Underground Construction - August 2017 - 28

C U R R E N T LY @ C U I R E
Evaluation Of Underground Freight Transportation In Texas
In December 2016,
CUIRE completed phase
one of the underground
freight transportation
(UFT) project for Texas
Department of Transportation (TxDOT). The
purpose of this project
was to investigate the
feasibility of employing
a variety of underground
freight mobility technologies for optimized use
of the available highway
capacity.
Underground freight
transportation is a class
of automated transportation systems in which
automated vehicles
carry freight under existing highways through
tunnels and pipelines
between intermodal terminals. Being able to use
part of the underground
space of the existing
highways will greatly facilitate the construction
of such tunnels and pipelines and reduce their
construction costs.
By considering planning and design, construction methods, cost
analysis, environmental impacts, financing means and the leadership of
the Stakeholder Committee, this project examined the use of UFT in three
proposed routes in Texas: the Port of Houston to Dallas, Port of Houston
to a distribution center within 15 miles of the Port's point of origin, and
the border crossing with Mexico in Laredo.
Considering operation and maintenance costs, the researchers determined that the cost of shipping freight by UFT is approximately 1/3 to
1/10 of shipping by trucks, and on longer hauls UFT becomes more cost
effective. Compared with railroad, transporting freight by UFT is a lot
faster, and does not contribute to noise and traffic congestions generated
by railroads.

As for capital costs, UFT construction (approximately $57 million
for two tracks) is compatible with highway construction in urban areas
(approximately $24 to $32 million per lane-mile). In addition, UFT has
minimal maintenance costs, provides improved performance, reduces
land usage, has less operation and maintenance costs, provides increased
efficiency, and provides opportunity for shared infrastructure.
By reducing heavy trucks, UFT provides a safer environment for cars,
and reduces damage to pavement and bridges. UFT reduces social costs
of air, water and noise pollution, traffic congestion and accidents. While
government agencies may lose fuel and spare parts tax revenue for a 250mile route between Houston and Dallas, the annual social benefit of UFT
is estimated to be approximately $400 million.

Value of research
The table (in 2016 dollars), below, shows the value of this research. These
analyses do not include benefits arising from reduction of overland accidents involving trucks and trains, such as the train collision near Panhandle, TX, on June 28, 2016. The value of research goes beyond just economic values, considering safety and environmental impacts of other modes
of freight transportation. Net present value (NPV) and benefit-cost ratio
(B/C) of each system, along with the comparison of the system's internal
rate of return (IRR) with the discount rates, clearly show the economic
viability of each proposed UFT alternative. To download the complete report, visit library.ctr.utexas.edu/hostedpdfs/uta/0-6870-1.pdf.

Summary of Calculated Economic Measures for Various Designed UFTs with a Discount Rate of 1.5
Alternative
Container Size UFT from Port of Houston to Dallas at Lancaster

NPV*
$60 billion

BC** Ratio
3.77

IRR***
12.44%

Container Size UFT from Port of Houston to Inland Satellite Distribution Center in Baytown

$3.4 billion

3.3

11.6%

Crate Size UFT from Port of Houston to Inland Satellite Distribution Center in Baytown

$0.8 billion

2.48

9.92%

Pallet Size UFT from Port of Houston to Inland Satellite Distribution Center in Baytown

$1.1 billion

1.96

6.44%

Container Size UFT for the Border between the U.S. and Mexico in Laredo, TX

$0.2 billion

1.24

3%

*Net Present Value, **Benefit Cost Ratio, ***Internal Rate of Return

28

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Underground Construction August 2017
http://library.ctr.utexas.edu/hostedpdfs/uta/0-6870-1.pdf http://www.ucononline.com
Underground Construction - August 2017

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