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investment in this project will thereby create rail and road transport efficiencies with significant spillover effects expanding San Joaquin County's intermodal transportation system and enhancing broader production efficiencies m the county. • Strengthening rail and truck transportation's comparative advantages,the project will generate several positive spillover effects on the highway transportation system: o Environmental Benefits:Freight railroads are estimated to be nearly four times more fuel- efficient than trucks. Given that greenhouse gas emissions (CO2)are directly related to fuel consumption,increased rail transportation from the project will contribute to a reduction in greenhouse gas and particulate matter emissions. o Reduced Highway Congestion:It is estimated that one freight train can do the work of more than 280 trucks.4 By reducing long-haul truck traffic,the project will decrease highway congestion and facilitate highway travel for other motorists. owa ainte ance Costs,As the project reduces long haul truck wear on local highways an bri ges it will increase traffic on the UP lines. While greater efficiencies are realized the project also shifts costs of the maintaining the transport infrastructure from the public to the private sectors.This reduction in demand for public expenditures on existing highway maintenance may allow funds to be applied to other transportation projects. o am m r wa Sa traffic By reducing long-distance truck trac the project will also reduce ociate highway a .accidents. • The project will sit immediately adjacent to a 4.7 million sqquare foot integrated logistics center recently approved by the City of Manteca,referred to as the CentcrPoint Intermodal Centcr ("CIC' . The CIC will sort,store and distribute goods for shippers and receivers. Bringing together transportation and logistics operators these centers reduce freight costs and increase productivity through efficiencies in the logistics value chain,truck utilization,warehouse utilization,and labor force utilization. • According to the UOP Study,integrated logistics centers, like the CIC next to the project, leverage the efficiencies of rail transportation and new warehousing technologies in a concentrated location that Significantly improves supply-chain productivity and economic competitiveness of tenants. The project and the center can thereby create positive d7namic benefits as they strengthen the San Joaquin County logistics duster. Strengthening the county s logistics duster should create lower supply-chain and transportation costs.Thus,in addition to jobs created at the Intermodal Facility and the CIC,they will: o Encourage up-stream and down-stream linkages by expanding higher-value business opportunities o Create synergies in the co-locations of industries, including agricultural processing, manufacturing and packaging o Enhance small and medium enterprise competitiveness through improved supply-chain management o Improve access to higher-value transportation for agricultural producers and processors, manufacturers,and distributors • The project will further several priorities described in the San Joaquin Council of Governments' Regional Transportation Plan, which provides a long-run vision for development of the County's transportation system,including o Improve Safety and Security: The terminal modernization and expansion will improve cargo safety and security by reducing handling of the freight itself. In addition, the modernization and expansion will result in improved highway safety by reducing long-haul truck miles and the associated potential for accidents. o LmWove System Maintenance and Operations: Modernization and expansion will facilitate maximizing throughput on the existing system through its promotion of each modes' comparative advantage Findings of Fact/ 36 November 2012 Statement of Overriding Considerations