Transportation (formerly Global Agility): –
The U.S. transportation and logistics (T&L) ecosystem – composed of multiple sectors through a complex system of freight forwarding, storage, and distribution – is an essential pillar of the economy and contributes to U.S. economic prosperity and thus U.S. national security. This paper provides a brief overview of U.S. Deep Sea Shipping, Inland Waterways, Ports and Harbors, Railways, Trucking, Air Freight, and Warehousing sectors of the T&L ecosystem. It also considers how digital infrastructure bridges and connects each of these elements. By analyzing T&L’s role in supporting the U.S. and global economy, national security, and its contribution to mobilization efforts, the paper identifies significant issues and concerns within the T&L ecosystem. It concludes with policy recommendations to strengthen the U.S. position.
An aging U.S. infrastructure, a shrinking skilled workforce, environmental issues, and the lack of global digitization standards across the T&L ecosystem impact U.S. economic and national security interests. Through four drivers – Government Enablement, Infrastructure, Innovation, and Human Capital – this paper utilizes a line of effort (LOE) comparative analysis of the U.S. and its main competitors, China, and Russia, in the context of a 21st century Great Power Competition (GPC). Based on a five-step research process consisting of Engage, Assess, Analyze, Deliberate, and Recommend, the authors developed policy recommendations for the U.S. Government (USG) to improve U.S. competitive advantage over its most powerful adversaries.
While the U.S. still maintains a position of advantage in overall transportation, logistics, and mobilization, it is no longer the undisputed leader across all industry sectors. China’s rise over the past two decades, coupled with the U.S.’ inattention toward its T&L ecosystem, puts the U.S.' long-held advantage in jeopardy. China’s rapid progression through focused planning and aggressive execution of its 2049 National Rejuvenation Strategy sets it on a trajectory to surpass the U.S. and gain a competitive advantage in the T&L industry.
The authors of this paper recommend USG policies that address the following overarching priorities:
- Multimodal physical and digital infrastructure that relieves congestion from overburdened nodes;
- Strengthen the enabling environment for a secure, interoperable T&L ecosystem to advance efficiency, visibility, and security within the supply chain;
- A long-term plan and regulatory framework that supports an environmentally friendly and sustainable T&L ecosystem;
- A national training and education initiative that maximizes available talent.
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