An efficient multimodal transportation system is critical to the economic vitality of large metropolitan areas, smaller communities, and rural areas. While transportation issues in urban areas receive a good deal of attention, the needs of rural areas are also important. This report summarizes the results of a research project examining the rural transportation system in Texas. The demographic and economic characteristics of the state's rural population are highlighted. The report also presents a multimodal approach to enhance mobility and economic development in rural parts of Texas. Researchers examine the status of highways, roadways, public transit services, intercity buses, airports, and railroads serving rural portions of the state and discuss future needs.

Over the past two decades, changes in transportation demand of agriculture and rural industry have interacted with the deregulation of the transportation sector. This has resulted in the abandonment both of the regulation of truck rates and competition, and of many rural rail links that were deemed inefficient. Agricultural industrialization and the move towards applying market principles to guide production decisions have had a profound impact on rural transportation infrastructure. Together with strategic rail decisions to terminate inefficient services, these changes have resulted in larger and heavier truck hauling agricultural products over longer distances on pavements and bridges that were not constructed to withstand these loads. Clearly there is a need to better understand the strategic challenges and issues as well as the critical role that transportation plays in promoting competitive agriculture and a vibrant rural economy. The objectives of this project were to (a) explore the rural agriculture/industry-transportation relationship, (b) provide information on major rural stakeholder, industry, and trucking views, (c) highlight the factors that result in greater demands on rural roads from the perspective of the Texas Department of Transportation, (d) present a methodology to prioritize rural transportation needs in transportation planning decisions, and (e) list a number of policy options to address rural transportation concerns.

Rural transit districts and intercity bus carriers are an important link within Texas' multimodal transportation system. Without such service providers, many rural residents that are transit dependent would be forced to either relocate or find other means of transportation. Furthermore, with continued growth of business to consumer e-commerce demand for package shipping services and rural areas face a particular challenge in finding efficient "last mile" delivery of goods (from freight drop to final destination). Rural transit districts operate demand response door-to-door service throughout Texas, providing critical connections to goods and services. The network of Texas rural transit districts may effectively bridge the last mile gap in package shipping from the freight drop point to the final destination by providing last mile package delivery services in cooperation with freight companies. Last mile package delivery service may present an opportunity for rural transit operators to diversify revenue sources and improve overall cost effectiveness while maintaining existing door-to-door service. This project researched the potential to address current gaps in existing package delivery service with the network of intercity bus and rural transit districts in Texas. Documentation includes best practices, challenges, policy implications, and the potential for revenue generation, and a guidebook. The guidebook is designed to inform rural transit operators of how to implement a package delivery service and includes documentation of lessons learned from pilot package delivery services implemented as part of the research project.