
systems, and the cooperation of public and private entities.
    ISTEA Reauthorization: The Intermodal Surface Transportation 
Efficiency Act of 1991 expires at the end of fiscal year 1997, and the 
DOT has completed its outreach and analysis effort and is in the 
process of developing the Administration's proposal for 
reauthorization. The central elements of ISTEA--strategic 
infrastructure investments, intermodalism, flexibility, 
intergovernmental partnerships, a strong commitment to safety, and 
enhanced planning--have been well received and successful and should be 
preserved. The goal for reauthorization is to develop a proposal for 
the next century that allows our Nation to preserve our competitive 
advantage throughout the world and maintain the well being of our 
citizens. There are a number of freight transportation issues that are 
being considered, including:
    Increased Funding Flexibility: Alternatives are under study for 
increasing the flexibility for use of Federal funds for projects that 
improve the connectivity of freight transportation systems and for the 
development or improvement of freight terminals that serve more than a 
single mode of transportation.
    Truck Size and Weight Regulation: The DOT is currently conducting a 
comprehensive analysis of the effects of changing current truck size 
and weight regulations on safety, transportation costs, modal 
competition, and environmental and energy impacts. The results of this 
effort, which should be completed in early 1997, will be reported to 
the Congress and used in the evaluation of any proposed changes to 
current truck size and weight regulations. The range of alternatives 
being studied include maintaining the status quo, increasing individual 
State regulatory authority over truck size and weight limits, and 
increasing Federal responsibility in establishing greater national 
uniformity.
    Highway Cost Allocation Study: The Department is conducting an 
analysis of the responsibility of highway user groups for both the 
direct and external costs of the highway program as well as alternative 
methods for collecting revenues from users. This study, which should be 
completed in 1996, will provide an analytic capability to evaluate 
alternative highway user tax and other revenue collection options that 
may arise in ISTEA reauthorization, including the cost responsibility 
of the heavy combination vehicles.
    National Highway System (NHS): Programs that provide national 
connectivity, increase the capacity of the system and improve the flow 
of traffic, such as the National Highway System and its intermodal 
connectors, will be continued. The NHS, approximately 160,000 miles of 
major roads, represents only 4 percent of the total mileage but carries 
75 percent of heavy truck traffic. All major rail-truck intermodal 
facilities will be connected to the NHS.
    Border Crossings: We are concerned about the special trade-related

[[Page 790]]

transportation needs of certain areas of the country, particularly 
along the Mexican and Canadian borders and the North-South corridors 
that serve them, that will facilitate trade resulting from NAFTA. 
Programs will be considered that are designed to improve the flow of 
trade and traffic across the borders.
    Intelligent Transportation Systems (ITS): Consideration is being 
given to investments in ITS technologies that hold the promise of 
increasing the carrying capacity and efficiency of our current 
infrastructure. ITS is expected to increase the capacity of our 
transportation system at a fraction of the cost of traditional 
infrastructure building. ITS also is expected to provide substantial 
safety and environmental benefits. One major element of this program--
particularly focused on freight transportation--is the Commercial 
Vehicles Information System and Networks (CVISN) which will develop 
standards and protocols to allow freight carriers to electronically 
exchange information required by regulatory authorities using 
commercially available communications infrastructure. The goal of the 
CVISN is to provide greater compatibility of the information systems 
owned and operated by state/local governments, carriers, and other 
stakeholders.
    Rail-Highway Grade Crossings: The current program under ISTEA will 
be considered for continuation as part of the reauthorization effort. 
The program provides funds for rail-highway grade crossing improvements 
and for the conduct of studies and dissemination of information on 
better grade crossing designs and construction safety measures that 
will, in part, improve the safety performance of the freight 
transportation system .
    Implementation of the NAFTA Agreement: We will continue working 
with our Canadian and Mexican partners to improve the safety, 
efficiency, and productivity of freight transportation among the three 
nations while protecting U.S. safety standards, including the 
improvement of enforcement of cross-border truck safety requirements.
    Deploy Global Positioning System for Transportation Purposes: The 
DOT is the designated lead agency for all Federal civil GPS matters and 
will coordinate the development and implementation of Federal 
augmentation measures to the basic GPS for civil transportation 
applications. We will coordinate activities to minimize cost and 
duplication. The DOT will work to augment GPS to: improve aviation 
navigation during adverse weather conditions and increase airways 
capacity and efficiency; facilitate railroads' ability to implement 
positive train control systems increasing safety and capacity; be a 
component of the Intelligent Transportation System (ITS) reducing 
congestion and improving railroad grade crossing safety; improve harbor 
approach and intra-harbor safety nationwide and track movement of 
tankers through Prince William Sound; improve safety and efficiency of 
ships moving through the St. Lawrence Seaway and Panama Canal; and more 
rapidly locate and respond to motor vehicle accidents, hazardous 
materials spills and vessels in distress.
    Pipeline Risk-based Programs: The DOT will continue the examination 
of gas and hazardous liquid pipeline regulations to incorporate up-to-
date technology and to more fully incorporate risk-based factors in the 
prioritization and selection of safety requirements.
    Conclude Additional International Aviation Agreements: We will 
continue efforts to reach new agreements with other nations that open 
new and improved opportunities for U.S. airlines in international 
passenger and air cargo markets, and strengthen and expand the 
competitive international aviation marketplace.
    Shipyard Revitalization Initiative: Assist efforts within the 
shipbuilding and repair industry to compete internationally by helping 
firms convert from defense to civilian markets. This includes ensuring 
fair international competition, improving competitiveness through 
technology transfer and applied research, eliminating unnecessary 
regulations, financing ship sales for both export and U.S. flag 
operations, and assisting in international marketing.
    National Dredging Policy: We are implementing the report of the 
Interagency Working Group on the Dredging Process, by working with 
Federal and State agencies to resolve impediments to dredging projects 
that are necessary to maintain shipping channels in the major U.S. 
ports.
    Voluntary Intermodal Sealift Agreement: We will continue 
development of this program in partnership with U.S. flag carriers and 
the Department of Defense to achieve agreement from carriers to commit 
intermodal sealift capacity in time of war or national emergency and to 
maximize DOD's use of the U.S. maritime industry's intermodal capacity.

    Issued in Washington, DC on December 27, 1996.
Federico Pena,
Secretary of Transportation.
[FR Doc. 97-139 Filed 1-3-97; 8:45 am]
BILLING CODE 4910-62-P