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presented to
presented by
Cambridge Systematics, Inc.
Prepared for:
Mississippi Development Authority
November 14, 2012
Presented by:
Cambridge Systematics
Neel-Schaffer, inc.
McCallum Sweeney Consulting
SOL Engineering
How Can Freight Corridors and Gateways Work for My Region?
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presented to
NADO Rural Transportation Conference
presented byCambridge Systematics, Inc.
April 25, 2013
Paula Dowell, PhD
Today’s Talking Points
Why freight corridors and why now?
What can freight do for me?
Where are the opportunities?
How do we position?
Freight and Logistics Based Development Strategy
Supply chain is unit of competition
Not just warehousing and distribution
Benefits all industries
Transportation is necessary but not sufficient element
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Intense Competition
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Gateway Competition in the U.S.
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NATIONAL GATEWAY AND CORRIDOR STUDY
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Project Objective
Identify and document multimodal gateway and corridor needs, trends
and opportunities to ensure U.S. and North American competitiveness for consideration in the development of future national infrastructure plans.
Private Sector Input
Major Trends Impacting Future Needs
•Changes in sourcing patterns and distribution networks
•Energy availability and costs
Logistics
•Socio-demographic changes
•Global trade and geopolitical climate
Economic
•Regulations – trucking and security
•Energy policyPolicy
•Passenger/freight interaction
•Increase use of intermodal
•Mode specific constraints impact whole system
Infrastructure
Private Sector Input
Action oriented plan
Quantification of performance
gains
Nationally organized,
locally executed
Focus on fewer, nationally significant projects
True multimodal approach
Trade-off identification
and mitigation
Key Considerations for Developing a National Plan
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Contingent Implications
Scenario Implications
Robust Implications
Acid testing current strategy
No Gainer
No Brainer
No Regret
New strategy development
process
Detailed Review
RiskManagement
Sensorsin the
Ground
Needs Under Alternative Futures
Alternative Futures Comparisons
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5
10
15
20
25
30
35
1813
26
15
2320
17 15 138 9
17
3
7
7
2
2
25
89
9
911
4
16
712
3
14
5 5 5 6 813
10 8 10
More Important Less Important Same Importance
Cu
mu
lativ
e S
core
s
Alternative Futures Comparisons
No brainers
• Gulf Coast ports
• North-south corridors
• Southeastern border crossings
No regrets
• Southeastern ports and east-west corridors
• Northwestern border crossings
• Southwestern border crossings
Contingent
• Northern east-west corridors
• Northeastern Coast ports and land borders
• West Coast ports
What Can Freight Do For Me?
It is a major employment industry
It has significant growth potential
It is a key input for all industries
It impacts cost of living
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Growth Potential
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Quality Jobs
Median Salaries for Various Transportation & Warehousing Occupations» Dispatcher - $45,000» Distribution manager $80,000» Driver (entry to mid level) - $40,000 –
$60,000» Distribution center forklift operator-
$31,000» Fleet manager - $77,000
Intermediate Manufacturing - $35,000
Source: www.Salary.com
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Transportation Matters to All Industries
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Logistics and Cargo Based Development Opportunities
Port centric integrated logistics centers (ILCs)
Non-port centric ILCs
Industrial site development
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Integrated Logistics Centers (ILCs)
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Inland ports• Port centric
Integrated logistics centers• Non-port centric• Truck/rail transfers
Industrial development• Capitalize on freight transport assets• Combine market access with other attributes
ILCs Driven by Population and Intermodal Terminals
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What Drives an Inland Port/Logistics Park?
What Drives an Inland Port/Logistics Park?
Proximity to population centers – 50 million in one truck day (500 miles)
GREAT highway infrastructure – North/south and east/west connectivity
Railroads want to go there
Shippers already have distribution centers and/or market
Available land with highway and Class 1 rail access
Proximity to population centers – 50 million in one truck day (500 miles)
GREAT highway infrastructure – North/south and east/west connectivity
Railroads want to go there
Shippers already have distribution centers and/or market
Available land with highway and Class 1 rail access
Market Access for Industrial Development
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Provides opportunities for rural areas
Close proximity to urban population centers but avoids» Congestion» High land costs» Significant community opposition
Key is multimodal transportation access
Positioning for Logistics Based Development
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Approach Examples
Strategic Transportation Systems GoOHIOFlorida’s Strategic Intermodal SystemGA Statewide Freight and Logistics StudyMS Trade and Transportation System
Trade Corridor Initiatives I-95 Corridor CoalitionWest Coast Corridor CoalitionNational I-10 Freight CorridorCANAMEX
Rail Partnerships Heartland CorridorCrescent CorridorNational GatewayCREATE
Regional Approaches Connecting AppalachiaCentral Florida Regional Goods Mobility PlanSouthern MS Regional Freight Study
Inland Rail Development Opportunities
Three Scenarios for Southern MS
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“Current Regional Industries”
“Current Regional Industries Plus Relocation”
“Current Regional Industries Plus New Regional
Industries”
Based on growth in demand from existing target industry clusters
Based on growth in demand from existing target industry clusters, with some of these industries relocating to the site in order to expand and/or take advantage of improved rail access
Major industrial development opportunity based on: a) proximity to three ports (Gulfport, New Orleans, Mobile); b) ability to serve an area from Tennessee to Texas from a single location; c) access to four Class I railroads, hinterland markets and gateways; and d) other location advantages.
No industrial development
Medium-scale industrial development
Large-scale industrial development
25 + acres rail 25+ acres railUp to 500 acres industrial
25+ acres rail500 to 1000 acres industrial
No Port-driven DCs Port-driven DC potential TBD
Port-Driven DC potential TBD
Screening Factors for Identifying Potential Sites for
Development
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Evaluation Factor Considerations
Parcel Assemblage Difficulty Number of parcelsOwnership
Development Complexity Degree of “shovel ready”Risks identified & mitigated
Site Size 25+ acres for rail, up to 1000+ acres for industrial
Intermodal Leveraging Capability Recruitment of freight intensive industries
Economic Development Recruitment Potential
Large rail served mega-siteProximity to highways, utilities, workforce
Order of Magnitude Cost Land, preparations, infrastructure, opportunity costs
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Considerations
Increased freight traffic through the region, in the short term, will most likely be by truck
The economic viability of an intermodal facility is significantly enhanced by co-locating with other opportunities
The development of sites that can certainly accomplish one (Recruitment) and possibly the other (Intermodal) is a logical approach
Site Screening Framework
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Intermodal Rail Development
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Site Evaluation Framework
Inte
rmod
al R
ail O
ppor
tuni
ties
Business Attraction/Expansion Opportunities
1
1
30
30
D
C
B
A
F
E
Take Away
Freight is coming back---economy is recovering
Logistics is essential element of all business models across all industries
Providing efficient access to markets is key
Seamless multimodal transportation system becoming more critical competitive element
Freight flows will change over $50…highly competitive
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