Managing traffic congestion around Atlanta’s ‘gateway to the world’

For 20 years and counting, Atlanta’s Hartsfield-Jackson International Airport (ATL) has worn the badge of honor of busiest airport in the world. About 275,000 passengers traverse the airport each day, and nearly 650,000 metric tons of cargo and mail passed through the facility in 2016.

“It is a major gateway to the world — one can reach pretty much any destination within one or two flights from Hartsfield-Jackson International,” Jon Slangerup, Chairman and CEO of American Global Logistics, told Supply Chain Dive.

With the airport’s sprawling network of flights and connections, it’s no surprise major companies such as Coca-Cola, Home Depot and UPS have set up shop nearby in the city of Atlanta, offering them close proximity to the airport to receive supplies and ship their goods.

With growth comes growing pains, and one of the biggest issues plaguing the city’s streets is traffic congestion — but the city has a plan.

“Technology can be a great enabler of easing congestion in high volume areas,” Slangerup said. Through satellites, sensors and automation, the greater Atlanta area is implementing technology solutions to ensure people and goods flow freely — both in the air and on the ground.

Technology to manage hundreds of flights per hour

Despite thousands of flights arriving and departing every day at Atlanta’s international airport, air traffic suffers from very little congestion. In fact, in addition to being the busiest airport in the world, ATL has also been ranked the most efficient airport in the world since the early 2000s.

“Air Traffic Control is a very well-planned, highly-structured system,” a spokesperson for the Federal Aviation Administration (FAA) told Supply Chain Dive.

Atlanta’s international airport has five parallel runways, allowing several flights to take off and land simultaneously. In good weather conditions, as many as 132 flights can land each hour, the FAA said, with that figure dropping to 98 flights per hour in low visibility conditions.

The efficiency has been the result of numerous sophisticated technologies used to manage air traffic.

“Time-Based Flow Management (TBFM) is an important tool that air traffic controllers use very effectively to manage traffic at ATL,” the FAA spokesperson said. The tool monitors planes’ locations in the air and determines the most efficient schedule to get the aircraft to its destination.

In addition, the FAA has deployed satellite and automation technology at ATL for greater accuracy and more efficient routing, through tools such as Performance Based Navigation (PBN) and En Route Automation Modernization (ERAM).

“In the past, pilots flew over one ground-based radio transmitter and then flew over the next one in a zigzag pattern,” the FAA said. “PBN enables aircraft to fly much more directly from departure to destination by using satellite signals.”

The ‘vicious cycle’ of traffic congestion

Shipments by air may arrive quickly and efficiently into Atlanta’s airport, but rarely is the airport the final destination for products, Slangerup said. “Currently, the predominant method of getting goods from seaports and airports to other cities within a given radius is trucking.”

The same efficiency found in Atlanta’s airport operations unfortunately has yet to be found on the city’s roadways. “Delayed goods are a real problem, regardless of the mode moving them,” he said.

While Los Angeles takes the cake for worst traffic congestion in the world, Atlanta is not far behind, ranking 8th in the world and 4th in the U.S. The average commuter in the region spends 70 hours per year in traffic — nearly three days.

The worst U.S. cities for traffic congestion
Rank City Hours/Year in Congestion
1 Los Angeles 102
2 New York City 91
3 San Francisco 79
4 Atlanta 70
5 Miami 64

INRIX Global Traffic Scorecard

Of the 100 worst bottlenecks in the U.S. ranked by the American Transportation Research Institute (ATRI), seven are located in and around Atlanta. The top bottleneck is Atlanta’s intersection of I-85 and I-285, commonly referred to as the Spaghetti Junction, where the average speed is just 37 mph — and less than 25 mph during peak times.

“Trucks carrying containers, whether they’re 20- or 40-feet, tend to slow the flow of traffic. They’re big, less than speedy and obtrusive, and their impact on automobiles cannot be overstated,” Slangerup said. “Of course, the more congestion in any given area, the slower the movement of the goods being transported. It becomes a bit of a vicious cycle.”

Roadway congestion, through a combination of both trucks and cars, puts significant stress on infrastructure. The most recent infrastructure report card for Georgia, published by the American Society of Civil Engineers in 2014, gave the state a grade of “C” for infrastructure, and “C-” for its roads.

Smart corridors: the congestion solution?

In highly trafficked areas, technology “can provide the kind of visibility that helps logistics and supply chain professionals be more proactive about sending more goods into an already saturated environment,” Slangerup said.

Earlier this year, the Georgia Department of Transportation announced plans to build a smart commercial vehicle-only corridor along I-75 in hopes of alleviating congestion. The $2 billion project is scheduled to begin construction in 2026 and could take 10 years to build.

While details aren’t finalized, the project could involve fiber optic cables and sensors to inform drivers on traffic conditions and congestion. Technology involved in the smart corridor would likely also support autonomous technology, such as truck platooning, which digitally tethers two trucks so that they travel very closely to each other, thus reducing drag and fuel usage.


“[Trucks are] big, less than speedy and obtrusive, and their impact on automobiles cannot be overstated.”

Jon Slangerup

Chairman and CEO, American Global Logistics

The corridor is some years away, but Atlanta is already testing a smart corridor on a roadway known as North Avenue — a collaboration between Georgia Tech and the city of Atlanta and launched last year. The avenue connects several important destinations in Atlanta, including headquarters of Coca-Cola and AT&T and the Georgia Department of Transportation.

Along the corridor are hundreds of internet of things (IoT) sensors and high definition cameras connected to an app with video analytics. “All of the traffic signals are like neighbors. Each neighbor is telling the other, ‘here’s what’s coming your way,'” Keary Lord, project director of National ITS and Traffic Engineering Services at Atkins said in a video. “They can constantly repeat algorithms to provide better mobility.”

Among the goals are reducing congestion on the road, moving vehicles more efficiently and improving safety. The project serves as a pilot, with more smart corridors possibly rolling out in the future.

The Atlanta Regional Commission expects 56% growth in freight volume by 2040, and smart city solutions will be critical to handle the more trucks on the road. Slangerup said a combination of technologies, such as artificial intelligence, GPS and predictive modeling will help to provide greater insight into congestion.

“I don’t know that we, as an industry, have yet developed the technology that can truly mitigate congestion,” he said.

 

Port, border groups call for infrastructure, NAFTA to preserve ‘tremendous flow of commerce’

WASHINGTON — Port association and border group leaders testified on Capitol Hill Wednesday, calling for investments in ports to facilitate the free flow of goods across borders and within the U.S.

“Delays at our ports result in an overall loss of commerce,” Sen. John Cornyn, R-Texas, chair of the Senate Subcommittee on International Trade, Customs and Global Competitiveness, said during the hearing. “We must fund the ports that make trade possible in the first place.”

Panelists outlined three major resources needed at ports across the nation: Personnel, technology and infrastructure. The need for those resources is universal, at land and seaports, on riverways, the U.S.-Mexico border and the coasts.

Infrastructure in particular has come into the spotlight, with Donald Trump promising trillions of dollars in infrastructure spending while on the campaign trail, although no plan has passed since he assumed office.

As e-commerce and shipments grow, ports are increasingly desperate for the funding needed to modernize and update their infrastructure. At the hearing, Kurt Nagle, president and CEO of the American Association of Port Authorities (AAPA), said the seaport industry will need $66 billion over the next 10 years.

A breakdown of projected infrastructure needs for the port industry.

In a report issued in June, AAPA projected a need for a $20 billioninvestment in multimodal and rail access projects in the next decade, due to growing populations and increased shipping volumes.

While the FAST Act, signed into law under by President Obama, authorizes billions for freight spending, it limits spending on multimodal projects, Nagle said at the hearing.

Port have made it clear that investment in multimodal projects are a top priority. The association advocated for raising the cap on multimodal funding under the FAST Act.

​”The waterways always end somewhere,” Mary Ann Bucci, executive director of the Port of Pittsburgh Commission, told the Senate subcommittee. Bucci said in Pittsburgh, each waterway and port offers connections to rail, truck or both, allowing goods to reach their final destination. “We’re just one of three pieces.”

For ports of entry on land borders with Mexico, infrastructure is severely outdated, with ports averaging 40 years old. As a result, the layout and construction of the ports aren’t suited for the enormous volumes of trucks passing through the border each day.

While infrastructure is critically important, it’s just one piece of the puzzle. Land border ports of entry require sound trade relations and customs processes to keep goods moving.

Relations between the U.S. and Mexico have soured recently as a result of numerous political moves, from talks of building a wall to tariffs imposed on steel and aluminum imports.

Negotiators hit pause on NAFTA negotiations as participating nations go through elections, but Mexico now hopes to ink a deal by the end of August.

Panelists called for swift modernization and approval of NAFTA. “Our three nations’ supply chains are deeply integrated, which has created a highly efficient, just-in-time manufacturing environment,” Sergio Contreras, vice chairman of the Border Trade Alliance, said in his testimony.

Without a free trade agreement, Contreras, along with Laredo, Texas, Mayor Pete Saenz, said shipments between the two nations could be at risk. In Laredo, Saenz said about 16,000 trucks cross the border each day.

“There’s a tremendous flow of commerce,” he said. “It begins in Mexico, and we need to coordinate the flow of goods into Mexico. This is why its important to maintain good relationships with the Mexican counterparts.”

It’s unknown how Mexico’s newly elected president, Andrés Manuel López Obrador, will handle NAFTA negotiations.

“Now [the Trump administration] knows who’s going to be in charge and hopefully provides better condition to consummate that quickly,” Cornyn said. “Legitimate trade is the lifeblood of that region — and of our country’s economy.”

Does Tesla’s ‘big ask’ for cash from suppliers risk disrupting the supply chain?

Dive Brief:

  • Tesla sent a memo to some of its suppliers, asking to return cash to the automaker, The Wall Street Journal reported. Tesla did not respond to Supply Chain Dive’s request to confirm the memo.
  • The automaker told the Journal it is looking for price reductions from some of its suppliers to improve competitive advantage.
  • Since the beginning of the year, “we’ve seen a huge run up” in the amount of money due to suppliers, Bill Danner, president of CreditRiskMonitor, a financial risk analysis and news service, told Supply Chain Dive. The figure, however, isn’t unexpected as Tesla ramps up production of the Model 3.

Dive Insight:

At the end of the first quarter of 2018, Elon Musk assured Tesla shareholders he’s feeling “quite confident” the auto company will have positive cash flow in the third and fourth quarters of the year. If Musk is able to deliver, the result will be a sharp turnaround from the past several quarters of millions in negative cash flow.

Credit: Shefali Kapadia / Supply Chain Dive, data from CreditRiskMonitor

On its path to turn the numbers around, Tesla has boosted production, restructured its workforce and now it is going to its suppliers to negotiate prices and payment terms. “If they can get better payment terms, that won’t make it more profitable, but it will at least cause them to have better cash flow, because they don’t have to pay the suppliers quite as quickly,” Danner said.

But Danner doesn’t think most suppliers have the financial capacity to move the needle far enough to bring Tesla’s cash flow into the black.

“The suppliers are probably feeling a little stressed out at the moment,” he said. As the automaker boosted production of its vehicles, it likely requested more parts produced quickly by its suppliers, along with engineering and design changes. “And now he wants money back? Those are big, big asks.”

As Tesla demands more of its suppliers, it needs to consider the long-term impact, Marcell Vollmer, chief digital officer at SAP Ariba, told Supply Chain Dive in an email. “It’s easy to ruin trust but takes ages to rebuild.”

While Tesla has reportedly asked for cash back, Volkswagen went to its supplier Prevent years ago with the same goal to boost profits. It asked Prevent to lower prices, but the move backfired. “Prevent was a single supplier and stopped delivering seat covers. Volkswagen had to stop production. The supply chain got disrupted and … Volkswagen had to delay delivering thousands of cars to consumers,” Vollmer said.

Delayed car deliveries would mean delays in funds coming in — and could translate to late supplier payments.

Since the beginning of the year, Danner said Tesla’s delinquency rate of supplier payments has stayed about the same. “They’re not paying everybody on time, but they’re paying a lot of their vendors on time,” he said.

If the delinquency rate increases, it could sound alarm bells for vendors. Tesla is “some distance from bankruptcy,” Danner said, but given its high debt and financial structure “if the economy stumbles, this company is pretty vulnerable to economic shock.”

Yoga enters the workforce

(Click here to view published article.)

Employers Embracing Health, Productivity Benefits

Yoga article

Of the Pentagon’s many secrets, one of the most surprising may be that yoga classes are offered at this military fortress on a regular basis. Jess Pierno, formerly a Department of Defense (DoD) employee, was one of the instructors during her time at the Pentagon, teaching a weekly lunchtime meditation and yoga class.

“These people who are dealing with huge stressful issues take an hour for themselves, hit the reset button on their brains, and then go back out and deal with everything. They loved it,” said Pierno, who last year left DoD and opened Yoga Heights in the Petworth area of D.C.

Many businesses in the D.C. area are taking advantage of yoga’s restorative powers, as they take a vested interest in how wellness classes can improve employee health, morale, productivity and relations.

Supporting Good Health

The physical benefits of yoga are numerous. Among them, the American Osteopathic Association says, are improvements to circulatory health, metabolism, sleep and endurance.

Yoga can also help to reverse some of the side effects of the modern workplace. “Staring at a computer all day, I think we naturally tend to hunch over, rounding [our] spine, instead of sitting up straight,” said Nanci Dodson, D.C./Maryland area manager of CorePower Yoga,  a company with yoga studios nationwide. She said yoga practitioners become more aware of their posture, making a conscious effort to sit up straight throughout the workday.

Seeing the potential benefits of yoga for office workers, many companies are hiring yoga studios to lead classes at the office, free of charge for employees. Angela Proudfoot, human resources director at the Municipal Securities Rulemaking Board in Alexandria, Va., established a corporate yoga program there.  The hour and 15 minute classes meet weekly at her office after working hours.

Proudfoot herself first tried yoga four years ago, after determining that physical therapy was not improving a serious foot injury sustained while skydiving. Her injury will never heal entirely, but she said practicing yoga has drastically improved her balance, flexibility and mobility. She is even able to skydive and run long distances again.

Aqeel Yaseen also found the benefits of yoga to be life-changing. When he first tried it, he was suffering from depression and weighed more than 300 pounds. Over the course of five years, yoga  “helped me change my habits, and I lost close to 200 pounds,” he said.

Bringing Yoga to Employees

Following this transformative experience, Yaseen got his yoga teacher certification and now teaches 18 classes each week. He teaches studio classes at Yoga District, and corporate classes at several area law firms and the U.S. Bureau of Labor Statistics.

“More and more companies are showing a dedication to their employees’ health and wellness, which is incredible,” said Catherine Zack, wellness director and senior manager at Flow Yoga Center in D.C.’s Logan Circle neighborhood.

Corporate yoga programs are also in place at the International Monetary Fund, the Kennedy Center, the Department of Justice and many more offices, Pierno said.

The Department of Youth Rehabilitation Services recently started a corporate yoga program through Yoga Heights. “The director came the first day and took class with everybody,” Pierno said. “He really led by example. He took off his shoes, rolled out his mat and participated with everybody.”

Building Bonds & Focus

The example of that director is reflective of how yoga can lower barriers between executives and staff. “Sometimes a manager and someone reporting to them are practicing right next to each other, and it changes the dynamic of their relationship,” Yaseen said.

Proudfoot agreed that the classes at her office feel like a “team-building exercise.” She added, “The people who come to that class on a regular basis really get to know each other on a completely different level.”

She also said that her colleagues reported better concentration and productivity at work. Studies conducted at the universities of Illinois, California and Pennsylvania all found cognitive functioning improved after just one yoga class, helping to boost focus and memory.

“A lot of times, we spend our time dwelling on something,” Zack said. “What yoga and meditation really helps us do is to stay focused inside the moment.”

Proudfoot can relate. “I would go into stressful situations, and I would just breathe and remember some of the mantras that my teachers would recite at the end of classes,” she said. “That for me was a complete 180.”

A meditative state doesn’t come easily to everyone, though. Yaseen said every corporate class he has taught contains its fair share of skeptics.  Yoga classes typically end with a 10-minute “savasana” (corpse pose) in which students lie on their backs with eyes closed in a state of deep relaxation.

“It’s very difficult for them to let go for 10 minutes,” Yaseen said, “because they think maybe they’re wasting their time.”

Getting Yoga on the Schedule

Time is of essence in the corporate world, and many executives complain they don’t have enough to spare for daily yoga practice. However, given the benefits, it could be worthwhile to fit yoga in, even if it’s in small increments.

Zack said lunchtime classes bring out the executives at Flow Yoga Center. She added that the studio is working actively to expand its corporate programs even further.

As an alternative to office classes, some companies offer corporate yoga memberships. These partnerships provide employees with discounted rates on classes at a yoga studio. At CorePower, a number of executives use their corporate memberships to attend classes before and after work, Dodson said.

When going to a studio class isn’t feasible, home practice is always an option. Yoga videos for every level of practice are easy to find online. “Just start by taking five minutes every morning,” Pierno advised. “You’ll notice the changes, and you’ll notice an increase in energy. And before you know it, you’ll want to practice longer.”