How Logistics Facilitate an Efficient Freight Transportation System
Chairman John J. Duncan, Jr. (R-TN)
Panel on 21st Century Freight Transportation
Hearing on How Logistics Facilitate an Efficient Freight Transportation System
June 26, 2013
(Remarks as Prepared)
Today’s hearing examines the correlation between logistics and a productive, efficient, and safe freight system. The movement of goods across the country may not always grab headlines, but the efficiency of freight transportation impacts the lives of every American on a daily basis. From the clothes we wear to the cars we drive to the food we eat, the freight transportation system impacts all aspects of our everyday life.
The logistics industry is valuable to the Nation’s freight system because logistics improve the efficiency of the supply chain. The logistics industry adds value to the supply chain by improving the planning, implementation, and control of the flow of goods from point of origin to point of consumption.
The purpose of this panel is to provide recommendations to the Committee on ways to modernize the freight network and make the United States competitive in the 21st Century. We have been working hard towards this goal, holding multiple hearings and roundtable discussions and visiting critical freight facilities in Southern California and the greater Memphis area.
We also have a knowledgeable group of witnesses before us, today. I am interested to hear from them regarding their operations, as well as any recommendations they have on ways to improve our Nation’s freight system.
First, we have David Abney, the Chief Operating Officer of UPS. UPS is the world’s largest package delivery company, delivering over 16 million packages to almost 9 million customers every day.
Second, we have Tracy Rosser, the Senior Vice President for Transportation at Walmart. Walmart operates over 4,000 stores across all 50 states and is a large user of all modes of transportation.
Third, we have Ed Hamberger, President and CEO of the Association of American Railroads (AAR). AAR represents all of the Class I railroads, as well as over 170 short-line railroads and regional lines.
Next, we have Scott Satterlee, the Senior Vice President for Transportation at C.H. Robinson, testifying on behalf of the Transportation Intermediaries Association (TIA). C.H. Robinson is a leading third-party logistics company, and TIA is the professional organization for the third-party logistics industry.
Fifth, we have Mark DeFabis, President and CEO of IDS. Mark is testifying on behalf of the International Warehouse Logistics Association (IWLA). IDS is a warehouse logistics company from Indianapolis, Indiana, and IWLA represents warehouse-based logistics companies.
Finally, we have Richard Fisher, President of Falcon Global Edge, testifying on behalf of the Airforwarders Association (AfA). Falcon Global Edge is a logistics company focusing on air cargo. In his capacity as Chairman of AfA, Richard also represents 360 similar companies.
I would like to welcome our witnesses and thank them for being here today.
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Mr. David Abney, Chief Operating Officer, United Parcel Service | Written Testimony
Mr. Tracy Rosser, Senior Vice President, Transportation, Walmart | Written Testimony
Mr. Edward R. Hamberger, President & CEO, Association of American Railroads | Written Testimony
Mr. Scott Satterlee, Senior Vice President, Transportation, C.H. Robinson Worldwide; on behalf of the Transportation Intermediaries Association | Written Testimony
Mr. Mark DeFabis, President & CEO, Integrated Distribution Services; on behalf of the International Warehouse Logistics Association | Written Testimony
Mr. Richard Fisher, President, Falcon Global Edge; on behalf of the Airforwarders Association | Written Testimony