San Joaquin Valley Interregional Goods Movement Plan - Task I ...

San Joaquin Valley 

Interregional Goods Movement Plan 

Task 1: Existing Conditions Assessment 

Technical Memorandum 

Prepared for 

San Joaquin Valley Regional Transportation Planning Agencies 

Prepared by 

Cambridge Systematics, Inc. 

with 

The Tioga Group, Inc. 

Fehr & Peers 

Jock O’Connell 

Date: January 2012

technical memorandum 

Task 1: Existing Conditions 

Assessment 

prepared for 

San Joaquin Valley Governments Regional Transportation Planning Agencies 

prepared by 


555 12th Street, Suite 1600 

Oakland, CA 94607 

date 

January 2012


Table of Contents 

1.0 Introduction ......................................................................................................... 1-1 

2.0 Key Findings ........................................................................................................ 2-1 

2.1 Demographic Findings .............................................................................. 2-1 

2.2 Economic and Employment Findings ...................................................... 2-1 

2.3 Infrastructure Findings .............................................................................. 2-2 

3.0 Demographics ...................................................................................................... 3-1 

3.1 Population Trends ...................................................................................... 3-1 

3.2 Personal Income and Other Demographic Trends Influencing 

Regional Goods Movement ....................................................................... 3-4 

4.0 Benefits of Goods Movement Industries ....................................................... 4-1 

4.1 Regional Freight Drivers – Industries ...................................................... 4-1 

4.2 Employment ................................................................................................ 4-4 

4.3 Regional Industries ................................................................................... 4-12 

5.0 Circulation ............................................................................................................ 5-1 

5.1 San Joaquin Valley basic infrastructure profile ...................................... 5-2 


8536.001 

i


List of Tables 

Table 4.1 Categorizing Industries Based on Their Transportation Needs ........ 4-2 

Table 4.2 Top Agricultural Producers in the SJV ............................................... 4-12 

Table 4.3 Major Goods Movement Industries ..................................................... 4-13 

Table 4.4 Summary of Primary Freight Forecast by Mode ............................... 4-19 


iii


List of Figures 

Figure 3.1 Population by County 2010 .................................................................... 3-1 

Figure 3.2 Population Growth in the San Joaquin Valley 2000-2040 ................... 3-2 

Figure 3.3 Population Clusters ................................................................................. 3-3 

Figure 3.4 Growth in Population and Income in the Study Area ........................ 3-5 

Figure 3.5 Unemployment in the San Joaquin Valley ........................................... 3-6 

Figure 4.1 Proportion of Goods Movement-Dependent Industries in the 

SJV 2010 ..................................................................................................... 4-4 

Figure 4.2 Total Goods Movement-Dependent Employment in the SJV 

2010 ............................................................................................................ 4-5 

Figure 4.3 Employment Clusters, San Joaquin Valley Study Area ...................... 4-7 

Figure 4.4 Percentage Growth in Goods Movement-Dependent Industries 

between 2010 and 2040 ............................................................................ 4-8 

Figure 4.5 Total Goods Movement-Dependent Employment in the SJV 

2040 ............................................................................................................ 4-9 

Figure 4.6 Proportion of Employment for Goods Movement- 

Dependent Industries 2010 ................................................................... 4-10 

Figure 4.7 Proportion of Output for Goods Movement-Dependent 

Industries 2010 ........................................................................................ 4-10 

Figure 4.8 Proportion of Statewide Output for All Goods Movement 

Dependent Industries ............................................................................ 4-11 

Figure 4.9 Proportion of Statewide Output by Industry ..................................... 4-11 

Figure 4.10 Locations of Key Goods Movement Businesses in the Valley ......... 4-14 

Figure 5.1 Freight Transportation Facilities in the San Joaquin Valley 

Overview ..................................................................................................... 5-2 

Figure 5.2 Truck Routes in the SJV and Location of Truck Stops ........................ 5-4 

Figure 5.3 Potential Importers and Exporters 2006 .............................................. 5-6 

Figure 5.4 Kern County Study Routes ..................................................................... 5-8 

Figure 5.5 MISTER Truck Fleet Locations, (5 or more trucks) 2011 .................. 5-10 

Figure 5.6 MISTER Truck Fleet Locations, (less than 5 trucks) 2011 ................. 5-11 

Figure 5.7 Study Area LTL Terminals ................................................................... 5-12 


v

List of Figures, continued 

Figure 5.8 Study Area Truck Stop Locations ........................................................ 5-13 

Figure 5.9 Rail Network in the San Joaquin Valley ............................................. 5-14 

Figure 5.10 Beard Industrial District ........................................................................ 5-16 

Figure 5.11 Central California Traction Company Map ....................................... 5-18 

Figure 5.12 San Joaquin Valley Railroad Map ........................................................ 5-20 

vi 

Cambridge Systematics, Inc.


1.0 Introduction 

The characteristics of a region’s demography, economy, and circulation are the 

key drivers of goods movement demand. Growing populations tend to consume 

more products and will require increased trucks, railcars, and airplanes 

to deliver consumer products to stores, homes, and businesses throughout the 

region. Likewise, growing industries will demand more incoming products to 

support their operations, and will produce a greater amount of goods for 

export. In general, demographic and economic features of an economy determine 

the types of commodities and the volumes of traffic generated, and also 

the demand for particular modal services and the transportation system performance 

requirements. 

This document is intended to present existing and future economic and demographic 

conditions for the San Joaquin Valley (SJV) study area. Located in the 

central part of the State of California, the SJV is composed of eight counties, 

(Kern, Kings, Tulare, Fresno, Madera, Merced, Stanislaus, and San Joaquin) and 

62 cities, of which Fresno, Bakersfield, Modesto, and Stockton have populations 

in excess of 200,000. The SJV has a diverse internal economy and also plays a 

major role in the distribution of agricultural materials throughout California, the 

United States, and the world. 

This report explores the goods movement implications of economic and demographic 

trends in the San Joaquin Valley. This report provides a description of the 

existing freight infrastructure (including roads, rail, intermodal facilities, and air 

cargo) and lays the foundation for the analysis of existing and future freight flows 

and the capability of the system to support anticipated freight growth. This effort 

builds upon recent traffic, logistics, and long-term infrastructure improvement 

planning efforts throughout the study area, including the San Joaquin Valley 

Regional Goods Movement Action Plan (2007), corridor studies along SR 99 and 

other highways around the region (including SR 58 and SR 152), truck circulation 

studies to identify access points and routes for trade goods throughout the SJV 

region, and numerous rail studies that explore the use of the rail mode in a 

robust goods movement system. These studies have all helped to establish the 

foundation for continued dialogue on managing the freight transportation 

system throughout the Valley. 

Further phases in this San Joaquin Valley Interregional Goods Movement Plan will 

develop strategies to better capture economic development opportunities associated 

with freight transport while mitigating identified impacts. The strategies will recommend 

improvements to the existing infrastructure to accommodate future shifts 

and growth in industry throughout the Valley. This report includes the following 

sections that will lay the foundation for future analysis: 

Cambridge Systematics, Inc. 1-1


 

 

 

 

Section 2.0: Presents key findings from the demographic, economic, and 

infrastructure analysis; 

Section 3.0: Explores existing and future demographics in the region and 

how they affect freight demand; 

Section 4.0: Highlights the role of goods movement-oriented industries in 

the San Joaquin Valley, including existing and future employment trends, 

logistics and supply chain trends, and economic output; and 

Section 5.0: Describes the San Joaquin Valley’s circulation system and the 

various transportation modes that support the movement of freight in the 

region, including highways, rail, air, and intermodal connections. 

1-2 Cambridge Systematics, Inc.


2.0 Key Findings 

2.1 DEMOGRAPHIC FINDINGS 

 

 

 

Despite the current national economic downturn, the population of the San 

Joaquin Valley has grown over 20 percent in the last 10 years, gaining nearly 

700,000 residents since 2000 (which would rank as the sixth fastest growing 

region in the United States). 1 

Between now and 2040 the region will more than double in population. This 

population growth will be accompanied by increased activity in certain 

goods movement-dependent industries, such as construction, retail, and 

wholesale trade. These trends will create pressure on the transportation 

system, as well as contribute to increasing congestion, emissions, and air 

quality concerns. 

Population centers within the SJV are generally located adjacent to major 

highway facilities such as SR 99, I-5, SR 152, SR-198, and SR 41. Access to 

major population centers is critical for the movement of goods, not only for 

local deliveries of consumer products but to access warehousing and 

distribution facilities and services for transportation operators. 

Over the last 10 years, median household incomes have increased over 30 

percent throughout the SJV. They are projected to nearly double by 2040. 

Continued increases in household income will increase demand for consumer 

products, food, waste, and other commodities exported from and imported to 

the Valley. 

2.2 ECONOMIC AND EMPLOYMENT FINDINGS 

 

In 2010, there were about 1.2 million people employed across all sectors in 

the San Joaquin Valley. Of this total, over 44 percent (564,000 jobs) are 

associated with goods movement-dependent industries, including agriculture 

(187,000), wholesale and retail trade (170,000), manufacturing 

(102,000), and transportation and utilities (48,000). 

By 2040, goods movement-dependent jobs are expected to increase by over 45 

percent (nearly 250,000 jobs). This growth will be lead by industries, 

including transportation and warehousing, wholesale, and retail trade. 

1 2010 Census. 



 

 

 

The region currently accounts for over 8 percent of the total GDP for the State 

of California. It provides nearly 50 percent of the State’s agricultural output 

($13 billion dollars), and 25 percent (over $5 billion dollars) of the State’s total 

output for mining and mineral extraction. 

The economic downturn of 2007-2011 has severely impacted the SJV – the 

region faces one of the highest unemployment levels in the Nation (averaging 

just over 18 percent Valley-wide) 2 and more than double the National 

average. Thus, infrastructure investments that support industries with 

potential for significant employment growth are likely to be the focus of at 

least some portion of goods movement investment strategies. 

Current national, state, regional, and industry led export growth efforts 

may provide opportunities to improve the demand for major Valley 

exports. Examples of recent initiatives include the current Administration’s 

National Export Initiative 3 and recently approved free trade agreements 

with South Korea, Panama, and Colombia. To the extent that these 

initiatives succeed in increasing SJV exports, there will be an increasing 

need to move those to the seaports. All waterborne exports from the SJV are 

trucked to California seaports at present, as are all imports through 

California seaports. 

2.3 INFRASTRUCTURE FINDINGS 

 

 

 

The highway and local road system is the primary freight infrastructure for 

the region, and trucking is the dominant freight mode. There are over 31,420 

roadway miles in the San Joaquin Valley consisting of Interstate highways 

such as I-5 and I-580, state highways, including SR 99 and SR 58, and major 

county roadways. 

The large scale of the region and its orientation creates issues with congestion 

and pollution. The Valley’s geography allows for relatively limited 

transportation options and acts as a trap for air pollutants making vehicle 

emissions difficult to manage 

There are over 2,700 miles of truck routes in the 8-County study region, with 

over 80 percent designated STAA National Truck Routes. In recent years 

however, new clusters of industries have been developing along regional 

roads not intended for heavy truck traffic – accelerating pavement 

deterioration and raising safety concerns. 

2 California Employment Development Department Statewide Labor Market Data 

http://www.labormarketinfo.edd.ca.gov/?pageid=1006. 

3 http://export.gov/nei/. 



 

 

 

Rail freight operations and facilities in the study area are primarily owned by 

the Union Pacific (UP) and Burlington Northern Santa Fe (BNSF). The region 

also has several short-line operations, including 417 miles of the San Joaquin 

Valley Railroad (SJVR). However, there currently is no intraregional service 

within the SJV. 

Many shortline railroads in the SJV serve a large number of carload rail 

customers, typically providing frequent, customized switching service. A 

recognized challenge within the SJV is better understanding the operations 

and needs of the shortline railroads, including issues that lead to 

abandonment of lines, to maintain them as a viable transportation option for 

customers. 

The air cargo system in the San Joaquin Valley is comprised of seven 

airports – all of which offer limited commercial passenger airline and air 

cargo service. The limited service offerings within the Valley means that 

some air cargoes must be trucked to larger airports in other parts of the 

State 4 . 

4 Attracting airlines to an airport in the SJV will likely involve assuring them of a steady 

volume of outbound cargo (such as agricultural exports), as well as a more consistent 

stream of inbound cargo opportunities. 



3.0 Demographics 

Freight demand and freight flow patterns in the San Joaquin Valley (SJV) are 

shaped by a variety of factors, including population, income, and other demographic 

trends. It is important to understand these trends and their implications 

for goods movement at the local, county, and regional level. Population growth 

in the region, the result of natural increase, immigration, and migration from 

other states drives many elements of the goods movement system. These elements 

include increasing demand for employment, production, distribution, and 

consumption of consumer products, and housing, and logistics and warehousing 

of consumer products. This section outlines the population and other recent 

demographic trends as well as projections into the future and possible effects on 

the goods movement system in the SJV. 

3.1 POPULATION TRENDS 

The current population in the SJV is nearly 4 million people, accounting for about 

11 percent of the total statewide population. Fresno, Kern, and San Joaquin 

Counties account for over 50 percent of the population. Within these Counties 

are the largest Metropolitan areas within the Valley, the Cities of Fresno, 

Bakersfield, and Stockton. The figure below highlights the differences in 

population for each County in the SJV. 

Figure 3.1 

Population by County 

2010 

1,000,000 

800,000 

600,000 

400,000 

200,000 

0 

Fresno Kern Kings Madera Merced San Joaquin Stanislaus Tulare 

2010 Population 

Source: U.S. Census, 2010. 



The population of the San Joaquin Valley has grown over 20 percent in the last 10 

years, gaining nearly 700,000 additional residents since 2000. For context, if the 

SJV were a state, it would rank as the sixth fastest growing in the United States – 

faster than California, or the National average. 5 Recent growth has continued 

trends going back at least three decades, with the study area more than doubling 

in population since 1980. 6 By 2040, the San Joaquin Valley’s population is 

expected to grow to nearly 8 million people, more than doubling the existing 

population (Figure 3.2). 7 

Figure 3.2 

Population Growth in the San Joaquin Valley 

2000-2040 

10,000,000 

8,000,000 

6,000,000 

4,000,000 

2,000,000 

0 

2000 2010 2020 (Projected) 2030 (Projected) 2040 (Projected) 


Note: 2020-2040 population totals are based on projections of 2000 Census data. 

The SJV’s rapid population growth is attributable to a combination of factors, 

including shifting urban and suburban commuting patterns to the greater 

Sacramento and San Francisco Bay areas, relatively affordable housing compared 

to coastal counties of both Northern and Southern California, and continued 

growth in agricultural production, transportation operations and distribution, 

and service industry employment opportunities (including health and education) 

within the SJV itself. 

Within the SJV, there are several major population centers, primarily clustered 

around major Cities and County seats. As shown in the Figure 3.3, the primary 

population centers also are located adjacent to major highway facilities such as 

SR 99, I-5, SR 152, SR 198, and SR 41. Access to major population centers is 

critical for the movement of goods, not only for local deliveries of consumer 

5 U.S. Census. 

6 California DOF, Census. 

7 Projections based on 2000 Census data, 2010 actual population was consistent with the original 

2000 projections. 



products but also to access warehousing and distribution facilities and services 

for transportation operators. Though several of the SJV counties have seen rapid 

growth over the last 10 years, Kern County has experienced the highest 

percentage of growth of the eight county study area at over 26 percent. 8 

Figure 3.3 

Population Clusters 


Note: Circles represent total population within each zip code. 

Immigration and its Affect on the Goods Movement System 

Increases in population, either based on natural increase or immigration strongly 

influence the demand for products distributed by the goods movement system. 

Due in large part to the demand for jobs in a fast growing regional economy, the 

SJV has long been a magnet for immigrants to the region. Over the last 15 years, 

the region as a whole as averaged about 15,000 new legal immigrants every year 

8 2010 Census. 



(about seven percent of the statewide total). 9 This has brought close to 400,000 

additional residents to the region, contributing to the growth in the labor pool. 

Although the recent economic challenges have slowed demand for employment 

in industries that are often worked by recent immigrants such as construction 

and agricultural jobs, there is still expected to be opportunities for immigrants in 

the Valley into the future. Although legal immigration to the SJV has continued 

to grow in recent years, the myriad factors that influence U.S. Immigration Policy 

make future predictions very challenging. If immigrant-friendly industries in the 

Valley recover as expected over the next several years, upward immigration 

growth trends may continue. 

Recent trends in birth rates in the Valley also contribute to strong population 

growth and a growth in consumption and employment. While the number of 

overall annual births in the State of California population remained stagnant 

during the 2000s, the annual births in the San Joaquin Valley increased substantially, 

increasing from about 58,000 births/year to 68,000, an increase of 16 percent. 

The births per year are expected to continue to grow in the Valley over the 

next 10 years to nearly 82,000 births per year, an increase of 20 percent. 10 

Population trends, including the birth rate and immigration will continue to 

increase demand for goods and services in the San Joaquin Valley. 

Transportation demand to import products for construction-related services will 

grow, as new housing is built (or converted from existing stock) to house the 

growing population. Demand for consumer products also will rise, as well as the 

accompanying need for transportation, warehousing, and distributions centers. 

This will likely create more inbound traffic to import products and materials 

from other regions, as well as the intraregional traffic associated with warehousing 

and distribution to markets within the SJV. 

3.2 PERSONAL INCOME AND OTHER DEMOGRAPHIC 

TRENDS INFLUENCING REGIONAL GOODS 

MOVEMENT 

Another strong influence for increased freight demand within in a region is 

household income. Average incomes in the study area are slightly higher than 

the National average; however, higher wages in the region are generally subsumed 

by the higher overall cost of living in California. The SJV generally has a 

lower average median income than the State of California as a whole, but also an 

9 Data Sources: U.S. Citizenship and Immigration Services and the California Department of 

Finance, Demographic Research Unit. 

10 2009 and previous years actual births based on California Department of Public Health, Center 

for Health Statistics. Projected births from the Demographic Research Unit. 



average lower cost of living than the statewide average in many areas. Per capita 

median income ranges from about $26,000/year to $32,000/year within the 

SJV’s Counties. 11 

Over the last 10 years, median household incomes have grown substantially 

throughout the study area, increasing over 30 percent (Figure 3.4). This is generally 

consistent with the statewide average. Incomes are generally projected to increase 

by 2040, with the Counties with higher current levels of income, such as Stanislaus, 

San Joaquin, and Fresno Counties expected to experience the greatest growth. 

Figure 3.4 

Growth in Population and Income in the Study Area 

Population (in Millions) 

9 

Per Capita Income (in Thousands) 

$80 

8 

7 

6 

5 

4 

3 

$70 

$60 

$50 

$40 

$30 

2 

2000 2010 2020 (Projected) 2030 (Projected) 2040 (Projected) 

$20 

Population 

Per Capita Income 

Source: U.S. Census, 2010 and California Forecast, 2011. 

Strongly correlated with higher incomes, education, and average age of the population 

also can influence the demand for products manufactured, extracted, 

warehoused, and distributed to and from the SJV. Higher levels of education are 

associated with professional jobs and higher wages associated with those jobs. 

Generally, the San Joaquin Valley region has lower levels of education than the 

statewide average as well as a lower average age. This may depress consumption 

levels per person in the short term. On the other hand, it may provide a more flexible 

workforce for warehousing, manufacturing, transportation, and farming jobs not 

necessarily associated with high levels of education. 

11 California Forecast, 2011 and U.S. Census. 



Unemployment and Its Impact on Goods Movement 

The economic downturn of 2007-2011 has severely impacted the SJV – and the 

region currently faces some of the highest unemployment levels in the Nation. 12 

Each County within the SJV has an unemployment rate of at least 16.6 percent 

with an area wide average just over 18 percent (Figure 3.5). 13 This rate is over 

double the national average of 9.1 percent 14 and is much greater than the statewide 

unemployment rate of nearly 12 percent. 15 

Figure 3.5 

Unemployment in the San Joaquin Valley 

Unemployment Rate (in Percent) 

25 

20 

15 

10 

5 

0 

Fresno 

County 

Kern County 

Kings 

County 

Madera 

County 

Merced 

County 

San Joaquin 

County 

Stanislaus 

County 

Tulare 

County 

SJV (8- 

County Avg) 

Source: California Economic Development Department, Statewide Labor Market Data, June 2011. 

A high level of unemployment is negatively correlated with consumption, and 

clearly affects demand for goods. However, as the goods movement-oriented 

sector in the Valley is both a heavily consuming and heavily producing market, 

certain elements of the system (such as agricultural commodities) may be less 

affected by economic downturns. In fact, during the recent recession demand for 

certain products has remained strong, such as tree nuts (i.e., pistachios, walnuts, 

12 The unemployment rate does not include those persons who have dropped out of the labor force, 

a hallmark of the most recent recession. If these persons were included in the number of 

unemployed, it is likely the rate could be much higher. 

13 California Employment Development Department Statewide Labor Market Data 

http://www.labormarketinfo.edd.ca.gov/?pageid=1006. 

14 Bureau of Labor Statistics, June 2011. 

15 Ibid. 



almonds), grapes, milk products, and other food products, largely for export, 

where prices have remained strong. 16 

Continued strong demand for certain products may help the SJV recover from 

the economic turmoil of the recent recession which has affected several other key 

regional industries such as construction. National, statewide, regional, and local 

initiatives have intended to help producing areas like the SJV to build their 

goods movement-oriented sectors such as the President’s Export Initiative (sidebar), 

California’s International Trade Coordinating Council, California Enterprise 

Zones and other efforts by state and local governments to promote California 

Goods and Services. Efforts to promote exports of Valley food and processed 

foodstuffs, oil and oil products, and other manufactured goods could aid the SJV 

economy in the future. However, continued high regional and national unemployment 

and uncertain economic conditions globally may negatively impact the 

demand for the production of SJV agricultural commodities and other goods 

movement-oriented services (i.e., warehousing and distribution) in the short 

term. Challenging economic conditions within the study area also continue to 

affect demand for imported manufactured products, especially construction 

materials. 

Other external factors that could increase the demand for goods produced and 

consumed in the SJV include the recently 

approved free trade agreements with 

South Korea, Panama, and Colombia. 

These agreements have the potential to 

substantially benefit the Valley due to 

reduced tariffs and other duties, especially 

on high-value agricultural products such 

as almonds, raisins, fruit products, and 

high-quality meat and dairy products to 

the three markets. 

The SJV region’s demographics, with an 

increasing population and rising incomes 

demonstrate the need for a robust goods 

movement system to transport agricultural, 

manufactured, and other consumer 

products inbound, outbound, and within 

President’s Export Initiative: 

To help promote U.S. exports around the 

globe, The President of the United States 

signed an Executive Order in 2010 with 

the goal to double exports from the United 

States within five years by working to 

remove trade barriers abroad and helping 

firms domestically overcome hurdles to 

entering and expanding in overseas 

markets. 

Source: http://www.whitehouse.gov/ 

the-press-office/executive-ordernational-export-initiative. 

the Valley. The next section describes in more detail the economics and employment 

in the region and possible trends that will affect specific goods movementoriented 

industries in the future. 

16 Food and Agriculture Organization of the United Nations Food Price Index 

http://www.fao.org/worldfoodsituation/wfs-home/foodpricesindex/en/. 



4.0 Benefits of Goods Movement 

Industries 

Two key metrics commonly used to evaluate county and regional economic patterns 

are employment and Gross Domestic (or Regional) Product (GDP) by 

industry. Employment is represented by the total number of people employed 

across industries, both government and the private sector. GDP is a measure of 

the value added to products and services by all regional businesses and industries; 

it is a broad indicator of the level and strength of economic activity in a 

region. This evaluation focused on those “goods movement-dependent” 

industries that generally utilize the freight infrastructure system – the roads, rail, 

ports, and intermodal facilities such as warehouses, manufacturing centers, and 

distribution facilities. 

4.1 REGIONAL FREIGHT DRIVERS – INDUSTRIES 

What are Goods Movement-Dependent Industries? 

A region’s goods movement system is partially a reflection of the industries and 

businesses that make up its economy. For example, a region that is dominated 

by construction will rely on the movement of heavy, low-value materials such as 

sand, gravel, and lumber. These commodities tend to be carried by transportation 

modes that are less expensive on a per-ton basis (such as barge transportation 

or short-line rail), even if they are slightly slower than other modes. On the 

other hand, regions that specialize in high-value electronic manufacturing will 

likely favor transportation modes that allow for the quickest delivery possible 

(such as air cargo), even if they are more expensive than other modes. Industries 

and businesses can be divided into two groups according to their dependence on 

freight transportation services. These two groups will be used throughout this 

section and are summarized in Table 4.1 below: 

Goods Movement-Dependent Industries are businesses that rely on transportation 

as a key part of their business model. They may receive daily 

shipments of raw supplies to support their manufacturing process, or daily 

delivery of refined or finished product to market. This group includes 

industries such as agriculture, manufacturing, wholesale (and retail) trade, 

construction, transportation and warehousing (including utilities), and 

mining 17 sectors. These activities remain the foundation for many local area 

economies within the SJV region. Because of their reliance on (and impacts 

17 Mining is primarily concentrated in the southern part of the San Joaquin Valley (Kern County) 

with marginal activity in the other areas. 



 

to) the region’s goods movement system, these industries will be the focus of 

analysis throughout this memorandum. 

Service Industries are not as dependent on movement of raw or manufactured 

materials, but do rely on shipments of materials, office products, or other small 

shipments of goods and supplies. This category includes industries such as government, 

education, health care, and other professional categories. Moreover, 

service industries are the predominant users of light-duty and medium-duty 

trucks, which face many of the same access and mobility issues as the heavyduty 

trucks used more often for goods movement. 

Table 4.1 

Categorizing Industries Based on Their Transportation Needs 

Goods Movement-Dependent Industries 

Agriculture, forestry, fishing, and hunting 

Crop and animal production (farms) 

Forestry, fishing, and related activities 

Mining 

Oil and gas extraction 

Mining, except oil and gas 

Support activities for mining 

Utilities 

Construction 

Manufacturing: Durable goods 

Wood product manufacturing 

Nonmetallic mineral product manufacturing 

Primary metal manufacturing 

Fabricated metal product manufacturing 

Machinery manufacturing 

Computer and electronic product 

manufacturing 

Electrical equipment and appliance 

manufacturing 

Motor vehicle, body, trailer, and parts 

manufacturing 

Other transportation equipment 

manufacturing 

Furniture and related products 

manufacturing 

Miscellaneous manufacturing 

Consumer Goods and Service Industries 

Information 

Publishing, including software 

Motion picture and sound recording industries 

Broadcasting and telecommunications 

Information and data processing services 

Finance and insurance 

Federal Reserve banks, credit intermediation, and 

related services 

Securities, commodity contracts, investments 

Insurance carriers and related activities 

Funds, trusts, and other financial vehicles 

Real estate and rental and leasing 

Real estate 

Rental and leasing services and lessors of intangible 

assets 

Professional and technical services 

Legal services 

Computer systems design and related services 

Other professional, scientific, and technical services 

Management of companies and enterprises 

Administrative and waste services 

Administrative and support services 

Waste management and remediation services 



Table 4.1 

Categorizing Industries Based on Their Transportation Needs 

(continued) 

Goods Movement-Dependent Industries 

Manufacturing: Nondurable goods 

Food product manufacturing 

Textile and textile product manufacturing 

Apparel manufacturing 

Paper manufacturing 

Printing and related support activities 

Petroleum and coal manufacturing 

Chemical manufacturing 

Plastics and rubber products manufacturing 

Wholesale Trade 

Retail Trade 

Transportation and warehousing 

Air transportation 

Rail transportation 

Water transportation 

Truck transportation 

Transit and ground passenger transportation 

Pipeline transportation 

Other transportation and support activities 

Warehousing and storage 

Consumer Goods and Service Industries 

Educational services 

Health care and social assistance 

Ambulatory health care services 

Hospitals and nursing and residential care facilities 

Social assistance 

Arts, entertainment, and recreation 

Performing arts, museums, and related activities 

Amusement, gambling, and recreation 

Accommodation and food services 

Accommodation 

Food services and drinking places 

Other services, except government 

Government 

Federal civilian 

Federal military 

State and local 

Source: Cambridge Systematics, Inc. 

Goods movement-dependent industries play a major role in the economy of the 

San Joaquin Valley. The data for evaluating the economic and employment system 

in the SJV were collected from the California Forecast, with outputs provided 

to the California Department of Transportation for use in their own work 

as well as by the Business, Transportation, and Housing agencies for the State. 

The data account for the recent economic recession and provide recent year data 

(2010) and forecasts from 2011 to 2040. Historical data were used to identify 

growth trends during the last decade. The Department of Transportation publishes 

County-level economic forecast summaries, including employment by the 

following industry categories: farm, construction, manufacturing, transportation, 

wholesale and retail trade, financial activities, professional services, information, 

health and education, leisure, and government. These data were utilized 

to help formulate the findings for this report. The results were compared against 



other economic forecast sources in order to ensure a consistent expectation for 

future growth by Industry. 18 

4.2 EMPLOYMENT 

In 2010, there were about 1.2 million people employed across all sectors in the 

San Joaquin Valley. Of this total, over 44 percent (564,000 jobs) are associated 

with goods movement-dependent industries (Figure 4.1). This is a particularly 

high proportion of employment, even compared with other regions where goods 

movement activities play an important role in the economy. 19 Within goods 

movement-dependent industries, jobs associated with farming/agriculture currently 

account for over a third of the employment in the San Joaquin Valley (over 

187,000 employees). Extractive industries, such as these generally employ higher 

numbers of workers, compared to the number of firms. Wholesale and retail 

trade (which includes a large number of retail employees) employs nearly as 

many workers in the Valley as agriculture (over 170,000). Currently, the proportion 

of goods movement-dependent jobs within each of the 8-Counties in the San 

Joaquin Valley ranges from 40 percent of total jobs in Kings County to over 50 

percent of jobs in Tulare County. 

Figure 4.1 

Proportion of Goods Movement-Dependent Industries in the SJV 

2010 

Services (including 

Government), 

700,000 

Goods Movement, 

564,000 

Source: California Forecast, 2011, Moody’s economy.com (for mining employment). 

18 The data were compared to an employment dataset from Moody’seconomy.com which provided 

non-farm employment statistics and a 30 year forecast for the commodity categories listed above. 

Mining employment was not included in the California Forecast dataset and since the 2010 data 

for Moody’s economy.com were consistent between the two datasets, the mining employment 

from Moody’s was utilized in this analysis. 

19 By comparison, in Los Angeles County, home to the Ports of Los Angeles and Long Beach as 

well as robust warehousing, distribution, and manufacturing business clusters, goods movement 

dependent industry employment totaled about a third of total employment. 



Of the 564,000 jobs, agriculture, and wholesale and retail trade each account for 

about one-third with manufacturing (including food manufacturing and 

processing) accounting for nearly 20 percent, and transportation/utilities and 

construction about 8 percent each. Mining accounts for 2 percent of the total SJV 

jobs (Figure 4.2). 

Figure 4.2 

Total Goods Movement-Dependent Employment in the SJV 

2010 

Wholesale and 

Retail Trade, 

171,000 

Mining, 

11,000 

Farm, 

187,000 

Transportation/ 

Utilities, 

48,000 

Manufacturing, 

102,000 

Construction, 

45,000 


Over the last decade, 20 there have been only marginal shifts in the proportion of 

employment associated with the major goods movement-dependent industries in 

the San Joaquin Valley. Due in large part to the recession of 2007-2011, there was 

a net decline (about 10,000) in the total number of jobs associated with these 

industries between 2002 and 2010, with Manufacturing (8,000 jobs) and 

Construction (20,000 jobs) leading the decline. The construction sector lost about 

30 percent of its jobs between 2002 and 2010 and manufacturing lost nearly 10 

percent throughout the Valley. Without the job losses from construction, there 

was a net increase of 10,000 goods movement-dependent types of jobs (about 

2 percent). There were employment gains in farming (10,000 jobs), wholesale 

and retail trade (2,500 jobs), and transportation (5,000 jobs). 

20 2010 data compared with 2002 historical data. 



Freight-Oriented Business Clusters 

Due largely to available land, historic development patterns, and access to infrastructure, 

certain goods movement-oriented businesses in the SJV such as retail, 

manufacturing, and wholesale, tend to agglomerate in clusters along the major 

freight transportation corridors within the Valley, such as SR 99. There also are 

large proportions of freight-oriented businesses concentrated near the urban 

centers of Fresno, Bakersfield, Visalia, and Stockton (Figure 4.3). 

However, the agricultural industry does not follow this pattern. Most crop production 

areas are more dispersed, and located in rural areas. Increasing productivity 

due to modern farming techniques over the last few decades mean that 

large volumes of agricultural product can be produced with a relatively small 

labor force. Therefore, though the clusters of agricultural employment may not 

show up on a business map (such as Figure 4.3) there are crop production areas 

dispersed throughout the region placing additional strain on smaller connector 

facilities/roads, such as county roadways. In addition, there are some manufacturing 

and transportation/utilities employment located on the urban periphery 

throughout the Valley, likely food manufacturers and distributors located 

close to major agricultural operations. 



Figure 4.3 

Employment Clusters, San Joaquin Valley Study Area 

Source: U.S. County Business Patterns, 2009. 

Note: “Forestry/mining” category represents NAICS code 11, which includes agriculture, forestry, fishing, and hunting. For agriculture, due to the seasonal 

nature of agricultural employment as well as reporting challenges, this category may not reflect all employees associated with agricultural 

employment. 



In the future, goods movement-dependent jobs are expected to decline slightly as 

a relative proportion of total jobs (44 to 41 percent of total jobs), as the percentage 

of the workforce employed in service and government jobs continues to rise. 

However, goods movement-dependent employment is still expected to increase 

by over 45 percent by 2040 (nearly 250,000 jobs). The transportation sector (tied 

largely to the growth in international trade as well as agricultural production) is 

expected to grow substantially by 2040, increasing by over 90 percent (40,000 

jobs). Agriculture and manufacturing employment are expected to remain relatively 

flat over the next 30 years 21 with annual increases of less than 1 percent 

and mining-sector jobs are expected to decline (Figure 4.4). The output value 

associated with industrial production (including manufacturing) due in large 

part to productivity gains 22 is expected to increase nearly 150 percent between 

2010 and 2040. 

Figure 4.4 

Percentage Growth in Goods Movement-Dependent Industries 

between 2010 and 2040 

Wholesale and Retail Trade 

Transportation/Utilities 

Manufacturing 

Construction 

Farm 

0% 20% 40% 60% 80% 100% 

Percent 

Source: California Forecast, 2011. 

Note: Mining jobs are expected to experience a net decline of 3,000 jobs between 2010 and 2040 (about 

18 percent). 

By 2040, good movement-dependent industries will provide the San Joaquin 

Valley with over 800,000 total jobs (Figure 4.5). Agriculture alone will provide 

almost 220,000 jobs – as well as contribute billions of dollars to the region’s GDP. 

21 Much of this is due to continued rising productivity of these sectors, which allows for increasing 

production with a smaller workforce. However, for agriculture, the value of the output is also 

expected to remain relatively flat. 

22 California Forecast, 2011. 



The impact of goods movement-dependent industries on the Region’s Economy 

will be discussed in the next section. 

Figure 4.5 

Total Goods Movement-Dependent Employment in the SJV 

2040 

Mining, 

9,000 

Wholesale and 

Retail Trade, 

293,000 

Farm, 

217,000 

Construction, 

84,000 


Utilities, 

93,000 

Manufacturing, 

117,000 


Output 

According to the United State Bureau of Labor Statistics, the Gross Domestic 

Product (GDP) 23 for goods movement-dependent industries in the 8-County 

study area in 2010 was about $56 billion dollars. 24 This is an increase of about 

6 percent from 2009. The industries that contribute the most to regional GDP 

include wholesale and retail trade ($14 billion or 26 percent of the total), agriculture 

($13 billion or 24 percent of the total), and manufacturing ($12 billion or 

21 percent of the total). Figures 4.6 and 4.7 display the comparison between 

employment and output for all goods movement-dependent industries in 

the Valley. 

23 Gross Regional Product (GRP) is described as the value of goods and services produced within a 

metropolitan area in a given period of time. In this case the GRP applies to the San Joaquin 

Valley based on the output from each Metropolitan area within each County. This total includes 

mining output. 

24 Data collected from the BEA web site for GDP by Metro area. The MSA was utilized for each 

county in the study area. 



Figure 4.6 

Proportion of Employment for Goods Movement- 

Dependent Industries 

2010 

Wholesale and Retail 

Trade 

30% 

Mining 

2% 

Farm 

33% 


Utilities 

9% 

Manufacturing 

18% 

Construction 

8% 


Manufacturing and transportation account for a much higher proportion of output 

than proportion of employment. This is due to several trends, including rising 

productivity from new technology, updated equipment, or using temporary/seasonal 

labor. It may also indicate a higher value-added opportunity for these 

industries. Additionally, the mining industry only accounts for a marginal 

amount of employees (just over 10,000 in the entire Valley, mostly in Kern County) 

but a large proportion of SJV output, accounting for over $5 billion in 2010 (nearly 

10 percent of total Valley output). This is largely due to the highly mechanized 

nature of this sector with very productive workers. 

Figure 4.7 

Proportion of Output for Goods Movement-Dependent Industries 

2010 

Wholesale and Retail 

Trade 

26% 

Farm 

24% 


Utilities 

12% 

Mining 

9% 

Manufacturing 

21% 

Construction 

8% 

Source: Bureau of Economic Analysis, 2010. 



The region accounts for over 8 percent of the total GDP for the State of California 

(Figure 4.8). However, the region accounts for a much higher proportion of output 

within certain sectors, including nearly 50 percent of the State’s agricultural 

output, and 25 percent of the State’s total output for mining and mineral extraction 

(Figure 4.9). 

Figure 4.8 

Proportion of Statewide Output for All Goods Movement 

Dependent Industries 

San Joaquin Valley 

8% 

State of California 

92% 


Figure 4.9 

Percent 

50% 

Proportion of Statewide Output by Industry 

45% 

40% 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

Farm Mining Construction Manufacturing Wholesale and Retail Transportation/Utilities 

Trade 




For agricultural commodities, the SJV includes 6 of the Top 10 Counties in the 

State for total value of agricultural production, including the top 2, Fresno 

County (which produces over $5 billion of crop value yearly) and Tulare County 

(which produces over $4 billion). 25 Table 4.2 summarizes the top producing SJV 

Counties, the value of their agricultural production and major commodities. 26 

The next section describes the location of many of these producers as well as 

detail on other major industries in the SJV. 

Table 4.2 

Top Agricultural Producers in the SJV 

Rank 

County 

Crop Value 

(in Thousands) 

Major Commodities 

1 Fresno $5,372,009 Grapes, Tomatoes, Poultry, Almonds, Cattle and Calves 

2 Tulare $4,046,355 Milk, Oranges, Grapes, Cattle and Calves, Corn 

4 Kern $3,606,356 Grapes, Milk, Vegetables, Almonds, Pistachios 

5 Merced $2,460,474 Milk, Chickens, Almonds, Cattle and Calves, Sweet Potatoes 

6 Stanislaus $2,310,071 Milk, Almonds, Chickens, Cattle and Calves, Tomatoes 

7 San Joaquin $2,000,474 Grapes, Milk, Cherries, Tomatoes, Walnuts 

11 Kings $1,304,783 Milk, Cotton, Cattle and Calves, Processing Tomatoes, Pistachios 

14 Madera $963,128 Grapes, Almonds, Milk, Pistachios, Cattle and Calves 

All Counties $22,063,650 

Source: California Agricultural Resource Directory, 2010-2011. 

4.3 REGIONAL INDUSTRIES 

There are over 100,000 distinct firms in the San Joaquin Valley across all sectors 

and over 30,000 from goods movement-dependent industries. The majority of 

businesses in the County are small in size, with between 80 and 90 percent with 

less than 20 employees. 27 This can affect goods movement patterns by requiring 

warehouses and other consolidation points for aggregating shipments for 

25 California Agricultural Resource Directory, 2010-2011, California Department of Food and 

Agriculture. 

26 The gross value of production published in the California Agricultural Resource Directory 

(Agricultural Commissioners) includes all farm production, whether sold into usual marketing 

channels or used on the farm where it was produced. Values placed on pasture and range feed 

are included and fresh fruit and vegetable crop values are based on the free-on-board (F.O.B.) 

packed price. Values are recorded for all products grown during the calendar year, regardless of 

when they are marketed. This methodology for estimating the total value of production may lead 

to discrepancies in the total value of agricultural output for the SJV. 

27 California Employment Development Department (3 rd Quarter Payroll and Number of Business 

by Size, 2009). 



delivery. The largest goods movement-dependent businesses within the SJV 

include: food growing and production (including raw fruits and vegetables, 

nuts, milk and other dairy products), food processing and packaging, oil refineries 

and mineral mining operations in the Southern part of the San Joaquin 

Valley, and trucking and transportation and warehousing and distribution 

services throughout. 28 

Table 4.3 identifies major goods movement-dependent industries by County in 

the SJV and Figure 4.10 graphically displays the locations of those industries. 

Table 4.3 

County 

Fresno 

Kern 

Kings 

Madera 

Merced 

San Joaquin 

Stanislaus 

Tulare 

Major Goods Movement Industries 

Major Goods Movement Industries 

Meat and Poultry Farming and Processing, 

Fruit and Nuts, Produce Exporting 

Oil Services, Fruit and Vegetable Farming, 

Mineral Extraction, Logistics 


Fruit and Nuts, Produce Exporting 

Food Processing, Trucking and Distribution, 

and Manufacturing 


Fruit and Vegetable Farming, Food 

Processing 

Ranching, Food Processing, Fruit and 

Vegetable Farming 

Wineries, Canning and Other Food 

Processing, Vineyards 

Canning and Other Food Processing, Fruit 

and Vegetable Farming, Ranching, 

Warehousing and Distribution 

Sample of Major Goods 

Movement Employers 

Cargill Meat Solutions, Foster Farms, 

Sun-Maid Growers 

Chevron Corporation, Giumarra Farms, 

Sears Logistics SVC, U.S. Borax 

Central Valley Meat Co., Del Monte 

Foods, Nichols Farms, Leprino Foods, 

J.G. Boswell Co. 

Lamanuzzi and Pantealeo Cold Storage, 

Panella Trucking L.L.C Georgia Pacific 

Corp Madera 

Bianchi and Sons Packing Co., Foster 

Farms, Hilmar Cheese Co. 

B&B Ranch, Pacific Coast Producers, 

Morada Produce Co. 

Carlo Rossi Winery, Conagra Foods, Del 

Monte Foods 

Enns Packing Co., Sun Pacific Ranches, 

Walmart Distribution Center 

Source: California EDD: America’s Labor Market Information System (ALMIS) Employer Database, 2011 

1 st Edition. 

28 California Labor Market Info Major Employers by County. 



Figure 4.10 Locations of Key Goods Movement Businesses in the Valley 

Source: California EDD: America’s Labor Market Information System (ALMIS) Employer Database, 2011 1 st Edition. 

Note: Due to the seasonal nature of agricultural production and diffuse nature of agricultural operations, location of agricultural industries may not 

necessarily reflect the locations of actual employment. 



Industry and Supply Chain Trends 

While there is growth projected for all major goods movement industry categories 

in the San Joaquin Valley, there are several industries that have declined in 

relative importance over the past 10 years and others that have begun to play a 

more important role in the Valley’s economy. Agriculture and farming, the most 

important industry in the region due to its impact on the regional economy 

actually had its output decline in 2009 (during the recession) in many areas, 

including 4.7 percent in the leading producer Fresno County, 19.4 percent in 

Tulare County, and 10.6 percent in Kern County. 29 Dairy production led the 

declines throughout the State. 

Overall, crop values in the San Joaquin Valley have grown substantially over the 

past 10 years (an average of nearly 30 percent) with each County seeing gain. 

That growth is forecast to level off by 2040 with only 30 percent forecast over the 

next 30 years. There also are expected to be only marginal growth or declines in 

Fresno, Kern, Madera, and Stanislaus Counties, likely due to declining values of 

principal crops. With growth becoming more concentrated in other industries, 

the goods movement transportation system will have to adapt to serve faster 

growing industries, including warehousing and distribution and higher margin 

agricultural products. 

Growth Industries 

According to the data, goods movement-dependent growth industries include 

transportation and warehousing/distribution as well as wholesale and retail 

trade sectors. The implications of the growth in these industries will provide 

opportunities to adapt and improve the goods movement system to serve new 

facilities and promote additional economic growth and development in the SJV. 

Several external factors, which have more recently begun to seriously affect the 

Valley, impact the way shippers use the global multimodal transportation network 

to manage their inventories and ensure that the right materials arrive at the 

right location at the right time. One of these factors is the rise in globalization. 

This phenomenon has caused supply chains to lengthen, disperse, and become 

more complex as producers look to gain a competitive edge by accessing lower 

labor costs in locations around the globe. 

Regional Logistics Trends 

The Valley is experiencing the demands of the modern global logistics system 

across a range of goods, from raw agricultural materials to consumer products. 

The critical role that the San Joaquin Valley plays in California and the nation’s 

food supply will continue to require an effective goods movement system to distribute 

and export products quickly and efficiently. The growing regional 

29 California Resource Directory, 2010-2011. 



population, and that population’s growing expectations, will require increased 

attention to the safe and reliable movement of goods consistent with competing 

needs for infrastructure and greater sensitivity to emissions and congestion. 

Within that framework, continued pressure on costs and profits is leading shippers 

and receivers to seek transportation efficiency gains wherever they can be 

found. The overall goal within modern logistics can be summed up as “better, 

faster, cheaper.” Within the SJV, that goal translates to continual fine-tuning of 

logistics chains and transportation practices, and to a willingness to shift production 

and distribution facilities and activities to achieve the optimum combination. 

The SJV has gained many distribution and production facilities in recent 

years due largely to inexpensive land and available labor. To retain those businesses 

and add new ones, the region will have to provide matching transportation 

advantages. 

Export Growth 

The San Joaquin Valley produces a very large share of California’s exports, 

especially agricultural products, with Canada the leading destination of 

agricultural exports. In 2010, Canada took in 20.8% of California’s fresh fruits 

and nut exports and 64.9% of the exports of edible vegetables and seeds. 30 

According to recent statistics from the California Department of Food and 

Agriculture, the SJV accounts for over half the value of the State’s agricultural 

commodities, underscoring the region’s importance in the export market. The 

current Administration’s export growth initiative (highlighted previously) is 

intended to double the value of U.S. exports in five years. This initiative complements 

long-standing state, regional, and industry export growth efforts. To 

the extent that ongoing export growth initiatives succeed in increasing those 

exports there will be an increasing need to move agricultural and other 

commodities by truck and rail to Canada and to the California’s seaports. Almost 

all California waterborne exports are eventually containerized. Containerized 

goods from the SJV tend to move out of the Country through the Port of Oakland 

for at least two reasons: 

 

 

The availability of transloaders who can containerize goods delivered to 

them in bulk (e.g., hay cubes or waste paper); and 

Vessel rotations, which typically call at Oakland last before crossing the 

Pacific to Asia or sailing to other markets. 

The only significant San Joaquin Valley exports moving in bulk or break-bulk 

vessels are bagged rice (through Stockton) or scrap metal (through Oakland, 

Redwood City, or Richmond) All waterborne exports are trucked at present, as 

are all SJV imports through California seaports. There have been initiatives to 

create rail intermodal facilities at Crows Landing (in Stanislaus County) and 

30 Jock O’Connell (2010), UC Davis Agricultural Issues Center. 



Shafter (in Kern County), but progress has been slow and there is no guarantee 

that either facility would receive competitive rail service to and from the ports. 

The marine highway service proposed in California’s Green Highway initiative 

will, if successful, move containers by barge between Stockton/Sacramento and 

Oakland. If any of these initiatives succeed they would create an opportunity for 

transloading in the Valley, reduce truck trips to and from Oakland, but increase 

truck trips to and from Stockton and Sacramento. 

Time-definite and Expected Shipments 

While true “just in time” logistics chains are rare (and mostly confined to the 

automotive industry), there has been a broader trend toward “time-definite” 

logistics. This trend involves tight pickup and delivery time windows; ongoing 

information exchange between shipper, carrier, and consignee; and a high degree 

of transparency through web-enabled or “cloud” information systems. Key 

manifestations of this trend include: 

 

 

 

Increased emphasis on predictability, and reduced tolerance for incidents 

and delay; 

Smaller, more frequent shipments; and 

Increased use of medium-duty (Class 4-5) trucks. 

A related trend is the increased use of expedited truckload (TL) and less than 

truckload (LTL) services as an alternative to either conventional trucking or air 

cargo. Expedited services of various types have shifted the competitive frontier 

between highway and air modes. FedEx, UPS, and other integrated carriers have 

increased their use of expedited trucking, especially in smaller markets that have 

previously been served by feeder aircraft. Air cargo currently plays a valuable 

role in supporting business and industry in the San Joaquin Valley. According to 

the latest Commodity Flow Survey conducted by the U.S. Department of 

Transportation, goods shipped by air in California had an average value of 

$53,000 per ton. 31 Just by itself, California’s airborne agricultural export trade – 

much of it originating in the San Joaquin Valley – was valued at $800 million in 

2010. Yet only a small portion of the air cargo the region generates travels 

through an airport in the San Joaquin Valley. 

In the case of agricultural exports, regional businesses chiefly rely on airports 

outside of the San Joaquin Valley to provide air transport links to both 

international and domestic markets. This is largely due to the fact that there are 

more planes—both all-cargo and passenger—available at airports such as LAX 

and SFO, with greater frequency and larger number of destinations. Competition 

among carriers on key routes not only gives exports more flexibility, it also adds 

31 U.S. Department of Transportation, Bureau of Transportation Statistics, 2007 Commodity Flow 

Survey. There are no statistics on the value of goods shipped from the San Joaquin Valley. 



up to cheaper rates. Attracting airlines to an airport in the SJV will likely involve 

more than assuring them of a steady volume of outbound cargo, which in itself is 

difficult for a region that is predominantly agricultural and therefore has 

seasonal variations in output. Since airlines do not like to fly empty, a carrier 

would generally be reluctant to schedule service into a SJV airport unless it could 

earn revenue from both inbound and outbound cargo. 

Currently, limited air cargo service means that most goods are trucked to and 

from the air cargo facilities outside of the SJV. Therefore, SJV access to air cargo 

service will depend heavily on the quality and reliability of regional trucking for 

the foreseeable future. In the long term, population growth and economic 

diversification may result in higher levels of air cargo service at some SJV 

airports. This issue will be further explored in subsequent tasks. 

Inventory Growth: Wholesale and retail inventories have been growing since 

their low point during the recession supported by increased but still fragile consumer 

confidence. Inventories are expected to grow further, but not to their prerecession 

peak. Within the SJV, distribution centers will probably not expand as 

fast as they have in the past. One major DC operator contacted during the study 

noted that they were emphasizing faster inventory turnover through the same 

footprint. Fast, reliable transportation will thus be needed to substitute for 

higher inventory stocks. 

Overall Freight Trends: Figure 4.4 provides a nationwide freight industry forecast 

through 2021 developed by Global Insight for the American Trucking 

Associations. As the figures indicate, overall freight tonnage and revenue 

growth is expected to be relatively moderate, in line with the national economic 

outlook. The forecast differs by mode and industry segment, with the fastest 

growth expected in rail intermodal and air cargo. As the tonnage figures also 

indicate, however, these two segments are relatively small at present. 

The freight transportation mix in the SJV is influenced by the agricultural sector, 

and the region will experience somewhat different outcomes than the nation as a 

whole. The region’s growing population itself will dictate future freight transportation 

requirements, and other goods movement needs are driven by the 

major population centers to the north and south. As the SJV becomes home to 

more distribution, service, and light manufacturing industries the region’s goods 

movement profile will increasingly resemble the national picture. Mode-bymode 

trends are highlighted in the sections that follow. 



Table 4.4 

Summary of Primary Freight Forecast by Mode 

Revenue – 

Billions of Dollars 

Share by Mode 

(Percentage) 

Average Annual 

Growth Rate (Percentage) 

2009 2015 2021 2009 2015 1021 2010-2015 2016-2021 2010-2021 

Total 13,018.2 15,061.2 16,269.1 100.0 100.0 100.0 2.6 1.3 2.0 

Truck 8,848.8 10,515.2 11,498.0 68.0 69.8 70.7 3.1 1.6 2.3 

Rail Carload 1,773.2 1,957.0 2,032.9 13.6 13.0 12.5 1.7 0.6 1.2 

Rail Intermodal 138.6 192.9 253.1 1.1 1.3 1.6 6.5 5.2 5.9 

Air 11.7 14.8 18.4 0.1 0.1 0.1 4.4 4.1 4.2 

Water 828.7 928.8 964.4 6.4 6.2 5.9 2.0 0.6 1.3 

Pipeline 1,417.2 1,452.5 1,502.3 10.9 9.6 9.2 0.4 0.6 0.5 

Revenue – 

Billions of Dollars 

Share by Mode 

(Percentage) 

Average Annual 

Growth Rate (Percentage) 

2009 2015 2021 2009 2015 2021 2010-2015 2016-2021 2010-2021 

Total 664.7 903.0 1,123.3 100.0 100.0 100.0 6.0 4.1 5.0 

Truck 544.4 748.1 932.9 81.9 82.8 83.1 6.2 4.1 5.2 

Rail Carload 39.9 51.4 60.5 6.0 5.7 5.4 4.8 2.9 3.9 

Rail Intermodal 9.4 15.6 23.6 1.4 1.7 2.1 11.1 8.6 9.8 

Air 20.1 28.5 40.1 3.0 3.2 3.6 7.0 6.8 6.9 

Water 9.9 13.4 15.0 1.5 1.5 1.3 5.8 2.0 3.9 

Pipeline 41.0 46.0 51.1 6.2 5.1 4.6 2.0 1.9 1.9 

Source: U.S. Freight Transportation Forecast to 2021, American Trucking Associations. 

General versus Bulk Freight Growth: While much local trucking activity 

involves bulk freight – cement, animal feed, aggregates, gasoline – overall 

growth is expected to be greater in the general freight (merchandise) sector. 

Construction, agriculture, and manufacturing, which drive the bulk freight market, 

are not expected to grow as fast as consumer and service sectors or the 

wholesale and retail trade sectors which generate “general” freight moved in the 

familiar closed van trailers and straight trucks. 

Less-Than-Truckload (LTL) Sector Growth and Competition: The LTL sector 

(generally composed of shipments not large enough to fill a full semitrailer) has 

benefited from the growth of on-line retailing, and is expected to do so in the 

future. Expedited LTL services such as ABF TimeKeeper and Con-Way NOW 

have gained share from air cargo carriers, and from air cargo divisions within 

integrated companies such as FedEx and UPS. Here too, trucking is becoming 

more rather than less important to the economic health of the region. 



TL and LTL Consolidation: The long-term trend toward consolidation of market 

shares in the TL and LTL sectors has been accelerated as weaker firms folded 

in the recession. The larger TL and LTL firms have gained share and will likely 

continue to gain share, although more slowly in the post recovery period. The 

industries’ consolidation may mean that the SJV will likely see fewer, but larger 

LTL terminals and service networks, requiring a larger land area for development 

and improved roadway access 

Reduced Private Fleet Market Share: By the American Trucking Association’s 

(ATA) estimates, the tonnage share of private fleet operators fell from 

52.4 percent in 1990 to 48.2 percent by 2006. The private fleet share rose to an 

estimated 49.8 percent in 2009 as the owners/customers of “blended” for-hire/ 

private fleets focused the available business in the private portions. In the long 

run, however, private fleets are expected to lose share as their owners outsource 

non-core functions and the efficiency gains of for-hire carriers intensifies competition. 

The SJV will likely see a reduction of fleets and fleet locations controlled 

by manufacturers and distributors, and growth in fleets and fleet locations of 

commercial carriers. Private fleets tend to have a greater proportion of empty 

miles, so the net efficiency of SJV trucking is likely to increase somewhat and the 

truck vehicle miles travelled (VMT) associated with economic growth will grow 

slightly slower. 

Capital Expenditure Capital expenditures and investments dropped off dramatically 

during the recession and, like inventory, are gradually returning. 

Industrial and commercial construction, in particular, remains in a slump and is 

not expected to regain momentum until 2015-2016. Investment in machinery and 

other categories directly related to short-term production is expected to be more 

vigorous. From the SJV perspective, this trend – in conjunction with reductions 

in inventory – slower growth in DC construction and expansion, and more 

intensive use of existing facilities. 

Rail Intermodal Growth: Rail intermodal traffic volumes include both domestic 

and international shipments, and both fell off in the recession. Prior to the recession, 

however, there was a noticeable trend toward greater use of rail intermodal 

line-hauls by TL and LTL motor carriers. This trend accelerated after a new 

master contract with Teamster drivers that gave unionized motor carriers greater 

flexibility to use intermodal services. Use of intermodal is expected to grow 

again once traffic levels recover and motor carriers are faced with driver shortages 

and escalating fuel costs. The SJV has domestic rail intermodal service 

available at the BNSF Stockton (Mariposa) and Fresno terminals, and at the 

Union Pacific Lathrop terminal. The southern portions of the SJV also are served 

from the BNSF San Bernardino and Los Angeles intermodal terminals, and the 

Union Pacific Los Angles terminals. These terminals also provide connections to 

East and Gulf Coast ports for containerized imports and exports. Efficient and 

safe access to and from those terminals will be a key factor in obtaining the 

advantages of rail intermodal service for the region. 



Domestic Containerization: The growth in domestic use of rail intermodal service 

has been accompanied by growth in the use of domestic containers rather 

than moving highway trailers on the rails. While international containers are 

20-feet, 40-feet, and sometimes 45-feet long, domestic containers are almost 

always 53-feet long. A tractor pulling a 53 foot domestic container on chassis is 

an STAA truck, and a “California Legal” truck (discussed further in the next 

section). Such trucks are restricted to STAA routes, “CA Legal” routes, and 

Advisory routes. Accommodating this trend will therefore likely require 

extension of the STAA/CA Legal route system. 

Slow Rail Carload Growth: Akin to the growth differential between general 

freight and bulk freight in the trucking sector, bulk rail carload movements are 

expected to grow more slowly than rail intermodal volumes. In recent years 

one exception has been the growth of corn and corn-ethanol shipments for 

gasoline additives. In California, however, a conversion from domestic corn 

ethanol to imported sugarcane ethanol is on the horizon due to larger 

regulations affecting the life-cycle carbon footprint of ethanol produced from 

corn. For the SJV region, there may be potential rail carload growth in 

connection with rail/truck transloading. 

Rail-Truck Transloading: Transloading freight between rail cars and trucks 

provides an opportunity for customers to combine the long-haul economics of 

rail carload service with the local movement flexibility of trucking. Transloading 

may be provided at a wide variety of facilities, ranging from large-scale, dedicated 

facilities such as Valley Transload on the Modesto and Empire Traction 

(right) and extensive transload facilities at the Port of Stockton to the developing 

initiative with Union Pacific at Shafter and smaller sites on shortline railroads. 

Rail-truck transloading, which involves the transfer of freight itself between 

railcars and trucks, is different from intermodal terminal or inland port 

operations, in which containers or trailers carrying freight are transferred. While 

transloading allows the use of carload rail service for the long haul, it still 

requires truck service and access for local pickup and delivery. Reductions in 

truck VMT will mostly be on Interstates and other long-haul routes between the 

SJV region and other regions. Within the region itself, it is best regarded as an 

efficiency option rather than as a means of taking trucks off local highways, 

arterials, and rural roads. 

Transloading is an emerging option for shippers and receivers that lack direct 

carload rail service at existing or potential sites, or customers that might lose 

direct carload access due to line abandonment or service reductions. 

Transloading also is an option for Class I railroads and shortlines to extend their 

service and businesses reach without adding track miles. Transloading has been 

growing in the SJV, notably at Valley Transload in Modesto (Empire), at the Port 

of Stockton’s West Complex (Rough and Ready Island), and at Shafter. 

Agricultural chemicals and fertilizers, some crops, and building materials are 

particularly good candidates for transloading. 



Marine Highway Potential: While considerable effort has gone into Marine 

Highway studies and the California’s Green Trade Corridor project between 

Oakland, Stockton, and West Sacramento the recession has set back the process. 

With sharply reduced trade and excess trucking capacity it will be difficult for a 

barge or domestic vessel service to have a significant impact in California for the 

near future. The long-run potential of a marine highway service at the Port of 

Stockton is still a matter for speculation, as a strong commercial market has yet to 

emerge. The long-run regional freight flow impact would consist of up to 250 

truck trips each way diverted from the I-580 Altamont Pass corridor between 

Alameda and San Joaquin counties for each vessel sailing (one to two per week). 

There also would be increased truck traffic to and from the Ports of Stockton and 

West Sacramento. 

Slow Air Cargo Growth: The air cargo industry is facing multiple challenges, 

including rising costs and emerging competition. Air cargo has not been a 

growth industry in the State of California over the past decade, and there is little 

indication that air cargo volumes will soon rise to the level where a substantial 

realignment of current cargo operations at the State’s airports would be 

expected. Historically, air cargo volumes have been driven by economic expansion. 

32 Some incremental growth in air cargo operations can therefore be 

expected once the San Joaquin Valley economy recovers from the current recession. 

Moreover, a growing volume of airborne trade between the Far East and 

Latin America may provide an opportunity for a San Joaquin Valley airport to 

establish itself as a key link between markets that formerly did little business 

with each other. And it is certainly not out of the realm of possibility that major 

earthquakes or rising tide levels could incapacitate airports along the California 

coast. Still, regional leaders should be under no illusions that investments in 

developing air cargo capacities at one or more airports in the San Joaquin Valley 

will automatically pay handsome returns, especially in the near-term. 

32 According to the Federal Aviation Administration, “Historically, air cargo activity tracks with 

GDP.” See the FAA’s Aerospace Forecast Fiscal Years 2011-2031, page 41. 



5.0 Circulation 

The San Joaquin Valley is home to a range of transportation facilities for moving 

goods ranging from Interstate and state highways, Class I and shortline railroad 

facilities, intermodal centers, inland ports and waterways, air cargo facilities, and 

other infrastructure that supports the movement of goods. This section will 

highlight major freight generating areas, including clusters of manufacturing and 

industrial activity, large distribution centers, and other agriculture-related facilities 

that receive or generate large amounts of truck and rail traffic. As described 

above, population, economic, and income growth all drive increased freight 

demand and contribute to congestion on the San Joaquin Valley’s transportation 

system and challenges the existing regimes for maintaining good air quality and 

high quality of life. With limited resources to build new transportation capacity, 

it becomes especially important to select the most beneficial infrastructure 

projects to fund and to effectively manage the existing multimodal transportation 

infrastructure to accommodate freight growth. This section will describe the 

freight transportation facilities that support the regional economy in the San 

Joaquin Valley. 

The following map summarizes the major freight facilities in the San Joaquin 

Valley, including highways and truck routes, rail corridors, and major air terminals. 

Each of these features will be discussed in the sections following: 



Figure 5.1 

Freight Transportation Facilities in the San Joaquin Valley 

Overview 

Source: National Transportation Atlas Database, Caltrans. 

5.1 SAN JOAQUIN VALLEY BASIC INFRASTRUCTURE 

PROFILE 

Regional Highway System 

The highway and local road system is the primary freight infrastructure for the 

region, and trucking is the dominant freight mode. This dominance is particularly 

important for local and regional freight movements, which are essentially 

all trucked. Freight trucks use the entire highway and road system, including 

residential areas accessed for garbage collection, construction, and occasional 

freight deliveries. There are over 31,420 roadway miles in the San Joaquin Valley 

consisting of Interstate highways such as I-5 and I-580, state highways, including 

SR 99 and SR 58, and major county roadways. Due in large parts to the Valley’s 

north-south orientation, the key regional highways are the north-south corridors, 

I-5, and SR 99. Major east-west corridors include I-580 connecting the SJV to the 

San Francisco Bay Area, SR 152 near Merced and traversing the Valley, and 



SR 41, connecting SR 99 in Fresno with I-5 through Kings and Fresno Counties. 

Major agricultural production facilities and residential developments are often 

located adjacent to major or minor state highways with access for residents and 

businesses provided by smaller two-lane highways and a network of County 

roads and local streets. Farm-to-market and other frontage roads provide access 

to agricultural fields. Access challenges sometimes result from the interchanges 

between local facilities and the larger highway network. 

There are over 2,700 miles of truck routes in the 8-County study region. Of these 

routes, over 80 percent are STAA National Truck Routes, with the remaining 

routes state-designated. The primary north-south freight corridors, I-5, and 

SR 99 in the County account for nearly 500 miles of designated truck routes 

(about 25 percent of the total). East-west corridors and other smaller facilities 

account for the remainder. 33 Many of the trucks on the road, however, are providing 

services rather than moving freight, including the majority of light-duty 

and medium-duty trucks. For the most part, infrastructure investments that help 

freight trucks also will help service trucks. Figure 5.2 displays the truck route 

network in the study area, along with the location of California Department of 

Transportation designated truck stops in the State, along with the number of 

available truck parking spaces at those stops (including rest areas). The total 

space total for these truck stops is over 3,600 truck parking spaces. 

33 California Truck Route List, http://www.dot.ca.gov/hq/traffops/trucks/truckmap/. 



Figure 5.2 

Truck Routes in the SJV and Location of Truck Stops 

Source: Caltrans. 

Note: Truck stop list includes highway rest areas with truck parking. 

I-5 and SR 99 

Interstate 5 and State Highway 99 are the major north-south truck routes. I-5 and 

SR 99 join at Lebec, south of Bakersfield, as shown in the figure below. Due to the 

north-south orientation of the Valley and its geographic location between the major 

producing and consuming markets of the San Francisco Bay Area and Southern 

California, SR 99 and I-5 account for a large volume of truck traffic, with as much as 

30 percent of the traffic on some SJV segments of I-5 consisting of trucks. 34 

In general, I-5 is the favored route for truck movements through the study area 

(e.g., between the Bay Area and Southern California). I-5 is preferred for longer 

trips due to faster speeds, less congestion, and greater safety and has the benefit 

34 San Joaquin Valley Goods Movement Action Plan. 



of being entirely closed-access. However, I-5 has had some issues with pavement 

deterioration due to the heavy truck use. 35 

Due to connections with major population centers along SR 99 many goods 

movement-oriented industries (such as food processing and warehousing and 

distribution) are located proximate to the highway. SR 99 is therefore the preferred 

route, and the only practical route, for truck service within the San Joaquin 

Valley. SR 99 is an older, more congested route with portions of legacy construction. 

Large portions of Highway 99 are limited access, with Caltrans planning 

initiatives to further convert Highway 99 into a full limited-access freeway. 

For much of its length, SR 99 is two lanes in each direction, which can cause congestion 

in the busier urban areas and where the three-lane sections narrow. 

There also are a number of older interchanges, and on-and off-ramp locations 

that are difficult for large modern trucks to negotiate. Outbound trucks from SJV 

origins to other regions typically either follow SR 99 north or south or use one of 

several state highways to access I-5. Inbound trucks either use SR 99 from the 

north or south or use one of the east-west routes to access the population centers 

from I-5. 

Key San Joaquin Valley East-West Corridors 

Other major highway routes include State Highways 33, 41, 43, 58, 65, 132, 152, 

198 and Interstate 580, many of which travel east-west for at least a portion of the 

route. This section highlights the major east-west corridors and their utility for 

use by trucks in the region. 

I-580/I-205/SR 120 

The major east-west route to the Bay Area is I-580/I-205/SR 120, which also 

creates the I-580/I-205/I-5 “triangle” around Tracy. SR 120 links I-205 with 

SR 99, bypassing the City of Manteca. This region, along with the adjacent 

Lathrop and Stockton areas, have developed into major industrial and business 

park locations. Figure 5.3 shows the locations of potential importers and exporters 

identified in the 2006 SJCOG CIRIS study. These highways also have 

become a major commuter route linking population growth centers in San 

Joaquin County with the San Francisco Bay Area. Due to limited east-west connections 

to the Bay Area, this is a highly congested route with much competition 

between trucks and autos for the use of available capacity during peak-periods. 

35 Responses from 2009 Kern COG study mentioned pavement conditions on southbound I-5 in 

Kern County as a problem, and that the northbound pavement was deteriorating. 



Figure 5.3 

Potential Importers and Exporters 

2006 

Source: San Joaquin Partnership. 

SR 132 and SR 140 

From north to south, the next major east-west route is SR 132 between I-5 and 

Modesto. This route is a narrow, two-lane rural road and is considered dangerous 

by many truckers. One trucking company interviewed for the Central 

Stanislaus goods movement study prohibited its drivers from using SR 132. 

Further south, SR 140 connects I-5 and SR 99 through Gustine and Merced. It is a 

less-direct east-west route and not heavily used by truckers. 

SR 152 

SR 152 is one of only two continuous east-west routes connecting SR 99 and 

U.S. 101, and also provides an alternative to the congested I-580/I-238/I-880 

east-west corridor. Currently, there are highway planning initiatives in place to 

enhance SR 152 as a trade corridor contacting key activity centers in the 

region. 36 The highway through Los Banos is a major east-west connector 

between SR 99, I-5, and the coastal areas around Gilroy and Watsonville. 

Between I-5 and Los Banos and Los Banos and SR 99, SR 152 is a four-lane, 

divided highway (although not a limited-access freeway). Through Los Banos, 

SR 152 becomes west Pacheco Boulevard through the center of town, 

significantly slowing through-truck traffic. 

SR 152 also is a major east-west corridor for interregional traffic (commuter, 

commercial, and recreational) connecting the San Francisco Bay Area, North 

36 SR 152 Corridor Study. 



Central Coast and Central Valley regions. The closest east-west routes for trucks 

are I-580 (60 miles to the north), SR 198 (60 miles to the south), and SR 46 (120 

miles to the south). 37 SR 152 is a vital artery for the State’s agricultural heartland 

of the San Joaquin Valley and Monterey Peninsula, and a major international 

trade highway corridor and nearly 50 percent of the State’s $34 billion in 

agricultural production takes place in counties along and adjacent to the SR 152 

corridor. 

SR 198 

Another key east-west connection serving the SJV between SR 99 and I-5 (with a 

connection to U.S. 101), SR 198 serves Kings and Tulare County in the southcentral 

portion of the SJV. It is a two-lane rural highway for much of its western 

length, traversing the foothills east of U.S. 101 and intersecting I-5 in Coalinga. 

West of I-5, SR 198 is not an STAA designated route, accessible to California 

Legal Trucks only. It is a designated truck route between I-5 and SR 99. Between 

Lemoore in Kings County to just east of Visalia in Tulare County, the roadway 

alternates between two-lane highway, expressway, and freeway. 38 A construction 

project is currently underway to widen the two-lane, 10-mile section of SR 198 

between SR 43 and SR 99 in Kings and Tulare County into a four-lane 

expressway. 39 Despite limited alternatives to traveling east-west in the southern 

SJV, trucks are sometimes encouraged to use other east-west routes with greater 

capacity. 

SR 46/SR 65/SR 119/SR 223/SR 166 

In a recent study in Kern County, five different state routes were evaluated 

together. 40 The studied portion of SR 65 runs north-south (SR 65 north of its 

junction with SR 99 to the Kern County line). The second group of highways all 

are aligned east-west. Figure 5.4 shows the locations of these highway facilities: 

 

SR 46 from its easterly junction with SR 99 to the Kern County line just east of 

Cholame; 

SR 119 from its easterly junction with SR 99 to its junction with SR 22; 

 

 

SR 223 from its easterly junction with SR 58 to its junction with I-5; and 

SR 166 from its easterly junction with SR 99 to the Kern County line just west 

of its junction with SR 33. 

37 SR 152 Corridor Study. 

38 SR 198 Corridor System Management Plan, Caltrans District 6. 

39 Caltrans District 6. 

40 These highways were studied as a group in 2010. 



Figure 5.4 

Kern County Study Routes 

Source: SR 223, 166, 119, 46 & 65 Truck Origins and Destinations Study, Kern COG, January 2011. 

On SR 65, unlike the other four highways, the truck traffic tends to be local, 

serving local customers between Bakersfield (and points beyond) and Porterville 

(but not points beyond). Any through traffic to/from points north of Porterville 

would tend to use parallel route SR 99. The other four routes have a number of 

points in common: 

 

 

 

They carry through truck traffic, with relatively few on-route customers; 

They can be used as discretionary alternatives to SR 58, which is the primary 

east-west route through Bakersfield; and 

The local customers are primarily agricultural in nature. 

SR 46 and SR 166 also are used to access the coastal region west of Kern County. 

In particular, SR 46 serves Monterey and San Luis Obispo Counties and SR 166 

serves portions of San Luis Obispo and Santa Barbara Counties. A larger proportion 

of the trucks on these routes are refrigerated trucks due to the nature of 

the commodities that originate in these counties. Many of the refrigerated trucks 



operate either empty or with dry freight westbound. Many of these trucks will 

operate at night and on the weekends due to the distances involved. 

SR 58 

SR 58 is located at the Southern end of the San Joaquin Valley and carries truck 

trips between I-5 and SR 99, through Bakersfield and Tehachapi in Kern County, 

and I-15 in San Bernardino County. 41 SR 58 is used as a primary route for shipment 

to the eastern areas of California such as San Bernardino and Riverside 

Counties as well as outside the State via I-15 and I-10, and as an alternative to 

both I-5 and I-10/I-210 to avoid storms on the Grapevine – and traffic congestion 

in Los Angeles County, respectively. 

Highway Freight Movements and Truck Trips 

Highway freight movements originate at shipper locations and terminate at 

receiver locations. Shippers are the only true freight movement generators, 

although a number of other loaded or empty truck movements (“trip legs”) may 

be required to accomplish the complete freight movement, including: 

 

 

 

Empty trips to position the truck for loading; 

Trips to and from intermediate handling points; 

Trips for truck fueling, cleaning, and servicing; 

Trips to and from the driver’s home or company domicile; and 

Trips to return merchandise or shipping equipment (such as pallets). 

Locations where truck movements begin or end can thus include: 

 

 

Shipping and receiving points; 

Carrier terminals or other freight handling points; 

Truck fueling, cleaning, and servicing locations; and 

Rest areas, restaurants, driver homes, etc. 

Trucks also have a “home base” that may differ from the location of the freight 

movement generator which can include: a for-hire carrier terminal or parking 

lot, shipping location (e.g., distribution center) for a private fleet, or a driver’s 

home (for an owner-operator or contract driver). 

The study team obtained and analyzed the most recent version of the CHP MISTER 

(Management Information System of Terminal Evaluation Records) database to 

locate truck fleet operating points in the study area. The MISTER database compiles 

information on truck “terminals” where vehicles are reportedly available for 

periodic CHP inspections. The MISTER data includes both for-hire truckers and 

41 SR 58 Origin and Destination Truck Study, SANBAG, Kern Council of Governments, and 

Caltrans. 



private fleet operators. In most cases the trucks in question are based at the reported 

location, but the information is not 100 percent accurate or current due to the highly 

fluid nature of the trucking business. The age of the data vary depending on when 

each operator last reported the terminal information. 

The study team filtered the data to locate operators of at least one truck (as 

opposed to buses, trailers, etc.) with a map-able address in the SJV study area zip 

codes. There were 4,764 such operators in the database. The list was divided 

into small fleets of less than five trucks (4,163 fleets, or 85 percent of the 

locations) and large fleets of five or more trucks (601 locations, or 13 percent of 

the total). While five trucks may not seem like a large fleet, as the numbers 

indicate the great majority of operators have fewer than five. As Figures 5.5 and 

5.6 indicate, truck fleets are clustered in and around the population centers 

where drivers live and most customers are located. 

Figure 5.5 

MISTER Truck Fleet Locations, (5 or more trucks) 

2011 

Source: California Highway Patrol (CHP). 



Figure 5.6 

MISTER Truck Fleet Locations, (less than 5 trucks) 

2011 

Source: California Highway Patrol (CHP). 

Freight handling within the trucking sector can include sorting, consolidation, 

deconsolidation, and transfer or transloading. Only a small percentage of 

“trucking facilities” actually handle the freight itself. The archetypical “trucking 

terminals” that split long-haul truckloads for local delivery or combine local 

pickups into long-haul truckloads are the limited province of LTL and parcel 

carriers. The vast majority of truckload common carriers do not have freight 

handling facilities. Private fleet freight handling is accomplished at the production 

and distribution facilities they serve, not at separate truck terminals. 

Less-Than-Truckload (LTL) Terminals 

LTL sorting and consolidation operations resemble warehouse operations in 

their trip generation and distribution patterns. The primary function of an LTL 

terminal is to consolidate outbound loads from local pickups and deconsolidate 

inbound loads for local delivery. Figure 5.7 shows the location of major LTL terminals 

in the SJV. This map may not be complete, as carriers change terminals 

often and older terminals can be occupied by new carriers. The map does show, 

however, that LTL terminals are typically located to both serve a local population 

center and be accessible from multiple highways. 



Figure 5.7 

Study Area LTL Terminals 

Source: Tioga Group. 

Truck Stops 

Designated truck stops in the study area, shown in Figure 5.8 are different from 

truck terminals, and are a commercially provided part of the highway infrastructure 

necessary for efficient and safe long-haul trucking. Truck stops tend to cluster 

at major freeway interchanges. The real need for a truck stop comes from 

national and regional over-the-road (OTR) truckload carriers and owneroperators 

based out of the region. Some truckload carriers without nearby 

terminal facilities use truck stops instead, basing their tractor and trailer fleets 

there. Local and regional trucking firms with their own terminals typically have 

little use for a nearby truck stop. 



Figure 5.8 

Study Area Truck Stop Locations 

Source: Tioga Group. 

Major Rail Corridors 

Overview 

Rail freight operations and facilities in the study area are dominated by Union 

Pacific (UP) and Burlington Northern Santa Fe (BNSF), which run through the 

length of the region. The following map displays the rail network in the San 

Joaquin Valley, location of rail yards, and the rail owners. The region also has 

several short-line operations. Rail movements are almost exclusively outbound 

from the region; inbound to the region, or through the region. Distances within 

the region are ordinarily too short for cost-effective rail service. 



Figure 5.9 

Rail Network in the San Joaquin Valley 

Source: National Transportation Atlas Database. 

BNSF and UP 

The active BNSF and UP routes run roughly parallel through the population 

centers on the east side of the San Joaquin Valley. The former Southern Pacific 

“West Valley Line” is no longer a complete through route. The northern portion 

of the line from Tracy to Los Banos is leased and operated by the California 

Northern. The southern portion between Oxalis and Firebaugh is operated by 

the San Joaquin Valley Railroad. The BNSF and UP lines meet at Bakersfield 

(Kern Junction). Through the Tehachapi Mountains between Bakersfield and 

Mojave BNSF and UP share a single route. The line is owned by UP and BNSF 

pays for usage (“trackage rights”). The lines split at Mojave. A large number of 

trains pass through the region without serving local customers. 

 

Union Pacific trains pass through the area on trips between the Bay Area and 

points south and east of Bakersfield. An example would be Oakland to 

Houston. 



 

 

 

UP trains between Oregon/Washington and points south and east of 

Bakersfield pass through the region. Examples would be Los Angeles/ 

Seattle or Portland/Dallas. 

BNSF trains between Northern California and points south and east of 

Bakersfield pass through the region. Examples include Richmond/Chicago 

or Oakland/Kansas City. 

Rail traffic between Northern and Southern California also passes through 

the region, although there is relatively little intrastate traffic due to the short 

(by rail standards) distances. The UP Coast Route is rarely used for through 

movements. 

Short Lines 

Regional shortlines are a mix of small railroads that have endured as separate 

operations (some for more than a century) and operators of former branch lines 

of the major railroads. As the major railroads began aggressively shedding 

lightly used branch lines in the 1980s, existing short lines used the opportunity to 

extend their operations and new operators entered the business. Now, as 

indicted below, the study area shortlines serve a large number of carload rail 

customers, typically providing frequent, customized switching service. Major rail 

customers and the shortlines that serve them are often codependent – one could 

not survive without the other. 

Shortline rail service in the SJV is for the most part stable, with the operators 

serving established customers and encouraging new industrial development 

along their lines. Carriers serving multiple customers in large business parks 

typically enjoy greater long-term stability since the loss of any one customer can 

be offset by gains from others. Some carriers, notably MET at Valley Transload 

and Sierra Northern at the former McClellan AFB, have also developed rail-truck 

transload facilities that provide service to customers without direct rail access. 

Where shortline service has been reduced or is endangered in the SJV is typically 

for one or more of the following reasons: 

 

 

 

 

The lines purchased or leased from the former Class I operator may have a 

mix of productive and non-productive trackage that is being rationalized 

over time. 

A specific line may have a large infrastructure repair or maintenance cost 

(e.g. an obsolete or damaged bridge) that cannot be funded from the profits 

on existing or expected shipments on that line. 

The loss of one or more major customers on a given line may jeopardize the 

economics of service to other customers on that line. 

The shortline operator may not have access to the capital required to 

maintain lines or continue operations during the recession or another type of 

business downturn. 



The decision to maintain or abandon a given line is complex, depending on such 

factors as the reliability of the future revenue stream, the profitability of service 

at competitive rates, and the salvage and/or real estate value of the line. The 

following describes the infrastructure and basic operations of each of the 

shortline railroads in the SJV. 

Modesto & Empire Traction Co. (MET) 

The MET is a short-line railroad serving the Beard Industrial district in Southern 

Modesto, and owned by the Beard family. The MET connects with BNSF at 

Empire on the east end, and with UP near downtown Modesto. 

Figure 5.10 Beard Industrial District 

Source: MET web site. 

The MET has about 28 miles of track within the Beard Industrial District and 

serves numerous industries in the area, including shippers of lumber, wine, food 

products, and other commodities. Not all are active rail carload shippers and 

receivers at any given time, and plant owners and tenants do tend to change over 

a period of years. The MET also serves Valley Transload, with 7,000 feet of track 

capable of handling unit trains and a wide range of commodities. As noted in 

the general discussion of rail options, such transload facilities allow customers to 

combine the line-haul efficiency of carload with the pickup and delivery flexibility 

of trucks. Valley Transload is on the former site of “Valley Lift”, a rail intermodal 

facility operated by the MET with BNSF line-haul service. MET 

operations recently replaced its conventional diesel switchers with low-emissions 



“geneset” locomotives. This step significantly reduces emissions from what can 

otherwise be relatively “dirty” switching operations. 

Stockton Terminal & Eastern (STE) 

The STE has operated in the Stockton area since 1908 providing carload service 

over about 25 miles of trackage. STE customers include distributors of steel 

products, paper, agricultural chemicals, etc. Most traffic tends to be inbound, 

with local distribution handled by truck. STE connects with UP, BNSF, and CCT 

(map). Like MET, STE has rail-truck transfer facilities. Like the MET, STE’s parent, 

the Stockton Terminal Company, is owned by the Beard Family. 

Central California Traction Company (CCT) 

The CCT was formerly owned in equal shares by Southern Pacific, Western 

Pacific, and Santa Fe. SP and WP were merged into UP, and Santa Fe into BNSF, 

so CCT is now owned two-thirds by UP and one-third by BNSF. CCT has active 

connections with both of its owners, and day-to-day operations are independent 

under CCT management. CCT has two operations: the Central Valley Branch 

between Stockton and Lodi, and the Stockton Belt Railway at the Port of 

Stockton. 



Figure 5.11 Central California Traction Company Map 

Source: California Central Traction web site. 



The Central Valley Branch is the remaining portion of CCT’s original route. CCT 

serves agricultural and manufacturing customers in Lodi (including wine 

shippers) and has transload facilities in both cities. STE provides service five 

days per week on the branch. There are several available industrial sites on 

the line. 

CCTs operation of the Stockton Belt Railway property at the Port of Stockton 

accounts for most of the company’s activity and freight volume. CCT provides 

all rail services with the original Port property (the East Complex) and on Rough 

and Ready Island (the West Complex). The former Navy installation on Rough 

and Ready Island had an extensive trackage network servicing numerous 

warehouses and facilities. Most of the track was of light construction by modern 

standards and in need of upgrading and repair when the facility was sold to the 

Port. CCT has been gradually upgrading and replacing trackage as freight 

movements require and opportunities emerge. Between the two Port complexes 

the CCT serves about 35 customers and six transload facilities. 

Sierra Northern Railway (SNR) 

Sierra Northern (SNR) was formed by merging the Sierra Railroad and the Yolo 

Shortline Railroad in 2003. SNR currently operates on two lines relevant to this 

study: 

 

 

A 55-mile line from a BNSF connection at Riverbank to Sonora (including the 

Riverbank Industrial Complex); and 

A 48-mile line between a UP interchange at Oakdale and Sonora. 

The Riverbank Industrial Complex has a number of public warehouse operations 

and available development sites. North of the study area SNR operates a 17-mile 

line between BNSF and UP connections at West Sacramento (including the Port 

of West Sacramento) and Woodland. SNR also operates a line near the coast 

between Watsonville and Davenport, and provides switching at the Concord 

Naval Weapons Station. These operations do not affect the study area. 

San Joaquin Valley Railroad (SJVR) 

The SJVR is the largest of the regional shortline with about 417 miles of track in 

operation (Figure 5.12). The lines are primarily former Southern Pacific routes, 

including portions of the former West Valley Line. SJVR is part of the Rail 

America group of short lines. It connects with UP at Fresno, Goshen, and 

Bakersfield, and with BNSF at Fresno and Bakersfield as well. Major commodities 

handled include petroleum products, building materials, and agricultural 

products. The SJVR lines west of Bakersfield were part of the former Sunset 

Railway, built to serve the oil fields. It was jointly owned by SP and Santa Fe, 

who alternated operating responsibility for five-year periods. 



Figure 5.12 San Joaquin Valley Railroad Map 

Source: San Joaquin Valley Railroad web site. 

California Northern Railroad 

The CNR operates three unconnected lines, including the northern portion of the 

former Southern Pacific West Valley Line between Tracy (UP connection) and 

Los Banos, which is within the study area. CNR provides the rail connection to 

the proposed intermodal facility at Crows Landing. 

West Isle Line 

The West Isle Line is a former Santa Fe branch owned by Crop Production 

Services (CPS) and used to serve the company’s facilities at Alpaugh. The rail 

operation is used primarily to being in bulk materials for fertilizer production. 

Rail Services 

UP, BNSF, and the shortline operators all provide traditional carload service to 

individual shippers or receivers in the study area. These customers typically 

have loading/unloading tracks (“spurs”) serving their facilities. They may ship 

or receive as little as one carload at a time, but many are larger operations that 

would ship or receive multiple carloads (up to a full train) at once. Rail carload 

customers would typically include: 



 

 

 

 

 

Grain elevators and feed mills; 

Large lumberyards and building material distributors; 

Produce packers and canneries; 

Cement plants; and 

Gas, oil, and propane distributors. 

The railroads also serve “transload centers” that shift freight between rail cars 

and trucks. Typical operations include inbound rail loads of building materials 

or minerals that are either transferred directly to trucks for local delivery or 

stockpiled on-site and transferred later. These operations combine the long-haul 

advantages of rail with the pickup and delivery flexibility of trucks. 

Rail carload and transload services typically involve bulk commodities or those 

that can be loaded/unloaded with forklifts. The outlook for rail carload service 

in the study area is closely tied to the outlook for production and consumption of 

bulk freight. 

 

 

Agricultural production and consumption of agricultural chemicals, feeds, 

and fertilizers; and 

Construction and consumption of cement aggregates, lumber, steel, stone, etc. 

The third type of rail service is intermodal – movement of international containers, 

domestic containers, and domestic trailers between major terminals. Trucks 

bring the loads to origin terminals and deliver them from destination terminals. 

Within the study region BNSF has active intermodal terminals at Mariposa 

(south of Stockton) and Fresno. UP has an active intermodal terminal at Lathrop 

(actually in French Camp). The UP facility at Lathrop is the subject of a major 

expansion plan. Shortline railroads do not provide intermodal service. Rail 

intermodal service is more likely to involve consumer goods or industrial supplies 

such as appliances, food products, garments, household goods, beverages, 

or plumbing supplies. International containers make up a large part of the rail 

intermodal total. Rail intermodal traffic levels are more closely linked to consumption 

of consumer goods and overall trade and economic trends. Modal 

shifts from truck to rail have the potential to reduce demand for highways, but 

that potential is limited. 

 

 

 

A shift from long-haul trucking to rail intermodal typically reduces the need 

for Interstate truck moves but will still require local and regional trucking for 

pick-up and delivery. 

Conversion of truck moves to rail transload moves likewise reduce the need 

for long-haul trucking but still need local or regional truck service. 

Conversion of truck moves to pure rail carload service eliminates the need 

for any trucking. This option, however, is usually only available to highvolume 

shippers with direct rail service. 



Within the study region the railroads also have freight classification yards, 

engine facilities, and maintenance facilities of various types. These facilities, 

however, serve internal railroad functions and do not serve customers directly. 

Port of Stockton 

The Port of Stockton is the SJV’s only deepwater port (draft ranging from 35 feet 

to 40 feet) and is located on the San Joaquin River at the north end of the SJV in 

the City of Stockton. The Port area is served by major highways, SR 99 and I-5 

which converge in the City. Other regional access is provided by SR 4. The port 

offers several major services, including warehousing and terminal operations 

and provides bulk, and break-bulk cargo handling services. Both the Class I 

railroads, UP and BNSF, also serve the Port. 

Major Air Terminals 

The air cargo system in the San Joaquin Valley (SJV) is served by seven airports 

within the 8-county SJV currently offering commercial passenger airline service. 

They are: Fresno-Yosemite International Airport in Fresno County; Inyokern 

Airport in Kern County; Bakersfield’s Meadows Field in Kern County; Merced 

Regional Airport in Merced County; Modesto Municipal Airport in Stanislaus 

County; Stockton Metropolitan Airport in San Joaquin County, and Visalia 

Municipal Airport in Tulare County. 42 

With the exception of Stockton Metropolitan, all are also being served at present 

by all-cargo aircraft of various capacities, predominantly operating under the 

auspices of either FedEx or UPS. While they are important economic assets to 

the communities they serve, the airports of the San Joaquin Valley today play a 

relatively small role in the overall context of air transport in California. 

Although comprehensive data on the volume of air cargo handled at each of the 

SJV airports are not available, 43 partial data do suggest that these airports currently 

handle no more than half of one percent of the total cargo tonnage handled 

by California’s airports. There is interest in the region to expand air cargo 

service to promote the growth in the industries highlighted in Section 3.0. 

However, in seeking to attract one or more foreign air cargo carriers to provide 

regular service, SJV airports face direct and formidable competition from several 

other California airports. 

The next phases of the project will explore improvements on the goods movement 

infrastructure throughout the San Joaquin Valley in order to best accommodate 

existing and future freight demand. 

42 Source material collected by Jock O’Connell for the project. 

43 While statistics on air cargo tonnage at the region’s largest airport, Fresno-Yosemite 

International, are available back to 2007, the region’s second largest airport, Bakersfield’s 

Meadows Field, maintains no records on the amount of air cargo tonnage it handles. Cargo 

service at Stockton Metropolitan has been highly erratic over the past decade, ranging from 

33,607 tons in 2003 to 2.3 tons in 2010.

San Joaquin Valley Interregional Goods Movement Plan - Task I ...

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