Morgan State University

University Transportation Centers Program (U.S.)

MD-15-SHA/MSU/3-5

Tech Report

Maryland

Maryland. State Highway Administration

Economic impacts of freight movement to Maryland’s economy were estimated by input-output analysis using the 2010 IMPLAN data. A freight economic output (FECO) index was also developed based on the historical payroll data and gross domestic product (GDP) between 2002 and 2010. This effort was motivated by the absence of defendable performance measures for the economic contribution of freight transportation services. It was found that the freight industry generates sizable ripple effects. While the trucking sector is the largest in terms of an absolute employment size, the spillovers of the freight water and port services are about seven times its employment size. The impact of government spending is also significant. The aggregate FECO index parallels the Maryland GDP and the national freight service index. Interestingly, the evidence of modal competition between truck and freight rail is observed. Their trends and the magnitude of the changes are generally moving in opposite directions. The findings and methodologies of the study will help decision makers understand the role that each freight mode plays in order to make more informed decisions. The economic indicators used in this study – jobs, income, and GDP – can be used for public outreach to mitigate the negative perception of freight movement. While travel time reduction and increased business productivity used in past impact studies are useful performance measures, jobs and income measures appeal to citizens.

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SP209B4P

US Transportation Collection